Six Sigma Pricing

Many factors contribute to defects in evaluation processes. the elemental causes area unit poorly designed or maybe unspecified  processes. however though the processes area unit acknowledged and clear, controls might not be effective. Either way, the Six sigma approach for rising processes will facilitate.

The Six sigma philosophy, mistreatment knowledge and applied mathematics tools to consistently improve methods and sustain process enhancements, will be applied to the evaluation method with a spotlight on eliminating the "defects" of excessive discounts or excessive costs. Six sigma could be a methodology historically utilized in producing to boost quality. Six sigma evaluation, or the applying of Six sigma to evaluation, permits systematic elimination of process-related defects by exposing the sources of those defects.

The 5 stages of Six sigma evaluation area unit identical as that of Six sigma except that they're custom-made for evaluation processes:

Define the pricing-related "defect" in operational-, transaction-, or contract-specific evaluation processes and also the extent of the defect.
Measure the extent of the defect along side parameters of the evaluation processes further because the invoice, say by analyzing past invoices.
Analyze the info collected in live to infer however the scale or incidence of defects varies with completely different aspects of the evaluation methodes further as brainstorm on the opposite causes of defects associated with the prevailing process.
Improve {the method|the method} by creating process amendment recommendations along side quantitative estimates of what proportion improvement in connected costs or different metrics would occur following implementation of those changes.
Control the projected method. as an example, advocate controls to make sure that folks area unit following the agreed-upon modifications which the calculable edges area unit achieved.
Benifits from Six sigma evaluation

• The Six sigma methodology uses knowledge, measurements and statistics to spot method inefficiencies and so applies strategic tools to eliminate defects by decreasing method variation. 
• The name Six sigma comes from the applied mathematics term that refers to a method that permits for no quite three.4 errors per one thousand thousand opportunities.
• Organizations that have used the Six sigma methodology have reduced waste, enlarged profit and increased stockholder price. as an example, General electrical used Six sigma techniques to extend profits by $2 billion in an exceedingly annual amount.
• Investing in Six sigma coaching for workers in the slightest degree levels at intervals a corporation will be a catalyst to increasing productivity and profitableness. 
• the inspiration of a roaring Six sigma program could be a completely trained base of authorized  staff. Once the quantity of staff with Six sigma coaching reaches a vital mass within the company, productivity will begin to boost while not increasing capital prices.
• A company edges from Six sigma the foremost once a big range of its staff area unit trained within the methodology. once staff have adequate 
• Six sigma coaching they become far better downside solvers and may still increase the company’s productivity for the rest of their careers. As additional staff area unit trained within the Six sigma method, the corporate gains additional professionals to assist alleviate problems, additional minds to unravel issues and additional hands to assist execute the answer.

CONCLUSION
Pricing is vital to a company's success, and realizing a rather higher worth overall across all transactions includes a tremendous impact on rock bottom line for any company. As such, rising costs and preventing worth erosion in transactions or contracts ought to be the primary priority for a corporation seeking to boost its profits.
The heart of the matter is that the absence of well-defined processes or the absence of functioning controls though the processes area unit neat and well intentioned. Six sigma is associate approach that has done wonders for producing and for services in rising processes to scale back defects.

The real purpose of Six sigma evaluation is to assist the chief operating officer develop a shared understanding and explanation for improved management and so manage amendment to improved evaluation processes.

THE BHIM APP

Bharat Interface for Money (BHIM) is an initiative to enable fast, secure, reliable cashless payments through your mobile phone. BHIM is interoperable with other Unified Payment Interface (UPI) applications, and bank accounts. BHIM is developed by the National Payment Corporation of India (NPCI). BHIM is made in India and dedicated to the service of the nation.

How does it work?
Register your bank account with BHIM, and set a UPI PIN for the bank account. Your mobile number is your payment address (PA), and you can simply start transacting. Yes! It is that simple.

Send / Receive Money: Send money to or receive money from friends, family and customers through a mobile number or payment address. Money can also be sent to non UPI supported banks using IFSC and MMID. You can also collect money by sending a request and reverse payments if required.

