internal revenue generation and utilization
DESCRIPTION
Engineering institutions have trained faculty and installed modern resources. The employees of various organizations need to be exposed to the advances in their branches. Also, the return on the investment on faculty and equipment could be maximum when the institutes develop programs for the utilization. The institutions can update their resources through internally generated funds. The process of developing the funds is presented.TRANSCRIPT
INTERNAL REVENUE INTERNAL REVENUE GENERATION AND GENERATION AND
UTILIZATIONUTILIZATION
Dr. V. ThanikachalamDr. V. Thanikachalam
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What is Internal Revenue What is Internal Revenue (IR)?(IR)?
Revenue generated by the faculty / Revenue generated by the faculty / staff using their expertise, staff using their expertise, equipment, labs/ workshop equipment, labs/ workshop resources, space and infrastructure resources, space and infrastructure through consultancy services to the through consultancy services to the industry, government, and to the industry, government, and to the society at large.society at large.
Why do you need IRG?Why do you need IRG?A proof for outstanding super leadershipA proof for outstanding super leadership- IntegrityIntegrity- Good Judgment on the expertise Good Judgment on the expertise - High Competence and creating an impactHigh Competence and creating an impact- Far reaching vision and missionFar reaching vision and mission• Participative behaviorParticipative behavior• Increasing faculty morale and motivationIncreasing faculty morale and motivation• Commitment for excellenceCommitment for excellence
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Fulfilling Institute‘s Fulfilling Institute‘s Obligations to StakeholdersObligations to Stakeholders
Technology development Technology development Fairness Fairness Accountability to society Accountability to society Respect for trustRespect for trustResponsibility for creating outstanding Responsibility for creating outstanding
performanceperformance Integrity Integrity Human resourcesHuman resourcesGovernance Governance
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Values Values Creation of Centers of ExcellenceCreation of Centers of ExcellenceDelegation of decision making Delegation of decision making
authority with respect to projects to authority with respect to projects to the outstanding key facultythe outstanding key faculty
Strengthening the performance of the Strengthening the performance of the departments/ units/ centersdepartments/ units/ centers
Rewarding the outstanding behavior of Rewarding the outstanding behavior of the facultythe faculty
Reinforcing the Industry-Institute-Reinforcing the Industry-Institute-Partnership Partnership
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Why should we generate Why should we generate Internal Revenue (IR)?Internal Revenue (IR)?
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Institutional needs to generate Institutional needs to generate Internal Revenue:Internal Revenue:
Grants-in-aids from the state / central Grants-in-aids from the state / central governments are not sufficient for the growth governments are not sufficient for the growth of the institutes in emerging areasof the institutes in emerging areas
There is an upper limit on the fixing the There is an upper limit on the fixing the tuition fees to be paid by the students.tuition fees to be paid by the students.
There is a limit on the fixing the special fees.There is a limit on the fixing the special fees. The expenditure to develop the infrastructure The expenditure to develop the infrastructure
and maintain the equipment is to be further and maintain the equipment is to be further met from the Internal Revenue generatedmet from the Internal Revenue generated
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What are the societal needs What are the societal needs of the institute services?of the institute services?
To get benefits of the technical services from the To get benefits of the technical services from the institutes.institutes.
To economize the cost of similar services which To economize the cost of similar services which are available from the profit making are available from the profit making organizations.organizations.
To improve performance of industries using the To improve performance of industries using the consultancy services that are available from the consultancy services that are available from the institutes.institutes.
To jointly develop intellectual propertiesTo jointly develop intellectual properties To reduce the creation of additional To reduce the creation of additional
organizationsorganizations To optimize the resources and expenditure. To optimize the resources and expenditure.
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How could you plan for the How could you plan for the generation of Internal generation of Internal
Revenue?Revenue?
Best practiceBest practiceProviding information publiclyProviding information publicly Involving faculty in decision makingInvolving faculty in decision makingListening to feedback and complaintsListening to feedback and complaintsEvaluating faculty attitudes and Evaluating faculty attitudes and
behaviors behaviors
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Plans for generation of Internal Plans for generation of Internal RevenueRevenue
By conducting research and development By conducting research and development projects which are sponsored by the government, projects which are sponsored by the government, industries, and international development and industries, and international development and funding agencies.funding agencies.
