Tuesday, June 3, 2008

Economic order quantity

Economic order quantity is that level of inventory that minimizes the total of inventory holding cost and ordering cost.

Q = order quantity
Q * = optimal order quantity
D = annual demand quantity of the product
P = purchase cost per unit
C = fixed cost per order (not per unit, in addition to unit cost)
H = annual holding cost per unit (also known as carrying cost) (warehouse space, refrigeration, insurance, etc. usually not related to the unit cost)


The Total Cost function
The single-item EOQ formula finds the minimum point of the following cost function:

Total Cost = purchase cost + ordering cost + holding cost

- Purchase cost: This is the variable cost of goods: purchase unit price × annual demand quantity. This is P×D

- Ordering cost: This is the cost of placing orders: each order has a fixed cost C, and we need to order D/Q times per year. This is C × D/Q

- Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is H × Q/2
TC = PD + CxD/2 + HxQ/2

In order to determine the minimum point of the total cost curve, set its derivative equal to zero:
dTC(Q)/dQ = (d/dQ)(PD + CxD/Q + HxQ/2) = 0

= 0 + (-C*D/Q*Q) + H/2) = 0

The result is
Q = root of ((2*C*D)/H)



Note that interestingly, Q* is independent of P, it is a function of only C, D, H

Thursday, May 22, 2008

Benefits of desktop virtualization

Server virtualization is a fairly new technology that's already broken into the mainstream, but servers aren't the only computers that can benefit from virtualization. If your clients have already virtualized some servers and are comfortable with that technology, they may want to consider virtualizing employees' desktops as well. In this installment of our Virtualization Projects Hot Spot Tutorial, we'll examine the benefits of desktop virtualization and a few different ways of implementing it.

As every IT administrator knows, managing employees' desktops and laptops can be a huge hassle. Even with management tools to help, applying patches to the operating system (OS) or even upgrading applications can be a time- and labor-intensive task. Desktop virtualization can alleviate that by allowing administrators to provide just a few virtual machine (VM) images, or templates for VMs, which all employees use. Other benefits of desktop virtualization include increased security and a way to let employees control their computer environments while also allowing IT to lock down business-related functions.


Tutorial: Virtualization Projects
Learn more about virtualization projects and strategy in our Hot Spot Tutorial for service providers.



The fundamental technology behind desktop virtualization is similar to server virtualization: An administrator creates a VM image file that contains a computer's operating system, drivers, applications, files and settings. A virtualization engine then runs the VM, which behaves as if it were a regular,nonvirtualized computer. The physical computer running the VM, called the host, can either be the user's computer or a centralized server.

Although it is still a fairly new technology, the success of server virtualization is prompting many companies -- and systems integrators (SIs) -- to look into the benefits of desktop virtualization. Companies that look into desktop virtualization have typically already gotten into server virtualization and are familiar with products from VMware, Citrix and Microsoft, which all factor into desktop virtualization, said Barb Goldworm, president of Focus Consulting, a research firm based in Boulder, Colo.

Management and security with desktop virtualization

One of the most significant benefits of desktop virtualization is that it gives IT administrators an easy and centralized way to manage employees' computers. Instead of each computer being separate, administrators create just a handful of VMs or VM templates for different roles within a company. For instance, a company may create one VM for each worker in a call center and another for each sales representative. These VMs would include not just the operating system, but also any applications and drivers the employee would need. Such deployments work best where many employees need essentially the same functionality.

For example, some colleges are looking at desktop virtualization as a way of handling upgrades quickly between semesters, said Ty Schwab, founder and senior consultant of Blackhawk Technology Consulting LLC, a Eugene, Ore., IT consultancy. Colleges only have about two or three weeks from the end of one term to the beginning of the next, which is not typically enough time to update every computer lab across campus without downtime interfering with the academic schedule. By installing new, already patched VMs on computers, colleges can upgrade computer labs within three to five days instead of three to four weeks, Schwab said.

Desktop virtualization also makes it easier to get new computers up and running, said Scott Gordon, sales engineer at ActivSupport, a San Bruno, Calif.-based networking consultancy. Many computers need custom drivers to work properly, and setting these up can be time-consuming. With desktop virtualization, the VM being pushed to the new computer would already have the appropriate drivers installed, Gordon said.

