COST ACCOUNTING ISMS MBA ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: firstname.lastname@example.org WEBSITE: www.casestudyandprojectreports.com
Chartered Certified Accountant (CCA)
Note :- Solve any 6
1. a) Are all fixed costs sunk costs? Explain
b) What are opportunity costs? Are opportunity costs relevant in decision making? Give examples in support of your answer.
c) What are the various methods by which you would split semi-variable costs in its fixed and variable elements?
2. a) What are the characteristics of companies that are like to be using job order cost system? Specify five concrete situations when use of job order cost system is most appropriate.
b) Why is it difficult to identify manufacturing overheads with products manufactured? Also, state the difference between the manufacturing overheads control account and manufacturing overhead applied account.
3. a) What do you understand by integrated accounts? State the advantages of integrated accounts. State in brief the procedure of installing such a system in a newly started manufacturing firm.
b) Why is it necessary to reconcile cost and financial accounts?
4. a) Explain How budgeting and budgetary control operate together in a total management system.
b) Write a note on the advantages and limitations of budgeting.
5. a) What is “standard costing” and how would you distinguish it from “budgetary control?”
b) How do standards and standard costs facilitate managerial planning and control?
6. “Costs may be classified in a variety of ways according to their nature and the information needs of the management.” Explain.
7. The Stock Control Policy of a company is that, each stock is ordered twice a year. The quantum of each order being one-half of the year’s forecast demand
The materials manager, however, wishes to introduce a policy in which for each item of stock, reorder levels and EOQ is calculated
For one of the items X; the following information is available:
Forecast annual demand 3,600 units
Cost / unit Rs. 100
Cost of placing an order Rs.40
Stock holding cost 20% of average stock value
Lead time 1 month
It is estimated by the materials manager that for item X, a buffer stock of additional 100 Units should be provided to cover fluctuations in demand.
If the new policy is adopted, calculate for stock item X:
(i) the reorder level that should be set by the material manager;
(ii) the anticipated reduction in the value of the average stock investment;
(iii) the anticipated reduction in total inventory costs in the first and subsequent years.
8. (a) What is activity based costing?
(b) Explain the concept of cost drivers
Indicate what you will consider as cost drivers for the following business functions:
(i) Research and development;
(ii) Customer service
Master Program in Business Administration (MBA)
Note :- Solve any 4 case study
All case carries equal marks
A DIAMOND PERSONALITY
Ask Suraj bhai about the dot-com burst and he may grin at you as if to say, “What burst?’’ Suraj bhai, a 38-year-old entrepreneur, owns an Internet business that sells loose diamonds to various buyers. Business is becoming for Suraj bhai. In 2004, he had sales of INR 3,500 million. Needless to say, Suraj bhai is optimistic about his business venture.
The future wasn’t always to bright for Suraj bhai, however. In 1985, Suraj bhai moved from his native town Suraj, to New Delhi, with little ability to speak English. There, he attended language courses and worked at the local mall to support himself. After graduation, his roommate’s girlfriend suggested that he work at a local jeweler. “I thought she was crazy. I didn’t know anything about jewelry,’’ says Suraj bhai, who took her advice. Though he worked hard and received his Diamonds and Diamonds Grading certification from the Gemological Institute, he wasn’t satisfied with his progress. `I quickly realized that working there, I was just going to get a salary with a raise here and there. I would never become anything. That drove me to explore other business ventures. I also came to really known diamonds – their pricing and their quality.’’
In 1997, tired of working for someone else, Suraj bhai decided to open his own jewelry store. However, business didn’t boom. `Some of my customers were telling me they could find diamonds for less on the Interest. It blew my mind’’ Surajy bhai recognized an opportunity and began contacting well-known diamond dealers to see if they would be interested in selling their gems online. Suraj bhai recalls one conversation with a prominent dealer who told him, `You cannot sell diamonds on the Internet. You will not survive.’’ Discouraged, Suraj bhai then says that he made a mistake. “I stopped working on it. If you have a dream, you have to keep working harder at it.’’
A year later, Suraj bhai did work harder at his dream and found a dealer who agreed to provide him with some diamonds. Says Suray bhai, “Once I had one. I could approach others. Business started to build. The first 3 months I sold INR 20 million worth of diamonds right off the bat. And that was just me. I started to add employees and eventually closed the jewelry store and got out of retail.’’ Although Suraj bhai does have some diamonds in inventory, he primarily acts as a connection point between buyers and suppliers, giving his customers an extraordinary selection from which to choose.
