sindhu's project

Upload: bkamith

Post on 04-Jun-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/13/2019 Sindhu's Project

    1/54

    A STUDY ON INVENTORY MANAGEMENT

    STATEMENT OF PROBLEM A study of inventory management at Jagadamba Container is undertaken in order toknow the inventory performance and position of the company and to know the strengthand weakness and to assess the profitability of the company. Inventories constitute mostsignificant part of assets of large majority of the companies in India. Inventory a doubleedged sword is usually an asset of an organization, if not used properly it will becomeliability. It is therefore absolutely very important to manage inventories efficiently andeffectively in order to overcome unnecessary investment. And To identify the

    problems/challenges involved in the Inventory Management process at JagadambaContainer.

    OBJECTIVES OF THE STUDYThe main objectives of the study are:-

    OBJECTIVES:1.To study the tools and techniques of inventory management adopted at

    Jagadamba Container.2. To study the inventory control measures in inventory management.3. To study the demand forecast of inventory management at Jagadamba container.4. To study how ABC analysis and aging schedule is implemented in inventory

    management.5. To determine the stock level in inventory management at Jagadamaba container.6. To identify problems related to inventory management and to find out suitable

    measure to overcome them.7. To study the methods of valuation of inventory on Jagadamba container.8. To study the inventory management procedure.9. To make a comparative study of inventory management in last 5 years using ratio

    analysis technique.

  • 8/13/2019 Sindhu's Project

    2/54

    Methodology of data collection a) Primary data The primary data is collected by personal interviews with officials.

    b) Secondary data

    Files, annual reports, periodicals, manuals and text book. Which have already been passed through the statistical process are the secondary data used.

    c) Field workThis was undertaken individually to collect various information regarding the study byvisiting the following sections.

    Stores departmentsInformation regarding stocking of materials receipts and issues to workshops .Inventory

    control procedures in various wards inside the department were obtained.Accounts departmentRemaining all the information was obtained from accounts department through personalinterviews with section officials.Plan of analysisThe analysis and interpretation was collected from finance department thus processed andtabulated is in the form of tables and graphs. The table thus obtained by calculatingaverage, percentage, turnover ratio, graphs and diagram in respect of the stock of rawmaterials sales & inventory control procedures and thus to draw conclusion from theanalysis done.Scope of the study

    This study is to find the facts and opinions of inventory management andcontrol at Jagadamba container.

    In accordance with the present trends it aims mainly at finding out the inventorycontrol procedures at Jagadamba Container.

    This study gives the brief information about the inventory management of the indoJagadamba Container.

    The study was done by using annual reports, inv entory manualetc.

    Limitation of the study

    Time restriction was only 30 days of project work in the organization. The information, which was needed, could not be made public by the organization.

  • 8/13/2019 Sindhu's Project

    3/54

    The study are related to Jagadamba Container, Ernakulam The finding and suggestion cannot be generalized. The study covered a wide concept hence wide collection and coverage of

    information was not easily possible.

    INTRODUCTION TO INVENTORY MANAGEMENT Inventory is a list for goods and materials, or those goods and materials themselves, heldavailable in stock by a business. Inventory are held in order to manage and hide from thecustomer the fact that manufacture/supply delay is longer than delivery delay, and also toease the effect of imperfections in the manufacturing process that lower productionefficiencies if production capacities stands idle for lack of materials.

  • 8/13/2019 Sindhu's Project

    4/54

    The most important objective or inventory control is to determine and maintain anoptimum level of investment in the inventory. Most companies have now successfullyinstalled one or the other system of inventory planning and control.Inventory management and Inventory Control must be designed to meet the dictates of

    the marketplace and support the companys strategic plan. The many changes in marketdemand, new opportunities due to worldwide marketing, global sourcing of materials,and new manufacturing technology, means many companies need to change theirInventory Management approach and change the process for Inventory Control. Despitethe many changes that companies go through, the basic principles of InventoryManagement and Inventory Control remain the same. Some of the new approaches andtechniques are wrapped in new terminology, but the underlying principles foraccomplishing good Inventory Management and Inventory activities have not changed.

    The Inventory Management system and the Inventory Control Process providesinformation to efficiently manage the flow of materials, effectively utilize people andequipment, coordinate internal activities, and communicate with customers. InventoryManagement and the activities of Inventory Control do not make decisions or manageoperations; they provide the information to Managers who make more accurate andtimely decisions to manage their operations.The basic building blocks for the Inventory Management system and Inventory Controlactivities are:

    Sales Forecasting or Demand Management Sales and Operating Planning Production Planning Material Requirements Planning Inventory ReductionThe emphases on each area will vary depending on the company and how itoperates, and what requirements are placed on it due to market demands. Each ofthe areas above will need to be addressed in some form or another to have

    successful program of Inventory Management and Inventory Control.

    NEED TO HOLD THE INVENTORIESThere are the four major reasons for holding inventories.1. TRANSACTION PURPOSE:Which emphasized the need to maintain inventories to smoothen production and sales

  • 8/13/2019 Sindhu's Project

    5/54

    operations, which is for the day-to-day use.2. SAFETY PURPOSE:Which necessities holding of inventories to guard against the risk of unpredictablechanges in the market.

    3. SPECULATIVE PURPOSE:There is a speculative element which influences the decision to increase or decreaseInventory levels to take advantage of price change.

    TYPES OF INVENTORIES:Inventories can be classified in terms of its different uses, which will enable one toappreciate the peculiarities and problems in its uses. Secondly the differentiation basedon uses of inventories will enable one to adopt control techniques to suit the needs

    Inventories are classified according to uses and point of entry in the alteration is asfollows:1. Raw Material2. Spares and Consumables3. Work in Process Goods and4. Finished Goods

    Reference : http://seminarprojects.com/Thread-inventory -management#ixzz29YC4Z5ox

    http://seminarprojects.com/Thread-inventoryhttp://seminarprojects.com/Thread-inventory
  • 8/13/2019 Sindhu's Project

    6/54

    ACHIEVEMENTS AND AWARDS IF ANYInside outside Mega Show 2008

    1. 1st prize CHENNAI

    2. 2nd

    prize HYDERABAD

    FUTURE GROWTH AND PROSPECTUS

    The first and foremost objective of the film is to maintain the quality of productTo be the leader in the Window blind industry, this is the major goal of Mattscorner India pvt.ltd.

