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Material Management
CHAPTER - 01
INTRODUCTION
Materials Management Meaning:
Material management involves Planning Programming, Organizing directing,
controlling and coordination the various activities concerning the material.
Materials management is the branch of logistics that deals with the tangible
components of a supply chain. Specifically, this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts.
Material Management is concerned with control of materials in such a manner
which ensures maximum return on woring control material management is concerned
with the location ! purchase of needed their storage ! movement. "t also arranges to
eep on account for them .it is also responsible for planning their movement through
manufacturing processes, store rooms and distribution channels.
Planning and control of the functions supporting the complete cycle #flow$ of
materials, and the associated flow of information. %hese functions include #&$
"dentification, #'$ (ataloguing, #)$ Standardization, #*$ +eed determination, #$
Scheduling, #-$ Procurement, #$ "nspection, #/$ 0uality control, #1$ Pacaging, #&2$
Storage,#&&$ "nventory control, #&'$ 3istribution, and #&)$ 3isposal also called materials
planning.
Definition:
4ccording to 5ailey and 6armer defines the term materials management as
7Management of the flow8 of material into on organization to the point when those
materials one converted into the firm8s end product are finished product,9 Material
management is 7an organizational concept in which a single manager has authority and
responsibility for all activities, principally concerned with the flow of material into an
organization, "t includes purchasing production planning and scheduling, incoming traffic
inventory control, receiving and store9.
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Areas of Concentration
oals:-
%he goal of materials management is to consolidate and efficiently handle core
services. "t creates truc deliveries and service vehicle routes that reduce conflicts for
vehicles and pedestrians 3elivery sites and loading docs are more effective and reduce
redundancy. (ost is reduced when it comes to solid and hazardous waste removal, storage
and recycling. :tility infrastructure and service equipment relocation can improve
aesthetics.
!"alit# Ass"rance:- 4 large component of materials management is ensuring that
parts and materials used in the supply chain meet minimum requirements by performing
0uality assurance #04$.;hile most of the writing and discussion about materials
management is on acquisition and standards much of the day to day wor conducted in
materials management deals with 04 issues.
Parts and material are tested, both before purchase orders are placed and during use, to
ensure there are no short or long terms issues that would disrupt the supply chain. %his
aspect of material management is most important in heavily automated industries, since
failure rates due to faulty parts can slow or even stop production lines, throwing off times
tables for production goals.
A$ Im%ortance of Material Management:
%he importance of materials in organizational performance has been ever increasing
materials one any commodities used directly or indirectly in producing a product or
service. Such as raw materials component parts assemblies and supplies.
"n the manufacturing organization, the important inputs one referred to as Ms i.e. Men
#
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%he amount of money spent on materials is higher than other inputs put together #i.e.,
Machinery, labour, energy etc.$
Materials offer considerable scope for reducing costs and improving profits.
Since materials is treated as a ma>or part of current 4ssets.
Materials add value to the product.
0uality of finished product depends on the quality of materials uses to produce them.
Material management encompasses areas such as purchasing, storing, "nventory control,
materials handling, transportation, and shipping etc.
%hane is need for procurement and preservation of scarce materials for future use.
%here is increasing demand for ensuring safety of environment by using biodegradable
and less toxic materials which do not cause any ?ealth hazard.
%he efficiency of a firm depends upon the availability of right Materials.
Materials one life blood of development of humanity.
C$ ("nctions of Material Management:
Materials handling.
Materials planning and programming.
@aw material purchasing
@eceiving, store eeping and ware housing.
"ssue of material
"nventory control.
Aalue engineering and value analysis.
%ransportation of materials and handling of materials.
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Material Management
Material accounting
Aendor development, vendor evaluation and vendor rating.
3isposal of scrap and surplus.
%raffic management
ectives can grouped as,
&. Primary ob>ectives
'. Secondary ob>ectives
1$ Primar# O)*ecti+e of materials management:-
Primary ob>ectives that contributes to the achievement of overall company ob>ectives.
%hese are concerned with achieving.
1$ 5uying best items at lowest prices
,$ ?igh inventory turnover maintaining the flow and products
$
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,$ 4econ5ar# o)*ecti+es of Materials management:
Secondary ob>ectives that contributes to the achievement over all company ob>ectives
but indirectly.
1$ @eciprocity
,$ +ew materials and products.
$ Bconomic mae or buy decision
.$ Promotion of standardization
/$ Product improvement
E$ A5+antages or &enefits of Material Management:
Material cost can be lowered.
(ontrolling of the indirect cost.
@is of inventory loss minimizing.
5etter utilization of equipment.
@eduction in loss of time of direct labour.
(ost of material used in different departments ascertained.
(ontrol of manufacturing cycle.
Materials congestion in storage places avoided
"mprovement in delivery of the product.
($ Material Management Conce%t:
Production Planning !
(ontrol
Material (ontrol Material handling "nventory control
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4"%%lier A C"stomer 6
4"%%lier & C"stomer 7
8IP9 8or in Progress
Material management in an industry can be stated in general terms as management,
flow of materials in a production or manufacturing unit. %he material management
functions included among other controlling or regulating the flow of material in relation
to changes in variable lie demand, price availability, delivery schedules etc. "n actual
practice this boils down to how much when from whom and how to order and to store.
$ Materials (lo; in a Man"fact"ring Com%an#:
Aendors receive the orders from purchasing department, which in turn Supplies materials
to the concern. %he receiving department of the concern checs the quality quantity of the
materials in laboratory by the quality control officers. %he next step is to weight the
loaded vehicle through weighted machine after :nload the raw materials. "n each bag
tae sample of material. %his will tested by the laboratory #in quality assurance
department$. %here is anything problem arises, the material stored in the store room and if
any problem re>ection is made to Suppliers. %he suppliers should returns the actual
needed goods within & days from date of the materials received. %he material moves
sequentially from machine %o machine and there may be in process storage in between.
%he finished product finally goes to finished part stores. ;here it will be stored from
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WI
Finished
Product
Raw
Materia
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there it will be moved to a shipping department, ultimately, the product goes to the
customers.
H$ Acti+ities t
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5? Optimizing purchasing quality of materials.
e? 3iversification of product lines.
f? Optimizing time and quality of demand for products.
g? Managing information.
@$ 4co%e of Material Management:
%homas 6. ;allace and Dohn @. 3ougherty defines Material management as 7%he
grouping of management functions supporting the complete cycle of Material flow, from
the purchase and internal control of production material to the planning and control of
wor in process to the ware housing shipping and distribution of finished product7.
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Materials Han5ling
Meaning:
Material handling is an important activity not only stores, but also in production. "t
includes all movement of materials in manufacturing situation.
Definition:
Material handling is defined as, 7?andling of material it is system or combination
of methods, facilities, labour and equipment for moving, pacing and storing the
materials to meet specific ob>ectives7.
Accor5ing to Ra#mon5 of >l;ice:-
Material handling division of 4merican society of mechanical engineers has
approved the following definition, 7Materials handling is the art and science involving,
pacing and storing of substance in any from9.
