Tuesday, 14 October 2014

SC0006 – GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT

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ASSIGNMENT

DRIVE
SUMMER 2014
PROGRAM
MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME
SC0006 – GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT
SEMESTER
4
BK ID
B1661
CREDITS
4
MARKS
60


Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.


Q.1 Assume that you are working in a textile company. Your company decides to import all the raw materials cotton clothing from the global suppliers to improve the sales. The company assigns you the task of analysing various issues that must be considered while importing. What are different issues you face while importing the goods from a global supplier?

Ans : Conducting business overseas always carries risks. The business culture may be different, or there may be different regulations that you aren't aware of. The risk of confusion can be particularly high if your suppliers speak a different language. Different countries can also present other potential problems. For example, a country could suddenly introduce new export controls or suffer a natural disaster. Market research is an important way of reducing these risks. The more you find out about a country and its politics, economy, culture and



Q.2 Insurance Claim by Jayshri Impex: Jayshri Impex is one of India's leading garment manufacturer and exporter of textile dyes and chemicals whose manufacturing facility is located at Jethpur (near Rajkot), Gujarat. The head office of the company is at Mumbai. The company manufactures an African traditional dress worn by all natives of African cities - "khanga". Jayshri Impex has set high standards in garment export and it is recognised by the government of India for its extraordinary work. They have their presence in other cities of India as well as in Africa.

Theft of goods:

Armed bandits on October 5, 2004, looted the export consignment of 185 bales of fabrics from the train, when it was transported to Brazzaville (Republic of Congo, West Africa). The company had insured their cargo with Bajaj Allianz and lodged a claim at the Bajaj Allianz, Rajkot office on the same day.

Insurance support from Allianz:

Even though the location of theft was in the remote jungles of Africa, Bajaj Allianz appointed Lloyd's Agency to carry out a survey immediately to check for the correctness of the claim. Lloyd's was submitted on the survey report on November 20, 2004. It took a month for Lloyd's to submit the report due to the procedural formalities involved in Africa to procure documents like police papers and no trace reports. Since the survey report was submitted in French a translation of the same was done at Ahmedabad on November 23, 2004. The Insured submitted all the remaining documents such as Power of Attorney, Original Bill Of Landing, NOC from Consignee, etc on November 25, 2004 from their Head Office at Mumbai. The claim was processed and based on the survey findings it was found to be true and the insurance amount of Rs.31,37,360/- was released on November 30, 2004.

Inference

Jayshri Impex managed to avoid a huge loss thanks to the insurance that it had purchased. The insurance company Bajaj Allianz also responded quickly and supported its client by releasing the amount at the earliest.
Why did Jayshri Impex claim for insurance? What type of insurance may Jayshri Impex opted for. How did the insurance company help Jayshri Impex?

(Source:http://general.bajajallianz.com/BagicCorp/bajaj_home/claims/case_study.jsp)

Ans: Reason for claiming insurance:

Jayshri Impex is a leading garment manufacturer and exporter of textile dyes and chemicals. The manufacturing facility is located at Jethpur (near Rajkot), Gujarat while the head office is at Mumbai.
Jayshri Impex manufactures "khanga" - an African traditional dress worn by all natives of African cities.  Armed bandits on October 5, 2004, looted the export consignment of 185 bales of fabrics from the train, when it was transported to Brazzaville (Republic of Congo, West Africa). The company had insured their cargo with Bajaj




Q.3 Explain in detail about INCO terms.

Ans: Definition of INCO terms:

The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes

What do they indicate:

A series of three-letter trade terms related to




Q.4 Name the two types of rate making and explain the factors affecting air freight rates.

Ans: Discussion of freight rates (general and specific commodity rate) with example:

A freight rate (historically and in ship chartering simply freight) is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and



Q.5 Write short notes on:
a. Bareboat Charter
b. Combination vessels
c. Importance of free trade zones
d. Dry ports in India

Ans :a. Bareboat Charter:

A bareboat charter is an arrangement for the chartering or hiring of a ship or boat, whereby no crew or provisions are included as part of the agreement; instead, the people who rent the vessel from the owner are responsible for taking care of such things.
There are legal differences




Combination vessels:

An ore-bulk-oil carrier, also known as combination carrier or OBO, is a ship designed to be capable of carrying



Importance of free trade zones:

A free trade zone (FTZ), also called foreign-trade zone, formerly free port, is an area within which goods may be landed, handled, manufactured or reconfigured, and re exported without the intervention of the customs authorities


Dry ports in India:

A dry port, also called sometimes an inland port or multimodal logistics centre, is an inland terminal connected to a seaport by rail or road.


