Vinay Kumar Inventory Management Project Report

8/12/2019 Vinay Kumar Inventory Management Project Report

1/86

General introduction

Paper in our Lives-

Printing, Maida and Entertainment

We read over 350 million magazines, 2 billion books, and 24 billionnewspapers a year all printed on paper. Children play with paper dolls, paper masks,

paper board games and paper kites. A tiket to a movie is made o!t o" paper, and soare the ontainers and arryo!t trays "or poporn and drinks. #ven the batteries in $%remote ontrol ontain paper, and dose the $% itsel".

At work and school

&ost o" !s e'pet to "ind paper in shools and b!siness, o!r desks are !s!allyovered with it. $hanks to omp!ters, whih were one e'peted to make o!rs a

paperless soiety, we now generate even more paper than ever be"ore. And o!rmoney, hek stok erti"iates, deeds o" ownership, birth erti"iates and marriagelienses, all the do!ments whih govern o!r lives, are made o!t o" paper.

Packing

(ow wo!ld light b!lbs, water glasses, o" a new mirowave over be shippedwitho!t the orr!gated ontainers that protet them ) $he largest ategory o" paper

prod!ts today is the one we take most "or granted the paperboard. Corr!gated boardis !sed to ship *5 + o" all man!"at!red goods even paper- and is m!h lighter andmore reylable than the wooden raes o" yesterdays.

rozen orange /!ie the ornerstone o" the Amerian break"ast wo!ld be lessonvenient witho!t the omposite "oillined an. And where wo!ld be the break"astwitho!t ereal bo'es, o""ee "ilters, o" egg and milk artons ) #ven sa!sage asingontain paper 1 n some ases yo!r o""eeake is baked, sold, reheated, and served inits original paperboard bo'.

Construction

aper is !sed to b!ild homes. ometimes it serves as a str!t!ral or deorativeomponent, as laminated kithen o!nter tops, ins!lation, gyps!m board, ao!stial

1


2/86

board, wallpaper, "looring, and shingles. aper is the baking material "or maskingtape, sandpaper and eletrial able wrap. And moreover when shelter is needed in an

emergeny, a whole ho!se o!t o" paperboard an be made.

With the above it an be observed that paper has evolved "rom /!st a writings!r"ae to a material that to!hes nearly every aspet o" li"e. Altho!gh it is "re!entlytaken "or granted, it6s hard to imagine what the li"e might be like witho!t paper.

Papyrus

apyr!s has played an important role in history. $he oldest written papyr!s

roll date bak 5000 years, and the word paper itsel" is derived "rom the 7reek and8atin word papyr!s. $he ab!ndane and !tility o" papyr!s on the lower 9ile made itan important symbol in #gyptian arhitet!re and religion, and the availability o"

papyr!s sheets "or reording in"ormation was an important asset to #gyptian r!lers.Witho!t papyr!s, the o!rse o" &editerranean history and literat!re wo!ld have beenvastly di""erent.

$o make a sheet s!itable "or writing, the smooth triang!lar stalks o" the plantwere harvested and peeled and the pith was slied and po!nded together in strips. Aseond layer o" pith was then applied perpendi!lar to the "irst and po!nded to make a

"lat sheet, whih was then polished smooth with a stone, bone, or shell.

I!E"I# #$ PAPE% &

"he 'irth o( paper Making &

A: ;05 is o"ten ited as the year in whih papermaking was invented. n thatyear, historial reords show that $6ai 8!n, an o""iial o" the mperial Co!rt,reported the invention o" paper to the Chinese #mperor. C. Whether or not $6ai 8!n was the at!al inventor o"

paper, he deserves the plae o" owner he has been given in Chinese history "or his rolein developing a material that revol!tionized his ontrary.

$he "irst real advane in papermaking ame with the development o" a smoothmaterial "or the mold overing, whih made it possible "or the papermaker to "ree the

2


3/86

newly "ormed sheet and re!se the mode immediately. $his overing was made "romthin strips o" ro!nded bamboo stithed or laed together with silk, "la', or animal

hairs.

")E I*IA PAPE I*+"%

$he paper ind!stry in ndia is more than a ent!ry old. At present there areover ?00 paper mills man!"at!ring a wide variety o" items re!ired by theons!mers. $hese paper mills are man!"at!ring ind!strial grades, !lt!ral gradesand other speialty papers. $he paper ind!stry in ndia o!ld be lassi"ied into 3ategories aording to the raw material ons!med namely wood based, Agro basedand Waste paper based.

While the n!mber o" wood based mills is aro!nd 20 and balane 5@0 mills are basedon nononventional raw materials.

$he 7overnment o" ndian has rela'ed the r!les and reg!lations and also deliensed the paper ind!stry to eno!rage investment into this setor and /oint vent!resare allowed and some o" the /oint vent!res have also stated in ndia. $he paperind!stry in ndia is looking "or state o" art tehnologies to red!e its prod!tion ostand to !pgrade the tehnology to meet the international standards. $he 7overnment,o" ndia has beome opport!nity "or international players to market their prod!ts in

ndia. $he ind!stry is poised "or a s!bstantial growth to meet the pro/et demand o"?. million tones. t is estimated that the paper ind!stry wo!ld be growing at thepresent rate o" ?.5 + o" ompo!nded rate and wo!ld re!ire @ million tons o" paperby 20;0 "rom the e'isting prod!tion o" aro!nd 4 million tones.

3


4/86

A.I*+"% P%#$ILE

/./ )I"#%ICAL 'AC0G%#+* #$ ")E PAPE% I*+"%

$he paper ind!stry o!pies an important plae, as paper an be p!t to many

!ses it ontrib!tes not only to eonomi development b!t also to !lt!ral

development. $he spread o" ed!ation and literay is bo!nd to inrease demand "or

paper.

aper has a long history, beginning with the anient #gyptians and ontin!ing

to the present day. or tho!sands o" years, hand made methods dominated and than,

d!ring the ;*thent!ry, paper prod!tion beome ind!strialized. Briginally intended

p!rely "or writing and printing p!rposes, a wide variety o" paper grades and !ses are

available to the ons!mer.

$he word paper drives "orm the renh word papyr!sD and is a s!bstane

omposed o" "ibers interlaed into a ompat web, whih an than be maerated into

p!lp, dried and pressed. $oday, paper inl!des a wide range o" prod!ts with very

di""erent appliationE omm!niation, !lt!ral, ed!ational, artisti, hygieni andsanitary, as well as "or storage and transportation o" all kinds o" goods. ts almost

impossible to imagine a li"e witho!t a paper.

$he art o" making paper was "irst disovered in hina, 2ndent!ry >C. "rom

there it traveled slowly towards #!rope. $he end o" ;4thent!ry gave birth e'istene

o" n!mber o" paper mills in taly, rane and 7ermany. t was the year ;*3, as inthat year :r.Charley established a paper mill at sram pore in FWest >engal6.

Gn"ort!nately, it was losed in a "ew years. n ;@?, the royal paper mill was set !p

in West >engal again, >!t the time it was a bally. n ;@@; the !pper ndian opper

mills started operation at 8!k now. oon a"ter $itagh!r paper mills was established

at Cal!tta. $he opening o" the :ean paper mills at !ne and the >engal paper

mills at


5/86


6/86

$he "irst and seond world wars proved help"!l to the paper ind!stry, as paper

was great demand by protetion d!ty levied on imported papers. At the independene

there were less than 20 mills with a total ann!al prod!tion o" 0.;3 &9 tones.

$oday the ind!stries o!tp!t is over @500 &9 tones "orm more than 500 mills in ndia.

$he hallenge "or the ndian paper ind!stry to meet the ever inreasing

demand o" paper, board and newsprint rippled d!e to shortage o" "ibers in the o!nty.