    To expand operations to foreign countries To acquire the North Indian market To maintain the quality of products To maintain a healthy competition with the competitors To regulate production process without damages/defects

  • 8/13/2019 Sindhu's Project

    7/54

    INTRODUCTI

    ON

  • 8/13/2019 Sindhu's Project

    8/54

    INVENTORY MANAGEMENTCONCEPTS, MEANING, AND NATURE OF INDUSTRY

    The dictionary meaning of inventory is stock of goods, of a list of goods. Variousauthors understand the word Inventory differently. In accounting language it may meanstock of finished goods only. In manufacturing concern, it may include raw materials,work in process and stores etc. to understand the exact meaning of inventory of the wordinventory we may study it from the usage side or from the side point of entry in theoperations. Inventory includes the following things:

    RAW MATERIAL

    Raw material from a major part input in to the organization. They is required to carry out production activities uninterruptedly. The quantity of materials required will bedetermined by the rate of consumption and the time required for replenishing thesupplies. The factors like availability of raw materials and government regulations, etc. toaffect the stock of raw materials.

    WORK IN PROGRESS

    The work in progress is the stage of sticks, which are in between raw materials andfinished goods. The raw materials enter the process of manufacture but they are yet attainthe final shape of finished goods. The quantum of work in progress depends upon timetaken in the manufacturing; the more will be the amount of work in progress.

    CONSUMABLES

    These are the raw materials, which are needed to smoothen the process of production.

    These materials do not directly enter production but they act as catalysts etc. consumablesmay be classified according to their consumption and criticality. Generally consumablestores do not create any supply problem and form a small part of production cost. Therecan be instances where these materials may account for much value than the rawmaterials. The fuel oil may form a substantial part of cost.

  • 8/13/2019 Sindhu's Project

    9/54

    FINISHED GOODS

    There are goods in which are ready for the c onsumers. The stock of finished goods provides a buffer between production and market. The purpose of maintaining inventory

    is to ensure proper supply of goods to consumers. In some concerns the production isundertaken on order basis, in these concerns there will not be need for finished goods.The need for finished goods inventory will be more when production is undertaken ingeneral without waiting for specific orders.

    SPARES

    Spares also form a part of inventory. The consumption pattern of raw materials,consumables, finished goods are different from that of spares. The stocking policies of

    spares are different from industry to industry. The investment in inventory is very high in most of the undertakings engaged in

    manufacturing, wholesale and retail trade. The amount of investment is sometimes morein inventory than in other assets. An efficient system of inventory management willdetermine

    What to purchase How much to purchase

    From where to purchase Where to store etc

    There is conflicting interest of different departmental heads over the issue of inventory.The finance manager will try to invest less in inventory because of him it is an idleinvestment, whereas production managers will emphasis to acquire more and moreinventory, as he does not want any interruption in production due to shortage ofinventory. The purpose of inventory management is to keep such that neither there isoverstocking nor under stocking. The overstocking will remain a reduction of liquidityand starving of other production processed: under stocking, on the other hand will resultin stoppage of work. The investment in inventory should be kept in reasonable limits.

    Inventory Turnover Ratio Meaning

  • 8/13/2019 Sindhu's Project

    10/54

    This ratio indicates the speed at which inventory is converted in to sales, whichcontributed, to the profits of the organization. Higher the ratio the better will be theefficiency.

    Inventory Conversion PeriodMeaning

    This ratio indicates the number of days taken to convert the inventory and very useful indeciding the organizations efficiency. It also helps to show financing institutions abouttheir efficiency, to obtain finance from them.

    Duration of raw Material StageMeaning

    Duration of raw material means that the number of days taken for the production unit toconvert the raw material into work in progress and to finish well, this helps theorganization to know the current requirements of the stock of other items likeconsumables and spares for the future process.

    Duration of the finished goodsMeaning

    This indicates the duration of conversion of finished goods into sales. It is also called asfinished goods holding period.

    1.4 REVIEW OF LITERATURE

    The Purchasing Manifesto

    PurchTips Edition #145 February 12, 2008

    By Charles Dominick, SPSM

    Are You Communicating Purchasings Benefits?

    Because it can be difficult to gain buy -in from functional departments when trying toget them to accept Purchasings involvement. It is important to h ave a list of reasons why

  • 8/13/2019 Sindhu's Project

    11/54

    it will benefit them to work with Purchasing. So I encourage you to develop such a list - aPurchasing Manifesto, if you will to aid in your efforts to sell the value of workingwith Purchasing.

    Here is an example of four points you can include in your Purchasing Manifesto.1. Purchasings Involvement Allows You To Focus On Your Core

    Competency. You have a very important role in the organization. Your expertisein your function makes you valuable. With Purchasing handling your procurementactivities, youll be able to spend more of your time on what you do best.

    2. Purchasings Involvement Helps You Avoid Last Minute Crises.Your department is very busy with many competing priorities. In manydepartments that meet that same description, procurement activities are often putoff until the last minute. This results in failure to find the best value in the market,

    paying expediting shipping charges or, worst of all, not obtaining goods andservices on-time. Purchasing can help you avoid these headaches.

    3. Purchasing s Involvement Gets The Most Out Of Your Budget.Unless your department invests in negotiation training for its staff and gives themthe daily opportunity to negotiate with suppliers, suppliers may have an advantagein bargaining. Because the purchasing staff regularly receives negotiation training,negotiates daily, and keeps up to date with the latest cost saving techniques,Purchasing can help save your department money and alleviate some of your

    budget constraints. 4. Purchasings Involvement Can Uncover Unforeseen Obstacles.

    Whether it be seeing the warning signs of a supplier in financial trouble,identifying a material in short supply, or just knowing the typicaltimelines associated in getting the goods or services you need,Purchasing reduces risks to your departments operations.

    1.5 STATEMENT OF PROBLEM

  • 8/13/2019 Sindhu's Project

    12/54

    TITLE OF THE STUDY:

    Inventory Management in Matts corner India pvt ltd.

    One of the most important areas in the day-to-day management of thefirm is the management of the inventory. Inventory management is thefunctional area of finance that covers the efficiency of a manufacturing firm.It is concerned with the management of inventories as well as efficiency incost reduction. The study helps in evaluating efficiency of inventorymanagement of Matts corner India pvt ltd.

    1.6 OBJECTIVES OF STUDY

    The main objectives of the study are,

    1. To understand the various techniques of inventory management and its control.2. To understand the effectiveness of inventory management through various

    techniques.3. To analyze the function, procedures in inventory management.4. To study the control measures in inventory management.5. To make a comparative study of inventory management in the last three years.

    6. To introduce stock levels for the proper management of the department.

    1.7 NEED FOR STUDY

    Inventory Management must be designed to meet the dictates of market place and supportthe companys Strategic plan. The many changes in the market demand, newopportunities due to worldwide marketing, global sourcing of materials and newmanufacturing technology means many companies need to change their InventoryManagement approach and change the process for Inventory Control. This system

    provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with customers.Inventory Management does not make decisions or manage operations; they provide theinformation to managers who make more accurate and timely decisions to manage theiroperations.

  • 8/13/2019 Sindhu's Project

    13/54

    To know the effectiveness of inventory management in the company. To know the importance of inventory management. How to maintain average inventory level in an organization. For finding the inventory conversion period. To study the overall inventory transactions done in a company.

