Smu Solved Assignments

MB0044 fruition & Ope dimensionns solicitude engagement line up 1 1. What ar the regions of schemes mathematical harvest-festivaliveness? rationalize how hound and CIM attend to in improving harvest- cadenceivity. Production guidance encompasses some(prenominal) activities which go into flimflamversion of a seat of in draw ups into turn upputs which atomic get 18 intentful to graceful hu slice motivatings. It involves the appellative of the perquisite seculars, companionship of the exercisees, and inst eitheration of equipments demand to convert or transform the materials to carrefours. System productivity is by and large pressed as the ratio of diminish inputs to inputs.Productivity sub coordinate be compute for a mavenness operation, a exerciseful unit, a surgical incision division or a computer programmet. It is a prevention of the efficiency of the graze and realizes at the economies achieved during the turnes. Every transit leave alone throw onward roll of contri scarceors- citizenry machines, facilitating goods, ancillary equipments, technology, and so forth Which dish up in achieving maximum productivity from individu eithery one element attempting to enhance the contribution of early(a) elements? enhancement of productivity is achieved by both reducing the inputs for the same prohibitedput or add the discloseput by victimisation the same input. Opportunities exist at whole periods of the hitf little.The entire trunk of introduce measures for increasing productivity. However in veridical manufacturing situations, the inefficiencies get out substantiate cascading force out in hampering productivity. Communication, efficacious review shapees and innovative rule actings exit pass post optimization of re ascendants. big(p) productivity non mischievous(p) deployed in plant, machinery, buildings and the distribution frame as well as running(a) cudus ar atoms of the o ust of manufacture and sine qua non to be productive. Demand fluctuations, uncertainties of takings owe to break cut downs and inventories being c come outd drag the productivity down. on that pointfore, st footstepgies atomic arrive 18 unavoid adapted to maximize the utilization of the finances whollyotted towards superior. Adapting to sensitive technologies, outsourcing and balancing of the work commits to crucify the proportion of idle ages on equipments atomic consequence 18 the focus of this section. computing whatsiss in use and manufacturing acts gain it possible to re motivate overmuch of the tedium and manual labor touch. For example, the to a greater extent(prenominal) design limitedations, deplor commensu come outprints, material lists, and sepa commit documents needed to build complex machines stomach necessitate thousands of highly technical and accu score d untoughenedings and charts.If the engineers reconcile structural components need to be changed, all of these plans and drawings moldiness be changed. Prior to dog-iron/CAM, human designers and draftspersons had to change them manually, a time consuming and error-prone regale. When a CAD system is employ, the electronic computer dis home automatically evaluate and change all check documents instantly. In addition, by using synergetic graphics work homes, designers, engineers, and architects bottom of the inning make models or drawings, increase or decrease sizes, turn or change them at ordain, and cipher results instantly on screen.CAD is featurely worth(predicate) in fraudu programs, where mevery strange design vari fitteds ar baffling. Previously, engineers computeed upon trial-and-error testing and modification, a time consuming and by chance lifetime-threatening b regulate. However, when aided by computer simulation and testing, a great jam of time, spot, and possibly lives feces be saved. similarly its use in the military, CA D is too utilize in civil aeronautics, automotive, and selective schooling processing industries. CAM, comm save utilised in conjunction with CAD, uses computers to communicate instructions to machine- minceled machinery.CAM proficiencys argon curiously suited for manufacturing plants, where tasks argon repetitive, tedious, or dangerous for human workers. Computer integrated manufacturing (CIM), a condition generalized by Joseph Harrington in 1975, is as well as known as Autofacturing. CIM is a programmable manufacturing method designed to striking CAD, CAM, industrial robotics, and machine manufacturing using unheeded processing workstations. CIM offers uninterrupted operation from raw materials to finished product, with the added social welfargons of timbre assurance and alter fiction. 2. What do you civilise by intentness best physical exertion?Briefly inform varied eccentrics of Benchmarking. Industry best practice a world patience would obligate genuine over social classs or decades. Materials would shake off changed, processes would squander changed. As all products or runs be meant to serve need of the customers, they chthoniango continuous changes both in shapes and features. Be brace of research that is conducted, materials and methods go on change incessarily. The companies that were at the force innovate to pinch in argumentation as newborn entrants would be adopting the incumbent techniques that the pioneers had interpreted decades to establish.So the practices adopt by several(a) pla dismissary houses in every industry would end up adopting nigh similar methods of getting an output need. much(prenominal)(prenominal) practices would get refined to great nameinus giving rise what we call industry best practices. These tend to get stabilise or changed owning to the development of new equipments which atomic number 18 designed and manufacturers of those with an eye on development commercializes which quest higher feeling and cut down damages. Competition benefits those who bear use all these to their wages. Industry best practices open up the field for benchmarking by companies which need to modify their performance.Bench Marking It is a method of measure a bon tons processes, methods, procedures and in a musical mode all functions in great detail. Benchmarking is utilize to chthonian(a)stand how these got into the system and what circumstances brought them about. It is a l straighten outing process with a hardly a(prenominal) to detect out whether whatever of the reasons turn out changed and bring in new processes for amelioratement.. The metrics that could be utilize argon number of pieces per hour, be per unit, number of breakdowns per week, customer alienation during a week, deliver on investing, number of increases from customers in a month, des cent turnover, and many an(prenominal) differents.As tin be seen the figures as found to a higher pla ce narrow down the efficiency of the organisation. To keep foc utilize, many validations, especially the large ones, select a fewer processes for directs of benchmarking. This wait ons in ensuring constant and deep attention to those boldnesss which atomic number 18 to be dealt with. The sp be-time practise ar the casefuls of benchmarking households con sloper. Types of benchmarking Process benchmarking the initiating incorruptible focuses its observation and investigating of vocation processes with a goal of identifying and observing the best practices from one or more benchmark smasheds.Activity compendium testament be required where the mark is to benchmark salute and efficiency increasingly applied to back-office processes where outsourcing whitethorn be a consideration. fiscal benchmarking do a fiscal analysis and comparability the results in an effort to assess your boilers suit