Wat-pi Primer 2014

8/12/2019 Wat-pi Primer 2014

1/26

Disclaimer: The information shared is purely to help the candidates prepare for their interview/WAT round and Management

Canvas shall not be held responsible for any misuse of the information.

8/12/2019 Wat-pi Primer 2014

2/26

8/12/2019 Wat-pi Primer 2014

3/26



8/12/2019 Wat-pi Primer 2014

4/26



1. CURRENT AFFAIRS TOPICSDisclaimer: The list of questions/topics given below is not meant to be comprehensive. It is

only meant to provide guidelines/focus on certain key areas. Keeping abreast with the

current affairs in the national and international circles in the area of polity, economy,

business, sports, etc are of paramount importance.

1. CIIs Business Confidence Index revealed signs of economic turnaround2. International Petroleum Conference 2014 to be held in New Delhi3. USA government shutdown4. Arvind Kejriwal and AAP party: viability of populist measures5. UK to overtake Germany as Europeslargest economy by 2030: CEBR report6. RBI launched Inflation Indexed Saving Bonds7. CRISIL said Fiscal deficit to touch 5.2% in FY148. Union Government launched e-inclusion project to spread e-literacy9. Public Sector Banks directed by the Union Finance Ministry to act as Insurance Brokers10.Indian economy before and after Raghuram Rajanchanges made11.Revising section 377India one step forward two steps back12.Division of states- in light of the Andhra Pradesh Reorganization Bill 201313.RBI moves to curb black moneyimplications14.Davos 2014: Economic growth, income inequality, key themes15.FDI in retail: the U- turn16.JetEtihad, NokiaMicrosoft, TataSingapore Airlines17.Mars orbiter mission ISROIndia defeating China18.Minority status to Jain communityImpacts19.Quantitative easingUSA20.Key Awards and Winners21.Land Acquisition Bill201322.Companies law Amendment201323.General Elections 2014Challenges and Challengers for the next PM24.Muzaffarnagar Riots25.Key Fiscal indicators, GDPs, current interest rates, repo rates26.Recipients of Padma Bhushan, Padma Shri, awards27.Emergence of China in the global arena28.Current state of mid African countries (Libya, Egypt, Syria which had political leadership

crisis
http://www.jagranjosh.com/current-affairs/ciis-business-confidence-index-revealed-signs-of-economic-turnaround-1388479900-1http://www.jagranjosh.com/current-affairs/ciis-business-confidence-index-revealed-signs-of-economic-turnaround-1388479900-1http://www.jagranjosh.com/current-affairs/international-petroleum-conference-2014-to-be-held-in-new-delhi-1388475061-1http://www.jagranjosh.com/current-affairs/uk-to-overtake-germany-as-europes-largest-economy-by-2030-cebr-report-1388137810-1http://www.jagranjosh.com/current-affairs/uk-to-overtake-germany-as-europes-largest-economy-by-2030-cebr-report-1388137810-1http://www.jagranjosh.com/current-affairs/uk-to-overtake-germany-as-europes-largest-economy-by-2030-cebr-report-1388137810-1http://www.jagranjosh.com/current-affairs/rbi-launched-inflation-indexed-saving-bonds-1388036867-1http://www.jagranjosh.com/current-affairs/crisil-said-fiscal-deficit-to-touch-52-in-fy14-1387888843-1http://www.jagranjosh.com/current-affairs/union-government-launched-einclusion-project-to-spread-eliteracy-1387886631-1http://www.jagranjosh.com/current-affairs/public-sector-banks-directed-by-the-union-finance-ministry-to-act-as-insurance-brokers-1388034713-1http://www.moneycontrol.com/news/current-affairs/davos-2014-economic-growth-income-inequality-key-themes_1028414.htmlhttp://www.moneycontrol.com/news/current-affairs/davos-2014-economic-growth-income-inequality-key-themes_1028414.htmlhttp://www.moneycontrol.com/news/current-affairs/davos-2014-economic-growth-income-inequality-key-themes_1028414.htmlhttp://www.jagranjosh.com/current-affairs/public-sector-banks-directed-by-the-union-finance-ministry-to-act-as-insurance-brokers-1388034713-1http://www.jagranjosh.com/current-affairs/union-government-launched-einclusion-project-to-spread-eliteracy-1387886631-1http://www.jagranjosh.com/current-affairs/crisil-said-fiscal-deficit-to-touch-52-in-fy14-1387888843-1http://www.jagranjosh.com/current-affairs/rbi-launched-inflation-indexed-saving-bonds-1388036867-1http://www.jagranjosh.com/current-affairs/uk-to-overtake-germany-as-europes-largest-economy-by-2030-cebr-report-1388137810-1http://www.jagranjosh.com/current-affairs/international-petroleum-conference-2014-to-be-held-in-new-delhi-1388475061-1http://www.jagranjosh.com/current-affairs/ciis-business-confidence-index-revealed-signs-of-economic-turnaround-1388479900-1