Q.6 Explain the global trends that affect the decision of a global logistics manager

Ans:  Explanation of global trends:

1. Market concentration :

In economics, market concentration is a function of the number of firms and their respective shares of the total production (alternatively, total capacity or total reserves) in a market. Alternative terms are Industry concentration


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SC0007 – CATEGORY MANAGEMENT IN PURCHASING

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ASSIGNMENT
DRIVE
SUMMER 2014
PROGRAM
MBADS (SEM 4/SEM 6)
MBAFLEX/ MBA (SEM 4)
PGDSCMN (SEM 2)
SUBJECT CODE & NAME
SC0007 – CATEGORY MANAGEMENT IN PURCHASING
BK ID
B1662
CREDITS AND MARKS
4 CREDITS AND 60 MARKS

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q. 1. Write Short notes on
·         Obstacles for driving change in category management process
·         Product category life cycle
·         Stakeholder mapping
·         Request for Information

Answer:
Obstacles for driving change in category management process: Driving change: A high-quality strategic purchasing deals more with change and its management than anything else. You can add a great value to the organisation when you create good sourcing strategy for an area of expenditure. The sourcing strategy that you develop becomes worthless if you are unable to implement it effectively. The strategic purchasing also needs the support, assistance and active participation of different parts of the organisation.
Q. 2. Explain opportunity analysis. Explanation should include:
·         Use of opportunity analysis
·         How it is carried out?
·         Benefits
·         Disadvantage
·         Example
·         Alternative form of opportunity analysis
Answer: Opportunity analysis is performed to identify the categories on priority that will be tackled before the process begins. It can be considered as a tool to identify the priorities. Opportunity analysis tool is used during the course of the project to evaluate the opportunities. The opportunity analysis is required at this stage to analyse the opportunities that are not clear or was not fully tested before beginning the project. A well-structured category management programme involves multiple categories and category teams. These categories and teams are
Q. 3. Wal-Mart redefines sourcing strategy.
·         Reason why Wal-Mart redefined its strategy
·         Description the strategy
·         Benefits
·         Evaluation of Wal-Mart’s strategy
·         Conclusion
Answer: Reason why Wal-Mart redefined its strategy
Wal-Mart redefined its strategies to reduce costs of goods, accelerate speed to market, and improve the quality of its products. The new global sourcing strategy involves the creation of Global Merchandising Centers, a change in leadership and structure, and a strategic alliance with Li & Fung, a global sourcing organisation. This new structure is expected to leverage the company’s global scale. In the very short-term, it is likely the feature will prove more symbolic

Q. 4. List and describe the different activities in relation with logistics in purchasing
Listing of activities Brief description of activities including purpose of each activity
·         Customer service
·         Demand forecasting
·         Order processing
·         Warehousing and distribution center management
·         Purchasing

Answer: Customer service: Each and every medium and large sized organization that has connection with customers in some way or the other, supports a Customer service center, which is also referred to as support center. The main purpose of such service centers is to assist and benefit the clients as much as they can, so that they can retain the client with them for future, while solving all his queries at the same time in every possible way. The true meaning of “
Q. 5. Measures Taken to Improve Lessons Learnt Review (LLR) in ABC Company
Description of the main problem
What was the main problem faced by ABC? How did ABC tackle its problems? Description of the main problem, Analysis of ABC’s tackling of the problem. 8(2 marks each) 2, 8
·              description of how ABC correctly identified the solution to main problem
·              illustrate how the problem was repeated despite the solution
·              summarization of the final solution
·              conclude with results
Answer: Description of the main problem: The main problem of the company was that the LLRs that were created were not shared with the employees of the organisation properly. As a result of this, most of the employees were not aware of the mistakes and the new updates. The management of ABC deployed a team to check whether the LLR was shared


