Financial Accounting ACC221

 

Course Code:  ACC221                                              Course Title: Financial Control

Course Instructor: Dr. Rupinder                                                      

Academic Task No.:       2                                          Academic Task Title: Financial Accounting

Date of Allotment: 09 April, 2020                          Date of submission: 15 April, 2020

Student’s Roll no:        A07                                         Student’s Reg. no:   

Evaluation Parameters:  Weighted average method, FIFO method, Direct method and Step-Down method,

 

 

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

 

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work or from any other source except where due acknowledgement is made explicitly in the text, nor has any part been written for me by any other person.

Student’s Signature: Rajinder Singh

 

Evaluator’s comments (For Instructor’s use only)

General Observations	Suggestions for Improvement	Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________                              Max. Marks: ______30________

 

 

 

 

 

Q7: Justice League want to allocate the cost using the process costing, at the beginning the Work in progress is 480 units which are 30 % completed and cost associated with these units were Rs.10,000. During the month the additional 520 units were started and Rs 25000 is spent on it. At the end of the process, 400 units were work in progress and 60 % completed and 100 units were normal loss.

Allocate the cost of using the process costing under the method

1.Weighted Average method

2. FIFO method.

3. discuss the reason of difference between the two methods.

 

Part A:

Brief explanation of the Case: - According to this case, Justice League is a firm which want to allocated their cost by using process costing. Process costing is a continuous process of production of the identical or similar goods. It is a job order costing contract which means that when a company get a contract to perform a particular work of the other. In this case, beginning work in progress is given which was 30% completed and rest 70% is incomplete. The cost which is allocated for the beginning work in progress is Rs. 10000 given.

After this additional units have to started is given with cost spent on it Rs. 25000. In the end of the work in process units are given which was 60% completed. Also, in this case, normal Spoilage of 100 units given which means that expected amount of materials that are rendered unusable as part of the production process.

Calculation or solution of this case: - The items which is already given in this case as below in the table.

Particulars	Units	Conversion Costs
Beginning Work in process (30% Complete)	480	Rs. 10,000
Units Stared	520	Rs. 25000
Spoilage- Normal Loss	100
Ending Work in process (60% complete)	400

 

 

1.)  Weighted Average Method

Particulars	Units	% Completed	Equivalent whole units	Costs Incurred	Cost per Equivalent Units	Allocated Cost
Beginning Work in process	480	30%		Rs. 10,000
Units Stared	520			Rs. 25,000
Units to account for or Total	1000			Rs. 35000
Completed	500	100%	500 eq. units		Rs. 41.66	Rs. 20830
Spoilage - Normal	100	100%	100 eq. units		Rs. 41.66	Rs. 4166
Ending Work in process	400	60%	240 eq. units		Rs. 41.66	Rs. 9998.4
Units to account for or Total	1000		840 eq. units			Rs. 34944 (Approx.)

 

Calculation of Cost per Equivalent Units:

Total Cost = Rs. 10,000 + Rs. 25,000 = Rs. 35,000

Total Equivalent Units Complete = 840 eq. units

Allocated Cost per Equivalent Units = Total Cost / Total Equivalent Units Complete

   = 35,000 / 840

                                                          = Rs. 41.66

Calculation of Equivalent Units:

Spoilage–normal = 100*100% = 100 eq. units.

Ending Work in process = 400*60% = 240 eq. units.

 

2.)  FIFO Method

Particulars	Units	% Completed	Equivalent whole units	Costs Incurred	Cost per Equivalent Units	EU Costs	Add: Beginning	Allocated Cost
Beginning Work in process	480	30%		Rs. 10,000
Units Stared	520			Rs. 25,000
Units to account for or Total	1000			Rs. 35000
Completed	500	480*70% 20*100%	= 336 + 20 = 356 eq. units		Rs. 35.91	Rs. 12783.96	Rs. 10,000	Rs. 26374.96
Spoilage – Normal	100	100%	100 eq. units.		Rs. 35.91	Rs. 3591
Ending Work in process	400	60%	240 eq. units.		Rs. 35.91	Rs. 8618.4		Rs. 8618.4
Units to account for or Total	1000		696 eq. units			Rs. 24993.36 (Approx.)		Rs. 34993.36 (Approx.)

 

Calculation of Equivalent Units:

Spoilage–normal = 100*100% = 100 eq. units.

Ending Work in process = 400*60% = 240 eq. units.

