Problems in UAT execution in ERP Systems

PFA the user/ training manual for Inventory module from KPMG. Note that, this manual is the updated version as on the 16th June, 2013 and is applicable for the Inventory users only. Please revert back to KPMG consultants in case of any observation.

KPMG consultants are suggesting to start the costing UAT in parallel with the existing ones. Shall we start or do you have some other views? Please let us know. 

Please find the ingredient requirements in the attached file that are needed to do OPM UAT. Please avail these ingredients in the inventory.

It would be appreciated if you kindly send me the latest product standard cost breakup-2013 for international institutional business.

The attached file is the updated OPM general data master. Please use this file for your reference.

I tried to solve the rating problems but for the lack of clear description of the ingredients I failed to complete for YELLOWs. I can not trace whether these are Plr, Carton, CBC, Slb etc. Mere Oracle codes are not sufficient.

Thank you so much, actually the yellow marked items are BP products. Sorry I forgot to mention in my mail, we don't need cost for them. Thanks for the effort.

PFA the standard cost for all the ingredients. Please note there is no cost for the items marked in yellow as those are BP items.

What is an agreement to sell?

Where under a contract of sale the transfer of property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called ‘an agreement to sell’ [Sec. 4(3)]. It is an executory contract and refers to a conditional sale.

Illustration

(a) On 1 January, A agrees with B that he will sell B his scooter on 15 January for a sum of Rs. 3,000. It is an agreement to sell, since A agrees to transfer the ownership of the scooter to B at a future time.

(b) A agrees to purchase B’s car for Rs 5,000 provided B stands surety for him with C. It is an agreement to sell for B. It becomes a sale when the condition is fulfilled by B.

(c) B agrees to buy A’s car for Rs. 30,000 and pay for it, if his solicitor approves. It is an agreement to sell for A and an agreement to buy for B.

(d) A buys some furniture for Rs. 2,000 and agrees to pay for that in two monthly installments, the ownership to pass to him on the payment of second installment. There is an agreement to sell for the furniture dealer.

‘An agreement to sell’ becomes a ‘sale’ when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred [Sec. 4(4)].
7. No formalities to be observed: A contract of sales of goods can be made by mere offer and acceptance. Neither payment nor delivery is necessary at time of making the contract of sale. It can be made either orally or in writing or partly orally or partly in writing or may be even implied from the contact of the parties.

Condition in a sale by sample and description

Condition in a sale by sample:

The implied conditions under the contract for sale by sample are · The bulk of goods should correspond with sample quality · Buyer shall have reasonable opportunity to compare the sample

· That the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample In other words, there should not be any latent defect in the goods. If the defect is patent one, that is, easily discoverable by the exercise of ordinary care, and the buyer takes delivery after inspection, there is no breach of implied condition and the buyer has no remedy.

Condition in a sale by sample as well as by description: The implied condition is that the bulk of goods shall correspond, both with the sample and with description. If it corresponds with only sample and not with description, or vice versa, the buyer is entitled to reject the goods. It must correspond with both.

Example

(b) N agreed to sell G some oil described as ‘foreign refined rape oil,’ warranted only equal to sample. The oil supplied, though corresponded with the sample, was adulterated with hemp oil. Held that since the oil supplied was not in accordance with the description the buyer was entitled to reject the same ( Nichol vs godts).

Condition as to fitness or quality: Usually in a contract of sale of goods there is no implied condition or warranty as to quality or fitness for any particular propose of goods supplied ; the rule being ‘Caveat Emptor’ that is, let the buyer beware. But an implied condition is deemed to exist on the part of the seller that the goods supplied shall be reasonably fit for the purpose for which the buyer wants them, if the following conditions are satisfied:

The buyer, expressly or impliedly, should make known to the seller the particular purpose for which the goods are required; and 

 

The buyer should rely on the seller’s skill or judgment and The goods sold must be of a description which the seller deals in the ordinary course of his business, whether he be the manufacturer or not.

Winding up subject to the supervision of court

Winding up subject to the supervision of court

When a company has by special or ordinary resolution resolved wind up voluntarily, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision the Court and with such liberty for creditors, contributories or others to apply to the Court and generally on such terms and conditions, as the Court thinks just.

The application for a creditor, contributory or the voluntary liquidator may make such intervention of the Court, when there are irregularities or frauds in the voluntary winding up.

The effect of such an order is: -

1. The liquidator may exercise his powers for liquidation subject to terms and conditions imposed by the Court.

2. The Court obtains jurisdiction over suits and legal proceedings as in case of compulsory winding up by the Court.


3. The supervision order also confers the power on the Court to make calls or to enforce calls made by the liquidators and to exercise all other powers which it would have in case of compulsory winding up by the court.

