OSDC Group Project the questions so far...

Discuss the way in which chosen organization creates the value. Focus on its inputs, throughputs, output and environment.

How will you measure the effectiveness of the chosen organization?

Draw a stakeholder map that identify your organization’s major and fringe stakeholder groups.

What kind of conflicts between its stakeholder groups would you expect to occur most?

Identify the stakeholder conflicts that need to be managed by a management graduate (during the first two years)

How has your organization responded to four design challenges−Extent of Differentiation (Entire organization)
−Integrating mechanisms used in your organization
−Is it centralized or decentralized?
−Is behavior in your organization is very much standardized? Whether mutual adjustment play an important role in coordinating the activities?

How many levels are there in your organization’s hierarchy? Is it tall or flat? Are you facing any problem associated with tall hierarchies?

How do the centralization, standardization and horizontal differentiation affect the shape of your organization?

What kind of structure (for example, functional, product division, multidivisional) does your organization have? Draw a diagram showing its structure and identify the major subunits or divisions in the organization.

Why does the company uses this kind of structure? Provide a brief account of the advantages and disadvantages associated with the structure of your organization.

Steps to use Solver Add-In in Excel 2007

[Click] Office Button -> [Click] Excel Options -> [Select] Add-Ins -> [Click] Go... -> [Select] Solver Add-in -> [Click] Ok
Now the add-in would be available in Data -> Analysis

Solving Basic Graphical Problems without Graphs, may be with them too

Lets take a function maximize profit 7x + 5y (Flair Furniture Example)
Subject to,
4x + 3y <= 240
2x + y <= 100

To solve these equations, let’s first name them and please note that we will strip off any <> sign to solve these simultaneous equations to arrive at the value of x and y.
4x + 3y = 240… (a)
2x + y = 100… (b)

Since (b) looks simpler, lets break that up
2x + y = 100
Taking 2x on the right hand side (RHS)
y = 100 – 2x… (c)

From (a)
4x + 3y = 240
Substituting the value of y from (c) to (a)
4x + 3(100 – 2x) = 240
4x + 300 – 6x = 240
4x – 6x = 240 – 300
-2x = -60
x = 30… (d)

From (b)
2x + y = 100
Substituting the value of x from (d) to (b)
2(30) + y = 100
60 + y = 100
y = 40

Now, if you insist that aapko line maarna hi hai, lets see the Graph Drawing approach too.

Lets again take
4x + 3y = 240… (a)
2x + y = 100… (b)

In (a), let x = 0
4(0) + 3y = 240
3y = 240
y = 80
You arrive at the point (0, 80)
In (a), let y = 0
4x + 3(0) = 240
4x = 240
x = 60
You arrive at the point (60, 0)
Now, draw a line from (0, 80) to (60, 0)

In (b), let x = 0, y would arrive to 100
In (b), let y = 0, x would arrive to 50
Now, draw a line from (0, 100) to (50, 0)

Both these lines will intersect and then do all the shading stuff as the professor taught, depending on whether the constraints are >= or <=

Operations Research: MTNL Problem

Given:
Time of the Day Operators Required
0200 – 0600 hrs 2
0600 – 1000 hrs 8
1000 – 1400 hrs 10
1400 – 1800 hrs 5
1800 – 2200 hrs 4
2200 – 0200 hrs 1
Each operator works for 8 hours.

Solution:
Let,
a = number of operators working from 0200 – 0600 hrs
b = number of operators working from 0600 – 1000 hrs
c = number of operators working from 1000 – 1400 hrs
d = number of operators working from 1400 – 1800 hrs
e = number of operators working from 1800 – 2200 hrs
f = number of operators working from 2200 – 0200 hrs

Since each operator works for 8 hours, there can be an overlap in terms of shifts because an operator who starts work at 0200 hrs may leave only at 1000 hrs, one who starts at 0600 hrs may leave at 1400 hrs.

This can be represented as,

  a
  [-----]
0200  0600
        b
        [-----]
      0600  1000
              c
              [-----]
            1000  1400
                    d
                    [-----]
                  1400  1800
                          e
                          [-----]
                        1800  2200
                                f

According to the first table, the number of operators required are constraints, however we have understood that there can be more than the ‘required’ number of operators because of a minimum shift time of 8 hours per operator. This can be represented as below (the ‘subject to’ conditions):

a + b >= 2
b + c >= 10
c + d >= 5
d + e >= 4
e + f >= 1
f + a >= 2

The objective function would hence be:
Minimize a + b + c + d + e + f

Great Men (and Women) who influenced Operations and Production Strategy

1. Adam Smith, commonly known as the father of modern economics, division of labour, free market and of course the 'invisible hand'
2. Charles Babbage, mathematician, philosopher, inventor and mechanical engineer who originated the concept of a programmable computer
3. Eli Whitney, the inventor of the cotton gin and standardization
4. Frederick Winslow Taylor who said there is one best way to do a job
5. Frank and Lillian Gilbreth who popularized a business efficiency technique called time and motion study
6. Henry Laurence Gantt, a mechanical engineer and management consultant who is most famous for developing the Gantt chart
7. Ford Whitman Harris who developed the Economic Order Quantity model in 1913
8. Elton Mayo, examined the effects of social relations, motivation and employee satisfaction on factory productivity
9. William Edwards Deming, Joseph Moses Juran, Philip Bayard Crosby and their contribution to quality management

Hints for Ameritrade Cost of Capital Solution

The below hints are limited to my little knowledge of CF, please feel free to post your comments or improvisations for the benefit of all!

1. Get inspired from Page 211 of Financial Management 7e by Prasanna Chandra and calculate Beta
2. Calculate average Beta of CS, QR and WIS, this will be estimated Beta for Ameritrade
3. Based on your assumption, pick up a risk free return % from Exhibit 3
4. Based on your assumption, pick up a market rate of return % from Exhibit 3
5. Calculate WACC

Depending on the assumptions it could be any where from 15 to 30 or even more!

Supply

(Content: Prof. Vishwa Ballabh)

Any firms objective is to maximize profit and therefore they offer to sell more when the price of good rises, when input prices fall or when technology improves. MC curve above the minimum of AVC in the short run and above the minimum point of AC in the long run is supply curve of the firm. Because firm equates P = MC for the profit maximization. The market supply is a horizontal summation of supplies of the firm.

Elasticity of Supply

Price Elasticity of Supply is a measure of how much the quantity supplied of a good responds to a change in the price of that good. It is computed as (Percentage Change in Quantity Supplied / Percentage Change in Price). The price elasticity of supply determines whether the supply curve is steep or flat. Note that all percentage changes are calculated using the midpoint method.

Since firms often have a maximum capacity for production, the elasticity of supply may be very high at low levels of quantity supplied and very low at high levels of quantity supplied.