Check Balance: You can check your bank balance and transactions details on the go.

Custom Payment Address: You can create a custom payment address in addition to your phone number.

QR Code: You can scan a QR code for faster entry of payment addresses. Merchants can easily print their QR Code for display.

Transaction Limits: Maximum of Rs. 10,000 per transaction and Rs. 20,000 within 24 hours.

Language supported: Hindi and English. More languages coming soon!

BHIM requires permission to your Phone Calls & SMS to verify your phone number.

Updated

January 4, 2017

Installs

5,000,000 -16,50,000 (approx)

Current Version

1.1

Offered By

National Payments Corporation of India (NPCI)

Supported Banks: 
- Allahabad Bank 
- Andhra Bank
- Axis Bank 
- Bank of Baroda
- Bank of India 
- Bank of Maharashtra
- Canara Bank
- Catholic Syrian Bank 
- Central Bank of India
- DCB Bank 
- Dena Bank
- Federal Bank 
- HDFC Bank
- ICICI Bank 
- IDBI Bank 
- IDFC Bank 
- Indian Bank 
- Indian Overseas Bank 
- IndusInd Bank
- Karnataka Bank 
- Karur Vysya Bank 
- Kotak Mahindra Bank 
- Oriental Bank of Commerce 
- Punjab National Bank 
- RBL Bank 
- South Indian Bank 
- Standard Chartered Bank
- State Bank of India 
- Syndicate Bank 
- TJSB
- UCO Bank
- Union Bank of India 
- United Bank of India
- Vijaya Bank
- Yes Bank Ltd

The app is a rebranded version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).

The app will eliminate fee payments for service providers like card companies such as Mastercard or Visa was widely seen as a big stumbling block for merchants switching to digital payments. This app is expected to make it affordable for merchants in remote villages.

The BHIM app is supposed to support Aadhaar-based payments, where transactions will be possible with just a fingerprint impression

3 million customers in just 5 days.

Not just another mobile wallet

HOW IS IT POSING THREAT TO PAYTM

The app takes on the likes of Paytm, Mobikwik, Freecharge and other mobile payment apps which have become hugely popular since the government announced banning of Rs 500 and Rs 1000 notes on November 8.

The new app is expected to minimise the role of plastic cards and the point of sale (PoS) machines said to be the essential tools for a cashless society.

You can store a limited amount of money in a mobile wallet like Paytm or MobiKwik, which you can send only to someone who is using the same wallet. But BHIM is UPI-based, and thus linked directly to a bank account. All the payee needs is a bank account. If this account is UPI activated, you can just ask for the payee’s VPA or virtual payment address, and make the payment to that account.

The advantage is there’s no need to remember an account number, or to share it with anyone. The VPA is all that is needed. Up to Rs 10,000 can be sent per transaction, and up to Rs 20,000 in any 24 hours.

verified your mobile number. You get an SMS, so it’s best to use the same number as the one that’s linked to the bank account.

BHIM will ask you to set a 4-digit passcode.(easy to remember).

If your account is UPI activated, it will reflect the relevant number. You’ll see options to send and receive money, and transact via IFSC. If UPI is not activated, you can put in six digits of your debit card number, and the expiry date, after which the app will let you use it.

the release of UPI would be bitter for mobile wallets. This is due to UPI being an open payments platform, where money can directly be transferred from one bank account to the another without any switching charges.

It also removes the fuss of pulling your money from your bank account to your mobile wallet and vice versa as mobile wallets are semi-closed payment systems. Further, bank-to-bank transfer makes the system more widely accepted, as opposed to the pain of tying up from merchant to merchant.

One app for all bank accounts:

BHIM leverages the power of UPI and USSD into one, which enables the user to optimally utilize single platform for all his cashless needs. Thus, if a user has bank accounts in three UPI enabled banks, then BHIM will converge all his banking activities, and enable him to conduct cashless transactions without hassles. The single @UPI payment address will protect his identity and personal details. The interoperability aspect makes it a big deal, compared to other e-wallets, which basically  replaces your physical wallet with a digital one. But BHIM directly connects the bank accounts with a safe platform, thereby saving you time and hassles of maintaining multiple wallets.