By conducting sponsored training programs for By conducting sponsored training programs for the working professionals.the working professionals.
By improving the engineers’ competencies in By improving the engineers’ competencies in managing the changes in the manufacturing managing the changes in the manufacturing process.process.
In assisting them to improve their performance in In assisting them to improve their performance in reducing the cost of production, improving the reducing the cost of production, improving the quality of products and gaining the market share.quality of products and gaining the market share.
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What are the problems in What are the problems in undertaking such programs undertaking such programs
and projects?and projects?
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Some of the existing problems in Some of the existing problems in the Institutes:the Institutes:
Lack of administrative policies and norms for Lack of administrative policies and norms for faculty and staff commitment towards Internal faculty and staff commitment towards Internal Revenue generation.Revenue generation.
Absence of consensus on the vision and mission of Absence of consensus on the vision and mission of technical institutions by the Educational technical institutions by the Educational Administrators.Administrators.
Lack of targets for generating the Internal Lack of targets for generating the Internal Revenue.Revenue.
Absence of integrated plans for Internal Revenue Absence of integrated plans for Internal Revenue and human resources required.and human resources required.
Licensing the projects to outside commercial Licensing the projects to outside commercial agencies.agencies.
Not circulating the external enquiries to the Not circulating the external enquiries to the faculty.faculty.
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What are the technical What are the technical difficulties in planning difficulties in planning
appropriate industry specific appropriate industry specific projects?projects?
Planning industry specific Planning industry specific projectsprojects
Do you have competent faculty?Do you have competent faculty?Have you conducted research studies in Have you conducted research studies in
the current industrial problems ?the current industrial problems ?Have you conducted development Have you conducted development
training and programs for the faculty ?training and programs for the faculty ?Have you established centers for Have you established centers for
excellence?excellence?Have you to established Industry-Have you to established Industry-
Institute Partnership CenterInstitute Partnership Center1515
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HOW DO YOU MAINTAIN THE HOW DO YOU MAINTAIN THE TOTAL QUALITY IN INDUSTRY TOTAL QUALITY IN INDUSTRY
SPECIFIC PROJECTS?SPECIFIC PROJECTS?
??
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Some of the existing technical Some of the existing technical difficultiesdifficulties
Lack of technical expertise in their field of Lack of technical expertise in their field of specialization.specialization.
Insufficient number of faculty / staff.Insufficient number of faculty / staff. Lack of expertise for preparing the project bid Lack of expertise for preparing the project bid
document.document. Lack of administrative approval for getting the Lack of administrative approval for getting the
clearance from the CEO or Board of Governors.clearance from the CEO or Board of Governors. Lack of norms for permitting the Institute to Lack of norms for permitting the Institute to
undertake the projects by the Government.undertake the projects by the Government. Long delay in getting approval from the Long delay in getting approval from the
concerned ministry.concerned ministry. Lack of policy in permitting the Institute in Lack of policy in permitting the Institute in
bidding the externally funded project.bidding the externally funded project.
Best PracticeBest PracticeTo obtain clarity about what needs to To obtain clarity about what needs to
happen to achieve and sustain the happen to achieve and sustain the changes or outcomes that want to be seenchanges or outcomes that want to be seen
Mapping the outcome pathways to Mapping the outcome pathways to successsuccess
Identify who can influence these outcomes Identify who can influence these outcomes positively positively
Mapping to ecosystemMapping to ecosystemSet framework for identifying impactSet framework for identifying impact
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Getting an expert view on Getting an expert view on potential for impactpotential for impact
Are we addressing critical opportunities Are we addressing critical opportunities and the needs in the state/ nation?and the needs in the state/ nation?
Have we devised appropriate strategies Have we devised appropriate strategies for using these opportunities and for using these opportunities and meeting these needs?meeting these needs?
Have we effectively implemented our Have we effectively implemented our strategies?strategies?
What should we consider doing What should we consider doing differently in the future?differently in the future?
