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Course- Enterprise resource planning
Internal Assignment Applicable for
December 2019 Examination
1. Fresh milk startup Country Delight
has raised $7-10 million in a Series B funding round led by venture capital
firm Matrix Partners. The company claims to source milk directly from the farm,
eliminating the middle men and allowing farmers to earn a premium. It also
invests in cold chain and quality testing infrastructure at the farmer’s
location. The company offers other milk-based products including paneer, curd
and ghee through its mobile app. This company wants to implement an ERP package
to streamline
its processes and manage its relations
with the customers. As an ERP consultant highlight three modules you would
recommend Country Delight to implement. Justify your standpoint.
Answer: All organisations have certain
objectives and goals to achieve. For anyorganisation to succeed, all business
units or departments should worktowards this common goal. However, in an
organisation, each department orbusiness function has its own goals and procedures.
The departmentalobjectives can sometimes be conflicting. For example, the
financedepartment might want to cut down the advertising budget, whereas
themarketing department might want more money. Similarly the
productionplanningdepartment might want to reduce the stock level in stores,
but theproduction people might want to have more stocks. Here,
informationbecomes critical not only for resolving the conflicts but, also to
make themcollectively work for the company as one unit, to meet the company’sobjectives
and goals. Each department managing its activities efficiently isnot enough; it
should also help other departments to manage their
2. For more than 50 years, Everest
Spices has helped cooks create tasty dishes with its range of pure and blended
spices. As one of India’s leading spice brands, Everest Spices strives to run
efficient processes to help ensure that prime-quality products reach customers
fresh from the factory. However, with multiple, disparate systems it was
difficult to gain the visibility required to monitor the company’s operations
effectively. To address this, Everest Spices decided to deploy an intelligent
ERP solution to support integrated processes and provide real-time insights
across the company. What are the factors the Everest Spices must keep in mind
during ERP vendor selection?
(Source:https://www.sap.com/documents/2018/12/4416850c-2d7d-0010-87a3
c30de2ffd8ff.html)
Answer: The ERP market
is very competitive and fast growing. Over the last decade, ERP emerged as big
hit in the market, where many companies were able to run their business more
efficiently by using the software which replaced staff working in back-office
functions such as accounting and administration. ERP holds an undisputed demand
in the national and the global level.
As larger
enterprises become saturated with new-generation client/server ERP systems, the
vendors strive to find new markets for their product suites to have a rapid
growth in the business. ERP vendors have increased
3. A leading school in Mumbai, with an
86-year old leading Education Network teaching over 70000 students across India
planned to implement an ERP package. This institute has 200+ work locations
spread across 8 states and employs 4500+ employees across the country. The
institute emphasizes on the use of technology in teaching in all their schools,
with state-of-the-art computer labs and interactive boards installed in
classrooms. Due to its effective use of technology in education, this Education
Group was awarded the "best ICT enabled school" in all of India. With
the geographically dispersed staff, the Group was looking for a comprehensive
and integrated solution that would connect their growing network of schools,
standardize and automate their business operations and help them get a better
control over their operations. Some of the key challenges that were faced by
this institute were manual maintenance of HR and Payroll related activities via
excel sheets. Lack of centralized HR, Poor data and operations management
across geographically scattered locations. There was a lack of employee
self-service, lack of an integrated and comprehensive recruitment and talent
management suite. Data regarding the employees was scattered and employee data
was not integrated with core HR processes.
(Source:https://media.featuredcustomers.com/CustomerCaseStudy.document/ramco
systems_podar-education-network_None.pdf)
a. Explain the functionalities of HR
module that help mitigate the challenges faced by this group?
b. What are certain challenges that the
group could face while implementing the ERP package?
Answer: a) When companies were small
and a single person managed all the differentmanagerial functions, the
decisions were made keeping in mind the overallcompany objectives. But as
companies grew, managing the entire operationbecame impossible for a single
person. More and more people were broughtin, and different business functions
were given to different individuals. Whenthe organisation became larger, each
person hired people to assist him/herand the various departments as we see now,
evolved. The size of thedepartments began to increase as more and more people
were required todo the job. Here ERP comes into the picture.