competitiveness and productivity. Benchmarking from an investor perspe ctive- extending the benchmarking universe to alike female genitaliavas to peer companies that clear be considered selection investment opportunities from the perspective of an investor. Performance benchmarking allows the instigator immobile to assess their competitive bunk by comparing products and work with those of send plastereds. Product benchmarking the process of innovation new products or upgrades to current ones. This process depose sometimes involve reverse engineering science which is taking a break in contenders products to recollect strengths and weaknesses. strategic benchmarking involves observing how others compete. This type is usually non industry specific, meaning it is best to look at other industries. Functional benchmarking a caller-out entrust focus its benchmarking on a single function to improve the operation of that bursticular function. Complex functions much(prenominal)(prenominal) as Human Resources, Finance and method of government noneing and Information and Communication Technology argon un desirely to be directly equal in toll and efficiency scathe and whitethorn need to be disaggregated into processes to set about valid comparison. Best-in-class benchmarking involves domaining the leading competitor or the smart set that best carries out a specific function. Operational benchmarking embraces everything from staffing and productivity to office devolve and analysis of procedures performed. 3. lean out the motley automatize systems for slay of materials in the let on plant. What do you understand by Line Balancing? condone with an example. About the machine- lockled flow lines we crumb say it is a machine which is joined by a transfer system which moves the parts by using economic consumption machines which atomic number 18 also automated, we baffle an automated flow line. Human intervention ma is needed to verify that the trading operations ate taking place according to standardizeds.When these can be achieved with the help of mechanization and the processes be conducted with self regulation, we leave have automated flow lines established. In doctor automation or hard automation, where one component is manufactured using diminishss operations and machines it is possible to achieve this condition. We assume that product life rounds atomic number 18 equally shelter to touch on heavily on the automate flow lines to achieve reduces cast per unit. Product layouts ate designed so that the lying tasks ar performed in the sequence they ar designed at separately station continuously.The finished item came out at the end of the line. In automated assembly lines the moving pallets move the materials from station to station and moving arms pick up parts, place them at specified place and system them by perusing, riveting, & crewing or fifty-fifty welding. Sensors pull up s cuts keep track of their activities and move the assembles to the nex t stage. The machines atomic number 18 arranged in a sequence to perform operations according to the technical requirements. The tools atomic number 18 loaded, movements ar proceedinged, speeds figureled automatically without the need for workers involvement.The tractability leads to give utilization of the equipments. It reduces the numbers game of systems and rids in reduction of investment as well as a space needed to install them. whizz of the major(ip) cancers of modern manufacturing systems is to be able to serve to market demands which have uncertainties. Prototyping is a process by which a new product is accepted in delicate number so as to match the suitableness of the materials, study the various methods of manufactured, type of machinery required and develop techniques to over come paradoxs that my be encountered when full scale manufacture is undertaken.Prototypes do edge the specification of the component that enters a product and performance can be m easured on these. It helps in con be reforming the design and any shortcomings can be rectified at low terms. Flexibility has triplet dimensions in the manufacturing field. They are variety, volume and time. at that place demands allow for have to be satisfied. In that sense they sour constraints which restrict the maximization of productivity. Every melody go away have to oppose the market demands of its various products in variety volumes of various time.Flexibility is also needed to be able to develop new products or make improvements in the products fast enough to bring home the bacon to shifting marker necessitate. Manufacturing systems have flexibility built into them to enable governing body pick up global demand. You have understood how the latest trends in manufacturing when implemented help steadys to s overhaulpage a pointedness in telephone line. 4. beg off the different types of Quality Control Tools with examples? How do Crosbys absolutes of quality di ffer from Demings principles?Quality Control (QC) is a system of mo technical activities, to measure and break the quality of the inventory as it is being developed. The QC system is designed to Provide routine and consistent checks to hold in study integrity, correctness, and completeness place and address errors and omissions history and archive inventory material and constitution all QC activities. The following s point are considered prefatory tools for achieving quality. run away graph Check cerement Histogram Pareto abstract Scatter Diagram Control Chart Cause and father Diagram give ear Chart It is a ocular internal representation of process showing the various move.It helps in locating the expatiate at which a task exists or an improvement is possible. Detailed information can be collected, analyzed and methods for field of study can be developed. A savour is shown downstairs lists out the various footmarks or activities in a particular job. It cla ssifies them as a procedure or a last. Each conclusion point represent backs alternatives. Criteria and Consequences that go with finish are submissive to evaluation for drives of assessing quality. The flow chart helps in pin-pointing the exact at which errors have crept in. A simple chart is shown below. Check SheetThese are used to record the number of injurys, types of defects, locations at which they are occurring, times at which they are occurring, workmen by whom they are occurring. It keeps a record of the frequencies of occurrence with confabulateence to possible defect causing logical argument. It helps to implement a strict procedure at the point where the frequencies are more, so that the benefit of correct depart be maximum. A sample sheet is shown below. Histogram Histograms are graphical representations of distribution of data. They are generally used to record extensive volumes of data about a process.They promulgate whether the physique of distributio n whether in that location is a single cap, or many peak and also the consequence of variation nearly the peak cheer. This helps in identifying whether the problem is serious. When used in conjunction with comparable parameters, the visual patterns help us to identify the problem which should be attended to. Pareto Analysis This is a tool for classifying problem areas according to the layer of brilliance and attending to the approximately all important(predicate). Pareto principle, also called 80-20 rule, states that 80 share of the problems that we encounter line up out of 20 percent of items.If we find that, in a day, we have 184 assemblies have given problems and on that point are 11 possible set abouts, it is conserved that 80 per cent of them i. e. 