Because the VM is abstracted and separate from the computer's hardware and other VMs, security is one of the major benefits of desktop virtualization. In many organizations, there is a natural tension between employees who want to have a desktop environment they can control and install applications on, and IT staff who would prefer that computers be locked down and kept safe from malware and attacks that might compromise company information.

Desktop virtualization lets computers run a locked-down VM for business operations on top of an open system, giving users and IT staff the best of both worlds, Schwab said. Since VMs are just files, they can also be encrypted to protect sensitive company information. This approach is especially helpful if an employee is working from home or over a VPN, Gordon said.

Server-hosted vs. client-hosted desktop virtualization

Desktop VMs can be hosted either on a server or on the user's PC. Both enjoy most of the same benefits of desktop virtualization, but which one makes sense for your client depends on several factors, such as how mobile its employees are and whether it wants to virtualize everything on the computer or just the business-related functionality.

In a server-hosted configuration, the VM is executed on the server and the client connects to it and displays the results. This is similar to the thin client model that dominated before desktop PCs came to businesses, although the client itself doesn't have to be thin; a fully-loaded laptop could run its own OS and connect to the hosted VM on top of it. VMware's Virtual Desktop Infrastructure (VDI) provides a model for server-hosted desktop virtualization, and San Jose, Calif.-based Wyse Technology is one of the leading thin client vendors for this approach.
Server-hosted desktop virtualization has advantages as well as disadvantages. If the employee's computer is a thin client, your customer can save costs by consolidating hardware resources onto the server, just as in server virtualization -- a thin client is much cheaper than a full-fledged desktop or laptop. Mobile or remote employees can also connect to their desktop from anywhere in the world if they have a fast enough connection and a computer capable of connecting to the server's VM, Schwab said. But that connectivity also raises security concerns, since that connection is going straight to your client's data center, he said. And of course, any employee who can't connect to the server won't have access to his work computer.

Client-hosted VMs don't have the hardware consolidation benefits of desktop virtualization, but because the VM image and virtualization engine are kept locally on the employee's computer, they can be run anywhere and don't require a high-speed connection to the server. But this approach preserves the other advantages of desktop virtualization, such as the ability to sandbox business-related functions and the ability to manage VMs more easily.

If your client's main concern is to protect and manage the applications its employees use -- and not the whole operating system -- you may want to look at virtualizing just those applications. In the final installment of our Virtualization Projects Hot Spot Tutorial, we'll look at application virtualization and a related technology, application streaming.

Desktop virtualization

Most desktop or laptop operating systems run all local applications and store user data on the machine's hard drive. Because the hard drive is accessible only to the user, this presents several problems for IT management. For example, it is difficult to patch, update, deploy and repair applications.

Desktop virtualization means the user's applications, data and sometimes OS run off a central server. The user's desktop runs a minimal OS that sends keyboard and mouse commands to a central server, which returns the video display output.

Typically, once set up, a virtualized desktop environment is much easier to manage than individual workstations. Desktop virtualization allows companies to rapidly provision, deploy, upgrade, back up and patch user environments hosted on a central server. It also allows a company to manage its assets and IT property more closely because it has a full inventory of its user base. Desktop virtualization may also offer cost savings on hardware and licensing.

For SMB clients, desktop virtualization can mean cost savings on desktop hardware because less-powerful or legacy hardware can essentially be used as terminals for virtual machines. Virtualization also makes a great deal of sense for remote workers who can access their user environment from many locations.

Future of virtualization

While server virtualization has begun to prove itself with significant benefits for the server farm, users have continued to struggle with issues on the desktop. In many organizations, the problem of Vista migration, with the hardware requirements it brings, and the management challenges that distributed desktops have plagued IT with for years, has begun to raise serious questions about desktop strategies for the future. And although upgrading your customers' entire PC base to Vista-capable hardware might seem like a great revenue opportunity, there are desktop virtualization options that bring an opportunity to address customers' longstanding desktop management problems.

