Essential Industrial Management Interview Preparation Guide

Download PDF

► Planning
► Organising
► Directing
► Controlling

for example bearing n0:6205
its bore(id) is 25
last two digits multiply by 5

MIS - Means by Management information systems called is MIS
Report, like whats are work is done in your place that every
thing convert or keep system wise updation to submit
management. Inventory level, labour attendance,ITR, good
receipt details and good damages,quality reports.

Inventory turnover is main metrics for Inventory control.

ITEMS NOT MOVED MORE THAN 05 YEARS ARE CALLED NON MOVING
ITEMS MOVING 03 TO 05 YEARS ARE CALLED SLOW MOVING
ITEMS MOVED WITHIN ONE YEAR IS FAST MOVING

Because we were not open our market fully to global market

1. Simply put, using the ABC Class coding for item being
manufactured and/or assembled. Your question is very broad
and hard to answer since you are asking a question that
involves to many departments. But generally speaking, when
it comes to cost, ship dates, quantities ordered, the ABC
rule is best.

2. A "Purchase Order" is a legal and binding contract
between a Manufacturer and Supplier that stipulates the item
ordered, quantity of item, ship dates, and cost of item that
the Supplier agrees to supply the Manufacturer.

A "Invoice" is what the Supplier sends to the Manufacturer
after or with the items that are described in a Purchase
Order. The Invoice contains the item description, quantity
shipped, and cost of said item and is to be paid by the
Manufacturer according to the terms agreed upon either ahead
of time or as described in the Purchase Order or as noted on
the Invoice. Generally, the terms are Net 30 days.

3. All items to be purchased have a blueprint or a listing
of what this item is made of and/or a Manufacturer part
number. If it is to be a manufactured part made from a
blueprint, the purchasing agent has the responsibility to
send out for quote (3 vendor min.) and receive from the
Vendor, a list of prices based on quantity ordered. The best
product and material come from reputable and established
companies that deal with this type of product. Larger
companies have better price since they deal with larger
volumes of raw material and better machining equipment and
more experienced personnel.

I believe each and every thing in the world is very useful
&knowledgeable. I wish to be a multi-player rather than i
am strong in one part of the game.. So that, my knowledge,
idea, could be used at every step in achieving the goal.
Even i wud be happy if i get the rotational job here.. No
matter where, i will change to the areas where i get
learning.

Logistics is a process by which we can transfer the goods
or product from one place to other or from the place from
where is originated and to the place where it’s in demand
or where it’s in need. In ancient the term logistics was
used by army because the use the transfer the armed and
soldiers from one place to other where ever they are
required. But presently we use logistics very widely b, cos
presently all the firm and company depend on logistics foe
moving their goods(raw matrial,finished good or finished
product).
The main element of logistics is
1-transportation
2-warehousing
3-inventory
4-material handling
5-transfer of information
6-packging
And we can say that this all the element of logistics is
the main work of logistics:-
1. Transportation- to send the goods from one place to
other. By any means of transportation.
Air ways, Water ways, or by Land ways.
2. Warehousing- To store the goods in a particular place.
Because whenever they are needed the producer can use those
goods. And it’s also important because the producers are
producing the goods in huge quantity and for storing them
the warehouse is very much needed.
3. Inventory- This is also one of the most important part
of work of logistics b’cos to maintain the proper records
and when ever any recorded is needed it can be produce
easily for the funder purpose .
4. Martial handling- for the uploading and unloading the
material handling is very much needed and thou the goods
are very important for the producer as well as for the
consumer also. For that the uploading and unloading of the
goods in proper ways the martial handling is very much
needed.
5. Transfer of Information- The transfer of information is
also the important work of logistics cos for smooth running
of any organization the information should be transfer
whenever they are required. And have to maintain all the
important information.
6. Packging- Packaging is one of the most important parts
of logistics as well for selling of the product. By
packaging the product can be protected by the climatic
condition as well as the product can be kept for long time.
And will look attractive for the purpose of sale.