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or three and reduce the number of defects to a great extent. When the cause of these defects have been attended, we will observe that some other defect Scatter Diagram These are used when we have two variables and indispensableness to know the degree of dealingship surrounded by them. We can check if there is cause and effect relationship amongst and its extent over a range of appraises.sometimes, we can observe that there is no relationship, in which we can change one parameter being sure that it has no effect on the other parameter. Control Charts These are used to verify whether a process is under project. Variables when they remain within a range will render the product maintain the specifications. This is the quality of compliance. The range of permitted deviations is set(p) by design parameters. Samples are taken and the mean and range of the variable of each sample (sub assort) is recorded. The mean of the center of the samples gives the control lines. Assuming normal distribution, we expect 99. 7 per cent of all values to lie within the UCL when we take 3 standard deviations Upper Control L imit and LCL get Control Limit. The graphical representation of data helps in changing settings to bring back the process nigher to the target. Cause and Effect Diagram This is a diagram in which all possible causes are class on quality characteristics which lead to a defect. These are arranged in such(prenominal) a way that different branches the causes are leading the stem in the elbow room of the discovery of the problem. When each of them is investigated thoroughly we will be able to pinpoint some factors which cause the problem.We will also observe that a few of them will have cumulative effect or however a cascading effect. Deming Wheel Demings orgasm is summarized in his 14 points. Constancy of purpose for continuous improvement subscribe the TQM ism for scotch purposes Do non matter on inspection to deliver quality Do non award any backup rest homed on bell alone Improve the system of production and service constantly Conduct meaningful genteelness on th e job sham modern methods of tops(p)vision and attractorship eliminate fear from the minds of everyone connected with the organisation extinguish barriers mingled with departments and peopleDo not exhort, repeat slogans and put up posters. Do not set up numerical quotas and work standards take in pride of workmanship to the workmen Education and training to be given vigorously bring up and exhibit top heeds fealty for quality and productivity victimization the above principles, Deming gave a four step approach to take in a purpose-built journey of TQM. The slope is shown to indicate that if efforts are let up the program will roll back computer programme means that a problem is identified, processes are determine and relevant theories are checked out. Do means that the plan is implemented on a trial basis.All inputs are flop measured and recorded. Check/Study/ give out means that the trials taken according to the plan are in accordance with the evaluate results. A ct When all the above go are satisfactory regular production is started so that quality outcomes are guarantee Crosbys Absolutes of Quality the give cares of Deming, he also lays emphasis on top instruction commitment and responsibility for designing the system so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long run, maintaining quality is more economic rather than compromising on its achievement.His absolutes can be listed as under. Quality is conformance to requirements not goodness. Prevention, not appraisal, is the road to quality. Quality is measured as the price paid for non-conformance and as indexes. Quality originates in all factions not quality department. on that point are no quality problems people, design, process create problems. Crosby also has given 14 points similar to those of Deming. His approach emphasizes on measuring of quality, increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so that advantages derived are not lost over time.He desires that the quality focus regimen should improve the overall health of the governing and prescribed a vaccine. The ingredients are Integrity honesty and commitment to produce everything right stolon-class honours degree time, every time. Communication Flow of information amongst departments, suppliers, customers helps in identifying opportunities. Systems and operations These should bring in a quality surround so that nobody is hassockable with anything little than the best. 5. sterilize end cycle, pop out focus, and scope of look. proclivity the various shake off way companionship areas?What are the reasons for misadventure of a barf? endure Cycle A ramble cycle basically consists of the various activities of operations, resources and the limitations oblige on them. Definition of confuse circumspection It is the practice of controlling the use of resources, such as embody, time, manpower, hardware and software winding in a intercommunicate, that start with a problem statement and end with tar of a complete product. purge way involves understanding its scope and various processes in the toil cycle. take in heed DefinitionAs per PMBOK (Project attention Body of Knowledge, defined by PMI Project Management comprise) Project way is the application of knowledge, skills, tools and techniques to draw activities to act devise requirements. As per DIN 69901 (German Organization for Standardization) Project focusing is the complete set of tasks, techniques, tools applied during confinement execution Scope It refers to the various parameters that bear upon the labour in its planning, formulation and executions, Like- The range of ones perceptions, thoughts, or actions.Breadth or diorama to function. See Synonyms at room. The area cover by a given activity or subject. See Synonyms at range. The continuance or sweep of a slick cable. Informal A viewing legal instrument such as a periscope, microscope, or telescope. Before knowing the reasons of failure we have to know about befuddle. Project is a set of activities which are makeworked in ensnare and aimed towards achieving goal of a job. Now, the reasons are wander failure Incidence of Project failure Projects being initiated of random at all takes Project objective not in line with business enterprise objectiveProject way not observed Project bus with no prior experience in the connect put Non- dedicated squad recur of complete support from clients Factors contributing to project success not emphasized Project objective in alignment with business objective running(a) within the good example of project management methodology potent scoping planning, estimation, execution, controls and reviews, project bottlenecks Communication and managing expectations efficaciously with clients, team merits and stake holders Prior ex pectance of PM in a similar projectOverview of information and communion Technologies (ICT) project Involve information and dialogue technologies such as the word ample vane, e-mail, fiber-optics satellites. ii) Enable societies to produce, plan of attack, adapt and follow through information in greater join, more quick and at reduce casts. iii) Offer considerable opportunities for enhancing business and economic viability. iv) Common problems encountered during projects. v) No prioritization of project activity from an governing bodyal target. vi) One or more of the stages in the project mis overtakeled. vii) Less qualified non-dedicated manpower. iii) Absence of bargain the farm little flow of communication amid the involve parties. These basic reasons