With somewhere around 550 million corporate desktops today, 5 to 10 million are estimated to be delivered as some form of virtual desktop -- also referred to as "centralized desktop" -- and that number is expected to roughly double by 2009. Centralized desktops encompass three major approaches: terminal services, or server-based computing; virtual clients; and PC or workstation blades. (Application virtualization and streaming is an extension to these, which I'll discuss in a future column.) These three approaches share the advantage of centralizing management of the desktops and securing desktop data in a central location. One or more of these approaches might be worth considering as part of your customers' future desktop strategy.

Terminal services/server-based computing

Terminal services and its extensions have been in production longer than either of the other approaches, offering an early hybrid of client/server computing and mainframe time sharing. This approach, known as server-based computing (SBC), allows multi-user applications to run on a central server (running terminal services or Citrix Presentation Server), which users typically connect to from a thin client. Today, according to Citrix, there are more than 800,000 servers running a Citrix infrastructure, at more than 200,000 companies -- representing the largest portion of the centralized desktop market. Users connect from thin and fat clients of many types. This approach is most familiar for applications where a user runs the same multi-user application and nothing else (for example, at call centers). SBC offers the highest ratio of users per server -- Citrix servers today can support 250 to 500 users per server.

In addition, as Citrix leverages its newly acquired Xen virtualization technology, it will be in a great position to offer leadership across the centralized desktop space, via a stronger integration of SBC and virtual clients, with central management of users connecting to whichever is best-suited for a particular need. Citrix channel partners who also understand virtualization and where Citrix, Xen and VMware fit (today and in the future) have an opportunity to lead in the newly burgeoning space of centralized desktops.

Virtual clients
In organizations that have successfully deployed server virtualization technology (which to date has generally been done using either VMware or one of the Xen-based offerings), more and more users are dabbling with expanding that virtualization out to the desktop. VMware calls its desktop virtualization approach Virtual Desktop Infrastructure, or VDI; Citrix dubbed it Dynamic Data Initiative (DDI); IBM and others use the term "virtual clients."

This approach creates a virtual machine for each desktop; a user can connect to the virtual machine via a piece of software called a connection broker, using a thin client or browser. Connection brokers offer a wide range of functionality and are available from a variety of vendors, including VMware (with software from its Propero acquisition and now offered as Virtual Desktop Manager, or VDM), Citrix (whose broker was originally called Desktop Broker, then Desktop Server and now XenDesktop), Leostream, Provision Networks, ClearCube and others. Functionality ranges from minimal capability (connecting a user to a specific virtual machine to broader virtual client functionality (for example, connecting to a pool of VMs and adding other management capabilities), to incorporating broader connection options (which can include virtual clients, PC blades and terminal services/SBC).

The move from virtualizing servers with VMware to deploying VDI has been a slow process, as desktop changes tend to be, but as time goes on, it will represent a significant opportunity for the channel. Citrix's acquisition of XenSource, and where it goes from here, will have a big impact on this sector of the market, so it's important for channel pros to keep an eye on this space.

For channel partners selling both VMware and Citrix products, the Xen acquisition by Citrix and the huge growth that's projected for the overall centralized desktop market represent both a challenge and an opportunity. As both VMware and Citrix advance their respective technologies, your customers will have new choices for redefining their desktop strategies and expanding centralized desktops to a broader segment of their user base.

PC/workstation blades

Just as virtualization technology is moving from the server to the desktop, so is blade technology. Following the blade server model, PC blades are essentially a PC on a card (blade), which is inserted into a centralized blade chassis. Sometimes this is the same chassis as server blades, sometimes it's a different chassis, depending on the vendor and the type/power of the desktop (PC vs. workstation). The PC/workstation blades are centrally located, with the user interface for keyboard, video and mouse run remotely to the user location via a variety of options (on a local connection or over IP). The "remoting" of the user interface is sometimes called "PC over IP."