$he "!t!re demand o" paper is e'peted to grow "rom 5.? &9 tones at present to *.5

&9 tones in 20;0 and ;3 &9 tones in 20;5. demand "or rHme wove paper is

e'peted to inrease by to @ perent. :emand "or di""erent kinds o" oated paper

has inreased by @ perent in 2002, d!ple' board has reorded inrease by ?05

perent, Ira"t paper has registered a ? perent rise in demand and newsprint an

impressive ;0 perent.

ndian paper ind!stry an be broadly lassi"ied into paper and paper boardsand newsprint. $he paper and paperboard segment onstit!te o" !lt!ral paper,

ind!strial paper, and speialty paper. We will be treating newsprint as a separate type

o" paper.

n ;*@2 &ysore paper mills began its operation in the prod!tion o" newsprint

with a apaity to prod!e ;5000 tones per ann!m "ollowed by the (ind!stan

newsprint, kerala with apaity to prod!e @0000 tones per ann!m. n ;*@5 $amil

9ad! newsprint and paper limited begin its ommerial prod!tion with signi"iant

progress d!ring the s!essive 5 year plans. At!ally the last deade withnessed

phenomenal growth in the small paper setor.

9!mber o" paper mills, prod!tion apaity and prod!tion o" paperboards is

shown in table ;.;

6


7/86


8/86

$he ma/or players in this setor with their respetive prod!tion apaity are

shown in table ;.2

$he p!bli setor !nits Gs- ontrol a ma/or share o" domesti prod!tion

by s!pplying ?0 to ?5 perent o0" total ind!strial prod!tion. rivate setor players

have very small apaity in omparison to Gs.

/.5 $+"+%E P%#PEC"+ #$ PAPE% I*+"%

$he ind!stry sho!ld be helped to optimize apaity !tilization thro!gh

innovation and modernization o" e'isting large mills. n this onnetion, the prie

"i'ed by the government "or the vario!s types o" paper were !nrealisti and did not

provide "or reasonable ret!rn on apital. As a res!lt the ind!stry was hard p!t to

plo!ghs book "!nds "or e'pansion and modernization with the removal anddistrib!tion ontrol on white printing in ;*@@, paper ind!stry was able to get

rem!nerative pries.

"a3le /.1Leadin& #layers in #aper Industry

Company ame Capacity in Million "PA

$98 0.;@(ind!stan 9ewsprint 0.;;

&& 0.0*9#A 0.0*


9/86

on !nonventional raw material s!h as hard wood paper mills have to !ndertake

plantation "orestry in their s!rro!nding areas.

n the reent years, the prod!tion o" papers and paper boards has reorded

moderate b!t st!dy progress. ndia is now sel"s!""iient in the prod!tion o" most

varieties o" paper and paperboard. Bnly ertain variety o*" being imported.

(owever, ma/ority o" paper mills still !se o!tdated tehnology and mahines.

$o help in the ind!stry the government has taken vario!s meas!res, whih

inl!de e'erise rebate to small !nit6s addition to !stom d!ty, in the import o" paper

grade p!lp and wood hips o" stat!tory ontrol over prod!tion.

'.C#MPA P%#$ILE

/.6 #%IGI #$ M#%E PAPE% MILL L"*,')A*%A!A")I

9


10/86

$he history o" &ysore paper mills goes bak into the dreams o" visionaries

like shri Chama ra/ wodeyar, &ahara/a o" &ysore, laid the "o!ndation stone on the ; st

April ;*3 at the bank o" river >hadra. $he "arsightedness o" the great engineer

>harat hadra.

/.7 G%#2") A* *E!EL#PME" #$ ")E #%GAI8A"I#

$he ompany was inorporated in the year ;*3?, and started with a small

apaity o" 4000 metri tones per ann!m, with a share apital o" B9D where "o!nd to be immediately aeptable.

&& 8$: is a 350 orers p!bli setor ompany, && ltd owns angalore. t is the "irst largest single loation

integrated plant in the o!ntry man!"at!ring newsprint, !lt!ral verities o" paper and

s!gar. $he &ysore paper mills ltd has its owned "orestland o" 30,000 hetors "or

prod!ing the raw material re!ired.

'e &ro(t' and de)elopment of or&ani*ation is s'o(n in t'e table+.

*ate Particulars

10


11/86

20.05.;*3? norporated with an initial share apital o" oilers and ;? &$

$7 to the mills to boost steam generation and inrease the sel"generation o" power. $he ompany has vent!red to obtain B*00; erti"iate to boost its image in the trade o" b!siness to meetthe global ompetition.

2004 B ;4000 erti"iate "or poll!tion ontrol-

n the ;*54, the prod!tion was do!bled to the apaity o" @000 tones per

ann!m by taking a loan o" eing ontrib!ted by the 7overnment o" &ysore.

$he prod!tion inreased to ;@000 &$ in ;*?4 and later to 24000 &$ in ;*2

nd!strial liense was iss!ed on ;3 eptember ;* "or liensing the man!"at!ring to

the apaity "or !lt!ral paper to 30000 &$ per ann!m. etting a news print plant to

prod!e 5000 tones per ann!m. $he &ysore aper &ills >eome a 7overnment

11


12/86

ompany in 9ovember ;* when the state 7overnment inrease its share holding in

the ompany to 5?.2+.

Bne more milestone in the && history is adding newsprint to its prod!t

range, trail prod!tion o" newsprint ommened on ;; a!g!st ;*@;. n ;*@2 a

"orestation pro/et on the government allotted 5000 hetors o" "orest area was

ommened.

/.9 L#CA"I# A* LA#+" #$ MPM

Location&

$he &ysore paper &ills limited is the premier paper prod!er in ndia. t is

loated at >hadravathi in himoga :istrit o" Iarnataka state. >hadravathi is a

developing ity towards 2?0 Im northwest o" >angalore ity. $he plant is sit!ated on

the banks o" river >hadra overing an area o" abo!t 3.@ !are Im. >hadravathi is

developed with the bea!ti"!l laid o!t township and niely b!ilt !arters and there is a

m!niipal orporation also.

Plant Layout&

lant 8ayo!t is done well by arrangement o" di""erent mahinery6s in di""erent

departments like raw material department, hipper department et. $hese departments

are arranged aording to r!les and reg!lation o" plant layo!t. n this paper &ill, the

layo!t "ollowed is arrangement "or high o!tp!t rate, better working onditions and

better s!pervision !p to possible e'tent.

12


13/86

Cultural paper mill:PM-I,PM-II,PM-III;

$here are 3 paper mahines with a apaity o" 20,20,?0 &$K:ay. 9ormallyra"t papers are man!"at!red on &ahine 9o.;E Where as Writing and rinting paper

are &an!"at!red on &ahine 9o 2 and 3.

or man!"at!re o" paper, aptive hemial p!lps are !sed in the re!ired

proportions. $he p!lp admi't!re is treated with vario!s additives s!h as dyes, sizing

hemials, loading material et, depending on the type o" end prod!t to be made.

$he ready stok is then taken to paper mahine and the paper made is res!lted on a

real and spool and a /!mbo roll are made. $he paper made th!s, will be either

onverted into smaller reels, or !t into sheet "orm o" re!ired size as per the market

demand.

$he reels are paked and dispathed. $he sheets o" paper a"ter o!nting are

paked as reams. n the 3rdmahine online !ality ontrol system is installed to

ontrol the basis weight o" paper and indiate the moist!re.

Integrated ugar Mill

!gar mill is also a part o" &ysore paper mill, whih was established in ;*@4.

!gar ane is the raw material, whih is available in and aro!nd >hadravathi and

other in"rastr!t!re "ailities like water, steam power, hemials and workshops,

whih has both s!gar mill and paper mill in a single loation.

