Answer to MTP_Intermediate_Syllabus2012_Dec2014_Set 1

Paper 9 - Operations Management & Information System

Full Marks: 100 Time allowed-3hrs

This paper contains 3 questions. All questions are compulsory, subject to instruction provided
against each question. All workings must form part of your answer. Assumptions, if any, must be
clearly indicted.

Question No. 1 : Answer all questions. [20 marks]

1. (a) Explain the term Pacing. 2

(b) Define Order control. 2
(c) Define Forecast Error. 2
(d) State the principles of Total Quality. 2
(e) A workshop has 30 nos. of identical machines. From the failure pattern of the machines it
is calculated that the expected time before failure is 3 months. It costs `200 to attend a
failed machine and rectify the same. Compute the yearly cost of servicing the broken
down machines. 2
(f) Write a note on Modularity. 2
(g) Define Representational data models. 2
(h) List the measures of a JIT system’s reliability. 2
(i) State the basic characteristics of Business Process Re-engineering. 2
(j) Define Asymmetric Crypto System. 2

Answer:

(a) Pacing refers to the fixed timing of the movement of items through the process. In a serial
process, the movement of items through each activity (or stage) is often paced in some
mechanical way in order to to coordinate the line.

(b) The most, common type of production control is called order control. This type of control is
commonly employed in companies with intermittent production systems, the so-called job-
lot shops. Under this method, orders come into the shop for different quantities for different
products. Therefore, production planning and control must be based on the individual
orders.

(c) Forecast error is the numeric difference between the forecasted and actual demand. It is
desirable that the difference between forecasted and actual demand is low as possible.
There are two measures of error – (i) Mean Absolute Deviation (MAD) and (ii) Bias.

(d) Principles of Total Quality

 Focus on the customer (Both Internal & External)
 Participation and Team work
 Employee involvement and empowerment
 Continuous improvement and learning.

(e) No. of repair/machine/annum =12/3= 4

Considering 20 machines and `200 to attend a failed machine, the yearly cost of servicing =
30 x 4 x `200 = `24,000.

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(f) A module is a manageable unit containing data and instructions to perform a well-defined
task. Modularity is measured by two parameters Cohesion and Coupling. Cohesion refers to
the manner in which elements within a module are linked. Coupling is a measure of the
interconnection between modules. In a good modular design, cohesion will be high and
coupling will be low.

(g) Representational or implementation data models are the models used most frequently in
traditional commercial DBMSs, and they include the widely-used relational data model, as
well as the so-called legacy data models- the network and hierarchical models-that have
been widely used in the past. Representational data models represent data by using record
structures and hence are3 sometimes called record-based data models.

(h) Some measures of a JIT system‟s reliability are

 Defect rates
 Cycle times
 Percent of time that deliveries are on time
 Order accuracy
 Actual production as a percent of planned production
 Actual machine time available compared to planned machine time available

(i) Some of the basic Characteristics of Business Process Re-engineering are:

 View business as a set of customer (both internal and external) oriented processes rather
than a set of departmental functions.
 Processes must have clear cut ownership
 Non value adding activities within a process should be eliminated
 Gather information only once at the point of origin.

(j) Asymmetric Crypto System means a system of a secure key pair consisting of a private key
for creating a digital signature and a public key to verify the digital signature.

Operation Management

Answer any three questions

2. (a) (i) Describe the factors influencing Product Design. 5

(ii) ‘Loss of pride in workmanship exists throughout organization.’- Justify. 3
(iii) Define the term Competitive Benchmarking. 2
(iv) H Industries is planning to set up a new plant. Following is a table showing alternative
locations and respective costs (in `)
Costs Location Location Location Location Location
1 2 3 4 5
Transport,` per unit of production 1.00 1.50 1.35 1.65 1.70
Power, ` per unit of production 1.25 0.65 1.05 1.20 0.75
Investment in Land* 50 lakhs 35 lakhs 40 lakhs 20 lakhs 30 Lakhs
Building Construction* 130 lakhs 110 lakhs 120 lakhs 90 lakhs 100 Lakhs
Equipment (capital cost), ` per unit
of production volume 2.50 2.80 2.00 3.00 4.50
Location Taxes, etc. 10 lakhs 8 lakhs 12 lakhs 9 lakhs 20 lakhs
Wages (average),` per unit of
production 0.90 1.00 1.40 0.90 0.80

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*to be costed at 15% per annum

If the volume of production is to be 5,00,000 units, what is the preferred location? If
the volume is expanded to 7,00,000 units, would the decision change? 6