    1.8 SCOPE OF THE STUDY

    The first step in developing a system for materials management is to choose the right typeof classification for the materials and then apply appropriate techniques such as:

    The economic order quantity (EOQ) formula Bulk ordering with time phased delivery A fixed order quantity system A fixed order period system A probability based trade off matrix Speculative consideration

    All these controls are applicable to inventory management in all industry, but since thetime allowed for this project is limited. The assessments are included under the headinganalysis and interpretation of the data

    1.9 RESEARCH METHODOLOGY

    Research methodology simply refers to a methodical study in order to prove ahypothesis or answer a specific question. Finding a definitive answer is the central goalof any experimental process.

    RESEARCH DESIGNResearch design means a search of facts, answers to question and solution to the

    problems. It is a prospective investigation. Research is a systematical logical study of anissue or problem through scientific method. It is a systematic and objective analysis andrecording of controlled observation that may lead to the development of generalization,

    principles, resulting in prediction ultimate control of events.

  • 8/13/2019 Sindhu's Project

    14/54

    Research design is the arrangement of conditions for the collection and analysis of data inmanner that aims to combine relevance to the research purpose with relevance toeconomy. There are various designs, which are descriptive and helpful for analyticalresearch.

    In brief a research design contains

    A clear statement of the research problem. A specification of data required Procedure and techniques to be adopted for data collection. A method of processing and analysis data Identifying the statement of the problem. Collection of the companys specific literature i.e., annual reports for the study

    period and the profile of the company. Scanning through standard books to understand the theory behind the financial performance evaluation

    Collection of information from various journals to understand the industrial background of the study.

    Sources of data:

    There are two sources of data. They are as follows

    1. Primary data2. Secondary data

    Primary dataThis data was collected through discussion with concerned officers by sitting withthem in free time.

    Secondary dataIt is reviewing of relevant information, which is already collected and making

    inferences based on the information collected.The secondary data used in the study are

    1. Annual Report of the company2. Financial Records of the company3. By viewing how they place order

  • 8/13/2019 Sindhu's Project

    15/54

    Tools and Techniques:

    A financial analyst can adopt the following tools for analysis of the financialstatements. These are also termed as methods of Financial Analysis. The tool and

    techniques used in the study are following1. Inventory analysis and interpretation.2. Current ratio and quick ratio analysis.3. Statistical techniques.

    1.10 LIMITATIONS OF THE STUDY

    1. Time constraint2. All the informations could not be made public by the organization.

    3. A thorough discussion with all officials was not possible due to their busyschedules.

    4. The study covered a wide concept and owing to the above constraints, widecollection and coverage of information was not possible.

    5. Financial statements are essentially interim reports:6. Influence of personal judgment:

  • 8/13/2019 Sindhu's Project

    16/54

  • 8/13/2019 Sindhu's Project

    17/54

    CHAPTER 2ANALYSIS ANDINTERPRETATION

  • 8/13/2019 Sindhu's Project

    18/54

    Plan of Analysis

    The data collected through primary and secondary sources were processed and presentedin the chapter. Data analysis by charts in respect of stock of raw materials, sales,

    inventory control procedures and thus to draw conclusion from the analysis done. Data Analysis

    Evolution of Primary Data: Data collected through discussion with top management andother departments like, Accounts, stores etc. From the discussion, I came to know that theMatts Corner has both types of inventories. i.e., Physical and value based inventories.The inventory system here is fully computerized. Purchasing department is supplying theraw materials required by the production or service unit.The company is following Determination of stock level inventory management

    technique.It includes:1. Maximum Level2. Minimum Level3. Re-order Level4. Danger LevelInventory Turnover ratio:Concept:

    This ratio indicates the speed at which the inventory is converted into sales, whichcontributed, to the profit of the organization. Higher the ratio better will be the efficiency.

    Inventory turnover ratio = cost of sales / Average inventory

    Table showing cost of sales, average inventory and inventory turnover ratio.

    Table-2 .1 Inventory TurnoverRatio

    Year Cost of Sales Average Inventory Inventory

  • 8/13/2019 Sindhu's Project

    19/54

    Turnover Ratio

    2010 - 2011 9689186 543222 17.83651251

    2011 2012 7564020 478765 15.79902457

    2012 - 2013 8041837 497557 16.16264468Source: Annual Report

    Chart-2.1 Inventory Turnover Ratio

    Analysis

    Inventory turnover ratio in 2010 11 is 17.83 and it decreased to 15.79 in 2011 12 andin the year 2012 13 it increased to 16.16.Interpretation

    The inventory turnover ratio is 39.00 times on an average. This is because the cost ofsales increases more proportionately than the average inventory. The higher the ratio

    better will be the efficiency; company should try to reduce average inventory andincrease sales.

    Inventory Conversion PeriodConcept:

    This ratio indicates the number of days taken to convert the inventory. This ratio is veryuseful in deciding the organizations efficiency. This ratio helps the organization inknowing its own efficiency to improve and also to show the financing institutions aboutits capacity and its utilization, to obtain finance from the institutions mainly from banks.

    Inventory Conversion Period = 365 days/ Inventory turnover ratio.

    Table showing the Inventory Conversion Period.

    Table 2.2 Inventory Conversion Period

  • 8/13/2019 Sindhu's Project

    20/54

    Year No. of Days

    InventoryTurnover Ratio

    InventoryConversion

    Period

    2010 - 2011 365 17.83651251 20.46364163

    2011 - 2012 365 15.79902457 23.10269209

    2012 - 2013 365 16.16264468 22.5866337

    Source: Annual Report

    Chart - 2.2 Inventory Conversion Period

    Analysis

    Inventory conversion period during the year 2010 11 was 20 days while it increased to23 days in 2011 12 and it decreased to 22 days in 2012 13.Interpretation

    The inventory conversion period increased because of less inventory turnover ratio in theyear 2011 12, which is favourable to the company.

    Raw Material Turnover Ratio:Concept:

    Raw material turnover ratio is the velocity at which the raw materials are converted in to

    goods ready for sales. If the raw material turnover ratio is high then the company isefficiently converting the raw materials in to finished goods.

    [Raw material turnover ratio = Cost of goods sold/ Average raw material]

    Table showing cost of sales, average raw material and raw material turnover ratio.

  • 8/13/2019 Sindhu's Project

    21/54

    Table 2.3 Raw Material Turnover Ratio

    Year Cost of SalesAverage Raw

    MaterialRaw Material

    Turnover Ratio

    2010 - 2011 9689186 736127 13.16238366

    2011 2012 7564020 885069 8.546248937

    2012 2013 8041837 1177717 6.828327179Source: Annual Report

    Chart 2.3 Raw Material Turnover RatioAnalysis:

    Raw material turnover ratio in the year 2010 11, 13.16:1 Times, which decreased to8.54:1 Times in the year 2011 12 and it decreased to 6.82:1 Times in the year 2012 13.