2. Internet Is Not Required:

One of the master-strokes of BHIM is that, it can be used without Internet. *99# program for conducting cashless transactions is being supported by BHIM, which makes it a deal-clencher. Only Paytm provides Internet-less cashless transactions, but that feature is not that robust, considering that you need Internet to link the bank accounts, and to infuse funds. But with BHIM, a non-smartphone user can transact from the word go.

3. Finger-print based cashless transactions:

Once the merchant connects a bio-metric device with his smartphone (after installing BHIM app), then he can easily accept payments from buyers by using their finger-print. The Aadhaar protocol kicks in here, as the fingerprint is directly matched from the main server, and the payment is done. This facility is right now not available on any e-wallet, which makes BHIM a superior technological product, compared to any other e-wallet. Rural citizens who are don’t even know how to read and write can easily, seamlessly pay via BHIM, using their bank account.

In a way, BHIM effortlessly connects the Aadhaar card, mobile phone and UPI/USSD technologies to provide a digital platform for making and receiving payments.

Till now, BHIM can be described as the Govt. biggest, most ambiguous project for promoting cashless payments.

In the coming days, it would be really interesting to observe how BHIM makes a dent in the market of Paytm, and other e-wallets.

While BHIM has all the benefits provided by other mobile wallets, the one big advantage is that the transactions happen directly from the bank accounts and there are no charges associated with transfers.

during peak times, users have been left stranded, unable to confirm payments made to the merchants. Users have found queries sent to update passbook to track transactions taking inordiantely long. Apart Paytm traced some of the flaws in its iOS app, used by less than 10% of its users, which impacted the platform at large. A new bug-free app has been released.

The problem at the retail end is mainly with small merchants: corner cigarette shops, fruit vendors, kirana stores. Regulations don’t allow merchants to take out more than ` 20,000 per month, while they need money to manage daily cash flows. Says one merchant in Bajrang market, Greater Noida, “I sold `2 lakh worth of goods in one week. But I can withdraw only `20,000 a month. And that after standing hours in long queues. It’s impacted my business and now I don’t accept Paytm.”

​from the spike in fraud, some users reported money disappearing at the time of loading wallets.

Effect Of GST on Sectors.....

The GST is a Value added Tax (VAT) and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services.

The taxes which will be subsumed into GST include central excise duty, services tax, additional customs duty, surcharges and state-level value added tax

DUAL GST

A dual GST module for the country has been proposed by the EC(Empowered Committee of State Finance Ministers (EC). This dual GST model has been accepted by centre. Under this model GST have two components viz. the Central GST to be levied and collected by the Centre and the State GST to be levied and collected by the respective States. Central Excise duty, additional excise duty, Service Tax, and additional duty of customs (equivalent to excise), State VAT, entertainment tax, taxes on lotteries, betting and gambling and entry tax (not levied by local bodies) would be subsumed within GST. Other taxes which will be subsumed with GST are Octroi, entry tax and luxury tax thus making it a single indirect tax in India.

HISTORY

The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 was introduced in the Lok Sabha by Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6 May 2015. In the Rajya Sabha, the bill was referred to a Select Committee on 14 May 2015. The Select Committee of the Rajya Sabha submitted its report on the bill on 22 July 2015. The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was passed by the Lok Sabha on 8 August 2016

The bill, after ratification by the States, received assent from President Pranab Mukherjee on 8 September 2016  and was notified in The Gazette of India on the same date.

Ratification

The Act was passed in accordance with the provisions of Article 368 of the Constitution, and has been ratified by more than half of the State Legislatures, as required under Clause (2) of the said article. On 12 August 2016, Assam became the first state to ratify the bill, when the Assam Legislative Assembly unanimously approved it.[14][15] State Legislatures that ratified the amendment are listed below:

WORKING

Goods and Services Tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This method allows GST-registered businesses to claim tax credt to the value of GST they paid on purchase of goods or services as part of their normal commercial activity. Taxable goods and services are not distinguished from one another and are taxed at a single rate in a supply chain till the goods or services reach the consumer. Administrative responsibility would generally rest with a single authority to levy tax on goods and services.^[1] Exports would be zero-rated and imports would be levied the same taxes as domestic goods and services adhering to the destination principle.