$he main advantage o" establishing these two di""erent plants in the same

loation is that bagasses, whih is the byprod!t o" s!gar, instead o" b!rning it is

!sed as one o" the raw material "or paper making. t also red!ed the dependeny on

the "orest raw materials.

!gar mill was started in ;*@4 with an r!shing apaity o" 2500 tones per

day. !gar mill is an integral part o" &ysore aper mills "or the s!pply o" bagasses as

the raw materials "or paper mill to man!"at!re the paper.

13


14/86

$he raw material !sed in preparation o" s!gar ane the s!gar ane m!st be

r!shed with in 4@ ho!rs "rom its !t "rom the "ield. $his s!gar ane is transported to

the && and d!mped in s!gar ane weighing bridge. rom there it is !nloaded !sing

!nloading ranes. Aording to the demand, s!gar ane is "ed into "eeding tale. rom

their s!gar ane is arried by ane arrier 9o.; and d!mped in ane !tter, whih r!ns

at a speed o" 5*2


15/86

b and thro!gh whih rystallized s!gar is passes into p!g mill and then entri"!gals

mahine, where "!rther p!ri"iation is done by the separation o" s!gar and bagasses,

the s!gar moves thro!gh hoppers where dry and heat air at a temperat!re ?5 degree

Celsi!s is passed. $here are three hoppers "rom here s!gar is sent to grades whih

separators di""erent size o" s!gars. !gar is lassi"ied into two sizes standard 30

30- and medi!m 30 &30- this s!gar is taken in s!gar bin and s!gar is in re!ired

amo!nt is taken in the bags and the stithed bags are sent to godowns.

C. P%#*+C" P%#$ILE

15


16/86

$he prod!ts man!"at!red by && ltd are newsprint, !lt!ral paper i.e

writing, printing and paking paper and speialty paper-, s!gar and molasses.

$he "atory is sit!ated at >hadravathi with one mahine "or the man!"at!re o"

newsprint that is & 4 and three mahines "or the prod!tion o" !lt!ral varieties o"

paper they are & ;,2,3 and one s!gar mill !nit. & means paper &ahines.

/.E2 P%I"

&& 8imited prod!es two types o" newsprint. $hey are

;. White news print

2. ink newsprint.

$he newsprint man!"at!red by && limited is s!pplied only to the registered

newspaper agenies and against spei"i orders.

9ewsprint is s!pplied in the "orm or vario!s reels and omes in di""erent sizes. $he

ommon sizes are * ms, @; ms, @;.5 ms, ;?3 ms and 4; ms.

ometimes, speial sizes are also prod!ed depending !pon the orders may ome in

sizes o" ;22 ms, ? ms and 3@ ms.

1.C+L"+%AL PAPE% &

$he !lt!ral variety o" paper are lassi"ied as "ollws

;. Writing paper

2. rinting paper

3. akaging and wrapping paper

4. peial paper

16


17/86

$he above said writing, printing and speial paper are lassi"ied into "ollowing

varieties.

a. Az!r laid J !sed "or ledger paper

b. Colo!r printing J !sed mainly "or printing pine, green yellow and bl!e-

. Gnleaded J low !ality printing paper

d. &7 ribbedJ &7K & plain !sed "or envelope making

e. &7 B$#< J !sed to print lottery tikets and wedding ards

". &7 postal olo!rsJ !sed "or printing ards

g. &7 K & white and olo!red over paper J !sed "or book over

h. &ysore bond

i. $ea label paper

/. $est book printing paper

k. 7reen tint L "or making notebooks

4.+GA%

&& prod!es an average o" 4.5 lakh bags o" s!gar per season in di""erent !alitieslike 2*, 30, and & 30 grades as per spei"iations.

As per the poliy o" government o" ndia by its ministry o" !stomer a""air every

s!gar ind!stry o!ght to !nmark its total prod!tion as detailed below.

17


18/86

;. @5+ o" the total prod!tion is apportioned as "ree sale s!gar entitled to

transated as per open market onditions.

2.


19/86

$he && operated only in ndia.

#2E%)IP

$he ompany has an a!thorized apital o"


20/86

Andrapradesh aper &ills 8td., Andra radesh

a- Mear o" starting L ;*??

b- Ann!al apaity *@.5 L 00 tones per year

- 7rades o" paper L >ase aper, wedding and greeting ards.

$he West Coast aper &ills 8td., :andeli.

a- Mear o" starting L ;*5@

b- Ann!al apaity L ;5.50.00 metri tones per year.

- 7rades o" paper L writing and printing board inl!ding &C< and

opier.

d- t is a private ompany.

I$%A"%+C"+%AL $ACILI" &

&& CA&GJ

&& has got an estate area o" @;5 ares leased by government o" Iarnataka

o" whih 2?? ares is "atory area and 54* ares onstit!te township area.

CB8B9M J

$he olony has ;332 !arters "or the workmen and ;*0 !arters "or the sta""

ategory o" employees and 232 o""ier !arters. $he total available aommodation

in paper town is ;54.

(B$A8 J

20


21/86

A ombined ;? L bed hospital with ? medial o""iers is available "or

employees.

7G#$ (BG# J

A well L "!rnished g!estho!se having 2 rooms, % rooms and 2 g!est

rooms is maintained by &&.

(B$#8 J

An o""ier6s hostel having 4? rooms "or aommodating management trainees,

stipendiary trainees, government., o""iials and ontrator6s loal representatives is

available in the amp!s, bahelors hostel is maintained by the ompany.

C(BB8 J

$he ompany s!pports the "ollowing ed!ational instit!tions

a- aper town N!nior ollege

b- aper town #nglish hool

- aper town (igh hool

d- aper town 9!rsery hool

B$(#< AC8$# J

&& s!pports the "ollowing "ailities in the olony to the employees.

;. && B""ier6s Cl!b

21


22/86

2. && gents rereation Cl!b and 7ymnasi!m

3. B""iers ladies Cl!b

4. %anitha ama/a

5. && sh!ttle badminton Cl!b

?. $ennis o!rt

. && kalyanamantapa

@. 8ibrary K reading room

*. && ooperative soiety.

A2A%* &

&& has got B ;400; erti"iate "or poll!tion ontrol. And also B *00;

erti"iate "or !ality o" prod!t.

AC)IE!EME" &

A n!mber o" initiative have been taken to improve the per !nit energy

ons!mption o" papermaking. Conservation at generation and ons!ming pints has

res!lted in s!bstantial savings. Changing over to variable speed drive system,

operating at improved power "ator, seletion o" appropriate size o" motors,improvement in ill!mination systems are a "ew e'amples o" vario!s meas!res that

have been s!ess"!lly implemented.

/.< 2#%0$L#2 M#*EL &

22


23/86

;. !rhase Brders

At the "irst stage the ompany reeives p!rhase order "rom its agents.$hey are mentioning the prod!t grade, !ality, !antity et.

2.


24/86

$he ne't step is paking. $he !stomers pak the paper boards in

b!ndles as orders.

@. :o!mentation J

>e"ore delivering the paperboard to the !stomers it sho!ld be

do!mented in the stores ledger.

*. :ispathing J

A"ter do!mentation in proper ledger than the ne't proess is

dispathing the goods to !stomers.

/.= $+"+%E G%#2") A* P%#PEC"+ &

&& has got liense to prod!e li!or

&& is initiating new prod!t development

$est marketing o" map litho is in progress.

&& is planning to introd!e opier grade in the market shortly.

&& plans to start distilleries to prod!e distil water.

24


25/86

1. MC0IE> 9- M#*EL #$ #%GAIA"I# "+*

$he "ramework was developed by the ons!ltant at the &kinsey

ompany, a very well know management onsisteny "irm in GA, towards the end o"

;*06s to diagnose the a!se o" organizational problem and to "orm!late programs "or

improvement developed the "rame work.

model o" the ompany is shown in "ig.2.;

&kinsey6s, ons!ltants all Fstrategy6 and Fstr!t!re6 as hardware o" theorganization and other 56s are the so"tware o" the organization.

