Monday 16 March 2015

sc008 smu mba Winter 2014 IVth sem assignment

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DRIVE WINTER 2014
PROGRAM/SEMESTER MBADS (SEM 4/SEM 6)
MBAFLEX/ MBAN2 (SEM 4)
PGDSCMN (SEM 2)
SUBJECT CODE & NAME SC0008 –PURCHASING AND CONTRACTING FOR
PROJECTS
BK ID- B1663
CREDITS AND MARKS- 4 CREDITS AND 60 MARKS
Q1. Briefly explain contractor managed risk contracts. (Explanation of the 4 contractor managed risk contracts) 10 (2.5 marks each)
Answer: Contractor Managed Risk Contracts: We will now discuss the contract types that fall under contractor managed risk category. Contractor managed risk contracts are supposed to be quite expensive due to higher allowances for risk and escalation. This also includes higher profit margins to compensate the contractor for the risks that they take. As in this type of contract, the project is competitively tendered; the contractor would be seeking ways to recover the costs mainly if the client


Q2. Describe any four methods of discharging a contract. (Description of any four methods of discharging a contract) 10
Answer: Discharge of a Contract: Ending a contractual relationship between the parties is referred to as discharge of a contract. A contract gets terminated when the specified rights and obligations come to an end. Discharge of a contract takes place in different methods. The following are the methods in which a contract can be discharged:

Agreement: If the parties involved in a contract agree to terminate the contract there is no way to stop


Q.3. Assume that you are looking out for a contracting company for the construction of a hospital. You decide to draft a PQQ to all the proposed tenderers. Which questions you would include in the PQQ? ( Writing the question, Justifying the need to include the question in the PQQ) 5,5
ANS: Writing the question:
Question - Please confirm that your company will submit a tender in accordance with the proposed contracting strategy and in accordance with the attached terms.

Question - Describe your capabilities, experience and resources with ABC technology.

Q4. Discuss the issues in contractual appraisal. (Listing and explanation of the issues in contractual appraisal) 10
Answer: Contractual appraisal: Let us now discuss more about these issues.

Documents signed - In a hurry to submit a tender this aspect sometimes gets overlooked. If the tender has to be a valid offer, then an authorized signatory or office of the company has to sign the tender.

Validity


Q.5. Attractive Incentive Scheme
OP is a major oil company that had a massive blow-out in one of its oil wells. Oil was flowing out and polluting a major river in an environmentally sensitive area. Only a few companies in the area had equipment suitable to plug the well. OP’s director had a brief discussion with one of the companies that specialised in plugging the leak. This leak had posed a major environmental risk. Hence, the issues that needed to be considered here were urgency, duration of the work and availability of suitable contractors. If the leak was not plugged at the earliest it would seriously affect the public’s perception of the company. As the situation had to be rectified at the earliest the company had to choose contractors in the nearby location. Most contractors viewed the situation as an opportunity to make money. The oil company’s director had noticed this in his discussion with the first company. However, in this situation the oil company had to seek a solution that satisfied the contractor’s objective to make money and the company’s aim of getting the work done quickly. The offer for the contract was such that the contractor would be paid at the standard rates for normal work, together with an incentive scheme. Conversely, the two tasks, plugging the well and cleaning up, had to be treated independently. The offer also stated that if the oil leak was stopped within an hour a very high bonus would be paid, and the longer it takes the bonus would be reduced on an hourly basis. If the time taken was unacceptable, the bonus would be reduced to zero and only the standard rate as agreed for the work would be paid. The bonus offered was sufficiently high in order to make the task seem worthwhile. The clean-up work was also based on a similar incentive formula but with a daily, rather than an hourly, time schedule. By providing a high incentive the company was able to get the well plugged in one day and the clean-up in 23 days. Source: Ward, G. (2008). The Project Manager's Guide to Purchasing: Contracting for Goods and Services. Great Britain: Gower Publishing Limited.)
What contract and payment terms should be negotiated? What should be the base criteria for formulating the incentive scheme? ( Analysis with respect to incentive mechanisms, Interpretation with respect to negatives of cost incentives) 5,5
ANS:  Incentive Mechanisms: Incentives are external measures that are designed and established in order to influence motivation and behaviour of individuals, groups or organisations. There are many incentive systems or mechanisms and they are a combination of several coherent incentives. An incentive strategy should be developed by the client as part of the payment strategy. However, the


Q6. “Irregularities in Supply Chain causing massive losses
June 14, 2012
Adidas, Walmart and now Britannia! All have witnessed irregularities in their companies and they all owe it to their employees. While Third party players are also to be blamed, it is the employees that gave them the opportunity to carry our fraudulent activities.
As per the Global Retail Theft Barometer 2011, India accounts for the highest retail shrinkage which stands at 2.38 per cent of sales. Dishonest employees account for 53 per cent of the total shrinkage in the Asia- Pacific belt. However, when we speak of such retail shrinkage it deals with them stealing off retail shelves. But, here the stealing moves beyond the store floors and are recorded mostly in the supply chain process.
At Britannia, certain irregularities have been established wherein employees engaged with some suppliers to play with orders. It was swift in looking into the matter and scrutiny is already underway. According to sources, some of the employees have been asked not to return to work unless the investigation is done with. Speculation says 28 of them have already been fired.
Walmart in Mexico, was accused of bribing government officials in most of the provinces it was operating it. To avoid the same at other locations across the globe, the company has initiated a drive to check on the vendors and suppliers for any irregularities. KPMG has also been brought on board to point out any unethical activities by its vendor’s, post which, it will shatter all ties with those who will be guilty. KPMG will put all vendors in three categories, red indicating the black listed ones, green for those who will come all clean and amber for those who may be suspicious and Walmart would take a call on whether to continue or snap ties with them. Also a programme about anti-corruption practices is being run within the company.
Adidas as we all know was led in to the Rs 870 crore scam by Subhinder Singh Prem and Vishnu Bhagat. Here also irregularities were witnessed in the supply chain course. Shoes and other sporting goods were diverted from the Adidas supply chain progression and kept in four secret warehouses The point of discussion is: Who is to be blamed? Is it the employees or the Three Party Players? Well, it’s both, but in different degrees. Employees were the ones who initiated the fraudulent activity, while the 3PL players were the ones who led it to its final fate. The ticker though points more towards the employees because they are the ones who let out the confidential information about the brand. They are abusing their authority to full-fledged use of suppliers and vendors.
Another thing which strikes out in all these three scams is that they have been carried out in the supply chain process. Is it so easy to break the supply chain process? Should the entire supply chain be blamed or are just some elements corrupt? Outsourcing the supply chain or having an in-house one is not the question, making it fool proof is what needs to be done. Also with the economic slump, the profit margins are already shrinking for retailers and they need to police their processes really well to sustain in the retail marketplace.
The need of the hour is initiatives to increase a sense of belonging in employees and is what brands should work towards before it’s too late! This is a wake- up call for all retailers and manufacturers so as to not be in a regretful situation later.”

Identify the issues in bribery and corruption? What are the measures that the government and companies should take to avoid corruption? (List the bribery and corruption issues for each company from the article , Summarization of the issues in general , Mention the measures that can be used to avoid corruption) 10

Answer: Bribery and Corruption: Corruption can be defined as an illegal act on the part of an authority or powerful political party through means that are illicit, immoral, or incompatible with ethical standards. We often find that corruption is a result of patronage. Corruption is closely associated with bribery. Bribery is defined by Black’s law dictionary as the offering, giving,


Get fully solved assignment. Buy online from website
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we will revert you within 2-3 hour or immediate
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if urgent then call us on 08791490301, 08273413412


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