Suraj bhai is now a savvy entrepreneur, and his company, Abhisaz.com, went public in October 2003.
Why is Suraj bhai successful? Just ask two people who have known Suraj bhai over the years. Yogesh bhai, a realtor who helped build Suraj bhai building, says, “Suraj bhai is a very ambitious young man. I am not surprised at all how successful he is. He is an entrepreneur in the truest sense of the world.’’ One of Suraj bhai former real-estate instructors, Arun Jain, concurs. `I am not surprised at all at his success,’’ says Arun. “Suraj bhai has always been an extremely motivated individual with a lot of resources. He has a wonderful personality and pays close attention to detail. He also has an ability to stick to things. You could tell from the beginning that he was going to persevere, and I am proud of him.’’
Suraj bhai is keeping his success in perspective, but he also realizes his business’ potential: “I take a very small salary, and our overhead in INR 25 million a year. I am not in debt, and the business is breaking ever. I care about the company. I want to keep everything even until we take off, and then it may be another ball game.’’
1. What factors do you think attributed to Suraj bhai’s success? Was he merely “in the right place at the right time’’, or are there characteristics about him that contribute to his success?
2. How do you believe Suraj bhai would score on the Big Five dimensions of personality (extroversion, agreeableness, conscientiousness, emotional stability, openness to experience)? Which ones would he score high on? Which ones might he score low on?
3. Do you believe that Suraj bhai is high or low on core self-evaluations? On what information did you base your decision?
4. What information about Suraj bhai suggests that he has a proactive personality?
It got to where I was twitching, literally, on the way into work,’’ states Carrie Clark, a 52-year-old retired teacher and administrator. After enduring 10 months of repeated insults and mistreatment from her supervisor, she finally quit her job. “I had to take care of my health.’’
Though many individuals recall bullies from their elementary school days, some are realizing that bullies can exist in the workplace as well. And these bullies do not just pick on the weakest in the group, rather, any subordinate in their path may fall prey to their torment, according to Dr. Gary Namie, director of the Workplace Bullying and Trauma Institute. Dr. Namie further says workplace bullies are not limited to men-women are at least as likely to be bullies. However, gender discrepancies are found in victims of bullying, as women are more likely to be targets.
What motivates a boss to be a bully? Dr. Harvey Hornstein, a retired professor from Teachers College at Columbia University, suggests that supervisors may use bullying as a means to subdue a subordinate that poses a threat to the supervisor’s status. Additionally, supervisors may bully individuals to vent frustrations. Many times however, the sheer desire to wield power may be the primary reason for bullying.
What is the impact of bullying on employee motivation and behavior? Surprisingly, even though victims of workplace bullies may feel less motivated to go to work every day, it does not appear that they discontinue performing their required job duties. However, it does appear that victims of bullies are less motivated to perform extra-role or citizenship behaviors. Helping others, speaking positively about the organization, and going beyond the call of duty are behaviors that are reduced as a result of bullying. According to Dr. Bennett Tepper of the University of North Carolina, fear may be the reason that many workers continue to perform their job duties. And not all individuals reduce their citizenship behaviors. Some continue to engage in extra-role behaviors to make themselves look better than their colleagues.
What should you do if your boss is bullying you? Don’t necessarily expect help from coworkers. As Emelise Aleandri, an actress and producer from New York who left her job after being bullied, stated, “Some people were afraid to do anything. But others didn’t mind what was happening at all, because they wanted my job.’’ Moreover, according to Dr. Michelle Duffy of the University of Kentucky, coworkers often blame victims of bullying in order to resolve their guilt. “they do this by wondering whether maybe the person deserved the treatment, that he or she has been annoying, or lazy, they did something to earn it,’’ states Dr. Duffy. One example of an employee who observed this phenomenon firsthand is Sherry Hamby, who was frequently verbally abused by her boss and then eventually fired. She stated, “This was a man who insulted me, who insulted by family, who would lay into me while everyone else in the office just sat there and let it happen. The people in my office eventually started blaming me.’’
What can a bullied employee do? Dr. Hornstein suggests that employees try to ignore the insults and respond only to the substance of the bully’s grip. `stick with the substance, not the process, and often it won’t escalate,’’ he states. Of course, that is easier said than done.
1) Of the three types of organizational justice, which one does workplace bullying most closely resemble?
2) What aspects of motivation might workplace bullying reduce? For example, are there likely to be effects on an employee’s self-efficacy? If so, what might those effects be?