1./ trategy

t re"ers to set o" deisions and ations aimed at gaining a s!stainable

ompetitive advantage.

"he vision

&ysore paper &ills ommitted to deliver prod!ts and servie to satis"y the

needs o" the !stomers.

$o make ontin!o!s e""orts to improve !ality by ontin!o!s training.

$o ativity involve people to ontrib!te towards high prod!tivity thro!gh

team work and innovation.

25


26/86

$o onsio!sly work towards onservation o" reso!res and minimization o"

wastes o" all "orms.

Mission

C!stomer satis"ation

Consistent O!ality

Competitive prie

ig.2.; &kinsey &odel

26


27/86

model o" the ompany is shown in "ig.2.;

Goals &

>ring down the regional imbalane in paper prod!tion in the state o"

Iarnataka.

&eet the national and regional demand "or paper and paperboard.


28/86

?. $o &eet the national and regional demand o" paper and paperboard.

. nrease market share and red!e ost o" prod!tion.

@. nrease market share and red!e ost o" prod!tion.

*.


29/86

Brganizational str!t!re re"ers to the relatively more d!rable organizational

arrangements and relationships. t presribes the "ormal relationships among vario!s

positions and ativities. Arrangements abo!t reporting relationships, how an

organizational member is to omm!niate with other members, what roles he is to

per"orm by members are all part o" the organizational str!t!re.

#rgani@ational structure per(orms three ma?or (unctions

. t red!es e'ternal !nertainty thro!gh "oreasting, researh and planning in

the organization.

. t red!es internal !nertainty arising o!t o" variable, !npreditable, random

h!man behavior within the organization thro!gh ontrol mehanisms.

. t !ndertakes a wide veri"y o" ativities thro!gh devies s!h as

departmentalization, speialization, division o" 8abor o" delegation o"

a!thority.

%. t enables the organization to keep its ativities oordinated and to have

"o!sed in the midst o" diversity in the p!rs!it its ob/etives.

n &ysore paper &ills organization str!t!re is "le'ible eno!gh to o!nter any

balanes o" the e'ternal environment. $his ompany is also having regional o""ie at

>angalore and to takes any sit!ation in the e'ternal environment.

$he hairman and managing diretor C&:- is in a position to ontrol at the

ativities in the organization. or taking the entire problem he meet the knowledge o"

abo!t both the tehnial and managerial knowledge.

29


30/86

$he diretor o" eah departments are responsible "or the ativities done in theirrespetive departments and answerable and reporting to the C&:.

$he diretors o" the respetive department they will ome !nder the top level

management. Gnder these position 7eneral &anager, :ep!ty 7eneral &anager,

enior &anager and Assistant &anager osition are present they6re ome !nder themilled level management.

n &ysore paper &ills eah department is interlinked with other departments the

eah department has to maintain a good ontrol with other departments.

#%GAI8A"I# "%+C"+%E #$ M#%E PAPE% MILL L"*

30

SHARE HOLDERS

BOARD OF DIRECTORS

CHAIRMAN/MANAGING

DIRECTOR FINANCEDIRECTOR FOREST


31/86

1.4 ystems

$he management believes in the !tilization o" !tting edge tehnology o"

deliver worldlass prod!ts and servies. $he ompany has made h!ge investmentsin tehnologial reso!res to ens!re that prod!ts are s!perior and the servie delivery

in terms o" these prod!ts o""ering standard. $he system o" the &ysore aper &ill

limited ompany learly shows the "ormal proesses and proed!res !sed to manage

the organization, inl!ding the ontrol system, per"ormane management

meas!rement and reward systems, planning b!dgeting and in"ormation system. $hey

"ollow the bottom to top approah in deision making.

31

GENERAL MANAGER

MARKETING

GENERAL

MANAGER

AGMPB!

INCHARGE "#

AGM$PRODUCTION!

COMPAN%

SECRETAR%

GENERAL

MANAGER

AGM$MAINT! AGM HRD&P!

SENIOR MANAGER

CULTURAL PAPER

SENIOR MANAGER

NE'S PRINT

SENIOR MANAGER

MARKETING!

MANAGER

DEPUT% MANAGER

AGMFINANCE!

SER(ICE

MANAGER


32/86

1.5 tyle

$he management believes in an open organization. n &ysore aper &ills ltd.

$hey do not involve employees "or taking any deision. $he management will be

taking the deision itsel" may be in any area like prod!tion deision, marketing

deision. &anagement itsel" takes all "inane deisions.

#'ampleJ in "inane department i" any deision are to be taken only by the top

management.

" any "inane re!irement is needed or any approval needed relating to the

"inane matter, then "inane department will prepare the "oreasting report, the senior

"inane manager and the hairman is an important person to take any deision

regarding management.

1.6 ta((

ta"" re!irement is designed to ens!re that those on board have the primary "o!s

as !stomer servie with a high level o" prod!t and proess knowledge and operatione'ellene. nd!tion and training program are designed to ond!t "or all employees

at reg!lar basis to ens!re that these levels are ontin!ally enhaned "eedbak "or

ontin!o!s improvement in soliited "rom all !nderstood. >eing a dynami

organization s!septible and the hanges are well !nderstood. >eing a dynami

organization to "re!ent hange in poliy so as to s!it b!siness needs that re!ire to

be a learning organization "!l"illed by the systems and proesses whih do!ment all

32


33/86

hanges and "eedbak reeived. :evelopment programmes are ond!ted by &&

every year only "or the persons who are in the management adder. $his helps to

improve their skills and knowledge.

1.7 kills&

n &ysore aper &ills 8td employees are to be rer!ited on the basis o" their

O!ali"iations. $raining "ailities be provided to be both employees both internal

and e'ternal. $here are 3 types o" labo!rs based on their skills they are

;- skilled labo!rs

2- semiskilled labo!rs

3- !nskilled labo!rs

1.9 hared values&

$he val!es shared by the n!mbers o" an organization. $he val!es shared by the

&& &embers are

;.ontin!o!s innovation

2.#mpowrement o" working "ore

3.nstalling a sense o" responsibility in eah employee.

4.o!s on and belie" in employees

5.opern !lt!re

?.Additionla bene"its given by the ompany to its employees

Canteen aility

33


34/86

:earness allowanes

(


35/86

WB$ analysis was d!e in the o!rse o" internship training in the ompany

"or simpli"ied p!rpose and easy re"erene on overall WB$ analysis o" the ompany

as "ollowsJ

"%EG")

irms has its own 5000 ares o" "orest, where #va, Aaia, ine are grown.

irm is getting raw material !ikly "or in time prod!tion.

irm is getting raw material heaply "or the prod!tion o" paper.

Company has e""iient and e'periened employees.

As && is loated on the banks o" river >hadra, it is getting ab!ndant water.

&a/or !stomers are ed!ational instit!te, Gniversity.

7ood marketing network in all so!th ndia.

$hey grow raw material plants within the premises whih red!e the ost o"raw materials.

2EA0E

$here is a "re!ent hange in the top management d!e to politial inter"erene

as it is a p!bli setor "irm.

Company has old and absol!te mahinery.

Company had mare labo!rs than it needed.

$here are so many idol workers.

$here are more wastages, reyling o" these wastages need more ost.

ome o" the employees are engaged in mall praties.

35


36/86

#PP#%"+I"IE A* ")%EA"

With liberalization and opening !p o" the eonomy, the paper ind!stry has

been thrown !p to ompetition "rom the mills within the o!ntry and also "rom

abroad. (igh ost o" energy and other inp!ts, parti!larly in && and "or the

ind!stry in general, has hampered the growth o" paper ind!stry. $he operations o" the

ompany are highly dependent on the newsprint market in parti!lar.