    Interpretation: The raw material turnover ratio is high in initial year then it has gradually decreased inthe next year due to gradually increase in average raw material and decrease in the cost ofsales which indicates an unfavorable raw material turnover ratio.

    Work in Progress Turnover Ratio:Concept:

  • 8/13/2019 Sindhu's Project

    22/54

    Work-in-progress turnover ratio indicates the speed at which the work-in-progress isconverted into the finished goods. This helps the organization to know the workingcapital requirement of the organization that helps in planning.

    Work-in-progress turnover ratio = Cost of goods sold / Average work in progress.Table 2.4 Work-ins- Progress Turnover Ratio

    Year Cost of SalesAverage work-in-

    progressWork-in-progress

    turnover ratio

    2010 2011 9689186 475667 20.36968299

    2011 2012 7564020 354355 21.34588195

    2012 2013 8041837 343654 23.40097016

    Source: Annual Report

    Chart 2.4 Work-In-Progress Turnover Ratio

    Analysis:

    Here it is revealed that work in progress turnover ratio in 2010 -11 was 20.36 and isincreased to 21.34 in the next year, and again increased to 23.40 in the last year 2012 13.Interpretation:

    Work in progress turnover ratio has increased gradually in all the years because of the proportionate change in the cost of goods sold.

    Duration of Work-in-Progress Stage:Concept:

  • 8/13/2019 Sindhu's Project

    23/54

    This indicates the number of days taken to convert the work in progress stock intofinished goods; this helps the organization to know the current requirement of stock ofother items like consumable for the further process in the production.

    Duration of Work-in-Progress Stage = 365 / work in progress turnover ratio.The table showing work in progress turnover ratio and its duration.

    Table 2.5 Duration of Work-in-Progress stage

    Year No.of Days in ayear

    Work in progressturnover ratio

    Days

    2010 - 2011 365 20.36968299 17.91879

    2011 - 2012 365 21.34588195 17.09932

    2012 - 2013 365 23.40097016 15.59764Source: Annual Report

    Chart 2.5 Duration of Work-in-Progress Stage

    Analysis:

    The duration of converting work in progress to finished in 2010 11 was 17 days and innext year also 17 days were in 2012 13 it decreased to 15 days.Interpretation:

    There is a gradual decreased in work in progress turnover ratio conversion period becauseof increase in work in progress turnover ratio.

    Inventory to Current Asset Ratio

  • 8/13/2019 Sindhu's Project

    24/54

    Inventory to current assets ratio indicates the relationship between the inventory andcurrent assets; it shows the percentage of inventory to current assets, which helps theorganization in deciding the current asset policy, which also affect the liquidity positionof the organization.

    Inventory to current asset ratio = Inventory / Current assets

    Table showing current assets, inventory and percentage of inventory to current assets.

    Table 2.6 Inventory to Current Asset Ratio

    Year Inventory Current Assets Percentage

    2010 - 2011 2430704 5959565 0.40786601

    2011 - 2012 3099915 8565154 0.361921689

    2012 - 2013 8259400 14520339 0.568815921Source: Annual Report

    Chart- 2.6 Inventory to Current Asset Ratio

    Analysis:

    The inventory to current asset ratio in the year 2010 11 was 0.407% and it decreased to0.361% in the year 2011 12. And in 2012 13 it is 0.568% and is high compare to

    previous years.

    Interpretation:

    This ratio indicates the inventory components in the current assets. The inventorycomponent in 2011 -12 was least which shows less funds blocked in current assets inform of stock. But in next year it started increasing which clearly indicates that more

  • 8/13/2019 Sindhu's Project

    25/54

    portion of the inventory has blocked in current asset, at present is much higher in these period.

    Inventory to Total Assets (Percentage of total assets):

    Concept:

    Inventory to total assets indicates the relationship between the inventory and total assets.The significance of this ratio is it reflects the portion of the inventory as a percentage ofthe total assets, which helps the management in deciding the utilization of remainingresources profitably. Since the inventory will lock up the huge funds and reduces the

    profitability of the organization.

    Inventory to total assets = (Inventory / total assets) x 100

    Table showing inventory, Total assets and its percentages.

    Table 2.7 Inventory To Total Assets

    Year Inventory Total Assets Percentage

    2010 2011 2430704 12265929 19.81671343

    2011 2012 3099915 15840910 19.56904622

    2012 2013 8259400 22257003 37.10921906Source: Annual Report

    Chart 2.7 Inventory To Total Assets

    Analysis:

    During the year 2010 11 the ratio of inventory total assets was 1/5 th and a slightdecrease in the year 2011 12. In 2012 13 it increased to more than 1/3 rd which is a

  • 8/13/2019 Sindhu's Project

    26/54

    high increase in total asset.Interpretation:

    The inventory to total assets ratio indicates that what percentage of inventory is involved

    in the total stock. It was least in the year 2011 12. And the high increase in 2012 13 is because of increase in inventory in the total asset.

    Inventory to total capital employed:Concept:

    This ratio indicates the relationship between the total capital employed and inventories; itshows how much capital utilized to invest in the inventories other than the other assets.

    Inventory to capital employed ratio = Inventory / capital employed.

    Capital employed = share capital + preference shares + reserves and surplus + long termdebt.

    Table 6

    Table showing inventory and total capital employed and its ratio.

    Table 2.8 Inventory to total capital employed:

    Year InventoryCapital

    Employed(inlacs.)

    Ratio { In Times}

    2010 2011 2430704 1908333 1.273731576

  • 8/13/2019 Sindhu's Project

    27/54

    2011 2012 3099915 2597732 1.193315939

    2012 2013 8259400 4930399 1.675199107Source: Annual Report

    Chart 2.8 Inventory to capital Employed Ratio

    Analysis:

    In the year 2010 11 the inventory to capital employed was 1.27 times, the ratio isdecreased in next year and a high increase in the year 2012 13 to 1.67 times. Interpretation:

    The increase in capital employed shows that capital utilized for the stocks have increased.Hence more portion of capital employed is invested in inventory which be clearly shownin the chart.

    Inventory to working capital RatioConcept:

    The relationship between inventory to working capital indicates the amount of inventory

    included in the working capital. And it also shows the efficiency of inventorymanagement.

    Inventory to working capital ratio = Inventory / working Capital

    Table showing inventory, working capital and its ratio.

    Table 2.9 Inventory to Working Capital Ratio

    Year Inventory Working Capital Ratio {In Times}

    2010- 2011 2430704 583607 4.164967178

  • 8/13/2019 Sindhu's Project

    28/54

    2011 2012 3099915 1212814 2.555969011

    2012 2013 8259400 7709709 1.071298541Source: Annual Report

    Chart 2.9 Inventory to Working Capital

    Analysis:

    The companys inventory to working capital ratio was 4.16 times in the year 2010 11then it decreased in the next two years respectively.Interpretation:

    The inventory to working capital ratio has decreased in these period which indicate thatworking capital is involves less in inventory. So non-liquid assets are less than liquidassets.