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2020
TQM IN INDUSTRY SPECIFIC TQM IN INDUSTRY SPECIFIC PROJECTSPROJECTS
Industrial Skill StandardsIndustrial Skill Standards Upgrading the Faculty Staff Competencies Upgrading the Faculty Staff Competencies Instructional Design to Inculcate Instructional Design to Inculcate
CompetenciesCompetencies Formative EvaluationFormative Evaluation ImplementationImplementation Periodical Monitoring and EvaluationPeriodical Monitoring and Evaluation Continuous Learning Process Continuous Learning Process
ImprovementImprovement
Excellence modelExcellence modelOffers a self-assessment framework Offers a self-assessment framework
for measuring the strengths and for measuring the strengths and areas for improvement of an areas for improvement of an institution across all activities.institution across all activities.
Excellence model focuses on what an Excellence model focuses on what an institution does, or could do, to institution does, or could do, to provide an excellent service or provide an excellent service or product to its clients, stakeholders.product to its clients, stakeholders.
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Outcome mappingOutcome mappingMethodology that can be used to Methodology that can be used to
create planning, monitoring, and create planning, monitoring, and evaluation mechanisms enabling evaluation mechanisms enabling institutions to document, learn from, institutions to document, learn from, and report on their achievements.and report on their achievements.
Designed to assist in understanding an Designed to assist in understanding an institution’s results institution’s results
Recognize the contributions by faculty Recognize the contributions by faculty members in achieving sustainable members in achieving sustainable large scale improvements.large scale improvements.
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What are the problems in What are the problems in sharing the Internal sharing the Internal Revenue generated?Revenue generated?
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Some of the problems in sharing Some of the problems in sharing IRGIRG
Absence of norms for sharing the gains in the Absence of norms for sharing the gains in the Institute.Institute.
Absence of norms fixing the remunerations / fees Absence of norms fixing the remunerations / fees for the external resource persons.for the external resource persons.
Absence of guidelines to invest the revenue Absence of guidelines to invest the revenue generated in the Separate Account.generated in the Separate Account.
Absence of guidelines to invest the revenue Absence of guidelines to invest the revenue generated in the industrial / government generated in the industrial / government securities.securities.
Absence of expertise in the investment in shares, Absence of expertise in the investment in shares, debentures, bonds and government securities.debentures, bonds and government securities.
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Is there any unethical Is there any unethical problem in utilizing the problem in utilizing the
Internal Revenue Internal Revenue generated?generated?
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Some unethical problems in Some unethical problems in utilizing the Internal Revenue utilizing the Internal Revenue generatedgenerated
Wide spread corruption in many institutes.Wide spread corruption in many institutes. Not sharing the gains with the networked Not sharing the gains with the networked
institutes who contributed to the successinstitutes who contributed to the success Not paying the remuneration to the faculty Not paying the remuneration to the faculty
who worked in the project.who worked in the project. CEO takes “lion’s share” of the gain.CEO takes “lion’s share” of the gain. Including non-performing external Including non-performing external
members in the project team and granting members in the project team and granting disproportionate share to them.disproportionate share to them.
False bills and siphoning the project grants.False bills and siphoning the project grants.
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What are other the pre-What are other the pre-project difficulties in getting project difficulties in getting
the external projects?the external projects?
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Some of the pre-project difficultiesSome of the pre-project difficulties Paucity of funds to take up preliminary Paucity of funds to take up preliminary
activities like getting the bid documents, bid activities like getting the bid documents, bid preparation, attending negotiation meeting, preparation, attending negotiation meeting, getting bank guarantee for the project funds getting bank guarantee for the project funds received.received.
Insufficient infrastructure to meet the project Insufficient infrastructure to meet the project work.work.
Absence of project specific staff.Absence of project specific staff. Lack of trained faculty and staff for the Lack of trained faculty and staff for the
preparation of technical and financial preparation of technical and financial proposal.proposal.
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What are the factors that What are the factors that contribute to the success of contribute to the success of
the IRG Projects?the IRG Projects?
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Factors that contribute to the Factors that contribute to the success of the IRG Projectssuccess of the IRG Projects
Clear understanding of Terms of References Clear understanding of Terms of References (TOR) of the consultancy projects and testing (TOR) of the consultancy projects and testing services.services.
