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OPERATION
MANAGEMENT
Answer
the question in one line.
Q1.
Suzan
has a part-time “cottage-industry” producing seasonal plywood yard ornaments
for resale at local craft fairs and
bazaars.
She currently works a total of 4 hours per day to produce 10 ornaments. a. What
is her productivity? b. She
thinks
that by redesigning the ornaments and switching from use of a wood glue to a
hot-glue gun she can increase her
production
to 20 ornaments per day. What is her new productivity? c. What is her
percentage increase (or decrease) in
productivity?
(10
marks)
Q2.
Ahmet
grows domatoes in his 100 by 100 meters garden. He then sells the crop at the
local farmer’s market. Two
summers
ago, he was able to produce and sell 1200 kgs of tomatoes. Last summer, he
tried a new fertilizer that
promised
a 20% increase in yield. He harvested 1350 kgs. Did the fertilizer live up to
its promise?
(10
marks)
Q3.
Ahmet
Uslu makes wooden boxes in which to ship motorcycles. Ahmet and his three
employees invest 40 hours per day
making
the 120 boxes. a. What is their productivity? b. Ahmet and his employees have
discussed redesigning the
process
to improve efficiency. If they can increase the rate to 125 per day, what would
be their new productivity? c. What
would
be their increase in productivity?
(10
marks)
Q4.
Magusa Metal Works produces cast bronze valves on an assembly line. On a recent
day, 160 valves were produced
during
an 8-hour shift. Calculate the productivity of the line. (10 marks)
Q5.
Describe briefly the steps to develop a forecasting system. (10 marks)
Q6.
Describe briefly the “Delphi Method”. (10 marks)
Q7.
What is production/operations? (10 marks)
Q8.
What factors distinguish between production and service operations? (10 marks
GENERAL
MANAGEMENT
Answer
the question in one line.
Q1.
Define management. What are the characteristics of management? (10 marks)
Q2.
Is management an art, science and profession (10 marks)
Q3.
What are the steps in decision making? (10 marks)
Q4.
Define organization Explain the classical theory of organization (10 marks)
Q5.
What are the prerequisites for effective Human resource planning? (10 marks)
Q6.
How to forecast human resource demand? (10 marks)
Q7.
What are the sources of recruit? (10 marks)
Q8.
What are the types of employment tests? (10 marks
MARKETING MANAGEMENT
Answer
the question in one line.
Q1.
Define marketing and explain how marketing has evolved to the current state as
it is practiced? (10 marks)
Q2.
What is Marketing planning? And what are the steps involved in corporate
planning process? (10 marks)
Q3.
What is Importance of Marketing as a subject of study? (10 marks)
Q4.
State and explain the contents of a Marketing plan? (10 marks)
Q5.
what is Marketing management process? (10 marks)
Q6.
What r the Steps in demand forecasting? (10 marks)
Q7.
What are main Elements of Branding? (10 marks)
Q8.
what are main Objectives of Pricing Policies?
BUSINESS
COMMUNICATION
Answer
the question in one line.
Q1.
What is a bad news message? (10 marks)
Q2.
What do you understand by the phrase ‘Readers responses are sharpened by
Situation’? (10 marks)
Q3.
Differentiate between Direct and Indirect Approach? (10 marks)
Q4.
What are the basic strategies for writing bad-News Messages? (10 marks)
Q5.
Define the term ‘Stylistic Accuracy’. (10 marks)
Q6.
What is resume deception and personal data in resume writing? (10 marks)
Q7. Why
is a claim letter written? (10 marks)
Q8.
Define communication. Discuss the importance of communication with reference to
an individual and an organization. (10 marks
Subject:- HOTEL MANAGEMENT
Q1)
What are the minor operating departments of a hotel? Explain each.
Q2)
What are the basic principles in requisitioning guest and cleaning supplies?
Q3)
Write short notes on the following (Any 2)
a) Role
of the housekeeping control desk.
b) Lost
and found procedure
c)
Responsibilities of the Public area supervisor.
Q4) How
can we reduce physical stress?
Q5)
What are the types of notices in a house keeping operation?
Q6) How
do small hotels survive?
Q7)
Explain briefly what services dos a franchisor provide to a franchisee?
Q8)
Explain the role of maintenance (engineering department)?
Q9)
Discuss the relationship between management and supervisors?
Q10) Explain the meaning
of the various occupancy codes?
INTERNATIONAL
BUSINESS
Answer
the question in one line.
Q1. How
do differences in culture affect in international business? (10 marks)
Q2.
Write a detailed note on foreign direct investment (10 marks)
Q3.
Explain theory of global competitiveness alignment (10 marks)
Q4.
Explain global human resource management (10 marks)
Q5.
Explain five features of globalization (10 marks)
Q6.
What is agricultural & village industry facility in special focus
initiatives? (10 marks)
Q7.
What is cost & freight (CFR)? (10 marks)
Q8.
What is DDU? (10 marks
ORGANIZATIONAL BEHAVIOUR
Answer
the question in one line.
Q1.
Discuss three different criteria for ethical decision making (10 marks)
Q2.
What is self-efficacy? (10 marks)
Q3.
Explain the three job redesign options. (10 marks)
Q4.
Discuss whether there are gender differences regarding emotions (10 marks)
Q5.
What is team efficacy? (10 marks)
Q6.
What is communication apprehension? (10 marks)
Q7.
What are the key dimensions that underlie the concept of trust? (10 marks)
Q8.
What are defensive behaviors? (10 marks)
PRINCIPLE
AND PRACTISE MANAGEMENT
Answer
the question in one line.
Q1.
Explain different roles of a manager. (10 marks)
Q2.