3) If you were a victim of workplace bullying, what steps would you take to try to reduce its occurrence? What strategies would be most effective? What strategies might be ineffective? What would you do if one of your colleagues was a victim of an abusive supervisor?
4) What factors do you believe contribute to workplace bullying? Are bullies a product of the situation, or are they flawed personalities? What situations and what personality factors might contribute to the presence of bullies?
THANKS FOR NOTHING
Thought it may seem fairly obvious that receiving praise and recognition from one’s company is a motivating experience, sadly many companies are failing miserably when it comes to saying “thanks’’ to their employees. According to curt Coffman global practice leader at Gallup, 71 percent of U.S. workers are “disengaged’’, essentially meaning that they could care less about their organization. Coffman states. “We’re operating at one-quarter of the capacity in terms of managing human capital. It’s alarming.’’ Employee recognition programs, which became more popular as the U.S. economy shifted from industrial to knowledge-based, can be an effective way to motivate employees and make them feel valued. In many cases, however, recognition programs are doing “more harm than good’’ according to Coffman.
Take Ko, a 50-year-old former employee of a dot-com in California. Her company proudly instituted a rewards program designed to motivate employees. What were the rewards for a job well-done? Employees would receive a badge which read “U Done Good’’ and, each year, would receive a T-shirt as a means of annual recognition. Once an employee received 10 “U Done Good’’ badges, he or she could trade them in for something bigger and better—a paperweight. Ko states that she would have preferred a raise. “It was patronizing. There wasn’t any deep thought involved in any of this.’’ To make matters worse, she says the badges were handed out arbitrarily and were not tied to performance. And what about those T-shirts? Ko states that the company instilled a strict dress code, so employees couldn’t even wear the shirts if they wanted to. Needless to say, the employee recognition program seemed like an empty gesture rather than a motivation.
Even programs that provide employees with more expensive rewards can backfire, especially if the rewards are given insincerely. Eric Lange, an employee of a trucking company, recalls the time when one of the company’s vice presidents achieved a major financial goal for the company. The vice president, who worked in an office best of Lange, received a Cadillac Seville as his company car and a new Rolex wristwatch that cost the company $10,000. Both were lavish gifts, but the way they were distributed left a sour taste in the vice president’s mouth. He entered his office to find the Rolex in a cheap cardboard box sitting on his desk, along with a brief letter explaining that he would be receiving a 1099 tax form in order to pay taxes on the watch. Lange state of the vice president, “He came into my office, which was right next door, and said, `can you believe this?’’ A mere 2 months later, the vice president pawned the watch. Lange explains. “It had absolutely no meaning for him.
Such experiences resonate with employees who may find more value in a sincere pat on the back than gifts from management that either are meaningless or aren’t conveyed with respect or sincerity. However, sincere pats on the back may be hard to come by. Gallup’s poll found that 61 percent of employees stated that they haven’t received a sincere, “thank you’’ from management in the past year. Finding such as these are troubling, as verbal rewards are not only inexpensive for companies to hand out but also are quick and easy to distribute. Of course, verbal rewards do need to be paired sometimes with tangible benefits that employees value – after all, money talks. In addition, when praising employees for a job well-done, managers need to ensure that the praise is given in conjunction with the specific accomplishment. In this way, employees may not only feel valued by their organization but will also know what actions to take to be rewarded in the future.
1) If praising employees for doing a good job seems to be a fairly easy and obvious motivational tools, why do you think companies and managers don’t often do it?
2) As a manager, what steps would you take to motivate your employees after observing them perform well?
3) Are there any downsides to giving employees too much verbal praise? What might these downsides be and how could you alleviate them as a manager?
4) As a manager, how would you ensure that recognition given to employees is distributed fairly and justly?
WILL GEORGE W. BUSH BE A GREAT PRESIDENT?
What does it take to be a great U.S. president? A survey of 78 history, political science, and law scholars rated the U.S. presidents from George Washington to Bill Clinton. Here are the presidents who were rated “Great’’ and “Near Great.’’
Franklin D. Roosevelt (FDR)
Among recent presidents, Presidents Nixon, Ford, and Carter were ranked “Below Average’’ and Presidents G. H. W. Bush (the first President Bush) and Clinton were ranked “Average’’.
So what explains these ratings? The following are some qualities of presidents who have stood the test of time.
1. Great presidents are transformational leaders who engender strong emotions – that is, you either love them or you hate them (it’s hard to hate someone who made little difference). And great presidents enact a vision that may not respond to popular opinion. Lincoln and FDR were beloved, and hated, by millions.