    Current Ratio:Concept:

    Current ratio is a more dependable indication of solvency than working capital. It is thedifference between current assets and current liabilities.

    Current Ratio = current asset / current liability

    Table showing current ratio of the company.

    Table 2.10 Current Ratio

    Year Current Assets Current Liabilities Ratio {in Times}

    2010 2011 8959565 8375958 1.069676448

  • 8/13/2019 Sindhu's Project

    29/54

    2011 2012 8565154 7352340 1.164956191

    2012 - 2013 14520339 6810630 2.132011136Source: Annual Report

    Chart 2.10 Current Ratio

    Analysis:

    The current ratio of the company has increased from 1.06 to 2.13 in the periods 2010 to2013.Interpretation:

    The current ratio of the company is high in these periods which mean that the current position of the company is good with respect to current liabilities.

    Inventory to Sales Ratio:Concept:

    Inventory to Sales indicates the relationship between the inventory and sales. It showshow much of the inventories should be sold in an year with regarding to total inventory,it shows companies sales of inventory.

    Inventory to Sales Ratio = (inventory / sales) x 100

    Table showing Inventory, Sales and Inventory to Sales Ratio

    Table 2.11 Inventory to Sales Ratio

  • 8/13/2019 Sindhu's Project

    30/54

    Year Inventory Sales

    Inventory to SalesRatio

    2010 2011 2430704 5468867 44.44620796

    2011 2012 3099915 5858555 52.91262094

    2012 - 2013 8259400 10774733 76.65526375

    Source: Annual Report

    Chart 2.11 Inventory to Sales Ratio

    Analysis:

    In the above table it shows in 2010 11 the inventory to sales ratio was 44.44% and inthe next two years it is increasing to 52.91% and 76.65% respectively.Interpretation:

    Here it is the increasing of inventory to sales because of increase in inventory. It is bestfor more inventory more sales and high will be the return.

    Purchase to Inventory Ratio:Concept:

    Purchase to inventory shows the relationship between purchase and inventory. Theformula to find purchase to inventory ratio is,

    Purchase to inventory ratio = purchase / inventory

    Table showing Purchase, Inventory and purchase to inventory ratio.

    Table 2.12 Purchase to Inventory Ratio

    Year Purchase InventoryPurchase to

    inventory ratio

  • 8/13/2019 Sindhu's Project

    31/54

    2010 2011 7257446 2430704 2.985738288

    2011- 2012 7644266 3099915 2.465959873

    2012 - 2013 8757648 8259400 1.060324963Source: Annual Report

    Chart- 2.12 Purchase to Inventory Ratio

    Analysis:

    It is the purchase to inventory ratio in 2010 11 as 2.98%, which decreased to 2.46% in2011 12, which again decreased to 1.06% in 2012 13.Interpretation:

    The decrease in the purchase to inventory ratio shows the decrease in profit.

    SUMMARY AND FINDINGS

  • 8/13/2019 Sindhu's Project

    32/54

    1. It is noted that Inventory turnover ratio in 2010 11 is 17.83 and it decreased to14.37 in2011 12 and in the year 2012 13 it increased to 16.16.

    2. Inventory conversion period during the year 2010 11 was 20 days while itincreased to25 days in 2011 12 and it decreased to 22 days in 2012 13.

    3. About 3/4 th of the customers are thinks that processing time and processing cost ofthe company is reasonable, but some customers hints that processing time is high.

    4. Here the raw material turnover ratio in the year 2010 11, 13.16:1 Times, whichdecreased to 1.76:1 Times in the year 2011 12 and it increased to 6.82:1 Times inthe year 2012 13.

    5. It can be seen that majority feels that there is a friendly approach from the

    employee towards the customers, but still considerable number of customers feelsthat employee approach is unfriendly.

    6. The inventory to current asset ratio in the year 2010 11 was 0.407% and itdecreased to 0.361% in the year 2011 12. And in 2012 13 it is 0.568% and ishigh compare to previous years.

    7. During the year 2010 11 the ratio of inventory total assets was 19.81% and aslight decrease to 19.56% in the year 2011 -12. In 2012 13 it increased to 37.10%which is a high increase in total asset.

    8. In the year 2010 11 the inventory to capital employed was 1.27 times, the ratio isdecreased in next year and a high increase in the year 2012 13 to 1.67 times.

    9. Working capital turnover ratio indicates that the company does not have anefficient control over the working capital.

    10. The companys inventory to working capital ratio was 4.16 times in the year 2010 11 then it decreased in the next two years respectively.

    11. The current ratio of the company has increased from 1.06 to 2.13 in the periods2010 2013.

    12. For more than half of the respondents quality seems to be the factor that attractedthe public to purchase the brand they are experienced.

    13. Majority of respondents holds the view that TV is an effective medium foradvertisements.

  • 8/13/2019 Sindhu's Project

    33/54

    A sincere effort has been made by the researcher to know the position of inventory.The inventory position thus known from this helps the manager to take good decision inthe organization. Suggestions have also been given for the betterment of the company.

    SUGGESTIONS The major finding of the study paves a way for the researcher to provide the

    following suggestions to improve and develop inventory management in Matts cornerIndia pvt ltd.

    1. As the inventory turnover rate is low, the inventory is high. The efficiency ofutilizing the inventory can be enhancing by reducing the stock levels to therequired level only.

    2.

    Inventory to total capital employed increased shows that much of the capital isutilized in inventories. The company can try to maintain a low ratio in this regard.3. As the raw material turnover ratio is high it indicates excessive raw material stock

    lying idle, this can be reduced by purchasing the raw material when it is required.4. The material can be purchased from the suppliers as and when required to avoid

    unnecessary blockage of funds in idle stock.5. Proper training to be given to workers for increasing efficiency in production

    process.6. The bin card system should be monitored to ensure the availability of right quantity

    materials at the right time.7. Current ratio of the company is increasing and needs to maintain it that the

    liquidity position of the firm can be maintained.8. In order to improve the brand awareness various activities like sponsorships etc.

    should be undertaken or should be continued.9. A frequent audit should be made with the team by the management.10. Special consideration should be given for employees who work in extra time.

  • 8/13/2019 Sindhu's Project

    34/54

    CHAPTER 3

    INDUSTRY AND COMPANY PROFILE

  • 8/13/2019 Sindhu's Project

    35/54

    PLASTICS INDUSTRYPlastic material display properties that are unique when compared to other

    materials and have contributed greatly to quality of our everyday life. Plastics properlyapplied, well perform functions at a cost that materials cannot match. Many natural

    plastics exist, such as shellac, rubber, cellulose, however it i s mans ability tosynthetically create a broad range of materials demonstrating various useful propertiesthat have so enhanced our lives. Plastics are used in our clothing, housing, automobiles,aircraft, packaging, electronics, recreation items. Whether you are aware of it or not

    plastics play an important part in our life.

