The Nissan & IBM Outsourcing Agreement
January 27, 2012 | 
Author Introduction
In the year, prior to the turn of the millennium, Nissan was a company in a serious financial crisis. Debt had approached $22 billion by 1999. The company had been too complacent, and had taken its prior success, for granted [2].
Did Nissan’s decision to outsource their IT Infrastructure to IBM in 1999 make good sense? Nissan was a very troubled auto-manufacturer in the late 1990′s. Senior executives from the company were known for their conservative outlook on business, and their ‘old boy’s network,’ mentality. Profits were dropping dramatically, eventually forcing the company into the $22 Billion debt that it then faced. There were no signs indicating a change in the market that would encourage profit growth. The vehicle sales needed invigoration.
Mergers were the flavor of the day in the automotive industry during the late 1990′s. Nissan executives approached Daimler Chrysler and Ford to discuss a possible merger, but there was no interest from either of the companies [2]. There was only one alternative left, which was to reinvent themselves and reduce unnecessary overheads. This was the defining point that led to the business process outsourcing decision.
This paper seeks to answer the question “Does the cost of implementing an in-house solution outweigh the benefits or does Business Process Outsourcing (BPO) make more sense?” We reviewed the example of the automotive manufacturer, Nissan, when they decided to outsource their entire Information Technology department to IBM in late 1999, to answer our question.
Nissan – A brief history and the events leading up to the BPO decision
I. The Boom years
Nissan was established in Japan in 1933 as a heavy industry manufacturer. After the Second World War they turned their attention to automotive vehicles. In the 1950′s, they finally had an impact on the global market with the introduction of the Datsun branded sedans and small pickup trucks. The company eventually opened full-time operations in the USA in September 1960 [6].
The company experienced dramatic growth with the introduction of the ‘Z’ series sports sedans in the early 1970′s, with the 240Z becoming the fastest selling sports car of all time. This success led Nissan to the top of the U.S. vehicle importers market by 1975. Vehicle sales in the USA topped over 250,000 units per annum by 1970 [6]. The company was young, its leaders dynamic and the future looked very bright. They were competing for the U.S. market with the likes of Ford, Chrysler, and General Motors, showing improved quality and production efficiencies over their competitors.
The company was growing at a phenomenal rate, opening new manufacturing plants around the world on a regular basis such as Australia (1976), Spain (1980) and the United Kingdom (1984) [6]. There was no respite to the pace of growth and new business generation coming from the company.
In 1983, the company began the worldwide marketing of vehicles under the Nissan name which was felt to have a stronger quality image and started the six year transition from Datsun to Nissan on vehicles, dealerships, facilities and marketing materials. Sales continued to grow, eventually reaching 830,767 in 1985 [6]. The decade closed out with resounding success for Nissan with their domination of the North American market.
In 1993, the mid-line Stanza sedan was replaced with an all-new Altima and non-competitive Japanese-designed minivan was replaced with a new U.S. created Quest, which was the first minivan with car-like handling. Sales came roaring back in 1994 to near-peak levels of 774,405 [6].
In 1996, sales began to slip once again, fueled by a change in American vehicle tastes. Trucks and SUVs gained market share at the expense of sedans and sports cars [2]. Nissan’s position as a manufacturing driven company, which helped them in the ’80′s and early ’90′s, then had new problems with the dollar/yen balance which began to hurt their competitiveness against market driven companies.
Unlike their competitors, Toyota and Honda, which were focused on key volume segments, Nissan did not dominate any individual segment and competed in identical segments against Toyota and Honda.
Unfortunately for Nissan in the 1990s, the Japanese “bubble economy” burst, a downturn in Europe coincided, so there was more pressure in the U.S. to perform. Unfortunately U.S. customers didn’t have a genuine brand reason to shop Nissan except for the ‘best price’ deal.
Former Nissan president, Mr. Nakamura, announced a “Back-to-Basics” plan. The key elements of the plan were to reduce inventories, eliminate unrealistic sales targets, and increase dealer profitability. Unfortunately for Nakamura and Nissan, the plan did not work [2].
II. Trouble looms for the auto-manufacturer in 1990′s
In the early 1990′s, trouble began to brew in the organization. The once revered executives at Nissan were now viewed as arrogant members of the old-boys club and were ignorant to the changing needs of their customers and the overall automotive market, in general.
As the company progressed deeper into debt, it met with more challenges. Nissan’s business partners and suppliers were charging a premium for their goods and services. Nissan was obliged to meet its financial commitments and by so doing placed itself further into debt. Finally, the company was in debt to the tune of $22 billion. Even the company’s financers were tightening the noose around them. Nissan felt the situation was hopeless.
III. Steps taken to address issues
Nissan executives were looking for a way out, a way to rescue the company from entering into bankruptcy. The first approach was to find a partner. Both the newly established DaimlerChrysler and the Ford Motor company were approached, but both organizations rejected the idea of a merger [2]. Finally, Renault, the French automotive company recovering from a similar predicament, decided to enter into negotiations with the flailing Japanese company. A senior executive at Renault, Carlos Ghosn, was a huge supporter of the merger idea.
After much negotiation, the Japanese Ministry of Economy, Trade and Industry agreed to allow Renault to purchase a substantial stake in Nissan. The Nissan-Renault alliance was born and Ghosn was appointed Chief Operating Officer.