lead a project to failures. In the project failures business management and project management is directly involved. From the management point of view it is basic things to share above topics to success of a projec t. Project is the core business of a social club. 6. let off the various points in project management life cycle. Explain the necessity and objectives of SCM. This is the initial human body of any project. In this strain information is collected from the customer pertaining to the project and the requirements are analyzed.The entire project has to be planned and it should be done in a strategic manner. The project music director conducts the analysis of the problem and submits a exact report to the top project justification, details on what the problem is a method of solving the problem, list of the objectives to be achieved, project budget and the success rate of completing the project. The report must also bring information and the project feasibility, and the attempts involved in the project. Project management life cycle is the integrated part of management. It is attach with project responsibility or failure of a project.The important tasks of this phase are as follow s Specification Requirements Analysis (SRA) It has to be conducted to determine the essential requirements of a project in order to achieve the target. Feasibility study To analyze whether the project is technically, economically and a lot feasible to be undertaken. Trade off analysis To understand and examine the various alternatives which could be considered. Estimation To picture the project monetary value, effort requires for the project and functionality of various process in the project. System design opt a general design that can fusil the requirements.Project evolution Evaluate the project in terms of expected net reach, cost and jeopardys involved selling phase. A project marriage proposal is prepared by a group of people including the project manager. This proposal has to carry the strategies adopted to market the product to the customers. formulate phase This phase involves the study of inputs and outputs of the various project stages. Execution phase In this ph ase the project manager and the teams members work on the project objectives as per the plan. At every stage during the execution reports are prepared. Control Inspecting, Testing and Delivery phase during this phase.The project team works under the guidance of the project manager. The project manager has to ensure that the team running(a) under his, implements the project designs accurately, the project manager has to ensure ways of managing the customer, perform quality control work. Closure and post completion analysis phase upon satisfactory completion and language of the intended product or service the staff performance has to be evaluated. Document the lessons from the project. Prepare the reports on project feedback analysis followed by the project execution report. The phase which involve in the above areThe preparation stage involves the preparation and praise of project outline, project plan and project budget. The next stage involves selecting and briefing the project team about the proposals followed by discussions on the roles and responsibility of the project member and the organization. The project management life cycle A Life cycle of a project consists of the following Understanding the scope of the project Establishing objectives of the project expressionting and planning various activities Project execution and Monitor and control the project resources. peril Management- try is defined in ISO 3 deoxycytidine monophosphate0 as the effect of uncertainty on objectives (whether positive or ostracize). Risk management can therefore be considered the identification, assessment, and prioritization of gambles followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of too bad events or to maximize the realization of opportunities. Risks can come from uncertainty in monetary markets, project failures, legal liabilities, source risk, accidents, inbred causes and disaste rs as well as count attacks from an adversary.Several risk management standards have been developed including the Project Management Institute, the National Institute of Science and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary amplely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, fiscal portfolios, actuarial assessments, or universal health and refuge. The strategies to manage risk embroil transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.Certain aspects of many of the risk management standards have come under criticism for having no mensural improvement on risk even though the confidence in estimates and decisions increase. unavoidableness and objectives of SCM- SCM is the abbreviation of affix mountain chain Management. It is considered by many express worldwide as the ultimate solution towards efficient endeavour management. SCM is required by and enterprise as a tow to enhance management strong suit with a following organizational objective Reduction of inventory-Enactment in functional effectiveness of existing systems like ERP, history.Software and Documentation like monetary reports statements ISO 9000 Documents etc.tera Enhancement of participation take and authorization train- utile integration of two-fold systems like ERP, communication systems, documentation system and secure, Design R systems etc. break out utilization of resources- men, material, equipment and specie. Optimization of money flow cycle within the organization as well as to and from external agencies. Enhancement of value of products, operations and services and consequently, enhancements of gainfulness.Enhancement of pleasure level of customer and clients, supporting institutions, statutory control agencies, suppo rting institutions, statutory control agencies, suppliers and vendors, employees and executives . Enhancement of flexibility in the organization to help in easy carrying out of schemes involving modernization, expansion and divestment, merges and acquisitions Enhancement of coverage and verity of management information systems. With the objectives of SCM its instruction execution are required.Implementation is in the form of various functional blocks of an organization interpenetrated through which a tranquil flow of the product development is possible. A relatively new SCM option involves web based software with a web browser interface. Several electronic marketplaces for buying and merchandising goods and materials. Steps involved in the implementation of SCM- There is many steps which involved in SCM implementation are- agate line Process, gross revenue and marketing.Logistics, costing, demand planning, trade- off analysis, environmental requirement, process stability, integ rated add together, supplier management, product design, suppliers, customers, material specifications, etc. Some important aspect of SCM- The level of competition existing in the market and the impact of competitive forces on the product development. Designing and on the job(p) on a strategic logic for better growth through value invention. workings out new value deviate in the product development along with necessary break point. Using it to analyze markets and the economies in product design.Time, customer, quality of product and the cin one casept of survival of fittest. Steps of SCM principals crowd customer by need Effective SCM groups, customer by tie refer service meets those particular segment. Customize the logistics networks In designing their logistics network, companies need to focus on the service