    Plastic versatility allows it to be used in everything from car parts to doll parts, from softdrink bottles to the refrigerators they are stored in. So how is it that plastic have becomeso widely used? How did plastic become the material of choice for so many variedapplicators?

  • 8/13/2019 Sindhu's Project

    36/54

    The simple answer is that plastics are the material that can provide the thingsconsumers want and need.

    History of Plastic

    The United States plastics industry is a multi- billion dollar business, and it is stillgrowing at a rate faster than most other industries in this country. Plastics have been usedin every major market in the United States, including construction, packaging,automobiles and boats, electrical/electronics, pipe and fittings, and consumer goods, tomention just a few.

    Plastics are basic materials, on par with metals, glass, wood, and paper, and theyare essential to the needs of virtually the entire spectrum of American business. As

    lifestyles change, plastics will become ever more valuable to tomorrows advanced newconcepts in architecture, aerospace, communications, transportation even to medicineand the arts.

    Plastic materials trace their origin in this country back to 1868, when a young printer named John Wesley Hyatt came up with Celluloid, the first American plastic. Hemixed pyroxylin, made from cotton (one of natures polymerics), and nitric acid, withcamphor to create an entirely different and new product. Celluloid quickly moved intomany markets, including the first photographic film used by George Eastman to produce

    the first motion picture film in 1882. The material is still in use today under its chemicalname, cellulose nitrate.

    A Starting Point for Plastics

    Like any material, plastics have their origins in nature, in such basic chemicalelements as carbon, oxygen, hydrogen, nitrogen, chlorine, or sulfur. These materials areextracted from natures storehouse of air, water, gas, oil, coal and even plants.

    From the basic sources come the feedstocks we call monomers (frommono,which means one, and mer, which means unit in this case, the specific chemical unit.). The monomer is subjected to a chemical reaction known as polymerization, which

  • 8/13/2019 Sindhu's Project

    37/54

    causes the small molecules to link together into longer molecules. Chemically, the polymerization turns the monomer into a polymer (many mers). Thus, a polymer may be defined as a high-molecular-weight compound which contains comparatively simplerecurring units.

    A monomer can contribute to the manufacture of a variety of different polymers,each with its own distinctive characteristics. The way in which the monomers linktogether into polymers, and resulting structural arrangement, is one determinant of the

    properties of the plastic. The length of the molecules in the molecular chain (referred toas molecular weight) is a second determinant. And the type of monomer is a thirddeterminant. Polymerizing two or more different monomers together(a process known as copolymerization) is a fourth determinant. Incorporating variouschemicals or additives during or after polymerization is a fifth.

    In 1909, Dr. Lee Hendrik Baekeland introduced phenoformaldehyde plastics(orphenolics, as they are more popularly known), the first plastic to achieve worldwideacceptance. More importantly, Baekeland also evolved techniques for controlling andmodifying the phenolformaldehyde reaction so that products could be formed under heatand pressure from the material. This characteristic of liquefying the material so that it can

    be formed into various shapes under heat and pressure is still common to most plastics.

    Plastic Industry

    Last two years have witnessed substantial rise in India and Americas strategic partnership. While the world suffers from the economic crisis, Indo-US trade has shown positive strides, saidMr. G K Pillai, Commerce Secretary, and Government of India. He was speaking at thefirst India USA Plastics Industry Summit 2009 organized today jointly by theConfederation of Indian Industry (CII) and Plastid Foundation. The summit is themed onstrategic cooperation, market sharing and trade complementation. Plastid 2009, the 7 th

    International Plastics exhibitions and conference, taking place in New Delhi from 4-9February 2009, has over 100 participants from USA.

    The ministry aims to increase per capita plastics consumption by the end of current plan period to 11 to 12 kg as against present figure of 5 kg. Half a trillion investment ininfrastructure restates diver se scope of plastics industry she added.

  • 8/13/2019 Sindhu's Project

    38/54

    PLASTICS ARE USED BECAUSE THEY ARE:

    Attractive Hard and slippery

    Soft and rubbing Flexible Good insulators of heat or electricity Light weight Hygienic Non-rusting Easy to shape and color Cheap

    Indian plastic industry sees scope for growth

    If a product is made of plastics, theres a reason that chances are the reason haseverything to do with helping you, the consumer, get what you want: health, safety

    performance, value, etc. Plastics help making things possible.

    Your consider the changes we have seen in the grocery store in the recent years.Modern packaging such as heat sealed plastics pouches and wraps help keep food fresh

    and free of contaminate tin. Plastic engineers are always working to do even more withless material. Doing more with less helps conserve resources in another way. It helps saveenergy. In fact plastics can play a significant role in energy conservation.

  • 8/13/2019 Sindhu's Project

    39/54

  • 8/13/2019 Sindhu's Project

    40/54

    careful scrutiny on the project proposal, the office approved the same and issuedProvisional Registration for the Industrial unit. The provisional registration so issued isdated on 23-2-94.

    Packaging play a significant role in industrial as well as social growth. Packagingin Industry and transportation of packaged products has kept pace with the industrialgrowth of any country. Though basically India is an agricultural country, its emerging asan industrial gaint having many large scale units in various fields such as chemical, steel,textile, etc. in these circumstances, the importance of packaging industries cannot be leftunnoticed.

    Though plastics centered the packaging scene only in late fifties, by virtue ofversality it has made great roads and displaced the tradition packaging materials.

    The main advantage of Plastics over the conventional materials are: Light in weight Rensable quality Available in attractive colors Percentage of leaks and wastage are very less Can be made into any shape suitable to the situation and requirement.

    PROMOTER :

    The promoters of the unit i.e., partnership concern with two partners. Both partners arefrom business families. Hence both of them have business background. They areeducated and capable to run the unit.

    TECHNICAL KNOW HOW :

    The production process is a known technology. They know how of production isavailable the machinery suppliers will demonstrate the production. Skilled operators will

    be appointed to operate the machine.

    MARKET:

    Major consumers of the product are:

    Chemicals manufacturing units

  • 8/13/2019 Sindhu's Project

    41/54

    Chemicals and pharmaceutical dealers Re-packages General consumers Oil merchants Ayurvedic medicine manufacture

    The requirements are huge hence there is market potential for the product.

    RAW MATERIAL:

    Raw materials required by this company for the production are:

    Plastic grannuals and Colors

    The annual requirement as per the production programme is:

    Plastic granules 9000kg Colours 1500kg

    MAN POWER :

    This company has

    2 supervisors 10 skilled labors 8 semiskilled labors 1 office attendant 3 unskilled labors

    1 accountant

    MEANS OF FINANCE :

    The promoter proposes to approach bank/KFC for availing term loans. The promotersexpect a term loan of 8 lakhs is setting up the unit. The balance will be raised by the

    promoter concern. Margin money loan from D.I.C is available for the unit.