Nissans Executive decisions and major events
I. Creating a global alliance vision:
The following is excerpted from the Nissan/Renault alliance vision:
“The Renault-Nissan Alliance is a unique group of two global companies linked by cross-shareholding. They are united for performance though a coherent strategy, common goals, and principles, results-driven synergies, shared best practices. They respect and reinforce their respective identities and brands.”[2]
The Alliance set itself three objectives, with the goal of being amongst the best three automotive groups in the following areas:
1. Quality.
Achieve customer recognition as being a quality and value added product.
2. Technology.
Lead in key technology development and implementation with a focus on excellence in specific areas of the automotive business.
3. Operating Profit.
Consistently generate a high operating profit margin and vigorously pursue growth.
II. Appointing a new leader
Ghosn, given his enthusiasm for the merger, his demonstrated tenacity, and his experience of the automotive industry, was a natural choice for a senior position at Nissan. His initial appointment as Chief Operating Officer (COO) was just a temporary assignment. In 2000, he was named President and in 2001, he was appointed Chief Executive Officer (CEO).
As CEO, Ghosn was very aware that the ‘buck’ stopped with him. He was the final decision maker. Some important and very serious decisions were made to save the ailing company. Ghosn had to use all of his valuable experience gained from rescuing other organizations, such as Michelin and Renault, to save Nissan.
III. Decision making to save a troubled auto-manufacturer
With Ghosn’s arrival in Japan in the spring of 1999, he immediately set about researching Nissan’s root problems. The newly appointed COO had a management philosophy that stated “you must always start with a clean sheet of paper because the worst thing you can have is prefabricated solutions… you have to start with a zero base of thinking, cleaning everything out of your mind.”[2]
For the first few months, Ghosn flew around Japan, meeting and greeting employees at all levels, absorbing information and formulating a plan. He used this information to plot a picture of Nissan from a global perspective, identifying issues, and problems that had created the dispersed, unprofitable organization.
One of the many issues Ghosn identified was the lack of communication around the organization. Seniors managers around the world were aware of some of the issues that caused the downturn of fortune in the company. They even had solutions to them, but had lacked the necessary authority to implement or communicate the solutions back to Corporate Headquarters.
Finally, the major issues were whittled down to five key issues: [2]
• Lack of clear profit orientation. Nissan was not focused on driving profit, but were rather focused on market share and ended up having to buy their market share at the expense of the declining profits.
• Insufficiently focused on customers and too much focus on competitors. The company was too concerned about the competition introducing a new line which would have dug into the Nissan market share. For example when Volkswagen introduced their new Jetta sedan Nissan saw a significant decline in their Maxima sales.
• Lacked cross-functional, cross-border, and intra-hierarchical lines of work in the company. Nissan seemed to operate as separate islands scattered throughout the globe. There was no centralized purchasing function or in fact any of the other major business activities. The organization was not making maximum use of its global presence or buying power.
• Lack of sense of urgency. The executives in Nissan were complacent in their activities. Things had gone so well for the company in the preceding 60 years that they felt that there was no reason to embrace change.
• No shared vision or common long-term plan. Senior management within Nissan did not have a joint plan for the different brands within the company. Each division did their own thing with little or no thought for the greater good of the company. An example was the Z series that had achieved phenomenal success throughout the 1970′s and ’80′s but was suddenly dropped from production when sales dropped. The obvious thing to have been done was to test the market with a modernized design. Instead Nissan chose to ignore the market and drop the brand.
To address the issues, Ghosn announced the Nissan Revival Plan on October 18, 1999. This seven-point plan was aimed at reducing costs and debt as well as creating and launching new automotive brands to raise sales and market awareness. The goals announced in the plan were far-reaching and encompassed: [2]
• The reduction of operating costs, net debt, global head count, and vehicle assembly plants and manufacturing platforms (the latter in Japan).
• The generation of new product investment through the launch of twenty-two new models.
The cost-cutting plan called for centralization of purchasing, procurement, human resources and information technology. By centralizing these essential functions, the plan aimed to assist the company in achieving its aggressive cost reductions.
Expenditure, particularly in the information technology function, was perceived as being out of control. Ghosn’s message to senior level executives was clear, “cut costs in every possible area.” If that meant outsourcing non-core activities because somebody else could do it cheaper, then that had to be fully investigated and determined. The management was ruthless in their execution of the plan [2].
Nissan looks at Business Process Outsourcing as a means
I. Will outsourcing non-core activities save money?
There are well-documented records of company’s saving money and others of outsourcing horror stories. Success really depended on the situation and the provider.
Most experts agreed, though, that you needed to use BPO in strategic decisions, for example refocused efforts on core competencies and not merely for cost cutting activities [1]. Stephen Withers of ZDNet said in his on-line article that you should only “use BPO for strategic purposes, not to take advantage of a (possibly transient) cost saving.” Withers then asked the reader, “Does outsourcing the IT Infrastructure make sense?” To answer that question corporate Chief Information Officer’s (CIO’s) would need to have completed extensive research and have done a thorough analysis of their business processes.
This is exactly what Nissan’s CIO did, or rather what Ghosn told him to do. The company had invested over 80 billion yen (over $US760million) in 1998 on IT services, but their processes were still not providing the management with the infrastructure that would assist in building their competitive edge [5]. The final decision was made to approach various outsourcing service providers for the much needed help.
II. Does outsourcing the IT infrastructure make sense?
If Information Technology (IT) truly was a commodity, like gasoline or electricity, then companies only competed on price, with very small profit margins. In that event, the decision to turn over IT to an outsourcer was as simple as it was a century ago to turn to motor vehicles instead of using the horse and cart. However, while personal computers and the networks they run on may be standardized, the services provided by IT outsourcers vary in many ways. Services such as data analysis, application development, and IT decision-making allowed companies more competitiveness in the market therefore, those elements of IT are far from being viewed as commodities [8].