2. Great presidents are bold and take risks, and almost all great presidents emerge successfully from a crisis. A great president is perceived as “being there’’ when a crisis emerges and taking bold action to lead the nation out of the crisis – for example, Lincoln in the Civil War and Roosevelt in WWII.
3. Great presidents are associated with a vision. Most people, for example, are able to associate the great presidents with defining moment where a clear set of principles was articulated – for example, FDR’s speech to Congress after the attacks on Pearl Harbor, and Lincoln’s Gettysburg Address.
4. Great presidents are charismatic. They are engaging, articulate, and expressive, which helps capture the public’s attention and rallies people around a president’s cause. One leadership expert argues that the best presidents create colorful personas with their language by using words with basic emotions – for example, good versus evil or love versus hate.
So what about President George W. Bush (the second President Bush)? Shortly after his second inauguration, President Bush embarked on an ambitious agenda of legal reform, transforming the Social Security system, tax reform, and revising immigration laws. One writer commented, “Bush has always thought big, and always believed you earn political capital by expending it.’’ However, the closeness of the 2004 election (Bush received 51 percent of the vote and Kerry received 48 percent) suggests that Bush may not have overwhelming support.
1. How would you rate President George W. Bush on the four characteristics outlined at the beginning of the case? How would you contrast his reaction to Hurricane Katrina with his reaction to the terrorist attacks of September 11, 2001? What do you think his handling of these two events says about his leadership?
2. Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents?
3. Do you think being in the right place at the right time could influence presidential greatness?
A UNIQUE TRAINING PROGRAM AT UPS
Mark Colvard, a United Parcel manager in San Ramon, California, recently faced a difficult decision. One of his drivers asked for 2 weeks off to help an ailing family member. But company rules said this driver wasn’t eligible. If Colvard went by the book, the driver would probably take the days off anyway and be fired. On the other hand, Colvard was likely to be criticized by other drivers if he bent the rules. Colvard chose to give the driver the time off. Although he took some heat for the decision, he also kept a valuable employee.
Had Colvard been faced with this decision 6 months earlier, he says he would have gone the other way. What changed his thinking was a month he spent living in McAllen, Texas. It was part of a UPS management training experience called the Community Internship Program (CIP). During his month in McAllen, Colvard built housing for the poor, collected clothing for the Salvation Army, and worked in a drug rehab center. Colvard gives the program credit for helping him empathize with employees facing cries back home. And he says that CIP has made him a better manager. “My goal was to make the numbers, and in some cases that meant not looking at the individual but looking the bottom line. After that 1-month stay, I immediately started reaching out to people in a different way.’’
CIP was established by UPS in the late 1960s to help open the eyes of the company’s predominantly white managers to the poverty and inequality in many cities. Today, the program takes 50 of the company’s most promising executives each summer and brings them to cities around the country. There they deal with a variety of problems- from transportation to housing, education, and health care. The company’s goal is to awaken these managers to the challenges that many of their employees face, bridging the cultural divide that separates a white manager from an African American driver or an upper-income suburbanite from a worker raised in the rural South.
1. Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.
2. How could UPS’s CIP help the organization better manage work-life conflicts?
3. How could UPS’s CIP help the organization improve its response to diversity?
4. What negatives, if any, can you envision resulting from CIP?
5. UPS has 2,400 managers. CIP includes only 50 each year. How can the program make a difference if it includes only 2 percent of all managers? Does this suggest that the program is more public relations than management training?
6. How can UPS justify the cost of a program like CIP if competitors like FedEx, DHL, and the U.S. Postal Service don’t offer such programs? Does the program increase costs or reduce UPS profits?
Masters Program in Business Administration (MBA)
Note :- Solve any 4 case study
All case carries equal marks
NAVEEN FISHERIES LTD.
The managing director of Naveen Fisheries Ltd. (NFL) received a message from one of the members of the crew that their mechanized boats had sunk at sea off Paradeep Port Trust due to unfavorable weather. The other directors of NFL ascertained the detailed information regarding the incident. All the promoters were fresh graduates.
Naveem, Praveen, Nagain, Ravi and Chandra were the promoters of the organization (NFL at Vishakhapattanam) with a capital contribution of Rs. 25 lakh each. Three of them had an engineering background. The other two were commerce graduates. They had thought of designing the vessels themselves so that the cost each mechanized boat would be reduced from Rs. 30 lakhs (if they bought them) to Rs. 22 Lakh. They designed three boats and these were sent out with a newly – appointed crew. Two vessels were sent to Paradeep and the third to Kakinada. Unfortunately, the weather was unfavourable. All the vessels sank. The crew also did not have experience. Two workers were injured and the rest arrived sagely. There was significant damage to the vessels and the residue was considered scrap. The cost of scrap of the vessels was nominal. As their working capital was scarce, and they were unable to invest more capital, they were in a dilemma whether to continue the business or not.