Distinguish between management and administration. What is an importance of
management? (10 marks)
Q3.
Which are the skills are required by a manager? (10 marks)
Q4.
a)What are the important features of Bureaucratic administration? b)State its
contributions and limitations. (10 marks)
Q5.
Define a management (10 marks)
Q6.
Comment on a true nature of management. Is it a science or an art? (10 marks)
Q7.
a)Why Taylor is regarded as the Father of Scientific Management? b)State the
limitations of Scientific Management. (10 marks)
Q8.
a)What are the important features of bureaucratic administration? b)Describe
its dysfunctional consequences.
SUBJECT: SUPPLY CHAIN
MANAGEMENT
Total Marks: 80
CASE - 1 (20 Marks)
E-TENDERING IN SUPPLY
CHAIN MANAGEMENT-VENDOR SELECTION
The e-tendering process has meant a transformation from a
traditional vendor selection process
through tenders to an online process making huge advances in
efficiency, transparency and Data
Storage solutions and retrieval systems. Wipro Infotech Enterprise
application practice through its eprocurement
application development service has ensured a smooth migration for
governments.
The e-tendering service offering allows vendors to electronically
upload and download documents,
access project details as well as enabling you to maintain a track
on the overall status of the tenders.
The key benefits of our E-tendering service offering include:
Reducing collusion among vendors and making the process fair and
competitive
Enabling systematic documentation of the complete tendering
process and hence reducing
administrative costs and minimising human error
Ensuring significant reduction in processing time and tender cycle
time
Ensuring timely completion of tendering process thereby resulting
in better utilisation of
available funds from financial institutions
Providing onsite service and training to ensure that government
adopts the new system
without any difficulties
Questions
How has technology helped SCM ?
Is e-tendering a good process to select vendors?
SUBJECT:-SUPPLY CHAIN MANAGEMENT
Total marks 80
Group A
Case 1 (14 Marks )
Supply Chain Management at Bose Corporation
Bose Corporation manufactures audio premium speakers
used in automobiles, high-fidelity systems and
consumer and commercial broad-casting systems. Head
quartered in Framingham, Massachusetts, Bose
Corporation has plants in Massachusetts and Michigan
as well as in Canada, Mexico and Ireland. Bose
speakers are the best sellers in Japan, the world
leader in consumer electronics. Bose’s competence is in
its electronic engineering skills, ‘but the company
attributes much of its business success to its tightly
controlled materials management and excellent
Integrated supply chain management.
Bose purchases most of its electronic and other
components from independent suppliers scattered around
North America, the Far East and Europe. About 50
percent of its purchases are from foreign suppliers,
the majority of them are from the Far East. Its
purchasing organisation while decentralized has some
overlap that requires coordination between sides.
Bose attempts to coordinate its globally dispersed
supply chain so that material holding and
transportation costs are minimised. This requires component
parts to arrive at Bose’s Massachusetts assembly
plant just in time to enter the production process. But
because Bose must remain responsive to its
customers, it sometimes must respond quickly to increases in
customer demand for certain speakers so as to remain
competitive. Since Bose does not want to hold
extensive inventories at its Massachusetts plant,
this need for responsiveness requires Bose’s globally
dispersed supply chain o respond rapidly to
increased demand for component parts.
Bose’s materials management function is responsible
for coordinating the supply chain to meet both
objectives — minimising transportation and inventory
holding costs and yet responding quickly to
customer demands. This function achieves
coordination through a sophisticated logistics operation. Most
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
2
of Bose’s imports from the Far East come via ships
to the West coast and then across North America to
its Massachusetts plant via train. Most of the
company’s export also move by ocean freight. Bose does
not hesitate to use airfreight when goods are needed
urgently.
Bose has a long standing relationship with W.N.
Procter. a Boston based freight forwarder and customs
broker. Procter handles customs clearance and
shipping from suppliers to Bose. Procter provides Bose
with up-to-the minute electronic data interchange
(EDI) capabilities which enable Bose to track parts as
they move through its global supply chain. Procter
provides several other services to Bose such as
selecting overseas agents who can help move goods
out of the Far East.
Procter’s well-established network of overseas
contacts is especially useful when shipments must be
expedited through foreign customs. Procter also is
electronically linked into the US customs system,
which allows it to clear freight electronically as
much as five days before a ship arrives at a US port or
hours before an international airfreight shipment
arrives - This helps to get goods to Bose’s
manufacturing plant several days sooner.
Bose has developed a detailed supplier performance
system that measures on-time delivery, quality
performance, technical improvements and supplier
suggestions. A report is generated twice a month from
this system to be sent to the suppliers providing
feed-back about supplier performance.
Bose has written contracts with suppliers. After six
months of delivery without rejects. Bose certifies the
suppliers as qualified suppliers.
Bose uses a sophisticated transportation system
which is the best EDI system n the US. This j system
operates close to real time and allows two-way
communication between every one of the freighthandlers’
230 terminals and Bose. Information is updated
several times daily. This state-of- the art
system helps Bose’s managers to proactively manage
logistics time elements in pursuit of better customer
service.
Perhaps one of the most unique features of Bose’s
procurement and logistics system is the development
of JIT II. The basic premise of JIT H is: “the
person who can do the best job of ordering and managing
inventory of a particular item is the supplier
itself” Bose negotiated with each supplier to provide a full—
time employee at the Bose plant who was responsible
for ordering. shipping and receiving materials from
that plant, as well as managing on-site inventories
of the items. This was facilitated through an EDT
connection between Bose’s plant and the supplier’s
facility.
Questions:-
1. Briefly present the salient features of the
integrated supply chain management system at Bose?
