Operations and Project Management and Control

ICWA Final : Stage III :: Paper 13: [One paper: Three hours - 100 marks]

Contents . . .

Section I: Operations Management [50 Marks]

  1. Technology of production techniques — meaning and implication of technology, different concepts like relevant technology or appropriate technology, high-tech versus low-tech, capital intensive versus labour – intensive, batch process. Technology forecasting, shape of things to come in 21st century.
    Basic ideas regarding manufacturing techniques including machine tools process technology, productive facilities, productive utilities and manufacturing policies, some broad ideas about the technological aspects involved in the industries covered under the cost audit. World class manufacturers flexible manufacturing systems, JIT, MRPI, MRPII and advanced systems to come.
    Production planning, scheduling and monitoring system — the concept of integrated production planning system, linkage between production planning and sales forecasting, procurement planning and finished goods inventory policy. Actual scheduling of jobs optimization concept in terms of productive facilities utilisation and cost minimization through start up change over, etc. Production monitoring system and Management Information System for this purpose, regular review of production planning and monitoring, Decision Support System (DSS).

  2. Production Economics — analysis of problems involving location, multi shifts, product mix, material handling facilities, utilisation of multipurpose plants, utilisationof preventive maintenance, utilisation of capacity rectification of unbalanced capacity, off loading of products, stages of production, product plant, process planning, scheduled production stages, controlling quality level, controlling of output costs, products usage and its obsolescence, technological usage and its obsolescence, control of output costs on the basis of its cost of factors of production and utilisation of capacities, sealing of capacity with the help of rationalization, modernization, revamping and renovation. Expansion and growth.

  3. Productivity — meaning and significance of productivity, productivity vis-à-vis absolute production, measurement of productivity – both overall and separately for each factor like man, machine, materials. Productivity and cost productivity, improvement techniques, time study, work sampling and other techniques for productivity monitoring, productivity bargaining, tools and techniques, productivity and work methods as well as quality of work life, job evaluation and merit rating and use of these in productivity of human resources. Cost reduction and value analysis in the context of productivity. Learning curve concepts in the context of productivity.
    Cost implications of multi-shift operations, plant shutdown, plant expansion, retracting of detectives, automation in productive system, utilities management, replacement of machinery and financial impact of technology up gradation and absorption.

Section II: Project Management [50 Marks]

  1. Project identification and formulation — different types of needs leading to different types of projects under BMRED (Balancing, Modernisation, Replacement, Expansion and Diversification) considerations involved in decision under each of these types. Macro parameters in project selection, different considerations for project under private, public and joint sectors. Project formulation – preparation of project profile, project report and detailed project report. Broad criteria for pre-investment decisions.
    Project appraisal — different ypes of appraisal – Technical, economic, organisational and managerial, commercial and financial – financial techniques or project appraisal and feasibility, discounted cash flow and non-discounted cash flow methods, social cost benefit analysis and economic rate of return. Non-financial justification of projects.
    Project financing — pattern of financing, sources of finance, impact of taxation, public loans, small savings surplus of public enterprises, deficit financing, foreign aid. Public sector project financing. Role of tax planning in project financing.

  2. Project cost systems — project cost accounting and monitoring, appointment of contractor and its problems, labour and equipment costs, accounting, codification, development of cost data, labour time, reporting, direct measurement of work quantities, labour cost analysis, equipment accounting, activity based cost accounting, production rates for estimates, control of cost, computer application to cost control.

  3. Project administration — progress payments, expenditure planning, project scheduling and network planning, use of Critical Path Method (CPM), schedule of payments and physical progress, time –cost trade off, cash flow preparing, cash forecast and monitoring of fund and other resources, control of groups of projects under one administration and associated problems in sharing resources. Concepts and sues of Project Evaluation and review Techniques (PERT), cost as a function of time, project evaluation and reviews techniques/cost mechanisms. Accountant’s role in project evaluation and review techniques / cost budgeting. Determination of least cost duration. Post project evaluation.

Recommended Books

  • Macmillan
    1. Production & Operations Management
      • Alan Muhlemann and Others
    2. Project Management Handbook
      • Gopakrishnan & Ramamoorthy
  • Prentice Hall
    1. Production & Operation Management
      • Adam & Elbert
  • Tata Mc Graw Hill
    1. Project Preparation, Appraisal and Implementation
      • Prasanna Chandra
    2. Project Management
      • S. Choudhury
    3. Project Planning Analysis : selection, implementation & Review
      • Prasanna Chandra
    4. Manual of Industrial Project Analysis in Developing Countries
      • I.D.B.I
    5. Guide to practical Project Apprasial
      • OECD
    6. Manual for preparation of Industrial Feasibility Studies
      • OECD
    7. Manual for preparation of Feasibility Report
      • Planning Commission
  • Sultan Chand
    1. Industrial Engineering & Management
      • O.P. Khanna

Other Relevant Books

Author Credit : Team Future Accountant

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