With regards the decision to outsource, many factors were considered in Nissan’s case. Ann Moynihan in her article in the Albany Business review states “Outsourcing can help you: [3]
• Reduce and control operating costs.
• Free staff to focus on core business.
• Gain access to specialized skills and technologies.
• Introduce positive change.
• Gain control over a difficult-to-manage function resulting from uneven workloads, insufficient or unskilled resources.”
With Nissan, in 1999, this was exactly what they were looking for. Refocused staff efforts, introduction of positive change and control gained in all critical areas led to the outsourcing decision.
The choice of IBM as Nissan’s outsourcing partner was a strategic one. In the late 1990′s there were not many outsourcing companies that had the breadth or the global reach that IBM had. Competitors such as EDS and CSC were not considered because they were only outsourcers and could not offer the hardware and software technology that Nissan required to update their infrastructure [5]. If either one of those competitors were selected over IBM as a partner Nissan would still have faced the same infrastructure issues. IBM was the only logical partner.
Did the relationship work between Nissan & IBM?
I. A further look at the relationship between IBM and Nissan
In a joint IBM and Nissan press release published in Tokyo on June 19, 2000, the two companies announced that they were “Extending their global partnership for information system (IS) operations which Nissan Motor Co., Ltd. and IBM agreed in October 1999, Nissan and IBM today jointly announced that Nissan will outsource its IS operations in Japan, to IBM Japan.
The service includes Nissan’s regular maintenance and operational activities as well as part of its application development, but excludes the planning and design of new systems. The two companies will start operations from October 1. [7]
In North America, Nissan has outsourced these same operations to IBM Corp. since October 1999. This latest agreement in Japan is expected to further accelerate the standardization, integration and centralization of Nissan’s IS on a global level.”
Ghosn further noted, “The Nissan Revival Plan cannot be accomplished without effective information systems. Following upon the recent agreement with Japan Telecom, this latest partnership with IBM puts in place the global infrastructure which is key to support Nissan’s long term profitable growth.” [4]
II. Hypothetical view of the Return-on-Investment model used
Before they could calculate their Return on Investment (ROI), Nissan first had to look at the Total Cost of Ownership model proposed by IBM. Total Cost of Ownership (TCO) is a type of calculation designed to help consumers and enterprise managers assess both direct and indirect costs and benefits related to the purchase of any IT component. The intention was to arrive at a final figure that will reflect the effective cost of purchase, overall [8].
The TCO model used, had to calculate the costs that were required, beyond the fees of outsourcing. The organization had to evaluate specific criteria’s that could have added expense to the outsourcing project. They also had to calculate the ongoing expenses throughout the lifetime of the contract [8].
Then, after calculating the payback period, Nissan were in a position to calculate their ROI. Once the numbers were crunched, a thorough financial and risk analysis was conducted. The ROI measured the profit or cost savings realized. It was calculated by estimating, for a 3-year period, the investment was made and the resulting profit created through that investment.
The results were conclusive. Nissan and IBM entered into their agreement and operations scheduled to commence on October 1, 1999.
Conclusion
I. Did Nissan’s BPO reach its stated objective?
Nissan’s stated objective for the outsourcing of the IT infrastructure was to control expenditure, improve efficiencies, and update the infrastructure. By outsourcing to IBM, Nissan achieved all of its goals.
In controlling expenditure, outsourcing gave companies the opportunity to have a predictable monthly budget for expenditure. That amount may or may not have been lower than current expenditures but the component that was crucial to a large organization such as Nissan was that the amount is predictable. There was no variable component to the pricing. The only time the pricing may have fluctuated was when additional services, which were out of scope of the contract, were required.
In Nissan’s case, that was never a requirement. The company was in the first stage of a major, global, restructuring project and there were no new initiatives taking place.
The second objective in the BPO was to improve efficiencies. IBM is the world’s largest information technology company with revenues close to $100 billion [9]. When companies outsource their operations to IBM they are gaining best-of-breed technologies, excellent consultants and some of the best systems architects money can buy.
The way that any global outsourcer makes its money is by achieving economies of scale. The only way to achieve these economies of scale is to ensure that they deploy the best hardware, software, and infrastructure possible and make that equipment work to maximum efficiencies. By taking full advantage of this best-of-breed technology, Nissan met its second and third stated objectives.
II. What if the IT Infrastructure had been retained in-house?
If Nissan had decided to retain its IT infrastructure in-house and attempted to implement an updated and modernized system, it would have lead to a significant increase in their expenditure. Ghosn’s prime objective, when he took over the company in 1999, was to reduce expenditure by 700 billion Yen [2]. He was not interested in spending any additional money to modernize existing equipment.
To support the intended improvement in competitiveness, Nissan had to ensure that their infrastructure supported the additional workload. There was no way they could do the intended improvement in efficiencies without external support. Nissan did not have the expertise and the additional work force to handle the required upgrades and the reengineering of business processes.
III. Final assessment and summation of the relationship
Robert Greenberg, Nissan’s CIO of North America was on record as saying in 2006 that, “We were happy with the services from IBM but the world had changed.” This comment sums up the relationship as it stands now, almost 8 years later [5]. When Nissan announced its Revival Plan, in 1999, the company had very clear objectives; cut costs, and return to profitability.