(b) (i) Discuss the consequences of Industrial Automation. 4

(ii) The Everalert Ltd, which has a satisfactory preventive maintenance system in its plant,
has installed a new Hot Air Generator based on electricity instead of fuel oil for drying
the finished products. The Hot Air Generator requires periodic shutdown
maintenance. If the shutdown is scheduled yearly, the cost of maintenance will be as
under:
Maintenance cost ` 15,000 ` 20,000 ` 25,000
Probability 0.30 0.40 0.30
The costs are expected to be almost linear i.e. if the shutdown is scheduled twice per
year, the maintenance cost will be double.
The probability distribution of breakdown cost is estimated as under:

Breakdown costs per annum ` 75,000 ` 80,000 ` 1,00,000

Shutdown once a year 0.20 0.50 0.30
Shutdown twice a year 0.50 0.30 0.20
Stimulate the total costs - maintenance and breakdown - and recommend whether
the shutdown should be resorted once or twice a year.
Random numbers
Maintenance costs (shut down once a year) 27, 44, 22, 32, 97
Maintenance costs (shut down twice a year) 42, 04, 82, 38, 91
Breakdown costs (shut down once a year) 03, 50, 73, 87, 59
Breakdown costs (shut down twice a year) 54, 65, 49, 03, 56

(c) (i) A company has four zones open and four marketing managers available for
assignments. The zones are not equal in sales potentials. It is estimated that a typical
marketing manager operating in each zone would bring in the following annual
sales:
Zones East West North South
Sales (`) 2,40,000 1,92,000 1,44,000 1,20,000
The four marketing managers are also different in ability. It is estimated that working
under the same conditions, their yearly sales would be proportionately as under:
Manager M N O P
8 7 5 4
If the criterion is maximum expected total sales, find the optimum assignment and
the maximum sales. 12
(ii) List the programmes included in Preventive Maintenance schedule 4

(d) (i) Draw the network for the following activities and find critical path and total duration
of project:
Activity Dependence Duration Activity Dependence Duration
(days) (Days)
A - 6 G C, D 3
B - 3 H E 5
C A 5 I C ,D 5
D A 4 J G,H 2

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E B 3 K F 3
F B 2 L J,K 2
10
(ii) Discuss how Bench trending differs from Bench Marking? 6

Answer:

(a) (i) Factors Influencing Product Design

1) Customer requirements: The designers must find out the exact requirements of the
customers to ensure that the products suit the convenience of customers for use. the
products must be designed to be used in all kinds of conditions.
2) Convenience of the operator or user: the industrial products such as machines and
tools should be so designed that they are convenient and comfortable to operate or
use.
3) Trade off between function and form: the design should combine both performance
and aesthetics or appearance with a proper balance between the two.
4) Types of materials used: Discovery of new and better materials can improve the
product design. Designers keep in touch with the latest developments taking place in
the field of materials and components and make use of improved materials and
components in their product designs.
5) Work methods and equipments: Designers must keep abreast of improvements in
work methods, processes and equipments and design the products to make use of
the latest technology and manufacturing processes to achieve reduction in costs.
6) Cost/Price ratio: in a competitive market, there is lot of pressure on designers to
design products which are cost effective because cost and quality are inbuilt in the
design. With a constraint on the upper limit on cost of producing products, the
designer must ensure cost effective designs.
7) Product quality: The product quality partly depends on quality of design and partly
on quality of conformance. The quality policy of the firm provides the necessary
guidelines for the designers regarding the extent to which quality should be built in
the design stage itself by deciding the appropriate design specifications and
tolerances.
8) Process capability: The product design should take into consideration the quality of
conformance, i.e., the degree to which quality of design is achieved in
manufacturing. This depends on the process capability of the machines and
equipments. However, the designer should have the knowledge of the capability of
the manufacturing facilities and specify tolerances which can be achieved by the
available machines and equipments.
9) Effect on existing products: new product designs while replacing existing product
designs, must take into consideration the use of standard parts and components,
existing manufacturing and distribution strategies and blending of new
manufacturing technology with the existing one so that the costs of implementing
the changes are kept to, the minimum.
10) Packaging: packaging is an essential part of a product and packaging design and
product design go hand in hand with equal importance. Packaging design must
take into account the objectives of packaging such as protection and promotion of
the product. attractive packaging enhances the sales appeal of products in case of
consumer products (nondurable).

(ii) Loss of pride in workmanship exists throughout organizations because

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(1) Workers do not know how to relate to the organization‟s mission.

