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    This document evaluates the performance of 5 procurement managers at a soybean extraction plant. Manager 2 performed best by procuring 11,05,50,000 kg of soybean at an average unit cost of Rs. 4422 per metric tonne, the lowest among managers. Manager 2 was ranked first. Though Manager 1 procured the highest quantity of soybeans, the average unit cost of Rs. 6900 was the highest, so Manager 1 was ranked third. The average procurement price for the company was Rs. 5536 per metric tonne, which is below the target of Rs. 6000, showing a profit. The document recommends a management information system where field operators report to branch managers, who report to the head office, to

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    This document evaluates the performance of 5 procurement managers at a soybean extraction plant. Manager 2 performed best by procuring 11,05,50,000 kg of soybean at an average unit cost of Rs. 4422 per metric tonne, the lowest among managers. Manager 2 was ranked first. Though Manager 1 procured the highest quantity of soybeans, the average unit cost of Rs. 6900 was the highest, so Manager 1 was ranked third. The average procurement price for the company was Rs. 5536 per metric tonne, which is below the target of Rs. 6000, showing a profit. The document recommends a management information system where field operators report to branch managers, who report to the head office, to

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views9 pages

    Types of Management Information and Control Systems

    Uploaded by

    pallaviojha09
    This document evaluates the performance of 5 procurement managers at a soybean extraction plant. Manager 2 performed best by procuring 11,05,50,000 kg of soybean at an average unit cost of Rs. 4422 per metric tonne, the lowest among managers. Manager 2 was ranked first. Though Manager 1 procured the highest quantity of soybeans, the average unit cost of Rs. 6900 was the highest, so Manager 1 was ranked third. The average procurement price for the company was Rs. 5536 per metric tonne, which is below the target of Rs. 6000, showing a profit. The document recommends a management information system where field operators report to branch managers, who report to the head office, to

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    PERFORMANCE EVALUATION OF

    PROCUREMENT MANAGERS

    By Group No-7
    Introduction
    Name of the firm: Sri Hari Soyabean Solvent
    Extraction Plant
    Plant Capacity = 300 mt/day
    Annual Capacity 300*365=109500
    Procurement of soybean is done by 5 managers
     Target for each manager = 25000 mt/year.
    Soybean prices varied from Rs.3500 to Rs7500.
     Average procurement price should not be more
    than Rs 6000 /-mt.
    SR. NO MANAGER1 MANAGER2 MANAGER3 MANAGER4 MANAGER5

    1 12500*7000= 3000*3500= 3000*4000= 5000*6000= 5000*3500=


    8,75,00000 1,05,00000 1,20,00000 3,00,00000 1,75,00000

    2 12500*6800= 4000*4200= 8000*6000= 4000*5500= 4000*3800=


    8,50,00000 1,68,00000 4,80,00000 2,20,00000 1,52,00000
    3 2500*5000= 2000*5000= 4000*6000= 3000*3600=
    1,25,00000 1,00,00000 2,40,00000 1,08,00000
    4 5000*4250= 7000*6500= 5000*7000=
    2,12,50000 4,55,00000 3,50,00000
    5 2000*4250= 2000*5000= 3000*6500=
    85,00000 1,00,00000 1,95,00000
    6 3500*4000= 3000*4500= 2000*6000=
    1,40,00000 1,35,00000 1,20,00000
    7 3000*5000= 2000*6000=
    1,50,00000 1,20,00000
    8 2000*6000=
    1,20,00000
    Total 1,72,500000 11,05,50,000 13,90,00000 1,54,500000 4,35,00000
    Expenditure
    Unit Cost 6900 4422 5560 6180 3625
    PERFORMANCE EVALUATION
    D E G R E E OF E F F I C I E N C Y
    E
    F
    F
    E
    C
    T
    I Performance
    V
    E
    N
    E
    S
    S

    Low-Low
    High
    Low-
    Ranking of Managers
    Manager Category Rank

    Manager 1 HL 3

    Manager 2 HH 1

    Manager 3 HH 2

    Manager 4 HL 4

    Manager 5 LH 5
    PROFIT ANALYSIS

     Per unit cost= Total cost of procurement/ total


    quantity
    procured.
    = 620050000/ 112000
    = 5536 Rs/mt

     The average procurement price should not go


    beyond Rs 6000/ - mt. The company is incurring
    profit.
    MANAGEMENT INFORMATION SYSTEM
    Branch Manager
    1. Field Operator
    Head Office

    2. Branch Manager Head Office

    Branch Manager
    3. Regional Godown
    Head office

    Branch Manager
    4. Plant/Central Godown
    Head Office
    Recommendation

    Branch Manager
    Field Operator
    Head Office
    Reasons:
    a. Direct contact to the field through field operator.
    b.Better source of information regarding availability and market price
    fluctuation.
    c.Able to provide timely advice to field staff .
    d.Motivation of staff and building long term relationship with
    vendors.
    Thank You!!!

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