Early PC blades gained significant traction in the financial trading and healthcare industries, due to the high security requirements and benefits of being able to remove the PC from the user area and lock it in a secure location. ClearCube and Hewlett-Packard (HP) led this market, with IBM announcing a higher-end workstation blade this year for the IBM BladeCenter Chassis. A new player, Teradici, joined the game this year (its technology is now OEMed by IBM, ClearCube and Verari), with video compression technology that significantly improves the user experience when running graphics. This technology will extend the value of PC/workstation blades significantly. With a PC/workstation blade configuration, the user operates a thin client, which goes through a connection broker to a PC/workstation blade or pool of blades. Again, functionality (CPU power, graphics capability, quad monitor support, local device support) and price vary by blade vendor and connection broker, but all PC/workstation blades offer the advantage of central management and increased security. While PC/workstation blades will continue to be somewhat of a niche market, improvements in the user experience are expanding that niche. PC/workstation blades represent an excellent opportunity for expanding your reach into other parts of your customers' organizations, particularly if you sell blade servers today.

For more information

Focus Consulting is currently working on a major research series on desktop delivery alternatives, including drivers, use cases, considerations, user requirements, vendor options and user case studies. If you would like information or help in this area or if you have interesting user experiences or product/service offerings, please contact us at www.focusonsystems.com.

Barb Goldworm is president and chief analyst of Focus Consulting, a research, analyst and consulting firm focused on systems, software and storage. Barb has spent 30 years in various technical, marketing, senior management and industry analyst positions with IBM, Novell, StorageTek, Enterprise Management Associates and multiple successful startups. She recently released a book titled Blade Servers and Virtualization: Transforming Enterprise Computing While Cutting Costs and published by Wiley, and is working with her team on the upcoming Focus Research Series on Desktop Delivery Alternatives. Barb can be reached at barbgoldworm@focusonsystems.com.

What is a Kernel-based virtual machine for Linux

Kernel-based Virtual Machine (KVM) is a full virtualization solution for Linux on x86hardware containing virtualization extensions (Intel VT or AMD-V). It comes with a loadable kernel module, kvm.ko, which provides the core virtualization infrastructure and a processor-specific module, kvm-intel.ko or kvm-amd.ko. Using KVM, one can run multiple virtual machines running unmodified Linux or Windows images. Each virtual machine can have its own private virtualized hardware: a network card, disk, graphics adapter, etc. The kernel component of KVM is included in mainline Linux as of the 2.6.20 kernel.

What does this all mean? For one, it is open source and ready for you to play with. KVM also turns Linux into a hypervisor, which can allow other guest operating systems to run in its space. It could potentially be an alternative to VMware one day. This flexibiliy is where VARs can make a difference. VARs are in the position not only to help roll out and support the product, but also to optimize it and make it better.

Friday, May 2, 2008

MS 05 Numerical

A time study of a restaurant activity yielded a cycle
time of 2'00 minutes, and the waitress was rated
at PR : 96 per cent. The restaurant chain has a
2O per cent allowance factor. Find the standard time.

Sol : Average time = 2 mins

Normal time = Average time X Performance rating(PR)
= 2 X .96
= 1.92
Standard time = Normal time X Allowances
= 1.92 + 1.92(0.20)
= 2.304 mins

MS-05 Describe the Oprations Management decisions

I. strategic management decisions include planning products, processes and factors. Areas of involvment are
- production process
- production technology
- Factory layout
- Allocating resources
- Long range planning and facility locations.

II. Operating decisions involves planning production to meet demand. Areas of concern are :
- Production planning systems
- Independent demand inventory systems
- Resource requirements plannning systems
- Shop floor planning & control
- Materials management
-
III. Control decisions for planning and controlling operations.
Attention should be paid on
- Productivity of employees
- Total quality control
- Project quality control
- Maintenance management and reliability

Role of managers calls for looking into the activities in conversion process. these activities are planning, organising, planning staff and other inputs and direct & control planned activities. at each level, operations managers are expected to take decisions and implment them too.

The decisions made by operations mangers about the activities of production systems tend to tall into three general categories viz;
- strategic decisions relating to products, processes and manufacturing facilities. these decisions are major ones, having srategic importance and long term specificance for the organisation.
- Operating decisions relating to planning production to meet demand. These decisions are necessary in order to ensure that , the ongoing production of goods and services meet the market demand and provides resonable profits for the organisation.

- Control decisions relating to planning and controlling operations. These decisions concern the day to day activities of workers, quality of products and services, production and overhead cost and mainteannce of machines.