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International Journal for Management Science and Technology (IJMST)

April|2013 ISSN 2320-8848 (Online) ISSN 2321-0362 (Print)

Management Science and Technology Journal

April|2013

www.ijmst.com

vol.1 Issue 2

International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2

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International Journal for Management science and technology (IJMST) is a peer-reviewed and published monthly with a "double-blind" procedure involving at least two reviewers, is committed to publishing scholarly empirical and theoretical research articles that have a high impact on the management and education field as a whole. The aim is to provide an online publishing platform for the academia, management researchers, and management students to publish their original works. Interdisciplinary research and cross-functional issues are particularly favored, as well as cross-cultural investigations. The Journal takes a broad view of business and management and encourages submissions from other disciplines if they contribute significantly to problems considered by managers and researchers. Qualitative methodologies and case-based studies are welcome.

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Persons Associated
Editorial Board
Mrs. Vaijayanti Mala (India) PhD (Cont.), D.ed, B.ed, M.Com, BCom

International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2

Reviewers
Ms. Mamta Yadav (India) PhD (Cont.), MBA, BCom Dr. Asiamah Yeboah (Ghana) PhD (Marketing), Professional Postgraduate Diploma in Marketing, MBA-Marketing, Bachelor of Education (Social Studies). Dr. Alexander Ayogyam (Ghana) PhD (Marketing), M.A Industrial Management, B.sc (Mathematics) Mr. W.M.R.B.Weerasooriya (Sri-Lanka) PhD (Reading) (Management and Science University MSU Malaysia), M.Com (University of Kelaniya), CCSD, MAAT, LICA, SP (RUSL), B.Sc (Business Management) Mr. MD. Zakir Hosen (Bangladesh) MBA & BBA (Accounting & Information Systems) Mr. Oteri Malack Omae (Kenya) PhD (cont.), MSc (Electrical Engineering), BSc (Electrical & Electronic Engineering) Dr. P.M.B. Jayathilake (Sri Lanka) PhD, M.Com, B.Sc (Business Management) Dr. Jaidev S. Tomar (India) PhD, Master of Industrial Relations & Personnel Management, M.A

Dr. IBEM, Eziyi Offia (Nigeria) PhD (Architecture), Full Registration by ARCON, MSC (Architecture), BSC (Architecture) Dr. K.K.Patra (India) FDPM-IIMA, PhD, PGDM, PGDFM, MBA, LL.B, M.Com. Muhammad Usman (Islamabad) Doctorate BA - Global Business and Leadership (Continued), M.Sc (Software Engineering), B.Sc (Computer Science) Dr. K.Sudarsan (India) PhD, M.Com, MBA, BA Sandeep Aggarwal (India) MBA (Marketing & Finance), BBA Muqeem Ahmed (India) PhD (Computer Science), MCA, BSc Dr. Muhammad Reza Iravani (Iran) Ph.D. (Social work), M.A. (Sociology), B.A. (Social Sciences) Dr. Muhammad Sabbir Rahman (Malaysia) Ph.D (Business Administration), MBA (Marketing & Human Resource Management), BBA (Marketing)

Advisory Body
Ms. Rachna Ingle (India) PhD (Microbiology) (Cont.), B.Ed, MSc (Microbiology), BSc (Microbiology) Er. Rajesh Ojha, Muscat (Oman) Bachlor Of Engineering (Computer Science)

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TABLE OF CONTENT

International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2

Capital Structure And Performance: Evidence From Listed Non-Financial Firms On Nairobi Securities Exchange (Nse) Kenya.
Maniagi Gerald Musiega, Mwalati Solomon Chitiavi, Dr. Ondiek B. Alala, Dr. Musiega Douglas, Ruto Rueben(Kenya)

Dissemination and Updation of Advanced Surgical Knowledge Using Video Conferencing Technology for Surgeons in INDIA - A Case Study of Ortho One Hospital Knee Programme.
M.S. Bexci, Dr. R. Subramani(INDIA)

20

Toward the Development of Management Information System for World Bank Funded: October 8th, 2005 Earth Quake Disability Project in Pakistan.
Moaz Masood Butt, Engr. Saad Masood Butt, Muhammad Usman (Pakistan)

38 46

Development and Analysis of Transportation model in Public Distribution System (PDS) for Warangal district.
S. Srinivas, N. Selvaraj, C.S.P.Rao

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International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2

Capital Structure and Performance: Evidence from Listed Non-Financial Firms on Nairobi Securities Exchange (Nse) Kenya
Maniagi Gerald Musiega (corresponding author) Masters Student Jomo Kenyatta University of Agriculture and Technology Kakamega campus Mwalati Solomon Chitiavi Masters Student Jomo Kenyatta University of Agriculture and Technology Kakamega campus Dr. Ondiek B. Alala Lecturer Accounting and Finance School of Human Resource and Development Jomo Kenyatta University of Agriculture and Technology Kakamega campus Dr. Musiega Douglas Director Jomo Kenyatta University of Agriculture and Technology Kakamega campus Ruto Rueben Lecturer Economics Jomo Kenyatta University of Agriculture and Technology Kitale Campus Kakamega campus

Abstract
This paper examine the relationship between a firms capital structure and performance among a sample of 30 companies listed on NSE whose data for 5yrs period 2007-2011 was available has been selected. The study uses six performance measures return on asset (ROA), return on Equity(ROE) , earning per share (EPS) dividend payout (DPO) Market price to book ratio of stock. As dependent variable and 3 capital structure measures short term debt to asset ratio, (STDA), long term debt to asset ratio (LTDA) and total debt to asset ratio (TDA) as independent variable. Size of the firm taken as natural logarithm of sales was considered as a moderating is variable. The result using model I indicate that there a significant correlation between TA of a firm and LTDA. LTDA had a positive correlation with ROE and EPS which is insignificant and a weak, while a negative correlation with ROA which is significant. PBR and DPO is negative and weak form. STDA had a positive correlation with ROE, DPO and PBR while negative with ROA and EPS. TDA had a negative relationship with ROA and EPS but with a positive correction with ROE, DPO and PBR. When using model II where size of a firm had been factored in, showed a strong positive correlation with the capital structure proxies which is significant. Size also has an impact by reversing the correlation of TDA with PBR and DPO from negative correlation increasing to positive while that of TDA with ROE from positive to negative. Thus firms on NSE appear to use less debt in there capital structure making many firms to pay less interest. Thus not increasing the risks the firm may be exposed to as debt tend to reduce performance. Pecking order hypothesis takes preference. Key words: capital structure, financial leverage, financial performance,

1.0. Introduction
Capital structure of a firm is the mix of debt, equity and other sources of finance that management of a firm uses to finance its activities. Different firms use different proportion or mix. A firm may adopt to use all equity or all debt. All equity is preferred by investors as
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International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2
they are not given conditions on the type of investment and usage of funds from providers. All debt is preferred by investors in a country where debt interest is tax deductible. Firms use a mix of debt and equity in various proportions in order to maximize the overall market value of the firm. Abor (2007) The Nairobi Securities Exchange formerly Nairobi Stock was constituted as a voluntary association of stock brokers under the society act. In 1990, a trading floor and secretariat was set up at the IPS building, before moving to the Nation Centre Nairobi in 1994. Over the past decade, the securities exchange has witnessed numerous changes, automating its trading in September 2006 and in 2007 making it possible for stockbrokers to trade remotely from their offices, doing away with the need for dealers to be physically present on the trading floor. Trading hours were also increased from two to six. Moving to Westlands in the environs of Nairobi symbolically marked the end of an era where the market was owned and run by stockbrokers. Daily nation (19th Jan. 2013) Nairobi Securities Exchange together with Uganda securities exchange and Dares-laam stock exchange memorandum of understanding lead to formation of east Africa securities exchange in 2006. Automated trading system ATS was introduced in 2006 making significant steps in capital markets in providing liquidity. Nairobi Securities Exchange aims at supporting trading clearing settlement of equities debt derivatives and other associated instruments. It is mandated to list companies on the securities exchange and enables investors to trade in securities of companies thus its charged with the health of Securities Exchange. Its regulated by Capital Markets Authority The Nairobi Securities Exchange companies are grouped in the following ten sectors Agricultural Sector, Automobiles & Accessories, Banking, Commercial & Services, Construction &Allied Sector, Energy & Petroleum, Insurance, Investment, Manufacturing & Allied and Telecommunication & Technology. In Kenya a developing country debt interest is tax deductible. The use of all debt to finance the operations of a firm will be advantage on one side as debt interest will be tax and on the other side the firm will be under the control of creditor in order to control their stake in the The use of debt capital increases agency cost between shareholders and debt holders. Many researchers still disagree on factors that significantly affect firms capital structure, hence determination of optimal capital structure is a difficult task that go beyond many theories though many researchers agree that the economic and institutional environment in which the firms operate significantly affect the capital structure of a firm. Owolabi and Inyang (2013) A appropriate capital structure should be profitable to the firm to enable it meet its obligations when due, and should be flexible so as to adjust to various challenges in economic conditions 1.1 Statement of the problem Capital structure is one of the contentious issues in finance. Various theories have been put forward by researchers to justify the existence of optimal capital structure of a firm. It is infact a puzzle. The theories have been developed to try to unearth the financing preferences managers may have in selecting a particular capital structure. Abor (2007). Different nations have different tax regulations and culture Suh (2008) hence the results of one nation may not apply to other nations as the interactions between various variables may not be the same.
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Hence Kenya a developing nation require such a research to enable managers and investors to undertake prudent investment decisions as researches in this area are only centered on developed nations 1.2 Research objectives i. To determine the effect of long term debt/ asset ratio on performance of non- financial firms on NSE. ii. To determine the relationship if any between short term debt/ asset ratio and performance of non- financial firms on NSE iii. To determine the effect of total debt/ asset ratio on performance of non- financial firms on NSE 1.3 Research questions i. Does long term debt/ Asset ratio has an effect on performance of non-financial firms listed on Nairobi Securities Exchange? ii. Is there any relationship between short term debt/ asset ratio and performance of nonfinancial firms listed on Nairobi Securities Exchange? iii. Do total debt/ Asset ratio have an effect on performance of non-financial firms on Nairobi Securities Exchange?

2.0 Literature Review


This chapter highlight the common capital structure theories which include Modigliani and Miller theorem proposition I irrelevant theory, MM proposition II trade off theory ,pecking order theory, and the market timing theory. The chapter also reviews relevant literature. 2.1 Capital Structure Theories Irrelevant Theory The theory was put forward by Modigliani and Miller 1958. It is based on the assumptions. No transactions cost, no taxes, no bankruptcy cost, equity in borrowing cost for investors, equity in access to information and no effect of debt on earnings before interest and tax. The theory indicates that in a perfect market, it does not matter the capital structure mix used by the firm the value of the firm remain constant. If a firm uses cheaper debt then this increases the risk of the firm consequently the stock holders will demand higher dividend to compensate them for the high risk in their investments MM theorized that market value of a firm is determined its ability to earn and the risk of its underlying assets. Thus the weighted average cost of capital should remain constant. MM argued that the value of a firm is not affected by capital structure but by the earning ability of the assets. The assumptions made do not hold in the real world hence other researchers have come up with various theories to fill the gap in real life situation. Abor (2007) The trade-off theory The trade-off theory of leverage assumes that there are benefits to leverage within capital structure used until an optimal capital structure is attained. The theory recognizes that (tax benefit) debt interest is tax deductible. This reduces the tax liability thus increasing tax shield. A high proportion of debt in a company makes it very risky for investors to invest in it. This make to demand investors a high premium on stock or high dividend. The theory assumes that a firm has an optimum capital structure based on trade-off between costs and benefits of using debt. This theory does not explain the conservative nature of firms when using debt
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finance, why leverage is consistence in most countries yet they have divergent taxation systems. Popescu (2009) Firms optimal debt ratio is determined by a trade-off between the bankruptcy cost and tax advantage of borrowing and it is achieved at the point when the marginal present value of the tax on additional debt is equal to the increase in the present value of financial distress costs. Owalobi and Anyang (2013) Pecking order theory This theory explains why internal finance is more popular than external finance and why debt is considered the best option for firms. Debt finance is considered attractive, cheap and more profitable as it is considered flexible. Pecking theory is based on information asymmetry. If managers have more information than other parties then information costs rises. Thus firms will prefer issuing shares when they are overvalued or last resort. Managers will use pecking order by first using internally generated funds. If more funds is required then go for cheap debt(capital with fixed interest) before equity ( capital with variable interest rate) in financing the firms activities. Myers and Majluf 1984 as sighted in Popescu (2009) Market timing theory This was fronted by Baker and Wurgler (2002) article relating to capital structure to past market to book ratio. According to this theory firms prefer equity when they perceive that its relative cost is low otherwise debt finance would be appropriate. Firms time there equity isseus , they issue new stock when the stock price is perceived to be overvalued and buy back own shares when they are undervalued. Free cash flow theory In this theory managers are forced to pay excess cash to investors as dividend to equity holders and interest to debt holders. High debt ratio discipline managers and prohibits them not to invest in projects with negative NPVs making the firm profitable. Jense 1976 argue that increasing leverage instills discipline in managers as they will be cautious not to make the firm insolvent. Owadabi and Anyang (2013) 2.2 Review of Relevant literature Abor (2007) conducted a research on SMEs in Ghana and used 160 SMEs. the results were consist with pecking order hypothesis the coefficients for performance measured by profitability were negative and significant to this was in relation to capital structure proxies measured by long term debt and short term debt. This implied that internal financing increases profits hence SMEs tend to avoid using debt to finance their activities . Though profitable firms tend to have better access to debt finance the need for debt finance may be lower if retained earnings are sufficient to satisfy the need. Abor J. (2008) researched on determinants of the capital structure of Ghanaian firms listed on the Ghana Stock Exchange (GSE) during the six-year period, 19982003. The results also reveal that both long-term and short-term debt ratios were negatively correlated with profitability in all the sample groups. The results of this study clearly supported the pecking order hypothesis, in that profitable firms initially rely on less costly internally generated funds and subsequently look for external resources if additional funds are need.
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Mohammadzadeh (2011) studied firms listed on Tehran Stock Exchange and found that firms performance which is measured by (EPS & ROA) are negatively related to capital structure. These findings are consistent to Zeitun and Tian (2007) and Abor (2007) who indicate firm performance is negatively related to capital structure. while its not consistent with findings of Berger and Bonaccors di Patti (2006) who revealed a positive relation between firm performance and capital structure, Ngoc-Phi-Anh D. & Jeremy D.(2011) examined the relationship between firm characteristics, capital structure and operational performance among a sample of 427 companies listed on the Vietnamese stock exchange during the three years 2007-2009. The results showed that both long term debt and short term debt were negatively correlated to performance shown by return on asset (ROA), but positively correlated with the long-term assets ratio (LTDA) and negatively correlated with short term ratio (STDR). Vedran S.(2012) researched on capital structure and firm performance in the Financial Sector in Australia the results showed that a significant and robust quadratic relationship between capital structure and firm performance At relatively low levels of leverage capital structure is positively correlated to performance and at relatively high levels of leverage capital structure is negatively correlated to performance . This was attributed to financial distress outweighing any gains made from managerial performance Mohammad F. & Jaafer M. (2012) seeks to extend Abors (2005). in there study with sample of 39 Jordan companies reveal significantly negative relation between debt and profitability. These show that an increase in debt position is associated with a decrease in profitability; thus, the higher the debt, the lower the profitability of the firm. The results also show that profitability increases with control variables; size and sales growth. Abdul G (2012) studied the relationship of capital structure decisions with firm performance of Pakistan firms measured by Tobins Q. The results showed that a negative and significant relationship exists between short term debt to total assets and total debt to total assets measures of capital structure and the Tobins Q. The relationship between long term debt to total assets and Tobins Q is positive whereas the control variable (firm size) shows a significantly negative relationship with the performance variable measured by Tobins Q, as large size firms shows inefficiency and affects the firm performance negatively. Nour A. (2012) studied Capital Structure and Firm Performance of Palestine firms the results indicated that firm performance is positively related to capital structure and statistically significant with total debt to total assets except Market value of equity/ Book value of equity was significant with total debt to total assets & short-term debt to total assets. Iorpev L. & Kwanum L (2012) found a negative and insignificant relationship between capital structure and firm performance for firms listed on Nigeria stock exchange. The study concludes that statistically, capital structure represented by short-term debt to total assets (STDTA), long-term debts to total assets (LTDTA) and total debt to equity (TDE) is not a major determinant of firm performance. Abor (2005) reports a positive relation beween capital structure, which measured by STD and TD, and performance over the period 19982002 in the Ghanian firms Puwanenthiren (2012) analyzed the impact of capital performance on Sri Lanka business firms. The results show that performance shown by ROE and ROA have negative relationship
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with capital structure at -0.104, -0.196 respectively. The F and t values were 0.366, -0.605 respectively and the relationship was insignificant. Thus firms which depend on debt capital pay much as debt interest. Abdul G. (2012) researched on the relationship of capital structure decisions with firm performance of the engineering sector of Pakistan, the results showed that financial leverage measured by short term debt to total assets (STDTA) and total debt to total assets (TDTA) had a significantly negative relationship with the firm performance measured by Return on Assets (ROA), and return on equity (ROE) had negative but insignificant relationship with leverage. Firms in the engineering sector of Pakistan were largely dependent on short term debt but debts were attached with strong covenants which affected the performance of the firms. Independent Variable Dependent Variable

Capital structure ratios


Long term debt/ Asset ratio Short term debt/ Asset ratio Total debt/ Asset ratio

Performance
Earnings Per Share (EPS). Return on Equity (ROE). Return on Assets (ROA). Total Assets (TA). Dividend payout ratio (DPO). Market price to book ratio(PBR)

Moderating variable

Size.