1$ Im%ortance of Materials Han5ling:
Bfficient materials handling is important in industry ."t is as important as efficient
transportation in the location of manufacturing facilities. Materials are to be loaded,unloaded at various points, moved through inspection and production operation to storage
areas and finally to the shipping department. %hese movements do not add value to the
product but they do add to the cost. Some manufacturing spend between '2 to )2 = of
their factory on materials cannot be 4voided as it is one of the ma>or functions in
materials management.
,$ O)*ecti+es of Materials Han5ling:
(apacity "ncreases
(ustomer services improvement
;oring conditions improvement
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?igher productivity
5etter space utilization
@educe congestion that impedes the movement of materials.
@educe e hazards to personnel.
@educe worers fatigue
"ncrease efficiency of shipping and receiving.
"mprove personnel comfort.
3ecrease damages in handling and shipping.
$ Princi%le of Materials Han5ling:
Planning Mechanization (ontrolCPrinciple
Systems 4utomation Principle (apacity Principle
Materials flow Bquipment Principle Performance Principle
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Princi%les of materials
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Simplification 6lexibility Principle
Eravity 3ead ;eight Principle
Space utilization Motion Principle
Safety Principle "dle time Principle
Obsolescence Principle
.$ Rele+ance of Materials
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3amage causes to materials by negligence or use of improper handling box and
equipment8s.
4ccumulation of materials.
(ongestion of floor space near machine and wor centers and near the gang ;ays or
aisles.
(ongestion of space at receiving store
Materials are ept waiting for a long period.
Material Planning
Meaning:
Material planning is the scientific way of determining the requirements of raw
materials, components, spans and other items that go into meeting the production need
with in economic investment policies.
Material planning is a subset of the overall production planning and control system
which has broad prospective. 4 material budgeting is an estimate of expenses to be
incurred in the procurement. Of materials and it helps effective execution and control of
material plans.
1$ 4ignificance of Material %lanning:
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Material planning activity raises the level of the buyer from a mere order placer to a
purchase executive.
Material planning is aims at motivating people and saves as on effective control device.
Bfficiency material management function cannot be visualized without a sensible or
efficient materials planning function.
,$ &enefits of Materials %lanning:
Material planning both and quantity and value in terms of rupees each item and overall.
Material planning helps to get things done efficiently by better forecasting of future
material needs.
4 well designed material planning system precedes steps for effectively materials
budgeting follow up of suppliers.
Purchase planning is based on material planning.
$ (actors infl"encing Material %lanning:
%he various factors influencing the material planning process are classified as,
Macro factors which affect material planning are price trends business cycle, import
policy of the government, credit policy.
Micro factors affecting material planning include corporate ob>ectives woring capital,
seasonality, delegation of powers and communication system used by the firms.
.$ "i5elines to )e "se5 for effecti+e an5 relia)le material %lanning:
%he planning horizon should cover the longest lead rimes anticipated.
"f the demand fluctuated or shows a seasonal variation, their effect on
the planning must be taen care of.
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6or short planning horizons, if more planning periods are considered with in the year,
materials plans will be more reliable. ?owever, quarterly plans are more popular than
monthly or weely plans.
(omputerization of material planning process is advisable because computer are helpful
to handle changes caused by fluctuation in demand and wor out new or revised materials
plans.
(omputerization of material planning results in saving in time and effort apart from
obtaining accurate functions.
Materials &"5geting:
Meaning:
Once the material requirements have been established and wored out, the Material
budget is prepared taing into account inventory on order and inventory in transit also
nown as pipeline inventory.
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Material control is the regulator of the function of organization relations to the
procurements storages and usage of material in such a way as to maintain on even flow of
production without excessive investment in material stoc.
Definition:
%he 4merican production and inventory control society defines Material (ontrol
as 7%he function of maintaining constantly available supply of raw materials Purchased
parts and supplies that are required for the manufacture of the product9.
4tores an5 In+entor# control:
%his involves physical control preservation of stores minimization of Obsolescence
and damage through timely disposal and efficient handling. 6or Physical verification of stocs and reconciling them with boo figure.
A$ Material control in Tata 4teel limite5:
%he material control in %ata Steel limited was in ) stages, they are as follows underG
". Purchase Material
"". @eceipt Material
""". "ssues Material
&$ O)*ecti+es of Material Control
&. Bnsure (ontinuity in Supply
'. Purchase @equisite 0ty Of Material
). Bliminate ;astage in
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C$ Tec
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%here should be proper scheduling of materials.
4 good method of classification and codification of material should be followed.
%here should be proper inspection of materials when they are received by the receiving
department.
Standard forms for requisitions, order, and issue, transfer of material from one >ob to the
other and transfer of material from the >ob to the stores should be used.
%he storage of materials should be wellF planned to avoid losses from theft, (arelessness,
damage , deterioration , evaporation and pilferage,
4 system of internal chec should be introduced to ensure .that all transactions involving
materials are checed by properly authorized and independent persons.
Ordering quantity for each type of material should also be fixed to reduce the ordering
costs and. carrying costs of materials.
4dequate records to control materials during production should be maintained to ensure
that there is minimum possible wastage.
E$ A5+antages of Material Control
%he advantages of material control are as underG
%o effect purchases of materials of the right quantity consistent with standards prescribed
in respect of the finished product.
%o process materials with acceptable commercial terms with a view to effecting
maximum economy in the cost of buyingJ
%o mae available on assured supply of materials, so as to eep the cycles of production
going without any interruption.
%o ensure effective utilization of materials.
%o prevent overstocing of materials and the consequent locing of woring (apital.
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Material Management
CHAPTER - 0,
COMPAN7 PRO(I@E
Conce%t"al (rame 8or of Tata 4teel @t5-8ire Di+ision
INTRODUCTION AND HI4TOR7 O( TATA 4TEE@ @IMITED
%4%4 S%BB< ust a process, but also a way of life. %he determination to
move up the value chain in processes, products and performance has resulted in %ata steel
being acnowledged for its excellence. %he numerous awards conferred on %ata Steel
stand testimony to this.
%he company was incorporated in the year &1/ as a private limited company for the
manufacture of wires and got into the business of maing umbrella ! rib wires. %he plant
was set up at 5orivali, Mumbai. %he company went to public in &1-& and subsequently
too up manufacturing of many other wires, which were being imported at that time. %he
company set up another wire plant at %arapur in Maharashtra for production of Motor
%yre 5ead wire in &1-.
(ompany has five plants #%.;.P. F &, %.;.P. F ', S.S.P, ;[email protected] ! 3;P$ at %arapur,
Maharashtra and other plants at +avasari, Sisodra ! 5anglore, and Eu>arat. (ompanyLs
corporate office is located at 5orivali, Mumbai. "n addition, there are regional sales
offices at 3elhi, (hennai ! (alcutta and sales offices at
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%ata steel was established in &12,
as 4sia8s first and "ndiaLs largest integrated private sector steel company. ;ith its captive
iron ore and coal mines and one of the world8s most modern steel maing and finishing
facilities at Damshedpur in eastern "ndia, which includes a state of the art cold rolling mill
complex. %ata steel limited is among the lowest cost producer of steel in the world.