EFFECT

·         would mitigate cascading or double taxation,

·         facilitating a common national market.

·         The simplicity of the tax should lead to easier administration and enforcement.

·         From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%,

·         free movement of goods from one state to another without stopping at state borders for hours for payment of state tax or entry tax and

·         reduction in paperwork to a large extent

CHANGES

“The tax rate under GST may be nominal or zero rated for the time being. It has been proposed to insulate the revenues of the States from the impact of GST, with the expectation that in due course, GST will be levied on petroleum and petroleum products.” The central government has assured states of compensation for any revenue losses incurred by them from the date of introduction of GST for a period of five years.

The Central Goods and Services tax grants power to the officers to discharge their duties under the GST Act.

GST threshold was set at ₹10 lakh (US$15,000) for the north-east and hill states and ₹20 lakh (US$30,000) for other states in the first GST council meet

 

Problems in the Present Structure

Present Indirect structure is marked with following problems:

Multiplicity of Taxes

Presently, the Constitution empowers the Central Government to levy excise duty on manufacturing and service tax on the supply of services. Further, it empowers the State Governments to levy sales tax or value added tax (VAT) on the sale of goods. This exclusive division of fiscal powers has led to a multiplicity of indirect taxes in the country. In addition, central sales tax (CST) is levied on inter-State sale of goods by the Central Government, but collected and retained by the exporting States. Further, many States levy an entry tax on the entry of goods in local areas. Taxes by Union Government, State Governments and the local governments have resulted in difficulties and harassment to the tax payer. He has to contact several authorities and maintain separate records for each of them.

Complex

The taxes are levied by central government as well as state government. So, a person has to maintain accounts which will comply with all the applicable laws. This multiplicity of taxes at the State and Central levels has resulted in a complex indirect tax structure in the country that is ridden with hidden costs for the trade and industry.

Cascading effects of taxes

In current indirect tax structure in India, there is cascading of taxes due to ‘tax on tax’. No credit of excise duty and service tax paid at the stage of manufacture is available to the traders while paying the State level sales tax or VAT, and vice versa. Further, no credit of State taxes paid in one State can be availed in other States. Hence, the prices of goods and services get artificially inflated to the extent of this ‘tax on tax’.

 Multiple Compliance

A business person might have to comply with multiple compliance in terms of indirect taxes in India.

Tax Arbitrage

The problem of tax arbitrage for a single nation poses an invisible barrier for free trade. In many cases, a small difference in rate of tax can result in manifold implications and thus, can induce the business to move into a lower tax territory. As an example, the different rate of VAT as levied on sale of goods in different states .

GST is seen as a solution to the above problems.

GST shall subsume the following taxes in the times to come once the law is in force:

The proposed GST regime shall have the following features:

·         It shall be a destination based taxation

·         It shall have a Dual Administration – Centre and state

·         State wise determination of taxable person – no more centralized registration

·         Seamless credit amongst goods and services

 

Tax-Rate under the proposed GST

As per the decisions made by all will of GST Council on November 3rd, 2016, The tax rates would be at 4 slabs of 5%, 12%, 18% and 28%. Although rates have come down, tax collection would go up due to increased tax elasticity. The government is working on a special IT platform for smooth implementation of the proposed Goods and Services Tax (GST). The IT special vehicle (SPV) christened as GST N (Network) will be owned by three stakeholders—the centre, the states and the technology partner NSDL, then Central Board of Excise and Customs (CBEC) Chairman S Dutt Majumdar said while addressing a "National Conference on GST". On the possibility of rolling out GST, he said, "There was no need for alarm if GST was not rolled out in April 1, 2012.