Logistics is the process of effectively moving the goods
from the point of origin or from any supply point to the
point of consumption. The term effectively is the key in
logistics, it denotes ‘how well it meet the demand’ by
considering the factors like time, quantity, quality, cost
etc. Logistics includes various intermediate activities
like information, inventory, material handling,
transportation, warehousing and now the new era brings the
word called collaboration to frame the new terminologies
called 3PL and 4PL. 3PL is nothing but Third party
logistics, that is ‘a core logistics player executing any
logistics work outsourced by a manufacturer or others’.
Conversely, 4PL is Fourth party logistics, ‘a core
logistics player having collaboration with other players in
order to perform all the logistic works outsourced by a
manufacturer or client’. The term “any logistics work”
and “all logistics work” give the distinction between the
two.

It all started from the USA sub- prime (housing loan )
crisis.The USA banks n financial institutions went on
lending for housing construction n buying without looking
to the re paying capacity of the borrowers.As the
properties were mortgaged with them,they thought to re
possess the house in case of default n sell them in the
market as there was huge demand.The demand started
falling .There was default n re possession.The properties
could not be sold as there was no demand.The banks which
invested huge amount on properties,felt the pinch.Many of
them went bankrupt.The whole financial system of USA was in
turmoil.

Because of the financial turmoil,the financial institutions
could not provide the required loan to the industrial
sector.Want of finance forced industries to cut production
n jobs.The economy in general was affected ,due to falling
production,employment n purchasing power of the people.The
USA was in economic recession.

The USA is the richest economy of the world.Many countries
of the world,depend on it for business.As USA was under the
grips of recession ,it could not do the volume of
business,it used to do with other countries.This adversely
affected,the business of other countries of the world
including India.

USA made the huge investment ,in other countries of the
world including India.To meet its domestic demand it
started withdrawing funds from other countries ,where it
made investment.The partially complete projects with USA
assistance remain incomplete due to want of funds.

These developments adversely affected the industrial sector
of the entire world including India.The industries started
cutting production n jobs.Thus,the entire world came under
the grips of economic recession.

So,the small fire which started in USA started taking the
form of a huge fire n captured the entire world n the
result is global recession n financial turmoil.

TRIM: Trade Related Investment Measures are rules that
apply to the domestic regulations a country applies to
foreign investors, often as part of an industrial policy.
A....TRIM is/are rules, which restrict preference of
domestic firms and thereby enable international firms to
operate more easily within foreign markets.
Example: Export Prohibited items from India: Gold, animals,
natural resources (some kind of trees) etc.
TRIP: Trade Related Aspects of Intellectual Property Rights
is an agreement that sets down minimum standards for many
forms of intellectual property regulation. Specifically,
contains requirements that nations law must meet for:
copyright rights, patents; trademarks and undisclosed of
confidential information.

ABC analysis is an inventory management technique in which
the items are classified and clubbed according to their
value. The items comprising the top 5-10% of the total
value of inventory are termed as "Class A", the next 10-15%
are classified as "Class B" and the remaining as "Class C".
This management effort needed to maintain should decrease
from Class A to Class C.

Portfolio Investment represents passive holdings of
securities such as foreign stocks, bonds, or other
financial assets, none of which entails active management
or control of the securities' issuer by the investor; where
such control exists, it is known as foreign direct
investment. Generally, this means the investor holds less
than 10% of the total shares or less than the amount needed
to hold the majority vote.

Some examples of portfolio investment are:

purchase of shares in a foreign company.
purchase of bonds issued by a foreign government.
acquisition of assets in a foreign country.
Factors affecting international portfolio investment:

tax rates on interest or dividends (investors will normally
prefer countries where the tax rates are relatively low)
interest rates (money tends to flow to countries with high
interest rates)
exchange rates (foreign investors may be attracted if the
local currency is expected to strengthen)
Portfolio investment is part of the capital account on the
balance of payments statistics

The record of money payments between one country and other
countries. Balance of payments is more inclusive than
balance of trade because balance of payments comprises
foreign investment, loans, and other cash flows as well as
payments for goods and services. A country's balance of
payments has a significant effect on its currency value in
relation to other currencies. It is of particular interest
to individuals who own foreign investments or who own
domestic investments in companies dependent upon exports.