2. Discuss how the strategy development process
might work at a company like Bose?
3. What should be the relationship between Bose’s
supply management strategy and the development of
its performance measurement system?
4. Discuss the importance of quality of purchased
components to Bose?
3
Case 2 (14 Marks)
SKF Bearing’s Best Practices
“SKF’S outbound logistics outsourcing is
characterised by strong control over quality norms and delivery
schedules by SKF personnel”
SKF Bearings is one of the world’s biggest ball
bearing manufacturing units, and they have: a sizeable
presence i India. As part of its supply chain
management practice. SKF Bearings handles the training,
implementation and quality control activities
themselves, while outsourcing the actual
operations to logistic solution providers. Outbound
warehousing and transportation practices outsourced
to logistic solution providers and national
transporters.
(A) Inbound transportation and warehousing: Complete
vendor outsourced, i.e. transportation and
warehousing managed and handled by vendors.
B) Outbound transportation : Handled predominantly
by national fleet operators, with some
responsibilities of contingency transportaton
outsourced to organised players.
(C) Outbound warehousing : Completely outsourced to
organised players with five players handling
different warehouses of the company.
SKF’s outbound logistics outsourcing is
characterized by strong control over quality norms and delivery
schedules by SKF personnel. Outbound warehousing
which is a completely outsourced activity is
controlled by SKF personnel by integrating the
warehouses through their in-house developed ERP
software platform.
Training of logistics company personnel to
load/unload goods, assemble and disassemble and for
integrating scheduling and supply orders is imparted
by SKF. Through this, they have managed to
achieve 100 percent order cycle fulfillment, bring
down damaged/ short/over delivery instances to almost
0.25 percent of total annual order and train
logistic personnel to meet all in-house developed quality
norms.
Even though majority of their logistics partners
have IT capabilities of their own, SKF Bearings doesn’t
use them as they have integrated their own IT
platform to schedule orders, keep track of consignments
and to manage both effective and efficient
distribution. Their warehousing costs are higher than their
outbound transportation costs because of the
extensive warehousing practices, but they have achieved
gains through the application of internal control
over implementation of quality norms, strict adherence
to Standard Operating Procedures (SOPs) and a robust
system of IT implementation throughout their
supply chain, Future Plans: Moving slowly towards
Vendor Managed Inventory (VMI) for inbound
4
sourcing and also looking at outsourcing more
warehouse management responsibilities. Looking to
implement more definitive 3PL solutions for outbound
activities of the supply chain, but will still, keep
operational control in its own hands.
Questions
1. Discuss the activities involved in the supply
chain of SKF Bearings?
2. Explain how .SKF establishes strong control over
its outbound logistics?
3. What is meant by vendor managed inventory (VMI)?
4. What meant by third party (3PL) logistics solutions?
Explain how SKF will be able to implement the
same?
Case 3 (14 Marks)
Chrysler Unseats its Competition with Supplier
Partnerships
When Lee lococea gave the co ahead to Chrysler’s
Neon Project in I NO, he \\ as taking a big risk. Until
that time; no American subcompact ear had been able
to turn a profit for its manufacturer. l3ut Chrysler’s
Neon ultimately reversed this trend: mainly because
of the unprecedented partnerships Chrysler entered
into with its suppliers in the earliest stages ot the
Neon Project.
Robert Marcell. head of Chrysler’s small -car
division, knew that such partnerships held the key to
Chrysler’s success. In order to make a profit,
Marcell had to meet stringent production schedules for
which he had to bring suppliers on board early. This
is crucial because outside companies would be
furnishing 70 percent of the value of the car in the
form of tyres seats,suspension, and other components.
In an unprecedented move, Marcell allowed engineers
from key potential suppliers to dose the first
Neon prototype during an October 1990 meeting. His
team then issued a cost challenge. inviting
suppliers to make use of sensitive Chrysler
financial data and ideas in a mutual effort to Cut costs.
Companies who entered into this unique partnership
found that collaborating with Chrysler was a twoway
street. For exarple Johnson controls, Inc was
initially to make the Neon’s seats within Chrysler’s
price targets, but Chrysler was unhappy with their
safety. Weight and comfort. After the supplier
partnership agreement, ten Chrysler engineers moved
into Johnson controls’ firm near Detroit to work
with the engineers of Johnson controls. After
working together for five days together the partners agreed
on new weight, cost and performance standards that were
so on target that they didn’t have to be changed
again.
As a result of this unique partnership, Chrysler was
able to accept higher component Costs from Johnson
controls because of overall savings for Chrysler. At
Chrysler’s request Johnson designed some rear seats
with the capability of folding down to expand trunk
space. But Chrysler engineers insisted that Johnson
design the special seats so that they could be
installed the same as other seats. This made each seat cost
5
more, but Chrysler ultimately could save about $ one
million overall in final assembly costs. Thanks to
its successful partnership with Johnson controls and
other major suppliers, Chrysler met its stringent cost
and time deadlines for the Neon- and came out with
Detroit’s first profitable subcompact car in the
bargain.
Questions
1. Discuss the approach of Chrysler’s operations
managers in developing arid building the Neon model?
2. Discuss the relevance of this case to the study
of supply chain management?
3. What benefits a manufacturing firm can achieve
from its suppliers, through outsourced manufacturing?
4. Discuss the differences between outsourcing and
out-partnering?
Case 4 (14 Marks)
Delphi Automotive Setting New Norms
“Logistics service provider and transporter evaluation
is done on the basis of requirement levels met,
which is 100 percent for any component before it
goes on to the line”.