  • 8/13/2019 Sindhu's Project

    42/54

    Though basically India is an agricultural country, it is emerging as an industrialgiant country having many large scale industries in various fields such as chemical, steel,textile, etc. In these circumstances, the importance of packaging industry cannot be leftunnoticed.

    The different functions of packaging can be as follows:

    Product protection Product preservation Convenience in distribution Guaranteeing product quality to consumer Explaining product specification Making easier the comparison of products of different manufactures

    Ensure minimum cost for packaging Make the packaging appealing to the customer

    Same as all these packaging serves as the above purposes the plastic CANS producedalso helps many other industries like chemical, oil, and many other industries to fill their

    products in these CANS and supply to its consumers, which facilitates easy supply ofsuch liquid products avoiding wastage which may happen due to leakage in othercontainers. But these CANS produced has excellent features as the quality CANS

    produced by this company prevents leakage of any kind of liquid in it and also is

    resistible to any kind of reaction with the chemicals filled in it.

    LOCATION AND LOCATIONAL ADVANTAGES:

    The location proposed is in industrial development area, Edayar. Industrial DevelopmentArea belongs to Industrial department. The department have acquired the land long backand developed into industrial plot after providing infrastructural facilities such as internalroad, electricity and water. Hence the entrepreneur intent to start industrial ventures neednot spent much time for providing such facilities to the location. The promoters areexempted in getting permission from various departments in setting up the industrial unitin development area/plots. The parameters for getting local body license in setting upunits in development area are much less compared to the setting up in other area.

    In selecting the site the following aspects have been considered.

    Cost of land

  • 8/13/2019 Sindhu's Project

    43/54

  • 8/13/2019 Sindhu's Project

    44/54

    QUALITY POLICY:

    Quality is our mission. The quality policy is our main tool in achieving it. The policy isclearly defined, comprehensive and highly formalized. Basic contents of the QualityPolicy are:

    Utmost satisfaction of Clients expectation Innovative, cost and time effective services Consistent and continuous quality improvement Fulfillments of defined quality objective targets Develop the organization as an international centre for excellence Continuous evaluation of market to explore challenging areas of operation

    The policy lays down the basic philosophy and translates it into practice, by definingformalized procedures to be completed in sequential steps. Simply stated the procedurescomprise 4 elements.

    Task Definition Task Assignment QC/QA plan for each task element Documentation and feedback

    The application begins with every bid preparation. We do not mind the efforts for the bids not won. For every bid we prepare, the first three steps are completed with care.

    We ensure that quality targets are set and achieved for every job that the client entrusts uswith. Our quality control procedures are designed to sieve out gross human errors andnothing is left to chance. The quality policy has paid us the best dividends.

    It Jagadamba will continually improve its products and services to meet and exceed therequirement of its customers will and delivers them, on time, every time defect free.Quality policy is formulated and declared to provide direction and clarify about the

    policy of company with regard to quality of product and services. Quality policy isreviewed before declaration to ensure that the quality policy contains a statement ormessage to confirm to customer as well as statutory requirements and continually

  • 8/13/2019 Sindhu's Project

    45/54

    improve the effectiveness of the system. Quality policy is displayed in all prominent places. Training in qualit y policy is provided to all employees. Its ensured that allemployees have understood the quality policy. Quality policy is framed in such way thatit will clearly indicate the principal purpose of the bsns and enables establishment of

    quality objectives.

    QUALITY OBJECTIVES:

    Quality objectives are targets to be achieved for the fulfillment of quality policy and aredecided based on the key points in quality policy. Objectives to be achieved by eachfunction with reference to the quality deployment are decided. This may include bsnsaspects as well as product quality aspects.A quality deployment chart is prepared detailing the quality objectives. Achievement intargets is received during management review and corrective actions are planned whenthe target are not achieved.

    Our management systems quality policy is focused on eight principles and is thefoundation of our management systems.

    CUSTOMER FOCUS

    Customers are the center of EnerSyss focus. They set the standards for performance,

    reliability, and service. Our customers define the quality we are expected to deliver.

    LEADERSHIP

    Our goal at EnerSys is to effectively interview and hire qualified candidates into ourorganization and then empower them to make measurable impacts on our companys

    performance.Our corporate culture also believes in identifying key employees and providing to them

    pathways for advancement through the use of succession planning. When we do look to

    the outside to help build our team, our extensive interview process allows us to identify acandidates key strengths, that enables us to properly position them within our company to

    best utilize their education, past experience, and critical thinking abilities. At EnerSys,Quality is the responsibility of every employee. Every employee must be involved,motivated, and knowledgeable for us to remain successful.

  • 8/13/2019 Sindhu's Project

    46/54

    SYSTEM APPROACH TO MANAGEMENT

    By acknowledging that our business is comprised of a group of interrelated processes,we shall identify, understand and ultimately manage them in a systematic manner thatwill improve our companys results and drive us to meet all our objectives.

    INVOLVEMENT OF PEOPLE

    Our associates are the experts in their relative areas, by relying on them to make datadriven decisions, we not only empower our employees, but enable the corporation to

    benefit from their respective talents. Creating a work environment when associates are

    valued and contribute to the team is a vital factor to our success.

    PROCESS APPROACH

    EnerSys is committed to managing our business as process. With this knowledge, we canfocus on each step and its interaction with those downstream of it, in other words utilizethe input/output model. Taking this process approach enables us to ensure that nothing isoverlooked and that there is seamless execution of all activities.

    MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP We at EnerSys strongly believe that our suppliers are the experts in their respective fieldsand therefore, are best qualified to identify areas for improvement. Our close workingrelationships with our suppliers are crucial to the long-term success of our organization.When evaluating potential suppliers, we not only look at the quality of the products orservice provided in terms of First Pass Yield and On-Time Delivery, we extend theevaluation to include competitive position, price, value analysis, technical competenceand support, lead times, and customer focus.

    By involving our suppliers at all stages of and setting clear expectations for quality, costand delivery, we can work to provide setting.

    FACTUAL APPROACH TO DECISION MAKING

  • 8/13/2019 Sindhu's Project

    47/54

    Data is the basis for any decision made within EnerSys, period. Without consideringcritical information we cannot ensure effectives choices will be made to achieve theorganizations objectives.

    CONTINUAL IMPROVEMENT In order for any company to succeed in todays competitive marketplace, they mustcontinue to look for areas of improvement. Through comprehensive audits (internal,external, customer and supplier) we continually strive to identify areas whenimprovement may be needed. Our documented corrective and preventive action systemhave proven to be an effective tool in driving continuous improvement throughout allareas of EnerSys.

    To strive for the up gradation of the technology to meet customer requirements. To provide state of art data communication services as per acceptable determinedstandards.

    To upgrade the technology knowledge of all Jagadamba personal throughcontinuous improvement training.