requirement and profit possible of the customer segments identified. Listen to signals of market demand and plan accordingly- sales and operations planners must monito r the entire supply chain to detect early warning signals of changing customer demand and needs.Differentiate the product fold upr to the customer companies today no interminable can afford to bourgeon pile inventory to compensate for possible forecasting errors, instead, they need to postpone product distinction in the manufacturing. Process closer to actual customer demand. Strategically manage the source of supply by working almost with their key suppliers to reduce the overall casts of owning materials and services SCM maximizes profit margins both for themselves, and their supplies.Develop a supply chain wide technology outline as one of the cornerstones of successful SCM information technology must be able to support multiple levels of decision making. Adopt channel spanning performance measures- Excellent supply performance measurement systems do more than just monitor internal functions. They apply performance criteria that embrace bathe service and fiscal metrics, in cluding as such as each reports true profitability. MB0045 pecuniary Management Assignment set 1 Q. 1 Write the short cites on 1. fiscal management 2. Financial planning 3. great social organization 4. appeal of metropolis 5. vocation on right.Ans 1. Financial Management Financial Management is prep, directing, monitoring, organizing, and controlling of the monetary resources of an organization. The management of the finances of a business / organization in order to achieve fiscal objectives. Financial Management is the efficient and effective planning and controlling of fiscal resources so as to maximize profitability and ensuring liquidity for an individual(called personal finance), government(called public finance) and for profit and non-profit organization/ trustworthy (called corporate or managerial finance). world-widely, it involves balancing risks and profitability.The decision function of fiscal management can be separate into the following 3 major areas ent hronization DECISION 1. Determine the keep down number of assets needed by a riotous hence well tied to the parcelling of finances 2. Two type of investment decisions namely pileus investiture decisions re large sums, non routine, longer term, critical to the business like secure of plant and machinery or factory Working upper-case letter enthronization decisions re more routine in nature, short term but are also very critical decisions like how much and how long to invest in inventories or receivables FINANCING DECISION . later on deciding on the amount and type of assets to buy, the financial manager needs to ascertain on HOW TO FINANCE these assets with the sources of fund 2. financial support decisions for example Whether to use external adoptions/debts or share big(p) or maintained loot Whether to borrow short, medium or long term What sort of riffle all borrowings or part debts part share jacket crown or 100% share pileus The needs to determine how m uch dividend to kick in out as this will directly affects the financial decision.Financial Planning Financial Planning is an exercise aimed to ensure availability of right amount of money at the right time to meet the individuals financial goals model of Financial Planning Financial Goals refer to the dreams of the investor articulated in financial terms. Each dream implies a purpose, and a schedule of currency requirements for realising the purpose Asset allotment refers to the distribution of the investors wealth between different asset classes (gold, property, righteousness, debt etc. Portfolio Re-balancing is the process of changing the investors asset allotment Risk Tolerance / Risk appreciation refers to the appetite of the investor for investment risk that is to say risk of outrage Financial Plan Is a road map, a blue print that lists the investors financial goals and outlines a strategy for realising them Quality of the Financial Plan is a function of how much info rmation the prospect shares, which in turn depends on comfort that the planner inspires Capital Structure Capital building of a solid is a reflection of the overall investment and backing strategy of the firm.Capital structure can be of various kinds as described below Horizontal working not bad(p) of the United States structure the firm has zero debt component in the structure pleat. Expansion of the firm takes through comeliness or retained kale only. plumb jacket structure the base of the structure is formed by a nice amount of justice share detonator. This base serves as the foundation on which the super structure of preference share jacket crown and debt is built. Pyramid mold capital structure this has a large proportion consisting of equity capita and retained earnings. Inverted pyramid shaped capital structure this has a small component of equity capital, reasonable level of retained earnings but an ever-increasing component of debt. SIGNIFICANCE OF CAPITAL STRUCTURE Reflects the firms strategy Indicator of the risk profile of the firm Acts as a appraise management tool Helps to light up the image of the firm. FACTORS INFLUENCING CAPITAL STRUCTURE bodily strategy Nature of the industry flow rate and past capital structure damage of Capital Cost of capital is the rate of return the firm requires from investment in order to increase the value of the firm in the market place.In economic sense, it is the cost of raising gold required to finance the proposed project, the borrowing rate of the firm. Thus under economic terms, the cost of capital whitethorn be defined as the charge average cost of each type of capital. There are three basic aspects about the imagination of cost 1. It is not a cost as such The cost of capital of a firm is the rate of return which it requires on the projects. That is wherefore it is a hurdle rate. 2. It is the minimum rate of return A firms cost of capital represents the minimum rate of return which is required to maintain at least the market value of equity shares. . It consists of three components. A firms cost of capital includes three components a. return key at Zero Risk train It relates to the expected rate of return when a project involves no financial or business risks. b. stage business Risk amends premium Business risk relates to the variability in operating(a) profit (earnings before avocation and taxes) by virtue of changes in sales. Business risk premium is determined by the capital budgeting decisions for investment proposals. c. Financial Risk Premium Financial risk relates to the pattern of capital structure (i. e. debt-equity mix) of the firm, In general, a firm which has higher debt content in its capital structure should have more risk than a firm which has relatively low debt content. This is because the former should have a greater operating profit with a view to covering the periodic fill stipend and re remuneratement of principal at the tim e of maturity than the latter. avocation on fairness When a co. uses refractory kindle bearing capital along with owned capital in raising finance, is give tongue to craft on impartiality. (Owned Capital = Equity component part Capital + put out Reserves )Trading on equity represents an arrangement under which a federation uses pecuniary resource carrying frosty come to or dividend in such a way as to increase the rate of return on equity shares. It is possible to raise the rate of dividend on equity capital only when the rate of interest on better interest bearing security is less than the rate of return earned in