8/12/2019 Wat-pi Primer 2014

5/26



8/12/2019 Wat-pi Primer 2014

6/26



2. GUIDELINES FOR WAT PHASE OF SELECTION

WAT, as you all know is Written Ability Test. It has 2 sections/parts in it

1) Summary part

2) Article part

Summary part: Anything can be asked to summarize in this section. Word limit must be

adhered to. Skills that are tested are the identification of critical parts in the passage, forming

suitable paragraphs, good vocabulary, and contraction of detailed ideas as per space and word

limit and the concise and clear description of the central theme of the passage.

[Caution: No extra sheets are provided for this, hence it is advised that you dont clutter the

space provided and try to avoid scratch work]

Article Part :Articles to be written usually are those which are currently trending, hence it is

advised that you start reading newspapers from now on and also brush up the news items from

last 3 months newspapers. Magazines like Forbes, Entrepreneur, and Economist wi ll aid you in

this process. We have identified a set of topics, which you are advised to go through once:

1. AAP

Will the AAP survive long enough in its idealistic mode to have any influence on therules of conducting politics in India?

Are the AAP's measures more populist than realistic? Can AAP recent success in Delhi Elections be emulated in the Lok Sabha elections too?

Should they focus on LS at all or should they work on getting a stronghold in Delhi first?

2. Next PM?

Narendra Modi/Rahul Gandhi/Arvind Kejriwal/Others3 Safety of females:

State of affairs of women safety in the country. Has anything changed at all sinceNirbhaya?

Is India a safe destination for foreigners? What happened toAtithi Devo Bhavah? Another female alleges sexual harassment by a former Supreme Court Judge.

8/12/2019 Wat-pi Primer 2014

7/26



4. Devyani Khobragade

India-US standoff and India's measures justified?

5. GSLV-D5 launch puts India in select club of spacefarers.

Is this spending a wise decision when so many Indians die of cold, hunger and disease?

6. Jan Lokpal Bill

Can it really curb corruption? What can?

7. Muzaffarnagar riots

Riots are refreshed in our memory every few years. Are we really moving ahead at all?What about the victims now? Who is to be blamed this time?

8. 'No discrimination based on caste, creed, religion, sex, etc.,' says our Constitution. Is any

of it even remotely true? Does even the Constitution believe that?

9. Airlines Industry

What led to the Kingfisher doom? Why did the business top-notches let the situation getthis bad?

Indian airlines in general - Indigo and Air India, the revenue model, the road ahead.

10. Is MBA losing its sheen? Is there value addition? If no, why are people opting for it and

why are they being paid so much for it? If yes, then why does industry say otherwise?

8/12/2019 Wat-pi Primer 2014

8/26



8/12/2019 Wat-pi Primer 2014

9/26



3. ECONOMICSBasics of Economics

The story of Modern Economics as taught at the Institutes of higher learning begins from acertain book, An enquiry in to the Nature andCauses of the Wealth of Nations, written by the

Father of Modern Economics, Adam Smith. This Social Science deals with the decisions made

by individuals and nations given that they have only scarce resources at their disposal. These

resources can be money, skill, time (for an individual) and natural resources, labor and capital for

a nation.