Functionalities of HR module
A
HR management system has to be adaptable to company-specificrequirements, and
must constantly grow with increasing HR requirements. Itmust cover the
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Course- Logistics management
1 You are involved in logistical system
design and administration. Discuss the six different operational objectives you
need to simultaneously focus to achieve these objectives
Answer: In terms of logistical system design and
administration, each firm must simultaneously achieve at least six different
operational objectives. These operational objectives, which are the primary
determinants of logistical performance, are:
Rapid Response: Rapid response is concerned
with a firm’s ability to satisfy customer service requirements in a timely
manner. Information technology has increased the capability to postpone
logistical operations to the latest possible time and then accomplish rapid
delivery of required inventory. The result is elimination of excessive
inventories traditionally stocked in anticipation of customer requirements. For
example, a popular style of winter-weight slacks is about to
2. You are in the process of designing
the Physical Distribution system for your organization. What are the two major
objectives and the six influencing factors that you may have to consider to meet
customer service goals? Give examples.
Answer: Physical distribution is the
group of activities associated with the supply of finished product from the
production line to the consumers. The physical distribution considers many
sales distribution channels, such as wholesale and retail, and includes
critical decision areas like customer service, inventory, materials, packaging,
order processing, and transportation and logistics. You often will hear these
processes be referred to as distribution, which is used to describe the
marketing and movement of products. Accounting for nearly half of the entire
marketing budget of products,
3. You are the manager of a consumer
appliance store that sells electrical appliances. One of the home appliances is
estimated to have an annual demand of 900 units. The store incurs Rs.180 for
every order it place for the delivery of this appliance from its supplier. The
storing cost is Rs.90 per unit per annum.
a. What will be your ordering quantity
to keep the total inventory cost minimum?
b. Discuss the advantages the store will
get if you codify all the items in the store.
Answer: a) Economic order quantity
(EOQ) is one of the most preferred techniques used for calculating the order
quantity. Here, two basic costs are matched, the inventory acquisition cost and
the inventory carrying cost. The formula for determining EOQ is as follows:
Q = √2AP/CS
A
is the annual consumption in units
P
is the procurement cost per order
CS
is the Storage or carrying
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Course- Supply chain management
Internal Assignment Applicable for
December 2019 Examination
1. What are the three decision phases of
Supply Chain Management? What are some key decisions made in each phase? Please
give 2 examples of decisions in each phase. Also comment on how are the
decisions made in each phase linked with each other
Answer: A supply chain is considered as
the network of the interconnected businesses that involves procuring the raw
materials, transforming these raw materials into intermediate or finished
products, and distributing these finished products to the consumers. Supply
chain management operates at the strategic level of decision making. At the
strategic level, firm’s administration makes high level strategic supply chain decisions
that are applicable to the whole organisation. The decisions made with regard
to the supply chain should reflect the overall corporate plan. The supply chain
process includes product development, customers, manufacturing, vendors and
logistics. These strategic decisions may also need the help of another company
or sell existing businesses. Nevertheless, when deciding on these strategic
product development
2. XYZ parts is a company making brake
pads for trucks. It wants to set up its manufacturing and dispatch warehouse
either in Delhi or Mumbai. From the city they select, they will make shipments
to 6 cities- Delhi, Mumbai, Bangalore, Kolkata and Hyderabad and Chennai. Each
parcel they ship to their customers in these cities weighs between 750 grams
and 900 grams. They negotiated with a logistics company for shipping their
parcels and the best rates they got for all parcels up to 1 kg are given in
below table:
|
Rates per parcel up to 1 kg
|
Destination City
|
||||||
|
Source City
|
Delhi
|
Mumbai
|
Bangalore
|
Kolkata
|
Hyderabad
|
Chennai
|
|
|
Delhi
|
22
|
42
|
58
|
60
|
57
|
65
|
|
|
Mumbai
|
40
|
21
|
38
|
65
|
42
|
50
|
|
The number of orders they are expecting
to get from each city per month are given in below
Table
|
|
Delhi
|
Mumbai
|
Bangalore
|
Kolkata
|
Hyderabad
|
Chennai
|
|
Orders from each
city per month
|
4500
|
5500
|
4000
|
2500
|
3000
|
2500
|
For manufacturing, storing the inventory
and dispatching, they need a 10000 sq. ftwarehouse. Monthly rent in Mumbai for
a 10000 sqft warehouse is Rs. 1.5 lakhs per month and in Delhi it is Rs. 90000.
