AJAY KUMAR GARG ENGINEERING COLLEGE

AJAY KUMAR GARG ENGINEERING COLLEGE

AKGEC/IAP/FM/01

REV NO 01

SOLUTION OF SESSIONAL TEST PAPER

COURSE: B.TECH SUBJECT CODE & NAME:

INDUSTRIALMANAGEMENT (EHU 601)

MAX MARKS: 30 SEM : VI SEC: A,B,C, D,E,F,G,H,I,J

ANS 1. Industrial Management can be defined as the effective and efficient running of an industry using its human and non-human resources in order to achieve its set goals and objectives.It can also be defined as the effective and efficient utilization of organizational resources to achieve an industry set goals.

Industrial management is widely used in manufacturing as well as the service sectors. Some examples are:

SectorScope of Industrial management

Manufacturing1. Formulation of production plan

2. Control of processes and products

3. Inventory control

4. Design of plant layout

5. Scheduling of machines and processes etc

Service1. Construction project planning

2. Airlines operations

3. Hospital management

4. Transportation problems

5. Optimal use of natural resources etc

The basic concepts of industrial management and operations research are widely used in financial management, marketing management, logistics, purchasing etc. For example, the depreciation of machine is required in financial management also.

Ans 2 :A joint stock company (JSC) is a type of hybrid business entity that combines elements of a publicly traded company (corporation) and a partnership. Joint stock companies and partnerships bear some similarities, but differ greatly in taxation and government regulation.

Ownership

1. The owners of a JSC are called shareholders, while those of a partnership are called partners. Ownership of a JSC is represented by company shares or stock that can be sold on public stock markets. In contrast, ownership interests of a partnership cannot be transferred or sold. Partnerships may acquire new owners by consent of the current partners.

Taxation

2. A JSC is taxed as a corporate entity and must file independently of its owners. After the company's income is taxed, it distributes remaining profits to the shareholders in proportion to the number of stock they own. This income is taxed as self-employment tax on each shareholder's personal tax return.

In comparison, partnerships do not pay federal income taxes. Instead, the owners of a partnership simply report their share of company income on their personal tax forms.

Liability

3. Partnerships and JSCs offer their owners little protection from company liability. If either entity cannot meets its financial obligations, its creditors can pursue the personal assets of the partners or shareholders up to the amount of their ownership in the business.

ii)

S.noCriteriaintermittentcontinuous

1Cost of production in relation to turnoverhighLow

2Factory LayoutProcess layout with similar machines grouped together for the same jobs, fixed layoutProduct layout

3ManpowerLarge technical contentLess technical skills

4MarketingDirect CustomerThrough Agents

5Types of industryShipbuilding, civil works, process equipmentsElectronics, electrical, automobiles, pipes, food

6Type of flowIntermittentContinuous

7DesignMade to customers requirementsR&D and product testing

Ans 2.1. Monitoring inventory is a core function in any type of company that buys and uses raw materials, items for sale and ships finished product to customers. Inventory control allows the smooth flow of materials through an organization and touches on many other departments in a company. Accounting, planning and manufacturing all depend on accurate inventory records to perform their tasks.

Purchasing Information

2. The purchasing department in any company relies on the data in the inventory database or system to alert them when it is time to purchase new supplies, raw materials and items that are sold directly to the public. From retail stores to companies that manufacture widgets, purchasing is a vital part of the supply chain. Without accurate information to guide them, purchasing departments may not purchase materials in time to complete customer orders.

A company that practices lean manufacturing will not purchase supplies and materials until a specific level of inventory has been reached that triggers a purchase. Inventory inaccuracies in either direction cause that system to fail.

Sales

3. The sales department depends on accurate inventory numbers to plan their sales strategies. A salesman on a retail sales floor must be able to produce the item that they are selling to the customers. If he cannot consult an inventory database to let the customer know that an item is in stock, or if the database is not accurate, the wrong information will be given to the customer resulting in lost sales. An accurate inventory system is a vital tool for a retail sales department.

Materials Planning

4. Production planning depends on an accurate inventory to schedule and plan the widgets that are produced by the manufacturing department each day. The planning department develops a schedule by consulting available inventory and resources to determine which orders are produced first. Inventory control ensures that the numbers are accurate for production planning.

Shipping

5. Shipping departments pick items for shipment based on inventory counts of available finished goods. When the items are not on the shelves ready to be packed and shipped, the workers are unable to complete shipments.

Manufacturing

6. The manufacturing department of any company relies on inventory control to make sure that the materials that they need to build finished products are available. Manufacturing follows a production schedule that the planning department creates to ensure that customers receive orders on time. Faulty inventory data can shut down a manufacturing floor.

Scrap Data

7. Inventory control also keeps track of scrap data from production floors. An inventory system that tracks the amount of material that is scrapped during production alerts management when the amount of material scrapped exceeds normal limits.

Ans 3: i) Present production = 24,000 springs Present Labour productivity = present product/ total man ,hours

= 24,000/100*8*30

= 1 spring/man-hrs

ii) New production = 24,000 + 6,000 = 30,000 springs

New labour productivity = 30,000 / (100+ 25) *8*30

= 1 springs / man-hrs