    To provide comprehensive service in a time bound manner. Achieving customer satisfaction through the combined efforts of planning the

    infrastructure and executing the projects through dedicated work force.

    MAJORFUNCTIONS of this company:

    The major functions of this company is to produce the quality CANS or quality plastic containers and supply to the needful all over the state. There is great demand forthis plastic CANS as mention its uses and the advantages of using these containers in the

    previous pages. As because of this their demand is increasing. This company producesthe CANS is nos. according to the quantity demanded by its customers including variousother industries who use this CA NS for filling various liquids.

    MAJORCUSTOMERSANDCLIENTS of this company:

  • 8/13/2019 Sindhu's Project

    48/54

    Customers are spread all over the state and in recent years it has been able toincrease the number of customers, at this company processes a very good image and goodwill and also as the company aims only at producing Quality CANS.

    Major Customers:Malikkal chemicalsSouthern antipentsAishwaraya enterpriseAgro chemicals limitedMalikkal Industries enterpriseChetanaya chemicalsSoorya agencies

    Royal tradersMahadeva Industries and many more.

    As seen from the major customers mostly sold CANS are most of the chemical.

    MOTTO OF THE COMPANY:

    ` Production and supply of quality goods only

    Parts of the product: Product is a CAN with an air tight cap to cover the mouth which prevents the leakage ofany chemicals from out of it. The CANS produced are of different kinds 1ltr, 10ltr cansand a various different sizes. They are of different colors too. The colors are given to theCAN according to the instructions given to the company and their customer. Mostly

    produced CANS are white and yellow in color, with covering caps on it.

    DEPARTMENTS

    Various departments are combined for the production.The department in Jagadamba co. is all interlinked according to the process that take

    place in the company. These are planning and purchase department under which theestimate of the raw materials required is validated and purchase order for the inwardstocked is furnished thereafter.This department also keeps records of the stock level, the reorder level of the inventory

  • 8/13/2019 Sindhu's Project

    49/54

    etc. Next is the manufacture department where the various materials required tomanufacture a CAN is assembled and the CANS are actually produced under thisdepartment according to the standards preset and requirement of the clients andcustomers. The Quality Assurance (QA) department follows, this department makes sure

    that the quality standards are met and the quality is properly assured. Quality is the mainaspect which JAGADAMBA CO. focuses at.Its then marketing department which makes sure that the CANS which are qualityassured are marketed as per the demand requirement and according to the pre subtimeschedule.

    RESOURCE PLANNING DEPARTMENT:

    The HR department takes charge of the manpower planning and people sourcing as per the needs of the co. Along with these functions payroll management, grievancemanagement, training and development functions are also carried out.

    Thus the company provides all the facilities and technologies to its employees whoensure quality production of goods and their best service.

    TYPES OF PLANNING DONE BY THE COMPANY

    Planning is the main duty of all company before executing any job. The type of planning Jagadamba Co. does is as follows.

    PRODUCTION PLANNING

    For every commodity there is demand according to the supply is made. Commodity issupplied in the market. Production plan and marketing planning are done for thecommodity supplied in the markets. The requirement regarding the productmanufacturing are specified in the specification sheets provided by the customer is givento the planning department, procedure, process sheets, work instructors and check list aredeveloped specifying the activities and parameter to be verified during the different

    phases of production for each product.

    MATERIAL PLANNING

    The production ordered and stocked in store for 3 months before itself. Requirements ofraw materials, components any other services is determined and purchased from

  • 8/13/2019 Sindhu's Project

    50/54

    approved suppliers and the qualities of incoming materials are verified in the planningdepartment. The necessary inspection and listing as well as validation requirement areidentified and the criteria for product acceptance are developed. This company purchasesraw materials from Reliance ltd Company which always provides the quality granules

    certified by ISO.

    PRODUCTION PLANNING

    According to the purchase order from customer planning is done for time schedule,operation, material needed, work force, quantity per day etc. Planning process coversusually a period of 3 months. Open order status is prepared and issued to manufactureand stores. Production programs provides details of purchase order, production orderreference no., product type- (size and color of CANS), proposed delivery. Any change in

    accepted orders is informed to all concerned workers.

    PURCHASE PLANNING

    It comprise of local orders. If cost of commodity is below RS 1000 direct cash payment is made. It is above RS 1000 through other means.

    MARKETING PLANNING

    According to the customer demand in the market proper planning is done for thetimely supply.

    Customer clearance:If the customer has any complaints for the CANS supplied to them they are

    considered and taken better care of not happening the same in near future. Usually thecomplaints which this company bears in just that demand is not being met on time whichthe company has decided to deal with, may be employing more labours.

    No company can do without planning. All the company has to plan its things beforedoing any actions for best results. The company does all the planning mentioned above. Ithas various departments in the company. When things are planned it becomes easy forthe manager to align responsibilities to its worker and easy to the workers to execute thework as the work will be well understood by them. Planning such as material planninghelps in avoiding wastage of resources. Planning the work also together with savingresources it helps in saving time of the Co.

  • 8/13/2019 Sindhu's Project

    51/54

  • 8/13/2019 Sindhu's Project

    52/54

    steps on the part of management can bring a lot of benefits to the product in the comingfuture, since the target market for the product is quite high.

    3.2 ANNEXURES Over the years, Matts corner realized that people are as different as they are

    similar. Different needs, different lives. With the depth of knowledge Matts corner,today, is poised to fulfill the hopes and aspirations of people across the length and

    breadth of the economy.

    BIBLIOGRAPHY

    1. Kothari. C.R. , Research Methodology Methods and Techniques,WishwaPrakashan, 2e, 2002

  • 8/13/2019 Sindhu's Project

    53/54

    2. Khan.M.Y & Jain.P.K, Financial Management, Tata McGraw Hill, 4e, 2004.

    3. K.Aswathappa & K.Sridhar Bhatt, Production and Operations Management, 9 th Edition,2007

  • 8/13/2019 Sindhu's Project

    54/54

    WEBSITES

    1. www.mattscorner.net 2. www.mattscorne.in

    3. www.google.com 4. www.wikipedia.com

    WEEKLYREPORT

    First week I got permission to do a project in Matts Corner India pvt ltd.Later I informed the research topic, and went through overviewof the company.

    Second week I referred the research methodology books for reference.

    Third week This week I collected secondary data related to inventoryanalysis. Collected company balance sheet and P&L a/c (for 3years).

    Fourth weekThis week I started analyzing data using financial tools such astables graphs and chart of the analyzed data and interpreting thedata, with the help of tables and chart.

    Fifth week I approached my guide for his opinion and guidance for drawingconclusion.

    Sixth week I took the soft copy and showed it to the external guide.

    http://www.mattscorner.net/http://www.mattscorner.net/http://www.mattscorne.in/http://www.mattscorne.in/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.mattscorne.in/http://www.mattscorner.net/