Conceptual framework 3 Research Methodology


3.0 Introduction This chapter highlights the research design that the researcher used, the population from which the sample was chosen thus companies listed on Nairobi Securities Exchange, sampling frame and technique applied, data collection and analysis method that was run on the data collected. 3.1 Research Design The researcher was empirical type of research. The study was data-based research, coming up with conclusions which are capable of being verified by observation or experiment. It will utilized secondary data from companies listed on Nairobi Securities Exchange website and companies website. Audited financial statements for the companies selected were used; thus increasing the reliability and validity of the findings and conclusion.
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3.2 Sample Size And Selection Criteria The population of NSE listed non-financial firms stand at 50 companies. A stratified sampling technique was used because of the nature of the study. The study was limited to all listed non-financial firms and those that were selected had to have complete data. The sample for the study consisted of 30 companies listed on Nairobi Securities Exchange NSE for the period of five years from 2007-2011 which is about 60%. Companies that were not listed in the NSE for the duration of the five year were left out of the sample. In this research financial companies have been excluded the reason being that financial companies operate under different regulation rules the central bank of Kenya beside the companies act cap 486. The sample included companies from the following eight sectors Agricultural Sector, Automobiles and Accessories, Commercial and Services, Construction and Allied Sector, Energy and Petroleum, Insurance, Investment Manufacturing and Allied Telecommunication and Technology.

Table 1 Percentage of Samples Selected.


Company category Agricultural Sector Automobiles and Accessories Commercial and Services Construction and Allied Sector Energy and Petroleum Insurance Investment Manufacturing and Allied Telecommunication and Technology TOTAL Total no of companies 7 4 9 5 4 6 4 9 2 50 Percentage 57 75 67 80 75 33 50 56 50 60 Sample 4 3 6 4 3 2 2 5 1

3.3 Data Collection The data was taken from reliable sources to ensure the reliability of the study. Secondary data was collected from various databases to undertake the analysis. Audited income statements, balance sheets and cash flow statements was collected from the Nairobi Securities Exchange limited and companies website.

Variables used
1. Market Price to Book Value (Kshs.) = Market Capitalization Net Assets Value 2. Return on assets = Net income (profit after tax). Total assets

3. Earnings per Share = Earnings Attributable to Shareholders Number of outstanding Shares


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4. Pay Out - Ratio

= Dividend per Share Earnings per Share = Net income (profit after tax). Equity

5. Return on Equity

6. Long term debt to asset = long term debt Assets 7. short term debt to asset = short term debt Assets 8. Total debt to asset = total debt Assets

Model 1 Regression equations


a) b) c) d) e) f) Y ROE = a + b 1LTDA + b2STDA + b 3 TDA + e Y ROA = a + b1 LTDA + b2STDA + b 3 TDA + e Y DPO = a + b1 LTDA + b2STDA + b 3 TDA + e Y EPS = a + b1 LTDA + b2STDA + b 3 TDA + e Y TA = a + b1 LTDA + b2STDA + b 3TDA + e Y PBR = a + b1 LTDA + b2STDA + b 3TDA + e

Short term debt/ Asset ratio SDTA Total debt/ Asset ratio TDA Long term debt/ Asset ratio LTDA as independent variable and ROA Return on Assets, Return on Equity (ROE) Total Assets (TA), Dividend payout ratio (DPO) Market Price to Book (PBR) and E is the error term.b1 b2 b3 are regression coefficients and a is a constant. Introducing moderating variable size factor the regression equations above will be

Model 2 Regression equations (size as a factor)


g) h) i) j) k) Y ROE= a + b2 LTDA,SZ+ b3STDA, ,SZ + b 4 TDA,SZ + e Y ROA= a + b2 LTDA, SZ + b3STDA, SZ + b 4 TDA, SZ + e Y DPO = a + b2 LTDA, SZ + b3STDA, SZ + b 4 TDA, SZ + e Y EPS= a + b2 LTDA, SZ + b3STDA, SZ + b 4 TDA, SZ + e YPBR = a + b2 LTDA, SZ + b3STDA, SZ + b 4 TDA, SZ + e

Where SZ is the size of the firm which is represented by natural logarithm of sales of the firm

4. Data Analysis and Discussions Table 2 descriptive analysis table


VARIABLES ROE ROA MINIMUM -73.0 -0.08 MAXIMUM 96.30 92.99
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MEAN 17.7592 9.8359

STD VARIANCE DEVIATION 17.6568 311.7634 10.8045 116.7369


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DPO EPS TA PBR LTDA STDA TDA -768.13 -46.76 166.505E6 0.15 0.00 0.00 0.01 122.69 100.5 617.0E9 7.79 2.64 2.76 3.87 23.9745 7.8694 296.1E8 1.6545 0.2264 0.3255 0.5166 59.3364 11.8849 764.8586E8 1.3788 0.2264 0.2783 0.3814 3520.801 141.2508 5.85E21 1.901 0.0049 0.0774 0.1455

Analysis of the Descriptive statistics From the above table it is noted that all variables have positive mean .Both for capital structure proxies and performance. The mean value of ROE (17.76), ROA (9.84) and DPO (23.97) indicate that Kenyan companies listed on the NSE by considering inflation rate have a good performance and the fact that the price to book value PBV (1.65) greater than 1. This indicates that the share prices of the firm on the NSE are overvalued. Capital structure proxies of Kenyan companies listed on the NSE LTDA mean value (22.64%), STDA mean value (32.55%) and TDA mean value (51.66%) show that Kenyan firms do not heavily rely on debts to finance their activities this shows that the Kenyan companies could be financing their activities through retained earnings. The companies on the NSE tend to use pecking order theory where firms use internally generated funds to finance activities which is cheap .if more finance is required they resort to cheap debt (capital with fixed interest) before moving to capital with variable interest (equity)

Table 3 Correlations during 2007-2011


ROE ROA DPO EPS TA PBR LTDA STDA TDA ROE 1 .512** -.199 .351 .411* .584** -.386* .204 -.210 ROA 1
.149

DPO

EPS

TA

PBR

LTDA

STDA TDA

.319 .439*
.690** .117

1 .194 .127
.076 .511**

1 .063 .169
.080

1
.689** -.206

1
-.199

.230 .082

.262 .334

-.219 -.149

-.264 -.128

.166 -.272

1 .181 .342

1 .535**

** Correlation is significant at the 0.01 level (2 tailed) *correlation is significant at the 0.05 level (2 tailed)

Table 3 establishes correlation according to person matrix between capital structure proxies represented by LTDA, STDA and TD against performance proxies shown by RAO, ROE, TA, EPS, DPO and PBR. The variable LTDA measures the long term debt to asset ratio. The results show that its positively correlated (0.511**) with TA and the significant at 95% confidence level this shows firm on NSE acquire debt based on the value of asset a firm has.
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LTDA shows a negative correlation with ROA (-0.386*) and this is significant at 99% confidence level, this is consistent with Abdul G. (2012) but a weak negative correlation with DPO (-0.206) PBR (-0.199) This is consistent with Mohammadzadeh (2012) who reported a negative correlation between capital structure and ROA for companies listed on Tehran stock exchange. The variable STDA measures short term debt to asset ratio, the result shows it is negatively correlated to ROA (-0.204) and EPS (-0.219) its consistent with Puwanenthiren (2012), Ngoc-Phi-Anh D.(2011) but positively correlated to ROE (0.230) TA (0.314) DPO (0.264) and BPR (0.166) though not significant. This is consistent with Abor (2008), Mohammadzadeh 2012 who reported that BPR positively correlated to capital structure proxies though insignificant. TDA variable measures total debt to asset ratio ,the results shows that capital structure proxy TDA is weakly negatively correlated to ROA (-0.210) EPS (-0.144) DPO (-0.128) PBR (0.272) this implies that firms on NSE avoid the use of debt to finance their activities as it leads to lower performance. This is inconsistent with Abor (2005). This partly could be attributed to the period 2007 the country experienced post-election violence this might have made lenders fear to lend on long term basis hence restrictive covenants to long term debts.

Table 4a regression results for EPS,DPO &PBR


EPS
Independent variable Coeffic ient T statistic s 3.316 .377 -.599 - .365 sig VIF Coeffi cient .003 .71 .555 1.432 1.772 15.18 .011 .472 -.38

DPO
T statisti cs 4.082 .05 1.986 - 1.546 sig VIF Coeffic ient 000 .96 1.432 15.965 .077 .480 -.555

PBR
T statisti cs 5.197 .370 2.078 -2.295 Sig Vif

Constant LTDA STDA TDA

12.46 .86 -.152 -.097

0000

.714 1.432 .o48 .030 1.772 1.491

.058 1.772 .134 1.491

.718 1.491

DURBIN WATSON F TEST ADJUSTED R2 STD ERROR

2.171 .501 -.054

1.188 1.798 .076

1.52 2.399 .126

5.61355

5.55716

4.59016

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Table 4b Regression result for ROA, ROE & TA.


ROA Independent variable Coeffic ient t statistic s 6.090 -2.377 -1.647 .160 1.457 2.510 .135 3.9584 sign VIF ROE Coeffic t ient statisti cs 8.805 .263 .395 3.304 sig n VIF Coeff icient TA t statistic s Sig VIF n

Constant LTDA STDA TD DURBIN WATSON F TEST ADJUSTED R2 STD ERROR

16.134 -.491 -.379 .185

.000

. 003

1.432 1.722

9.201 4.559 .63 3.461

.000 .002 .040 .590

1.432 1.772 1.941

.025 1.432 .112 1.772 .512

1.184 .247 1.597 .122 -.845 1.813 1.002 0.000 3.9816

.438 2.163 -.116 -.546 1.562 5.74 .329 3.01537

1.941 -.219

.406 1.941

Variance inflation factor (VIF) Variance inflation factor is the undesirable situation where the correlations among the independent variables strong, it refers to actual disparity percentage to total disparity among variables. Mohammad (2012). If this factor is less than 5 then there is no multi-collinearity problem. From the above tables 4a & b all the regression models have a VIF less than 5 hence no multicollinearity problem indicating the disparity is small. Durbin Watson It is a test statistic that is used to detect the presence of autocorrelation (a relationship between factors test autocorrelation among regression models) if the value is less than 3 then there is no auto correlation problem Alsaeed (2005). If the value is substantially less than 2 then there is evidence of positive serial correlation. if less than 1.0, there may be cause for alarm. Form tables 4a & b Durbin Watson values for ROA (1.457), ROE (1.831), TA (1.562), EPS (2.171), DPO (1.188) & PBR (1.52) This shows there is no autocorrelation problem on the regression models The relationship between TA with capital structure shown by R2 coefficient of determination is 0.329 that is only 32.9% of variance in the capital structure (LTDA STDA and TDA) can be accounted by TA. For ROA with capital structure shown by R 2 coefficient of determination is 0.135 that is only13.5% of variance in the capital structure (LTDA STDA and TDA) can be accounted by ROA. For PBR the relationship with capital structure shown

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by R2 coefficient of determination is 0.126 that is only 12.6% of variance in the capital structure (LTDA STDA and TDA) can be accounted by PBR The final equations shall be: a) b) c) d) e) f) Y ROE = 8.8 + .263LTDA + .395STDA - .219TDA Y ROA = 16.134 -.491LTDA - .379STDA + .185TDA Y DPO = 15.18 + .011LTDA + .472STDA - .38 TDA Y EPS =12.46 + .86LTDA - .1525STDA - .097TDA Y TA = 9.201 + .631LTDA + .438STDA - .116TDA Y PBR = 15.965 + .771 LTDA + .48STDA + .555TDA

Table 5 Correlation Analysis Model II Equations During 2007-2011


ROA ROA ROE TA EPS DPO PBR LTDsz STDsz TDAsz ROE 1 .512** -.199 .351 .411* .584** -.374* -.224 -.225 TA 1
.149

EPS

DPO

PBR

LTDsz STDsz TDAsz

.319 .439*
.690** .244

1 .194 .127
.076 .686**

1 .063 .169
.097

1
.689** -.051

1
-.070

.273 .202

.535** .703**

-.151 -.073

.331 .144

.150 -.097

1 .300 1 .544** .780**

** Correlation is significant at the o.o1 level (2 tailed) *correlation is significant at the 0.05 level (2 tailed)

Table 5 correlation analysis taking size of the firms as a moderating variable (size is taken to be represented by natural logarithm of sales) the correlation matrix between performance and capital structure proxies show that capital structure proxies LTDsz (0.686**) TDsz (0.703** & STDAsz (.535**) have a strong positive correlation with TA and for each its significant at 99% confidence level. This implies that with a firms size as a factor firms on NSE acquire debt based on the value of the asset thus use it as collateral. The results show that LTDsz proxy of capital structure is positively correlated to ROA, though weak form. LTDsz show weak negatively correlated to DPO -0.551 PBR -0.071, STDsz and TDsz show a weak negative correlation to ROA and EPS relate positive correlation to both DPO and PBR.