Beginning work in process is 480 units which is 30% complete. So, in case of FIFO method we have to complete first beginning work which is left 70% from the complete of 500 units and left 20 units is completed 100% = 480*70% + 20*100% =336 + 20 = 356 eq. units.

 

Calculation of Cost per Equivalent Units:

Total Cost = Rs. 25,000

Total Equivalent Units Complete = 696 eq. units

Allocated Cost per Equivalent Units = Total Cost / Total Equivalent Units Complete

= 25,000 / 696

                                                         = Rs. 35.91

 

3.)  The difference between FIFO method and weighted average method are:

a.)  Equivalent Units under weighted average method (840 eq. units) is greater than FIFO method (696 eq. units) because there is a beginning work in process inventory.

b.)  If in case no beginning inventory is given then both FIFO method and weighted average method have a same result.

c.)  In FIFO method we work on the oldest inventory first. While in case of weighted average method no such thing is happened. We assume that inventory is completed.

d.)  In weighted average method of inventory valuation follows a system of averaging costs of all the inventory and dispatching them based on a mean cost while In FIFO is an inventory valuation method in which inventory is dispatched on a first-in-first-out basis. So, inventory manufactured first is dispatched first.

e.)  When costs are incurred uniformly during the process, at the beginning of the process, or at some point in the process that the beginning inventory had already reached, equivalent production under weighted average would be greater than FIFO method.

 

Conclusion: Thus, I would like to concluded that during inflation, cost of goods sold increases. FIFO method will report highest net income as cost of goods sold indicate the old prices. Weighted average cost method results in cost of goods sold and inventory which is between the values of FIFO and LIFO method.

Part B: The Avengers Limited is composed of four departments, further distinguished into two services departments(Cafeteria department and Personal department) and two operation department(Metal department and Chrome department) the Avenger limited want to allocate the cost of two service departments to the operation departments and for the allocation of the Cafeteria department the base of labor hours would be considered and for Personal department the square footage will be considered.

	Service		production
	Cafeteria	Personal	Metal	Chrome
Department cost before allocation	400,000	100,000	5,00,000	200,000
Labor hours	10,000	5,000	30,000	10,000
Space in square feet	15,000	1,000	20,000	30,000
Allocate the cost of the service department using the methods 1.    Direct method 2.    Step down method   3.    Which is more effective way to allocate the service department cost

 

Part B:

 

Brief explanation of the case: In this case, Avengers Limited has four departments, which was further divided into two parts service departments and production department. The service department has included Cafeteria and Personal while production department has included Chrome and Metal.

 

Avengers Limited want to allocate the cost of his service department to the production department. These costs are allocating of the Cafeteria department are on the basis of labor hours and Personal department on the square footage. This case is solving in two ways:

1.) Direct Method   2.) Step down method

 

The items which was given in the case as below:

	Service		Production
	Cafeteria	Personal	Metal	Chrome
Department cost before allocation	400,000	100,000	5,00,000	200,000
Labor hours	10,000	5,000	30,000	10,000
Space in square feet	15,000	1,000	20,000	30,000

 

 

 

 

A.)  Direct Method: This method is used to allocate costs to production departments i.e., Metal and Chrome, not to service departments.

 

For Cafeteria department:

 

Total direct labor hours = 30,000 + 10,000 = 40,000

 

1.)  Metal = Direct labor hours / Total labors hours

= 30,000 / 40,000 = 75%

 

2.)  Chrome = Direct labor hours / Total labors hours

= 10,000 / 40,000 = 25%

 

3.)  Cafeteria costs to metal department = 4,00,000*75% = 3,00,000.

 

4.)  Cafeteria costs to Chrome department = 4,00,000*25% = 1,00,000.

 

The mental department is allocated 75% of the cafeteria costs because it accounts for 75% (30,000 of a totals of 40,000) labor hours. After this chrome department is allocated the remaining 20% i.e., 10,000 of a totals of 40,000.

 

For Personal department:

 

Total square footage = 20,000 + 30,000 = 50,000

 

1.)  Metal = Direct square footage / Total square footage

                     = 20,000 / 50,000 = 40%

 

2.)  Chrome = Direct square footage / Total square footage

                         = 30,000 / 50,000 = 60%

 

3.)  Personal costs to metal department = 1,00,000*40% = 40,000.

 

4.)  Personal costs to Chrome department = 1,00,000*60% = 60,000.

 

Similarly, the metal department has 40% of the total square footage, so it is assigned 40% of the personal services cost and the chrome department is assigned the remaining 60%.