%he * million tonne Damshedpur plant, which produces both flat and long product, is
undergoing a million tonne capacity expansion to be completed by September '22. %he
company intends to raise its capacity to l million tonnes per annum by '2&' organic
growth and acquisition.
%he Damshedpur capacity will produce * million tonnes and the balance capacity will be
put up or acquired elsewhere in "ndia and overseas.
%ata steel recently announced its first ma>or overseas investments in +4% S%BB
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"t also awarded 4sia8s most admired nowledge enterprise award F'22) by %eleos, an
independent nowledge management company of South orea.
@OCATION:
T
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.$O&=ECTIE4 O( THE TATA 4TET@ @IMITED- 8IRE DII4ION
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6irst compliance F//=.
Eross yield F1.&=.
(ost #plant cost$ F &&,'-@SCton.
OBB of M%5
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ENERA@ IN(ORMATION A&OUT TATA 4TEE@ @IMITED B8IRE DII4I0N:
NAME O( THE COMPAN7 TATA 4TEE@ @IMITED
B8IRE DII4ION@OCATION OR ADDRE44 P@OT NO$,2FC >IAD&
INDU4TRTA@ E4TATE
DODDA&A@@APUR
&ANA@ORE RURA@ DITRICT
COMPAN7 O8NER4HIP @IMITED COMPAN7
7EAR O( E4TA&@I4HED ,00/
PRODUCT4 MANU(ATURED
AND PRODUCTION
CAPACIT7
MT& 8ire -/ MTF Per Mont<
4RIN 4TEE@ -12 MTFPer Mont<
HC 4PO>E -0 MTFPer Mont<
H& -1/ MTFPer Mont<
NO$ O( EMP@O7EE4 1/0
COMPAN7 CERTI(ICATION I4O-T4 3001:,000
OPERATION4 DURIN 7EAR
A$ 8OR>IN DA74 PER 7EAR
&$ 8OR>TIN PER 8EE>
C$ NUM&ER O( 8OR>IN 4HI(T4
/ DA74
DA74
THREE 4HI(T4 Ro"n5 t4PC& APPROA@4 CON4ENT (OR E6PAN4ION
UNDER AIR ACT
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Trusteeship
Integrity
Respectthe
Indiigual
Credi!ility
"#cellence
Material Management
CORE A@UE4 O( TATA 4TEE@ @IMITED B8IRE DII4ION
ENER7 PO@IC7 O( TATA 4TEE@ @IMITED B8IRE DII4ION
%ata steel real firms its commitment to be a part of a national mission for mitigating
climate change issues by efficient use of energy and shall endeavors to (omply with
national and international regulations
4dopt the best available technology to enhance energy efficiency
"mplement world class operating practices so as to conserve energy and natural resources
(onduct regular energy audit for continued improvement.
Promote energy conservation through mass awareness.
!UA@IT7 PO@TC7
%he 0uality Policy of the %ata Steel limited wire division wasG
Q(onsistent with the group purpose %ata Steel constantly strives to improve the quality of
life of the communities it serves through excellence in all facets of its activities.
;e are committed to create value for all our customers and ey staeholders by
continually standardizing, improving and innovating our offerings, systems and process
involving all our employees.
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Core
$alue
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%his policy shall form the basis of establishing and reviewing the business ob>ectives and
strategies and shall be communicated across the organization. %he policy will be
reviewed to align with business direction and to comply with all the requirements of
%0M Principles.9
4A(ET7 PRINCIP@E4 J OCCUPATIONA@ HEA@TH PO@IC7
%he safety principle of %ata Steel limited wire division wasG
%ata SteelLs safety and occupational health responsibilities are driven by our commitment
to ensure zero harm to people we wor with and society at large and are integral to the
way we do business.
4afet# Princi%les
• Safety is a line management responsibility.
• 4ll in>uries can be prevented.
• 6elt concern and care for the employee on Q'* ?ours Safety9 shall be demonstrated by
leaders.
• Bmployees shall be trained to wor safety.
• ;oring safety shall be condition of employment.
• Bvery >ob shall be assessed for the ris involved and shall be carried out as per authorized
proceduresCcheclistCnecessary wor permit and using necessary personal protective
equipment.
8e are committe5 to contin"al im%ro+ement in o"r 4 J OH %erformance$
• ;e shall set obe>ectiveFtargets,develop,implement and maintain management standards
and systems,and go beyond compliance of the relevant industry standards,legal and other@equirements.
ENIRONMENTA@ PO@IC7 TATA 4TEE@ @TD B8IRE DII4ION
%he Bnvironmental Policy of %ata Steel limited wire division wasG
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%ata SteelLs environmental responsibilities are driven by our commitment to preserve the
environment and are integral to the way we do business.
1$ ;e are committed to deal proactively with climate change issue by efficient use of
natural resources ! energyJ reducing and preventing pollutionG promoting wasteavoidance and recycling measuresG and product stewardship.
• ;e shall identify, assess and manage our environment impact
• ;e shall regularly monitor, review and report publicly our environment performance.
• ;e shall develop ! rehabilitate abandoned sites through afforestation and landscaping
and shall protect and preserve the biodiversity in the areas of our operations.
• ;e shall enhance awareness, sill and competence of our employees and contractors so
as to enable them to demonstrate their involvement, responsibility and accountability for
sound environment performance
,$ ;e are committed to continual improvement in our environmental performance.
• ;e shall set ob>ectiveFtargets, develop, implement and maintain management standards
and systems, and go beyond compliance of the relevant industry standards, legal and
other requirements
• ;e will truly succeed when we sustain our environmental achievement and are valued by
the communities in which we wor.
MI44ION AND I4ION O( TATA 4TEE@ @IMITED B8IRE DII4ION
%he mission and vision of %ata Steel limited was as followsGF
;e aspire to be the global steel industry benchmar for value creation and corporate
citizenship.
;e mae the difference throughG
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• O:@ PBOP
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%rusted (ustomer @elationship
/ Cs of &RAND PROMI4E O( THE TATA 4TEE@ @TD B8IRE DII4ION
%he (s 5rand Promise of the %ata Steel
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?@ focus
Maret dominance
8EA>NE44:
Slow pace of decision with respect to investment
OPPORTUNIT7:
+ew products lie tyrecord.
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M$T$&$
Motor T#re &ea5 ;ire?
• M@6
• (B4%
• 4PPO
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MOTOR T7RE &EAD 8IRE:
%yre bead wire is a copperC bronze coated wire which is used for the reinforcement of
virtually all types of pneumatic tyres such as trucs, buses, cars, motorcycles etc. %he
main function of the tyre bead wire is to act as reinforcement and it helps to get a proper
grip of the tyre on the rim. %he type of tyre and structure of bead rings used, determine
the size of bead wire.