Delphi Automotive India Ltd. is the Indian arm of
the global giant Delphi Automotive. The major
components that Delphi supplies in the country are
steering columns, half shafts, AC Units, Engine
Management systems, Catalytic Converters and Wiring
Harnesses. The Company also takes up sourcing
requirements of clients based out of India.
Suppliers are generally selected on the basis o their
proximity to the company’s four manufacturing units
in India, which are located in Bangalore, Karnataka
(two plants), one in Noida, Uttar Pradesh and one in
Gurgaon (Haryana). Delphi believes in efficient
sourcing from its suppliers. Nearby suppliers are
required to supply the plant everyday while far
flung suppliers are required to supply 2-3 times in a week.
Delphi has streamlined the inbound process by
procuring high volume, low cost items from nearby
suppliers and high cost, low volume items from far
flung suppliers.
Delphi Automotive India has outsourced the entire
inbound sourcing part of the supply chain to its
suppliers, totaling about 150. They are responsible
for the inbound transportation and warehousing of
components before the latter reaches any of Delphi’s
manufacturing plants.
For outbound trá1sportation and warehousing. the
company works with a mixture of national transporters
and organised logistics solution providers, Its
outbound warehousing has been outsourced to a trading
company with capabilities in warehouse management.
To make sure that quality norms are adhered to and
supply schedules are met, logistics service 1?rovider
and transporter evaluation is done on the basis of
requirement levels met, which is 100 percent for any
component before it goes on to the line. This is a
very Important service level definition on which logistic
solution providers and transporters are evaluated.
Since the stock and inventory checking aspects of
the supply chain have been automated, details of stocks
and status of delivery can be tracked. Web enabled
6
consignment tracking facilities are provided by
Delphi India to its foreign customers enabling the latter to
track the status and location of their’ consignments
at any given point in time. Indian customers are
slowly being provided with this facility. Also,
Indian customers can place orders from Delphi using the
company’s extranet system as and, when the
requirement arises.
Future Plans: Will slowly move towards a more
structured system of logistics outsourcing, which would
mean that it will increasingly start looking at more
3PL outsourcing arrangements.
Questions
1. Explain the supply chain of Delphi Automotive.
2. Explain how Delphi Automotive manages its inbound
sourcing.
3. Explain how Delphi Automotive manages its
outbound logistics.
4 Suggest a suitable strategy for Delphi Automotive
to Improve its supply chain effectives.
Group B
Case 5 (24 Marks)
Karnataka Engineering Company Limited
By 1983 (the case time context), the two-wheeler
market had been liberalised and companies had to deal
with the new realities. Logistics was one of the
business activities which got a strong look. The case of
Karnataka Engineering Company Limited (KEC) provides
the background for analysing a key set of
logistical concerns.
Strengthening the distribution network for finished
products is one of the most direct ways of improving
service effectiveness and cost efficiency of a
firm’s marketing related operations. The cost of selling up
and operating different facilities in the
distribution network have to be viewed vis-à-vis the recurring
transportation and inventory costs in the
distribution network and increasingly, service measures such as
response time to different sets of downstream
customers.
In this case, the logistics manager s faced with the
issue of designing a distribution network. ‘Twowheelers
have to be distributed from a single factory to
several dealers. For illustrating the nature of the
decision, one state (Andhra Pradesh) is taken up for
detailed analysis. Here, it is assumed that distribution
will be done state-wise, because of commercial (tax)
considerations.
Five hierarchical decisions have to be made in this
case; deciding on the number of warehouses, the
location of those warehouses, the allocation of
demand points to a warehouse, the selection of a shipment
size, and an order processing and routing policy for
the actual distribution from warehouse to demand
7
points. Here, shipments from depots to dealers are
through trucks or LCVs. Depending on the order
processing discipline that is selected, one could
have the possibility of meeting the demands of two or
more dealers with a single trip. This would need a
routing procedure.
Questions
1. At what volumes is the opening of a warehouse in
a state justified primarily on the grounds of the 4 per
cent central sales tax for transactions across
states?
2. How many warehouses do you think are required for
the distribution of KEC’s products in Andhra
Pradesh? What could the candidate locations of the
warehouses be? What would be the criteria on which
to select the candidates?
3. Determine the optimal selection of warehouses and
the best allocation of demand points to the selected
warehouses?
4. What are the best choices for shipment (truck)
size from warehouses to demand points? Given the size,
what routing would you recommend for a typical
dispatch run?
Approach for Analysis
The problem here is a relatively complex one, in
theory, because of the number of different but
interrelated decisions that have to he made. Two
options are suggested to approach this problem. One is
to decompose the decision areas (typically in the
order of the hierarchy described above) and calculate
only the aggregate contributions from other
decisions. For example, a shipment size can be assumed
while deciding the number and location of warehouses
(and that would determine the relevant costs), and
this can be repeated for each significant option.
Another approach is to explicitly and simultaneously
consider two or more interrelated decisions. This is
a very common practice in, for example, location
allocation models. This makes decision-making more
accurate. But this is not always possible.
A combination of these two approaches may be helpful
here. A reasonable set of scenarios for shipment
size for making the upper-level decisions, a
combined model for location and allocation, and again an
aggregate consideration for deciding the number of
warehouses (based on the fixed costs vis-à-vis the
maximum savings in transportation) can be prepared.
The routing decision can be separately made after
the allocation decisions are made, for each shipment
size possibility. For the location-allocation decision,
even the number of warehouses to be opened can be left
open, and a model developed based on Mixed
Integer Linear Programming. The model size should be
kept small enough that a simple solution should
be obtained by running the model on a PC. Extensions
of such models in m1aitleve1 distribution, where
explicit consideration of warehouse location costs
and transport link fixed costs have been combined with
allocation decisions, have been among the most
successful applications of models to practical decisionmaking.
