CASE STUDIES ON MANAGERIAL COMPUTING

GROUP - 7

Deepak Parvat (20PGDM05A019)

PGDM (E) 6th Batch, NSB Noida

Supplier S1 S2 S3 S4 S5 S6 S7 S8
Product
1. Bearing 6205 195 165 175 160 210 165 180 230
2. Bearing 6206 425 435 453 459 510 563 455 432
3. Bearing 6207 610 655 549 547 600 605 625 670
4. Bearing 6208 720 674 700 705 755 670 755 685
5. Bearing 6209 860 790 815 780 845 880 795 850
6. Bearing 6210 880 887 845 885 925 945 910 865
7. Bearing 6211 880 867 890 925 912 905 970 900
8. Bearing 6212 990 899 1050 900 955 970 945 970
9. Bearing 6213 1170 1085 1155 1195 1225 1080 1095 1135
10. Bearing 6214 2900 3400 2990 3070 3095 3300 2955 3110
Fixed Charges 450 370 650 545 755 275 825 525
associated with
each supplier

After receiving the offer Mr. Piyush has to select the product in such a way that it met the
CHP bearing demand with minimum expense to the company. All products to be supplied by
the selected vendor based on lowest bidder for each item.
PROBLEM 2:
MTPC Kalcher Taniha is a 3000 MW coal-based power generating station situated in Odisha.
Control and Instrumentation (C&I) department of NTPC Taniha looks after the various
control loops, measurement and monitoring systems of various process variables present in
the plant. Within the department, there are 3 sub-groups – DCS, Boiler and TG for
maintenance of all the systems. An Annual Maintenance Contract (AMC) is awarded to a
certain party on an annual basis, and serves commonly to all the 3 sub-groups of the
department. Since each sub-group has different Engineer-in charge (EIC), the quantities
have to be entered separately for each sub-group.
Usually at the end of the month, the party submits a Bill of Quantity (BOQ) containing all the
various jobs and the quantity of work done for that particular month for different sub-
groups. The price of each unit of a particular job done is equal for all 3 sub-groups, while the
quantity can be different. Also, these quantities submitted by the party has to be entered in
all the Preventive Maintenance (PM) work-orders undertaken by that particular sub-group
(DCS, Boiler or TG) for the purpose of payment to the party.
Usually, the process of entering the assignment of these jobs to the respective PM work-
orders is done manually in the ERP systems available, and takes around 3-4 hrs., assuming
an average of 125 jobs per month, and around 10 work-orders per month for each sub-
group. To shorten the time, we have used the Solver Tool to do the same. This calculation is
based on the assumption that the quantity of the actual job done may be entered in any
work-order, as there is only a single party.

SOLUTION:
For each sub-group, we have created 3 data tables based on the criteria that there should
be at least 1 quantity of any job being done for that particular work-order. For every order
of each sub-group, the objective function is made to minimize the absolute difference
between the planned cost and actual cost. Planned cost is calculated as the average cost of
quantities per work-order.
First, using criteria for segregating work-orders and jobs of different sub-groups, we have
used the Advanced Filter for all the 3 sub-groups. A total of 6 excel sheets have been made
from the master data for dividing work-orders in to 3 sub-groups (names starting with PM),
and also the jobs into 3 sub-groups(names starting with BOQ). The variable cells in the
sheets specified as BOQ are labelled in Orange color, while the objective function variable is
labelled in blue. All the variable cells need to be integers and are to be less than the actual
assigned quantities. The last work-order is used as a temporary array for updating the
available quantities and is left as it is, after the solver is applied on the penultimate work-
order.
After the quantities are assigned, the final Actual cost is calculated and is entered in Yellow.
This and the calculated costs are entered in the PM sheets and can be uploaded along with
the quantities in the SAP for faster calculation and entry of the quantities.
(All the corresponding entries are in the excel file named Problem-2)

PROBLEM 3:
The problem is from Material Management area. The storekeepers of Central Stores Wing, of
Agartala based Thermal Power Plant were facing issues in respect of some specific requirements
raised by the Internal Auditors.
Requirement of Auditors / Problem Area:
i. To provide Materials with latest Goods Receipt Number Date (GRN date) for any Main Group
(as desired by auditor), from whole the list of materials.
ii. To provide Materials with latest Goods Receipt Number Date (GRN date) for any specific
Main Group (auditor desired) and in between any specific date period (auditor desired,
specifically w.e.f. 01.01.2003 to 31.12.2005) from whole the list of materials.
iii. For the material extracted from each of the above cases, the user need to provide its Average
Weighted Rate, Balance Quantity, Main group wise Sum of Stock Value, Material description
etc. based on case to case requirement of the auditor.

The Stores Wing maintains the material details in following related three data sets, namely:
stock_master table, stores_txn_linl_hdr table and item_master table respectively. All the materials in
the Central Store have been clubbed under various groups called Main Groups based upon
predefined classification / criteria as per the Stores Manual.
About Metadata( more details are present in corresponding excel file ).
stock_master table : maintains master data of materials (stock value, qty, main group etc).
stores_txn_link_hdr data set: gives issue/receipt status of each materials (GRN), MIN ( Material
Issue Note)
item_master table: mentions about the material wise item description.
The Whole problem has been divided into various sub problems( as per requirement of
Auditors/Stores personnel).
Q1. Select Material Code which has the latest GRN Date and having Main Group as entered by the
user.?
Q2 & Q3. Display the average wt rate, balance quantity, provided the same are more than 100 of the
material code with latest GRN date/Time stamp for the main group as entered by the user.?
Q4. Display the Material Description, of said material code extracted previously?
Q5. Find the number of Material Codes having same main group as entered by the user at E41 cell?.
Q6. Find the material code which is having latest GRN Time stamp with said time stamp to be in
between 01.01.2003 to 31.12.2005 range and having main group entered by user above at E41 cell?
Q7. Display the stock value of material code extracted previously in Q6?
Q8.Display the stock value of material code extracted previously at Q6?
Q9.Calculate the Sum of all stock values of all material codes whose main group is the one as quoted
by the user at E41.?
Detailed Solution can be seen in corresponding excel file, however the strategy is discussed
as under.
Solution strategy for Q(1-5): Using String Comparison function to compare the material codes with
corresponding user defined Main group, then ANDing it with GRN type under a IF condition and then
taking its MAX over whole range of materials, gave the time stamp of latest GRN. Then using MAXIFS
function calculated over material range with the criteria of Maximum Time Stamp (deduced earlier)
gave Material code with latest GRN.
Solution strategy for Q(6-8): Using String Comparison function to compare the material codes with
corresponding user defined Main group, then ANDing it with GRN type and Date Range Checking
condition, under an IF condition and then taking its MAX over whole range of materials, gave the time
stamp of latest GRN. Then using MAXIFS function calculated over material range with the criteria of
Maximum Time Stamp9 deduced earlier) gave Material code with latest GRN over specific date
range.
Solution strategy for Q(9): Using the SUMIF function calculated over the Main Group range with
criteria of user defined main group, and then summing it over Stock Value column gave total of Stock
value of ant user defined specific main group.
Note1: The first two characters of Material code signify the main group which is of two digits eg. 33,
31, 90 etc.
Note2: Time Stamp column is used to ascertain latest GRN date & time of two materials with same
code entering Stores on same date but with different timings / time stamps.