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International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2 Table 6a Regression results for performance and capital structure proxies (size as a moderator)
ROA Independe nt variable Coeffici ent t statistic s Sig n VIF ROE Coeffi cient T statisti cs Sign VIF TA Coeffic ient T statis tics sign VI F

Constant LTDAsz STDAsz

12.602 -.402 -.252

6.8762 000 -.1829 -.856 .079 .400 .574

1.502 2.702 3.490

9.935 .256 .376

5.641 000 1.132 .268

1.502 2.702 3.490

10.365 9.826 .450 .108 3.077 .552

000

.005 1.502 .586 2.702 .105 3.490

1.241 .226 .510

TDAsz .190 .569 DURBIN 1.353 WATSON F TEST 1.704 ADJUSTE .068 D R2 STD 4.10937 ERROR

-.230 -.668 1.846 1.164 .017 3.94873

.374 1.68 2.095 14.753 .587 2.36497

Table 6b Regression results for performance and capital structure proxies (size as a moderator)
EPS Independent variable Coeffic ient t statistic s 4.270 .684 -.603 -.033 sign VIF DPO Coeffic t ient stati stics 12.769 5.13 -.249 Sign VIF PBR Coeff icient t statis tics Sign VIF

Constant LTDAsz STDAsz TDAsz Durbin Watson F Test Adjusted R2 Std Error

10.476 .161 -.190 -.012 2.021 .41 -.065

000

000 .806

1.502 2.702 3.490

14.221 6.645 000 .082 .367 .603 2.021 .717 .054

1.502 2.702 3.490

.500 1.502 -.055 .552 2.702 .974 3.490 .6601 -.326 1.184 1.711 .068

2.041 .051 -.973 .34

-.612 -1.805 .083 1.421 1.462 .046

5.6418

.58051

4.79788

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From the results table 6a & b Model II the VIF values are less than 5 hence no multi collinearity problem, also the Durbin Watson factors are less than 3 hence no autocorrelation problem From the results table 6a & b The relationship between TA with capital structure shown by R2 coefficient of determination is 0.587 that is only 58.7% of variance in the capital structure moderate by size (LTDAsz STDAsz and TDAsz) can be accounted by TA while the remaining 41.3% by other factors no considered. For ROA with capital structure shown by R2 coefficient of determination is 0.068 that is 6.8% of variance in the capital structure (LTDAsz STDAsz and TDAsz) can be accounted by ROA. For PBR the relationship with capital structure shown by R2 coefficient of determination is 0.046 that is only 4.6% of variance in the capital structure (LTDAsz STDAsz and TDAsz) can be accounted by PBR The final equations shall be: a) b) c) d) e) f) Y ROE = 9.935 + .251LTDA + .376STDA + .230TDA Y ROA = 12.602 -.402LTDA - .252STDA + .190TDA Y DPO = 12.769 -.055LTDA + .6601STDA - .323 TDA Y EPS =10.476 + .16LTDA - .190STDA - .012TDA Y TA = 10.365 + .45LTDA + .108STDA + .374TDA Y PBR = 14.22 + .082 LTDA + .603STDA - .612TDA

5. Conclusion
The research aims to explore the relationship between capital structure and performance of firms listed on Nairobi securities exchange. A sample of 30 companies was selected for the period 2007-2011. Analysis was performed using both descriptive statistics and inferential by applying linear regression analysis Firms listed on Nairobi securities exchange have adopted pecking order hypothesis deu to undeveloped debt market and the restrictive covenants associated with long term debt, this makes long term debts expensive hence making firms borrow less. Most firms prefer to finance their activities by using short term debts. From the results the total assets was positively correlated to capital structure proxies and it was significant this indicate that long term debts was utilized by large firms that had large assets which could be used to act as collateral for securing the loans. Further research should be conducted on Kenyan market on financial firms to check consistency with the results. Also other market based measures should be applied so as to test the relationship of performance and capital structure to give more insight on the state of affairs on Kenyan case 6. Recommendation The researcher recommends the following Firms should consider using optimal capital structure, that is the appropriate debtequity mix so as to meet there obligation when due to avoid chances of bankruptcy and make the firms profitable. Political stability is an important factor in the debt-equity market it determines the firms performance regardless of size and financial base. The researcher recommends
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that the political wheel of the government should aim at stability for better performance. Inflation and exchange ratio greatly affect performance of listed firms thus government should control inflation to hedge listed firms against losses. Incentives and goodwill to investors and firms on NSE is essential to accelerate growth and performance.

References
Abdul G. (2012) The relationship of capital structure decisions with firm performance: A study of the engineering sector of Pakistan. International Journal of Accounting and Financial Reporting ISSN 2162-3082 Vol. 2, No. 1. Abor J & Biekpe N. (2007) How do we explain the capital structure of SMEs in subSaharan Africa? Evidence from Ghana. Journal of Economic Studies Vol. 36 No. 1, 2009 pp. 83-97. Abor J. (2008) Determinants of the Capital Structure of Ghanaian Firms. AERC Research Paper 176 African Economic Research Consortium, Nairobi. Iorpev, L. & Kwanum, I. (2012) Capital Structure and Firm Performance: Evidence from Manufacturing Companies in Nigeria. International Journal of Business and Management Tomorrow Vol. 2 No. 5 Mohammad F. & Jaafer M. (2012) The Relationship between Capital Structure and Profitability. International Journal of Business and Social Science Vol. 3 No. 16. Mohammadzadeh H. (2012) Capital Structure and Firm Performance; Evidence from Tehran Stock Exchange. 2011 Conference Islamic Azad University, Marand, Iran Ngoc-Phi-Anh D. & Jeremy D.(2011) Firm Characteristics, Capital Structure and Operational Performance: a Vietnamese Study APEA 2011 Conference Pusan National University, Busan, Korea Nour A.(2012) Capital Structure and Firm Performance; Evidence from Palestine Stock Exchange. Journal of Money, Investment and Banking ISSN 1450-288X Issue 23. Owolabi, S. & inyang,U (2013). International Pragmatic Review and Assessment of Capital Structure Determinants. Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 2, No.6. Popescu L.& Visinescu S.(2009). A review of the capital structure theories. Research Paper Puwanenthiren P. (2012) Capital Structure and Financial Performance: Evidence from Selected Business Companies in Colombo Stock Exchange Sri Lanka Journal of Arts, Science & Commerce. E-ISSN 2229-4686 Vedran S.(2012) Capital Structure and Firm Performance in the Financial Sector: Evidence from Australia Asian Journal of Finance & Accounting ISSN 1946-052X Vol. 4, No. 1

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Dissemination and Updation of Advanced Surgical Knowledge Using Video Conferencing Technology for Surgeons in INDIA - A Case Study of Ortho One Hospital Knee Programme
M.S. Bexci Research Scholar, Department of Journalism and Mass Communication, Periyar University, Salem, Tamil Nadu, INDIA Dr. R. Subramani Assistant Professor, Department of Journalism and Mass Communication, Periyar University, Salem, Tamil Nadu, INDIA

Abstract
Trained and competent medical practitioners are the basis of an effective health system and severe shortage of such professionals can prove to be detrimental to patients. One of the major challenges that medical practitioners face is ensuring that their medical knowledge remains updated. However, in India, the population is very huge and it is a mammoth task to provide current and updated healthcare practices. Hence, it requires an effective and convenient medium without demographical and geographical boundaries to provide new knowledge to the medical practitioners, amidst their busy schedules of patient care and healthcare delivery. To improve the knowledge base under any difficult situations, existing Information and Communication Technologies (ICTs) can be used to disseminate knowledge for enhanced health care delivery. The objective of this research work is to study and analyse Video Conferencing based model for medical knowledge through questionnaire based survey followed up with critical analysis. The findings of this research suggest that Video Conferencing is one of the best tools for continuous updation of knowledge to medical practitioners accompanied with the absence of any learning curve in a highly populous country like India. Key words: Video Conferencing Technology, Medical Knowledge Dissemination and Updation, New Surgical Skill Acquisition, Live Surgical Demonstration

Introduction
Continuing Medical Education (CME) The population of India is almost 1.1 billion with a 2% increase annually. Hence, India is one of many countries facing severe shortages of trained medical professionals especially doctors (Emerging Market Report: Health in India, 2007; Katrak Homi, 2008). Foreseeing the need to cater the best possible healthcare services to such a large growing population, a stress on the need for medical practitioners to remain abreast with the changing knowledge base of their profession exists. This is now being formally recognised by health professionals with the introduction of mandatory Continuing Medical Education (CME) (Weindling, 2001; Tamil Nadu Dr. MGR Medical University Continuing Medical Education Guidelines. 2010). The intention behind the CME is to enable doctors in enlightening themselves, so that they remain up-to-date with the latest medical advancements related to their speciality training. Information and Communication Technologies for Medical Knowledge Updation Medicine is a knowledge centered profession, where new knowledge is incessantly created and takes a few years to be disseminated to the professionals (Pauker et al, 1976; Kee Hyuck
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Lee et al. 2007; Shetty, 2012). On an average medical practitioners use two million medical information and a third of medical practitioners spend time in collecting and recording them (Wyatt, 1991; Hersch &Lunin, 1995; Smith, 1996). If such knowledge has to convert into treatment, which is the ultimate goal, continued learning is vital for medical practitioners to appraise their professional knowledge and ensure they stay up-to-date with current developments in their field (Shanahan, 2009). When equipped with such speciality knowledge, medical practitioners will be in a grander position to provide advanced medical care when it comes to providing complex medical care to the patients (Aniruddha, 2012). In addition to the increasing knowledge, medical practitioners also face greater demands from their patients. It is not only medical practitioners who obtain latest information constantly, but also their patients. Patients keenly search for medical information on their clinical condition and treatment quality issues. They are also more aware of the diverse treatment choices and care possibilities mostly on the Internet (Karel et.al, 2000). As the rate of change in medical knowledge has accelerated with new scientific findings every, the medical knowledge increases multi fold during a professional career span which inevitably means that practitioners cannot practise high quality medicine without constantly apprising their knowledge (Wyatt, 1991; Heathfield & Louw, 1999). Before the advent of new communication technologies like Internet and mobile phones, medical practitioners encountered technical hitches in finding sources or for accessing new information whenever they wanted to deal with patients with critical problems (Smith, 1996). Pursuant to this context, healthcare institutions and practitioners are increasingly looking at a technology that shows promise for helping to ameliorate some of the more critical problems, especially as regards knowledge transfer: and have thus identified an important two-way, interactive videoconferencing. More than a decade ago, Video Conferencing has begun to challenge or extend conventional methods of transferring healthcare knowledge, and on several fronts (Alan, 2004; Taylor & Lee, 2005). Healthcare and Professional associations use Video Conferencing technologies to aid in the training and upgrading of medical skills as it improves self and problem based learning and integrated approach. Video Conferencing also bridges other elements often missing from traditional methods of education for on-site learning, as well as at a distance. When too many surgeons standing in the Operation Theatre may cause more interruptions to actual learning but when using Video Conferencing, this no longer becomes a limitation (Lundvoll, 2011). In this Video Conferencing learning space, the practitioners learn what they need to know (intended learning), when they need to know it, and often in the context in which it will be used (Sambataro, 2000). The focused knowledge thus obtained is used while treating patients at complicated situations (Nissen et al. 2004). A convergence of expensive educational facilities and years of lengthy training could easily be bypassed through Video Conferencing as up-to-date medical knowledge is channelled directly to the practitioners (Lee et al. 2007). Video Conferencing a learning aid for Medical Practitioners Video Conferencing is a specialized form of telemedicine that uses technology to provide real-time visual and audio f o r patient assessment. Examples of Video Conferencing practice in telemedicine are: tele-consultation, tele-medical education, peer consultation, patient education, and direct patient care (Norris, 2001; Kitamura et al. 2010). Advances in technology and changes in medical care delivery have enhanced the ability to
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develop effective telemedicine video conferencing systems (Cynthia et al 2002; Wynchank & Fortuin 2010). In 2004, the Society of American Gastrointestinal and Endoscopic Surgeons (SAGES) presented their definitions of telemedicine. Telemedicine is the practice of medicine and/or teaching of the medical art, without direct physical physician-patient or physician-student interaction, via an interactive audio-video communication system employing tele-electronic devices. Video Conferencing is defined as a real-time, live, interactive program in which one set of participants are at one or more locations and the other set of participants are at another location. The Video Conferencing permits interaction, including audio and/or video, and possibly other modalities, between at least two sites (S.A.G.E.S, 2010). For the medical fraternity, Video Conferencing facilitates face to face real time interactions with the specialists exchanging patient data resulting in prompt feedback. The feedback is crucial for overcoming time and spatial limitation for interactive tele-learning and quick knowledge sharing in order to provide better local treatment to patients (Joo, 1998; Kendall et al. 2004; Line, 2012). In the face of an impending shortage of doctors and other practitioners, this technology can be used to accelerate transfer of knowledge and maximize the expertise of existing practitioners. In India Video Conferencing is a fast-evolving trend, braced the countrys steady use of Information and Communications Technologies (ICT). A number of private hospitals have adopted Video Conferencing services through public-private partnerships (PPPs), among them are Apollo, AIIMS, Narayana Hridayalaya, Aravind Hospitals and Sankara Nethralaya. Today there are approximately 120 telemedicine centres with Video Conferencing facilities throughout India for healthcare delivery and imparting professional knowledge to the medical fraternity (Emerging Market Report: Health in India, 2007). Video Conferencing for Surgeons Video-conferencing is widely used as educational aid by surgeons throughout the world. The rapid evolution of scientific and technical knowledge in surgery explains the demand by surgeons for easy and full access to high-quality information. Older methods of surgical education are not adequate to meet the current need (Go et al. 1996). Due to this demand for continuous improvement in the quality patient care, there is a need for surgeon's to improve their ability to perform surgical procedures (Visram, 2005). Surgeons can keep them abreast of breakthroughs in disease management and improve patient care by saving the travel time and costs as it quickens the time to disseminate advanced diagnostic and treatment knowledge (Alan, 2004). Video Conferencing has proved to be a great tool that has potential to improve surgical practice among surgeons, where they can gain access to quality continuing medical education and continuing professional development and can sophisticatedly help surgeons extend clinical solutions and improve service delivery. Today Video Conferencing is a knowledge sharing technology, is a common clinical tool for surgeons that provide a great learning opportunity to learn first-hand on surgical practices and to offer patients the best expertise (Kendall et al. 2004; Augestad & Lindsetmo, 2009). Surgeons experience an instructive learning, reading, surveillance and experience under guidance throughVideo Conferencing introduces (Alessio et al. 2008; Mohamed et al. 2012).
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Video Conferencing Technology for Knowledge Acquisition in Advanced Medical Practices Dr.Micheal Ellis DeBakey introduced the first Video Conferencing demonstration of Openheart surgery in 1960. Subsequently, there has been significant development in the use of Video Conferencing among Surgeons for medical training. Rapid dissemination of advanced practices requires surgeons to exchange cutting-edge knowledge to various counterparts dispersed around the globe. Video Conferencing applications like live surgical demonstrations for education of surgeons from one or more locations have already emerged. The use of the technology for transfer of knowledge relevant to advanced surgical practice makes it easier for Surgeons to take part in on-going learning because it is often more convenient and allows for self-directed, active learning when advanced techniques are used while performing complex surgeries (Mamary & Charles, 2003; Paul et al. 2012). Surgery conducted via a Video Conferencing technology is a visual speciality where live pictures provide detailed information about anatomic positions, giving the surgeons on the spot information about the patients anatomy. Consultations between the surgeons and the experts create opportunities for learning wherein dilemmas are presented and solved by bridging knowledge gaps. The interactive exchange of up-to-the-minute can help expert surgeons can give advice to the operating surgeon and immediately correct his or her surgical actions. This new knowledge guidance on potentially life-saving advice is most advantageous when learning happens in tense situations (Augestad & Lindsetmo, 2009; Engestrm, 2001; Waran et al. 2008).

