Assignment No.

Case Studies
Submitted by:AKHIL AHOOJA 1

BRANCH-MBA(M&S) FORM NO:-5018275

Case Study 1 : Devesh Sharma

Devesh Sharma completed his post graduation from IIM A. He was appointed as a Cost Accountant in ABC Engineering Works, Delhi with a salary of Rs 49000 p.m. His immediate boss was Chief Accountant (CA).Other higher bosses were DGM and GM equally powerful. The firm is basically heavy engineering fabricators and specialists in manufacturing machinery for sugar and cement industry. They also accept orders for other types os casting, machining and fabrication jobs provided such jobs are sufficiently large. The workshop is located on the outskirts of Delhi. The factory is divided into three parts: a foundry, a machine shop, and a fabrication shop. Many parts for sugar and cement industry have to go through all the departments, generally in the same order in which they are listed above. Most of the orders received are either single job orders or batches of similar job orders. He was remarked by the chief accountant that he should not get over enthusiastic, better off to suggest your ideas rather try force the pace. He spent two weeks in the plant.

Time being the GM and DGM came back after signing a collaboration agreement with a German firm set up a paper machinery manufacturing plant.DGM asked him to be in touch on every endeavor and gave him a assignment for two days to be studied and the factual report on that. He submitted the detail report to DGM, gave a copy to the CA. Neither of them called him to discuss the report.

Then he was asked by CA to spend the next months as a staff assistant to him. Every year the company used to take the book balances as per the stores accounts for income 2

statement. DGM called the CA and Devesh , suggested we have a physical verification this year and assigned the full responsibility to Devesh . He also sent a note to all production departmental heads and the Stores Superintendent to furnish all necessary assistance to Devesh in this regard. Stock verification was completed. Found large discrepancies between physical stocks and book stocks. Started investigating the reasons for the discrepancy. He was satisfied with the security arrangements. Ruled out the possibility of that by outside parties. He accidentally found some old used stores indents lying in the backyard of the stores. They were not the indenters copy (Indenters copy is in buff paper and the original copy is in a fairly thick paper of blue colour.) could not make out the content or the department to which they belonged. All the entries had faded. Discussed this problem with the CA. He wondered as to what they could do about it. They did not have proper storing arrangements for all the materials. Again, he prepared a report and submitted to DGM with a copy to CA. Similarily, this time he didnt receive any response

The labour booking system Devesh suggested was basically meant to facilitate the ascertainment of the time spent on various jobs by the workers. Since the CA told him about the DGMs reluctance to recruit more men for establishing a separate Cost Accounts Section, he suggested that the plant superintendents can utilize their existing assistants to compile the necessary data from the daily job cards and send a weekly return to the Cost Accounts Section. On this he again prepared a report submitted it to DGM with copy to CA. Similarly, there was no action.

He again prepared a note as discussed by Mr. Roy (Chief Metallurgist, Foundry) to introduce a production reporting system in the foundry and submitted it to the CA with copies to the DGM and the Foundry Superintendent. Again no response was received.

Ultimately , Devesh was warned by CA that such notes are to be submitted to me first and only after he approves it you can forward. He thought of taking the matter to DGM but he didnt.

This case tells us that one should work within his range and work assigned, shouldnt get over enthusiastic and not try to force the pace. If one works with over enthusiastic feeling then he is reminded of his work by the subordinate or the senior.