Professional Documents
Culture Documents
1 Operations Management
Imp. Instructions –
2007-2008
E.P.S. (Rs.)
Ratios
1. Capacity Utilization:
Co. is utilizing it’s installed capacity at optimum level, which shows Co’s efficiency to use
available resources
MUL also reduced the number of hours required to produce a vehicle. From a high of
100 hours in FY01 to 41.86 hours in FY05, it has come a long way in improving its
Productivity and efficiency.
3. Inventory Management :
MUL follows just-in-time (JIT) inventory principles. Around 70 per cent of components
are outsourced, and manufacturing is undertaken based on JIT inventory principles
MUL has successfully improved average inventory turnover from15.2 in 2003-04 to 15.4
in 2004-05 and average receivables from 17.8 days in 2003-04 to 14 days in 2004-05.
4. Profitability :
Net profit increased 57.5 per cent
Net profit margin (PAT /Net Sales) increased from 6 %t in 2003-04 to 7.8 % in 2004-05
ROCE increased from 22.3 % in 2003-04 to 32.1 % in 2004-05
Return on av. net worth (RONW) increased from 16.5 % in 2003-04 to 21.5 % in 2004-05
EPS increased from Rs. 18.77 in 2003-04 to Rs. 29.55 in 2004-05.