$here is no 7overnment s!pport "or newsprint ind!stry ever sine it was

plaed !nder B78 in ;**5. $he newsprint ind!stry laks d!ty protetion "rom

7overnment o" ndia where the import d!ty levied is only 5+ ompared to W$B

bo!nd rate o" 25+ and no antid!mping d!ty introd!ed despite its reommendation

by the designated a!thority.

&oreover, with the general global eonomi slow down, it is reported that the

total reven!e o" newspapers had ome down drastially with a onse!ential impat

on the newsprint ind!stry. $he low per s!ess"!l in implementing proper systems ininternal ontrol to ens!re that all the assets and properties o" the ompany are

eonomially !tilized. $he internal ontrol system is devised in s!h a way that the

"inanial and other reords are reliable "or preparing "inanial statements and other

data6s "or maintaining ao!ntability o" assets.

$he reports o" both in ho!se internal a!dit and e'ternal a!ditors are reviewed

by the top management and also by the a!dit s!bommittee "rom time to time. $here

is sti"" ompete "rom the private ompanies && did not able to ompete against

these ompanies bea!se organizational !lt!re and behavior o" the employees. And

also delay in deision making and organizational str!t!re and hierarhy

36


37/86

PA%" II

5. I"%#*+C"I# "# $IACE &

$he rimary p!rpose o" any b!siness is to earn "or pro"it. $o earn pro"it the

b!siness has to render some servie. $o ahieve these ativities "inane "!ntion is an

essential element. $here"ore, "inane ativities play a vital role witho!t whih nob!siness an e'ist.

inane is the li"eblood o" b!siness. inane is alloating into "i'ed assets and

!rrent assets. n !rrent assets, working apital has a vital role, whih onsists o"

management o" ash, management o" ao!nts reeivable and management o"

inventories. n all these, inventories have a signi"iant role in !rrent assets.

MEAIG #$ I!E"#%

$he literary meaning o" the word Fnventory6 is stok o" goods. $o the "inane

manager, inventory onnotes the val!e o" raw materials, ons!mables, spares, work in

progress, "inished goods and srap in whih a ompany6s "!nds have been invested.

ine these reso!res are idle when kept in stores, inventory is de"ined as an idle

reso!re o" any kind having an eonomi val!e. $he reso!re may be many types, "or

e'ample, men, materials, mahinery or money. When the reso!res involve materials

or goods in any stage o" ompletion, inventory is re"erred to as stok. (ene inventory

re"ers to the stoks that a b!siness "irm keeps to meet its "!t!re re!irement o"

prod!tion and sales.

37


38/86

EE* "# )#L* I!E"#%

$he !estion o" managing inventories arises only when the ompany holds

inventories. &aintaining inventories involves tying !p o" the ompanies "!nds and

invariane o" storage and holding ost. " it is e'pensive to maintain inventories, why

do ompany hold inventory) $he "ollowing are the reason "or holding inventoryE

/.P%#*+C"I# P%#CE

(olding o" s!""iient inventories o" raw materials beomes neessary in times

o" sarity to prevent stoppage o" prod!tion proess. rod!tion o" omponents in

large bathes will be help"!l to red!e the set!p ost. $his wo!ld nat!rally, res!lt in

holding o" large stok o" materials.

1.$#% P%#PE% $L#2 #$ G##*

!rhase prod!tion and sale are not ontin!o!s ativities. o, there is the

need to arry inventory so that the "!ntion o" p!rhase, prod!tion and sale an

proeed at their own optim!m pae or speed.

4.*IC#+"

8arge p!rhase o" materials an be made to take advantage o" diso!nts

o""ered on b!lk p!rhases, nat!rally, res!lts in holding o" inventories. 8arge orders

may also be plaed to !t down the ordering ost the ost o" heking and handling. A

ompany sho!ld maintain ade!ate stok o" materials "or a ontin!o!s s!pply to the

"atory "or an !ninterr!pted prod!tion. t is not possible "or a ompany to pro!re

raw materials whenever it is needed. A time lag e'ists between demand "or materials

38


39/86

and its s!pply. Also there e'ists !nertainty in pro!ring raw materials bea!se o"

"ators s!h as strike, transport disr!ption or short s!pply. $here"ore, the organization

sho!ld maintain s!""iient stok o" raw materials and a given time to ens!re smooth

prod!tion.

A*!A"AGE #$ )#L*IG I!E"#%&

"he various advantages o( holding inventory are as (ollows&

;.OGCI #


40/86

Ade!ate inventories protet a "irm against the shortages that wo!ld res!lt in

prod!tion stoppages and onsiderable losses.

?.#CA8 C


41/86

*E$IA"I# #$ I!E"#%&

everal a!thors have de"ined the term inventory. $he most pop!lar o" them is

$he term inventory inl!des the rawmaterials, workinprogress, "inished goods,

pakages, spares and other stoked in order to meet an !ne'peted demand or

distrib!tion in "!t!reD.

nventory represents those items, whih are either stoked "or sale, or they are

in proess o" man!"at!ring or they are in the "orm o" materials, whih are yet to be

!tilized.

IMP#%"ACE #$ I!E"#%&

nventories onstit!te the largest omponent o" !rrent assets in many

organizations. oor management o" inventories there"ore may res!lt in b!siness

"ail!res. A stoko!t reates an !npleasant sit!ation "or the organization. Conversely,

i" a "irm arries e'essive inventory, the added arrying ost may represent the

di""erene between pro"it and loss. #""iient inventory ontrol, there"ore, an

signi"iantly ontrib!te to the overall pro"it o" the organization.

C#" #$ )#L*IG I!E"#%&

;.&A$#


42/86

$his inl!des a ost o" p!rhasing the raw materials, transportation and

handing harges and less any diso!nt allowed by the s!pplies o" goods.

2.B


43/86

$his re"ers to the items or materials in partly ompleted ondition o"

man!"at!ring. #'ampleJ emi "inished prod!ts at vario!s stages o" man!"at!re.

'.$II)E* G##* I!E"#%&

$hese re"ers to the ompleted prod!ts ready "or dispath.

C.MAI"AIACE, %EPAI% A* #PE%A"IG "#%AGE&

9ormally, these inventories re"er to those items, whih do not "orm the part o"

the "inal prod!t b!t are ons!med in the prod!tion, proess, "or e'J Bil mahine

spares, grease, et.

*."##L I!E"#%&

nl!des both standard tools and speial tools.

E.MICEAE#+ I!E"#%&

$his inl!des o""ie stationary and other ons!mable stores.

#'BEC"I!E #$ I!E"#% MAAGEME" &

Gs!ally, the ompany is "aed with the "ollowing on"liting ob/etives in the area o"

inventory management.

;. $o arry ma'im!m inventory in order to "ailitate e""iient and smooth

prod!tion and sales operations.

2. $o minimize investment in the nventory in the inventory in order to ma'imize

pro"itability. >oth over investment or !nder investment in inventories is

!ndesirable, as both involve ertain onse!enes.

43


44/86

#ver investmentJ involves the "ollowing onse!enes E

;. Gnneessary bloking o" "!nds in inventory, and hene loss o" pro"it.

2. #'essive storage and ins!rane ost.

3.


45/86

6. *A"A C#LLEC"I# A* P%EE"A"I#

$he reliability o" managerial deisions depends on the !ality o" data. $he!ality o" data an be e'pressed in terms o" its representative "eat!re o" the reality

whih an be ens!red by the !sage o" a "itting data olletion method.

As has been dis!ssed earlier, data an be lassi"ied into primary data andseondary data. $he data whih are olleted "rom the "ield !nder the ontrol ands!pervision o" an investigator is known as primary data. $his type o" data aregenerally a"resh and olleted "or the "irst time.