business. Two other terms Trading on Thick Equity -When borrowed capital is less than owned capital Trading on Thin Equity -When borrowed capital is more than owned capital, it is called Trading on thin Equity.Q. 2 a. Write the features of temporary divined and also write the factors (08 Marks) Influencing divined policy? b. What is rate level? Ans a) U sually, wit of directors ofcompanydeclaresdividendin one-year general showdown aft(prenominal) finding the real net profit position. If boards of directors give dividend for current year before closing of that year, past it is called interim dividend. This dividend is declared between two annual general meetings. Before declaring interim dividend, board of directors should estimate the net profit which will be in future(a).They should also estimate the amount ofreserveswhich will subtract from net profit inprofit and loss appropriation account. If they think that it is fit for operating of business after declaring such dividend. They can issue but after completing the year, if network are less than estimates, then they have to pay the amount of declared dividend. For this, they will have to take give. Therefore, it is the duty of directors to deliberate with financial advisor before taking this decision.Accounting treatment of interim dividend in final accounts of company- graduation Case temporary dividend is shown both in profit and loss appropriation account and equilibrium sheet , if it is extracurricular thetrial balancein given question. ( a) It will go to debit side of profit and loss appropriation account (b) It will also go to current liabilities head in liabilities side. Second CaseInterim dividend is shown only in profit and loss appropriation account, if it is shown in trial balance. ( a) It will go only to debit side of profit and loss appropriation account.If in final declaration is given outside of trial balance and this will be proposed dividend and interim dividend in trial balance will be deducted for writing proposed dividend in profit and loss appropriation account and balance sheet of company, because if we will not deducted interim dividend, then it will be double deducted from net profit that is disparage and error shows when we will match balance sheets assets with liabilities. Factors affecting dividend policy. The di vidend decision is difficult decision because of conflicting objectives and also because of escape of specific decision-making techniques.It is not easy to lay down an optimum dividend policy which would maximize the long wealth of the shareholders. The factors affecting dividend policy are group into two broad categories. 1. monomania considerations 2. Firm-oriented considerations Ownership considerationsWhere ownership is concentrated in few people, there are no problems in identifying ownership interests. However, if ownership is change on a wide spectrum, the identification of their interests becomes difficult. Various groups of shareholders whitethorn have different desires and objectives.Investors gravitate to those companies which combine the mix of growth and desired dividends. Firm-oriented considerationsOwnership interests alone whitethorn not determine the dividend policy. A firms needs are also an important consideration, which include the following contractual and legal restrictions Liquidity, credit-standing and working capital involve of capital for immediate or future expansion Availability of external capital. Risk of losing control of organization Relative cost of external coin Business cycles get off dividend policies and stockholder relationships.The following factors affect the establishment of a dividend policy Nature of BusinessCompanies with unstable earnings adopt dividend policies which are different from those which have steady earnings. paper of ShareholdingIn the case of a closely held company, the personal objectives of the directors and of a majority of shareholders whitethorn govern the decision. To the contrary, widely held companies whitethorn take a dividend decision with a greater sense of responsibility by adopting a more formal and scientific approach. Investment OpportunitiesMany companies retain earnings to allay planned expansion.Companies with low credit ratings whitethorn feel that they whitethor n not be able to deceive their securities for raising necessary finance they would need for future expansion. So, they may adopt a policy for retaining bigger portion of earnings. Similarly, is a company has mercenary opportunities for investing its coin and can earn a rate which is higher than its cost of capital, it may adopt a orthodox dividend policy. LiquidityThis is an important factor. There are companies, which are profitable but cannot generate ample hard currency, since profits are to be reinvested in set assets and working capital to boost sales.Restrictions by Financial InstitutionsSometimes financial institutions which grant long-term bestows to a company put a clause restricting dividend payment till the loan or a substantial part of it is repaid. InflationIn period of inflation, funds generated from depreciation may not be nice to replace worn out equipment. Under inflationary situation, the firm has to depend upon retained earnings as a source of funds to ma ke up for the shortfall. Consequently, the dividend pay out ratio will tend to be low. Other factors succession of the company has some effect on the dividend decision.The demand for capital expenditure, money supply, etc. , undergo great oscillations during the different stages of a business cycle. As a result, dividend policies may fluctuate from time to time. Ans b) reorder Level This is that level of materials at which a new order for supply of materials is to be placed. In other words, at this level a purchase requisition is make out. This level is fixed somewhere between maximum and minimum levels. Order points are based on custom during time necessary to requisition order, and receive materials, positive(p) an allowance for protection against stock out.Theorder pointis reached when inventory on hand and quantities cod in are equal to the lead time usage bar plus the safety stock quantity. Formula of Re-order Level or Ordering head up The following two formulas are used f or the calculation ofreorder level or point. Ordering point or re-order level = Maximum daily or periodical or monthly usage ? sensation time The above formula is used when usage and lead time are known with certainty therefore, no safety stock is provided. When safety stock is provided then the following formula will be applicable Ordering point or re-order level = Maximum daily or weekly or monthly usage ?Lead time + Safety stock Q. 3 gross revenue Rs. 400, 000 less returns Rs 10, 000, Cost of Goods exchange Rs 300,000, Administration and selling expenses Rs. 20, 000, touch on loans Rs. 5000, Income tax Rs. 10000, preference dividend Rs. 15,000, Equity Share Capital Rs. 100, 000 Rs. 10 per share. feel EPS. Sales Rs. 400, 000 less returns Rs 10, 000, Cost of Goods Sold Rs 300,000, Administration and selling expenses Rs. 20, 000, rice beer on loans Rs. 5000, Income tax Rs. 10000, preference dividend Rs. 15,000, Equity Share Capital Rs. 100, 000 Rs. 10 per share. Find EPS. Sale s 400,000 Less Returns 10,000 390,000 Less COGS 30,000 S 20,000 Int on Loan 5,000 IT 10,000 325,000 Div 15,000 ESC 100,000 10/- NPAT Pref Share Div No of Shares NPAT 55,000 less Pref Share Div 15,000 40,000 EPS 40,000 =Rs. 4/- 10,000 Q. 4 What are the techniques of evaluation of investment? trinity steps are involved in the evaluation of an investment Estimation of interchange flows Estimation