Karnataka Engineering Company Limited (KEC)*
8
Karnataka Engineering Company Limited, Raichur,
entered the two-wheeler industry in 1981 with the
production of mopeds. In 1983, they set up a scooter
production line in Raichur. The two-wheeler scene
in India was very much a seller’s market in the
early years, with waiting times of several months for
potential customers.
In 1987, there was a slump in the Two-wheeler market
which affected all manufacturers badly. The
market became extremely competitive. This forced KEC
to look for ways to tackle the increased
competitiveness. It was felt by the Staff
Vice-President (Corporate Planning) that the physical
distribution function was a source of competitive
advantage which, if properly handled, could yield
substantial dividends that would be visible in the
immediate future.
KEC had set up a team to aggressively lead their
marketing efforts in the slumping markets, called ‘Go
For It’. At a meeting of ‘Go For It’, the Staff VP
(Corp. Planning) put forth his ideas for rationalising the
management of the physical distribution function,
which was accepted by everyone, including the
Managing Director. Prior to this meeting, he had
circulated a letter to all concerned (Exhibit
1). The organisation structure of KEC is given in
Exhibit 2. Value added by KEC based on 1986-1987
financial data is given in Exhibit 3
Present Distribution
From Raichur, the two-wheelers are transported by
specially adapted trucks, which can carry either 80
mopeds or 50 scooters or a combination of both. This
phase of the distribution, called primary
transportation, is organised at Raichur itself by
the central marketing office.
KEC has 19 branches spread all over India. Exhibit 4
gives a list of the branches (along with the
states/Uts) and their rnonh1y offtakés with sales
value. Every branch is manned by a branch manager,
who is the 501C KE.C employee there. He wage labour
for the loading and unloading operations. The
econda1y tansport arrangements transport from the
branch to the dealers arc made by KEC Marketing
offices located in most states. A list of the
marketing offices is given in Exhibit 5.
The consultant, based on discussions with the Staff
VP arid Chief Operating Officer, arrived at a
framework for analysis, quite similar to the one
outlined in Exhibit 1.
Branch Operating Costs and Locations
The operating expenses of a branch were estimated to
be Rs 17,000 per month. The break-up is given in
Exhibit 6. However, the actual average expenses were
closer to Rs 21,000 per month. The inventory cost
for each branch has been determined by examining the
average branch inventory as given in Exhibit 7. It
should be kept in mind that the period January-July
1988, on which the data is based, represents a slump
in the market resulting in higher than normal
inventories.
Given the costs, it can be determined that at 4 per
cent central sales tax, the minimum throughput that
would justify the setting up of a branch in a state
would be Rs 4.25 lakh per month. This translates into
78 mopeds (at Rs 5,500 per moped) or 33 scooters (at
Rs 13,000 per scooter) per month or any
combination thereof. From Exhibit 4 it can be seen
that it would be advantageous to locate branch
warehouses in 18 states/UTs. New branches need to be
set up in Goa, Orissa and Pondicherry.
9
The branch in Jammu and Kashmir can be discontinued.
The north-eastern part of the country should be
examined in greater detail with a state with break
up
For the states where a branch location is deemed
Essential the next task was to determine how many
branches should be opened iii each state arid where
exactly they should be located.
The principal factor to examine when considering
whether more than one branch is justified would be to
see if the savings in total transportation costs
(primary and secondary transportation costs) would be more
than the additional cost of a new branch.
Distribution in Andhra Pradesh
The logistics expert decided to examine the case of
AP in detail for an interim presentation to KEC. The
existing position was that KEC had two branch
warehouses at Adoni and Mahbubnagar,f serving roughly
the northern and southern halves of AP. Exhibit 8
shows the locations of the dealer points on a map.
Exhibit 9 gives the actual average monthly offtake
to the dealer points in Al’ based on January-July 1988
data.
The marketing office at Hyderabad would collate the
orders and issue instructions by telephone to the
branch manager at Adoni and Mahbubnagar regarding
secondary despatches. Actual routing decisions
were the responsibility of the branch manager. Both
the branch managers found it difficult to get through
to dealers by telephone. Further, the Mehboobnagar
branch manager frequently complained about
difficulties in arranging secondary transport. It
must be mentioned here that the principle that motivated
KEC to select Adoni and Mahbubnagar as branch
locations is that they are the first major towns in AP
after crossing the border.
Transportation and Routing
To get a good handle on the nature of transportation
cogs, the consultant defined a unit called the moped
unit km. where one moped unit km is performed by
transporting one moped unit for a distance of one
kilometre. One scooter was taken as equivalent to
1.6 moped units as a full truckload carries 1.6 times
more mopeds than scooters. He further set out to
determine an average1 figure of the transport cost per
moped unit km, both for primary and secondary
transportation.
The truck rates for various truck sizes are given in
Exhibit 10. An important decision here is the optimal
size of shipment (which size truck to use). Exhibit
11 gives the distance math between the dealer points
and potential branch locations. The potential
locations were selected based on offtake levels, demand
spread, quality of life, etc.
For primary transportation, it was found that the
trucks were generally run at full capacity The 80 moped
units capacity truck was normally used. To determine
primary transport cost, the distance figures from
Raichur to the potential branch locations are given
as Adoni (70 km) Cuddappah (270 km), Hyderabad
10
(190 km), Kurnool (100 km—not a good road, 170 km—by
good road), Mehboobnagar (100 km) and
Vijayawada (480 km via Hyderabad). For secondary
transportation. six sample routings as given in
Exhibit 12 were chosen to determine the transport
cost per moped unit km.
