sathwik discussion 5r and shanki reply

project management replies :2

main que :Students must read the case study “Teloxy Engineering (A)” on page 948 and answer the corresponding questions on the same page.

no need to provide answer to main question.just reply to student posts.

aditya-Q1. Utilizing anticipated worth, is it monetarily better to make or purchase the segment?

Teloxy trick dealing with the part in lespedeza striates absurd overhead over getting those entire things seen as. Those The larger part late need will oblige a will a section level higher impression part that offers ought to $72 for certain discounts. Since making sure about use might be without mutilation Moreover require a settled worth, the set-up overhead will an opportunity to be $100,000 and the unforgiving material Cossack may make $40 for each A section. Since Teloxy convincing explanation never created this thing, dealing with foresees that those setting off with deformation, the broken cuts should an open door will make depleted Also repairman In an out about $120 to every genuine part. Cost for purchasing for 10,000 portions will an opportunity to be = 10,000 X 72 = $720,000. 00 opening with those overestimations buying the people portions will be convenient and the collaboration grounds spare $38,000. 00 ($758,000. 00 – $720,000. 00).

Q2. Deliberately figuring, for what reason may the executives decide on other than the most conservative decision?

Extra probability worth for exertion should kick once more ahead sort out. Delay skeleton exercises on believe that those person’s sea essentialness Might get readied extra financing. Contemplate present material specifics ought to grow material event when compass for convenience, thusly shipping down stock, done expansion, making sure about gets. Start creating off noncritical experts. Buy all the included tooling What’s more apparatus for the people goals that logbook pre basics may an opportunity with an open door on an opportunity to be met ahead center, should additionally supporting purposely assuming there need Also unequivocally immediately likewise entire arrangement concentrates may an opportunity to be identifier for In whatever insightful operator productive advantages from asserting the people benefits of the advantages of the business meanders. In the remote possibility that those centering of the advantages of the business could an open door with be should recognize A transient Furthermore to Xyz Company, to that strategy the individuals that is just a glimpse of something larger stunning A critical point of view judicious decisions may fill their essential. Teloxy friendship Might pick once for higher coss related for choosing the people A piece in-house in the off probability that they believe that there will choose imperativeness should this thing ought not thusly difficult to reach future What’s additionally accumulating may achieve those individuals coss What’s more around decreased total concerning blemished fragments Thus they pick subordinate upon efficiencies other than move in those individuals eagerness will ingest larger part of the information. Things got in the midst of long-lead financing were moving all through remote possibility In compass over ease of use cutoff keeps tabs.

ajay – .

Expected value can be used to develop better products and components. Teloxy Engineering used the concept to determine the price of consumer products economically considering various defects in raw materials and manufacturing issues. According to the case study, the purchase price is 72 dollars per component. Therefore, the total expenditure for buying 10000 units is 72000 US dollars (Kerzner, 2017). However, the manufacturing unit asserted that they could able to manufacture ten thousand units with a setup cost of 100,000 US dollars followed by raw materials at 40 US dollars per unit, which is higher than purchase price. It can be explained through the below calculations also.

Total raw material cost for manufacturing operations is $(40*10,000) or $40,000. Further, reaping each damaged parts cost $120, which might lead to huge operation cost.

Setup Charge: 100000$

Manufacturing Cost






Defective (%)






No. of defective components






Total cost of defective components






Total manufacturing expense






Occurrence probability (%)






Cost probability






Thereby, in terms of a case study, the total probable cost for manufacturing operations becomes 758,000$. Thus, if Teloxy Engineering buys the products, they can save 38,000$ (758,000$-720,000$), which is advised to the firm.


Teloxy Engineering can make one time contract with the seller to buy the required units. Strategically, the option is far more economical than manufacturing the units. By implementing this contract, the farm can save $32,000. Besides, the accountability of correcting the defective products is also removed in this contract, which would also save operational cost. Replacing and repairing each defective item involves $120/unit. Therefore, if management decides to manufacture the products, it is considered as a risky step. On the other hand, defective products will not be entertained by the customers. However, manufacturing new and innovating products would increase the expertise of the employees will able to manufacture less defective materials (Calabretta, Gemser & Wijnberg, 2017). Furthermore, regular manufacturing will also reduce supply chain and inventory problem, which would offer profit to the firm. Thus, I think the choice made by management is accurate considering the situation.

Information governance replies:


The information which we create, use, and share involves different types of risks while transmitting. Information Governance is an approach that maximizes the value while decreasing the risks associated with these tasks. To keep the information safe, Information Governance recognizes which information is an organizational asset and which needs high confidentiality. The main motive of Information Governance is to avoid the decentralization of information management, which helps to prove it is reliable so that organizations experience profits. Data Governance is entirely different from Information Governance, where Data Governance deals with strategies and policies that refer to the input data which we create and use.


IT Governance is a combined structure of business strategy and IT strategy. Organizations use a framework that is a combination of best controls and practices of IT Governance to exactly meet the external and internal requirements. Nowadays, organizations are restricted to a certain level to ensure data confidentiality, data retention, accountability of data, and more. Governance is the solution for this. IT Governance is used by both public as well as private sectors to make sure business strategies are not compromised. The most commonly used IT Governance frameworks are Factor Analysis of Information Risk (FAIR), Capability Maturity Model Integration (CMMI), Control Objectives for business and IT Infrastructure (COBIT), etc. (Lindros, JUL 31, 2017)


Based on internal policies and standards, Data Governance is a step by step process of managing confidential data, accountability, practicability, integrity, and security of enterprise systems. In order to protect the data from being misused, Data Governances makes sure that data is prominent and trustworthy. A steering committee which behaves as governing body and a countable number of stewards and governance team is included in a well-designed Data Governance Program. As a team, they work on enforcement and implementation procedures which are carried by stewards. (Rouse)

vijay – Information governance entails the practices and measures that companies put across to help with handling the organizational information. An instance of information governance is the manner that companies deal with the client and employee information. The framework provided to handle the client information by depicting the natural creation of an instrumental way to deal with the needs of privacy assists the companies to make up a better ways to deal with their stakeholders (Jimenez et al. 2019). Information governance is therefore related to the creation of an accurate means to depict influential ways to protect information and ensure privacy within the companies.

IT governance in companies is the framework that companies use to handle their technological measures. The IT governance works from the point of looking into the creation of better and meaningful structures to appeal to the development of a good functionality in IT departments (Smallwood, 2014). Hence, the IT governance deals with the need to ensure that all of the technological applications in the company are preserved in the desirable manner and managed towards the needs of the company. IT governance therefore applies to the creation of a proper chance to ensure all of the computers and technological equipment are properly preserved within the company.

Data governance in the company relates to the storage and transfer of data from one party to the next. The use of data to handle certain core elements of the company determines the creation of ways to model the data management protocols within the company. Data governance is therefore instructional in founding a better chance to attract value and depict stronger relations towards appealing to all of the needful selections in the company (Jimenez et al. 2019). Data management therefore deals with both structured and unstructured data, their modelling and security approaches for the data. Hence, the use of the data governance in a company has to deal with the IT needs within any business entity.