MIT SCHOOL OF BUSINESS

Assignment no. 1

Operations management

Submitted by

Nilambari babar

Roll no. 340459

Division: D 34th batch

 INTRODUCTION

The idea of cashless economy is very much interesting and is growing faster as
it reduces n number of illegal activities and transactions. Making india a
cashless economy is a big step as india is not yet digitalized in all places like
rural area are still left which are unaware about these sources.

Now the step has been taken to to make india as a cashless economy where al
transactions will be made online or there will be use of less cash.
As we know that bank is the major source for all the transactions which are
made hence the cashless economy concept is also related to bank. Bank
provides us the ways for online transaction. Different modes of online
transaction are internet banking, debit cards, credit cards, E- wallet, etc.
The advantages of being cashless economy are as follows-
Gives convenience to customers to not carry cash with them. In case of
internet banking they do not have to carry ATM cards with them.
Reduces chances of forfeit currency
Less need to print paper currency.
Being cashless loans will be sanctioned within 5 to 10 minutes by digital
working of system.
All transactions will become visible and hence they are taxable and
encourage people to transact legally.
The disadvantages of cashless economy are as follows:-
As majority population resides in rural areas they still depends on bank
and in spite of having credit cards their use is limited.
More than 90% of the population of rural area work in unorganized sector
and it will be difficult for them to accept these changes.
People will go for cashless transaction only when they will find it easy to
use.
Government have to take proper steps to enhance cashless economy by
discarding cash payments.

For making India a cashless economy the first factor which is to be

considered that first we have to create general awareness among the rural
 population of India so that they are aware about the use of this cashless
economy.

Different elements which will form a network are:-

A
D

C E H

The activities includes different parameter:

A: BANK
Bank is one of the major activity
Account opening is the first step
It requires minimum 3 days
B: CREDIT CARD
These are provided by banks for online transaction
It requires minimum 15 to 30 days.
C: NET BANKING
Net banking is electronic payment system which enables the
customers to conduct a range of financial transactions.
All banks of India provide this net banking system
It requires minimum 7 days to connect your account.
D: digital wallets
An electronic device which helps an individual in making an electronic
transaction.
 As it does not require much time to transfer your funds so minimum
time will be in some seconds only.
E: UPI
It is the cheapest method of fund transfer.
Minimum charges required are 2.5 rs for transfer.
F: USSD
It gives you the facility for transferring your funds and gives access to
bank accounts.
0.50 rs is charged per transaction.
H: payment mode
This is the final mode of payment where all the transactions are complete
and the funds are transferred to the end user.

For such kind of activities we use CPM and PERT analysis using the
network diagram which will help in alignment of all the activities and time
estimates of each activity.
For the following activity to be undertaken we will use PERT technique:-
Pert is used for coordinating long term projects. It help to identify critical
activity. It is a probalistic model and gives the perfect time estimate for the
activity. It is more useful in research & development.

The following table give us the entire review of the PERT analysis:-

To: optimistic time

Tp: pessimistic time
Tm: most likey time
Expected time is calculated by: To+4Tm+Tp
6
From the above table we can say that the different activities involved in the
network are related to the same factor that is bank. Bank is one of the most
important activity through which all other activities are dependent. Though
they are independent in its individual nature but these activities are
important as they provide us cashless transaction and is helpful for making
the economy digitalized.

This technique is useful for calculating time for each activity and the
predecessor for the activity will be firstly the bank. Through bank all the
activities are emerging and helps in the formulation of network.

Estimated time has been calculated. We cannot predict individual time

exactly which is needed for each and every activity as their estimated time
and duration are different.

The charges incurred for different activities are:-

Paytym: it charges 4% of the total cost

NEFT: 2.5 rupees upto 1 lakhs.

USSD: sms charges applicable as it is a mobile service.

UPI: less than 1 rupees per transaction.

Now the critical path method for the above activity would be:-

A C E H

The critical path which is calculated for the network would be total 9 days.
On the same line different activities have their own critical path but the
above one is maximum.

Hence we can conclude that in this assignment PERT analysis was

beneficial for calculating the time estimated for each activity.
 BANKING CARDS

USSD

BHIM

AEPS

Start

Bank UPI
PAYMENT

MOBILE BANKING

INTERNET BANKING

POINT OF SALE
PRE PAID CARDS