Opportunity cost is a key concept in economics, and is described as "the basic relationship

between scarcity and choice". Opportunity cost is the cost of any activity measured in terms of

the value of the next best alternative foregone (that is not chosen).

Microeconomics

The Economist'sDictionary of Economicsdefines Microeconomics as "The study of economics

at the level of individual consumers, groups of consumers, or firms. It involves the determination

of price through the optimizing behavior of economic agents, with consumers maximizing utility

and firms maximizing profit."

Thus, Microeconomics seeks to answer questions like, how does the change of a price of good

influence a family's purchasing decisions? If my wages rise, will I be inclined to work morehours or less hours? This brings us to the 2 basic laws of Economics:

The Law of Demand

If all other factors remain equal, the higher the price of a good, the less people will demand that

good. The amount of a good that buyers purchase at a higher price is less because as the price of

a good goes up, so does the opportunity cost of buying that good. As a result, people will

naturally avoid buying a product that will force them to forgo the consumption of something else

they value more.

The Law of Supply

The higher the price, the higher the quantity supplied. Producers supply more at a higher price

because selling a higher quantity at higher price increases revenue.

8/12/2019 Wat-pi Primer 2014

10/26



Equilibrium:

When supply and demand are equal (i.e. when the supply function and demand function

intersect) the economy is said to be at equilibrium. At the given price, suppliers are selling all thegoods that they have produced and consumers are getting all the goods that they are demanding.

As you can see on the chart, equilibrium occurs at the intersection of the demand and supply

curve. At this point, the price of the goods will be P* and the quantity will be Q*. These figures

are referred to as equilibrium price and quantity.

However, in the real market place equilibrium can only ever be reached in theory, so the prices

of goods and services are constantly changing in relation to fluctuations in demand and supply.

Macroeconomics

The Economist's Dictionary of Economics defines Macroeconomics as "The study of whole

economic systems aggregating over the functioning of individual economic units. More

specifically, it is a study of national economies and the determination of national income."

A variety of measures of national income and output are used in economics to estimate total

economic activity in a country or region:

Gross Domestic Product (GDP):

It is defined as "the value of all final goods and services produced in a country in 1 year". Thus,

GDP = consumption + investment + (government spending) + (exports imports)

8/12/2019 Wat-pi Primer 2014

11/26



Gross National Product (GNP)

It is defined as "the market value of all goods and services produced in one year by labour and

property supplied by the residents of a country."

GNP = GDP + NR (Net income from assets abroad (Net Income Receipts))

GDP per capita (per person) is often used as a measure of a person's welfare. Countries

with higher GDP may be more likely to also score highly on other measures of welfare, such as

life expectancy. In addition, other measures of welfare such as the Human Development Index

(HDI), Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), gross

national happiness (GNH), and sustainable national income (SNI) are also used.

Purchasing Power Parity (PPP)asks how much money would be needed to purchase the same

goods and services in two different countries, and uses that to calculate an implicit foreign

exchange rate. Using that PPP rate, an amount of money thus has the samepurchasing power in

different countries.

One of the most common uses of PPP is in lessening the misleading effects of shifts in a national

currency. This is particularly an issue when calculating a nation's Gross Domestic Product

(GDP)

The Big Mac Index (first published in The Economist) is an informal way of measuring the

purchasing power parity (PPP) between two currencies. The Big Mac was chosen because it is

available to a common specification in many countries around the world thus enabling a

comparison between many countries' currencies.

The Big Mac PPP exchange rate between two countries is obtained by dividing the price of a Big

Mac in one country (in its currency) by the price of a Big Mac in another country (in its

currency). This value is then compared with the actual exchange rate; if it is lower, then the first

currency is under-valued (according to PPP theory) compared with the second, and conversely, if

it is higher, then the first currency is over-valued. Similarly, we also have the Starbucks Tall

Latte Index.

