DMDS-245

1. Ans:- Flow chart for MPC System:-

2. Ans:- Precuations that should taken by companies are as follow:-

1. Perceived Impropriety. Prevent the intent and appearance of

unethical or compromising conduct in relationships, actions, and
communications.
2. Conflicts of Interest. Ensure that any personal, business, or other
activity does not conflict with the lawful interests of your employer.
3. Issues of Influence. Avoid behaviors or actions that may negatively
influence, or appear to influence, supply management decisions.
4. Responsibilities to Your Employer. Uphold fiduciary and other
responsibilities using reasonable care and granted authority to
deliver value to your employer.
5. Supplier and Customer Relationships. Promote positive supplier and
customer relationships.
6. Sustainability and Social Responsibility. Champion social
responsibility and sustainability practices in supply management.
7. Confidential and Proprietary information. Protect confidential and
proprietary information.
8. Reciprocity. Avoid improper reciprocal agreements.
9. Applicable Laws, Regulations, and Trade Agreements. Know and
obey the letter and spirit of laws, regulations, and trade agreements
applicable to supply management.
10. Professional Competence. Develop skills, expand knowledge,
and conduct business that demonstrates competence and promotes
the supply management profession.

3. Ans:- There are three methods which can be used for good that are deterioration and
obsolescence.
1. Comparison Approach:- Application of the Sales Comparison Approach requires
that an effort is made to base an investment decision on the sale of identical assets
exchanged in the marketplace. In the marine and offshore industries, it is rare to
find sales of units identical to the subject asset/property. In such a scenario, the
appraiser will obtain details from sales transactions of assets that are similar but not
identical, and the selling prices of these comparable assets are then adjusted to
account for the characteristics of the subject property under appraisal.
2. Income Approach:- The theory that underlies the Income Approach is that an
investment decision is based on the present value of the future benefits to be earned
by the investment, and the value of a particular asset is represented by the present
value of its expected future benefits. Two techniques are generally used to value
machinery and equipment by this approach. One is the Direct Capitalization
Approach which measures value by dividing a projected income stream, in constant
dollars, by a capitalization rate. The second method is the Discounted Cash Flow
(DCF) Approach. The DCF Approach is a method of analysis in which the quantity,
variability, timing, duration of periodic income and residual value are projected and
discounted to a present value using a discount rate.
3. Cost Approach:- The Cost Approach considers the current replacement cost as new
of the subject property being appraised and then deducts for the loss in value caused
by all forms of depreciation, including physical deterioration, functional
obsolescence and economic obsolescence. The logic of this approach is the
principle of substitution; a prudent buyer will not pay more for a property than the
cost of acquiring a substitute property of an equivalent utility. A major challenge in
the application of the Cost Approach for marine and offshore assets is quantifying
physical, technological and economic depreciation. Changes in market condition,
asset's condition, technological advancements and changing regulations all have a
potential impact on this valuation method and will need to be quantified for the
development of replacement cost.
4 Ans:- The need for materials management was first felt in manufacturing undertakings.
The servicing organizations also started feeling the need for this control. And now even non-

trading organizations like hospitals, universities etc. have realized the importance of materials

management. Every organization uses a number of materials. It is necessary that these

materials are properly purchased, stored and used.

Any avoidable amount spent on materials or any loss due to wastage of materials increases

the cost of production. The object of materials management is to attack materials cost on all

fronts and to optimize the overall end results. Materials management connotes controlling the

kind, amount , location and turning of the various commodities used in and produced by the

industrial enterprises. It is the control of materials in such a manner that it ensures maximum

return on working capital.

5 Ans:- Approved vendors list is just one well-optimized document connected through a
shared data management system, feeding supplier information to your procurement,
accounting, marketing, and other business units. With help from automation and artificial
intelligence, such a list can be used to auto-populate a purchase order, verify information on
an invoice against shipping documents and existing PO, or provide pricing and other
information for analysis and comparison with other vendors to eliminate redundancies, reveal
opportunities for new markets, products, and contracts, and create savings as well as value in
supporting overall organizational goals.

The age of pen and paper, manual processes is dead, if not quite yet buried. In the
interconnected global marketplace, collecting and recording vendor data is difficult enough
with manual processes. Trying to monitor your vendor contact, performance, and contract
data for accuracy and completeness not only costs you plenty in wasted time and human
error, but potentially opens your organization up to needless risk.

6 Ans:- List of important documents are:-

 1. Air Waybill:- Air Waybills are issued for exports shipped by air, and once an
outbound shipment arrives at the airport it is immediately processed by a customs
broker or assignee for customs clearance and final delivery.

2. Bill of Lading:- This is a contract between the owner of the goods and the carrier.
"The terms and types of bills of lading differ with the mode of transportation," says
Fong. "A non-negotiable bill of lading specifies a consignee to receive the goods, and
does not represent ownership of the goods. The shipment must go to and from the
parties listed on the bill of lading, and cannot be transferred or delivered to a recipient
not named on the document."

