project presentation on replcement
TRANSCRIPT
Project on
Replacement
Presented By: Abhishek Singh
Kshitiz Srivastava
ContentTopic of the Project
Company Profile
Objective of the Project
Methodology
Data collection and Analysis
Conclusion
References
Topic of the Project
Replacement of Computer System in ACCMAN INSTITUTE OF MANAGEMENT
ACCMAN INSTITUTE OF MANAGEMENT
Founded in the Year 2003 by
BALIBHADRA FOUNDATION - a New Delhi
based educational trust, promoted by a
group of visionary and leading practicing
professionals with a mission of providing
high quality, relevant, career-oriented,
Industry focused tailor-made business
programmes at an affordable cost.
FOUNDATION
ACCMAN INSTITUTE OF MANAGEMENT
Situated at - 46A/2, Knowledge
Park – III, Greater Noida, G B Nagar,
PIN - 201308 (U.P.)
Contact details - Telephone: 0120 – 2323800 -
02 Fax: 0120-2323805 E-Mail:
ACCMAN INSTITUTE OF MANAGEMENT
Constructio
n work in
Progress.
In January
2005.
ACCMAN INSTITUTE OF MANAGEMENT
Constructio
n
work at
completion
stage,
June 2006.
ACCMAN INSTITUTE OF MANAGEMENT
Opening
year
2006
Front Office
ACCMAN INSTITUTE OF MANAGEMENT
(Hon’ble Chairman)
Dr. K B L
Mathur
Former
Chief
Economic
Advisor,
Govt. of
India.
Prof. B D SINGH
Ex. Chairman
NALCO, Sr. Prof
at IMT
Ghaziabad.
Shri Jaspal
Rana,
Arjuna &
Padam- Shree
Awardees and
Gold Medalist
in Asian &
Common
wealth Games
Prof. Rajiv
Singh FCA ,
Senior faculty
and Member,
Board of
Governors,
ACCMAN
Institute,
praising the
anchor of the
programme
Shri Aseem Chawla,
Partner Amarchand & Mangal Das & Suresh Shroff & Co.
Member Executive Committee of Income Tax Appellate Tribunal
2007: In the very first year of the placement 35 companies visited the institute for the batch of 60 students.
2008: Institute increases the seats of PGDM from 60 to 120.
2009: Institute got the permission of running PGDM-Marketing course from the All India Council of Technical Education merely 4 years after their establishment.
2010: Institute ranked 7th position in NCR region and 1st position in Greater Noida in a survey conducted by a prestigious magazine Business Chronicle.
Achievement of the Institute on the Scale of Time Period:
Failures
Sudden failure
Progressive failure
Retrogressive failures
Gradual failure Random failures
Objective of the Project
Analyze the condition of Computer Lab.
Replace the computer System, If needed.
Replacement due to :-
METHODOLOGY
Replacement is a method of measuring job performance of units such as men, machines, equipment etc., less effective so that by replacing them with new ones at frequent intervals, maintenance and other overheads costs can be reduced.
MODEL 1:-
Replacement policy for items whose running cost increase with time and value of money remain constant during a period.
To Find the Best Replacement Age (Time) of a Machine When • Its maintenance cost is given by a function
increasing with time.• Its scrap value is constant and• The Money value is not considered. Let C = Cost of Machine
S = Scrap value of the machine at time t.and, Cm(t) = Maintenance cost of machine at time t, [Cm(t) increases with t].
Case 1 : When time ‘t’ is a continuous variable.
n
dttCSC
tC
n
m
m
0
)(
)(
Case 2 : When time ‘t’ is a discrete variable.
)1()(
)()(1
nAtC
nAtC
n
n
we conclude that- • Do not replace if the next years maintenance cost
is less than the previous years average total cost.
• Replace if the next years maintenance cost is greater than the previous years average total cost.
Data collection and analysis
Total number of system = 60 @ Rs.18000 per system.
Purchased on 30th July 2006. Two Computer Attendant with salary Rs.4000
each. Two Lab Assistant with salary Rs. 6000 each. Electricity : One system consumes 250W electricity. 1 unit electricity cost is Rs. 3.69. System uses for 8 hrs. daily.
Year 2006-07 2007-08
2008-09 2009-10 2010-11 2011-12
Labor cost 2,40,000 2,40,000
2,40,000
2,40,000 2,40,000
2,40,000
Electricity cost
1,61,622 1,61,622
1,61,622
1,61,622 1,61,622
1,61,622
Wear/tear &
Upgradation cost
1000 4000 10,000 18,000 25,000 32,000
Total cost 402622 405622 411622 419622 426622 433622
Yearly Total Maintenance cost –:
YearOf
Service(n)
Running Cost(Rs)
(1)
Cumulative Running
Cost(Rs)
(2)
Resale value(Rs)
C-S
(3)
TotalCost(Rs)
TC
4=2+3
Average Cost(Rs)
ATCn
5
2006-07 402622 402622 4,32,000 8,34,622 8,34,622
2007-08 405622 808244 1,72,800 9,81,044 4,90,522
2008-09 411622 1219866 69,120 12,88,986 4,29,662
2009-10 419622 1639488 27,648 16,67,136 4,16,784
*2010-11 426622 2066110 9953 20,76,063
4,15,212
2011-12 433622 2499732 3981 25,03,713 4,17,285
)(nCm )(nCm
Calculations of Average Running Cost for System
The calculations in table show that the average cost is lowest during the 2010-11 year. Hence, the machine should be replaced after fifth year, otherwise the average cost per year for running the machine would start increasing.
Recommendation
If we use a new configuration system we could even increase the replacement year with low maintenance cost.
Configuration TFT monitor 15’’ 2GB RAM 160 GB Hard disk DVD ROM Inter original Mother
board Multimedia keyboard Optical Mouse
Assumed Data:
Total no of System 60. Cost of one System 20,000 Rs. One System consume 150W.
Other things are same as previous .
Year 1 2 3 4 5 6 7 8
Labor cost 2,40,000
2,40,000
2,40,000
2,40,000
2,40,000 2,40,000
2,40,000
2,40,000
Electricity cost 96973 96973 96973 96973 96973 96973 96973 96973
Wear/tear &Upgradat
ion cost
500 1000 2000 2500 3000 3500 4000 5000
Total cost 3,37,473
3,37,973
3,38,973
3,39,473
3,39,973 3,40,473
3,40,973
3,41,973
Yearly Total Maintenance cost-:
YearOf
Service(n)
Running Cost(Rs)
Cumulative Running Cost
(Rs)
ResaleValue(Rs)C-S
TotalCost(Rs)TC
Average Cost(Rs)ATCn
1 3,37,473 3,37,473 480000 817473 817473
2 3,37,973 675446 192000 867446 433723
3 3,38,973 1014419 76800 1091219 363740
4 3,39,473 1353892 30720 1384612 346153
5 3,39,973 1693865 12288 1706153 341231
6 3,40,473 2034338 4915 2039253 339875
*7 3,40,973
2375311 1966 2377277 339611
8 3,41,973 2717284 786 2718070 339759
)(nCm )(nCm
Calculations of Average Running Cost for new machine
Conclusion
From this project we came to the conclusion that after a certain period of time each and every machine deteriorates and it needs to be replaced by the new one for minimizing the maintenance cost.
For this purpose Replacement Theory proves to be the best Management Science Tool.
References
Books: Operation Research By: J.K. Sharma
Operation Research By: M.P. Gupta Website: www.operationresearch.com www.accman.co.in
Special Thanks To:
Prof. B.K .Soam
Mr. Avnish Sheth
Mr. J.S. Rana
Mr. Srikanth VS
THANKYOU