(2) They are being blamed for system problems.
(3) Poor designing leads to the production of “Junk”.
(4) Inadequate training is provided.
(5) Punitive supervision exists.
(6) Inadequate or ineffective equipment is provided for performing the required work.

(iii) Competitive Benchmarking- This type of benchmarking can be carried out on the basis
of product, functions department or on a co. wide basis this is a cross comparison with in
one industrial sector aimed at establishing best practice through the identification of
gaps between your own and your competitors performance.

(iv) For 5,00,000 units production per annum the costs at various sites are:
Costs Location Location Location Location Location
1 2 3 4 5
Transport 5,00,000 7,50,000 6,75,000 8,25,000 8,50,000
Power, 6,25,000 3,25,000 5,25,000 6,00,000 3,75,000
Land 7,50,000 5,25,000 6,00,000 3,00,000 4,50,000
Building Construction 19,50,000 16,50,000 18,00,000 13,50,000 15,00,000
Equipment 12,50,000 14,00,000 10,00,000 15,00,000 22,50,000
Taxes 10,00,000 8,00,000 12,00,000 9,00,000 20,00,000
Wages 4,50,000 5,00,000 7,00,000 4,50,000 4,00,000
Total Cost (`) 65,25,000 59,50,000 65,00,000 59,25,000 78,25,000

Therefore at a volume of 5,00,000 units, Site No. 4 is preferred as it has the lowest total
cost.
For 7,00,000 units production per annum the costs at various sites are:
Costs Location Location Location Location Location
1 2 3 4 5
Transport 7,00,000 10,50,000 9,45,000 11,55,000 11,90,000
Power, 8,75,000 4,55,000 7,35,000 8,40,000 5,25,000
Land 7,50,000 5,25,000 6,00,000 3,00,000 4,50,000
Building Construction 19,50,000 16,50,000 18,00,000 13,50,000 15,00,000
Equipment 17,50,000 19,60,000 14,00,000 21,00,000 31,50,000
Taxes 10,00,000 8,00,000 12,00,000 9,00,000 20,00,000
Wages 6,30,000 7,00,000 9,80,000 6,30,000 5,60,000
Total Cost (`) 76,55,000 71,40,000 76,60,000 72,75,000 93,75,000

Therefore at a volume of 7,00,000 units, Site No. 2 is preferred as it has the lowest total
cost.

(b) (i) Industrial automation results in the elimination of workers‟ jobs; for example robots
replacing welders, painters or NC/CNC machines replacing the machine setters or
operators, AGVs replacing operators driving the material handling equipments and so
on.
But in the long-run automation also creates some new jobs in engineering, selling and
servicing new technology products. Workers need to be trained to occupy new job
positions created by automation. However, some white collar and blue collar workers
may lose their jobs and will have to search for new jobs because not all companies
provide for retention or retraining of displaced workers.

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(ii) Probability Distribution (Maintenance cost)

Cost (`) Probability Cum. Probability Range Range for simulation
15,000 0.30 0.30 0 – 0.30 0 – 0.29
20,000 0.40 0.70 0.30 – 0.70 0.30 – 0.69
25,000 0.30 1.00 0.70 – 1.00 0.70 – 0.99

Probability Distribution (Breakdown cost; shutdown once a year)

Cost (`) Probability Cum. Probability Range Range for simulation
75,000 0.20 0.20 0 – 0.20 0 – 0.19
80,000 0.50 0.70 0.20 – 0.70 0.20 – 0.69
1,00,000 0.30 1.00 0.70 – 1.00 0.70 – 0.99

Probability Distribution (Breakdown cost; shutdown twice a year)

Cost (`) Probability Cum. Probability Range Range for simulation
75,000 0.50 0.50 0 – 0.50 0 – 0.49
80,000 0.30 0.80 0.50 – 0.80 0.50 – 0.79
1,00,000 0.20 1.00 0.80 – 1.00 0.80 – 0.99

Shut down once a year

Maintenance cost p.a. Breakdown cost p.a.
15,00 75,000
20,000 80,000
15,000 1,00,000
20,000 1,00,000
25,000 80,000
Total `95,000 Total `4,35,000
Average `19,000 Average `87,000
Total cost `19,000 + `87,000 = `1,06,000

Shut down Twice a year

Maintenance cost p.a. Breakdown cost p.a.
20,000 × 2 80,000
15,000 × 2 80,000
25,000 × 2 75,000
20,000 × 2 75,000
25,000 × 2 80,000
Total `2,10,000 Total `3,90,000
Average `42,000 Average `78,000
Total cost `42,000 + `78,000 = `1,20,000
Shutdown once a year is recommended on account of lower annual cost.