Nissan was looking for help in 1999 and IBM fulfilled this role for their IT Infrastructure. Greenberg also stated in his Q&A that “One of the things that also took place with the original outsourcing to IBM was we probably outsourced too much.” [5]
Greenberg was not working for Nissan when the original outsourcing decision was made in 1999; he only joined the company in 2005. He is on record though as saying that he thought that they should have either retained some of the infrastructure in-house or perhaps have multi-sourced, thereby ensuring that they had the best possible solution and price.
In 2006, when the contract came up for renewal, the CIO decided to put everything out to bid and compare what the other vendors were offering with what IBM had provided for so many years. The decision to look at new vendors was actually excellent timing for the company as Nissan had decided to relocate their North American corporate headquarters from Los Angeles, CA to Nashville, TN and any transition could be timed to coincide with the move.
Ultimately, what Greenberg opted to do was to accept IBM’s proposal to “manage desktop systems, network services, help desks, dealer systems, and other key infrastructure elements for Nissan North America.” He then outsourced the application and maintenance to an Indian firm, Satyam and brought the remainder of the services back in-house [5].
When asked about the decision to bring IT back in-house, Greenberg said, “By bringing it in-house you increase the alignment. It’s a matter of building the knowledge internally [that] can be used to help drive the business activity, which is much harder when a business analyst function is sitting within a third party.” [5]
IV. Does the cost of implementing an in-house solution outweigh the benefits or does BPO make more sense?
As Stephen Withers stated in his article, BPO decisions should not be made for cost-cutting exercises but rather for strategic directions [1]. In other words, companies should not view BPO as a cost saving tool. Outsourcing the IT operation makes sense when an organization is looking to improve efficiencies and business processes or when they cannot attract, or retain, the human capital who have the expertise and ability to modernize or improve the infrastructure.
Nissan’s CIO Robert Greenberg thought that he would actually save money by bringing some of the work back in-house because he was “not paying margin on the individual [headcount].” [5]
Some of the individual lessons that Nissan’s Greenberg has learnt from the outsourcing agreement with IBM has been that certain services developed by the IT organization can indeed be outsourced or developed externally. However, he felt strongly about retaining in-house IT skills in such value generation areas as business analysts who have a strong understanding of the business, sometimes even better than the business customer does. Insourcing these skills could result in ideas and dialog with the business, with the end result being a service delivery or product development than can then be outsourced.
In summary, the answer to the question, ‘Does the cost of implementing an in-house solution outweigh the benefits or does Business Process Outsourcing make more sense?’ is that it depends. It depends on the available skills; it depends on the overall objectives (cost saving vs. process improvement) and it depends on the organization. For the most part the majority of major corporations world wide that have been through an outsourcing contract or are in an outsourcing contract will agree that there are substantial benefits to implementing an outsourcing contract and there substantial benefits in retaining those skills in-house. What each organization needs to do is ascertain which of those benefits outweigh the other and base their decision on that analysis.
Works Cited
[1] Withers, Stephen. “BPO: Save money or fix your processes?” ZDNet.com
[http://www.zdnet.com.au/insight/business/soa/BPO-Save-money-or-fix-your-processes-/0],139023749,139156391-10,00.htm 17 August 2004. Downloaded October 22, 2007
[2] Magee, David. Turn Around: How Carlos Ghosn rescued Nissan. New York: HarperCollins Publishers Inc, 2003.
[3] Moynihan, Ann. “Outsourcing enables owner to focus on core business.” http://www.bizjournals.com/albany/stories/2002/10/14/focus10.html October 11, 2002. Downloaded October 22, 2007
[4] IBM Press room press releases. IBM.com “Extending Their Global Partnership, Nissan, and IBM Announce IS Outsourcing for Japan” http://www-03.ibm.com/press/us/en/pressrelease/1670.wss June 19, 2000. Downloaded October 19, 2007
[5] Thibodeau, Patrick. “Q&A: Nissan CIO reshapes automaker’s IT”
[http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=110024&intsrc=industry_list] March 29, 2006. Downloaded October 23, 2007
[7] McDougall, Paul. “IBM, Nissan Outsourcing Deal Spans The Globe” http://www.informationweek.com/outsourcing/showArticle.jhtml?articleID=181502685 March 10, 2006 10:00 AM. Downloaded November 02, 2007
[8] Ikin, Paul. IBM Representative on Nissan Global team. 1998 to 2001.
Vehicle Insurance
One thing is for sure. Everyone who operates a vehicle on the roadways is required to have vehicle insurance. There is no two ways about it. In a lot of cases finding affordable car insurance can be a problem. Like most things these days, the price of vehicle insurance can be quite expensive. However, there are a few things that you can do in order to make sure your insurance payment is as low as possible.
The best place to find affordable auto insurance is online. Shopping for insurance online will allow you to get the best deal possible for your specific circumstances. There are a few variables that can affect the price of vehicle insurance. For starters, the level of coverage that you desire will affect the price. If you want minimum coverage just to be street legal, the price you pay will be less than that if you wanted full coverage. In addition, the part of the country where you live, your age, sex, and your car can all affect the price you will have to pay. When you shop online, all these variables remain in play, but the one variable that does not exist is the agent. Since you are purchasing car insurance directly from the company you can receive prices that are very close to wholesale. This is because there is no need for the insurance company to compensate an agent for your purchase.
Purchasing vehicle insurance is a necessary evil. The trick is using the internet to shop around and receive a price that is affordable.