Exchange-rate regime

The exchange-rate regime is the way a country manages its currency in relation to othercurrencies and the foreign exchange market. To understand this, we must look at the various

policy actions of the Central Bank (RBI for India, The Federal Bank for the US)

Fiscal policy: is the use of government expenditure and revenue collection (taxation) to

influence the economic activity. Monetary policy on the other hand, attempts to stabilize the
http://en.wikipedia.org/wiki/Purchasing_powerhttp://en.wikipedia.org/wiki/Purchasing_power

8/12/2019 Wat-pi Primer 2014

12/26

8/12/2019 Wat-pi Primer 2014

13/26



What is Statutory Liquidity Ratio (SLR)?

SLR indicates the minimum percentage of deposits that the bank has to maintain in form of gold,

cash or other approved securities. Thus, we can say that it is ratio of cash and some other

approved securities to liabilities (deposits). It regulates the credit growth in India.

What are Repo and Reverse Repo rates?

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks against

securities. If banks are short of funds they can borrow rupees from the Reserve Bank of India

(RBI) at the repo rate, the interest rate with a 1 day maturity. When the repo rate increases

borrowing from RBI becomes more expensive.

Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the RBI.

The banks use this tool when they feel that they are stuck with excess funds and are not able toinvest anywhere for reasonable returns. This reverse repo rate is always lower (by a 100 basis

points or 1 per cent) than the repo rate.

Thus, we can conclude that Repo Rate signifies the rate at which liquidity is injected in the

banking system by RBI, whereas Reverse repo rate signifies the rate at which the central bank

absorbs liquidity from the banks

Currently, the repo rate is 8.5%

Now that we are clear about these, lets come back to the exchange rates.

The basic types are, a floating exchange rate, where the market dictates movements in the

exchange rate; a pegged float, where a central bank keeps the rate from deviating too far from a

target band or value, via the policy actions we have discussed above; and a fixed exchange rate,

which ties the currency to another currency, mostly more widespread currencies such as the U.S.

dollar or the euro or a basket of currencies. Before the 1970s fixed exchange rate systems were

followed. Today, the market determined floating exchange rates are the norm[1]

.

Inflation and Related terms:

In economics, inflation is a rise in the general level of prices of goods and services in an

economy over a period of time. When the general price level rises, each unit of currency buys

fewer goods and services. Consequently, inflation reflects erosion in the purchasing power of

money

8/12/2019 Wat-pi Primer 2014

14/26

8/12/2019 Wat-pi Primer 2014

15/26



8/12/2019 Wat-pi Primer 2014

16/26

8/12/2019 Wat-pi Primer 2014

17/26



o Convertible bond: Is generally issued at an interest rate lower than the marketrate. It contains a provision whereby the holder can convert the bond into a specified number of

common shares at a specified price.

Money Market:

Money market refers to the market where large corporations and government raise short term

money by selling various debt instruments. Similar to capital market, money market also has a

primary as well as secondary market. The main purpose of money market is to enable

corporations to raise money for their short term needs to get through seasonal business cycles or

for other purposes. Money market is treated as a safe place because of high liquid nature of

securities and their short maturities. Unlike capital market, individual players dont invest in

money market as the value of investments is large.

Money Market Instruments

Treasury Bills (T-Bills): T-Bills are short term borrowing instruments of the centralgovernment of the country issued through the central bank (RBI in India). They are virtually zero

risk instruments, and hence returns are not so attractive. Another use of these instruments is to

absorb liquidity from the market by contracting money supply.

Commercial Paper: Commercial paper is a short term unsecured promissory note issuedby corporate and financial institutions at a discount to its face value. They yield higher returns ascompared to T-Bills as they are relatively less secure. Only firms with high credit ratings will

find buyers without offering any substantial discounts. Commercial papers are actively traded in

secondary market.

Certificate of Deposit (COD):COD is a promissory note issued by a bank in form of acertificate entitling the bearer to receive interest. The returns are higher than T-Bills because it

assumes higher level of risk.