(c) (i) Let Manager M represents the typical marketing Manager.

Zones ↓ Manager M Manager N Manager O Manager P
East 240 210 150 120
West 192 168 120 96
North 144 126 90 72
South 120 105 75 60

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Opportunities Loss Matrix

Zones ↓ Manager M Manager N Manager O Manager P
East 0 30 90 120
West 48 72 120 144
North 96 114 150 168
South 120 135 165 180

Row minimum operation

Zones ↓ Manager M Manager N Manager O Manager P
East 0 30 90 120
West 0 24 72 96
North 0 18 54 72
South 0 15 45 60

Column minimum operation

Zones ↓ Manager M Manager N Manager O Manager P
East 0 15 45 60
West 0 9 27 36
North 0 3 9 12
South 0 0 0 0

Minimum number of lines

Zones ↓ Manager M Manager N Manager O Manager P
East 0 15 45 60
West 0 9 27 36
North 0 3 9 12
South 0 0 0 0

As the minimum number of lines is not equal to order of matrix, let‟s take step to increase
the number of zeros.
Zones ↓ Manager M Manager N Manager O Manager P
East 0 12 42 57
West 0 6 24 33
North 0 0 6 9
South 3 0 0 0

Minimum No. of lines

Zones ↓ Manager M Manager N Manager O Manager P
East 0 12 42 57
West 0 6 24 33
North 0 0 6 9
South 3 0 0 0

As the minimum number of lines is not equal to order of matrix, let‟s take step to increase
the number of zeros.
Zones ↓ Manager M Manager N Manager O Manager P
East 0 12 36 51
West 0 6 18 27

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North 0 0 0 3
South 9 6 0 0
Minimum No. of lines
Zones ↓ Manager M Manager N Manager O Manager P
East 0 12 36 51
West 0 6 18 27
North 0 0 0 3
South 9 6 0 0

As the minimum number of lines is not equal to order of matrix, let‟s take step to increase
the number of zeros.
Zones ↓ Manager M Manager N Manager O Manager P
East 0 6 30 45
West 0 0 12 21
North 6 0 0 3
South 15 6 0 0

Minimum No. of lines

Zones ↓ Manager M Manager N Manager O Manager P
East 0 6 30 45
West 0 0 12 21
North 6 0 0 3
South 15 6 0 0

As the minimum number of lines are equal to order of matrix, optimal assignment should
be made.
Zones↓ Manager M Manager N Manager O Manager P
East 0 6 30 45

West 0 12 21
0
North 6 0 0 3

South 15 6 0
0

Zones↓ Manager ↓ Sales ↓

East Manager M `2,40,000
West Manager N `1,68,000
North Manager O `90,000
South Manager P `60,000
Total `5,58,000

(ii) The maintenance programme includes the following:

(a) Reconditioning or replacing of worn out parts or tools.
(b) Repairing or replacing worn out parts or tools.
(c) Checking all electrical connection of the machine or equipment.
(d) Checking the performance of each part of the machine or equipment.
(e) Cleaning of interior parts such as gear box, radiator etc., of transport and material
handling equipments.
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(f) Checking of control systems.

(g) Complete overhauling.

(d) (i)

Paths Duration (days) Paths Duration (days)

ACI 6+5+5 = 16 ADGJL 6+4+3+2+2 = 17
ADI 6+4+5 = 15 BEHJL 3+3+5+2+2 = 15
ACGJL 6+5+3+2+2 = 18 Critical BFKL 3+2+3+2 = 10

(ii) Benchmarking involves comparing the practices of the organization with best
management practices from across the globe. It helps an organization to learn the
potential and limitations of its own operations as well as those of the industry leaders,
thereby controlling the limitations and eliminating the weaknesses in its operations. Bench
trending helps in controlling and directing the organization‟s response to the volatility of
the market forces and the dynamics of the industry in which it operates. It involves
assessing the existing situation and anticipating changes in the critical market conditions
and consumer preference variables and evaluating their impact. Benchmarking can be
broadly classified into two types-competitive and generic. Competitive benchmarking
focuses on the products and manufacturing processes of the organization‟s competitors,
while generic benchmarking evaluates the processes of the organization against those
of organizations considered the best in those processes. Bench trending can be broadly
classified into strategic and process bench trending. Strategic benchtrending controls
the growth direction of the business unit and sets long-term goals and objectives, while
process bench trending is used to control the performance of a specific function or
process of the organization.