Literature Review
Studies on the use of Video Conferencing for Knowledge acquisition are more in the developed countries. At the moment, evidence on similar studies in Indian scenario is frail and need urgent attention. A new telemedicine system demonstrated in three hospitals across Europe using an advanced Video Conferencing system enabled the sharing of high quality, real time video images of surgery for training and diagnosis. The demonstration proved to improve medical training and patient care across Europe. It provided the ability to view new surgical techniques and collaborate internationally on diagnosis and share skills and experience. The success of this demonstration shows how high speed networking can underpin telemedicine across Europe and the world, enhancing healthcare for all. Surgical training has traditionally been based on observing operations and learning from them. As surgical skills become more specialised, the need to train surgeons remotely in order to improve knowledge transfer and enhance abilities. Using television-quality video to remotely watch live keyhole surgery undertaken in other countries, promises a disruptive change to training in this area, benefiting all involved (Red Iris Report, 2009). The So Lucas University Hospital, Brazil conducted Video Conferencing technology Programme that proved to be an important instrument for the improvement of medical education and health care. Through the study the health professionals, professors and students involved had greater interaction during surgical procedures, thus enabling a greater opportunity for knowledge exchange (Russomano et al. 2009). Similar studies by Johnsen and Bolle demonstrated that Video Conferencing influenced the information basis and understanding of between learners. They emphasized visual observation as a way of constructing professional understanding when using Video
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Conferencing. Video Conferencing also improved the learners compliance (Johnsen & Bolle, 2008). An Australian study on providing synchronous tutorials in Paediatric surgery using Video Conferencing at two rural sites with the tutor located at a metropolitan Paediatric clinical school also proved to be effective. Video Conferencing surgical tutorials were highly valued by the graduate medical students, as an educational method, who was involved in the study experiment (Holland et al. 2008). Video Conferencing Technology was used by the Orthopaedic surgeons in Norway to update their clinical skills (surgical treatment of irregularities of teeth and the jaw) in remote areas. Through the study the surgeons found that Video Conferencing was an effective educational tool (Olsen, 2006). Video Conference on live surgeries was organised by the Association of Surgeons of India (ASI) - Tamil Nadu and Pondicherry Chapter aimed at transferring the knowledge of senior surgeons to the young doctors. The Video Conference provided a lot more information to the learners through a live surgical demonstration on removal of a gall bladder. The young surgeons found to have learnt in-depth clinical knowledge (The Hindu, 2006). Another intriguing example of the potential use of Video Conferencing for sharing advanced techniques by the Canadian Surgical Technologies and Advanced Robotics (CSTAR) programme results proved that the participated surgeons received cutting-edge surgical expertise. The programme focused on tele-surgery using robotics (Alan, 2004). According to Maruping and Agarwal using Video Conferencing in real time clinical setting observed a high immediacy in feedback so that the results of using the technology were easily verifiable as it enabled Communication with multiple participants simultaneously (Maruping and Agarwal, 2004). Case study Today, there is a need to find a functional approach in evaluating Video Conferencing for acquiring intricate medical knowledge when there is an apparent change in the nature of the diseases and treatment options. To find what new modalities can be used, the existing pattern in using Video Conferencing has to be obtained. Hence, the case study of the Ortho One Hospital Knee Programme was selected to study the attributes involved in Knowledge acquisition using Video Conferencing through Learning Process, Quality of Presentation (Content and Technical) and Avenues for improvement. The objective of this research work is to study and analyse Video Conferencing based model for medical knowledge updation in a highly populous country like India and analyse if it can be a generic model to other developing countries.

Introduction of the Video Conferencing Programme


Ortho One is a Super Specialty Orthopaedic Hospital in Coimbatore, Tamilnadu, India that offers specialized services such as Arthroscopic Surgery and Orthopaedic Sports Medicine. The Hospital is recognized by ISAKOS (International Society for Arthroscopy, Knee Surgery and Orthopaedic Sports Medicine). The hospital has an Advanced Learning Centre for Arthroscopy (approved by the ISAKOS) which aims to bring state-of-the-art training facilities to India and to train orthopaedic surgeons in Arthroscopy.
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Ortho One Operative Knee Programme was organised as a three day national workshop starting from the 26th October 2012 to the 28th October 2012. The Programme was scheduled for Arthroplasty and Arthroscopy on the first and second day respectively and a Rehabilitation Programme on the third day. An expert surgeon in the field of Arthoplasty performed the surgery in Ortho One Hospital Operation Theatre which was Video Conferenced live at a convenient Conference Hall, a few kilometres away. There were 4 live surgery demonstrations on the first day and 5 live surgical demonstrations on the second day on Complex Primary Knee, Revision TKR Single/Double ACL Reconstruction PCL Reconstruction and Revision ACL Reconstruction

The expert surgeon arrived at the conference hall after the Video Conferencing programme for personal interaction with other participant surgeons. Other topics discussed during the programme included HTO, Unicondylar Knee, Present Status of Minimal Invasive Surgery (TKR) Role of Patient specific cutting blocks, Management of Post TKR stiff knee, Current concepts in cartilage repair, Current knowledge in Meniscal transplant/Collagen meniscal implants. Surgeons from various states of the country participated in this programme. All the surgeons were male and aged between 30 and 40. Edited Video of the programme can be accessed at https://docs.google.com/file/d/0B4i4Sp3g7PgFdjVjSm53Ri1NWW8/edit Technical Specifications of Communication Equipment used in the Video Conferencing Ortho One Hospitals outsourced a private Medical Media Organization for the supply of the two-way Audio Visual Video Conferencing logistics and its operations. MX 100 Panasonic Video Mixers were used as an Interface and Black Magic Camera Converter was used to transmit. The Projectors were High Definition (HD). Boss Audio Systems for audio communication with Beringher Speakers were used. Sony NX5 HD Camcorders was used to record the surgery.

Research Methods
Questionnaire based survey followed by critical analysis was used in this research. Care was taken to obtain genuine, unbiased and non-discriminatory survey input. Sample Selection 150 surgeons participated in the Programme (Ortho One Operative Knee Programme E-newsletter. 2012).The sample population for this study was chosen according to the following criteria. a. Respondent should be an external candidate b. Respondent should not be working with Ortho One Hospital or its Affiliated Institutions c. Respondent should not share any individual or mutual interest in furthering the interest of Ortho One Hospital. d. Respondent should not be a beneficiary or viable beneficiary of Ortho One Hospital. After examining the participants, it was found that only 35 among the 150 were truly independent of Ortho One Hospital and its Affiliated Institutions. Therefore, these 35
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external respondents were chosen for this study, so that their answers to the questionnaire can be treated as genuine, non-discriminatory and unbiased.

Questionnaire Five attributes were used to design the Questionnaire to study the effectiveness of the Video Conferencing used in the Ortho One Knee Programme through live surgical demonstration, namely, (1) Avenues for Programme Improvement (2) Learning Process (3) Video Conferencing Technical Awareness (4) Presentation (5) Technical Quality of Presentation besides questions relating to participants acceptance of new technology. For each of the five attributes a set of questions was asked with Yes/No response. Each question was randomly arranged in the questionnaire to mask the attribute for the participant while filling up the questionnaire. The questionnaire and analysis are given in Annexure.

Data Analysis, Interpretation and Discussion


Based on the attributes mentioned in the questionnaire development, the data of the 35 samples were coded and processed with SPSS Statistics 17.0 software and Percentage Analysis were used for result analysis. The responses to each item of the questionnaire were then grouped under the respective Attribute for evaluation of the effectiveness of the Video Conferencing Program. Some of the questions have been worded uniquely so that the questionnaire does not reveal its motive of evaluation of the effectiveness of the Video Conferencing programme but displays a motive of collecting feedback regarding the programme. This is done so that all participants who answered the questionnaire gave sincere and genuine responses to the questionnaire without biasing the questionnaire responses for or against the evaluation. Therefore, for the sake of evaluation of the data, the YES response needs to be taken into account, while for some other questions, the NO response needs to be taken into account for analysis. Avenues for Improvement (93.80%) Majority (80%) of the participants observed that the Programme reached to its full potential; while the rest 20% felt that the Programme couldnt reach to its full potential. All of the participants were satisfied with the overall use of the Video Conferencing used in the Programme. All the participants wanted the Organisers to use Video Conferencing for other related programmes. Majority (97.10%) of the participants wanted to use Video Conferencing Technology for obtaining advanced surgery techniques in their place of work; while 2.90% were not inclined to use the technology. Majority (88.60%) of the participants wanted to use Video Conferencing Technology in rural India; while 11.40% of the participants did not show inclination toward using Video Conferencing in rural areas. Majority (97.10%) of the participants acknowledged the need to update their knowledge base in Video conferencing and its related areas; while 2.90% of the participants did not acknowledge this need. Overall, there is scope for improving Medical Knowledge through Video Conferencing programme.

Discussion
Overall this research demonstrates that Video Conferencing has the potential can become a hands-on technology to disseminate intricate medical knowledge to the practitioners as participants learnt new surgical techniques like Biceps Tenodesis, Fixation of Tibial Spine Avulsion, Knee Instrumentation, Multi Ligament Injury Management, New Approaches to Total Knee Replacement, Postero Lateral Corner, Double Bundle ACL Reconstruction,
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including decision making in complex knee situations, and Staff Positioning . Technological enhancements in Video Conferencing can be incorporated suitably to provide better understanding. Exploring innovative technology in Video Conferencing like usage of HD displays and 3D displays may overcome limitations in working with traditional Video Conferencing Methods. Participants through the Questionnaire survey have requested for similar live surgical demonstrations through Video Conferencing programmes like surgeries in Ankle and Elbow Arthroscopy, Hip and Shoulder Arthroscopy, Spinal Deformity and Trauma. Separate modules for such surgeries can be offered as an extended activity to aspiring Surgeons like a Credit Component P rogramme. While most of participants were fully satisfied with the current use of Video Conferencing in the programme and even wished to extend the use of Video Conferencing in their place of practice or to a rural area, there were some reservations in few participants in using Video Conferencing for knowledge updation in their place of practice. Fearing to take additional responsibilities or costs considerations may pull them against using the technology. Learning process (92.64%) Majority (82.90%) of the participants felt that it would be better to view the live surgery on Internet with a login ID and password; while 17.10% of the participants preferred Video Conferencing. Majority (97.10%) of the participants said that the programme through Video Conferencing helped them learn new skills; while 2.90% of the respondents disagreed. All the participants approved that learning through Video Conferencing was easy. All the participants agreed that the course helped them to learn best practices and it improved their knowledge. Majority (91.40%) of the participants agreed that Video Conferencing facilitated self-learning; while 8.60% of the participants opposed. Majority (97.10%) of the participants said that the programme through Video Conferencing improved their awareness on new surgery techniques; while 2.90% opposed. Majority (80%) of the participants said that the Programme through Video Conferencing introduced new medical equipment used in the surgery; while 20% of the participants disagreed. Overall, learning new surgical skills through Video Conferencing have been successful.

Discussion
Video Conferencing was used in the programme to provide medical knowledge updation. Imparting awareness in using modern communication tools along with the unique nature of Video Conferencing will make more medical practitioners interested in learning medical knowledge. Say, viewing live surgeries online using Internet would enable participants to save time and effort by participating in such programs at the convenience of their location instead of travelling to attend such programmes. Further, they can participate in more programmes at a short time which will help them to update their medical knowledge at a rapid rate. Such approach will merge into an innovative environment where learning and consultation become mutually complementary and inseparable. Rural patients and health professionals alike can benefit from the same access to services and educational opportunities that their urban counterparts enjoy. Participants were able to understand better when medical knowledge updation is done practically through live demonstration instead of theoretical descriptions. A video documentation of the programme/best practices can be taken from the hospital operation
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theatre and also from the centralized conferencing room where surgeons view the surgery through Video Conferencing. These can be later edited and published for surgeons and other stakeholders for use as an educational material (updation/revision of medical knowledge) as most of the participants felt a need for such recording as there seems to be a lack of resources on the subject and materials in the form of books/brochures/DVDs will serve as a useful tool. Learning through Video Conferencing is an easy task and the participants also felt that it facilitated self-learning. Participants preferred technology or learning aids that do not require much effort on their part. When strategic planning of the programme and the course content is done it will help the participants learn best practices and improve their knowledge. This response by the participants indicates that the aim/objective of the programme has been fulfilled. Participants appreciated the new surgery techniques that they have learnt through Video Conferencing. It takes a very long time in professional practice for such participants to acquire skill in new surgery techniques. When they watch a peer/colleague perform using new surgery techniques, the participants are able to improve on their knowledge in surgical skills at a rapid rate, compared to improvement through their own experiments. New medical equipment was used in the surgery which was rightly identified by the participants. This helps them to use such new equipment when the need arises. Video Conference Technical Awareness (20%) Only 20% of the participants said that they are aware of the technical details of the Video Conferencing used in the Programme; while a majority (80%) of the participants was unaware of the technical details.There is need to be appraised of the technical details of the Video Conferencing used.

Discussion
There is a strong need to impart the technical specifications of equipment relating to Video Conferencing to the participants for better comprehensive understanding. Information can be shared by the presenter or it can be distributed through printed materials or by any other means like brochures, DVDs, Posters, etc. The participants were not expected to be aware of the technical details of the Video Conferencing used in the programme. Yet few participants were aware of the technical details of the Video Conferencing used in the programme. This indicates an extensive interest by a small portion of the participants to achieve better medical knowledge updation through effective technology such as Video Conferencing. Further, it implies that the vast majority of the participants need to be appraised of the technical details of the video conferencing so that the same model may be implemented at their place of practice. Presentation (90.84%) Majority (91.4%) of the participants felt that the programme was adequately detailed by the presenter; while 8.60% of the participants felt that the presenter did not adequately present the programme. Majority (77.1%) of the participants said that the surgical equipment was introduced to them during live surgical demonstration; while 22.90% of the participants opposed. All the participants said that the details of the clinical history of the patient were provided during the live surgical demonstrations. Majority (91.40%) of the participants said that the camera view supported surgeons description; while 8.60% of the participants found that the camera view did not support surgeons description. Majority (94.3%) of the participants wanted a recorded version (with suitable mixing) of the live video surgery for use
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as an educational material for reference; while 5.70% of the participants did not feel the need for a recorded version of the live surgery. Overall, presentation of the information intended for the participants was achieved.

