Required: (i) With reference to the garage door installation services provided by Rathvaan Pvt. Ltd. during the month of April 2024, carry out a…

CA Final · Integrated Business Solutions (Multidisciplinary Case Study) · RTP · September 2025
Required: (i) With reference to the garage door installation services provided by Rathvaan Pvt. Ltd. during the month of April 2024, carry out a Pareto Analysis (80/20 rule) of Total Parts. (ii) Using the same data carry out the second level Pareto Analysis on the type of services with respect to Motors only. (iii) Give your RECOMMENDATIONS on the basis of your calculations in (i) and (ii) above. (Do calculations to two decimals only)

Suggested Answer and Working Notes:

7 (i) Statement Showing "Pareto Analysis of Total Parts" Parts No. of Items % of Total Items Cumulative Total Motor 34 31.19% 31.19% Trimmer 24 22.02% 53.21% Track 21 19.27% 72.48% Door 12 11.01% 83.49% T-Lock 10 9.17% 92.66% Miscellaneous 8 7.34% 100.00% (ii) Statement Showing "Pareto Analysis of Type of Services (Motor)" Type of Services No. of Items % of Total Items Cumulative Total Adjust 17 50.00% 50.00% Lubricate 10 29.41% 79.41% Install 4 11.76% 91.17% Replace 3 8.83% 100.00% (iii) Pareto Analysis is a rule that recommends focus on most important aspects of the decision making in order to simplify the process of decision making. The very purpose of this analysis is to direct attention and efforts of management to the area where best pay-off can be achieved by taking appropriate actions. Pareto Analysis is based on the 80/20 rule which implies that 20% of the products account for 80% of the revenue. But this is not the fixed percentage rule. In a general business sense, it means that a few of the products, goods or customers may make up most of the value for the firm. The present case stands in a difference to the 80/20 rule. Because the company installs doors, they sometimes have multiple service calls to install each door piece by piece. They may have to install, replace, adjust, or lubricate some part to get the door working properly. They work with five main parts: door, motor, track, trimmer and t-lock. The service calls with reference to motors are heavy and accounted for as much as 31.19% of the number of calls attended. Motor together with trimmer accounted for 53.21%. So, these two parts are to be considered as key parts and Rathvaan must be ever ready to cater to all provisional requirements for attending these classes without any inordinate delay. Any delay in service these calls is likely to damage its service rendering reputation within a very short span of time. Further, the second level Pareto Analysis on motors has revealed a particular reference to the service problems related to motors. Adjustments and Lubrication issues cover up 79.41% of the total service problems
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