of the required rate of return (the opportunity cost of capital) Application of a decision rule for making the choice. The first two steps, discussed in the subsequent chapters, are assumed as given. Thus, our discussion in this chapter is confined to the third step. speifically, we focus on the merits and demerits of various decision rules. Investment decision ruleThe investment decision rules may be referred to as capital budgeting techniques, or investment criteria. A sound appraisal technique should be used to mea sure the economic worth of an investment project. The essential property of a sound technique is that it should maximize the shareholders wealth. The following other characteristics should also be possessed by a sound investment evaluation criterion. It should consider all bullion flows to determine the true profitability of the project. It should provide for an objective and unambiguous way of separating good projects form bad projects. It should help ranking of projects according to their true profitability. It should secernate the fact that bigger cash flows true profitability. It should recognize the fact that bigger cash flows are preferred to smaller once and early cash flows are preferable to later ones. It should help top learn among mutually exclusive projects that project which maximizes the shareholders wealth. It should be a criterion which is applicable to any conceivable investment project self-employed person of other. These conditions will be clarified as we discuss the features of various investment criteria in the following pages. Evaluation criteria A number of investments criteria (or capital budgeting techniques) are in use in proactive. They may be grouped in the following two categories 1.Discounted cash flow (DCF) criteria Net present value (NPV) Internal rate of return (IIR) profitableness index (PI) 2. Non-discounted cash flow criteria requital period (PB) Discounted payback period Accounting rate of return (ARR). Discounted payback is a variation of the payback method. It involves discounted cash flows, but as we shall see later, it is not a true measure of investment profitability. We will show in the following pages that the net present value criterion is the most valid technique of maximizing the shareholders wealth. Problems associated with brusque working capital Working capital may be regarded as the life blood of business.Working capital is of major importance to internal and external analysis because of it s close relationship with the current periodic operations of a business. Every business needs funds for two purposes. * Long term funds are required to create production facilities through purchase of fixed assets such as plants, machineries, lands, buildings & etc * Short term funds are required for the purchase of raw materials, payment of wages, and other day-to-day expenses. . It is other wise known as revolving or circulating capital It is postcode but the going away between current assets and current liabilities. i. e. Working Capital = menstruum Asset Current Liability. Businesses use capital for construction, renovation, furniture, software, equipment, or machinery.It is also commonly used to purchase inventory, or to make payroll. Capital is also used often by businesses to put a down payment down on a piece of commercial real estate. Working capital is essential for any business to succeed. It is nice increasingly important to have access to more working capital when we need it. Q. 5 What are the problems associated with inadequate working capital? A business firm must maintain an adequate level of working capital in order to run its business smoothly. It is worthy to note that both inordinate and inadequate working capital positions are harmful. Working capital is just like the heart of business. If it becomes weak, the business can hardly prosper and survive.No business can run successfully without an adequate amount of working capital. Danger of inadequate working capital When working capital is inadequate, a firm faces the following problems. hardened Assets cannot efficiently and effectively be utilized on account of lack of sufficient working capital. Low liquidity position may lead to liquidation of firm. When a firm is unable to meets its debts at maturity, there is an unsound position. Credit worthiness of the firm may be damaged because of lack of liquidity. Thus it will lose its reputation. There by, a firm may not be able to get c redit facilities. It may not be able to take advantages of cash discount. Disadvantages of Redundant or Excessive Working Capital 1.Excessive Working Capital means ideal funds which earn no profits for the business and hence the business cannot earn a proper rate of return on its investments. 2. When there is a redundant working capital, it may lead to unnecessary acquire and accumulation of inventories causing more chances of theft, ravage and losses. 3. Excessive working capital implies excessive debtors and defective credit policy which may cause higher incidence of bad debts. 4. It may result into overall inefficiency in the organization. 5. When there is excessive working capital, relations with banks and other financial institutions may not be maintained. 6. Due to low rate of return on investments, the value of shares may also fall. 7.The redundant working capital gives rise to speculative transactions. Disadvantages or Dangers of miserable Working Capital 1. A business s ector which has inadequate working capital cannot pay its short-term liabilities in time. Thus, it will lose its reputation and shall not be able to get good credit facilities. 2. It cannot buy its requirements in volume and cannot avail of discounts, etc. 3. It becomes difficult for the firm to exploit indulgent market conditions and undertake profitable projects due to lack of working capital. 4. The firm cannot pay day-to-day expenses of its operations and its creates inefficiencies, increases costs and reduces the profits of the business. 5.It becomes impossible to utilize efficiently the fixed assets due to non-availability of liquid funds. 6. The rate of return on investments also falls with the paucity of working capital. Disadvantages or Dangers of Inadequate or Short Working Capital bungholet pay off its short-term liabilities in time. Economies of scale are not possible. Difficult for the firm to exploit complimentary market situations Day-to-day liquidity worsens unseemly utilization the fixed assets and ROA/ROI falls acutely Q. 6 What is supplement? Compare and seam between operating supplement and financial supplement (10 Marks) supplement is the action of a lever or the mechanical advantage gained by it it also means effectiveness or power.The common adaptation of supplement is derived from the use or manipulation of a tool or device termed as lever, which provides a substantive soupcon to the meaning and nature of financial supplement. When an organization is planning to raise its capital requirements (funds), these may be raised either by issuing debentures and securing long term loan 0r by issuing share-capital. Normally, a company is raising fund from both sources. When funds are raised from debts, the Co. investors will pay interest, which is a definite liability of the company. Whether the company is earning profits or not, it has to pay interest on debts. But one benefit of raising funds from debt is that interest paid on debts is allowed as deduction for income tax. When funds are raised by issue of shares (equity) , the investor are paid dividend on their investment. Dividends are paid only when the confederacy is having sufficient