All other costs of operating the warehouse and manufacturing is same for both
the cities. How will the company decide how which city is cost effective to
operate? Which city as per your calculations should be there preferred
location?
Answer: In this case, we have
considered warehousing cost of only Delhi and Mumbai as these are the options
to set up a warehouse.
Cost of delivery
|
|
Delhi
|
Mumbai
|
Bangalore
|
Kolkata
|
Hyderabad
|
Chennai
|
Total
cost of
delivery
|
3. Case Study/ Caselet
Axis Apparels is a company based out of
Delhi, India. They produce garments using fabric imported from a factor in
China. The factory in China dispatches the goods on the same day when they
receive the order. The shipments are made through air and the transportation
lead time is 10 days include customs clearance at both countries. Once the
fabric is received, the company performs QC test in a lab and only after that,
the fabric can be used for making garments. QC test takes 10 days. On an
average company uses 3,00,000 meters of fabric every month. However, the
business development team of the company has informed that any day they can
receive a new order from a client and in that case the consumption of fabric
per month can go up to 4,50,000 meters
a) How much safety stock of fabric
should the company maintain?
b) At what inventory level the order for
new lot of fabric should be placed
Answer: a) Safety stock: Safety stock is the stock held by a company in excess
of its requirement for the lead time. Companies hold safety stock to guard
against stock-out.
Lead
time is the time which supplier takes in ordering the items
Maximum
Daily Usage = 450000 meters/30 days = 15000 metres
Maximum
Lead Time Days = 10 days + 10 days = 20 days
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Course- Total Quality Management
Internal Assignment Applicable for December
2019 Examination
1. How the QFD process helps to the
organization cause?
Answer: Quality Function Deployment
(QFD) approach has been developed by Japanese to translate the voice of customer
in to technical requirements (Engineering language). QFD is a planning process
to guide the design, manufacturing and marketing of goods by integrating the
voice of the customer throughout the organization. Through QFD, every design,
manufacturing and control decision is made to meet the expressed needs of customers.
It uses a type of matrix diagram to present data and information. Even though
QFD was originated in 1972 at Mitsubishi, Toyota has been the pioneer in
deploying the tool extensively. It is estimated that Toyota has realized 20%
reduction in startup costs on the launch of new van in 1979. Xerox and
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2. Explain your understanding (Process
perspective) & give appropriate examples to explain: Acceptance Sampling, Double sampling &
sequential acceptance sampling?
Answer: Acceptance Sampling
Acceptance
sampling is the process of evaluating a portion of the product /material in a
lot for the purpose of accepting or rejecting the lot as either conforming or
not conforming to quality specifications. Inspection for acceptance purpose is
carried out at many stages in manufacturing. There are generally
3. A manufacturing cos manufactures
bangles for different sizes for the kids of different group. You are appointed
as an expert. You selected 1 unit (As sample) in every 5 finished product.
Total population size is 50. You checked each and every specification given to
you. Below are the number of defects identified by you in each of the sample.
|
Sample No
|
No of defects
|
Defect / Sample
|
|
1
|
2
|
2
|
|
2
|
3
|
3
|
|
3
|
1
|
1
|
|
4
|
2
|
2
|
|
5
|
3
|
3
|
|
6
|
4
|
4
|
|
7
|
2
|
2
|
|
8
|
1
|
1
|
|
9
|
3
|
3
|
|
10
|
2
|
2
|
a. Calculate the UCL & LCL for the
mentioned scenario?
b. Assume the below & calculate Cp
& Cpk.
|
USL
|
LSL
|
Recorded results
|
|
47
|
25
|
49
|
|
47
|
25
|
19.4
|
|
47
|
25
|
47.6
|
Answer: Control charts show the
performance of a process as the snapshot of the process at the time data is
gathered and then process trend as time goes on. Control charts are expert run
charts with statistically established upper and lower limits. It helps in determining
whether the process remained steady or any changes have occurred making the
process unsteady at specific points.
This
process trend helps in recognising the out of control status and to discover
variations outside the regular functioning limits and to recognise the source
of variations. Charts for attributes include X-bar and R-bar charts,
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