Discussion
There seems to be an immediate attention to focus on the delivery of the content at the time of the event. A very few participants felt that the programme was adequately detailed by the presenter. Though this fraction of the participants is very small, the progamme needs to include sessions that can address such issues in real-time. Real-time content delivery is a challenging task, but it can be strengthened with proper synchronization of the video and the extempore content by reviewing the recorded event. This helps in picking the errors and later in building methods to prevent it in the future Programme of events. There needs an improvement in the presentation in both medical and technological. Converging medical skills with technological skills is essential for enhanced learning. It can be improved only when both are in sync with each other implying very good co-ordination between the surgeon, the cameraman and the demonstrator. Training the Doctors and the technical team is necessary to make them deliver to the best expectations of the participants. Participants felt that the surgical equipment was introduced to them during live surgical demonstration while a few of the participants did not feel the same. This indicates an inadequacy in introduction of the surgical equipment used in live surgery. It is not always possible to introduce surgical equipment sufficiently during a live surgical demonstration. Consequently, introduction of surgical equipment used in live surgery should be incorporated as a separate module in the video conferencing programme without infringing on the live surgery so that all participants feel that surgical equipment has been introduced to them. Clinical history of the patient is required for medical knowledge updation and the same may also be provided as a separate module before the live surgical demonstrations so that the participants are provided time and space to conveniently grasp the clinical history of the patient and then view the live surgical demonstration for better updation of knowledge instead of clasping the details during the live surgical demonstration. Majority of the people were able to visually follow the programme effectively by absorbing in the surgeons description accompanied by the camera view. A minor percentage of the rest could have had difficulty in following the camera view and the surgeons description. Better figure of merit for this statistic can be attempted to be achieved by providing an additional set of cameras or suitable software to simultaneously provide visual representation from different angles. Technical Quality of the Presentation (88.04%) Majority (91.40%) of the participants found no errors involved in the Video Conferencing programme; while 8.60% of the participants found errors in the Video Conferencing Programme. Majority (92.85%) of the participants experienced good video clarity on both the days of live video demonstration through Video Conferencing; while 7.15% of the participants did not experience good video clarity on both the days. Majority (92.85%) of the participants experienced good resolution (with crisp and sharp video) on both the days of the live video. Majority (85%) of the participants observed that there was sufficient Ambient Lighting in the hospital Operation Theatre on both the days of the live video demonstration through Video Conferencing; while 15% of the participants observed that there was insufficient ambient
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lighting. Majority (74.3%) of the participants observed that focused lighting on point of surgery (external lighting) was adequate on both the days of the live video demonstration through Video Conferencing; while 25.7% of the participants felt that there was inadequate focused lighting on point of surgery. Majority (84.4%) of the participants observed that was appropriate level of camera zooming on the point of surgery on both the days of the live video demonstration through Video Conferencing; while 15.6% of the participants observed that there was inappropriate level of camera zooming on point of surgery. Majority (91.45%) of the participants experienced good Audio quality (less or no noise) on both the days of the live video demonstration through Video Conferencing; while 8.55% of the participants did not experience good audio quality. Majority (91.45%) of the participants experienced good synchronization of Audio and Video clarity (without time lag) on both the days of the live video demonstration through Video Conferencing; 8.55% of the participants did not experience good synchronization. Majority (91.40%) of the participants said that the video streaming of the live surgical demonstration through Video Conferencing was continuous; while 8.6% of the participants observed a brief time of pause with video buffering and that the video streaming was interrupted during the live surgical demonstration through Video Conferencing. Though the quality of Video and Audio has been appreciated, efforts to remove the insignificant errors should be considered for effective learning.

Discussion
Though the quality of Video and Audio has been appreciated, efforts to reduce negligible errors between Video and Audio felt during the event can be corrected as very few participants observed some errors. The errors found may have been very insignificant that the remaining participants observed good audio and video clarity. It could be possible that the video clarity had been good and satisfied a majority of the participants while a small minority of the participants could have felt that the video clarity was not good according to their perception. Minor errors affecting video clarity can be improved by enforcing more quality on the Video Conferencing technology used. Similar attention needs to be given to provide good quality lighting from the Video Conferencing perspective instead of maintaining a standard lighting in the operating theatre. There is an insufficiency in lighting from the Video Conferencing perspective, though there could have been sufficient lighting as per standard operation theatre external lighting requisite. Augmentation of camera zooming in accordance with strict medical video requirements can be concentrated to provide satisfactory zoom level perception for all participants. Minor errors have been noticed by a very few participants. Enforcement of better technical quality of Video Conferencing would enable good audio quality in all localized environments of the Video Conferencing. Better concentration to acoustics of the hall and environment needs to be given. Most of the participants experienced good synchronization of Audio and Video Clarity (without time lag) on both days of the video conferencing, while a few participants did not feel the same. There could have been a time lag between the audio and video in the process by any external factor that caused the small minority of participants to feel that the audio and video clarity was out of synchronization with each other. A very few participants observed a brief pause in video conferencing with buffering while 91.40% of the participants observed continuous video display. Judged in conjunction, there could have been a very small interval of time wherein the video buffering had taken place, which was not noticed by the vast majority of participants. Consequently, this could be a reason for some of the
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participants noticing a brief time lag between audio and video clarity (in a previous item discussed above) the audio could have played without interruption while the video could have undergone a slight buffering, throwing the audio and video out of synchronization for a very brief imperceptible period of time and then resuming synchronization (noticed by a very few participants only). Tuning video, audio, lighting, camera focus prior to the event through a dry run test is very important to achieve full success. These improvements when done to the present model of the Video Conferencing for medical knowledge updation will evolve the same model into a highly efficient generic Video Conferencing model for medical knowledge updation in any country where the number of medical practitioner/doctors is low compared the actual population. Further, this can be extended to such and other similar video conferencing programs to obtain maximal benefit in all programs utilizing Video Conferencing with reference to the Indian Scenario. Acceptance of Latest Technology More than a half (51.40%) of the participants did not like to the idea of viewing the live surgical demonstration on laptop; while 48.60% of the participants welcomed using Internet for live surgical demonstration. More than a half (57.10%) of the participants did not like the idea of using headphones for listening to the live surgical demonstration; while 42.90% of the participants felt using Headphones will have better audio clarity.

Discussion
Over a half of the participants did not like the idea of viewing the live surgical demonstration on laptop which means that an almost equal half of the participants liked the idea of viewing the live surgical demonstration on laptop. Further, a majority of the participants did not like the idea of using headphones which implies that almost a slightly lesser proportion of the participants liked the idea of using headphones. It needs to be noted that if laptops are used, then headphones are a necessity for better clarity of audio and interactive conversation during Video Conferencing. This inhibition among few participants to embrace new technology may be due to lack of awareness. Considering this in conjunction with their medical studies, medical graduation and medical practice, it is very unlikely that they would have been exposed to latest technologies to support their medical education or continuous updation of medical knowledge (as done in such Video Conferencing programmes). This is the reason why their responses to acceptance of latest technology when observed through two different questions do not agree well. Consequently, there would be a necessity to introduce these and other medical professionals/doctors to latest technologies that can aid medical education or continuous updation of medical knowledge. But the identification of solutions to issues regarding where and how and when the medical professionals/doctors will be able to acquire knowledge/awareness of latest technologies (which will be constantly evolving with time, also associated with a learning curve for each new/evolving technology) conflicting with their hectic medical service in a heavily populated country like India will be difficult. Consequently, the absence of learning curve in video conferencing is best suited to a medical environment like in India. Analysis of the responses so far studied indicate that technical quality of the video conferencing equipment and facilities alone needed some concentration regarding better expected efficiencies while dealing with medical subjects which are higher compared to conventional subjects for video conferencing.

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Results so far studied indicate that technical quality of the video conferencing equipment and facilities alone need some concentration regarding better expected efficiencies. Technical quality aspects like video clarity, display resolution, ambient lighting, focused lighting, audio clarity, and video-audio synchronization should meet high quality expectations when dealing with medical subjects.

Limitations of the Video Conferencing Programme


Multiple Point Video Conferencing facility was not provided (only Two-way Video Conferencing was provided). Multiple Point Video Conferencing facility could have saved travel time as participants had to travel to a centralized location. Recordings of the programme were not available for participants for revision of the medical knowledge. The limitations observed are very minor compared to the successful fulfillment of the objective of the programme and hence may be considered insignificant.

Conclusion
The objective of this research work to study and analyse Video Conferencing based model for medical knowledge updation in a highly populous country like India, where the number of medical practitioner/doctors is low compared the actual population thereby resulting in tremendous stress faced by medical practitioner/doctors in updating their knowledge continuously in pace with the ever changing disease dynamics/evolution and their consciously refining treatment methods. This research work has fulfilled this objective and the resultant analysis has also pointed directions for evolution of a generic model for using Video Conferencing Technology for medical knowledge updation. Similar situations are present in many of the developing nations of the world and the generic model that has evolved out in this research work will be able to fulfil the medical knowledge updation needs without much stress on incorporation of latest technology, infrastructure and the costs associated with it and the stress of the learning curve experienced by the medical practitioners/doctors in acquainting with the ever changing latest technology.

Acknowledgement
The Authors thank the Directors and Officials of Ortho One Hospital, Coimbatore for their approval and assistance rendered to conduct this research work; Mr.Sujith Lokaraj and Mr.Godson Joshua, Video Editors, Visual Motion Freeze, Coimbatore for editing the recordings of the Video Conferencing programme and Mr.Anand, Managing Director, Video Line, Coimbatore and his team for sharing technical knowledge of the conducted Video Conferencing programme. Ms.Kenstina Sharon Nigli is thanked for her assistance in this research work. The contribution of Surgeons, Participants, Technical experts, Service providers and others to this Research Work is hereby acknowledged.

References
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International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2 Annexure Table1. Attributes used in design of Questionnaire
Attributes 1. Avenues Improvement Questions for 1. Do you think the program has reached to its full potential? 2. Were you satisfied with the overall use of the Video Conferencing technology used in this program? 3. Do you want the Organisers to continue using Video Conferencing for other related courses? 4. Would you like to start using Video Conferencing technology for obtaining advanced/new surgery techniques in your place of surgery? 5. Would you like to take this technology to rural India? 6. Do Doctors need to update their knowledge base with Video Conferencing and related Technologies? 1. Would you think it will be better to access Video Conferencing on Internet with suitable login and password? 2. Did the program help you in learning new skills? 3. Was your learning easy through Videoconferencing? 4. Will this course help you to improve applications of best practices taught here? 5. Has the Video Conferencing Technology facilitates Self- Learning? 6. Did the program increase your awareness of new surgery techniques? 7. Did the program introduce you any new medical equipment used in surgery?

2.Learning Process

3.Video Conference 1. Were you aware of the Software and Hardware specifications used in this Video Conference? Technical Awareness 1. Is the program adequately detailed by the presenter? 4. Presentation 2. Was the surgical equipment introduced to audience? 3. Was Clinical history of the patient provided? 4. Did Camera view supported surgeons description? 5. Would you want to get recorded version (with suitable mixing) of the live video surgery for use as educational material later? 5.Technical Quality 1. Clarity (with no blurring) 2. Resolution (with crisp and sharp video) of Presentation. 3. Ambient Lighting in Surgery Venue 4. Focused Lighting on Point of Surgery 5. Appropriate level of camera zooming 6. Audio Quality (Less or No Noise) 7. Synchronization of Audio and Video (without Time Lag) 8. Did the Video stream continuously? 9. If No, was there brief time of pause with video buffering? 10. Were there any errors involved in Video Conferencing? Acceptance of New 1. Will it be better to view the live surgery on Laptop? 2. Will it be better to hear via Headphones? Technology
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Table2. Questionnaire Response


Averag e% (Categ ory Wise)

Category

ITEMS

YES %

NO % 20.00 0.00 0.00 2.90

Do you think the program has reached to its full potential? Were you satisfied with the overall use of the Video Conferencing technology used in this program? Do you want the Organisers to continue using Video Conferencing for other related courses? Would you like to start using Video Conferencing technology for obtaining advanced/new surgery techniques in your place of surgery? Would you like to take this technology to rural India? Do Doctors need to update their knowledge base with Video Conferencing and related Technologies? 2.Learnin Would you think it will be better to access Video g Process Conferencing on Internet with suitable login and password? Did the program help you in learning new skills? Was your learning easy through Video conferencing? Will this course help you to improve applications of best practices taught here? Has the Video Conferencing Technology facilitates Self-Learning? Did the program increase your awareness of new surgery techniques? Did the program introduce you any new medical equipment used in surgery? 1.Avenue s for Improve ment 3.Video Conferen cing Technical Awarenes s 4. Presentat ion Were you aware of the Software and Hardware specifications used in this Video Conference?

80.00 100.00 100.00 97.10

88.60 97.10 82.90

11.40 2.90 17.10 93.80

97.10 100.00 100.00 91.40 97.10 80.00

2.90 0.00 0.00 8.60 2.90 20.00 92.64

20.00

80.00

20

Is the program adequately detailed by the presenter? Was the Surgical equipment introduced to audience? Was Clinical history of the patient provided? Did Camera view supported surgeons description?
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91.40 77.10 100.00 91.40

8.60 22.90 0.00 8.60


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Would you want to get recorded version (with suitable mixing) of the live video surgery for use as educational material later? Were there any errors involved in Video Conferencing? Video clarity (with no blurring) Day 1 Video clarity (with no blurring) Day 2 Resolution (with crisp and sharp video) Day 1 Resolution (with crisp and sharp video) Day 2 Ambient lighting in surgery venue Day 1 Ambient lighting in surgery venue Day 2 Focused lighting on point of surgery Day 1 Focused lighting on point of surgery Day 2 Appropriate level of camera zooming Day 1 Appropriate level of camera zooming Day 2 Audio quality (Less or No noise) Day 1 Audio quality (Less or No noise) Day 2 Synchronization of audio and video (without time lag) Day 1 Synchronization of audio and video (without time lag) Day 2 Did the video stream continuously? If No, was there brief time of pause with video buffering? Will it be better to view the live surgery on Laptop? Will it be better to hear via Headphones? 94.30 5.70 90.84

5.Technic al Quality of Presentat ion

8.60 88.60 97.10 88.60 97.10 80.00 91.40 65.70 82.90 82.90 85.70 88.60 94.30 88.60 94.30 91.40 8.60 48.60 42.90

91.40 2.90 0.00 2.90 0.00 11.40 5.70 25.70 14.30 8.60 11.40 2.90 2.90 2.90 2.90 8.60 0.00 51.40 57.10 88.04

Acceptan ce of New Technolo gy

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Toward the Development of Management Information System for World Bank Funded: October 8th, 2005 Earth Quake Disability Project in Pakistan
Moaz Masood Butt (Pakistan) Bahira University Islamabad, Pakistan Engr. Saad Masood Butt (Pakistan) BS (Software Engineering) degree from Bahria University Islamabad. PhD degree (department of Computer and Information Sciences) at University Technology PETRONAS, Malaysia. Muhammad Usman (Pakistan) Doctorate BA - Global Business and Leadership (Continued), M.Sc (Software Engineering), B.Sc (Computer Science)

Abstract.
In the computer world, Management Information System (MIS) is one of the tools considers to improve the performance of organizations and people. The information generates from MIS are generally considered as an essential component of prudent and reasonable business decisions. This paper presents the effective use of MIS supported by a case study on Earth Quake Disability Project 2005. The project was funded WORLD BANK (WB) and was accomplished by PPAF (Pakistan Poverty Alleviation Fund). PPAF signed a US $ 5 million Earthquake Disability Project with the World Bank with the aim to facilitate Person with Disabilities (PWDs) which are more than 9,000 living in 34 union councils of Azad Jammu and Kashmir (AJK) and the North-West Frontier Province (NWFP) ensuring better mobility, improved physical and mental health and increased participation in social and economic life. The project contains a vast variety of data of Earth Quake affected areas which includes health facility, an infrastructure facility, water resources, mode of transportation and education ratio segregated by gender wise and age wise. All this data was punched in MIS and later was analyzed according to project indicators. The major component of this project includes capacity building of service providers for disability rehabilitation. The only way to achieve this aim is to provide training mental health service providers and providing support to community-based organizations for proposal writing. The project was implemented through PPAF partner organization. Such type of projects can also be implemented in Malaysia to get new facts and figures about different aspects of society that includes health, education, living conditions and source of water, income etc. of any area. Keywords: Management Information System (MIS), Azad Jammu and Kashmir (AJK), North-West Frontier Province (NWFP), Earth Quake Disability Project, WORLD BANK (WB), Pakistan Poverty Alleviation Fund (PPAF).