 

 

 

 

 

B.) Step-down method: In this method, Services cost is allocating to both Service department and Production department. It does this by sequentially allocating service department costs, starting with the department that provides the most services to other service departments, and finishing with the department that provides the least services to other service departments.

 

Particulars	Service		Production
	Cafeteria	Personal	Metal	Chrome
Department Costs before allocation	4,00,000	1,00,000	5,00,000	2,00,000
First Step	(4,00,000)	44,444.4	2,66,666.6	88,888.8
Subtotal	0	1,44,444.4	7,66,666.6	2,88,888.8
Second Step	0	(144,444.4)	57,777.76	86,666.64
Total	0	0	8,24,444.36	3,75,555.44

 

Calculation of Costs allocation:

 

Cafeteria costs is allocating in Personal department, Metal and chrome on the basis of labor hours.

 

Personal department: 4,00,000 * 5,000 / 5,000 + 30,000 + 10,000

= 44,444.4

Metal department: 4,00,000 * 30,000 / 5,000 + 30,000 + 10,000

= 2,66,666.6

Chrome department: 4,00,000 * 10,000 / 5,000 + 30,000 + 10,000

= 88,888.8

 

Personal department is allocating in Metal and chrome on the basis of Square feet.

 

Metal department: 1,44,444.4 * 20,000 / 20,000 + 30,000

= 57777.76

Chrome department: 1,44,444.4 * 30,000 / 20,000 + 30,000

= 86,666.64

 

C,) The more effective way to allocate the service department cost is the cost allocations only in the production departments of an Avengers Limited. These production departments perform the primary purpose of the company—to produce goods and services for consumers.

There are three methods for allocating service department costs:

The first method, the direct method, is the simplest of the three. The direct method allocates costs of each of the service departments to each operating department based on each department’s share of the allocation base. Services used by other service departments are ignored.

The second method of allocating service department costs is the step-down method. This method allocates service costs to the operating departments and other service departments in a sequential process. The sequence of allocation generally starts with the service department that has incurred the greatest costs. After this department’s costs have been allocated, the service department with the next
highest costs have its costs allocated, and so forth until the service department with the lowest costs has had its costs allocated. Costs are not allocated back to a department that has already had all of its costs allocated.

The third method is the most complicated but also the most accurate.  The reciprocal method allocates services department costs to operating departments and other service departments.  Under the reciprocal cost, the relationship between service departments is recognized and cost is allocated to and from each service department for services provided.

 

 

 

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Sources of finance of GM Breweries Limited

 

    Sources of finance of GM Breweries Limited

A sources of finance is refer to where an industry gets cash from to fund their business activities. An industry can gain funding from either internal or external sources. Similarly, GM Breweries Limited gain the finance from two modes i.e., for Long Term Source of finance and Short Term Source of finance. Analysis is done with an objective to study the GM Breweries Limited Long Term Source and Short Term Source.

    Short Term Sources of finance taken by GM Breweries Limited- Short term sources of finance are those which are used for raising capitals for short period of time that is less than one year. Money raised through short term basis is required to be paid back within one year.

Following are the type of sources used by GM Breweries Limited in order to gain funds in the organization for the purposes to meet short term expenditure.

1.     Commercial paper- Commercial paper is an unsecured promissory note issued by high creditworthy firms for raising short term funds in the organization. The maturity period of this note is ranges from 91 to 180 days. GM Breweries Limited used commercial papers which are issued by companies to banks, insurance companies or business funds at discount rate on face value and are redeemed at their face value on maturity.

2.     Trade Credit- GM Breweries Ltd. used credit services provided by the supplier of raw materials or goods for the short term. Trade credit helps GM Breweries Ltd. in continuing their operations without disruption as it helps them in getting supplies without any instant payment. Businesses are not mandatory to pay any interest amount on trade credit.

3.     Bank overdraft- It is a credit facility extended by the bank to their account holders for a shorter period. Under this facility, GM Breweries Ltd. can overdraw the total from their account up to a certain limit set by the bank. GM Breweries Ltd. need to pay interest over the overspent amount to the bank.

4.     Bill of exchange- It is a financial instrument which is drawn by the creditor upon his debtor. It is a written negotiable instrument which contains an unconditional order for paying the stated amount to the holder of the instrument. GM Breweries Ltd. is either payable on demand or on the maturity of a specific time period.