Pro%erties of M$T$&:
&. :niform winding.
'. :niform surface finish.
). 4dhesion characteristic of wire to rubber.
*. (lose combination of high strength ! ductility.
Page )'
4%ring 4teel 8ire LMotor C#cle
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M$T$&$ L MANU(ACTURIN PROCE44
(ig"re1$: M$T$&$ - Man"fact"ring Process
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(ig"re1$: Man"fact"ring Process (lo; Cor product lines at 5angalore wire plant is (upper coated high tensile steel
wire used in automobile tyres. 5ead wire typically constitutes = of the tyre weight
#approx. &.-g in a car tyre ! .-g in a truc tyre$. %yre bead wires are used for the
manufacture of virtually all types of pneumatics tyres such as %rucs, 5uses, (ars, Deeps,
Motorcycles, Scooters, etc. %he main function of tyre bead wire is to act as reinforcement
and help to get a proper grip of tyre on the rim.
%he size of the wire varies depending on the application. %ata steel ltd. is in a position to
meet the entire size range of wire from 2./mm to &.&-mm required by the tyre
industries.
%he manufacture of tyre bead wire starts with the selection of wire rods free from piping
segregation and other defects for the wire drawing. 3ifferent types of pacing are given
as per specific requirement of domestic and international marets.
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%he approximately linear density that is weight per unit length of the wire is .gmCm.
%he breaing load necessary to the nature of the wire specimen is not less than &)'g.
%he test is conducted on a tensile testing machine at a specified speed.
PRE L DRA8IN
(ig"re1$2: Pre-Dra;ing MFC Pa# Off
%he requirement of finish wire size diameter of different customers is normally 2.1-mm.
%he raw material available with us after picling is of size .mm in diameter. 5ut we
cannot draw wire directly from .mm to 2.1-mm because during drawing operation
high stresses are induced in the wire which leads to wire breaage. ?ence the drawing is
performed in two stages with intermediate patenting process to relieve those stresses.
"n 3oddaballapura ;ire Plant there are One mCcLs 2& in the pre K drawing section to
reduce the wire diameter from .mm to an intermediate diameter of ).&mm in passes.
%he reduction through the dies should not be more than &/ to '*=. %he wire coils after
picling are loaded onto the pay K offLs of 2& mCcLs from where they are carried onto the
drums.
%here are six drums and six dies in a row while the final die is @.3.?. #@otary 3rum
?orizontal$. %he drum or bloc is generally used for cooling the wire as it gets heated up
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during the drawing operation. %he drum is given internal cooling with the help of water
>et. 4t the base, the drum is provided with a special profile, which avoids over lapping of
wire during the operation. 5ut sometimes due to grove formation overlapping still occurs.
?ence the drum is made such that the drum diameter gets reduced as we move upwards,
to avoid overlapping as the wires slip on the drum. %he max speed of the drum in 2& mCc
is . mCs.
PATENTIN
(ig"re1$3: Patenting ("rnace
%he cages filled with wires from Pre F drawing mCcLs are loaded onto the pay K offLs with
the help of overhead cranes from where the wires start uncoiling ! are first heated to a
temperature >ust above the critical temperature i.e. &2/2°( in the furnace and then
quenched in the lead bath maintained in the temperature range of 1 to -&°(. %he
furnace is divided into * zones ! the lead bath into two zones. %he lead is in the form of
liquid and can easily form its oxide i.e.
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+ow the wires are quenched in cold water to remove the residual lead. %he wires are next
passed through ?ydrochloric acid #?(
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should not be eccentric in motion. Soap powder used for lubrication helps in easy
drawing of the wires ! is generally +a and (a based. ;ire must be fully submerged in
the soap powder ! the powder should be mixed on a regular basis to avoid >amming. %he
powder should also be free from contaminants for effective results.
%he main difference between Pre F drawing and finish wire drawing is that the final
finished wire is collected in spools rather than in the cages. ;eight of spools is Max
*2g for && to &* mCcLs ! *2g.;inding #max$ speed of mCc does vary from &/mCs
to '2mCs.
P@ATIN @I NE
(ig"re ,$1: Co%%er Plating
"n this process stress is relieved and cooper coating is provided on the wires according to
the requirement. %he weight of copper coating on the wire is 2.* to 2.gmsCg of wire.
%he whole line has got many intermediate vipers #air, rubber, bristle, cotton, etc.$ !
pressurized rinsing tans for cleaning purposes. %he wires are first unwound and passed
to the molten lead bath for relieving internal stresses in the wire and to burn the lubricant
coating on the wire. %he temperature of the lead bath is maintained in the range of *22 to
*2°(. 4fter passing through the lead bath the wires are passed through the alaline bath
to clean the wires from residual lead. ;ires are then passed through ?(l tan for better
cleaning.
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%hese wires are then passed through the (ooper Sulphate #(uSO*$ tans, which are
maintained at selected concentration as per the requirement of the coating on wires. %he
wires are then cleaned in cold water followed by in hot water. %he hot water is having
temperature of about 1°(. %hen the wires are dried in drying oven maintained at a
temperature of &/2 to '22°( to get the wires free from water particles. %he dried wire is
then given a thin coating of (umbers and @esin to protect its surface from corrosion.
RE8INDIN
(ig"re ,$,: Re;in5ing MFC
%he main purpose of the rewinding section is to give the wires straight illing which is
the requirement of the customers. %he rewinding process is done in the dehumidified area
onlyJ so as to protect the material from dampness and also this area restricts formation of
copper oxide on the material. %he tae F up units of rewinding section can tae )* wires
at a time after which the loaded spools from it are taen to the rewinding mCc for straight
illing purpose. "n these mCcLs the wire is passed through a set of horizontal and vertical
illing rollers to mae the wires straight, as it is the requirement of the customers. 4fter illing process of the wires, they are passed for winding them on the collapsible spools
for further pacing.
3uring the operation the tension of the wire is maintained constant with the help of the
dancer arm. %he tension is in between )gs to gs.%he wire gets wound on the spool
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with the help of pneumatic arrangement. "f there is breaage of wire due to any reason,
then with the help of brae both the spools are stopped automatically. %he speed of the
rewinding mCc is &'mCsec.
PAC>IN 4TORAE J DI4PATCH
(ig"re ,$: 4torage J Dis%atc< 4ection
5efore passing any finished product for the customerJ inspection is done by 0uality(ontrol 3epartment ! only after this inspection step procedure of pacing is started. %he
weight of the spools with coil loaded on it is about 2.M%. %hen on the spool stamping
station the spool no, weight, etc. is labeled onto it. %hen they are taen to the tilting
platform. ?ere the flange of the spool is removed with the help of pneumatic spanner to
save the time of pacing.
4 wooden pallet is placed on the conveyer with a corrugated sheet and plastic bags. %he
coils are placed into the plastic bags by a lifter. %he second coil is placed on the first coilwith a wax paper in between them to avoid rubbing. %his wax paper is used for corrosion
resistance. 4gain the wax paper is placed on the upper coil and then it is paced with the
cello tape.