Derivatives: A derivative is a financial instrument which doesnt have a value of its own,but derives its value from some other asset, which is called as an underlying asset. Derivatives

are tools to reduce a firms risk exposure, the process is known as hedging. Forwards and

Futures are simple derivatives while Optionsand Swapsare more complicated ones.

8/12/2019 Wat-pi Primer 2014

18/26



Forwards: A forward contract is an agreement between two parties to buy/sell theunderlying asset at a predetermined future date for a price that is specified today. It is susceptible

to counter party risk.

Futures:A future contract is a forward contract formally traded on organized exchanges.It is traded in large values in regulated environment and almost free of counter party risk. Like

forward contracts, future contracts are obligations for buyer and seller. Most common financial

futures arestock futuresand index futures.

Options: An option is a right to the holder but not an obligation to buy or sell theunderlying asset at a specified exercise price at a specified date in future. There are three parties

to an option: writer (seller), holder (buyer) and the exchange. There are two types of options:

Call option is an option to buy and Put option is an option to sell.

Swaps: A swap is an agreement between two parties to exchange cash flows over aperiod of time. Two most popular swaps are currency swaps and interest rate swaps. Currency

swap involves an exchange of cash payments in one currency for cash payments in another

currency. Interest rate swap allows a company to borrow capital at fixed (or floating) and

exchange its interest payments with interest payments at floating rate (or fixed rate).

Some other finance terms:

Venture capital (VC): It is a means of equity financing for rapidly growing privatecompanies. It comes under private equity market. VC provides the finances for the start-up,

supporting research & development, expansion of a growing private company. The venture

capitalist is the general partner and makes all the investment decisions for the firm. He receives a

profit share (usually 25%) and a management fee (usually 2% of the fund).

Initial Public Offering (IPO) and Follow on Public OFFERING (FPO): The basicdifference between Initial Public Offer (IPO) and Follow on Public Offer (FPO) is as the names

suggest IPO is for the companies which have not listed on an exchange and FPO is for the

companies which have already listed on exchange but want to raise funds by issuing some more

equity shares. IPO is the first stock sale of the company to the public. Usually, companies come

up with an FPO to restructure their business (Debt and Equity) or to raise funds for newbusinesses.

Rights Issue:An issue of common stock to the existing shareholders of the company isknown as rights issue. This privilege extended to existing shareholders is known as preemptive

right. Rights can be exercised within a stipulated time, after which they expire.

8/12/2019 Wat-pi Primer 2014

19/26



Frequently Asked Questions

What are the typical roles of a financial manager?

A financial manager is responsible for providing financial advice and support to colleagues and

clients so as to enable them to make sound business decisions. The role of financial manager ismore than simple accounting; it is multifunctional. Typical roles and titles: Controller, Treasurer,

Risk Manager, Credit Manager, Cash Manager, etc. For more details, please

visithttp://www.qfinance.com/balance-sheets-checklists/defining-the-financial-managers-role

Is CFA needed before starting MBA?

CFA is not at all a prerequisite for doing MBA. Not having a CFA certification is not a

disadvantage for any candidate applying for MBA.

Is work life balance always compromised for a finance manager?

There are some profiles like investment banking which demand high amount of employees ti me

over work, but most of other profiles like corporate finance allow you to have a work life balance

as any other manager in marketing or operations profile would have.

Is finance a glorified version of mathematics or does it demand some subjective analysis

too?

It is a normal misconception that a finance manager would always be working with numbers. A

finance manager must understand all the aspects of business so that they can adequately advise

the senior management in strategic decision making.
http://www.qfinance.com/balance-sheets-checklists/defining-the-financial-managers-rolehttp://www.qfinance.com/balance-sheets-checklists/defining-the-financial-managers-role

8/12/2019 Wat-pi Primer 2014

20/26



8/12/2019 Wat-pi Primer 2014

21/26



5. MARKETINGFinancial success of an organization often depends on how it markets its products and, more

importantly, the organization itself. For a firm to make profit or, what they call, meet its bottomline there must always be a top line. The American Marketing Association defines Marketing as

the activity, set of institutions, and processes for creating, communicating, delivering, and

exchanging offerings that have value for customers, clients, partners, and society at large. In

layman terms, marketing is the art of identifying and anticipating consumer needs and satisfying

them by delivering the goods and services that they value eventually achieving the objectives of

the firm and of the society. Marketing is everything a company does to acquire and retain a

customer.