Renewed GST concerns

With heterogeneous State laws on VAT, the debate on the necessity for a GST has been reignited The best GST systems across the world use a single GST, while India has opted for a dual-GST model. Critics claim that CGST, SGST and IGST are nothing but new names for Central Excise/Service Tax, VAT and CST, and hence GST brings nothing new to the table. The concept of value-added has never been utilized in the levy of service, as the Delhi High Court is attempting to prove in the case of Home Solution Retail, while under Central Excise the focus is on defining and refining the definition of manufacture, instead of focusing on value additions. The Revenue can be very stubborn when it comes to refunds, as the Maharashtra Government proves, and software entities that applied for refunds on excess service tax paid on inputs discovered

The all-new Cenvat Credit Rules, 2014 do little to clarify eligibility for input credits, by using general terms such as "any goods which have no relationship whatsoever with the manufacture of a final product" and "services used primarily for personal use or consumption of any employee.

BENEFITS OF GST

GST has been envisaged as an efficient tax system, neutral in its application and distributionally attractive. The advantages of GST are:

• Wider tax base, necessary for lowering tax rates and eliminating classification disputes
• Elimination of multiplicity of taxes and their cascading effects
• Rationalization of tax structure and simplification of compliance procedures
• Harmonization of center and state tax administrations, which would reduce duplication and compliance costs
• Automation of compliance procedures to reduce errors and increase efficiency

·         Destination principle

·         The GST structure would follow the destination principle. Accordingly, imports would be subject to GST, while exports would be zero-rated. In the case of inter-state transactions within India, State tax would apply in the state of destination as opposed to that of origin.

·         Taxes to be subsumed

·         GST would replace most indirect taxes currently in place

features of the proposed Indian GST system

• The power to make laws in respect of supplies in the course of inter-state trade or commerce will be vested only in the Union Government. States will have the right to levy GST on intra-state transactions, including on services.
• The Centre will levy IGST on inter-state supply of goods and services. Import of goods will be subject to basic customs duty and IGST.
• GST is defined as any tax on supply of goods and services other than on alcohol for human consumption.
• Central taxes such as Central Excise duty, Additional Excise duty, Service tax, Additional Custom duty and Special Additional duty as well as state-level taxes such as VAT or sales tax, Central Sales tax, Entertainment tax, Entry tax, Purchase tax, Luxury tax and Octroi will subsume in GST.
• Petroleum and petroleum products, i.e., crude, high speed diesel, motor spirit, aviation turbine fuel and natural gas, shall be subject to GST - date to be notified by the GST Council.
• Provision will be made for removing imposition of entry tax /Octroi across India.
• Entertainment tax,, imposed by states on movie, theatre, etc., will be subsumed in GST, but taxes on entertainment at panchayat, municipality or district level will continue.
• GST may be levied on the sale of newspapers and advertisements. This would mean substantial incremental revenues for the Government.
• Stamp duties, typically imposed on legal agreements by states, will continue to be levied.
• Administration of GST will be the responsibility of the GST Council, which will be the apex policy making body for GST. Members of GST Council comprise Central and State ministers in charge of the finance portfolio

Sometime mistakes happen..

(WILL SAMSUNG GAIN BACK ITS POSITION AS A SMARTPHONE LEADER AGAIN? )

Samsung’s large-screened, stylus-toting Android smartphones launches on August 19. TIME describes it as “a modest but welcome improvement over its predecessor, offering a more ergonomic design, an enhanced stylus, the same camera as its Galaxy S7 cousin, and some software tweaks” and awards it 4.5 out of 5 stars.

Tales of Note 7 devices catching fire begin to spread. Samsung receives 92 reports of batteries overheating in Galaxy Note 7 phones in the U.S.; it says there were 26 reports of burns and 55 reports of property damage.

The world’s three largest carriers by passenger traffic, American Airlines, Delta Air Lines and United Airlines, say that employees will tell passengers at the gate and on board aircraft to keep the Note 7 switched off until they deplane.

In total, Samsung recalls 2.5 million of the new Notes across 10 worldwide markets, including one million in the U.S. More than 500,000 replacement units of the device are shipped to carrier and retail stores in the U.S.

Samsung’s market value begins to plummet as shares fall to their lowest level in nearly two months on Sept. 12. Investors wipe 15.9 trillion won ($14.3 billion) off the South Korean firm’s market capitalization as a series of warnings from regulators and airlines around the world raised fears for the future of the device.