The average pipeline inventory was also a cost
consideration. At the national level, average pipeline
inventory for primary transportation can be
calculated given the average lead for mopeds as 700 km and
for scooters as 900 km. A truck does average of 350
km per day. Secondary transport pipeline inventory
was negligible, accept in large states.
The consultant now felt that he was ready to analyse
the alternatives for branch location shipment size,
etc.
EXHIBIT I
From Staff VP (Corporate Planning)
To COO (Chief Operating Officer)
All members of Go For It
The recent slump in the market for two-wheelers is
hitting not only our bottomline but also the morale of
the staff. We have been caught almost unaware by
this and our sales forecasts look ridiculous. We are
faced with the all too visible problem of a build-up
in finished goods inventory at Raichur and the
branches on account of lower offtake. The problem is
so severe that sometimes trucks have had to wait
for more than a week to unload at branch points.
An important, but unfortunately neglected area to
which we must pay attention is our logistics function.
If the right decisions are taken here, the potential
to save money and provide an optimum level of service
to the consumer exists. Studying our logistics
requirements should lead to savings in transportation costs
and inventory costs. The other benefit would be that
our response time to orders would be acceptable to
the customer without imposing unjustifiable additional
costs. As a first step, it would be useful for us to
recognise the significance of logistics costsas a
proportion of value added to products. As I see it, the
first-level decision should be to make up our minds
as to which states we should have branches in. The
financial advantage of having a branch warehouse in
a state is that we then don’t have to pay the 4 per
cent central sales tax which is based on interstate
sales.
The second-level decision should be to determine
where in a state the branch should he located and
whether more than one branch would be justified.
Related decisions would be the size of shipment,
frequency of shipment. inventory positioning at
branches and routing of primary and secondary transport.
As we do not have any suitable person in KEC who is
qualified to examine the issues involved, I have
identified an external management logistics expert
to conduct the study.
11
EXHIBIT 3
Value Added Statement for 1986-87
Mopeds Scooters Total
Sales 63.20 41.10 104.30
Raw Material and Component Cost (67%
for mopeds) (69% for Scooters)
42.34 28.36 70.70
Value Added 20.86 12.74 33.60
EXHIBIT 4
12
State/UT-wise Monthly Average Sales (January-July
1988)
S.No State/UT Branch Location Mopels Scooters Sales
Value (Rs 000)
1 Andhra
Pradesh
Adoni/M nagar 465/1460 78/210 3571.5/10760
2 Bihar Ranchi 360 125 3605
3 Daman Daman 15 300 3982.5
4 Delhi Delhi 65 30 747.5
5 Goa - 55 50 952.5
6 Gujarat Vadodara 80 70 1350
7 Haryana Faridabad 60 20 590
8 Himachal
Pradesh
- 10 10 185
9 Jammu &
Kashmir
Ja 5 25 352.5
10 Karnataka R 2400 150 15150
11 Kerala Cochin 80 60 1220
12 Madhya
Pradesh
Bhopal/Raipur 290/300 80/60 2635/2430
13 Maharashtra Mumbai 180 360 5670
14 North-east - 30 35 620
15 Orissa - 60 20 590
16 Pondicherry - 65 25 682.5
17 Punjab &
Chandigarh
Chandigarh 300 180 3990
18 Rajasthan Jaipur 210 120 2715
19 Tamil Nadu Vellore 1100 120 7610
13
20 Uttar Pradesh Luknow/Varanasi 750/300 170/70
6335/2560
21 West Bengal Medinipur 100 40 1070
Total 8740 2408 79374
Exhibit 5
Marketing Officer
Tamil Nadu Chennai
Karanataka Bangalore/Raichur
Andhra Pradesh Hyderabad
Kerala Cochin
Maharashtra Mumbai
MP Bhopal
UP Lucknow
Bihar Ranchi
West Bengal Calcutta
Rajasthan Jaipur
Gujarat Ahmedabad
J & K Srinagar
Punjab & Haryana Chandigarh
Delhi Delhi
Exhibit 6
Branch Opening Cost
Item Rs/Month
14
Utility ect 2000
Rent 4000
Salary 4000
Inventory 11000
Total 21000
Exhibit 7
Average Inventory Position at Branches (January-July
1988)
1 Adoni 63 24
2 M’nagar 58 30
3 Ranchi 30 14
4 Daman 39 91
5 Delhi 20 32
6 Vadodara 96 112
7 Faridabad 0 0
8 Jammu 29 25
9 Cochin 0 0
10 Bhopal 143 132
11 Raipur 55 59
12 Mumbai 63 109
13 Chandigarh 75 119
14 Jaipur 115 53
15 Vellore 53 32
16 Lucknow 165 146
15
17 Varanasi 86 146
18 Medinipur 50 32
Average Inventory at Branches 63.33 64.22
19 Raichur (including finished goods inv.)1122 768
Exhibit 8
Andhra Pradesh-KEC Branches
16
17
EXHBIT 9
Average Monthly Offtake in Andhra Pradesh (January
–July 1988)
Mopeds Scooters moped-units
From Adoni
1 Adoni 25 10 41
2 Chittoor 90 10 106
3 Nellore 20 15 44
4 Ongole 20 0 20
5 Chirala 50 3 54.8
6 Cuddappah 55 4 61.4
7 Hindupur 60 7 71.2
8 Anantapur 60 10 76
9 Kurnool 20 3 24.8
10 Tirupati 65 16 90.6
From M’nagar
11 Guntur 95 15 119
12 V’Wada 205 30 253
13 Khammam 80 15 104
14 Warangal 65 15 89
15 R’Mundry 80 0 80
16 Kakinada 70 4 76.4
17 Vizag 115 6 124.6
18 V’nagram 30 5 38
19 M’nagar 20 10 36
20 Hyderabad 600 80 728
18
21 Nizamabad 45 15 69
22 K’nagar 55 15 79
Total 1925 288 2385.8
EXHIBIT 10
Truck Rates (Rs per km)
Transporter 80 Mopeds or 50
Scooters(large truck)
56 Mopeds or 35
Scooters(medium
truck)
20 Mopeds or 12
Scooters (LCV)
PC Rao Brother 6.00 4.80 -
Raichur Roadways 6.00 4.80 -
Adoni Travels 6.50 5.00 4.00
Mehboobnagar
Trucking Society
6.90 5.50 4.60
EXHIBIT 11
AP Distance Matrix
S No. Adoni Cuddappah Hyderabad Kurnool M’nagar
V’wada
1. Adoni 0 200 240 125 150 540
2.