What does the job of a typical marketer entail?

A marketers job is to study the market and determine the best way to reach the customers

profitably. It begins with working with the rest of the company to determine the prospective

product needs of the customer which involves research and planning. It is followed by the vital

task of marketing the product to the end consumer profitably. This involves delivering the

products value to the customer through advertising and selling. A career in marketing often

starts from a sales profile as it is the only platform to understand the customer and his needs, up

close and personal.

Marketing concept:

A simple but important idea that firms follow, marketing concept implies that an organization

aims all its efforts at satisfying its customers profitably.

What is the difference between marketing and sales?

Marketing is not the art of selling products. In fact, the aim of marketing is to understand the

customer so well that the product fits him and sells itself, thus making selling superfluous.

Selling then remains as only the tip of the marketing iceberg!

Marketing Sales

Marketing is everything that a firm does to

reach its customers and to generate leads.

Selling is everything a firm does to influence a

customer to buy a product of service, or inother words, close the sale.

Marketing is often a longer process of buildinga brand for the product and the company. It

involves finding the right product for satisfying

the customers needs.

Selling is the short term process of matchingthe right customer to the value offered.

8/12/2019 Wat-pi Primer 2014

22/26



What is the difference between advertising and marketing?

The institute of Practitioners in Advertising (IPA), the body which represents advertising

agencies, defines advertising as the means of providing the most persuasive possible selling

message to the right prospects at the lowest possible cost.

At the most fundamental level, marketing differs from advertising in that marketing is to create a

product that would satisfy prospective customer demands. The role of advertising, on the other

hand, is to create a demand for an existing product.

What is a brand?

In Principles of Marketing, by Philip Kotler and Gary Armstrong a brand is defined as a name,

term, sign symbol or a combination of these, that identifies the maker or seller of the product. A

Brand is an offering from a known source. All companies strive to build a strong, favorable andunique brand.

What is the difference between price, value and satisfaction?

Value reflects the sum of perceived tangible and intangible benefits and costs to customers.

Value increases with quality and decreases with price. However, other factors can also play a

vital role in our perceptions of value. Satisfaction reflects a persons judgments of products

perceived performance in relation to expectations.

What are the four Ps of marketing?

The four Ps, often synonymous with the marketing mix, entails price, promotion, product

and place. The four Ps have expanded to the seven Ps with the recent addition of process,

physical evidence and people. This tool is vital in determining a brands unique selling point.

Note: A candidate is not expected to know the exact definitions but is required to understand the

concept behind each of these terms. This note has been prepared with the aim of providing an

exhaustive coverage of the same. The candidate however should concentrate on having plausible

answers for a few (indicative but not exhaustive) questions substantiating his interest in

marketing.

Why are you interested in Marketing and (or) sales? How would you connect your graduation background with a prospective career in marketing? Which brand/product/advertisement has left a lasting impression upon you? Why do you think you would suit a marketing profile?

8/12/2019 Wat-pi Primer 2014

23/26



8/12/2019 Wat-pi Primer 2014

24/26



6. OPERATIONS MANAGEMENTWhat is Operations Management?

Operations Management (OM) deals with management of the firms operations to produce/offergoods/services. In simple terms, it is the study of how a manager can make the business

operation more efficient (in terms of resources used) and how he can make it more effective (in

terms of creating value to the customer).

The operations function is one of the 3 primary functions within a business, the other two being

finance and marketing.

What are the main topics covered in OM?

Some of the main topics covered in OM are - Product and Process Design, Capacity Planning,

Demand forecasting, Inventory management, Production Scheduling and Control, Quality

Management, Project Management, Services Management, Supply chain management and

Strategy in operations.

What is the difference between goods and services?