Development of appropriate technical Development of appropriate technical proposal based on the terms and references proposal based on the terms and references of the project.of the project.
Utilization key resource person’s expertise.Utilization key resource person’s expertise.Unambiguous M.O.Us. with networked Unambiguous M.O.Us. with networked
institutes / technical experts / organizations.institutes / technical experts / organizations.Commitment by the networked partners.Commitment by the networked partners.
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How do you facilitate How do you facilitate success in completing success in completing
the IRG projects?the IRG projects?
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Facilitating success in completing Facilitating success in completing the IRG projects:the IRG projects:Efficient strategies with economical Efficient strategies with economical
costing of the project.costing of the project.Cooperative working teams.Cooperative working teams.Commitment to quality at every stage.Commitment to quality at every stage.Continuous monitoring on the progress Continuous monitoring on the progress
made.made.Delegation to the project leader.Delegation to the project leader.
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How do you save your How do you save your efforts in undertaking efforts in undertaking
projects?projects?
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Saving efforts in undertaking Saving efforts in undertaking projects:projects:
Work within the Terms of Reference.Work within the Terms of Reference. Innovative approaches to solve the Innovative approaches to solve the
problems faced during execution.problems faced during execution.Cost control through value analysis.Cost control through value analysis.
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What are the follow up What are the follow up works in the works in the
externally funded externally funded projects?projects?
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Possible follow up Possible follow up works:works:
Replacement of course materials.Replacement of course materials.Up-gradation of course materials.Up-gradation of course materials.Maintenance of models.Maintenance of models.Training to the staff.Training to the staff.Any other specific project related Any other specific project related
activity.activity.
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What would be the cost of the What would be the cost of the follow up work? follow up work?
It is NOT FREE.It is NOT FREE. It is to be based on current market It is to be based on current market
cost for the materials, travel cost, cost for the materials, travel cost, fees to the personnel.fees to the personnel.
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Is there any guarantee Is there any guarantee period?period?
??
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Guaranty PeriodGuaranty Period It depends on the project.It depends on the project. It would be as per the terms of It would be as per the terms of
reference.reference. It may be assuring the quality and It may be assuring the quality and
maintenance of the equipmentmaintenance of the equipmentAttending to breakdownsAttending to breakdowns
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What are other follow What are other follow up works after the up works after the completion of the completion of the
project?project?
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Other follow up worksOther follow up worksSettlement of accounts after completion Settlement of accounts after completion
of the project.of the project.Release of bank guaranty.Release of bank guaranty.Payment of income tax, if the income Payment of income tax, if the income
from the project is NOT exempted.from the project is NOT exempted. If the income is exempted, getting If the income is exempted, getting
refund of the tax paid through filing tax refund of the tax paid through filing tax returns.returns.
Creation of funds for follow up.Creation of funds for follow up.
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What are the Enabling What are the Enabling Factors for Generating IRG?Factors for Generating IRG?
??
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Enabling factors for generating the Enabling factors for generating the Internal RevenueInternal Revenue
Clear policy on the need, target, and Clear policy on the need, target, and process of generating Internal Revenue.process of generating Internal Revenue.
Timely approval by the CEO and the Timely approval by the CEO and the Governing Council / Board of Governors.Governing Council / Board of Governors.
Creation of internal climate and supportive Creation of internal climate and supportive administrative environment.administrative environment.
Empowering the project team.Empowering the project team. Delegating authority to the project leader.Delegating authority to the project leader. Recognition of the contribution by the team.Recognition of the contribution by the team.
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Strategies to overcome shortages Strategies to overcome shortages in project focused resource in project focused resource personspersonsNetworking with experts of government Networking with experts of government
departments, national / state research departments, national / state research laboratories, experts from higher laboratories, experts from higher education/universities.education/universities.
Formation of consortium.Formation of consortium.Contribution to the technical proposal.Contribution to the technical proposal.Contribution to the financial proposal.Contribution to the financial proposal.
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Impact of no interaction with Impact of no interaction with industries on the economyindustries on the economy
Under utilization of resources and faculty Under utilization of resources and faculty expertise.expertise.