P%IMA% *A"A&

As stated earlier, primary data are !se"!l "or !rrent st!dies as well as "or

"!t!re st!dies. (ene, it sho!ld be olleted with !tmost are. $he di""erent methodswhih are !sed "or primary data olletion areE

Bbservation methods,

ersonal interview,

$elephone interview and &ail s!rvey.

EC#*A% *A"A&

As stated earlier, seondary data are olleted "rom so!res whih have beenalready reated "or the p!rpose o" "irsttime !se and "!t!re !ses.

ources o( secondary data are as (ollows

ales reords, marketing ativity, ost in"ormation, distrib!tor reports and"eedbak, !stomer "eedbak.

45


46/86

$he data olleted "orm /o!rnals, magazines, government p!bliations, ann!alreports o" ompanies, et., these data are alled as seondary data. n eah o" these

so!res o" data, the proess o" data olletion has already been done by the respetiveorganizationKageny.

7. MA"E%IAL I*E"IG A* P+%C)AE

"EM

A. >ill o" materials

Bn the basis o" shop instr!tion reeived "rom marketing department, theprod!tion planning and servie department sho!ld prepare the bill o"materials.

$he bill o" materials overs eah and every item o" materials re!ired "orman!"at!ring o" e!ipmentKprod!tK goods and "!l"illment o" tehnialre!irements as presribed in the shop instr!tion order. $he bill o"materials sho!ld be a!thorized by the planning &anager or $ehnial n

harge.

>. Gser department J

Gser department sho!ld plan the re!irements o" vario!s ons!mables andstores items in advane in ons!ltation with the prod!tion planning andservie department.

$he !ser department raises the bill o" materials in advane, "orons!mables and other stores items and gets it signed by :epartmental

(ead and a!thorized by prod!tion &anger.

C. !rhase indent J

$he p!rhase indent sho!ld be originated by the stores department.

$he stores department sho!ld mention the stok position in bill o"materials and "ind o!t the !antity to be p!rhased.

46


47/86

$he stores department prepares the p!rhase indent and gets it signed bystores in harge and a!thorized by &aterials &anager.

n respet o" ons!mables and raw materials o" low val!e and "or whihneessary delegation o" responsibility has been done in "avo!r o" the storesdepartment a"ter onsidering stok level and omparing the same with reorder level, i" neessary. !rhase indent an be originated by the storesdepartment and signed by the storesinharge and a!thorized by the&aterials &anager.

$he p!rhase indent sho!ld be prepared in tripliate.

All p!rhase indents sho!ld be serially n!mbered, bearing re"erenen!mber o" the bill o" materials, i" any.

P%ICIG #$ %ECEIP" &

riing o" materials reeived is to be done on the basis o" s!pplier6s invoie.$he ost o" materials may inl!de invoie prie less trade diso!nts pl!stransportation or ha!lage harges, arriage inwards, ost o" loading and !nloading,and handling osts.

$he "ollowing points be kept in mind while alloating the vario!s omm., i.e.,!nalloable or ommon osts o" material reeiptsJ

$he invoie val!e aording to the rate o" di""erent varieties

reight aording to weight.

ales ta' on the basis o" val!e.

Bther harges like transportation, et., on the basis o" weight or vol!me.

ME")#* #$ P%ICIG MA"E%IAL I+E &

A. Cost prie methods

47


48/86

;- pei"i ost method J spei"i p!rhase "or spei"i order or /ob

2- denti"iable ost method J denti"iation o" iss!es with the respetive lotp!rhased.

>. $he at!al ost method

;. pei"i prie method.

Gnder the at!al ost method, the materials iss!ed are pries at their at!alost whih involves identi"iation o" eah p!rhase. $he identi"iation is

possible "or materials p!rhased "or a spei"i /ob.

2. irst in "irst o!t method B-

Gnder the B prie method, stores are iss!ed in the strit order in whihthey were taken into stok. $he oldest stok is iss!ed "irst at its p!rhase prie,then the ne't and so on. $his may res!lt in one iss!e o" stores being omposed o"more than one prie. At the end o" the period, the materials in stok are pried atlast in pries, i.e., latest p!rhase prie.

n the && they "ollow the B method "or the iss!ing o" materials "orthe prod!tion department thro!gh this they provide the materials those "irstomes that they give "irst.

3. 8ast in "irst o!t method 8B-

Gnder the 8B prie method, stores iss!e in the reverse order to the Bsystem. n other wards, materials reeived last are ass!med to be iss!ed "irst inao!nting terms and ost "lows, altho!gh physial iss!es may be di""erent. $hishas the e""et that materials are always iss!ed at or near to their !rrent market

prie, b!t the val!e o" stok remaining in stores is always al!lated at "irst priei.e oldest p!rhase prie.

4. (ighestin"irst o!t method (B-

48


49/86

$his method is based on the ass!mption that it is advisable to maintain theval!e o" inventory at the lowest possible prie. (ene, materials with highest

prie in the stok are iss!ed "irst, irrespetive o" the date o" p!rhase. $hismethod is not pop!lar in pratie. eriod end val!ation o" inventory will be on aonservative basis in the periods o" rising pries.

C. Average ost prie &ethodsJ

;. imple average prie method

Gnder this method, materials iss!ed are val!ed at average prie, whih isal!lated by dividing the total o" all !nit rates by the n!mber o" p!rhases. n otherwords,

Materials Issue price per +nit "otal o( unit prices o( each purchase D "otal

num3er o( Purchase

$his method is !se"!l, i" the materials are reeived in !ni"orm lots o" similar !antityand when p!rhase prie dose not "l!t!ate onsiderably.

2. Weighted average rie J

$his is al!lated by dividing the total ost o" materials in stok andnew reeipts by the relative total !antity. $he iss!e prie is al!lated onreeipt o" materials and this is applied !ntil the ne't lot o" materials isreeived. $his method evens o!t the variations !nder "l!t!ating prieonditions.

3. eriodi simple Average rie &ethod J

$his method is similar to the simple average prie method e'ept thatthe average prie is al!lated at the end o" the predetermined and predeidedperiod, e.g. month, week, et.

4. eriodi weighted average prie &ethodJ

$his method is like weighted average prie method e'ept that the al!lationso" iss!e are made periodially.

5. &oving simple Average rie &ethodJ

49


50/86

$he average prie is al!lated by dividing the s!m total o" simple average !nitpries o" a given period by the n!mber o" pries d!ring that seleted period.

?. &oving Weighted average &ethodJ

Gnder this method, the iss!ed rate is al!lated by dividing the total o" theperiodi amo!nt by the periodi total !antity o" the periods

M2A "otal amount o( the periods D "otal uantity o( the periods

MA"E%IAL C#"%#L&

&aterials need to be ontrolled bea!se materials and s!pplies generallyonstit!te one o" the important assets and ao!nt "or nearly between 40+ to @0+ o"total ost in many ind!stries. $he main aim o" material ontrol is ahievingma'im!m e""iieny in prod!tion and sales with the least investment in theinventory.

$he "ollowing are the tools and tehni!es ommonly applied "or inventory ontrol J

etting !p o" vario!s levels

#onomi Brder O!antity #BO-

A>C analysis

erpet!al inventory reords and ontin!o!s stok taking

%#: analysis.

$he above tehni!es are e'plained as "ollowsJ

A. $iFation o( inventory levels &

i'ation o" inventory levels "ailities initiative proper ation in respet o"the movement o" vario!s materials in time, so that the vario!s materials may

be ontrolled in a proper manner.

;.


