Management 2023 Paper II 50 marks State

Q3

(a) State the different forms of waste management. 15 marks (b) State the various factors affecting plant location. 15 marks (c) An automobile company has additional capacity that can be used to manufacture brakes that the company is presently buying for ₹ 500 each. If the company makes the brakes, it will incur materials cost of ₹ 100 per unit, labour cost of ₹ 130 per unit and variable overhead cost of ₹ 30 per unit. The annual fixed cost associated with the unused capacity is ₹ 2,50,000. Demand over the next year is estimated to be 5000 units of brakes. (i) Would it be profitable for the company to manufacture the brakes ? (ii) Suppose the capacity could be used by another department for production of some agricultural equipment that would cover its fixed and variable cost and contribute ₹ 1,00,000 to profit. Which would be more advantageous, brakes production or agricultural equipment production ? 12+8=20 marks

हिंदी में प्रश्न पढ़ें

(a) अपशिष्ट (वेस्ट) प्रबंधन के विभिन्न स्वरूप बताइए । 15 (b) संयंत्र स्थान को प्रभावित करने वाले विभिन्न घटक बताइए । 15 (c) एक ऑटोमोबाइल कंपनी अपनी अतिरिक्त क्षमता का उपयोग ब्रेक्स निर्माण में कर सकती है, जो कि अभी कंपनी ₹ 500 प्रति में क्रय कर रही है । यदि कंपनी ब्रेक्स बनाती है, तो उस पर सामग्री लागत ₹ 100 प्रति इकाई, मजदूरी लागत ₹ 130 प्रति इकाई एवं परिवर्तनीय उपरिव्यय लागत ₹ 30 प्रति इकाई आती है । वार्षिक स्थायी लागत जो अप्रयुक्त क्षमता से संबंधित है ₹ 2,50,000 है । आगामी वर्ष की ब्रेक्स की अनुमानित मांग 5000 इकाई है । (i) क्या ब्रेक्स का निर्माण करना कंपनी के लिए लाभप्रद होगा ? (ii) मान लीजिए क्षमता अन्य विभाग द्वारा कृषि उपकरणों के उत्पादन पर प्रयोग होगी जो कि स्थायी एवं परिवर्तनीय लागत को कवर (सम्मिलित) कर लेगी तथा ₹ 1,00,000 लाभ में योगदान करेगी । ब्रेक्स के निर्माण अथवा कृषि उपकरणों के निर्माण में कौन-सा निर्माण अधिक लाभदायक होगा ? 12+8=20

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Directive word: State

This question asks you to state. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.

See our UPSC directive words guide for a full breakdown of how to respond to each command word.

How this answer will be evaluated

Approach

The directive 'state' demands clear, systematic presentation of facts and calculations. Allocate approximately 30% time to part (a) on waste management forms, 30% to part (b) on plant location factors, and 40% to part (c) numerical analysis. Structure: brief introduction, then systematic coverage of (a) and (b) with definitions and classifications, followed by detailed cost-benefit calculations for (c)(i) and opportunity cost analysis for (c)(ii), ending with a synthesized conclusion on operational decision-making.

Key points expected

Part (a): Classification of waste management forms — industrial (hazardous, non-hazardous), municipal (solid, liquid), biomedical, e-waste; treatment methods (landfilling, incineration, recycling, composting, waste-to-energy)
Part (b): Plant location factors — proximity to raw materials and markets, labour availability and costs, transportation infrastructure, power and water supply, government policies and incentives, environmental regulations, agglomeration economies
Part (c)(i): Make-or-buy cost calculation: variable cost per unit = ₹260; total manufacturing cost = ₹26,00,000 + ₹2,50,000 = ₹28,50,000; buying cost = ₹25,00,000; manufacturing is NOT profitable
Part (c)(ii): Opportunity cost analysis: compare net loss from brakes (₹3,50,000) versus ₹1,00,000 contribution from agricultural equipment; latter is advantageous
Integrated insight: Demonstrate understanding of relevant costs, sunk costs, and capacity utilization decisions in operations management

Evaluation rubric

Dimension	Weight	Max marks	Excellent	Average	Poor
Concept correctness	20%	10	Accurately defines all waste management categories with correct technical distinctions; precisely lists location factors with operational relevance; solves (c)(i) with correct variable cost identification (₹260/unit) and proper treatment of fixed costs as unavoidable, concluding manufacturing is unprofitable; correctly applies opportunity cost principle in (c)(ii) showing agricultural equipment yields ₹1,00,000 versus ₹3,50,000 net loss from brakes	Covers major waste forms and location factors with minor errors; calculates basic costs in (c) but may misclassify fixed costs or make arithmetic errors; reaches correct conclusion in (c)(ii) but without clear opportunity cost reasoning	Confuses waste categories or omits key forms; lists generic location factors without operational specificity; fundamental errors in cost calculations (e.g., treating fixed costs as incremental) leading to wrong profitability conclusion; fails to compare alternatives in (c)(ii)
Framework citation	20%	10	Cites 3R framework (Reduce, Reuse, Recycle) or extended producer responsibility for (a); references Weber's industrial location theory or D.M. Smith's profit-maximizing location model for (b); applies relevant costing/marginal costing framework and opportunity cost concept from managerial economics for (c); mentions make-or-buy analysis or outsourcing decision framework	Mentions one relevant framework (e.g., 3R or basic location theory) without elaboration; uses cost terminology correctly but without explicit framework citation for decision analysis	No identifiable frameworks; generic descriptions without theoretical grounding; calculations presented as isolated arithmetic without decision-making context
Case / Indian example	20%	10	For (a): cites Indian initiatives like Swachh Bharat Mission, e-waste Management Rules 2022, or specific examples (Tata's zero-waste-to-landfill plants, ITC's wealth out of waste); for (b): references Indian industrial corridors (DMIC), SEZ policies, or specific plant location decisions (Suzuki in Gujarat, Hyundai in Chennai); for (c): contextualizes with Indian automotive sector make-or-buy trends	Includes one or two Indian examples (e.g., Swachh Bharat or any industrial state) without detailed integration; generic mention of Indian manufacturing context	No Indian examples; purely theoretical or Western-centric illustrations; examples factually incorrect or irrelevant to operations management context
Multi-perspective analysis	20%	10	For (a): balances technical, environmental, regulatory, and economic perspectives on waste management; for (b): integrates quantitative (cost) and qualitative (social, political, strategic) location factors; for (c): explicitly considers quantitative profitability, capacity utilization, strategic control over supply chain, and qualitative risk factors; demonstrates trade-off analysis between short-term cost and long-term capability building	Covers two perspectives adequately (e.g., cost and environment for waste; cost and infrastructure for location); basic cost comparison in (c) without strategic depth	Single-dimension analysis throughout; purely descriptive for (a) and (b); narrow financial calculation for (c) ignoring strategic, operational, or risk dimensions
Conclusion & recommendation	20%	10	Synthesizes findings across all parts: summarizes optimal waste management approach for Indian manufacturing; provides prioritized location factor framework; gives definitive recommendation for (c) with clear rationale (choose agricultural equipment, saving ₹4,50,000 opportunity cost); suggests conditions under which brake manufacturing could become viable (demand increase, cost reduction, quality/strategic considerations); ends with broader insight on capacity utilization decisions	Summarizes main points without synthesis; correct recommendation for (c)(ii) but limited justification; no forward-looking conditions or strategic insight	Missing or abrupt conclusion; contradictory recommendations; no clear stance on (c)(ii); fails to connect parts (a), (b), and (c) thematically around operational efficiency

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