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Information System

Answer any two questions.

3. (a) (i) State the advantages of System Development Life Cycle from the perspective of
Information System Audit. 4
(ii) Write a note on File Library. 3
(iii) Define Database Administrator. 4
(iv) In a Purchasing Order Processing system, a purchase order record has the following
fields:
Field Name Maximum Field Size
Purchase order number 6
Vendor Code 3
Order-quality 5
Order date 6
Record Deletion maker 1
It is estimated that at any point of time, the outstanding Purchase Order file would
have a maximum of 750 outstanding purchase order records in the file (once
material is received, the purchase order record is purged from the file.) However,
there may be a 15% increase in the total number of records in near future. The file
management software also requires an overhead of 20% for minimizing probabilities
of collision and overflow conditions. Compute the total file space requirements after
allowing for 10% contingency factor on the total. 5

(b) (i) Describe the term On-line Analytical Processing. 4

(ii) Discuss the importance of Marketing Information System. 4
(iii) ‘A successful BPR implementation brings significant improvement to productivity,
customer service and bottom –line.’- State the implementation phases. 8

(c) (i) Describe the composition of the Cyber Appellate Tribunal. 4

(ii) List the main reasons for the spread of E-commerce. 6
(iii) ‘According to Section 30 of the Information Technology Act,2000, Certifying Authority
shall follow certain procedures in respect of Digital Signatures.’- List the procedures. 4
(iv) Define Configuration. 2

Answer:

(a) (i) Advantages of System development life Cycle from the perspective of IS audit
 If the detailed documentation is maintained during each phase of the SDLC the IS
auditor can easily understand each phases,
 The IS auditor on the basis of his examination, can write in his report about the
compliance by the IS management of the procedures, if any, set by the
management,
 If The IS Auditor has a technical knowledge and ability of the area of SDLC, the IS
Auditor can guide during the various phases of SDLC.
 The IS auditor can also provide an evaluation of the methods and techniques used
through the various development phases of the SDLC.

(ii) File Library: Managing the organizations library of machine readable files involves 3
functions:

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 Files must be used only for the purposes intended.

 The storage media used for files must be maintained in correct working order.
 A file backup strategy and file retention strategy must be implemented.

The file librarian is responsible for recording, issuing, receiving and safeguarding all
programs and data files that are maintained on computer tapes or disks.

(iii) Database administrators

In any organization where many persons use the same resources, there is a need for a
chief administrator to oversee and manage these resources. in a database environment,
the primary resource is the database itself and the secondary resource is the DBMs and
related software. Administering these resources is the responsibility of the database
administrator (DBA). The DBA is responsible for authorizing access to the database, for
coordinating and monitoring its use, and for acquiring software and hardware resources
as needed. The DBA is accountable for problems such as breach-of security or poor
system response time. In large organizations, the DBA is assisted by a staff that helps carry
out these functions.

(iv) Calculation of Record Size:

Field Name Maximum Field Size
Purchase order number 6
Vendor Code 3
Order-quality 5
Order date 6
Record Deletion maker 1
Therefore, Record Size 21

Calculation of File Space Requirement:

Record Size(a) 21
Maximum expected records(b) 750
Required Record Space(c=a x b) 15,750
+15% increase in future (15% of c) 2,363
(d) 18,113
+ 20% overhead (20% of d) 3,623
(e) 21,736
+10% contingency (10% of e) 2,174
Therefore, file space required 23,910

(b) (i) On-line Analytical Processing (OLAP)

An OLAP software does the analysis of information from data warehouse. The OLAP
applications are widely scattered in divergent application area like finance
Management, sales analysis. The real test of an OLAP system is inefficient use of data
from databases and computational capability of data to develop model establishing
the relationship of various parameters. In fact, it provides the services of „just-in-time‟
information.
Though OLAP software are found in widely divergent functional areas, they have three
common key features which are:
 Multidimensional views of data
 High analytical ability
 „Just-in-time‟ information delivery

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Rarely a business model limited a fewer than three dimensions. The common dimensions
in business environment are organization, line item, time, product, channel, place etc.
OLAP system should have the ability to respond the queries from a manager within a
specified time. The OLAP software must provide a rich tool kit of powerful capability of
analytical ability.