51/86


52/86

$here are vario!s ways o" determining the #BO, s!h as setting o!t atab!lation o" ost "or vario!s order !antities !ntil the minim!m ost is

determined or by "orm!la or by !sing a graph. $he most vonvenient way isthe "ollowing "orm!laJ

#BO P S 2 Q Cost o" plaing an order Q :emand "or the period

!rhase prie per !nit Q ost o" storage as + o" total landed ost

n && they were not "ollow the #BO tehni!e o" material ontrolbea!se the there is no ontin!o!s :emand "or the prod!ts it is d!e toomp!tation "orm the other ompanies, some time ost o" p!rhase o"materials is beome more than the ost o" storage or ost o" sales. o that theaording to the demand only they prod!e the paper.

C. A'C analysis

talian eonomist, %il"redo areto, has developed this onept, whihan be applied "or seletive ontrol o" inventories "or ma'im!m oste""etiveness. $his is pop!larly known as always better ontrol orroportional parts val!e analysis.

52


53/86

A>C analysis is an analytial method o" inventory ontrol whih aimsat onentrating e""orts in those areas where attention is re!ired most. t is

!s!ally observed, in pratie, that only a "ew n!mber o" items o" inventoryprove to be more important in terms o" amo!nt o" investment in inventory orval!e o" ons!mption, while a very large n!mber o" items o" inventoryao!nt "or a very meager amo!nt o" investment in inventory or val!e o"ons!mption.

$his tehni!e lassi"ies the vario!s inventory items aording to theirimportane. $he importane o" the vario!s items may be divided on the basis

o" "ollowing "ators, i.e., ;- amo!nt o" investment in inventory, 2- val!e o"material ons!mption, and 3- ritial nat!re o" the item.

n && they "ollow the r!le o" A>C analysis thro!gh this theyahieve target and also "!l"ill the demand "rom the e'ternal. $his is one o" theimportant and !se"!l tehni!e "or the organization "or the betterment in the"i'ation o" the prie o" the prod!ts. $hey provide more onentration onmore val!able prod!ts in terms o" amo!nt o" investment in inventory or val!e

o" ons!mption.

G##* I2A%* $+C"I# MAIL ICL+*E&

;- Colletion o" material where the same has to be olleted "rom 8orryompanies or railways "rom their godown or reeiving the same when they are

delivered at works.

2- :o!mentation and getting the materials inspeted and

3- Arranging "or laims, as re!ired. $he above "!ntions are handled by

53


54/86

a- hipping department

b- nwarding and inspetion department o" stores and

- >!lk material (andling stores.

)IPPIG&

tems o" materials pro!red are two ategories namely

a- mall s!h as pakets, pakages, small tins et, whih are arried by 8orryontrators or by !lk &aterials arried by 8orries and railways in "!ll loads o" lorry or wagon.

n the ase o" smalls, they are to be olleted "rom the lorry ompanies

godowns or "rom railway goods shed 8< 8orry


55/86

the reeipt o" .


56/86

ases are opened and items heked with re"erene to delivery hallan and .B.

paking list or the invoie "or !antity reeived. Any disrepany is noted on the

invoie opy. $hen the material is o""ered "or inspetion to :y. &aterials

!pdtinspetion-. 7enerally, stok items are inspeted by :y. &aterials s!pdt. n

the ase o" arrived o" material and that the material be inspeted vode intimation and

inspetion


57/86


58/86


59/86

AMPLE %ECEI!E*&

Whether the samples reeived are "ree or payable, &< has to be prepared,indiating that the material is "ree or payable as the ase may be.

+%GE" P+%C)AE&

&aterials !rgently pro!res are sometimes diretly reeived by shops or

o""ies. $his sho!ld be avoided. (owever when s!h an oasion arises s!h reeipt

sho!ld be overed by an &


60/86

MA"E%IAL

$he "!ntions o" the materials is divided into J

;- !rhases and

2- tores

P+%C)AE *I!II#&

ndigeno!s !rhaseJ

n the ase o" nonstok items the re!isition "or pro!ring a material omes "rom the

department in need o" the item L alled the ndentor thro!gh a do!ment alled

p!rhase


61/86

plaing o" the order with the s!pplier seleted thro!gh a Jp!rhase orderDp.o-

spei"ying the terms and onditions. or eg, i" the !otation reeived "rom the

s!pplier ontains a la!seprie is #'>angalore, it means the goods are ins!red !pto

>angalore and "rom there onwards the risk is to be borne by the b!yer. n s!h a ase

the .B sho!ld state abo!t the ins!rane over that is made "rom >angalore to

>hadravathi. $he .B sho!ld also spei"y abo!t the terms o" delivery and payment.

A opy o" the .B is sent to stores department.

n the ase o" stok items the re!isition omes diretly "rom the stores L

(olding setion one they hek L in with the arde'D and see that ade!ate stok isnot there.

Imports&

n this ase also the proed!re is the same as in the ase o" pro!rement o"

indigeno!s items. $he re!isition omes "rom the indentor and the !otations are

alled "or "rom overseas s!ppliers and then a omparative statement is prepared andreommendations o" the indentor is alled "or and "inanial on!rrene is obtained to

pro!re the materials. :epending !pon the payment terms L whih may be ;00+

advane payment or thro!gh 8.C the !rhase order is plaed.

or opening a letter o" redit 8C- the "ollowing are re!ired by the bank a

opy o" the .B., Aeptane o" the s!pplier to s!pply the material, :elaration by the

ompany inporting the material that it is not !nder


62/86

$he "!ntion o" the stores at &..& is divided into shipping, storesreeipts

and storesholding. $he shipping division is responsible to arrange "or reeipt o" the

materials ordered "or. $he materials are reeived on door delivery basis or thro!gh

ontrators. Where the materials are o" s!h a nat!re that loading and !nloading is

di""i!lt the materials are delivered diretly by the s!ppliers at >hadravathi. n other

ases the 8orry reeipt is handed over to the ontrator who has been awarded the

ontrat o" olleting the materials "rom the transporter6s godown and delivering at

>hadravathi.

Bne the materials arrives at the shipping department, the materials along with

a material nward &emo &&- is sent to the stores L reeipt setion. n the stores L

reeipt setion the materials is reeived with a opy o" the && whih ontains the

.B.9B., the vehile 9o., lorry reeipt 9o and the !antity reeived.

$hen the indentor is alled in "or inspetion and when the material is "o!nd to

be B.I a &aterial nspetion and nward


63/86

" the goods are "o!nd to be de"etive a"ter inspetion by the indentor, then a


64/86

9. %ECEIP" A* I+E *#C+ME"

$his hapter deals with vario!s reeipts and iss!ed do!ments

%eceipt documents.

M%! :Material %eturned !oucher; -

$his do!ment is !sed "or do!ment iss!ed "or reording o" "resh reeiptsagainst p!rhase order and "or ao!nting o" ret!rn o" materials previo!sly iss!ed onloan. imilar to &< two more "orms in !se are ;- &< "or reeipt o" li!idhlorine and a!sti soda and 2- Cash !rhase tores-.

M% :Material %eturned ote; H

$his do!ments is !sed "or reording o" reeipt o" materials ret!rned "rom the

departments or ontrators, being s!rpl!s to their re!irement. $he materials alsoinl!de !nservieable materials.

! : tock !eri(ication ote;

$his do!ments is !sed "or the p!rpose o" stok veri"iation. Wherever anitem is "o!nd in e'ess o" the balane !antity as per the stok ontrol ard, this e'elis taken to stok. $h!s this do!ment is !sed "or reording the reeipt o" e'ess stok

"o!nd on veri"iation.

!% H :tray !eri(ication %eport;

Whenever the stores themselves take stok o" materials and any e'ess "o!ndd!e to vario!s reasons this do!ment iss!ed, similar to %9.

64


65/86

Issue !ouchers &

.% : tores %euisition;L this do!ment is "or iss!ing materials re!ired by thedepartment. $hese are originated and approved "or withdrawal by o""iers a!thorizedby management. imilar to < two more "orms in !se are ;- material ndent Creditales 2- tationary &aterial ndent.