Case I Questions:
1. What were the reasons for the sinking of the vessels?
2. How could they reorganize the businesses?
At MNC Corporation, a foreman of inspection noticed a mistake in the assembly of transmitter cases. The foreman, a shy man when speaking to his immediate superiors, mentioned this matter to the senior supervisor in a weak, ineffectual manner. The senior supervisor nodded his head and continued to work on a report that he was writing. Later, a production slowdown occurred, and it was discovered that this flaw in the transmitter was the cause. The chief of production engineering, upset because this error had passed inspection unnoticed, reproved the senior supervisor in a brusque manner.
The senior supervisor called in the foreman of inspection and asked why this error had not been brought to his attention. The foreman said, “I told you the other day they were missing same of the punch-outs in those transmitter cases.” The senior supervisor said, “Yes, but you did not pound the desk when you told me!”
Case II Questions:
1. Why did the communication problem arise?
2. What do you suggest to prevent the communication problem?
MEHTA BANK LTD
Venkataraman was an officer in a leading nationalized bank with years of service to his credit. During his long period of service, he worked in different capacities and sections. His attitude and behavior made him a trusted in the organization. Having been posted in a big branch based in a large city, he was not keen on getting further promotions.
On one occasion, when he was working as an incharge of the draft issue section, he issued bundles of drawing books from the main stock of the security forms of the branch and kept the same in his custody in an almirah provided to him. One fine morning, he removed three drawing books out of the stock of books valued below Rs. 10,000 which he had in his own custody and kept them in his house. He then started issuing drafts in various names form his house out of the aforesaid stolen drawing books by allotting correct branch serial numbers obtained from the branch register under his control. The drafts were deposited in different banks/branches of the same bank in different accouns opened in the names of the payees of the drafts. These accounts were introduced by the bank employees, and some of them were in different representations only, like Mr. Venkataraman Aiyar, Mr Venkataraman Iyengar, etc. The drafts thus deposited were presented in clearing and were passed in the normal course without any doubt or suspicion. In the evening, he would visit the concerned drawee offices and collect such paid drafts.
Having found this technique successful, he tried his hand at yet another. This time he started issuing drafts in fictitious names or in the names of his close relatives drawn on outstations without any vouchers or deposits. After a few days, he would cancel the same drafts by allowing the credits to the respective accounts in his own branch by debiting the head office accounts. He continued to do this for about three months, causing a loss of over Rs. 700,000 to the bank.
The fraud came to light thanks to the presence of mind exercised by on e of the officers at another local office. He found that on the previous day also, he had paid a similar draft with the leaf number previous to the draft presented now. In his view, it was not possible for such a big office to avoid consumption of draft leaved in this fashion. Consequently, the matter was taken up with the issuing branch. Unfortunately for Venkataraman, someone else was working as the incharge of the draft issue section on that day. On checking up the records, it transpired that no such draft was issued. This led to promt investigations and detection of the whole fraud committed by Venkataraman.
Case III Questions:
1. How do you view the present fraud case: a human failure or a system failure?
2. What are the main issues in the case, and how can our present system of control prevent such fraud?
3. How would you manage the situation on detection?
Mr. Lateef, Chairman of Shahid Fabrics, a Hyderabad-based garments and piece goods firm which exported all its products to the USA, faced a decision in August 1985. The US government had imposed quota restrictions which reduced the exports of his firm by 40 percent. He had to find a new market for his products.
Shahid Fabrics was one of Pakistan’s major exporters of garments and piece goods. Its share was 25 percent of the exports of these goods of the whole country. It was established in 1954 as a producer of cotton cloth and later, in 1966, it extended production to include garments and piece goods. It had eight local production units and the total number of employees was 8,000. All its garments and piece goods were exported, and branded according to customer specification. All the goods were exported to the USA and the sales of the firm amounted to US$ 100 million. In 1984, the US government imposed quota restrictions. By August 1985, Shahid Fabrics exports had been reduced by 40 percent.