3. Certificate of Conformity:- A certificate of conformity, mandating that products be

analyzed and tested by an authorized third party, is required by some countries—
usually for certain kinds of manufactured goods. It is the exporter's responsibility to
ensure that its products are tested in accordance with the requirements of the country
the products are being shipped to. "A freight forwarder will confirm that the
documents are compliant with the shipment's certificate of origin, but will not
administer the certificate," says Fong.

4. Certificate of Origin
Because the applicable rate of duty is often connected to where a product is shipped from, the
customs authorities of most countries require the presentation of a certificate of origin to
ensure that the shipment complies with any free trade agreements or applicable regulations or
duties. Certificates of origin for products made in the United States can be obtained from a
number of third party organizations, such as the U.S. Chamber of Commerce.

5. Commercial Invoice
A commercial invoice is a bill for the goods from the seller to the buyer. This document
includes all the important details about the seller and the shipment so that the receiving party
can readily check that the shipment is intact upon arrival.

"Commercial invoices are important in helping the seller get shipments cleared quickly and
efficiently," says Fong. "As the party filing the declaration on behalf of the exporter, we need
to make sure the shipper's letter of instructions matches the information reflected on the
commercial invoice."

6. Dock/Warehouse Receipt
This receipt is used to transfer accountability when the domestic carrier transfers the export
shipment to the shipping line at the port of embarkation. This is an important document, notes
Fong, and helps to ensure that the cargo is labeled correctly; that physical characteristics,
such as dimensions and weight are declared accurately; that any dangerous goods are
properly labeled and packaged; and that the shipping pallets used meet the standards defined
in the certificate of conformity.
 7. Export License
An export license is a government document that authorizes the export of specific items in
specific quantities to a particular destination. This document may be required for most or all
exports to some countries. For other countries, it may be required only under special
circumstances.

Shippers are required to provide this information to their freight forwarder. "An exporter may
self-classify an item based on technical knowledge or they can request a determination from
the U.S. Bureau of Industry and Security (BIS)," says Sherrod. "Software, munitions, aircraft
parts and guidance systems are examples of exports that may require a license."

8. Export Packing List

An export packing list is considerably more detailed and informative than a standard
domestic packing list. It itemizes the material in each package and indicates the type of
package, such as a box, crate, drum or carton.

All freight forwarders require a digital copy of both the exporter's commercial invoice and
export packing list in order to clear shipments through U.S. Customs. "This document is
important," says Fong, "because it can be used as supporting material in the event of a
disagreement between the exporter and the carrier, and is a required document in order to file
an insurance claim. It is also a way for customs authorities in the receiving country to assess
security and compliance of the shipment."

9. Inspection Certification
Inspection certification is required by some purchasers and countries to attest to the
specifications of the goods shipped. The inspection is usually performed by a third party,
often an independent testing organization.

10. Insurance Certificate

"An insurance certificate is one of the most important documents for a U.S. exporter to have
because they inherently carry the most risk," says Fong. "Having a certificate of insurance
assures the consignee that loss or damage to cargo during the shipment process will be
covered."

7 Ans:- Material Handling is concerned with motion, time, quantity and space. Material
Handling Institute describes this as follows:

1. Material Handling is MOTION. Parts, material and finished products must be moved
from store to location. Material Handling is concerned with moving them in the most
efficient manner.
2. Material Handling is TIME. Each step in any manufacturing process requires that it
supplies are on hand the moment it needs them. Material Handling must assure that no
production process or customer need will be hampered by moving material arranged of
location too late or too early.
3. Material Handling is QUANTITY. Rate of demand varies between steps in the
manufacturing process. Material Handling has the responsibility of being sure that each
location continually receives the correct quantity of parts.
4. Material Handling is SPACE. Storage space, both active and dormant, is a major
consideration in any building as space costs money. Space requirement are greatly influenced
by the Material Handling flow pattern.

8. Ans:- Total Quality management is defined as a continuous effort by the management as well as
employees of a particular organization to ensure long term customer loyalty and customer
satisfaction. Remember, one happy and satisfied customer brings ten new customers along with him
whereas one disappointed individual will spread bad word of mouth and spoil several of your existing
as well as potential customers.

Total Quality management can be divided into four categories:

 Plan
 Do
 Check
 Act
 Planning Phase
 Planning is the most crucial phase of total quality management. In this phase employees have
to come up with their problems and queries which need to be addressed. They need to come
up with the various challenges they face in their day to day operations and also analyze the
problem’s root cause. Employees are required to do necessary research and collect relevant
data which would help them find solutions to all the problems.
 Doing Phase
 In the doing phase, employees develop a solution for the problems defined in planning phase.
Strategies are devised and implemented to overcome the challenges faced by employees.
The effectiveness of solutions and strategies is also measured in this stage.
 Checking Phase
 Checking phase is the stage where people actually do a comparison analysis of before and
after data to confirm the effectiveness of the processes and measure the results.
 Acting Phase
 In this phase employees document their results and prepare themselves to address other
problems.