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4 small bag of silica gel is placed inside the coils to absorb the moisture. %he (@(4
sheet is rounded around the coils and it is strapped at two points. 4 plywood top is placed
on the coils and then it is strapped at three points. %he wooden corners are fixed to the
pallets restricting any movement of the coils. 6inally it is labelled with coil no, size,
weight and customers name. %hen they are passed to dispatch section and then
transported.
INTRODUCTION:
%ata Steel
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HI4TOR7 O( TATA 4TEE@ @IMITED:
%"S(O was established by D4MSB%D" %4%4 in year &12."n year of &1)1, it had largest
steel plant in the 5ritish Bmpire. 4 modernization and expansion program was launched
in year &1&.
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ii. (reation of 5'5 portal called metal>unction.com in collaboration with S4"< and alyani
Steel.
,001
;orld Steel 3ynamics rans %ata Steel as "ndia8s only ;orldFclass steel maer.
,00
i. %he (ompany launches its first branded cold rolled steel product called %ata Steelium
ii. %he (ompany celebrates years of industrial harmony.
,00.
i. %he (ompany8s biggest blast furnace completes production of &*million tones of hot
metal which is the highest production achieved by a blast furnace in T"ndia in its first
campaign.
ii. %he (ompany files a corporate sustainability report where the (ompany was rated as
"ndia8s %op @eporter by :nited +ations Bnvironment program and Standard and Poor8s.
,00/
i. %he (ompany acquires +atSteel 4sia in Singapore.
ii. %he company launches steel Dunction which is "ndia8s first organized retail store for steel
products.
iii. %he (ompany is raned as the ;orld8s 5est Steel Maer by ;orld Steel 3ynamics.
,00-,00
i. %he (ompany8s steel wors at Damshedpur crosses million tonne mar in crude. Steel
production.
ii. %he (ompany is raned again as the worldLs best steel maer by world steel 3ynamics
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iii. %he (ompany acquires (orus, which maes the company the sixth largest steel maer in
terms actual crude steel production.
,002-,003
i. &./ Mtpa capacity expansion at Damshedpur becomes operational, bringing total crude
steel production capacity to -./ Mtpa.
ii. Prime Minister 3r. Man Mohan Singh unveiled the centenary postage stamp to
commemorate the (ompanyLs centenary year.
iii. %he company was conferred the 5est Bstablishment 4ward by the President of "ndia.
iv. %he (ompany was awarded the 3emining 4pplication Prize
v. %he (ompany was awarded the %B@" (orporate 4ward of. "t is ?"A C 4"3S initiative...
,003-,010
i. %he (ompany issued Elobal 3epository @eceipts worth :S 22 million.
ii. %he (ompany was awarded the (S@ Bxcellence 4ward '2&2 by the 4ssociated
(hambers of (ommerce and "ndustry.
iii. %he (ompany was awarded the 6BFBA" Ereen 5usiness
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"n '221F'2&2, the ;ire 3ivision in "ndia restructured itself by relocating its operations
from Mumbai to %arapur and to "ndian Steel ! ;ire products (o. Damshedpur. %he
3ivision was the first to brand its galvanized wires for the retail segment under the %4%4
;iron brand.
%he ;ire 3ivision has been the sole supplier of preFstressed concrete strands used in the
construction of precast segments for the *. ms, /FlaneF catrleFstayed 5andraF;orli Sea
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(oating Machines.
Bngraving Machines.
Magnesia (arbon
@are Barth Magnet.
Stainless Steel ;ire.
Straightening Machines.
Vinc ingots.
Other (opper.
Other ingots.
Other Square 5illets.
TOP &RAND4 O( TATA 4TEE@ @IMITED:
%he %ata Steel Eroup8s 5rand building endeavours have always been directed at building
assurance, reliability and superior product quality in segment. Outstanding performance
by the (ompany8s different divisions have surpassed their own brand standards and
created higher quality parameters for each other.
"n an attempt to 8discommodities8 steel, the (ompany has introduced several branded steel
products to meet growing maret demands. Some of the 5rands produced and mareted
by the different 3ivisions and 5usiness :nits of %ata Steel areG
Ealvanor%M
%ata 4grico
%ata 5earings
%ata Pipes
%ata Shatee
%ata Steelium
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%ata Structura
%ata %iscon
%ata ;iron
OER4EA4 AC!UI4ITION O( TATA 4TEE@ @IMITED:
Cor"s
• On '2 October '22-, %"S(O signed a deal with 4ngloF3utch company, (orus
• On &1 +ovember '22-, the 5razilian steel company (ompanhia Siderurgica +acional
#(S+$ launched a counter offer for (orus at * pence per share, valuing it at W*.1 billion
• On && 3ecember '22-, %ata preFemptively upped the offer to 22 pence, which was
within hours trumped by (S+8s offer of & pence per share, valuing the deal at W*.1
billion. %he (orus board promptly recommended both the revised offers to its
shareholders.
OTHER AC!U4ITION:
• "n 4ugust '22*, %ata Steel entered into definitive agreements with Singapore based
+atSteel
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DS; steel
S4"< A"V4E steel etc.
Dindal steel.
%M% steel.
CONTROER4I4:
%he company is facing increasing criticism. %hat the drive for growth and profits is
completely overshadowing itLs once famed philanthropy, and causing lasting social and
environmental damage at various locations. "n response, %ata cites its programs for
environment and resource conservation, including reduction in greenhouse emission, raw
materials and water consumption. %he company has increased waste reFuse and reF
cycling, and reclaims land at its captive mines and collieries through forestation. %ata
Steel8s chief environment and occupational health, says, 7Our capital investment in
pollutionFabatement solutions was in the Aicinity of * billion in '22)F2*7
TRADE MAR>4 O( TATA 4TEE@ @TMITED:
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CAPTUTION O( TATA 4TEE@ @IMITED:
Some of the (apitation of %ata steel limited and its brands (apitation are as followsG
&RAND CAPTUTION CAPTUTION
@OO O( COMPAN7 TEE
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TATA TI4CON %@:S%BB3 S%BB< 6O@ RO:@ ?OMB
TATA 8IRON 54++3?B @"S?%O+ B %44@
ACHIEEMENT4 AND A8ARD4 O( TATA 4TEE@ @IMITED:
Some of the ey achievementsCawards received in 6inancial Rear '2&2 are as followsG
&. %he (ompany was awarded the 8Bconomic %imes (ompany of the Rear 4ward8.
'. %he (ompany was conferred the "ndian Most 4dmired nowledge Bnterprise award for
sustained excellence in field of nowledge management.
). "n '2&2, one of the (ompany8s employees was awarded the Prime Minister8s Shram
awards for years '22 to '22.
*. %ubes 3ivision of the (ompany won the &-th D@3 0A 4ward.
. (orporate Social @esponsibility Bxcellence 4ward to the (ompany by 4ssociated
(hambers of (ommerce ! "ndustry of "ndia.
