Assignment: Operations and Supply chain management (Finance)

 Write the assignment in word doc (if handwritten is required, you are allowed to write in A4 sheet)
 Submit it to your CR on or before Friday 11.59pm by email and CR will mail to Ritu Ma’am (rituparna.devi@pibm.in)
till Saturday morning 9am
 Rename your file as “Name_UID_Section” and mention your name and section and UID in the assignment file
 Do not copy paste (do not be the source nor the one copying – you will get 0 mark)
 Assignment carry 10 marks

Following are the activities followed presently for processing the vendor bill in an organization. The vendors are very unhappy
due to the delay in receiving payment, as a result, they are not willing to extend the volume discount. The present credit term is
two weeks from the date of receipt of material.

Serial Description of the activity Time in Work force

No. days deployed
1 Raw material arrival at the factory gate along with challan and 1
invoice .
2 Assign dock gate to truck for unloading the material .5 3
3 Wait for Material handling equipment and labour 1
4 Unload material 1 7
5 Move to put away bay 3 7
6 Wait for Material inspection 5
7 Material inspection 3 4
8 Reject defective material and move it to rejection bay 1 1
9 prepare rejection note and inform vendor .5 1
10 Inform the vendor 2 1
11 Preparation of Goods receipt note. 1 2
12 Assign transport for movement of material to sub stores 2 2
13 Inform sub stores about the arrival of material 1 1
14 Forward documents like inspection note , GRN and invoice to 2 1
purchase department
15 Inward the document 1 1
16 verify it with purchase order terms and price 10 5
17 Approve the document 2 1
18 Forward it to finance and account department 2 1
19 Receive the document and log . 1 5
20 Verify the invoice and terms of payment 5 5
21 Verify the advance paid 1 3
22 Raise debit note against rejected goods value 1 2
23 Send for approval of the balance payment 3 2
24 Check the fund position and schedule for payment 7 2
25 Raise payment voucher and inform the bank for release 2 4
26 Inform the vendor about the payment release 1 2

1. You have been asked to design a process flow chart for the current process and identify the potential areas of
bottleneck in the process. Design a new process flow chart by eliminating the bottleneck to improve the process
efficiency .
2. If the cost per activity per day is Rs 50 , how much saving and manpower reduction will be achieved by reducing the
days by 50%.
3. What are the major bottleneck in the current process which should be eliminated to meet the credit policy