Mr. Lateef believed that finding new markets was the only way to survive. The possible alternatives according to him were the EEC countries, the USSR, the Middle Eastern Arab countries and the other Asian countries. The EEC was a very good potential market, but Europeans were very tough buyers. It would be necessary to segregate the EEC from other buyers because of their existing specifications with regard to style, colour and packing. The USSR too was a potential market as far as demand was concerned, but the country did not have enough money in foreign exchange.
The Middle Eastern Arab countries had money, but their requirements were small due to their smaller population. Second, these countries preferred not to buy Pakistani goods directly from Pakistan$. They would rather like to buy the same Pakistani goods, branded differently from other Western countries, say France.
Asia was a big market, but the Asian countries, including turkey, were Shahid Fabrics’ competition in the international market. Mr. Lateef was deeply concerned with the loss of 40 percent of his export goods. He was eager to determine which new market offered the highest potential. He wondered what specific information he could use to help his decision.
Case IV Questions:
1. What information should Mr. Lateef develop to evaluate foreign markets?
2. Where should he look for this information?
3. Develop a framework to help Mr. Lateef identify his best potential foreign markets.
WESTWARD EXPORTS LTD.
Mr. Abdul Ahmed, Production Manger, Westward Exports Ltd, Karachi, faced a decision in 1984. the rejection rate of their exports of readymade garments was 20 percent of total production. He also felt that their productivity was not as high as it might have been.
Westward Exports Ltd. was a large Pakistani company exporting ladies fashion garments made of pure cotton. Their main product items were blouses, skirts, dresses, shirts, pants, etc. their main overseas markets were the USA, Europe and Japan, and production was Rs. 100 million. They had about 2,000 workers engaged in production through their various subcontractors.
Production was carried out by 138 subcontractors. They did not utilize assembly line production: each individual worker carried out all the jobs required on each garment. The machinery and equipment used by the machines had a low output, and were not suited to high technology application. Mr. Abdul knew that male workers performed 60 percent of the total production and the rest was done by females. He also knew that while male workers were always willing to work overtime, their absentee rate was greater than that of women. Abdul felt that productivity could be higher, and he wondered how he should approach this issue.
The company purchased raw material (grey cloth) from several sources and had it dyed by different concerns, which sometimes caused variation in the colors. Both dyeing and inferior stitching caused the rejection rate, to rise to 20 percent of their total production. Mr. Abdul was worried about this high rate of rejection, and wondered what sequence of steps he should take to help reduce this high rejection rate.
Case V Questions:
1. What alternatives are available to Mr Abdul?
2. Other than purchasing higher technology machinery, in what ways might Mr Abdul increase the effectiveness and efficiency of the dyeing and stitching operations?
BABA BEARINGS COMPANY
The quality circle Sigma was started in the heat treatment section of Baba Bearings Company with seven members.
The members prepared the following list of various factors affecting the productivity of the heat treatment section.
1. Distortion of bearing races in sealed quench furnaces.
2. Loss of productivity and energy in sealed quench furnaces.
3. Excess consumption of LPG.
4. Rejection of cages due to scaling during annealing.
5. Shrinkage in tapered roller bearing outer rings.
6. Broadly, bearing are manufactured in the following three stages: (a) Turning, (b) Heat Treatment, and (c) Grinding.
The circle members, in their brainstorming session, gave priorities to the study aspects with the help of Pareto analysis. Distortion of bearing races in sealed quench furnaces was a major factor affecting the productivity. Hence, the circle decided to take this up for study. Turned rings in the soft condition are hardened and tempered. After heat treatment, it was noted that about 30 percent of the rings were beyond the specified limits of distortion (ovality). These rings were subject to straining for rectification.
Straining is a laborious process involving extra manpower and time. It affected schedules and deliveries to customers. The cause and effect diagram was employed for analysis, and the following causes identified:
• Design of heating elements
• Mesh baskets distortion
The members collected data regarding the heating element. Rings are loaded into the furnace keeping in a mesh basket in layers. The rings are heated by corrtherm heating elements; the heat is made to circulate uniformly throughout the furnace by a circulating fan. After the hardening process, it was observed that in general, the rings arranged at the sides of the basket adjacent to the heating elements showed greater ovality (50 per cent) than those at the centre (17 percent).
The members felt that rings at the sides were directly exposed to the radiant heat of the elements, and this resulted in a temperature gradient within the cross-section of the rings, causing more distortion. The temperature adjacent to the heating elements was higher by 26 degree Celsius than at the centre of the furnace.
Case VI Questions:
1. What are the measures to be taken to avoid direct effect of heat?
2. Design a quality improvement process for the bearings company.