Basic elements or terms present in Export sales contract:
Contract period, Parment terms and modes(L/c, Advance etc),
Tentative quantity, Rates based on Incoterms (FOB, CIF
etc), Customs clearance party name, Dispute solving
procedure, Packing and Labelling conditions, Approx.
delivering date etc.
TNC:Transnational Company nothing but MNC.
Why MNC: To improve market share, to gain Economies of
scale, brand popularity, Govt.Incentives and to avoid
marketing outsourcing cost.

1.Unpopular brand name
2.Vast exporting rules and
procedures
3.Currency fluctuation
4.Payment modes
5.Poor logistics.
6. Huge competition from China and African
countries. U can give some example for this, logistics
expense for exporting fresh vegetables and fruits from
India to other countries is 60% higher than our competing
countries like Kenya, Pak etc. Payment modes are heavily
unsafe (Except Letter of credit and Advance). Dispute
solving is one of the other major problem. Port activities:
Our port efficiency is 70% lesse than developed.

This theory was propounded by Eli-heckscher(1879-1952) and
later refined by Swedish economist Bertil Ohlin(1899-1979)
in 1933.
Acoording to Ohlin, the differences in the factor prices
are due to the differences in the factor endowments in
different countries and the differences in production
functions for different commodities. Hence Ohlin's theory
can be called factor endowment theory.

ASSUMPTIONS OF THEORY
1.There are 2 countries or regions say X and Y, each having
a free papre currency of producing any two commodities.
2. There are 2 factors of production i.e. labour and
capital.
3. the factors of production are fully mobilewithin each
region of a country while they are rtelatively immobile in
between any two regions or two countries.
4. Competition in all markets.
5. Each factor is fully employed in each country with or
without trade.
6. There are no transportation of information costs.
7. There are no imposed tarrifs or other barriers to trade.
8. All production functions are lineally homogeneous.
9. All production functions are immune to factor intensity
reversals.
10. Both countries produce both goods with or without trade.

return po refers to the refusal of purchase order by the
purchase manager, made by the respective department in
order to accomplish uninterrupted supply of production
chain at their end.
a purchase order can be returned by the purchase manager in
the following cases:
1. cost of purchase quantity is not compatative.
2. quantity of purchased goods are too high to maintain
inventory.
3. materials to be purchased are not available within the
given period of time as indicated in po.

MRP MEANS MAX. RETAIL PRICE & MPP MEANS MAX. PURCHASES PRICE

An ethical dilemma is a situation in which there two or more
choices and either both are ethically questionable, or both
appear on different grounds to be the "more ethical" choice
than the other.

Lean is nothing but the priciples and creative ideas, hepls
to avoid the 7 types of wastes called MUDA wastes.
1. Overproduction waste: Follow JUST IN TIME
production, after receiving orders or based on good
forecasting.
2. Idle time waste: Implement kaizen and other ideas
to work continously.
3. Transportation waste: Avoid unnecessary movements.
4. Inventory waste: JUST IN TIME procurement
5. Motion waste: Good layout designing.
6. Over-processing waste: Avoid duplication works,
work dedication.
7. Reworking waste: Effective planning.

Original equipment manufacturer, when NIKE purchased
stitched cloth from Tirupur (Tamilnadu) mills for its own
branded T-Shirts, NIKE sold the T-Shirt to the end user
through its own sales team and brand name, then NIKE was
called the OEM in relation to the particular Tirupur mill.
In definition, a company that uses a product made by
another company in its own product and sells the product of
the second company under its own brand is called OEM.

Make to stock strategies is that increase the stock of
finished good so that to increase the gross profit and make
to order strategies is to increase the order lavel and
planning the production according to that and take the
benifit of uncessary bound of capital in stock