5 Year Fixed Rate Mortgage Rates
5 year fixed rate mortgage is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as different to loans where the interest rate may change. Other forms of mortgage loans include interest only mortgage, graduated payment mortgage, changeable rate including changeable rate mortgages and tracker mortgages, negative paying off mortgage, and balloon payment mortgage.
Remember that each of the loan categories above except for a direct changeable rate mortgage can have a period of the loan for which a fixed rate may apply.
A Balloon Payment mortgage, for example, can have a fixed rate for the term of the loan followed by the ending balloon payment. Terminology may differ from country to country: loans for which the rate is fixed for less than the life of the loan may be called hybrid changeable rate mortgages.
This payment amount is independent of the additional costs on a home some periods handled in escrow, such as property taxes and property insurance. Therefore, payments made by the lender may change more than period with the adjusting escrow amount, but the payments handling the principal and interest on the loan will remain the same. There are different categories of commercial mortgage is a loan made using real estate as guarantee to secure repayment. Such as 5 year fixed rate mortgage.
A commercial mortgage is related to a residential mortgage, except the guarantee is a commercial building or other business real estate, not residential property. In addition, commercial mortgages are normally taken on by businesses instead of personal lenders.
The lender may be a partnership, incorporated business, or limited company, so assessment of the creditworthiness of the business can be more complicated than is the case with residential mortgages. In 5 year fixed rate mortgage no recourse, that is, that in the event of default in repayment, the borrower can only seize the guarantee, but has no further claim against the lender for any remaining shortage.
The common reason for this is twofold many laws extensively avoid the borrower from going after the lender for any shortage, and mortgages structured for sale as bonds give a higher priority to always receiving some sort of income and therefore require a sentence which permits the lender to take the property instantly, regardless of bankruptcy proceedings that the lender might be going through.
The 5 year fixed rate Mortgage in the in the globe, require the lender to simply make a monthly payment small sufficient to pay off the loan more than a 10 year period, need a balloon payment a total sum after a lesser period.
The lender most likely wills effort at that period to refinance the loan or sell the property. Thus there are two elements usually to the term of a commercial mortgage loan, the length of period allowed until balloon payment known merely as the term, and the paying off.
The length of the loan can vary from a matter of days to 10 years. If a loan had a 10 year paying off schedule, but a 5 year term it would commonly be referred to as a 5 year balloon with a 5 year payment schedule.
Positive Effects of Carbon Dioxide for Plant Growth
Many articles have been written about the negative effects of carbon dioxide. Sick Building Syndrome, loss of concentration due to high levels of carbon dioxide, asphyxiation in breweries or wine cellars, all these things spring to mind when we hear the magic phrase carbon dioxide. Yet, perhaps today when Venus passes across the face of the Sun, we should remember that our original atmosphere consisted of nitrogen and carbon dioxide. Free oxygen is something that is not really chemically possible. Yet we have it as a result of plant life busily photosynthesising and converting carbon dioxide into oxygen during daylight hours. This is the original use of solar energy!
Plants require carbon dioxide to grow and why not help them by increasing the level of carbon dioxide? Normally, this is something that is undesirable, since carbon dioxide is the original greenhouse gas, as our neighbouring planet Venus can testify. But in a controlled, genuine greenhouse environment, there is no real reason why the level of carbon dioxide should not be enhanced in some way.
Indeed, tests have shown that increasing the level of carbon dioxide in a greenhouse to 550 ppm will accelerate plant growth by 30 – 40 %. The natural level of carbon dioxide in the atmosphere is around 450 ppm, having increased from about 250 ppm in the last ice-age, so this slight increase may not appear significant at first sight. The point of the matter is that the level of carbon dioxide in the average greenhouse with the ventilation system closed will drop sharply due to uptake by the plants and will lie around 150 – 200 ppm if nothing is done about it. In summer the ventilation system will be open and the fresh air circulation will augment the level to a useful degree. But what about those long, cold, dark northern winters? Most commercial greenhouses will have lighting and heating systems to encourage plant growth, but you still cannot open the ventilation and allow the cold outside air into your heated greenhouse without losing all the early crops. The only real solution is to augment the natural level of carbon dioxide in some way. Where it is used, the general rule of thumb is to augment by about 1000 ppm when the sun is shining (or all the lights are on!) and keep the level around 400 ppm during times of darkness. This will require monitoring, since there are so many variable factors involved and a simple control unit using an infrared sensor will be able to keep the concentration of gas constant at all times.
Rate of consumption varies with crop, light intensity, temperature, stage of crop development and nutrient level. An average consumption level is estimated to be between 0.12 – 0.24 kg/hr/100 m2 of greenhouse floor area. The higher rate reflects the typical usage for sunny days and a fully-grown crop. This equates to roughly 150 litres of carbon dioxide per hour.
There are many processes that naturally and unavoidably produce carbon dioxide: Fermentation and combustion are two classic examples. In temperate zones it is necessary to heat a greenhouse (glasshouse is just another word for the same thing), and this heating will almost always involve the burning of fossil fuels, producing carbon dioxide. This leads to the natural urge to re-circulate the exhaust gas from the heating system into the greenhouse and so achieve a double advantage for the plants. This will require careful monitoring of the flue gas to ensure that there are at the most only traces of carbon monoxide being passed into the greenhouse. This is not only bad for the plants but also potentially lethal to the people working there! Such technology is available with gas monitors that will measure the carbon monoxide concentration continuously and have analogue outputs that can be used to regulate the burners or operate a trip to switch the unit off should problems occur. The combination of breweries with greenhouse systems is also serious business in some areas. Generally, these methods are to be approved and should really be worthy of government support. Not only are they producing crops, they are removing a pollutant that would otherwise be vented into the atmosphere.