Analysts say the recall could have a lasting impact on the $211 billion company’s brand image, which could derail a recovery in its smartphone market share against rivals like Apple Inc. Some estimate the firm might lose $5 billion won worth of revenue after accounting for recall costs.

New reports suggest replacement phones are also catching fire.

On Oct. 9, Samsung stops exchanging recalled Note 7 devices due to reports of replacement phones catching fire, just as the original phones did.

The week before, a Southwest Airlines flight is evacuated because of a phone that is smoking and making “popping” noises after it is turned off.

The Note 7 battery problem will now sow seeds of doubt about all future Samsung phones and also about Samsung's customer service and capacity to make things right in similar cases.

 SAMSUNG GALAXY NOTE 7 TRAGEDY

Once the leader in the smartphone market who was deemed by even its critics to have had nothing short of a winner-take-all yearwas hit by a blow when In the midst of what is sure to have some think twice about picking up another “Galaxy,” it is said that the Note 7 recall has dealt a “deadly blow to the Galaxy Note brand,” that Samsung cannot recover from this, and that its best strategy is to scrap the cherished brand.

It is a costly mistake, beyond financial, since individuals were injured and the Galaxy Note brand along with it.

Samsung shares were trading at 1.65 million won -- down 3.2 percent.

Baystreet Research’s latest report says that Samsung’s total US smartphone sales are down 6% (to 7.2 million units) for the third quarter, year-on-year.

Major partners like Oculus also removed support for Note 7 on Gear VR.

The Note 7 features that “Samsung Cloud” was also taken on hold because of the death of the Galaxy Note phone.

Samsung saw $22 billion (£16bn) wiped off its market value in just two days.

The sales of future premium phones like the upcoming Samsung Galaxy S8 may be affected. It’s a natural reaction that we’re guessing the same will happen to other Galaxy phones. Even the Galaxy S7 is also now receiving the negative effect but Samsung already said that the S7 phones are safe.

KEY BENEFICIARIES

     

They will be benefited by looking into the future prospects of business and avoiding marketing myopia and will take up Issues which should be part of the company mission, vision and objectives on which Samsung has not kept a tight hold.

Those are:-

·         Accept and Value Customer Feedback.

·         Use Effective Problem Solving Techniques.

·         Use Advanced Quality Product Planning.

·         Know and Understand the Real Cost of Quality.

·         Never Lose Customer Focus.

Samsung loosed on these aspects which has lead to downfall of such a giant enterprise.

Rushing a product to the market costed billions in the back end.

2) Customers will be benefited as the Galaxy Note 7 has again bought in needs to shine a light on PRE-ORDERING, smartphone reviews, and how we think about our devices.

Early adopters constantly run into issues like this with new tech. Sure, it may be the second generation (or fourth, fifth, sixth) of a device, but that doesn’t mean it is incapable of a catastrophic failure.

Samsung again bought in concept of “STOP PRE-ORDERING!” as said by video games critics and Samsung fans.

Customers will understand the importance of long review periods and will actually take the time to do   reviews thoroughly.

Judge Companies on its actions, not its words.

There has certainly been a short-term financial hit to Samsung's bottom line. Recalls are expensive with no commercial upside. Samsung's losses could be as high as one billion dollars. Expect this to be reflected over two or three quarters of financial reports from the South Korean company.

There's also the loss of income from not having the Galaxy Note 7 on sale. The phablet was expected to match the sales of the Galaxy S7 and S7 Edge. With the Note 7 removed from the market there was room for the competition to pick up potential sales. Google's Pixel XL was an obvious beneficiary with many of the geekerati promoting it as an alternative. As a new brand in the market with limited stock the Pixel XL certainly had a sales boost but Google did not have the resources to fully exploit the gap in the market.

Neither did Apple. Although the iPhone 7 Plus is a natural competitor to the Note 7's phablet form factor it also suffered the usual stock shortages that feature during the launch period of a new Apple device. No doubt other Android device manufacturers saw increased sales, but no handset stepped up to dominate the vacated space.