5.     Bank Loan- It means borrowing from the bank at a specific rate of interest for a spiritual period of time. Bank grants loan to GM Breweries Ltd. against some sort of security which they need to deposit at the time of taking the loan. GM Breweries Ltd. need to pay interest regularly to bank on the authorized amount. A loan is repaid to the bank either in lump sum amount or in instalment as may be decided at the time of entering the contract with bank and GM Breweries Ltd.

6.     Certificate of deposit- It is an unsecured negotiable instrument issued by commercial banks or financial institutions to depositors i.e., GM Breweries Ltd. Certificate of deposit is issued to investors i.e., GM Breweries Ltd. against the sum of total deposited by them for a fixed maturity period. The maturity period of these instruments is decided in accordance with the needs of depositors (GM Breweries Ltd.) and ranges from 90 to 365 days.

 

    GM Breweries Ltd. has used sources of finance to finance its assets and working capital for Long term Purpose.

1. Equity capital: GM Breweries Ltd. is authorized to issue a paid up capital of 638.07crores. The equity share capital of the GM Breweries Ltd. in the year 2013-14 was 353 crores. The company issued further equity shares in the year 2014-15, by which it raised to 361.79 crores and in the year 2016-2017 it increasedto382.87. During 2017-2018 and 2018-2019 there was no change in the equity capital. After that, the company has increased its equity every year till the end of the period. The net worth of the GM Breweries Ltd. is also increasing over the years. This shows the company is getting benefitted through the increase in equity share capital. The net worth of the GM Breweries Ltd. is calculated and represented by the following table.
NET WORTH= Equity share Capital+ Reserves & Surpluses- (Debit balance of P/L Account + Miscellaneous expenditure)

 

Year	NET WORTH
2013-14	3593.60
2014-15	4111.39
2015-16	5537.07
2016-17	6869.75
2018-19	7839.50

 

2.     Debt capital- The debt capital of the GM Breweries Ltd. comprises of both secured as well as unsecured loans. The loans taken from secured sources are more than unsecured ones. This is because the GM Breweries Ltd. made a huge investment for developments in the year 2019-2020. Availing unsecured loans for the GM Breweries Ltd. was not possible. These secured loans are old loans and carry a higher rate of interest as compared to unsecured loans. The rate of interest on unsecured loans is 9.5% and for secured loans is 9.75-10.25% till 2019. But the company resorted to debt swapping from the year 2020-21 and has the rate of interest on secured loans 15% and which is between 10-11% on unsecured loans. Most of the secured loans are taken from banks and the bank had charged higher rate of interest than the market rate.
The sources of debt for the GM Breweries Ltd. are mentioned below:
· Working capital borrowings from banks.
· Term loan from banks/Financial Institutions
· Foreign Loans
· Public deposits

Debt Capital of GM Breweries Ltd.

YEAR	DEBT CAPITAL (In Crores)
2015-16	2936.84
2016-17	4009.14
2017-18	6280.52
2018-19	13165.56
2019-20	15898.75

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Scamper techniques - Eletric Vehicles

INTRODUCTION

The Indian Electric Vehicle (EV) Market is divided into three categories: passenger cars and commercial vehicles, as well as two- and three-wheelers. Electric Vehicles (EVs) are becoming a promising conduit for improving air quality, energy security, and economic opportunity in India, thanks to the tremendous growth of the automobile sector.

The Indian government recognizes the need to investigate sustainable mobility options in order to reduce reliance on imported energy sources, reduce greenhouse gas emissions, and offset negative transportation effects such as global warming. Even if the adoption of electric vehicles has begun, people continue to rely on fossil fuel-powered automobiles. However, as compared to conventional fossil-fueled vehicles, EVs face issues in terms of life cycle assessment (LCA), charging, and driving range.

Electric vehicle manufacture emits 59 percent more CO2 than conventional vehicle production. On a tank-to-wheel basis, the ICEV emits 120 g/km of CO2, however this rises to 170–180 g/km when viewed through the lens of the LCA. While EVs emit zero CO2 from tank to wheel, we estimate that the average CO2 is measured across a vehicle's life cycle rather than over a single vehicle.

The Indian Electric Vehicle Market was worth USD 5 billion in 2020, and it is predicted to grow to USD 47 billion by 2026, with a CAGR of more than 44% over the forecast period (2021-2026). The COVID-19 epidemic has had an influence on the Indian electric vehicle market, causing supply chain disruptions and the closure of manufacturing units as a result of ongoing lockdowns and travel restrictions across the country.

In India, however, the electric vehicle (EV) sector is still in its infancy. Due to several government programmes and policies, it is predicted to expand at a considerably quicker rate during the forecast period.