1. Introduction
A Management Information System (MIS) is a system or process that provides the information necessary to manage by the organization effectively. It is now commonly used computer application needed by organization to manage information efficiently and effectively [1]. The three primary resources of MIS involve: people, technology, and information. These computer applications are distinct from other information systems in that they are used to analyse operational activities in the organization [2].Today MIS is now commonly used computer application in Development Sectors in order to conduct survey and extract use full information needed by organization. One of development sector Organization named PPAF started an Earthquake Disability Project with the help of World Bank
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financial assistance in earthquake affected areas of AJK and NWFP with the objective to improve the quality of life of people with functional limitations and their families, by ensuring better mobility, improved physical and mental health, increased participation in social and economic life, and strengthened empowerment. In this paper author tried to show effective use of MIS that contains real data survey data of earthquake affected areas. The rest of paper structure is as follows: Section 2 describes Earthquake Disability Project. In Section 3 author discuss about the Design of MIS based on Questionnaire. Section 4 describes the structure of Questionnaire. Section5 highlights the Sample Survey in earthquake areas. Section 6explains the Main Finding of this project and section 7 provides conclusion.

2. EARTH QUAKE DISABILITY PROJECT


The most devastating earthquake that hit the northern areas of Pakistan on October 8, 2005 had left over 80, 000 dead, half a million homeless and innumerable without livelihoods. Beside these losses it is believed that many people who survived the earthquake had developed physical and mental functional limitations. The initially collected data on the damage assessment of housing due to earthquake had also indicated the presence of persons with functional limitation (PWFL) in the earthquake-affected areas AJK and NWFP regions. In response to the situation, PPAF started an Earthquake Disability Project with the help of World Bank financial assistance in earthquake affected areas. The post-traumatic stress left PWFL with grief and depression that requires counselling and support from specialized service providers and local communities. The types of functional limitations that were expected among the community included physical, mental or sensory, including visual, hearing and speech or in general any restriction or lack (resulting from impairment) of ability to perform an activity in the manner or within the range considered normal for a human beings. The specific objective of the project is to improve the quality of life of people with functional limitations and their families in earthquake affected area of AJK and NWFP, by ensuring better mobility, improved physical and mental health, increased participation in social and economic life, and strengthened empowerment. PPAF signed a US $ 5 million Earthquake Disability Project with the World Bank. The aims of this project is to facilitate Person With Disabilities (PWDs) which are more than 9,000 living in 34 union councils of AJK and NWFP by ensuring better mobility, improved physical and mental health and increased participation in social and economic life. The major component of this project includes capacity building of service providers for disability rehabilitation. The only way to achieve this aim is to provide training mental health service providers and providing support to community-based organizations for proposal writing. The project was implemented through PPAF partner organization [3].

3. DESIGN OF MIS BASED ON QUESTIONNAIRE


As development of computer application or software includes gathering information about tasks, work practices and design options for users .Usually requirements gathering takes two forms. Interviews and participatory design (PD) practices of software engineering gathers rich information about the task and the domain but require face-to-face communication between the software engineers and the users [4]. Adopting the same practice of software requirement gathering, WB design and developed a very unique and comprehensive questionnaire for Earth Quake Disability Project [5]. The survey uses the questionnaire for capturing the information of persons with functional limitation and it covers a functional limitation of household members in the domains of vision, hearing, walking, lifting, remembering or concentrating, learning, self-care and communication. It also investigates the participation and barriers of persons having functional limitations in education, sports, job,
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community organizations, family decision making, community decision making and in obtaining health care services beside their needs for assistive devices. Finally, it examines the cost of disability by exploring the family member assistance needed by persons having functional limitation with basic activities like dressing, washing, eating or moving about and then attempts to determine the economic cost required for such assistance After the requirement gathering phase the software development get started with some measurement that is carried out. The measurement included the measurement of project completion time, cost, software specification, and software quality. The development of software must be completed within time schedule, cost under budged, and meet the specification [6]. Keeping in view the software development measurement, questionnaire later implemented in the shape of MIS and deployed in the field.

4. Structure of Questionnaire
The questionnaire developed by the World Bank was used in the data collection of (Person with Functional Limitation) PWFL from each household of selected villages which included the following sections. 4.1 Section 0: Identification of Respondents The main purpose of this section is to identify the geography (Global Positioning Coordinates and Altitude); various ground facts (hamlet, patwari circle, post office, district, union council, revenue village, police station etc.); and the head of the household to be interviewed. It also captures details necessary to identify the interviewer and supervisor along with the date and time of interview. 4.2 Section 1: Information Related to Household Members The objective of this section is to capture extensive information about socio-economic aspects of Households members and included following areas: Demographic composition of the household members Educational status of household members Work Status of household members 4.3 Section 2: Information Related to Functional Limitation The primary aim of this section is to take information about functional limitation of household members in the domains of vision, hearing, walking, lifting, remembering or concentrating, learning, self care and communication. The responses are scaled from no difficulty to unable to do and include some difficulty and a lot of difficulty as an intermediate response giving a better option to pick persons with functional limitations. 4.4 Section 3: Household Characteristics The main reason for this section is to get various characteristics of households in the project area like dwelling ownership, state of dwelling before and after earthquake, number of rooms in the dwelling, the main source of drinking water, toilet facilities, agricultural land ownership, status of remittance and religion, language and cast of head of household. 4.5 Section 4: Health infrastructure The key objective of this section is to get information about the heath infrastructure / facilities available to household in the project area. The main focus in this section was on the
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type of health facilities available to household, the time, distance and mode of transportation available to reach the nearest such health facility. Beside this it also investigates the presence of rehabilitation services available in these health facilities and the actions taken by the head of the households to meet the financial cost triggered by the earthquake. 4.6 Section 5: Participation & Barriers This section captures data needed to determine the participation and barriers faced by persons having functional limitation. It covers the participation in education, sports, job, community organizations, family decision making and community decision making. It also covers the participation of this person in their general day to day life routines like visiting, mosque, post office, bank, school etc. Further the questionnaire also examines the difficulties faced by such persons in obtaining health care services and their needs for assistive devices. It also investigates various trainings needed by persons having functional limitation. 4.7 Section 6: Cost of Disability This section captures information needed to determine the cost of disability by investigating the family member assistance needed by persons having functional limitation with basic activities like dressing, washing, eating or moving about. It also attempts to determine the economic cost required for assistance of persons with functional disability.

5. Sample Survey in earthquake areas


Under this project a sample survey was conducted to identify and assess the needs of persons with functional limitation (PWFL) with the help of PPAF partner organizations (PO) namely; National Rural Support Program (NRSP), Sarhad Rural Support Program (SRSP) and the Sungi Development Foundation (SDF) in the selected villages of 22 earthquakes affected Union Councils of AJK and NWFP (refer to Table 5-1 for details).

Table 5-1: Details of Survey Area


NWFP District: Mansehra PO: SRSP 1.Bhogarmong 2.Jabbar Devli 3.Gariat 4.Hilkot 5.Icherian 6.Jabori 7.Sacha Kalan 8.Satbani 9.Sum EllahiMang District: Abbottabad PO: SDF 10.Boi 11.Dalola 12.Kukmang AJK District: Bagh PO: NRSP 13.Bani Passari 14.Chanjel 15.Hill Surang 16.Kala Moola 17.Sanghal 18.Sawanj 19.Topi

District: Rawalakot PO: NRSP 20.Bangoi 21.Dhamni 22.Dhootan

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In this survey a total of 19, 508 households (8,988 household in AJK and 10,520 households in NWFP) were reached for capturing socioeconomic data on household and identification of persons having functional limitations in randomly selected villages of earth quake affected union councils covering 15.8% of the total population (17.2% of the total population in AJK and 14.8% of the total population in NWFP). The details of total household and population in the survey area and covered household and population in the sample with respect to AJK and NWFP are given in Table 5-2 and Figure 5-3.

Table 5-2: Overall Sample Composition


Description Household AJK NWFP Total Population AJK NWFP Total Total 39,750 57,889 97,639 Sample 8,988 10,520 19,508 Covered % 22.6% 18.2% 20.0% 17.2% 14.8% 15.8%

301,940 52,066 397,944 58,792 699,884 110,858

Figure 5-3: Household and Population Coverage


Survey Database A database in Microsoft Access was developed by PPAF which served as the repository for holding questions before the execution of household census. Various data verification measures were placed at database field and record level which helped the data entry operator and supervisor to detect and locate the error. The database was tested thoroughly before it was handed over to survey staff. 5.2 Data Cleaning Once the data have been collected from the field and entered into database, a comprehensive cleaning of data was performed to ensure the accuracy of data. The procedure adopted for data cleaning included checking for logic and consistency in the answers of the respondents
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and eliminating outliers in the data based on the mean and standard deviation. This cleaned data are utilized in analyzing the prevalence of functional limitation in various domains like vision, hearing, walking, lifting, remembering or concentrating, learning, self-care and communication and the difficulties faced by such persons in education, sports, health, job and decision making.

6. Main Findings of Earthquake Disability Project


The major finding of this project is as follows:6.1 Household Characteristics In the sampled villages the most prevalent religion practiced is Islam, the most commonly spoken languages are Hindko, Pahari and Gojri and the most dominant casts are Abbasi, Gugar and Awan. The majority of population in sampled villages has been residing there for more than 20 years and also owns the mortgage free agricultural land. Of the total household in selected villages (23.1%) own agriculture land between 2 to 5 kanels. It is found that in general household in AJK have higher agriculture land holdings than household in NWFP 6.2 Household Dwellings In overall sample, 90.5% of head of household own their dwelling units. It is found that after earthquake, mud houses have reduced from 68.8% to 21.9% and cemented and semi cemented houses have increased from 31.2% to 73.2% indicating that the structures of houses have been significantly improved. Furthermore it is evaluated that the dwellings in AJK are much more commodious than those in NWFP as these have more number of rooms. Moreover, 66.7% of dwellings have piped water facility and the rest use surface water, public tap water and open public well water. Similarly, 37.1% of dwellings have no drainage /toilet facilities; 42.7% use owned pit toilet/latrine system and 9.4% use own flush toilet. 6.3 Household Remittance Status It is observed that 3.3% of total households are receiving remittance, 2.2% are giving remittance and 2.4% are both receiving as well as giving remittance. Further, based on sample data it is observed that 7.8% of the household in the sample villages are involved in the practice of remittance and this practice is little higher in AJK than in NWFP. 6.4 Household Health Facilities It is found that in overall sample, 58.7% of households have no access to any type of health facilities and access to health facility is a major problem in NWFP where 77.0% of household reported no health facility as compared to 36.3% of household in AJK. Major health facilities present in surveyed villages are Government Dispensaries (16.1%), BHU (8.2%), Government Hospital (5.9%) and Private Clinics Run by non MBBS doctor (4.9%). The main actions taken by the head of households as shown in figure 6-1, in order to meet the financial cost triggered by earth quake are: Received support from NGO (74.3%) Government assistance (54.3%)
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Borrowed / took support from family and friends (21.9%) Spent from buffer savings (20.2%) Reduced consumption (18.0%) Increased work (16.4%)

18.0% 20.2% %

Figure 6-1: Household Health Facilities


6.5 Household Demography The household in sample villages have a total population of 119,865 living in 19,508 household out of which 46.79% are females and 53.21% are males of which 50.7% are females and 49.3% are males. Of the female population 46.5% are children, 47.7% are adults and the rest (5.8%) are elders. Similarly, of the male population 47.1% are children, 49.1% are adults and remaining 3.7% are elders. The average household size in overall sample is approximately 5.7 people, with 3 adults per family. 6.6 Household Literacy & Work Status It is observed that in overall sample 37.6% have no education or illiterate out of which 22.2% are females and 15.3% are females. This difference in the proportion of male and female is also statistically significant indicating that illiteracy is more common in females than in males. It is further observed that 30.1% have education below and equal to primary, 14.0% have education between primary and middle, 12.0% have education between middle and matric, 3.8% have education between matric and intermediate and only 2.5% have the education level of graduate and above. It is further describe in figure 6-2.

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2.5% 3.8%

Figure 6-2: Household Literacy & Work Status 7. Conclusion:


Management Information System is now a mandatory application for organizations. Its practical use can be understood by the case study on World Bank Earthquake Disability Project. Data from the carpet survey was gathered and was punched in MIS. Later that data was analysed according to project indicators. However the need of getting requirements and development of MIS still requests good effort in order to meet project indicators and requirements of organization.

8. Future Work
Such modules based projects can be implemented in Malaysia in order to come to up with latest facts and figures. This will help to make any strategies to improve infrastructures and living standards of people. In addition to the work did from the stage of get requirements and developing MIS, it was found that data entry and cleaning takes extensive time, In order to overcome this phase of MIS, there needs to develop some intelligent software that can read the Questionnaire and enter data in MIS automatically in order to reduce time and high light mistake.

9. References
Management Information System http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/mis.pdf OBrien, J (1999). Management Information Systems Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill. ISBN 0071123733. http://www.ppaf.org.pk/news_detail.aspx?newsid=78 Moore, J.M.; Shipman, F.M., III, A comparison of questionnaire-based and GUI-based requirements gathering, The Fifteenth IEEE International Conference on Automated Software Engineering, 2000. Mont, D. (March 2007). Measuring Disability Prevalence. Social Protection, The World bank.

Kusumasari, T.F.; Supriana, I.; Surendro, K.; Sastramihardja, H, Collaboration model of software development , International Conference on Electrical Engineering and Informatics (ICEEI), 2011.

