Devesh Case Study

7/31/2019 Devesh Case Study

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Assignment No. 4

Case

Studies

Submitted by:-

AKHIL AHOOJA

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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

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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 indenter’s copy (Indenter’s 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 didn’t 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 DGM’s 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.

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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

didn’t.

This case tells us that one should work within his range and work assigned, shouldn’t 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.

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Devesh Case Study