Problem Statement-

India plans to become a major player in the global EV market and has a vision of going 100% electric in the automobile sector. There is no doubt, that India has developed itself in this regard by a major extent than what it used to be 5 or 6 years ago. There are numerous benefits of owning an electric vehicle- Zero fuel cost, contributing to saving the environment, lower cost of maintenance, these cars should be selling like in huge numbers, right?
Although the sales figures of EV in the Indian market would suggest otherwise. There are quite a few issues which prove to be hindrances in India’s EV mission and also might be the reason why EVs are not achieving the desired sales figures.
Below mentioned are a few challenges and obstacles EVs face-

1.     Perception of consumers- In what ways a consumer looks at a product plays a pivotal role in how that product is going to sell. If the consumer is not aware or is not having the knowledge of a product, it can drastically affect the sales. The same thing is happening with EVs, where consumers for so many years have used ICE cars, they lack the knowledge and motivation to shift to a completely new form of a vehicle. Moreover, the lack of infrastructure, increased prices over ICE cars etc just add to the negative perception of EV vehicles.

2.     Charging Infrastructure- Further adding to the obstacles are the charging situation of EVs in our country. Majority of the EV manufacturers in India do not have their own charging network nor there are any major private companies who have come forward to develop the same. Moreover, the chargers provided by EV manufacturers are not compatible with the wall sockets that we have in our homes, hence we can’t charge the vehicle in our homes or offices. Things start to go even worse when we compare how many Gas stations (petrol/diesel pumps) we have in comparison to EV charging zones. For example- In Kolkata, in a 10Km radius there are approximately 10-15 Gas stations and only 2-3 EV charging points.

3.     High Initial Cost- One of the major factors that consumers look at while making a purchase is the product’s price. A cheaper option will always be the first choice for majority of the consumers irrespective of the running costs. Even though the running costs of EVs are much lower than ICE cars, the initial cost is what keeps buyers away from Electric vehicles. The reason for the high costs is the Lithium-ion (Li-ion) batteries which are used in these cars. India has a very scarce availability of Li-ion batteries and has to import them at a very high cost mainly from China. Another reason for the high prices is the import taxes which cause a major jump in CBU (Complete Built Unit) electric vehicles. There is a 60-100% import duty plus a 10% welfare surcharge which is imposed on imported EVs in India and as a result the initial prices skyrocket.

4.     Battery range of EVs- Where an ICE vehicle can go from 300-700Kms on a full tank of fuel, most EVs can do a range of 150-350Kms on a single charge. Combining an already low range with the current charging infrastructure only makes things worse. This majorly limits the actual usability of a vehicle, where the consumers would have to constantly worry about the vehicle running out of battery and them getting stranded.

5.     High Charging times- There are mainly three types of charging solutions, Level-1, Level-2 and DC Fast charge. Most charging stations in India support level-1 and level-2 charging with very few DC fast charging solution available. A level-1 charger supports up to 120Volts which would take approximately 8-9 hours to charge an electric vehicle that too for a range of only 100-140Kms. A 240V charger (Level-2) will do the same 100-140Kms in about 5 hours. Moreover, if an EV supports up to 120Volts of charging it is not guaranteed that the vehicle will charge at 120Volts, it can even clock-out at 50Volts meaning even higher time required to charge the car.

6.     How much environment are we really saving- One of the biggest selling points of electric vehicles is them being environmentally friendly. But if we really think about it, EV batteries requires a lot rarer raw materials than an ICE engine. To produce an EV battery the raw materials required are lithium, nickel, magnesium, phosphate etc all of which require mining and are rare earth materials. In comparison an ICE car’s engine all that is required are aluminium, copper and steel. There is no doubt that ICE cars using petrol/diesel engines will produce more pollution than an Electric vehicle, but when we consider all of the mining that is required to actually produce a single battery for an EV, the whole “We are contributing to save the environment” statement doesn’t sound that impactful or Nobel anymore.

Design statement- Design statement or thinking believes that the people who face problems are the ones who hold the key to their problem’s answer. Design statement is human-centered problem-solving tool which emphasize on Empathy, Collaboration, Co-creation and Stakeholder feedback to unlock creativity and innovation, which devises feasible and viable big Idea.

To develop the design of Electric Vehicle, every company is need to do divergent thinking which means they have to think out of the box in order to process any electric vehicle. The purpose of its to generate pool of ideas. So, they are using one thinking techniques called as SCAMPER. The full form of scamper is Substitute, Combine, Adapt, Modify, put to another use, Eliminate and Reverse.