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Development and Analysis of Transportation model in Public Distribution System (PDS) for Warangal district
S. Srinivas (India) Research Scholar, Mechanical Engineering Dept. NIT, Warangal506004 N. Selvaraj (India) Professor, Mechanical Engineering Dept. NIT, Warangal-506004 C.S.P.Rao (India) Professor, Mechanical Engineering Dept. NIT, Warangal-506004

Abstract
The main objective of this paper is to discuss Vehicle Routing Problem (VRP) for Public Distribution System (PDS) including multi-depots, dispatching quantity, routes arrangement and time-window constraints in order to reduce the delivering cost. The developed algorithm first employs the heuristic search for feasible solutions based on the constraints of both the time-window and loading capacity in the routing problem keeping the concept of nearestneighbor. Then the Best Case search algorithm is developed to select the best solutions simultaneously to gain a optimal solution in the problem domain. Keywords-Public Distribution System(PDS),Vehicle Routing Problem, Nearest Neighbour Algorithm,

I. Introduction
The most popular scheme of Government of India to improve the lives of its citizens is the Public Distribution System(PDS).Essential Commodities like rice, wheat, rice, sugar, oil etc will be supplied at subsidized rates to its population through PDS. Union as well as state governments spend thousands of crores of rupees through different schemes to improve the lives of common men in the country. Even though there is an improvement in the lives of citizens after independence, the magnitude of improvement is not matching the funds spent, due to with diverse reasons. It can be avoided or minimized by proper delivery mechanism. Public Distribution System (PDS) is a very important scheme for providing food security to the poor and needy. The two important schemes of Government of India paddy procurement at Minimum Support Price (MSP) and Public Distribution System (PDS) [1] cover the whole food grain supply chain in the Country. The Public Distribution System (PDS) in India evolved as a system of management of scarcity and for distribution of food grains at affordable prices. PDS can be distinguished from private distribution in terms of control exercised by public authority and the motive being social welfare predominantly in contrast to private gain. Broadly the system includes all the agencies that are involved from procurement stage to the final delivery of goods to the consumer. The agency that is involved in the process of procurement, storage and distribution is Food Corporation of India(FCI). Civil Supplies Department(CSD) and Civil Supplies Corporation (CSC) and Fair Price Shops(FPS) are the agencies constituted in provision of PDS. The FPSs are the last link in this process, which are mostly owned by private individuals. The network of PDS Supply chain is shown in figure 1. Hence, the most
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important aspect that distinguishes PDS is the involvement of government agencies and government control over the entire distribution system. The transportation starts from the delivering rice from FCI owned godowns to Mandal Level Stock Point(MLSP) in the first stage and again from MLSP to Fair Price Shop(FPS) in second stage as detailed in Figure-2.
Producers Warehouse Warehouse FPS Consumers s

Producers

Warehouse

Warehouse

FPS

Consumers

Network of PDS Supply Chain

Producers
Procurement from Producers by Central Government Agencies

Warehouse
Warchouse in States owned by central agencies

Warehouse
Warchouses in States owned by State agencies

FPS
Distribution through Fair Price Shops

Consumers
Different target groups based on State policy Key Activities of PDS Supply Chain

Figure 1: Flow of Material in various stages of PDS

Working of System
The Civil Supplies Department (CSD) of district allocate the Quantity of goods to Fair Price Shops(FPS) as per the no.of card holders and their eligibilities attached to FPS. The Civil Supplies Corporation (CSC) supplies the goods to FPS through Mandal Level Stock Points (MLSP) after receipt of Release order issued by CSD at respective MLSPS and advance payment by way of DD from FPS. The FPS distributes the goods to cardholders and pays advance amounts to CSC by DD for release of stock for next month. There are 18 Mandal level stock points (MLSP) which serve the total of 51 mandals in Warangal district of Andhrapradesh State. In 51 mandals there are 2011 FPS. The monthly demand of the FPS is served between 20th-1st of every month. The demand/supply of material is periodic, MLSP received material from FCI owned godowns. There are 7 FCI owned godowns, located at different locations. These FCI owned have huge amount of buffer as procurement of the material (i.e. rice) from the millers is throughout the year in phases periodically. In the 1st Stage materials moves from FCI godowns to Mandal level stock points in the 2nd Stage materials moves from Mandal level stock point to Fair Price Shops(FPS).All mandals and MLSP are divided into five divisions due to administration.What has been explained is shown in figure 2 through schematic representation.

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Figure 2: Working of System

It is necessary to enhance the efficiency in delivery of goods from FCI godowns to all depots (FPS).Naturally delivery cost is key factor in the pricing of delivery services. To reduce this cost research has tended to focus on the Vehicle Routing Problem (VRP) as a key factor in delivery efficiency. The VRP is complex Non-deterministic Polynomial(NP-hard) question As this is a large-scale problem, as things stand the best and most feasible way to deal with it is to use a heuristic searching algorithm[3]. I.1.Litreature Review The vehicle routing problem is a form of the Traveling Salesmans Problem (TSP) which has been popular since Dantzig and Ramser developed the idea in 1959. VRP has been one of the basic models in network optimization problems. Researchers such as Su and Weng, Chang et al., etc. have surveyed various meta-heuristic algorithms for solving TSP [6][7]. The MultiDepot Vehicle with a Time Window is one of the VRP extensions [4][5]. The objective of this is usually to solve the VRP for a large region. The region is so widely spread that the delivering cost is always tremendously high if only a single DC is in-charge of all deliveries. In this work we have a scenario in which there are several middle level DCs known as MLSP which are in-charge of delivering all the demands of the depots (FPS), all of which are required to be completed within given the Time Window. The VRP is the Multi-Depot Vehicle Routing Problem with Time Window (MDVRPTW) problem. I.2.Problem Statement The objective of the research is usually to solve the VRP for a large region and apply the same for Public Distribution System. The region is so widely spread that the delivering cost is
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almost always tremendously high if only a single Distribution Centre (DC) is in charge of all deliveries. It has been suggested that the best way to meet this problem is to set up district DCs which enable the reduction of shipping cost. In this work, we have a scenario in which PDS has set up several DCs(FCI owned godowns and MLSP) which are in charge of delivering all of the shipping demands of all points(FPS) , all of which are required to be completed within the time window of 10 days (i.e. every month 20th -30th). The VRP is the Multi-Depot Vehicle Routing Problem with Time Window(MDVRPTW) problem. This work proposes a hybrid heuristic approach to solve the MDVRPTW problem. It is proposed to develop the transportation model for both the stages i.e model for movement from FCI godowns to MLSP and from MLSP to depots(FPS). In the stage -1 Least cost algorithm[2] is applied to assign nearest DCs to FCI godowns. In the stage -2 the heuristic method is applied which first employs the nearest-neighbor searching algorithm, starting from the initial DC, and then assigns the nearest depots to the DC [8][9][10] . The initial solution plan is then generated using this algorithm. Later this initial solution plan provided as input to best case selection algorithm to minimize the transportation cost. This work addresses an empirical multi-depot vehicle routing case for a fixed-route trucking carrier. In this case, the characteristics of vehicle routing problems, including multi-depots, dispatching quantity, loading capacity, routes arrangement and time-window constraints, are considered in order to reduce the delivering cost. 2. Objectives The primary objectives of this work are summarized as follows: 1. The research conducts a literature survey for the methodology used in route planning and network analysis then serves as the foundation of network design and algorithm development. 2. By constructing and analyzing the transportation network, it is proposed to develop a search algorithm and to generate a feasible vehicle routing plan. The influencing factors are to be identified, and then the mathematical formulation of the problem is to be developed. 3. The sample data of the PDS is applied to validate the system in solving the routing problem.

3. Methodology
3.1. Assumptions and Constraints 1. DC locations, shipping demand and destination locations are known. 2. Only one type of vehicle for cargo delivery in network. All vehicles have the same loading capacity. 3. Shipping time is in proportion to the shipping distance, with no consideration of traffic conditions. 4. All service vehicles have the same maintenance status. No breakdown or maintenance issues are considered in the routing process. The constraints of the problem include: 1. No repeat dispatching, a vehicle can only serve one route at a time. 2. All vehicles will complete all cargo shipments in compliance with the hard time-window constraint.

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3. The shipping demand of a depot cannot be divided. It should be delivered by the same vehicle, unless the shipping demand of the depot exceeds the loading capacity of a vehicle. 4. The time-window constraint is known. The driver will be given the time limitation so that over-time driving can be eliminated. 5. The types and sizes of vehicles are known. This work does not consider driving with additional tail containers. 6. The cargo loading cannot exceed the vehicle loading capacity at each delivery 3.2 Mathematical Model Formation The objective is to minimize the overall transportation cost and total distance travelled [9]. The vehicles cannot deliver over the maximum loading capacity and working hours STEP 1: Calculate the overall demand. Demand of one MLSP is the summation of demands of all the mandals under that MLSP Demand of one Mandal is the summation of demands of all FPS in that mandal. Demand of one FPS is the summation of demands of all BPL cards of that shop. STEP 2: Define objective function. The objective of this research is to minimize the shipping costs, including loading/unloading costs, fixed costs and variable costs of vehicles, while the vehicles cannot deliver over the maximum loading capacity and working hours. The cost formulation and its relevant notations are denoted as following: N L K n l k T Q cijl ai Si tij (i,j) bikl Set of all Depots, N= {1,2,3.n} Set of all DCs, L={1,2,3l} Set of all vehicles, K = {1,2,3k} Number of depots Number of DCs Number of vehicles The maximum working hours for vehicles The maximum loading capacity of vehicles The shipping cost starting from DC, Depot i to Depot j The shipping demand of Depot i The service time The delivery time from depot i to j Indicates the route from Depot i to j Starting from DC 1, the time needed for vehicle to deliver to Depot j = 1 DC l, the vehicle k delivers cargo from i to j = 0, Otherwise

The objective function: Cost = Variable cost + fixed cost In order to achieve an optimal plan, the objective function is minimized. Cost =
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Subject to: =1 <= 1 j=1,,n (2) (3) (4) (5)

K = 1,.k <= Q K = 1,..k

= 0 or 1, i=0,n ; j=0,,n ; K= 1,2,..,k ; L=1,2,l

Objective function (1) includes variable cost and fixed cost ( ). In order to achieve an optimal plan, the objective function is minimized. Constraint (2) states that the depot is the starting point for all shipments, which can be served only by one vehicle at one time. If the shipping demand exceeds the vehicle capacity, it must be delivered by another vehicle. Constraint (3) states that one vehicle can only cover a route (i,j) one time at most. Formula (4) is the constraint that the loading of each vehicle ( cannot exceed the loading capacity (Q). represent the fixed cost for vehicle which includes salary for driver , road tax, misc. expenditure, interest on cost of vehicle as 4,00,000/- @12% per annum per month.

3.3 The Heuristic Algorithms In order to solve this multi-depot vehicle routing problem with time-window, a hybrid heuristic algorithm has been developed in which the solving process is divided into three stages as shown in Figure 3. Based on the distances to the DCs, the first stage uses the cluster-first and route-second principle to assign depots to specific DCs. In the second stage, the nearest-neighbor searching algorithm is used to generate an initial routing plan which assigns the vehicles and configures the routes used to deliver the cargo [9]. In final stage, a Best case selection algorithm is used to fine tune the initial plan. The development of the heuristic algorithms used in each of the three stages is further discussed below. 3.3.1 The Depot Assignment Thecluster-first and route-second method is used to calculate all distances from depots to a DC. Then, the nearest depots are assigned to be served by the DC. This process does not stop until all the depots are assigned to their nearest DCs. Therefore the multi-depot routing problem can be simplified into several independent single-depot vehicle routing problems

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Figure 3: The Hybrid heuristic algorithms

During the depot assignment task, a data processing task needs to be implemented to determine if any possible direct shipment is possible based on the vehicles loading capacity: if the shipping demand of one depot exceeds 80% of the vehicles maximum load, this vehicle is used to directly deliver the cargo to its destination DC Figure 4: The Cluster-first and route-second method.

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Figure 4 shows the process of this algorithm. First, the distance is calculated from depots to DCs. Depot 1 is closer to DC 1 than Depot 2 to DC 1,therefore Depot 1 is assigned to DC 1. The process continues until the completion of all searches. 3.3.2 The Nearest Neighbor Searching Algorithm As explained in the previous section, in stage1 depots are assigned to a DC. This means that, the multi-depot vehicle routing problems have been simplified into several single-depot vehicle routing problems. In formulation of objective function the multi-depot delivering cost of is transformed into the cost of . The formulation of the multi-depot problem is revised as shown in the following. NNcost= Subject to: <= Q K = 1,..k (7) (8) + (6)

= 0 or 1, i=0,n ; j=0,,n ; K= 1,2,..,k ;

The new objective function (6) contains the variable cost, and the fixed cost, .After the depot assignment process, the nearest-neighbor searching algorithm is used to minimize the delivery cost, and subsequently generate the initial routing plan. The algorithm arranges the nearest depot from the DC into the delivery route at the first priority, i.e. the depot with the smallest NNcostis figured into the route first. The searching process contains the following six steps, also shown in Figure 5. 1. mber all possible delivering nodes sequentially starting from 0, and calculate the corresponding cost NN for each node. 2. Starting from a DC, assign the depot with the smallest cost NN as the first stop in the delivery route. 3. Delete assigned depot, and search for the next stopping node with the minimum cost in the rest of the nodes. The searching process continues while complying with theconstraints and vehicle loading capacity. 4. Repeat Step 3 to build a new vehicle route from the DC until all the shipping demand Of the DC are met. 5. Step 4 does not begin until there is no depot left for the DC. 6. Repeat Steps 2 to 5 to build a new route for another DC. The process will not terminate until all shipping demands at DCs are delivered.

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Figure 5 : The Nearest Neighbor Algorithm

3.3.3 Best Case Selection Algorithm After the initial solution is generated, a Best Case Selection algorithm is developed to implement the fine tuning task so as to get an improved routing plan. In this algorithm all point on one route are arranged and all possible routes are generated for the initial combination. Later distances are calculated for each route and best case i.e. route with least distance is selected. The authors are preferred this algorithm because of limitation of truck capacity to meet the demand of supply points to the extent of maximum 3-4 points in each truck in initial solution .

4. Result And Discussion


4.1 Stage 1 solution By using Least Cost Method we first get which Mandal Level Service Point (MLSP) is to be served by which FCI owned godowns. Later the same is done by using CPLEX Solver 12.4. In both the cases least distance travelled is calculated.

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4.1.1. Result generated by program by using Least Cost method. Table 1: Showing allocation of demand of MLSP Result using programme
1 1 2 3 4 5 6 7 6 14 14 18 51 94 5 2 11 5 5 9 57 88 3 3 22 37 37 41 22 121 30 4 35 29 29 33 46 93 27 5 52 67 67 71 8 141 60 6 74 76 76 80 55 94 76 7 83 98 98 102 40 160 91 8 95 86 86 76 138 5 87 9 58 53 53 57 72 47 51 10 93 88 88 92 107 35 85 11 74 68 68 72 107 24 66 12 58 53 53 57 102 90 59 13 40 44 44 48 84 103 38 14 65 59 59 63 109 128 63 15 117 112 112 116 161 150 115 16 53 60 60 64 87 116 58 17 45 36 36 26 89 53 37 18 66 57 57 47 110 52 58 883400 85000 100000 200000 300000 100000 25000

16222

14334

5807

11964

7312

6423

8460

8902

3058

6105

7154

3722

10947

4896

5869

950

10972

3054

Quantity allocation
Table 2: Showing individual allocation and equivalent truck load of each MLSP
MLSP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 FCI GODOWNS 1->5556, 7->10666 7->14334 1->5807 2->11964 5->7312 5->6423 5->8460 6->8902 6->3058 6->6105 6->7154 2->9000 1->7500 2->3000 2->5000 1->950 4->10972 4->3054 Equivalent Truck Load 28, 54 72 29 60 37 32 43 45 60 31 36 45 38 15 25 5 55 16

Distance Travelled
Table 3:Showing minimum distance travelled from FCI godowns to fulfill demand of allotted MLSP FCI owned Godown 1 2 4 5 6 7 Minimum distance travelled to fulfill demand of allotted MLPS 28X6+29X22+40X38+5X33 29X16+53X45+59X15+112X25 26X55+47X16 8X37+55X32+40X43 5X45+47X60+35X31+24X36 5X54+3X72 2591 7810 2182 3776 4994 486 =21839 km

Table 4:Minimum Trucks required at every FCI godowns


FCI owned Godown 1 2 3 4 5 6 Delivery Time using 1 truck 45 89 30 54 68 42 Delivery Time using 2 truck 24 45 15 29 36 21 Delivery Time using 3 truck 15 30 10 16 23 14 Delivery Time using 4 truck 12 23 8 14 17 11 Minimum no. of truck to fulfill demand in given time window 2 4 2 3 3 2

Assumed minimum 6days as safety period.