Q. 6. Explain any seven steps used for purchasing process sourcing strategy process.
Brief explanation of the following Profile the category Supply market analysis Develop the strategy Select the supplier process Negotiate and select the suppliers Implement and integrate in purchasing process Benchmarking and tracking results
Answer: Step 1 Profile the category: Understand everything about the spend category as the first step in the strategic sourcing process. This means defining the category and commodities in it. What is the current quantity used, types and sizes. Who are the users, where are they located, what are the processes used and who else is involved in the supply chain. Data must be documented in as much detail as possible as changes may be needed.
Step 2 Supply market analysis: Identify potential new
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SC0008 –PURCHASING AND CONTRACTING FOR PROJECTS

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ASSIGNMENT
DRIVE
SUMMER 2014
PROGRAM
MBADS (SEM 4/SEM 6)
MBAFLEX/ MBA (SEM 4)
PGDSCMN (SEM 2)
SUBJECT CODE & NAME
SC0008 –PURCHASING AND CONTRACTING FOR PROJECTS
BK ID
B1663
CREDITS AND MARKS
4 CREDITS AND 60 MARKS

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q. 1. Write short notes on:
·         3 R's in contract management
·         Contracting strategies
·         Target cost contract
·         Fixed price contract
Answer:3 R's in contract management: The statements below describe some of those interpersonal behaviours necessary to create the conditions for learning.  They describe the “3 Rs of Behaviour”. To get an idea of how well these are established with your classes, use this checklist for each of them.  Rate each statement then add up your total and read the notes that follow.
·         score 5 : this is true always, all of the time, with all students
·         score 4 : this is nearly always the case,
·          
·          
·         Contracting strategies: Contracting strategies are driven by the need to manage risk. They may be driven by the desire to take advantage of opportunities both now and in the future. They may also be driven by resource availability that’s needed to manage the activity. There is no one single best strategy and within a
·          
·         Target cost contract:Target Price Contracts are based on a cost reimbursable mechanism in which the contractor is reimbursed his costs (on an actual cost basis) subject to the application at the end of the project of a
·          
·         Fixed price contract: A fixed-price contract is a contract where the amount of payment does not depend on the amount of resources or time expended, as opposed to a cost-plus contract which is intended to cover the costs plus some amount of profit. Such a scheme is often used in military and government

Q. 2. Contract for Transferring the Newspaper Agency. Explain why Mishra could not claim breach of contract against Pranav.
·         Background of the case
·         Explanation terms and conditions of the contract that was entered into.
·         Inference of whether what was stated by Pranav falls under the terms and conditions
Answer: Pranav, a business man, owned a newspaper agency. He wanted to sell the newspaper agency to another party. Hence, in January 2010, he entered into negotiations with Mishra who had just started a newspaper agency business. Pranav informed Mishra that the newspaper agency has been making a profit of about Rs 10 lakh per annum over the last five years. Pranav also offered to let Mishra inspect the annual accounts of the newspaper agency, but


Q. 3. Assume that you are looking out for a contracting company for the construction of a hospital. You decide to draft a PQQ to all the proposed tenderers. Which questions you would include in the PQQ?
Writing the question
Justifying the need to include the question in the PQQ
Answer:A PQQ should be sent to all those who have expressed an interest in supplying a contracting authority with a particular requirement following an OJEU notice. The PQQ is used to select a shortlist of bidders out of those who expressed an interest. Those bidders who are successful at the pre-qualification stage will then be invited to tender (in the restricted procedure) or invited to negotiate (negotiated procedure), or to participate in


Q. 4. Explain payment security
·         Description of payment security
·         Discussion on various payment security risks
·         Indication of least and most risk from contractor’s point of view
Answer: Payment Security: The client or the buyer requires security for any advance or progresspayments, in case the contractor does not perform as per the contract.Therefore, to secure the client against such risks there needs to be somesecurity stating that the payment would be made.A formal information security policy must be defined, maintained, and followed at all times and by all participating entities. Enforcement measures such as audits and penalties for non-compliance may be necessary.
Benefits:

Q. 5. What contract and payment terms should be negotiated? What should be the base criteria for formulating the incentive scheme?
·         Analysis with respect to incentive mechanisms
·         Interpretation with respect to negatives of cost incentives
Answer: Incentives are external measures that are designed and established in order to influence motivation and behaviour of individuals, groups or organisations. There are many incentive systems or mechanisms and they are a combination of several coherent incentives. An incentive strategy should be developed by the client as part of the payment strategy. However, the client should not reveal the incentive strategy until the supplier or the