Anantapur
110 120 340 130 240 400
3. Chirala 360 210 380 280 280 90
4. Chittoor 340 140 515 320 450 420
5. 200 0 365 180 280 310
19
Cuddappa
6. Guntur 390 270 320 250 410 30
7.
Hindupur
230 180 475 240 330 470
8.
Hyderabad
240 365 0 175 90 290
9.
Kakinada
740 520 500 390 590 210
10.
K’nagar
420 615 250 320 270 280
11.
Khammam
430 400 190 290 270 130
12.
Kurnool
120 180 175 0 125 290
13.
M’nagar
150 280 90 125 0 380
14. Nellore 280 130 470 260 360 240
15.
Nizamabad
435 515 150 330 285 360
16. Ongole 320 160 425 240 290 125
17.
R’mundry
680 460 440 370 530 150
18. Tirupati 330 130 485 310 440 390
19. V’wada 540 310 290 290 380 0
20. Vizag 900 680 660 590 750 370
21.
V’nagaram
950 730 710 640 800 420
22. 380 480 120 310 230 210
20
Warangal
EXHIBIT 12
Sample Routings for Dealer Point Delivery (Based on
Invoice Statements)
Shipment
Number
Routing
From 1 To 2
Offtake at 2
Mopeds3 Scooters4
Offtake at
2
Sector
Distance
1 Adoni Anantpur 12 __ 12 110
Anantapur Hindupur 8 __ 8 120
2 Adoni Trupati 10 25 50 330
Triupati Nellore __ 15 24 120
3 Adoni Cuddappah 40 __ 40 200
Cuddappah Nellore 40 __ 40 130
4 M’ Nagar Hyderabad __ 30 48 90
Hyderabad Warangal __ 20 32 120
5 M’nagar Hyderabad 24 20 56 90
6 M’nagar Vijayawada 30 __ 30 380
Vijayawada R’mundry 30 __ 30 150
R’mundry Kakinada 20 __ 20 60
Analyze in minute details this Case with reference
to the Principles of Logistics and supply chain
Management
AUDIT
MANAGEMENT
1. Focus of the auditor is no longer
on the routine audit but rendering value added services like cost efficiency
and decision making. Critically examine the statement with particular emphasis
on the changing computer environment?
2)
How can the auditor be useful in achieving the objectives of a Charitable Trust
or Society and a Co-operative Society? What is the legal position under the
relevant status?
3)
It is the job of the directors to prepare the accounts of a company, auditor
only reports on it. Elucidate and describe the types of audit report?
4)
The thrust area of an auditor is “True and Fair” and not “True and Correct”
Elucidate in the light of statutory provision under the Companies Act 1956.
5)
Discuss the three types of audits, which although not mandatory under the Income
Tax Act 1961, are get done by the assessee to avail certain benefits under the
act?
7)
The auditor only audits the books of account, he does not guarantee them,
Elucidate
8) Tax
auditor is a Catalyst of Revenue Collection, function of the State on the one
hand, and a Consultant to the tax payer on the other, discuss?
9) Who can be appointed as an
auditor of co-operative societies? What are the rights and duties of auditor
under Maharashtra co-operative societies Act?
10)
An auditor is protected from unceremonial removal from office enabling him to
maintain his independence? Do you agree with the statement? If so discuss the
position of the auditor in the regard in the light of statutory provision under
the companies Act 1956?
AUDITING
Q1) H.W.P Private Ltd. Is having only two members H
and W. During the audit of accounts for the year ended 31st March
2000, you as a auditor find that :
a) H,
who is incharge of purchase has introduce fictitious purchase bills of Rs 50
lakhs.
b) W,
who is incharge of sales has sold goods worth Rs 1 crore without brining the
same in the books of accounts. You raise the matter with H and W in their
capacity as directors. They contest that as this is a position know to them and
within their own fold, you should not report the same under the Company’s Act
1956. Discuss whether the above arguments are acceptable under the Company’s
Act 1956 for non-reporting?
Q2) As an auditor, how
would you react to the following situation? The company produced photocopies of
fixed deposit receipts as the original receipts were kept in the iron safe of
the director finance who was presently out of the country on company business?
Q3)
ABC Private Limited is engaged in the wholdesale business of buying and selling
silk sarees. The accounts are maintained under the Companies Act from 1st
October to 30th September each year. The Chief Accountant of the
company is requesting the tax auditor to conduct tax audit U/S 44 AB of the
I.T. Act for the period for which accounts have beeen maintained under the
Company’s Act. As the tax auditor of ABC Private Limited, how will you react to
the Chief Accountant request?
Q4) Comment: The
Auditor is responsible for failure to disclose the affairs of the company kept
out of books and concealed from him.