Inability to use synergy.Inability to use synergy. Limited contribution to human capital Limited contribution to human capital
development.development. Limited contribution to knowledge Limited contribution to knowledge
development.development. Less impact on economy and GDP.Less impact on economy and GDP. Retardation in industrial productivity.Retardation in industrial productivity. Increase in industrial sickness.Increase in industrial sickness.
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Impact of no interaction with Impact of no interaction with industries on the institutesindustries on the institutes
Increase in gap between the faculty and the Increase in gap between the faculty and the industry.industry.
Faculty burn out.Faculty burn out. Lack of knowledge on current industrial trends.Lack of knowledge on current industrial trends. Lack of research projects to improve the Lack of research projects to improve the
products / processes.products / processes. Lack of industry specific curriculum in Lack of industry specific curriculum in
engineering and technology.engineering and technology. Lack of optimum utilization of equipment and Lack of optimum utilization of equipment and
resources.resources. Obsolete instructional practices.Obsolete instructional practices.
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Impact of no interaction with Impact of no interaction with the industry on studentsthe industry on students
Shortage of exposure to current industries.Shortage of exposure to current industries. Shortage of skills and competencies.Shortage of skills and competencies. De-motivated students.De-motivated students. Increase in underemployment.Increase in underemployment. Increase in frustration.Increase in frustration. Lack of the job training.Lack of the job training. Lack of real life experience.Lack of real life experience.
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Impact of no interaction with industries Impact of no interaction with industries on the modernization and institutional on the modernization and institutional developmentdevelopment
Institutional development is very much constrained.Institutional development is very much constrained. Duplication of resources at national cost.Duplication of resources at national cost. Under utilization of resources and infrastructure.Under utilization of resources and infrastructure. Added financial burden on the government for Added financial burden on the government for
modernization of laboratories / workshops.modernization of laboratories / workshops. General content driven curriculum.General content driven curriculum. Lack of innovation in the project work, and Lack of innovation in the project work, and
laboratory work of the studentslaboratory work of the students Adding burden to industry to train the new recruits.Adding burden to industry to train the new recruits. Increase in the cost of production.Increase in the cost of production. Less return on investment.Less return on investment. Less contribution to the industrial innovation.Less contribution to the industrial innovation.
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What are the far reaching advantages in What are the far reaching advantages in generating internal revenue by the generating internal revenue by the institutions?institutions?
Obtaining industry sponsored research and development Obtaining industry sponsored research and development projects / programmes.projects / programmes.
Exposed to the current industrial problems.Exposed to the current industrial problems. Developing appropriate programmes to meet the Developing appropriate programmes to meet the
industrial challenges.industrial challenges. Becoming self-supporting departments.Becoming self-supporting departments. Modernizing the departments, laboratories, and Modernizing the departments, laboratories, and
workshops.workshops. Generation of adequate funds for assistantships to the Generation of adequate funds for assistantships to the
students.students. Developing close link with industry, government and Developing close link with industry, government and
community.community. Reaching the state of excellence.Reaching the state of excellence. Patenting the innovative products.Patenting the innovative products. Generation of funds for further growth.Generation of funds for further growth.
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Sustenance of Institutional Sustenance of Institutional DevelopmentDevelopment
Sustenance of institutional development Sustenance of institutional development through road map to meet the challenges through road map to meet the challenges of knowledge development.of knowledge development.
Retention of qualified, creative and Retention of qualified, creative and talented faculty.talented faculty.
Utilizing the opportunities for up-grading Utilizing the opportunities for up-grading current and future technologies.current and future technologies.
Contribution to human capital Contribution to human capital development.development.
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Ultimate GoalUltimate GoalDevelop innovative projects.Develop innovative projects.Stay fit.Stay fit.Sustain the industrial growth.Sustain the industrial growth.Create centers of excellence.Create centers of excellence.Contribute to GDP.Contribute to GDP.Contribute to knowledge Contribute to knowledge
development.development.Contribute to Human Capital Contribute to Human Capital
Development.Development.
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Good luck for your efforts in Good luck for your efforts in IRG IRG