Monitoring of the added carbon dioxide is essential, however, since high concnetrations of carbon dioxide can lead to dizziness or even unconciousness of the personnel. Some plants will require higher levels of nutrients to compensate for some of the changes that occur. Particularly tomatoes and violets are sensitive to increased levels of carbon dioxide, hence the need for constant monitoring of the ambient concentration.
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Get Rid Of Puffy Nipples
The physical condition known as puffy nipples affects nearly one in three males worldwide. Symptoms can start at the onset of puberty, and last far into adulthood. There are many different causes behind puffy nipples and just as many solutions. If you are looking for information about getting rid of puffy nipples is important to first find out what is the cause of the puffy nipples. Naturally, speaking with a qualified physician should be your first course of action, however before speaking with physician first take a small inventory of your life and some of the potential puffy nipple causes so that you and your physician have a good foundation to start the investigation from.
Getting rid of puffy nipples first requires that you get to the core of the problem. A man’s nipple becomes puffy from either increased fat deposits, or enlarged glands behind the nipple area. The puffiness can also be caused as a result of both. To make matters more complicated the fact and the glandular tissue can be intermixed with the fat tissue makes a proper diagnosis and treatment slightly more complicated.
Surgery is the most common, and the most costly solution for getting rid of puffy nipples. Its popularity is due to its near 100% success rate. The most important variable in the success rate of the surgery is choosing a qualified surgeon. When choosing a surgeon for getting rid of puffy nipples be sure to look at before and after photos of their patients. You should not only look at photos taken immediately after the operation, but also photos taken several months after the operation has taken place. This will give you a general idea of the surgeon’s surgical skill, and whether or not they are fully capable of making their work look natural.
With an unskilled surgeon a patient runs the risk of their nipples having a “caved in” appearance. This is a result of poor chest sculpting. When a surgeon removes glandular or fat tissue behind the nipple they must then sculpts the fat and muscle around the nipple to produce a natural shape, otherwise the chest is left looking as deformed as it was before the surgery.
There are also lifestyle causes of puffy nipples. For instance bodybuilders who take steroids in hopes to bulk up on their muscle mass often find that the steroids have a secondary reaction in their body causing puffy nipples. This can either be corrected through surgery, or through hormonal treatment. Starting with the discontinuation of steroid usage.
Adolescent boys are susceptible to puffy nipples because of their wildly swinging hormone levels. This is a natural occurrence that the boys tend to grow out of as their hormone levels become more stable. There is really no reason to treat this condition and adolescent males, as it works out by itself over time; and any treatment may in fact damage their body in the long run as it is not yet fully developed.
There are even cases of pre-adolescent boys developing puffy nipples. The cause of puffy nipples in pre-adolescent boys is attributed to the use of Lavender essential oils. The exact mechanism is unknown, however it is generally agreed upon that Lavender essential oils will cause breast development in young boys; as such it is highly recommended that any cleaning products, soaps, or house products that contain lavender scents or essential oils should be avoided. Luckily getting rid of puffy nipples when caused by lavender oil is very easy; simply discontinue the use of Lavender oil.
These are just a few of the possible causes and ways of getting rid of puffy nipples. If you are one of the many millions of men affected with this condition consult a physician to discuss your case. Using the above information is a guideline you and your physician should be able to pinpoint the root of your problem, and devise a proper treatment solution.
A Review of Popular Snow Blower Products
No job is too small or too big for a snow blower. From the humblest light powdering to the heaviest blizzards, there’s a machine designed to clear the way. Here is a look at several brands of snow blowers and what you should know before making that first purchase.
Toro Snow Blowers
Toro’s 12 single-stage, dual-stage, and electric snow blowers offer a 5-year warranty on their exclusive 2-cycle R*Tech Engine. Most warranties only last 2 years. Other goodies Toro offers: A special trigger for releasing power to the wheels for tight turning action; an omni-directional joystick for mechanically aiming the discharge chute; and a heavy-duty gear case, eliminating the need for shear pins.
Honda Snow Blowers
Honda’s line of ten snow blowers feature logical control layouts and “infinitely variable” drive speeds, allowing you to choose your exact speed in forward and reverse without stopping. Most other snow blowers have 6 forward speeds and 2 reverse speeds. Honda snow blowers all use Honda engines, which focus on fuel economy.
Ariens Snow Blowers
Ariens offers 14 high-quality single- and dual-stage gas snow blowers, plus the unique Power Brush, which is perfect for clearing away light snow and leaves. All Ariens snow blowers have tires that don’t require chains, preventing wear and tear on your driveway. Ariens warranties last 3 years.
MTD Snow Blowers
MTD is a family of outdoor equipment brands, including Troy-Bilt, White Outdoor, Yard Machines, and Yard Man. Yard Machines boasts 14 different gas and electric snow blowers to fit your needs. Troy-Bilt and Yard Man sport the biggest, most powerful machines for the heaviest jobs. White Outdoor offers the most affordable models, ranging from $400 for their single-stage unit to $1,100 for their largest dual-stage thrower.
John Deere Snow Blowers
John Deere contracts Frontier Equipment for their snow blowers. All Frontier Equipment single-stage snow blowers, as well as their smallest dual-stage units, use standard Tecumseh Snow King engines. Their 9 to 13 horsepower units use Briggs and Stratton Intek Snow engines, which are designed for performance in sub-zero temperatures, quick starts, and quiet running. All Frontier Equipment dual-stage snow blowers are optimized for constant carburetor and engine temperatures, with an optional engine block heater.
