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
D,E,F,G,H,I,J

SEM : VI SEC: A,B,C,

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:
Sector
Scope of Industrial management
Manufacturing
1. 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
Service

1.

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.no Criteria
1
Cost of
production
in relation
to
turnover
2
Factory
Layout

intermittent
high

continuous
Low

Process layout with similar

machines grouped together for
the same jobs, fixed layout

Product layout

Manpower Large technical content

Less technical skills

Marketing

Direct Customer

Through Agents

Types of
industry

Shipbuilding, civil works,

process equipments

Electronics, electrical,
automobiles, pipes, food

Type of
flow
Design

Intermittent

Continuous

Made to customers requirements

R&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