1.     Substitute- Its like a concept, product, process or services, etc. which we could replace with another thing in order to see the improvements of result that whether it might be effective or not.

When we looked at the automotive sector that the carbon produced by internal combustion engines (ICEs) was endangering the humanity and planet as a species. This will help us to test that which alternative is better. Even its go for greenery which means environment friendly when we use the electric vehicle as a substitute.

As per our assignment, when we talk about the substitute of problem statements - electric vehicles battery range, then we having a substitute available. Previously company install Lithium-ion batteries which can run up to 150-200 km. Now, they make a substitute of Lithium-Sulfur batteries in EV’s that when car run on the road, battery gets charge over it.  So, they can run more than expectation around 300-400 km within single charge.

Second alternative, may be that the body of vehicle is made-up of some solar gadgets in order to charge battery by using solar energy.

 

When we talk about the infrastructure scarcity of ev’s charging station. They having a substitute like a road roller gadget which is attach to the charging units of car which work, when human being is run on the roller their energy is store in car battery. The equipment is design that if we run one km on roller, it charges 3% of battery which is efficient to run car up to 3-4 km.

For high charging times- the substitute that we can use double panel charger which help to charge the battery fast by providing full volt of electricity.

When we take the substitute for the perception of consumers, they are many types of vehicles available in market like gasoline vehicles which consume petrol and diesel, Compressed Natural Gas (CNG) vehicles, Hydrogen Vehicle, etc. again it depends upon the knowledge and awareness of consumer.

 

2.     Combine: The combine technique tends to analyze the possibility of merging two ideas, stages of the process or product in one single more efficient output. Sometime in many cases, combining of two innovative ideas can lead to a new technology or product which leads to market strength.

As per assignment electric vehicles having many combined things, even some items which combined in batteries like Zin-ion which help the battery to boost more energy, auto moisture control equipment for batteries, they can also combine cooling kits for EV Li-on battery to regulated the temperature. For Hybrid battery they used more than two electrodes in an electrolyte solution which help to charge faster.

 

3.     Adapt: Adapt refers to a brainstorming discussion that aims to adjust or tweak product or service for a better output. Adaption of new technology is one of the efficient techniques to solve old/new problems through enhancing the existing system.

Now onwards, many EV company is going to adapt the body from plastic bottle which is present in sea or ocean for long period of time because this material already faced the effects of different climatic condition like high or low degree temperature, rainy, etc. so, company is going for it to manufacture the body frame from this hybrid battery. As, we all know that hybrid battery stores a lot of energy in it. If in case it leaks happens, it damages a lot. In the end, they use ocean waste into manufacture the body of highly compactable battery which even reduce the cost of raw material as some extend anyhow.

 

4.     Modify: The modify technique refers to changing the process in a way that unleashes more innovative capabilities or solves problems.

Electric vehicle is already a modify product from gasoline vehicle. But many engineer is modify the electric vehicle at many extend like they installed Lithium-Ion Battery systems which is most popular for portable application of its high power and energy density. This modification also named as Newman model for latest batteries.

 

5.     Put to another use: This technique concerns how to put the current product or process in another purpose or how to use the existing product to solve problems.

By the use of electric vehicle, we can cook our food by the use of induction by taking power from highly compactable powerful battery, we can use it like an invertor for home and many more.

 

6.     Eliminate: As the name implies, this technique aims to identify the parts of the process that can be eliminated to improve the process product or service.

Taking advantage of the fact that electric vehicles need less routine maintenance than ICE cars, electric vehicles decided that they usual arrange the assembling of vehicles in a franchise dealer network in order to reducing costs and grab the market fast. When we talk about Lead- Acid battery they maintenance cost is very low, as we have to fill it up with distilled water only. And company claim upto 1.5 lakh km a battery can use in the vehicles for around 10 years. If in case some fault is come in battery, there will be a panel fault which replace and charges up to Rs. 5000 (approx.) for one panel. In batteries there are 30 panels.

 

7.     Reverse: Finally, the reverse or rearrange technique aims to explore the innovative potential when changing the order of the process in the production line.

For electric vehicle company instead of selling the product for all the days in a month, can they sell only for first ten days in a month.

They feature unconventional falcon wing rear passenger doors which not only lift up like a gull-wing door but also fold near the middle which makes it possible open in tight proximity to walls and other vehicles.

 

 

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