4. The supervision order when passed, acts as a stay of actions and other proceedings against the company

5. When an order has been made for winding up subject to supervision of Court and an order is afterwards made for winding up by the Court up, the Court has power to appoint any person as either provisional or permanent liquidators, in addition to, and subject to the control of the Official Liquidator. The Company cannot be dissolved except by order of dissolution by the Court

How cost leadership impact organizational strategy

An organization operating in a competitive market structure may choose to avoid competition through differentiation or cost leadership.A company choosing a differentiation strategy distinguishes its product or service from that of competitors by adding enough value (including quality and/or features) that customers are willing to pay a higher price. Differentiation is often related to the product or service, distribution system, or advertising.

Competition may also be avoided by establishing a position of cost leadership, that is, by becoming the low-cost producer/provider and, thus, being able to charge low prices that emphasize cost efficiencies. In this strategy, competitors cannot compete on price and must differentiate their products/services from the cost leader.
 

In today’s business environment, maintaining a competitive advantage by avoiding competition can be difficult. Within a short time, competitors are generally able to duplicate the factors that originally provided the competitive advantage. For many companies, the future key to success may be to confront competition by identifying and exploiting temporary opportunities for advantage. In a confrontation strategy, an organization tries to differentiate its products/services by introducing new features or tries to develop a price leadership position by dropping prices even though competitors will rapidly bring out equivalent products and match price changes.

5 steps to follow under graphical solution to a linear programming

steps to be followed under graphical solution to a linear programming problem.

Step1. Determine the region that satisfies the set of given inequalities.

Step 2. Ensure that the region is bounded*. If the region is not bounded, either there are additional hidden conditions which can be used to bound the region or there is no solution to the problem.

Step 3. Construct the matrix E of the extreme points, and the column vector C of the objective function.

Step 4. Find the matrix product EC. For maximization, determine the row in EC where the largest element appears; while for minimization, determine the row in EC where the smallest element appears.

Step 5. The objective function is optimized corresponding to the same row elements of the extreme point matrix E.

If the slope of the objective function be same as that of one side of feasible region, there are multiple solutions to the problem. However, the optimized value of the objective function remains the same.

Features of learning curve theory in manufacturing environment?

As the production quantity of a given item is doubled, the cost of the item decreases at a fixed rate. This phenomenon is the basic premise on which the theory of learning curve has been formulated. As the quantity produced doubles, the absolute amount of cost increase will be successively smaller but the rate of decrease will remain fixed. It occurs due to the following distinctive features of manufacturing environment:

(i) Better tooling methods are developed and used.

(ii) More productive equipments are designed and used to make the product.

(iii) Design bugs are detected and corrected.

(iv) Engineering changes decrease over time.

(v) Earlier teething problems are overcome.

(vi) Rejections and rework tend to diminish over time.

In the initial stage of a new product or a new process, the learning effect pattern is so regular that the rate of decline established at the outset can be used to predict labour cost well in advance. The effect of experience on cost is summarized in the learning curve ratio or improvement ratio.

What do you mean by a dummy activity? Why is it used in networking?

Dummty activity is a hypothetical activity which consumes no resource or time. It is represented by dotted lines and is inserted in the network to clarify an activity pattern under the following situations.
(i) To make activities with common starting and finishing events distinguishable.
(ii) To identify and maintain the proper precedence relationship between activities that are not connected by events.
(iii) To bring all “loose ends” to a single initial and single terminal event. e.g.

Dummty activity

Dummy (2) – (3) is used to convey that can start only after events numbered (2) and (3) are over:

How to use the Monte Carlo Simulation method in inventory control?

The Monte Carlo Simulation: It is the earliest mathematical Model of real situations in inventory control:

Steps involved in carrying out Monte Carlo simulation are:

• Define the problem and select the measure of effectiveness of the problem thatmight be inventory shortages per period.

• Identify the variables which influence the measure of effectiveness significantly forexample, number of units in inventory.

• Determine the proper cumulative probability distribution of each variable selectedwith the probability on vertical axis and the values of variables on horizontal axis.

• Get a set of random numbers.

• Consider each random number as a decimal value of the cumulative probability distribution with the decimal enter the cumulative distribution plot from the vertical axis. Project this point horizontally, until it intersects cumulative probability distribution curve. Then project the point of intersection down into the vertical axis.

• Then record the value generated into the formula derived from the chosen measure of effectiveness. Solve and record the value. This value is the measure of effectiveness for that simulated value. Repeat above steps until sample is large enough for the satisfaction of the decision maker.

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