Subject:- Materials Management

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AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL.

Subject:- Materials Management

Total marks 80

Group A

Case 1 (10 Marks)

Renuka Machines Manufacturing Corporation

(A case on vender rating in material management)

Questions

1. Is DannisChako justified in eliminating George Machine Company as a supplier of brushes?

Answer: Renuka Thomas, President of Renuka Machines Manufacturing Corporation (RMMC), is concerned about company’s choice of suppliers for cleaning brushes, which are used in the company’s data processing equipment.

Renuka occasionally plays tennis with Sheela George, President of George Machine Company (GMC), one of thecompany’s suppliers of

2. In what respect is the complaint from George Machine Company justified?

Answer: Recently, Sheela complained to Renuka that her company has been having difficulty in getting the traditional share of Renuka’s business. On the last buy, Sheela’s company failed to get any business, even though Sheela believed she was the lowest bidder. Renuka tells Sheela that normally she does not get into the details of procurement, but

3. Prepare a report for Renuka Thomas explaining the decision to eliminate George Machine company as asupplier. Use quantitative data as much as possible to support your answer?

Answer: Renuka Thomas, President of Renuka Machines Manufacturing Corporation (RMMC), is concerned aboutcompany’s choice of suppliers for cleaning brushes, which are used in the company’s data processing equipment.

Renuka occasionally plays tennis with

Case -2 (10 Marks)

Cause of John Mathai s Sorrow

( A case of inventory car in m.m.)

Question:-

Q.1) Summarize &Analyse the case with reference to the principles of materials management?

Answer:John Mathai was a very sad man on Sunday, 12 April 1998. He was the Chief Executive of Telecom Installations Ltd, TIL, a wholly owned subsidiary of the major producers of telecom equipment in the country: Telecom Manufacturing Company (TMC). Around 88 per cent of the production of TMC was produced for the Government of India under special terms and prices, but the balance 12 per cent was routed through TIL, who were really the All India Sales, Serving and Installation network of TMC.

John’s wife Sheela, herself a commercial executive

Q.2) How to reduce the inventory of TIL without affecting its operations?

Answer:All the field offices were hoping to get a congratulatory message from their Chief for the good performanceachieved by TIL in sales, servicing and installation fields. Instead, everybody was surprised to get a crisp FAX onthe black Monday morning on the unlucky 13 April 1998, announcing the setting up of an Inquiry Teamconsisting of Mr. Sreedharan, an auditor from the Bangalore office and GirishSehajwala, Technical Executivefrom Mumbai office. The team was to analyze the reasons for the increase of inventory and submit its report

Case 3 (10 Marks)

Pool Stores

(A case of stores management in material management)

Question

Q.1) Study & Analyze the case with ref to the principles of materials management?

Answer:Raw materials form a critical part of manufacturing as well as service organization. In any organization, a considerable amount of material handling is done in one form or the other. This movement is either done manually or through an automated process. Throughout material, handling processes significant safety and health; challenges are presented to workers as well as management. Therefore, manual material handing is of prime concern for health and safety professional, and they must determine practical ways of reducing health risk to the workers.

Case 4 (10 Marks)

The Charminar Club

(A case of scrap disposal in material management)

Questions

1. List the other items of club scrap (besides old newspapers and magazines) that can be sold. Estimateapproximate quantum of income from each head of scrap sale?

Answer:Every metal product – from patio furniture to broken golf clubs – has value, and that value is determined by how much metal and what type of metal the item is constructed with.  For example, an old broken aluminum pot is worthless to you as cookware; but as aluminum scrap, it is worth at least a few dollars! Broken Stainless Steel grills are found in landfills all the time, and most people have no idea they are worth up to $100 as scrap metal.

2. What should the new secretary do about the sale of scrap?

Answer: The first step in selling your scrap metal is to collect and save any worthless metal items that you don’t want or need. Broken Christmas lights (copper wire), old toasters (steel body and copper wire cord), and old car parts are all examples of items worth saving.

Scrap metal can also be salvaged from other types of items: for example, an old wood door often has brass handles and steel hardware. Pull these metal

3. Draft a set of guidelines if Mr. Kavi chooses to regularize the sale of scrap material?

Answer: Disposal of Scrap, Salvage, and Excess Items

This policy is adopted in order to clarify the procedure for disposal of items no longer wanted or needed by the CLUB.

1. DIRECTOR's Authority.

Group B

Case-5 (10 Marks)

Question

Q.1) Summarize & analyze the case with reference to the principles of material management?

Answer:Shobha reinforced the commercial section by recruiting a senior manager, Inder Mohan, for handling additional export related tasks but decided to handle the technical tasks herself. Lalit telephoned about an order for 500 castings for a gear box as soon as he got the green signal from Shobha about her readiness. Drawings and specifications were received by FAX two days later. Shobha had 4 months to load the castings on a ship sailing from Mumbai. She travelled extensively in the northern state of Punjab to identify a suitable and reliable supplier.

Case-6 (10 Marks)

HAMCO

A case of Integrated Materials Management

Question

Q.1) Discuss the merits of the proposal of introducing the concept of IMM in HAMCO. Would you agreethat the apprehensions of the participants at the meeting were correct? Do you feel that the introduction ofIMM would achieve the target of 7.5 per cent of inventory reduction in six months? Give reasons to justifyyour opinion.

Answer:Various functions served by materials management include the material planning, purchasing, receiving, stores, inventory control, scrap and surplus disposal. All these functions can have separate working norms including the one for performance.Efficient management of input materials is of utmost importance in a business organization for maximizing materials productivity, which ultimately adds to the profitability of the organization.This requires well

Case 7 (10 Marks)

Decentralized Materials Department:

Question

Q.1) Discuss with en or to reduce the lead-time to almost to zero level. This can avoid the situation of the stockouts.

Answer: There are different purchase departments and stores for each of the product line since these businesses have grown sufficiently. However company has intentions to keep good homogeneity in the four divisions and maintain a centralized materials department. Mr. Ranade heads this department. Mainly company expects him to spearhead the activities, rules and regulations relating to the four materials departments. Mr. Ranade has common

Case 8 (10 Marks)

Transport Corporation

Questions:-

Q.1) Summarize and analyze the above case with reference to the principles of material management?

Answer:The central government, realizing that the transport industry should help achieve the laudable national objectives, enacted the Road Transport Corporation Act in 1950. By this act, each state has been asked to establish its own road transport corporations as a state government undertaking. The present major objective is to provide adequate, economic, efficient and well-coordinated transport services to the travelling public and at the same time

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