Q. 6. Can delivery affect the project? Explain.
·         Statement of the student’s viewpoint
·         Justification for it with supporting evidence
·         Conclusion
Answer:The transport department of an organisation is responsible for delivering the goods. Usually, the delivery of goods is done by the people who have expertise in the area of transportation. Sometimes even the project manager gets involved in the delivery of goods or services to assist the transportation department during import or export of materials. Usually, the items that are large in size and/or delicate involve greater risk and require greater attention while
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Sc0009–supply chain cost management

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Assignment
Drive
Summer 2014
Program
Mbads (sem 4/sem 6)
Mbaflex/ mba (sem 4)
Pgdscmn (sem 2)
Subject code & name
Sc0009–supply chain cost management
Bk id
B1664
Credits and marks
4 credits and 60 marks

Note: answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q. 1. Write short notes on
·         Methods of calculating costs of inventory
·         Cycle time
·         Various costs included in transaction costs
·         Different methods for identifying fair and reasonable pricing

Answer:methods of calculating costs of inventory:there are two methods for estimating ending inventory:
·         Gross profit method: let's assum
·          
·          
·         Cycle time: it is a period required to complete one cycle of an operation; or to complete a function, job, or task from start to finish. Cycle time is used in differentiating total duration of a process from its run time.
·          
Various costs included in transaction costs: transaction costs are important to investors because they are one of the key determinants of net returns. Transaction costs diminish returns, and over time, high transaction costs can mean thousands
Different methods for identifying fair and reasonable pricing:
·         Price competition
·          
Q. 2. What are the tasks that an organisation needs to perform before implementing the cost management strategy?
·         Listing of the tasks reviewing business plan and procurement /marketing strategy
·         Identifying participants for cost management team
·         Selecting primary costs to be managed
·         Building rest of the cost management team
Brief discussion on the tasks

Answer: strategic cost management has become an essential area now days. While formulating the strategy for the accomplishment of organizational overall objectives, different cost driver should be clearly identified. Identification of key cost drivers help companies to focus on key activities that will constitute almost 90% of the total costs. In view of this, the importance of strategic cost management should not be underestimated. This

Q. 3. What is process costing? Discuss the steps involved in process costing method.
Definition of the process costing
When to use process costing
Discussion of steps in process costing(what it involves and examples)
Answer: it is a method for determining the total unit cost of the output of a continuous production run (such as in food processing, petroleum, and textile industries) in which a product passes through several processes (or cost centers). It involves the following steps:
(1) the 'total cost per process' is computed by estimating the number of products passing through each process in a given period;
Q. 4.Discuss the steps involved in overcoming the constraints of cost management plan.
·         Description of constraints a company faces
·         Discussion on steps to overcome constraints
·         Conclusion

Answer:one approach is to use the theory of constraints (toc). This helps you identify the most important bottleneck in your processes and systems, so that you can deal with it and improve performance.  In this article, we'll explore the theory of constraints, and we'll look at how you can apply it to your own situation.The theory says that every system, no matter how well it performs, has at least one constraint that limits its performance – this is the

Q. 5.Why did hp redesign its packaging? How did they achieve these goals?
·         Listing of the reason to reduce cost
·         Summarization of the analysis of hp’s supply chain, findings, redesign product packaging, analysis of the redesigned packaging
·         Evaluation of benefits
·         Conclusion

Answer:technology giant hp’s commitment to design for environment has resulted in mega waste reduction. By re-designing its north american printer cartridge packages, the company will in 2007:
·         Reduce the amount of material used in the packages by an estimated 15 million pounds, including 3 million pounds of corrugated cardboard.
·         Increase the use of recycled content and the recyclability of its packaging – pvc (#3) plastic has been replaced with easier-to-
Q. 6. What are the challenges faced by hospitals in streamline their supply chain? How can these be overcome?
·         Listing and brief explanation of the challenges
·         Solution to overcome the challenges
Answer: hospitals and healthcare facilities are faced with many challenges. To remain competitive in the eyes of consumers, a facility must continue to offer the highest quality, cutting-edge patient care. However, to do this is costly for facilities to maintain, so working within budget is a main concern. Streamlining your supply chain is a good way to
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