Murray Snow Blowers
Snapper makes Murray’s snow blowers. They come in all sizes and stages. They only offer 5 forward speeds rather than the standard 6, but their exclusive “Creeper Speed” makes up for it by getting you steadily through some of the tougher portions of the job.
Craftsman Snow Blowers
Craftsman has an exclusive agreement with Sears whereby Sears both sells and services Craftsman snow blowers. This is desirable because Sears’s technicians where you bought your machine know the machine inside and out. Craftsman snow blowers use Briggs & Stratton for their smaller engines and Tecumseh for their larger engines. Newer Craftsman snow blowers are made by AYP or Murray.
Simplicity Snow Blowers
By design, Simplicity snow blowers are anything but. Their 11 models boast such extras as a special handle for releasing power to the right wheel, allowing for turning on a dime; a snow depth and density sensor that automatically adjusts power to the auger and impeller; and a Briggs & Stratton Intek Snow engine, which is built for subzero temperatures, quick starts, and quiet running.
What If I Need A Student Loan But I Have Bad Credit?
There is a lot of expertise needed to achieve this when you have bad credit and you might want to consider looking for professional aid but if you feel confident, there are things you can do on your own.
Bad credit is always an obstacle when you need finance. Lenders won’t grant money to someone they think won’t be able to repay it and that’s what bad credit tells them.
Thus, further assurance of repayment needs to be offered in order to convince them. The key is to use the benefits of certain types of loans to your advantage and find a way out whenever a loan turns out too onerous.
Government Loans For Students Do Not Consider Credit Score or History
Those loans for students that are granted by the government do not consider credit score or history as a variable for approval. This is due mainly to the fact that those who apply for these loans have no credit history at all but also because these loans are meant for helping those going through underprivileged situations to pay their way through college and graduate.
Stafford loans (granted by the US department of education) and Perkins loans which are also granted by the federal government but are assigned according to the needs of the applicants and not on a first arrived first served basis are examples of the above. As long as there are no records of non-attendance of federal loans, your credit score and history won’t be an obstacle to obtaining a federal student loan.
PLUS Loans When The Money Granted Is Not Enough
PLUS loans are meant to fill a gap that turns federal loans into an imperfect financial source. Federal loans presuppose that the applicant will have aid from family members and thus, the amount of money granted usually doesn’t cover for all the costs of college studies. PLUS loans are granted to parents to let them help with their children college payments.
PLUS stands for Parent Loan For Undergraduate Students and are low interest loans for parents that let them borrow up to the full cost of their children education as long as there are no other financial aid in which case, the amount of additional aid must be deducted from the overall PLUS loan available amount. These loans require credit checks, but the credit report that will be verified is the parents’ and not the student’s.
Private Bad Credit Student Loans And Consolidation
Sometimes federal loans are simply not enough and you need to resort to private funding. PLUS loans are an option but are not always available if parents don’t meet the income or credit requirements. Bad Credit Private Student Loans are available as well as No Credit loans, only critical delinquencies like default or bankruptcies can prevent you from getting finance if you can afford it.
However, you need to bear in mind that the cost of financing will be higher with bad credit and that whenever possible you should consolidate your student debt if you can obtain a lower interest rate due to an improvement on your credit score and history.
Cheap Places to Retire Overseas
In the quest to find a cheap place to retire overseas one might come across various reports stating that so and so country is one of the best places to retire. It might be the best place to retire for that particular writer, but will it be good for you? The vast majority of us would like to live a simple, healthy, happy, and comfortable life especially after retirement. Let’s look at some basic criteria to consider when looking for cheap places to retire overseas. We are not recommending regions, but based on the tips stated in here, you will be able to come up with intelligent decisions.
Many people retire due to the age factor, while some of them even take an early retirement voluntarily… wouldn’t that be nice!! With the progress of time, one’s age becomes a major consideration and determining factor for where you can move and retire to. The climate of the retirement destination city plays an important role while deciding the cheap places to retire overseas. It will be disheartening to go to some unknown country and spend the rest of the days on medicines. It’s good to choose a region that has a good climate with sunny days and moderate rainfall all throughout the year.
One of the primary reasons why people look for cheap places to retire overseas is to reduce their current cost of living. $500 might be insufficient to exist in the United States, but it is more than ample to live lavishly in Panama. Please note that the previous comparison was just an example. There are many places available in this segment where you will be able to live comfortably without breaking the bank. Entering and exiting the country must be fast. In other words, the rules of entry must be lenient and retiree friendly. Retirement is a peaceful part of one’s life. One does not like to spend his retirement days walking through the embassy halls every day and fighting with government officials trying to get their papers and visas in order.
The next in the list are the facilities that have been made available in the medical industry in the country where you are planning to spend the rest of your days. There is no use staying in a country where you will be charged $5000 for doing a complete checkup. Always keep this in mind while choosing the cheap places to retire overseas. At first, it might seem impossible to find a place with low cost but efficient medical facilities, but once you dig a little deeper, plenty of options will materialize in front of you.
The place chosen must be safe and must have a relatively low crime rate. Do not opt for a place, where there is a high chance of you being mugged every time you step into the dark shadows of the alley. Who wants that? It is true that criminals can be found in every part of the globe so be realistic in what you look for. However, it is also true that criminals are lower in number in some parts than others. While looking for a suitable retirement abode it is always encouraged to look out for a place where there are expatriates from your native country. Chances are high that you might meet some of them, spend some quality time with them, develop long lasting friendships and learn firsthand what life is like as an expat living abroad. Your retirement is an adventure waiting to happen, first studying up on some of these basic factors will prevent it from becoming a “mis” adventure!