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Table 5: Transportation Cost Comparison by Using different no. of Trucks for moving from FCI to MLSPS
Using 1 Truck 42927 101444 38341 56214 69870 19325 328121 Comparison of Transportation Cost Using 2 Truck Using 3 Truck Using 4 Truck 56802 70677 84552 115319 129194 143069 52216 66091 79966 70089 83964 97839 83745 97620 111495 33200 47075 60950 411371 494621 577871 Using Best case 56802 143069 52216 83964 97620 33200 466871

The calculations in the above we hare made under the assumption that the fixed cost for each truck is Rs. 13,875/-. Table 6: Minimum transportation cost by using least no. of trucks within given time window (30 days)
FCI owned Godown 1 2 3 4 5 6 No. of vehicle 2 4 2 3 3 2 Fixed cost per vehicle 13875 13875 13875 13875 13875 13875 Total fixed cost (TFC) 27750 55500 27750 41625 41625 27750 Variable cost (VC) 29052 87569 24466 42339 55995 5450 Total cost = TFC+VC 56802 143069 52216 83964 97620 33200 466871

As per the above table the minimum transportation cost to move the goods from FCI godowns to MLSP is Rs 4,66,872/- only

Figure 6: Comparison of Delivery Time Using Least Cost Method

Figure 7: Comparison of Transportation Cost Using Least Cost Method

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4.1.2. Result generated by using CPLEX 12.4 Table 7: Showing allocation of demand of MLSP
Result using AIMMS CPLEX 12.4
1 1 2 3 4 5 6 7 6 14 14 18 51 94 5 2 11 5 5 9 57 88 3 3 22 37 37 41 22 121 30 4 35 29 29 33 46 93 27 5 52 67 67 71 8 141 60 6 74 76 76 80 55 94 76 7 83 98 98 102 40 160 91 8 95 86 86 76 138 5 87 9 58 53 53 57 72 47 51 10 93 88 88 92 107 35 85 11 74 68 68 72 107 24 66 12 58 53 53 57 102 90 59 13 40 44 44 48 84 103 38 14 65 59 59 63 109 128 63 15 117 112 112 116 161 150 115 16 53 60 60 64 87 116 58 17 45 36 36 26 89 53 37 18 66 57 57 47 110 52 58 883400 85000 100000 200000 300000 100000 25000

16222

14334

5807

11964

7312

6423

8460

8902

3058

6105

7154

3722

10947

4896

5869

950

10972

3054

Quantity allocation Table 8: Showing individual allocation and equivalent truck load of each MLSP

Minimum distance travelled Table 9:Showing minimum distance travelled from FCI godowns to fulfill demand of allotted MLSP
FCI owned Godown 1 2 4 5 6 7

MLSP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

FCI GODOWNS 1->161222 2->1298, 7->13036 1->5807 7->11964 5->7312 5->6423 5->8460 6->8902 6->3058 6->6105 6->7154 2->9000 1->7500 2->3000 2->5000 1->950 4->10972 4->3054

Equivalent Truck Load 81 7,65 29 60 37 32 43 45 60 31 36 45 38 15 25 5 55 16

Minimum distance travelled to fulfil demnad of alloted MLPS 81X6+22X29+40X38+5X5 3 5X7+53X45+59X15+112X 25 26X55+47X16 8X37+55X32+40X43 5X45+47X60+35X31+24X 36 3X65+27X60 2909 6105 2182 3776 4994 1815 =21781 km

*Quantity in Quintals *Truck capacity=200 Qtl

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Table 10: Minimum Trucks required at every FCI godowns
FCI owned Godown 1 2 3 4 5 6 Delivery Time using 1 truck 62 68 30 56 68 42 Delivery Time using 2 truck 32 35 15 29 36 21 Delivery Time using 3 truck 16 24 8 16 23 14 Minimum no. of truck to fulfill demand in given time window 3 3 2 3 3 2

Assumed 6 days as safety period. Table 11: Transportation Cost Comparison by Using different no. of Trucks for moving From FCI to MLSPS
1 Truck 46492 82327 38341 56214 69870 34226 2 Truck 60367 96202 52216 70089 83745 48101 Comparison of Transportation Cost 3 Truck Best Solution 74242 74242 110077 110077 66091 52216 83964 83964 97620 97620 61976 48101

The calculations in the above we have made under the assumption that the fixed cost for each truck is Rs. 13,875/-. Table 12: Minimum transportation cost by Using least no. of trucks within given time window(30 days)
FCI owned Godown 1 2 3 4 5 6 No. of vehicle 3 3 2 3 3 2 Fixed cost per vehicle 13875 13875 13875 13875 13875 13875 Total fixed cost (TFC) 41625 41625 27750 41625 41625 27750 Variable cost (VC) 32617 68452 24466 42339 55995 20351 Total cost = TFC+VC 74242 110077 52216 83964 97620 48101 466220

The minimum transportation cost to move the goods from FCI godowns to MLSP is Rs4,66,220/- only.

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Figure 8: Comparison of Delivery Time Cost Using CPLEX Solver

Figure 9: Comparison of Transportation Using CPLEX Solver

4.1.3. Result generated by using minimum quoted tender values of Warangal district. Table 13 Allocations of demands in Government provided Unit cost matrix
1 1 2 3 4 5 6 7 129 129 129 133 196 277 129 2 129 129 129 129 207 266 129 3 141 169 169 177 141 328 163 4 165 154 154 162 186 275 148 5 198 226 226 233 129 366 220 6 239 243 243 250 203 277 237 7 256 284 284 292 175 419 277 8 279 262 262 243 360 129 256 9 209 199 199 207 235 188 194 10 275 266 266 273 301 165 260 11 239 228 228 235 301 145 222 12 209 199 199 207 292 267 194 13 175 182 182 190 256 294 177 14 222 211 211 218 305 341 205 15 320 311 311 319 404 383 305 16 199 213 213 220 264 318 207 17 184 167 167 148 267 199 162 18 224 207 207 188 307 198 201 Supply 88340 8500 10000 20000 30000 10000 2500

Demand

1622

1433

580.7

1196

731.2

642.3

8460

890.2

305.8

610.5

715.4

900

750

300

500

95

1097

305.4

The transportation cost to move the goods from FCI godowns to MLSP is Rs.2164311 by taking consideration of rates paid by State government. Rates fixed by State Government upto 16 km Rs129 per MT beyond 16 km Rs1.89 per MT per km.

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Figure 10: Cost Comparison by different Methods Estimates transportation cost using Least Cost Method: Rs.4, 66,872 Estimates transportation cost using CPLEX12.4 solver: Rs.4, 66,220 Actual amount spent by Government for same quantity: Rs.21, 64,311 4.2 Stage 2 Solution Step1: The cluster first route second method is used to calculate all distances from depots to Distribution Center. By doing allocation of the different Mandals of Warangal District to various MLSP, we convert the Multi-Depot Vehicle Routing Problem into collection of separate and independent Single Depot Vehicle Routing Problem. 5.2.1 Allocation for Warangal Division
1 1 2 3 4 Demand 24 21 50 47 2652 2 16 20 29 21 3040 3 18 14 45 12 2626 4 28 32 0 28 3846 5 0 5 28 42 10126 6 8 11 34 15 3056 7 42 39 48 36 1798 8 40 36 46 33 2187 9 36 33 64 30 2341 10 5 0 32 47 11683 11 31 27 28 0 3015 12 42 47 15 38 1961 Supply 22000 10000 10000 7500

Figure 11: Showing allocations of Warangal Division This means which mandal is to be served by which mandal level stock point. We can conclude the result as MLSP1 is assigned to fulfill the demand of Mandal 1,2,5,6,10 MLSP2 is assigned to fulfill the demand of Mandal 10 MLSP3 is assigned to fulfill the demand of Mandal 7,8,12 Similarly we can conclude all the results of allocation for different Divisions.

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5.2.2 Allocation forJangaon Division
13 5 6 7 Demand 19 71 18 1917 14 37 89 0 2906 15 35 27 67 1820 16 0 58 37 3360 17 58 0 89 2092 18 12 49 43 1708 19 55 106 19 1740 20 32 76 27 1897 21 36 20 68 2512 22 12 67 45 2245 Supply 15000 6000 7500

Figure 12: Showing allocation results of Jangaon Division 5.2.3 Allocation for Mahbad Division
23 8 9 10 11 Demand 30 73 61 58 2172 24 25 39 58 0 2645 25 12 56 24 36 2798 26 0 40 34 25 3934 27 34 36 0 59 3472 28 51 25 21 49 2634 29 49 41 64 20 1995 30 22 32 51 8 2516 31 44 0 35 40 3058 Supply 10000 5000 6000 5000

Figure 13: Showing allocation results of Mahbad Division 5.2.4 Allocation for Mulugu Division
12 13 14 15 16 Demand 32 42 35 31 92 53 2395 33 63 27 0 103 26 2502 34 60 106 103 0 125 1582 35 78 62 86 137 82 1461 36 21 68 65 39 86 1368 37 72 118 116 18 137 1698 38 48 33 58 107 60 1764 39 0 46 63 60 107 2354 40 47 0 27 106 39 3215 41 23 11 18 82 42 2639 42 33 12 36 92 50 1869 43 43 89 87 18 108 912 44 78 124 121 19 142 1679 Supply 70000 80000 25000 50000 10000

Figure 14: Showing allocation results of Mulugu Division 5.2.5 Allocation for Narsampet division
45 17 18 Demand 7 27 2311 46 15 35 1916 47 21 15 2411 48 6 26 1415 49 20 0 1640 50 15 35 1693 51 0 20 2643 Supply 10000 5000

Figure 15: Showing allocation results of Narsampet Division By taking all the data for MLSP 17 i.e. detail of all FPS, name of villages, distance from MLSP and there intermediate distances. Narsampet is the MLSP 17. MLSP 17 will serve all FSP in Mandal 45, 46, 48, 50, 51.

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5.2.6 Demand at Narsampet MLSP is the summation of demands of mandals 45, 46, 48, 50, 51.
Total BPL Cards Name of the Mandal Annapurna (AAP) Rice Quota (In Qtls) Cards Anthyodaya (YAP) Rice Quota (In Qtls) Cards 1M 2M White Cards (WAP) Rice Quota (In Qtls) 5M and more Total White Cards Total 2310.46 1915.66 1414.16 1692.49 2642.21 9975

M.No

3M

NARSAMPET DIVISION

45 46 48 50 51

Chennaraopet Duggondi Khanapur Nallabelly Narsampet Total

15559 12869 9263 11395 17020 66106

50 38 37 33 39 197

5.00 3.80 3.70 3.30 3.90 20

1194 990 854 921 1349 5308

417.90 346.90 298.90 322.35 472.15 1858

1184 941 679 992 1077 4873

2975 2456 1644 2134 2647 11856

2976 2482 1853 2106 3099 12516

4723 3925 2667 3402 5559 20276

4M

2457 2037 1529 1807 3250 11080

14315 11841 8372 10441 15632 60601

1888 1565 1112 1367 2166 8097

Figure 16:Showing all particulars of Mandal under Narsampet MLSP. 5.2.7. Step2: Initial routes generated for Narsampet MLSP Truck Average Speed = 200m/s the truck loading time = 60 truck unloading time (0-25) = 20 truck unloading time (0-50) = 30 truck unloading time (0-75) = 40 truck unloading time (0-100) = 60 Total capacity of truck = 20 (in tonnes) 5.2.8. Final Results Least _distance_travelled = 1690 Total time taken = 12473 Minutes Total time taken = 208 Hours Comparison of delivery time for different truck loads
70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 0 1 2 3 4 5

Delivery time in Days

5
10 20

No.of.Trucks Figure 17: Comparison of Delivery time in days for different truck load.
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Comparison of transport costs using different capacity of trucks


100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 0 5 10 15 20

Transportation cost

Thousands

1 truck 2 truck 3 truck 4 truck

Capacity of truck Figure 18: Comparison of Transportation Cost using Different type of truc
Truck capacity 5 10 20 Fixed cost per truck 13875 13875 13875 Fuel cost 36628 25655 18950 1 truck 50503 39530 32825 2 truck 64378 53405 46700 3 truck 78253 67280 60575 4 truck 92128 81155 74450

Figure 19: Statement of Different cost for trucks Amount paid by Government is @ 6.5 per Quintal Amount of Material moved is 9978 qtls. Amount paid by Govt. per month for Narsampet MLSP = 64857. So, if we use 20 ton truck then Minimum no. of trucks required to ship the goods in given time window = 2 The Cost as per the algorithm per month = 46700 But the is no safety period Taking 3 trucks of 20 Ton capacity The Cost as per the algorithm per month = 60575

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Cost Comparasion under stageI
2500000 2000000 1500000 Government Expenditure Least Cost Method Algorithm Ciplex solvermethod 1 2 3 4

Cost comparison under stage-II at one MLSP


70000
60000 50000 40000 30000 20000 10000 0 1 2 3 As per the Alogorith result Government Expenditure

1000000
500000 0

Figure 20: Comparison of cost in stage I

Figure 21: Comparison of cost for for 1 MLSP under stage II

From the figure 20, it is known that Government expenditure for delivery of quantities per month under stage I is much more as compare to cost estimations by Algorithms developed. And fig 21 shows the cost estimation for transportation of quantities from one MLSP to retailers under that MLSP per month,the Government expenditure in Stage- II also more. Hence the expenditure can be minimized by applying the techniques in the distribution of PDS. 6. Conclusions: This research has developed a transportation model with multi depot vehicle routing planning that help engineers to solve the daily vehicle routing problems for a fixed route trucking carrier. The conclusion of this research is summarized as follows. 1. The multi-depot routing problem of the case company was formulated based on the companys current delivery network. A hybrid algorithm integrating the nearest -neighbor searching algorithm and best case search algorithm is proposed to solve the routing problem. The algorithm allows more precise estimation of loading capacity for each delivery route. Therefore, the number of vehicles used in daily delivery tasks can be effectively estimated and optimally arranged. 2. With the aid of computing technology, the time needed to generate a routing plan is significantly reduced in comparison with time needed in the manual planning. The developed system also helps to shorten the learning curve for new engineers in dealing with the routing process. As a result the overall cost is reduced and possible loss due to poor routing plans is avoided. 3. By the above research study it is observed that huge amounts spent on transportation of PDS can be minimized and significant savings can be achieved by adoption of these supply chain techniques in real life problems.

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International Journal for Management Science and Technology (IJMST) Vol. 1; Issue 2 References
Dr. Gyan Prakash IITM, Gwalior 2011 Poors Supply Chain: Indian Public Distribution System, January,7-8. Dr.NVS RAJU 2009.From Operation Research 3rd Revised Edition. New Delhi: SMS Education. Solomon, M.M., 1987, Algorithms for the vehicle routing and scheduling problems with time window constraints, Operation Research,Vol.35,No.2,pp254-265. Boldin, L.,Golden,B,Assa, A., and Ball,M,.1983 Routing and Scheduling of vehicles and crew, Computers and Operation Research ,Vol. 10,No.2, pp. 63-211 Lang, M. X., 2006, Study on the model and algorithm for multi -depot vehicle scheduling problem, Journal of Transportation Systems Engineering and Information Technology, Vol.6, No. 5, pp. 65-69. Su, C.T. and Weng, R.C.,2003,Soving TSP problems by ant Colony optimization and noising method, Commerce and Management Quarterly,Vol.4,pp 359-375. Fisher, M.L.,1995,Vehicle routing, In M.O.Ball, T.Maganti, C.Monma, and G. Nemhauser (Eds),Hand book in Operation Research and Management Science,Vol.8,pp.1-33. Hwang, H. S., 2002, An improved model for vehicle routing problem with time constraint based on genetic algorithm, Computers and Industrial Engineering, Vol. 42, pp. 361-369. Shih, W. and Kun-Ou, Y., The development of A web-based system to solve multidepot vehicle routing problem of fixed route trucks carriers. International Journal of Electronic Business Management, vol.5, No.4, pp.301-309(2007). Solomon, M. M., 1987, Algorithms for the vehicle routing and scheduling problems with time window constraints, Operations Research,Vol. 35, No. 2, pp. 254-265.

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