MBA (OPERATIONS MANAGEMENT) SEMESTER 3 OM 0010 - OPERATIONS MANAGEMENT - 4 CREDITS (BOOK ID B1232) ASSIGNMENT 60 MARKS Note: Answer all

l questions. Kindly note that answers for 10 marks questions should be Approximately of 400 words. Each question is followed by evaluation scheme.

Fully solved only rs 500/sem or rs 100/question paper , smu solved assignment available for mba ( I,IInd, IIIrd ,IVth sem) summer 2013 call us on 08273413412, or mail us computeroperator4@gmail.com
Q1 It is the job of operations managers to convince the stakeholders that the investment in plant and equipment is going to enhance the value of the investments already held by them in the organization. Explain some of the concepts that can be considered in analyzing the investment. (ROI; EBIT; ROA; cash flow; EVA- 5 X2 marks =10 marks) 10 marks Answer. Investment analyzing concepts: ROI- In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment. ROI is usually expressed as a percentage. ROI is a measure of cash generated by or lost due to the investment EBIT- In accounting and finance, earnings before interest and taxes (EBIT), also called operating profit or operating income is a measure of a firm's profit that excludes interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then operating income is sometimes used as a synonym for EBIT and operating profit. EBIT = Revenue Operating expenses (OPEX) + Non-operating income Operating income = Revenue Operating expenses ROA- The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue. ROA can be computed as:

This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Cash Flow- Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation. Cash flow notion is based loosely on cash flow statement accounting standards. It's flexible as it can refer to time intervals spanning over past-future.

EVA- Economic Value Added or EVA is an estimate of a firm's economic profit being the value created in excess of the required return of the company's investors (being shareholders and debt holders). Quite simply, EVA is the profit earned by the firm less the cost of financing the firm's capital. EVA calculation: EVA = net operating profit after taxes a capital charge [the residual income method] EVA = (r-c) capital [the spread method, or excess return method] Where, r = rate of return, and c = cost of capital, or the Weighted Average Cost of Capital (WACC). Q2 Explain the regional factors that affect location decision. (Location of raw materials; Location of markets; Labour factors; Climate and taxes - 4 X 2.5 marks= 10 marks) 10 marks Answer: Location of raw materials: Firms producing goods, and even firms producing services, need various materials to develop products that they can sell. Some firms need natural resources: a manufacturing sector like lumber needs

Q3 Explain the nine fundamental propositions about organisational effectiveness. (Explanation of 9 fundamental propositions 9 marks; conclusion 1 mark) 10 marks Answer: 9 fundamental propositions: 1. Q5 Discuss the Independent demand item techniques. (Reorder point (or Perpetual) Model 5 marks; Periodic review models 5 marks) 10 marks Answer: The two types of demand are Independent Demand and Dependant Demand for inventories. Independent Demand Q6 Explain the types of failures that occur in operations. (Design failures; Facilities failures; Staff failures; Supplier failures - 4 X 2.5 marks = 10 marks) 10 marks Answer: At its simplest failure is when something does not work as it should do. If the shop assistant who sells you an item of clothing fails to inform you of the fact that it should be dry cleaned, it is technically a failure. Different type s of failures ocuures in operation as: design failures, facilities failures, staff failures, supplier failures. 1. Design failures The overall design of an operation can prove to be the root cause of failure. In its design stage an operation might look fine on paper; only when it has to cope with real circumstances might inadequacies become evident. Some design

Fully solved only rs 500/sem or rs 100/question paper , smu solved assignment available for mba ( I,IInd, IIIrd ,IVth sem) summer 2013 call us on 08273413412, or mail us computeroperator4@gmail.com