ENERA@ IN(ORMATION A&OUT TATA 4TEE@ @IMITED:
@OO %4%4 S%BB<
T#%e Public
Tra5e5 as 5SBG 22*2
5SB SB+SBX (onstituent
In5"str# Steel
(o"n5e5 &12
(o"n5er 4? 3orab>i %ata
Hea5 !"arters Mumbai, Maharashtra State "ndia
Area ser+e5 ;orld wide
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Material Management
>e# %eo%le 5 Muthuraman
Aice (hairman
?ermant M. +erurar #M3$
Pro5"cts Steel, 6lat Steel Products,
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Material Management
.$1 Title Of T
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Material Management
*. %o analyses the Material management performance through turn over
ratio.
). %o mae suggestions if there are any problems with regard to Material
management.
*. %o identify the critical arias of Material management in the company.
. %o analyses the defects in Material management.
-. %o identify the defects in Material management.
. %o now the Material techniques in Material management.
/. %o introduce the modern methods in Material management.
1. %o study the Material management system in the company.
&2. %o identify the modern Material system.
&&. %o identify the existing Material system.
.$/ Metect both primary and secondary data being use.
Primar# 5ata:
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Material Management
6ace to face Material
Observation
4econ5ar# 5ata:
&. Official records
'. 3ocuments and employees handboos
). Manuals and files of the company
*. company magazines and newspapers
.$2 @imitation of t
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Material Management
(hapter )G @eview
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Material Management
INTRODUCTION:-4nalysis and "nterpretation is the process of identifying strength and weaness of a firm
by properly establishing relationship between two items. "t is useful for decision maing
and there are number of methods ! techniques which are generally used in analysis of
financial services.%he analysis and interpretation of data is the most silled tas in the research process.
Meaning of Anal#sis:-4nalysis is the process by which the whole body of gathered data facts, figures and ideas
is converted into meaningful and useable information. %he data is placed on its
appropriate setting and consistent relationship drawing general inferences. 6ollowing is the procedure involved in the integrated operations of analysis of dataG
&. (lassification of data.'. %abulation of data.). Statistical analysis of data.
Meaning of Inter%retation:-"nterpretation refers to the relationship with the collected data. "tLs the mechanism
through which the factor that appears to explain what has been observed by researcher
during the course of a research.
TA&@E NO: /$1
TA&@E 4HO8IN INENTOR7 TO NET 4A@E4
INENTOR7 TO NET 4A@E4 9 Inventory
Net Sales∗100
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Material Management
Rs$ In @a
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Material Management
RAPH NO : /$1
RAPH 4HO8IN INENTOR7 TO NET 4A@E4
2011-2012 2012-2013 2013-2014 2014-2015
40.00%
42.00%
44.00%
46.00%
48.00%
50.00%
52.00%
54.00%
44.89%
46.36%
52.28% 52.56%
INTERPRETATION:
6rom the above graph it can be inferred that due to the increase in the demand for ;ire
products their has been slight increase in the level of inventory to sales in the year '2&*F
'2& when compared to previous years.
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Material Management
TA&@E NO: /$,
TA&@E 4HO8IN INENTOR7 TO CURRENT A44ET4 RATIO
INENTOR7 RATIO 9 Inventory
Current Asset ∗100
Rs$ in @a
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Material Management
2011-2012 2012-2013 2013-2014 2014-2015
45
46
47
48
49
50
51
49.18
47.43
50.47
46.92
INTERPRETATION:-
6rom the above graph it can be inferred that there is a more increase in the value of raw
materials due to more purchases during the year '2&*F'2&. So why there is more
increase in the values of current assets and inventory during the year '2&*F'2& when
compared to other years.
TA&@E NO:/$
TA&@E 4HO8IN INENTOR7 TO TOTA@ A44ET4 RATIO
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Material Management
INENTOR7 TO TOTA@ A44ET4 RATIO 9 Inventory
Total Inventory∗100
Rs$in @a
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2011-2012 2012-2013 2013-2014 2014-2015
45
46
47
48
49
50
51
49.18
47.43
50.47
46.92
INTERPRETATION:-
6rom the above graph it can be inferred that there is increase in bothinventory and the total assets during the year '2&*F'2& and percentage wise it is
decreased when compared to previous years, because there is increase in both the
inventory and the total assets during the year '2&*F'2&.
TA&@E NO:/$.
TA&@E 4HO8IN INENTOR7 TO 8OR>IN CAPITA@
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Material Management
INENTOR7 TO 8OR>IN CAPITA@ RATIO 9 Inventory
Working Capital∗100
Rs$ In @aIN
CAPITA@
PERCENTAE
?
,011-,01, ,.0$ -1.$, -1$2
,01,-,01 ,$2 /00$ 0$
,01-,01. 131$,3 ..,1$/ 0$,
,01.-,01/ ,32$1 /03$2 0$/
ANA@74I4:-
6rom the above table it is clear that there is a negative value in the woring
capital ratio during the year '2&&F'2&' due to the increase in the current
liabilitiesH@s -)1.'
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Material Management
2011-2012 2012-2013 2013-2014 2014-2015
-2
-1.5
-1
-0.5
0
0.5
1
-1.83
0.76 0.72 0.65
INTERPRETATION:
6rom the above graph it can be inferred that due to increase in the current
liabilities value, due to this slight changes in the level of inventory of a
company during the year '2&*F'2&, so why there is a slight variations in the
woring capital.
TA&@E NO:/$/
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Material Management
TA&@E 4HO8IN ANNUA@ CON4UMPTION O( RA8
MATERIA@4
Rs$in @aH4?
,011-,01, ,1,$02
,01,-,01 0,$2
,01-,01. 2,.$
,01.-,01/ 13$/
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Material Management
.
2011-2012 2012-2013 2013-2014 2014-2015
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2123.08
3072.8
3824.67
3139.53
INTERPRETATION:-
6rom the above graph it can be inferred that there is more annual
consumption of raw materials in the year '2&)F'2&*, may be due to a more productionand more demand to a product, and there is a increase in the consumption of raw
materials year by year.
TA&@E NO:/$
TA&@E 4HO8IN THE 4TOC> O( 8OR> IN PRORE44$
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Material Management
ANA@74I4GF
%he above table indicates
the stoc of wor in progress,
the stoc has been increased in
the ;"P from the year on year,
there is a more increase in
the year '2&*F'2&, i.e.. @s. &1-./- O( 8OR> IN PRORE44
Page -
7EAR 8OR> IN PROER44IN
@A>H4?
,011-,01, /2$33
,01,-,01 11$/
,01-,01. 11$.,
,01.-,01/ 13$2
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Material Management
2011-2012 2012-2013 2013-2014 2014-2015
0
50
100
150
200
250
58.99
113.56
161.42
196.86
INTERPRETATION:-
6rom the above graph it can be inferred that during the year '2&*F
'2& there is more increase in the value, because the orders during this year is more when
compared to other years.