Q5) Comment: Balance
confirmations from debtors/creditors can only be obtained for balance standing
in their accounts at the year end?
Q6) Give your comments
and observations on the following many cheques have been received by the
auditor on the last day of the year, but not yet deposited with the bank?
Subject: International
Business
Question 1.
What are the functions of UNO?
Subject:
Organizational Behaviour
Question 1.
Theorists have
attempted to define organizational cultures into specific taxonomies. How
useful has this profiling work been to our understanding of cultural
effectiveness?
Subject : Corporate
Law
Question 1.
Explain concept need not be in
writing.
Question 2.
Discuss restrictive trade agreements.
Subject : Financial
and Cost accounting
Question 1.
“Cost
accounting is better understood as a cost control and cost reduction exercise
and not a more cost ascertainment process”. Discuss.
Question 2.
“Cost accounting is a system of
foresight like prenatal care, but financial accounting is just a postmortem
examination”. Critically examine this statement.
Question 3
Define costing critically evaluate the
arguments for the installation of costing system in an industry
Subject : Operations
Management
Answer the following question.
Q1.
Suzan has a parttime
“cottageindustry”
producing seasonal plywood yard ornaments for
resale at local craft fairs
and bazaars. She currently works a total of 4
hours per day to produce 10 ornaments. a. What is her productivity? b.
She thinks that by redesigning the ornaments
and switching from use of a wood glue to a hotglue
gun she can
increase her production to 20 ornaments per
day. What is her new productivity? c. What is her percentage increase
(or decrease) in productivity?
(10 marks)
Q2.
Ahmet grows domatoes in his 100 by 100 meters
garden. He then sells the crop at the local farmer’s market. Two
summers ago, he was able to produce and sell
1200 kgs of tomatoes. Last summer, he tried a new fertilizer that
promised a 20% increase in yield. He
harvested 1350 kgs. Did the fertilizer live up to its promise?
(10 marks)
Q3.
A company has asked YOU to evaluate the
firm’s productivity by comparing this year’s performance with last year’s.
The following data are available:
______________Last Year This Year OUTPUT 10 500 units 12 100 units Labour
Hours 12 000 13 200 Utilities 7 600 MU 8 250
MU Capital 83 000 MU 88 000 MU Has the company improved its
PRODUCTIVITY during the past year?
(10 marks)
Q4.
A firm cleans chemical tank cars in the Bay
Gazimagusa area. With standard equipment, the firm typically cleaned
60 chemical tank cars per month. They
utilized 10 gallons of solvent, and two employees worked 20 days per month,
6 hours a day. The company decided to switch
to a larger cleaning machine. Last February, they cleaned 60 tank
cars in only 15 days. They utilized 12
gallons of solvent, and two employees worked 6 hours a day. a. What was
their productivity with the standard
equipment? b. What is their productivity with the larger machine? c. What is
the
change in productivity?
(10 marks)
Q5.
Serra’s Ceramics spent 3 000 MU on a new kiln
last year, in the belief that it would cut energy usage 25 % over the
old kiln. This kiln is an oven that turns
“greenware” into finished pottery. Serra is concerned that the new kiln
requires
extra labour hours for its operation. Serra
wants to check the energy saving of the new oven, and also to look over
other measures of their productivity to see
if the change really was beneficial. Serra has the following data to work
with: Last Year This Year Production
(finished units) 4000 4000 Greenware (pounds) 5000 5000 Labour (hrs) 350
375 Capital (MU) 15000 18000 Energy (kWh)
3000 2600 Were the modifications BENEFICIAL?
(10 marks)
Q6.
The CoolTech
Co. produces various types of fans. In May,
the company produced 1728 window fans at a standard
price of 40 MU. The Co. has 12 direct labour
employees whose compensation (including wages and fringe benefits)
amounts to 21 MU/hour. During May, window
fans were produced on 9 working days 9of 8 hours each), and other
products were produced on other days. a.
Determine the productivity of the window fans. b. In June, the CoolTech
Co. produced 1 730 fans in 10 working days.
What is the percentage in labour productivity of windows from May?
(10 marks)
Q7.
Mr. Ilhan DALCI makes billiard balls in his
Beyarmudu plant. With a recent increase in taxes, his costs have gone up
and he has a newfound interest in efficiency.
Mr.Dalci is interested in determining the productivity of his organisation.
He would like to know if his organisation is
maintaining the manufacturing average of 3% increase in productivity. He
has the following data representing a month
from last year and an equivalent month this year.
__________________Last year Now Units
produced 1 000 1 000 Labour (hours) 300 275 Resin (kg.s) 50 45 Capital
invested (MU) 10 000 11 000 Energy (BTU) 3
000 2 850 Show the productivity change for each category and then
determine the IMPROVEMENT for labourhrs,
the typical standard for comparison.
(10 marks)
Q8.
Ilhan’s, a local bakery, is worried about
increased costs – particularly energy. Last year’s records can provide a fairly
good estimate of the parameters for this
year. Ilhan Balci, the owner, does not believe things have changed much,
but he did invest an additional 3 000 MU for
modifications to the bakery’s ovens to make them more energy efficient.
The modifications were supposed to make the
ovens at least 15 % more efficient. I. Balci has asked you, as a
brilliant graduate of EMU, to check the
energy savings of the new ovens and also look over other measures of the
bakery’s productivity to see if the
modifications were beneficial. You have the following data to work with: Last
Year
Now Production (dozen) 1 500 1 500 Labour
(hours) 350 325 Capital Investment (MU) 15 000 18 000 Energy (kwhrs)
3 000 2 750
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