! - this do!ment is !sed "or ao!nting o" shortages "o!nd on veri"iation.

!% :tray !eri(ication %eport; L this do!ment is !sed "or ao!nting o"shortages or $rans"er to another material ode.

Cheking o" do!ments be"ore iss!e o" materials. ss!ing lerk has to hekwhether all the ol!mns o" the iss!e vo!hers have been "illed !p properly. $his"ollowing drill sho!ld be "ollowed.

;. Chek whether all ol!mns have been a!thorized "or withdrawal by aompetent o""ier.

2. Chek whether all ol!mns have been "illed properly.

3. 9ote the loation o" the material "rom the stok ontrol ard and pik !p thematerial.

4. #nter the !antity at!ally iss!ed in the ss!edD ol!mn or mark 9.indiating there is no stok, as the ase may be.

5. Bbtain the signat!re o" the indenters representative.

?.


66/86

:o!ments !sed "or reording reeipt o" materials "rom the stores, there is need"or two ol!mns, one "or balane whih is generally available and the other "or line

n!mber. imilarly these ol!mns are neessary on ;- tok movement ards and thematerial ledger in ao!nts.

$he p!rpose o" these ol!mns is as "ollows J a"ter posting the reeipt or iss!edo!ment into the stok movement ard, the balane o" stok o" the item is str!k.$his balane in the >inKalane6 ol!mn and 8ine 9BD on all reeipt and iss!edo!ments s!h as &


67/86

3. A!tomati reoniliation between the stok movement ard and the materialledger ard is provided.

4. hysial inventory an be taken with re"erene to stok movement ard or thematerial ledger.

5. :isrepany between the physial balane o" stok and stok movement ard isminimized.

67


68/86

ANN-AL #RO!-"ION

$he "ollowing table is shows abo!t the ann!al prod!tion in &etri $ones in the&&

M#A<


69/86

rod!tion ativity an be show in the "ollowing graph it is easy to !nderstandthe apaity o" prod!tion o" the paper in &&.

Above graph is abo!t the ann!al prod!tion "rom the 20050? to 200@0*.rod!tion is grad!al inrease !p to the 2000@ a"ter that prod!tion ativity isdeline to the ;*.35.&.$. it is may be d!e to ompetition or shortage o" rawmaterials

$o inrease the prod!tion ativity they m!st take good strategy like !ality o"the paper and good servie to the dealers and also rovide attrative diso!nt "or b!lk

69


70/86

p!rhase o" paper keep in to!h with the dealers. And also maintain reg!lar ontratwith the raw material s!pplier "or the ontin!o!s prod!tion ativity

!IS#A"

70

ear *ispatch

20050? 4@;2.2

200?0 45;0.@*

2000@ 33*?.02

200@0* [email protected]

200*;0 [email protected]


71/86

Above table tells abo!t the total ann!al dispath o" paper K "inished prod!ts itan easily !nderstand by seeing the "ollowing graph. $his an be e'plained "rom theyear 2005200? to 200*20;0.

71


72/86

Above graph is pertaining to the total ann!al dispath o" the paper "rom the

20050? to 200*;0. n this graph we an know abo!t the grad!al derease in thedispath o" the paper "orm 45;0.@* &.$ to [email protected] &.$. it is d!e to the orders ordemand "rom the !serKdealers or break down in the prod!tion mills and so on.

72


73/86

"losin& stoc/ of t'e last fi)e years

73

Mear Closing tok

20050? 2203.?;

200?0 2*4.3

2000@ 0?.*

200@0* ;@.?0

200*;0 5*52.5


74/86

$his table shows the losing stok o" the year 20050? to 200*;0 it is allabo!t the stok at the end o" the "inanial year. $his table an be shown in the"ollowing graph

Graph showing the closing stock o( the MPM o( last (ive year

74


75/86

We ome to the losing stok it is very important to take "!t!re deisionregarding the p!rhase o" the stokKraw material "or the prod!tion proess. $he

losing stok o" the previo!s year is beome the opening stok o" the ne't year. n theyear 20050? the losing stok is abo!t 2203.?;, in 200?0 it is 2*4.3 it will raiseompare to the previo!s year, in 2000@ it is 0?.* totally derease d!e to the more

prod!tion ativity, in 200@0* it is ;@.?0 and in 200*20;0 it is over all more thanthe last "o!r years that is 5*52.5 bea!se low prod!tion ativity.

IN$ENORY $AL-E OF E M#M

75


76/86

B88BW97 $A>8# (BW $(# 9%#9$B


77/86

$his graph shows the over view o" the inventory and its val!e in the &&"rom 2005 to 200*. t is inreasing year by year in 2005 it is 25.** and in the year200* it is 3;.43. $he inreasing inventory a!ses more risky.

I. ANALYSIS OF FINANCIAL STATEMENT

I) *+ ,-. -++-)* ) -- .*))- .-". )#- ).+")* *

..*)- +: #*"# #- * "";)*< )#- .*) ".**< )#- *"*

+*)* )#- "= *)# -. "). ++)-= - " -)-") )#- -).,- ++-)+$ T#- ;")* )#- "";)+ -.)=-) *+

) .-". )#- ,.*;+ ).+")* )#- "= * *"* )-.=+ .) .= )#-

?;)*))*,- .-".+ -"-++. ) - =*)*-$

77


78/86

A+ -. )#- "- +#--) .*) ++ "";) )#- "= )#-.-

*+ *".-+*< * +-+ R+ 39405$45 #+ * 2008 RS$ 42490$72 #+ * 2009

)#- "= *+ .-+-) "-=*" -. *) #+ )#- .*) R+$ 1632$93$ ;) )#-B"- ++ .;"*+- D;) & C-++

42490$72

1142$74

39405$45

1570$97

78


79/86

O)#-. I"=-

(.*)* * S)"+

P.*. P-.* A;+)=-)

-)! N)- 4$09!

B$EPENDITURE

R M)-.* C+;=-

C#-=*" C+;=-

S).-+ C+;=-

R-*. & M*)-"-

P-. F;-

L. "#.-+-+

S-*< E>-+-+

3$01

3$02

3$03

3$04

3$05

3$06

9210$67

4641$05

903$47

1047$18

13680$67

1220$40

7042$33

771$61

778$17

41347$98

2771$36

259$08

569$00

37834$48

3939$39

251$30

229$10

43809$42

39305$55

9864$00

4732$48

781$08

1230$04

10168$42

1521$94

8294$88

1092$00

887$42

42254$27

38572$26

79


80/86

C$ P.*) . )#- -.

-.- I)-.-+):

D-.-"*)* & T>)*

D$ I)-.-+)

E$ D-.-"*)* 3$07

4503$87

1864$19

994$86

3682$01

2163$66

992$65

F$T>)*F.*

N-) P.*) . )#- -.

A B"- L++ !

.;


81/86

>A8A9C# (##$ A A$ 3;$&A


82/86

C*) '.+ * P.


83/86

G$MISCELLANEOUSEPENDITURE) )#- ->)-) ).*))- . ;+)-!(RS P=-) N)- 4$14

H$ PROFIT & LOSSACCCOUNT

T) C T H!

2$14 3378$53

9340$24

14291$14

12239$34

10409$35

31820$63

497$37

3202$29

28884$61

0$00

4835$23

35520$30 33719$83

83


84/86

II. LEARNING EXPERIENCE

I) + -.*-"- ) . * )#- =;");.*< .


85/86

T#- .-+-))* )#- ) ")-)+ * )#- .-.) #+ *=.,-$

L-.*< )#) ")*;;+ .")*"- " =- )#- -..="- )++ -+*-.

.-;"- )#- "==*)=-) -...+ #-"- )#- ")*,*)*-+ .-

-..=- +=)#$

L-.*< .-


86/86

Documents

Vinay Kumar Inventory Management Project Report