The essential difference between services and goods is that a service is an intangible process,

while a good is the physical output of the process. For example, a shop floor that manufacturesplastic bottles provides goods while a bank that is issuing a loan to its customer is providing a

service.

What is a production process?

A production system is defined as a user of resources to transform inputs into some desired

output. For a plant that manufactures tyres, raw material, labour and capital can be inputs while

the finished rubber tyre will be the output. The steps through which the raw material is converted

into a finished good can be referred to as the process.

A simple parameter to measure efficiency of a process is productivity. In a broad sense,

productivity is the ratio of goods/services produced to resources used (output to input).

8/12/2019 Wat-pi Primer 2014

25/26



Bottleneck

A bottleneck is defined as any resource whose capacity is less than the demand placed on it. A

bottleneck is a constraint within the system that limits the rate of flow of output. A bottleneck is

often created in a process when capacity is constrained.

The primary objective of a manager in the operations department is to eliminate the bottleneck

that exists in the process. By removing this inefficiency, the manager can increase profits by

reducing time to produce.

Inventory Management

An inventory is the stock of an item or a resource used by an organization. Many companies

have wide ranging inventories such as pencils, paper clips, machines, computers etc. Inventory is

maintained to prevent a risk of shortage or to increase flexibility in the operations process.Sometimes, companies build inventory to reduce the cost incurred while ordering. By ordering a

large amount of stock, the company might get a discount from its vendor. This saves total input

cost and hence creates profits. At the same time, the operations manager has to ensure that the

cost incurred for holding the inventory is not too high. For example, a company which sells fruits

cannot order in bulk and avail discounts as the fruits might require an expensive storage facility

to keep them fresh.

Planning and forecasting -

As an operations manager, material requirement planning or demand estimation needs to be done

on a regular basis. This is to ensure that the company meets the customers requirements within

time. The plans may be short-range plans (less than 3 months) or long range plans (over 1 year).

Efficient planning will lead to reduction in costs due to sudden variations in demand. Planning

and scheduling is a popular exercise undertaken by companies that manufacture seasonal

products.

FAQs

What are the typical roles of a manager in the Operations department?Some of the important roles are production control, quality assurance, purchasing, inventory

planning and control, supply chain management and logistics.

8/12/2019 Wat-pi Primer 2014

26/26


Do Operations Managers always work in factories?No. There are several service related companies which hire managers to handle their operations.

Operations Managers are hired in sectors such as banking, transportation, insurance,

communication and many others.

Is it true that profiles given in Operations are usually mundane and repetitive, andthat the salaries offered are very low?

Any role offered will be mundane if the candidate does not have an interest in pursuing it. The

same holds true for Operations. The salaries offered are not always low and are often comparable

to those offered in other functions.

How is the role of an Operations Manager different from that of a GeneralManager?

Here is a good link that will answer the above question-

http://www.operationsmanager.com/operations-manager-roles-in-the-company/difference-

between-operations-managers-and-general-managers/

What are the traits required to be successful as a manager in Operations?

Basically, one needs to have a good understanding of the process. A flair for number-crunching

and data analysis would be an added bonus. But most of all, an interest in the field is crucial.

Tip- Go through the subjects like Industrial Engineering if taught to you. If not, you only need

to know why you are interested in Operations Management, some related concepts to your work

(if relevant) and why you want to shift to a career in Operations.

References

Operations Management for Competitive Advantage by Chase, Jacobs and Aquilano Reading on Zeroing in on Operations
http://www.operationsmanager.com/operations-manager-roles-in-the-company/difference-between-operations-managers-and-general-managers/http://www.operationsmanager.com/operations-manager-roles-in-the-company/difference-between-operations-managers-and-general-managers/http://www.operationsmanager.com/operations-manager-roles-in-the-company/difference-between-operations-managers-and-general-managers/http://www.operationsmanager.com/operations-manager-roles-in-the-company/difference-between-operations-managers-and-general-managers/

Wat-pi Primer 2014

Documents

Transcript of Wat-pi Primer 2014