TA&@E NO: /$
TA&@E 4HO8IN INENTOR7 CONER4ION PERIOD$
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Material Management
In+entor# con+ersion %erio5 9 No of days∈a year
Stock turnover ratio .
.
ANA@74I4:-
6rom the above table it is clear that the stoc turnover ratio has been
decreased from '2&*F'2&, when compared to other years, but there is a increase in the
inventory conversion period during the year '2&*F'2&.
RAPH NO: /$
RAPH 4HO8IN INENTOR7 CONER4ION PERIOD$
Page -1
7EAR NO O( DA74
IN A 7EAR
4TOC>
TURNOER
RATIO
INENTOR7
CONER4ION
PERIOD DA74?
,011-,01, / ,$13 1
,01,-,01 / ,$,/ 1,
,01-,01. / ,$02 1/
,01.-,01/ / 1$3 123
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Material Management
2011-2012 2012-2013 2013-2014 2014-2015
1.7
1.8
1.9
2
2.1
2.2
2.3
2.19
2.25
2.08
1.93
INTERPRETATION:F
6rom the above graph it can be inferred that there is a
decrease in the stoc turnover ratio due to increase in the average stoc and the cost of
goods sold during the year '2&*F'2&, %here is a increase in the inventory conversion
period due to decrease in the stoc turnover ratio during the year '2&*F'2&.
TA&@E NO:/$2
TA&@E 4HO8IN AERAE 4TOC> O( RA8 MATERIA@$
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Material Management
A+erage stoc of ra; material 9
Opening Stock of Raw material+Closing Stock of Raw material
2
Rs$in @a O(
RA8
MATERIA@
,011-,01, 0,.$/. 1/$ 020$1/
,01,-,01 1/$ 3$0 .0,$.
,01-,01. 3$0 .02.$3 2$32
,01.-,01/ /2$/ /2$/ /2$/
ANA@74I4:-
6rom the above table it can be analyzed that the average stoc of raw
material in the year '2&&F'2&' was )2/2.&, '2&'F'2&) was )*2'.*, '2&)F'2&* was
)/-.1/ and in the year '2&*F'2& was )/).-.%his shows the increasing trend of
average stoc of raw material.
RAPH NO:/$2
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Material Management
RAPH 4HO8IN AERAE 4TOC> O( RA8 MATERIA@
2011-2012 2012-2013 2013-2014 2014-20150
500
1000
1500
2000
2500
3000
3500
4000
4500
3080.153402.4
3876.98
3583.56
INTERPRETATION:
6rom the above graph it can inferred that there is no drastic changes in the average stoc
when compare to previous year '2&)F'2&*. %he company has maintained consistency in
purchase of raw material during the year '2&*F'2&.
TA&@E NO: /$3
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Material Management
TA&@E 4HO8IN CURRENT RATIO
Rs$ In @a
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RAPH 4HO8IN CURRENT RATIO
2011-2012 2012-2013 2013-2014 2014-20150
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
0.82
1.41.59
1.74
INTERPRETATION:
6rom the above graph it can be inferred that there is a slight increase in the year '2&*F
'2&, which indicates good liquidity position of the business in the year '2&*F'2&.
TA&@E NO:/$10
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Material Management
TA&@E 4HO8IN DE&TORQ4 TURNOER RATIO
DrQs t"rno+er ratio9 Net annualsales
AverageDebtors
A+erage DrQs 9O pening Debtors+Closing Debtors
2
Rs$ In @a
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RAPH 4HO8IN DRQ4 TURNOER RATIO
2011-2012 2012-2013 2013-2014 2014-2015
0
0.5
1
1.5
2
2.5
2.162.06 2.02
1.68
INTERPRETATION:
6rom the above graph it can be inferred that due to lower ratio in the year '2&*F'2&, the
management has to give more interest towards the collection of the money in a better
way.
TA&@E NO:/$11
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Material Management
TA&@E 4HO8IN 4TOC> TURNOER RATIO
4toc t"rno+er ratio 9Sales
Averageinventory
A+erage in+entor# 9Opening i nventory+Closing inventory
2
Rs$ in @a
TURNOER
RATIO
,011-,01, /.2,$11 ,.32$2 ,$13
,01,-,01 /$. ,/$,2 ,$,/
,01-,01. 10$2, ,3,$/. ,$02
,01.-,01/ ,/$/, ,./ 1$3
ANA@74I4:
6rom the above table it is observed that there is a increase in the 4verage inventory and
the Sales during the year '2&*F'2&, when compared to other previous years, but the
stoc turnover ratio has been decreased in the year '2&*F'2&.
RAPH NO : /$11
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Material Management
RAPH 4HO8IN 4TOC> TURNOER RATIO
2011-2012 2012-2013 2013-2014 2014-20151.7
1.8
1.9
2
2.1
2.2
2.3
2.19
2.25
2.08
1.93
INTERPRETATION:
6rom the above graph it can be inferred that the company has more inventory by the
anticipation of the sales which have not occurred in the year '2&*F'2&, so the stoc
turnover ratio has been decreased during these year.
TA&@E NO:/$1,
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Material Management
TA&@E 4HO8IN CURRENT A44ET TURNOER RATIO
Rs$ In @a
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TA&@E 4HO8IN CURRENT A44ET TURNOER RATIO
2011-2012 2012-2013 2013-2014 2014-2015
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.91
0.87
0.470.52 0.52
INTERPRETATION:
6rom the above graph it can be inferred that there is no much impact on the business ,
because the ratio is constant during the year '2&)F'2&*, '2&*F'2& which implies the
company has made more product sales with minimum investments in the current assets
during these years.
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TA&@E NO : /$1
TA&@E 4HO8IN AERAE CO@@ECTION PERIOD
A+erage %erio59 No of working days∈a year
Debtors turnover ratio
7EAR
NO O(
8OR>IN
DA74
DRQ4
TURNOER
RATIO
AERAE
CO@@ECTION
PERIOD
,011-,01, / ,$1 13
,01,-,01 / ,$0 1
,01-,01. / ,$0, 121
,01.-,01/ / 1$2 ,1
ANA@74I4:
%he above table depicts the average collection period due to changes in the debtor
turnover ratio the collection period has been increased. %he 3r,s turnover ratio has been
decreased year by year due to increase in the net annual sales and the average 3rLs.
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RAPH NO : /$1
RAPH 4HO8IN AERAE CO@@ECTION PERIOD
2011-2012 2012-2013 2013-2014 2014-2015
0
50
100
150
200
250
2.16 2.06 2.02 1.68
169 177 181
217
INTERPRETATION:
6rom the above graph it can be inferred that the company has not followed the stringent
collection procedure so the collection period has been increased in the year '2&*F'2&.
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TA&@E NO:/$1.