(ii) Importance of Marketing Information System

 Anticipation of Customer Demand-Every marketer needs up-to-date knowledge
about consumer needs and wants.
 Systematic Approach-Expanding markets and competitive marketing environment
require adequate market intelligence system.
 Economic Indicator-Marketers must have latest information on the changing trends
of supply, demand and prices
 Significance of Analysing Competition-Marketer cannot survive without having
information regarding nature, character and size of competition to be met.
 Development of Technology-Marketers must have latest information regarding
technological development.
 Understanding the Consumer-Information system can establish proper two way flow
of information and understanding between marketers and consumer.
 Marketing Planning-Marketing plans and programmes are based upon information
supplied by economic forecasts and market research.

(iii) Implementation phases of Business Process Re-engineering

 Project kick off: project goal, project team and communication standards are
agreed upon. a number of workshops are held where project scope, sponsors
commitment, project risk, milestones and deliverables are discussed. A SWOT
(strength, weakness, opportunities and threat) analysis is carried out with active
participation of all.

 Process identification and data gathering: “As is” processes are assembled through
flow charts. Current practice of interfacing with business partners is gathered.
Bottlenecks, delays, complexity, internal blame games, idle assets etc. are brought
forward. Use of existing technologies is comprehended. Major and strategic business
processes to be reengineered, are identified. Stakeholders categorize the processes
to be reengineered and agreed upon on the timeline of implementation.

 Process reengineering: in this phase, actual reengineering begins. a number of brain

storming sessions are held with project team and other stakeholders, where current
business processes are critically analyzed to determine non value adding activities
and identify excess control and check, always with customer value as a focal point.
Impact of new technologies on process improvement is also evaluated. New process
ideas with reduced check and control and enabling technologies such as Workflow
Automation and ERP, are envisaged. Benchmarking is also done with best of breed
industrial peers.

 Blueprint of new system: Blueprinting involves modeling workflow and information

requirement, of new business processes. “To be” processes are modeled using various
modeling tools. New organization structures, human resource need, performance
monitoring and compensation, technological needs, are also outlined. Normally, a

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first cut redesign scheme is produced which is modified after gathering actionable
feedback from the stakeholders.

 Transformation: A migration strategy and a migration plan is the first step of

transformation. Migration strategy may decide as a pilot, phased or big bang
implementation. The migration plan would include establishment of new
organizational structure, detailed training and reallocation of workforce, and cut off
dates for implementation. Change management and introduction of new
technologies will form an important part and may need engagement of outside
consultants for this specific purpose. There should be provision on the plan to tweak
the implemented system so as to get maximum value out of it.

(c) (i) The composition of the Cyber Appellate Tribunal is provided for under section 49 of the
Information technology act, 2000. Initially the tribunal consisted of only one person who
was referred to as the Presiding Officer who was to be appointed by way of notification
by the Central Government. Thereafter the Act was amended in the year 2008 by which
section 49 which provides for the composition of the Cyber appellate tribunal has been
changed. As per the amended section the tribunal shall consist of a Chairperson and
such number of other Members as the Central Government may by notification in the
Official Gazette appoint. The selection of the Chairperson and Members of the Tribunal is
made by the Central Government in consultation with the Chief Justice of India. The
Presiding Officer of the tribunal is now known as the Chairperson.

(ii) Main reasons for the Spread of E-commerce:

 Digital convergence, i.e., it means that due to digital revolution almost all digital
devices can communicate with one another.
 Today‟s E-commerce is available to anyone, anywhere in the world, anytime 24/7 (24
hours a day, 7 days a week).
 It helps in bringing about positive changes in an organization.
 People are now having a widespread access to it and personal Computers (PCs).
 E-commerce helps in reducing operating costs and increasing profit margins due to
global operations.
 Demand for customized products and services are increasing.

(iii) According to section 30 of the Information Technology Act, 2000, Certifying Authority
shall follow certain procedures in respect of Digital Signatures as given below:
• Make use of hardware, software and procedures that are secure from intrusion and
misuse.
• Provide a reasonable level of reliability in its services, which are reasonably suited to
the performance of intended functions.
• Adhere to security procedures to ensure that the secrecy and privacy of the digital
signatures are assured and
• Observe such other standards, as specified by the regulation.

(iv) Configuration of an ERP system deals with handling of numerous usage controls, which
can be switched off or switched on, so as to balance its functionalities to extant needs.
First thing to happen is to install specific modules needed and configuring these modules,
as per the scope of the project. Thousands of configuration tables are present, which
define how the system should operate, how the data entry screen will look like, how the
signals and massages will appear etc.

Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 13