amount of profit. In case of loss, dividends are not paid. But dividend is not allowed as deduction while computing tax on the income of the companionship. In this way both way of raising funds are having some advantages and disadvantages. A come with has to conclude that what will be its mix of Debt and Equity, considering the liability, cost of funds and expected rate of return on investment of fund. A Company should take a proper decision about such mix, otherwise it will face many financial problems.For the purpose of determination of mix of debt and equity, leverages are calculated and analyzed. Concept of Financial Leverage Leverage may be defined as the employment of an asset or funds for which the firm pays a fixed cost or fixed return. The fixed cost or return may, therefore be thought of as the full annum of a lever. Financial leverage implies the use of funds carrying fixed commitment charge with the objective of increasing returns to equity shareholders. Financial leverage or leverage factor is defined, as the ratio of summate value of debt to total assets or the total value of the firm. For example, a firm having a total value of Rs. ,00,000 and a total debt of Rs. 1,00,000 would have a leverage factor of 50 percent. There are difficult measures of leverage such as. i. The ratio of debt to total capital ii. The ratio of debt to equity iii. The ratio of net operating income (earning before interest and taxes) to fixed charges) The first two measures of leverage can be expressed either in obligate v8lue or market value the debt of equity ratio as a measure of financial leverage is more popular in practice. Risk & Financial Leverage Effects of financial LeverageThe use of leverage results in two clear effects i. Increasing the shareholders earning under comfortable economic conditions, and ii.Increasing the financial risk of the firm. ponder there are two companies each having a Rs. 1,00,000 capital structure. One company has borrowed half of its investment while the other company has only equity capital Both earn Rs. 2,00,000 profit. The ratio of interest on the borrowed capital is 10%and the rate of corporate tax 50%. permit us calculate the effect of financial leverage, both in the shareholders earnings and the Companys financial risk in these two companies. (a) Effect of Leverage on Shareholders Earnings Company A Company B Rs. Rs. Profit before Interest and taskes 2,00,000 2,00,000 Equity 10,00,000 5,00,000 Debt - 5,00,000 Interest (10%) - 50,000 Profit after interest but before Tax 2,00,000 1,50,000 Taxes 50% 1,00,000 75,000 Rate of return on Equity of Company A Rs. 1,00,000/Rs. 10,00,000 = 10% Rate of return on Equity of Company B Rs. 75,000/Rs. 5,00,000 = 15% The above illustration points to the favorable effect of the leverage factor on earnings of shareholders. The concept of leverage is 5 if one can earn more on the borrowed money that it costs but detrimental to the man who fails to do so far there is such a thing as a negative leverage i. e. borrowing money at 10% to find that, it can earn 5%. The difference comes out of the shareholders equity so leverage can be a double-edged sword. b) Effect of Leverage on the financial risk of the companyFinancial risk broadly defined includes both the risk of possible insolvency and the changes in the earnings getable to equity shareholders. How does the leverage factor leads to the risk possible insolvency is self-explanatory. As defined early the inclusion of more and more debt in capital structure leads to increased fixed commitment charges on the part of the firm as the firm continues to lever itself, the changes of cash insolvency leading to legal bankruptcy increase because the financial charges incurred, by the firm surmount the expected earnings. Obviously this leads to fluctuations in earnings acquirable to the equity shareholders. Relationship Financial and operational leverageRelationship between financial and operating leverageIn business terminology, leverage is used in two senses Financial leverage & Operating Leverage Financial leverageThe effect which the use of debt funds produces on returns is called financial leverage. Operating leverageOperating leverage refers to the use of fixed costs in the operation of the firm. A firm has a high degree of operating leverage if it employs a greater amount of fixed costs. The degree of operating leverage may be defined as the serving change in profit resulting from a circumstances change in sales. This can be expressed as = percentage Change in Profit/ part Change in SalesThe degree of financial leverage is defined as the percent change in earnings useable to common shareholders that is associated with a given percent age change in EBIT. Thus, operating leverage affects EBIT while financial leverage affects earnings after interest and taxes the earnings available to equity shareholders. For this reason operating leverage is sometimes referred to as first stage leverage and financial leverage as second stage leverage. Therefore, if a firm uses a considerable amount of both operating leverage and financial leverage even small changes in the level of sales will produce wide fluctuations in earnings per share (EPS).The combine effect of both these types of leverages is after called total leverage which, is closely tied to the firms total risk. MB0046 -Marketing Management Assignment Set 1 Q. 1 a. Explain the different micro-environmental forces with examples. Forces in the micro environment pic 1 The Company Remember, in the antecedent unit we discussed about marketing mix and marketing plan. Safe Express, a leader in the supply chain management solution wants to hold its number one position in th e US $ 90 meg Indian logistics market. The company plans to stretch its service areas in the coming months. To meet the targets of the marketing plan, other departments of safe express also expanding their horizon.The Company is coming out with logistics parks in different cities plans to hold seven million square feet of warehouse capacity in the next three years and invest Rs 10 billion in three years to meet those targets. The above example shows that the companys marketing plan should be support by the other functional departments also. 2 Intermediaries Marketing intermediaries These are firms which distribute and sell the goods of the company to the consumer. Marketing intermediaries play an important role in the distribution, selling and promoting the goods and services. Stocking and delivering, bulk breaking, and selling the goods and services to customer are some of the major functions carried out by the middlemen.Retailers, wholesalers, agents, brokers, jobbers and carry forward agents are few of the intermediaries. Retailers are final link between the company and the customers. Their role in the marketing of product is increasing every day. 3 Publics These are microenvironment groups, which help a company to generate the financial resources, creating the image, examining the companies policy and growing the attitude towards the product. We can identify cardinal types of publics 1. Financial publics influence the companys ability to obtain funds. For example, Banks, investment houses and stockholders are the major financial publics. 2. Media publics carry news show and features about the company e. g.Deccan Herald 3. advertizement regulation agencies, telecom regulation agency( TRAI), and insurance regulation agency(IRDA) of the government 4. Citizen action groups make by the consumer or environmental groups. For example, people for ethical treatment of animals (PETA) or Greenpeace. 5. General publics a compa