TA&@E 4HO8IN INENTOR7 TURNOER RATIO
INENTOR7 TURNOER RATIO¿
Cost of goods sold
Average inventory
7EAR CO4T O(
OOD4 4O@D
AERAE
INENTOR7
INENTOR7
TURNOER
RATIO
,011-,01, 1..$ ,.32$2 1$,
,01,-,01 /3$03 ,/$,2 1$3
,01-,01. 20$3 ,3,$/. 1$,3
,01.-,01/ 0$23 ,./ 1$1,
ANA@74I4:
6rom the above table it is clear that there is a fluctuations in the values during the year
'2&)F'2&* and in the year '2&*F'2& when compare other previous years.
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RAPH NO: /$1.
RAPH 4HO8IN INENTOR7 TURNOER RATIO
2011-2012 2012-2013 2013-2014 2014-2015
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.26
1.391.29
1.12
INTERPRETATION:
6rom the above graph it is inferred that there is a decrease in the ratio due to reduction in
the demand and also the high inventory in the year '2&*F'2&.
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TA&@E NO : /$1/
TA&@E 4HO8IN 4TOC> TURNOER IN DA74
4TOC> TURNOER IN DA74 9 AERAE 4TOC> / DA74F
CO4T O( OOD4 4O@D
Rs$ In @a
/ DA74
CO4T O(
OOD4 4O@D
4TOC>
TURNOER IN
DA74
,011-,01, ,.32$2/ 1..$ ,30
,01,-,01 ,/$,2/ /3$03 ,,
,01-,01. ,3,$/./ 20$3 ,21
,01.-,01/ ,.// 0$23 ,
ANA@74I4:
6rom the above table it shows that the average stoc of the company has been increased
due to the increase in the production of the products and the addition of some of the
products during the year '2&*F'2&.
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RAPH NO:/$1/
RAPH 4HO8IN 4TOC> TURNOER IN DA74
0
500
1000
1500
2000
2500
3000
3500
4000
3144.67
3579.093806.93
3630.89
290 262 281 326
COST OF GOODS
SOD
STOC! T"#$O '$
D()S
INTERPRETATION:
6rom the above graph it can be inferred that the company holds the inventory for )'-
days during the year '2&*F'2&, because of the decrease in the sales or demand to the
products during this year.
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CHAPTER-
(INDIN4 4UE4TION4 AND CONC@U4ION
(INDIN4
%he percentage of the "nventory to +et sales has been increased in the year '2&*F
'2& when compared to other years.
3ue to increase in the "nventory and the (urrent assets the inventory to current
ratio has been increased in the year '2&*F'2&. %he percentage o the woring capital has been increased from F&./) to , - during
the year '2&*F '2&. %he net sales of the company as increased in the year '2&* K '2&, as a result of
this inventory to net sales as increased to '.-=. %he increase in the total assets in the year '2&*F'2& the percentage of the
inventory to total assets has been decreased to *-.1'= in the year '2&*F'2&. %he annual consumption of the raw materials has been increased to @s. ),)'*.-
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4UE4TION4
5y going through all the procedures followed in %ata Steel or role in the success of the
organization. 4s a whole the firm is following a good purchase procedure over different
materials, the company will be purchasing only certain materials from the outside of the
company for the production purposes. 5ut there are certain content in the existing
"nventory management system. ?ence on the basis of the study the following suggestions
can be given. " hope that suggestions will be taen by the organization in a right spirit and
implemented.
It is fo"n5 t
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Re5"ction in @ea5 time
%he company must try to minimize the lead time at the time of production, so that
the company can reduce the production time so the company can meet thecustomers expectations. "t is suggested that the company should be adopt some
new management systems in order to communicate vendors in a short span of
time their by reducing the lead time. ?ence the organization can compete at the
"nternational maret and have a better future.
CONC@U4ION
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Material Management
"nventory management is one of the basic important functions of every business. 4n
average manufacturing organization in "ndia has more than -2= of its current asset
invested in inventories. %herefore, by following proper efficient inventory management
principles, the company can certainly reduce the cost of inventory and can improve its
bottom line and thereby, becoming competitive, which in turn will improve its maret
share.
%he research topic "nventory management, has a greater implications on "ndian industry,
from the analysis of inventory management in %ata Steel
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Material Management
&I&I@ORAPH7
&. .4shwathappa and .Shridar 5hat F Production and Operations
Management, ?imalaya Publishing ?ouse.'. %4%4 S%BB<
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Sources Of 6unds
%otal Share (apital /2 /2 /2 /2
Bquity Share (apital /2 /2 /2 /2
Preference Share (apital 2 2 2 2
@eserves -,1).'* -,'').-1 ,*'.'& *,1''.@evaluation @eserves 2 2 2 2
+et worth ,2&.'* -,)2).-1 ,-''.'& ,22'.
Secured
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Other "ncome *'/.* -21.1/ /.*1 )'-.&& '*
Stoc 4d>ustments F*.)) '/ /1.1 ./ '/
%otal "ncome -,--.-- -,11&./2 -,**).2/ ,/&)./2 ,*-
Bxpenditure
@aw Materials ),/).- *,2/*.1) ),--1.2) ),&). ),2'
Power ! 6uel (ost ).) )*.&) '-.1 )2.* 'Bmployee (ost &,2)2.*) &,&&2.1 &,2/&.') &,2*&./- &,22
Other Manufacturing Bxpenses 2 2 2 &.2 &
Selling and 4dmin Bxpenses 2 2 2 '-2./* '*
Miscellaneous Bxpenses -/.' 21.*1 *-./' -&.') -'
Preoperative Bxp (apitalised 2 2 2 F2.&1 F2
%otal Bxpenses ,)).2/ ,)1.)* ,'*'.1/ *,*.2& *,)
Operating Profit /1&.&& -*'.*/ -&*.-& 1*2.-/ /*
P53"% &,)&1./ &,''.*- &,'22.&2 &,'--.1 &,2
"nterest ).* 2./ 2.- &2.1 1
P53% &,)&-.&/ &,'&.-/ &,&11.2 &,'-.22 &,2
3epreciation &*'.& &)2.& &'2./ &''.2* &&
Profit 5efore %ax &,&*.2/ &,&'2.1 &,2/.2 &,&)).1- 1-
BxtraFordinary items 2.- F-.) F)./- ''.-* /*
P5% #Post BxtraFord "tems$ &,&*.) &,&&*.-2 &,2*./* &,&-.-2 &,2*
%ax '*).&' ''*.- '**.1 '1.21 )'
@eported +et Profit 1)&.-' //1./) /'1.1 /-&.* '
%otal Aalue 4ddition &,).& &,-*.*& &,).1* &,*&&.'* &,)
Preference 3ividend 2 2 2 2
Bquity 3ividend &/-.* &/.* &--.* &'./ &
(orporate 3ividend %ax )&.-/ '1.1 '-.11 '/.'' '
Per share data #annualised$Shares in issue #lahs$ /22 /22 /22 /22 /
Barning Per Share #@s$ &&-.* &&&.') &2).* &2.-/ 12
Bquity 3ividend #=$ ')) '') '2/ '&- &
5oo Aalue #@s$ /.& /.1- 2'./ -'.)' *