Top 10 Travel Tips To Help You Book A Dirt Cheap Flight
Smart travelers don’t sit in a travel agents office to plan their vacations anymore, they go to travel websites to find discount airfare deals and book their own cheap flights. Airline carriers are at war and smart consumers who know the secrets to finding great online travel deals, can take advantage of this instability and save hundreds on their plane tickets.
Despite what you may have heard, tickets on flights are not sold at a fixed rate. Most airlines have a complex grading system in place for ticket prices. They have a set number of seats they must fill for a certain price and a second block of seats they will let go for a slightly cheaper ticket price and third set of seats for a another discounted ticket price. So, at any given time when you try to buy online airline tickets, you could come up with a number of different prices.
The secret to dirt cheap airfare, is knowing exactly when, where and how to buy the tickets. Timing is everything when it comes to finding cheap airfare. Should you buy your tickets one, two or six months before your desired departure date? Will you save more by purchasing round trip tickets or one way flights? Should you travel on or off season, and exactly when are the popular flight travel seasons? And finally, should you buy your plane tickets through a discount travel site, or through a popular travel search directory like Expedia or Travelocity?
Your first tip to find cheap airfare is to check out several travel directories that offer price results for all the major airlines so that you can compare ticket prices at a glance. My favorites are Expedia.com for their consistently low flight price quotes and easy two click price checks, Cheaptickets,com for their large inventory of cheap airfare selections and sidestep.com for their huge selection of customized flight results. As a traveler you need to log on to these websites and get a feel for how often the prices change and bookmark them for future use.
Airlines and travel websites offer bigger discounts and cheaper airfare prices to people who book online because it saves them the overhead costs of printing and handling a paper ticket. So be sure to use the e-ticket option when purchasing your plane tickets online. Don’t wait till the last minute though, the best cheap airfare prices are found about 21 days before your departure date.
The highest plane ticket prices are found 14 days or less before departure, so don’t wait till the last minute to buy your ticket if you’re hoping to find discount airfare. But keep in mind that many airlines give away dirt cheap plane tickets about half an hour before liftoff.
Be sure to purchase round trip tickets rather than one way, the best cheap airfare deals are usually offered to round trip travelers.
Cheap flights during the holidays can be hard to find, the secret is to fly the day of the holiday not the day before or after when flights are jam packed.
You can save even more money on airfare if your plan your vacation during the off season. Travel professionals say that the best time to book a cheap flight online is mid-January to end February, April through May, and in the fall from mid-September to mid-December.
The time of day that you book online plane tickets is important too. If you checked plane ticket prices at 6 am and then again at 6 pm on the same travel website, you’d be shocked to find that you just lost 20 or 30 bucks by waiting too long or not long enough. Another variable that is imperative to finding dirt cheap flights is, the day of the week you make your online ticket purchase. Most traveler’s purchase their tickets on a Saturday or Sunday, but is that the smartest day to get dirt cheap airfare?
The Lowdown on American Standard Air Conditioning Prices
American Standard air conditioning prices are not very expensive. It even offers top-notch quality and service. American Standard manufactures the most reliable and comfortable units for its customers. Buying this brand of air conditioner offers several advantages; it lets the customer stay cool and helps save a lot of money with its efficient usage of energy.
There are several American Standard models that you can choose from in the market. They vary with respect to their SEER value or the Seasonal Energy Efficiency Ratio value. This ratio is an important measure to the efficiency of the cooling factor of a specific heat pump or an air conditioner. It has the highest efficiency among the air conditioners available in the market.
Its efficiency factor ranges from the SEER value of 13 to the SEER value of more than 18. This is the best rating for air conditioners available in the market. Due to this factor, many customers usually buy the American Standard. It gives comfort of cooling that customers look for in their homes. It is the most effective conditioner out in the market.
One of the best models of the American Standard air conditioning system is the Allegiance unit. It has a SEER rating of 18, which is the maximum efficiency and cooling rating.
Conditioners of the American Standard have a two stage cooling system that helps you save up to 60% on your energy bills. It includes AccuLink connectivity for greater control and convenience. The AccuLink communicating system allows the cooling device to automatically communicate and coordinate with your other system components. It is very efficient and very quiet.
It also has a charge assist; charging simplifies service and improves system refrigerant charge accuracy. It has the highest efficiency among the industry; significantly surpassing government efficiency standards and helping you save on your energy bills while reducing greenhouse gas emissions. It also contains two compressors that provide two stage cooling, running at an energy saving 50% capacity most of the time, which may help lower your cooling bills. It runs quietly and keeps temperature even from room to room with its variable speed fan motor.
It also comes with an environment friendly refrigerant that is ozone free. It also removes unwanted humidity from the air, leaving you feeling cooler and more comfortable. It provides more efficient and reliable cooling due to the durable woven spine fin coil and dual duration compressors. It also has a rust resistant coating, screws and base pan that protect your system from elements.
There are also deals on American Standard air conditioning prices that you can find. There are units of these models that are sold at around $1700. They even come with a strong warranty service and qualify for a rebate. American Standard offers the best product, best price, best warranty, best payment plan and the best customer service you can find. They also have independent companies that will give you the best deal and will even give you a free home estimate.
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