avijit kumar

7/25/2019 Avijit Kumar

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Project Report

On

Efectiveness o InventoryManagement

From

A thesis submitted in the partial ulillment o the requirement

or the aare o the degree o

M!A

In

"upply #hainManagement

"i$$im Manipal

%niversity

For the "ession &uly '()*+

,eveloped !y- .uided !y


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Acknowledgement

It gives me immense pleasure to express our sincere and whole hearted sense ofgratitude to my guide for their invaluable and untiring guidance and supervisionthroughout my study. To derive benefits of their enormous experience, it is amatter of great privileged for me. I take this opportunity to express my sincerethanks and full appreciation to my faculty guide or Lecturer who extended theirwholehearted cooperation, moral support and rendering ungrudging assistance

whenever needs. I wish them very best in their life.


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S.NO PARTICULATES PAGE

NUMBER

1 Executive Summary 0

!hapter"IIntroduction of Topic

0#"$$

! !hapter"II%rofile of The &rgani'ation( )iterature *eview

$+"+

" !hapter"III*esearch -ethodology

/"

# !hapter"I1

2ata 3nalysis ( Interpretation

"4

$ !hapter"15inding ( Inferences

4"4#

% !hapter"1I!onclusion ( *ecommendation

0"$

& !hapter"1II6ibliography

+


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E'EC UTI (E SU MM AR)* +

The inventory management is an indispensable part of health care organi'ation.2ue to emergent nature of work incompany the role of inventory management is

very crucial.

The purpose of this study is to determine the ways of achieving the effectiveinventory management system at Swasthik power, korba.

In first chapter we have given a general introduction of inventory management,ob7ective of the study, need of study and scope of study.

In chapter two, thecompany profile and literature review talks about the issue in

inventory management, empirical studies that have been carried out.

In chapter three gives research methodology, which consist type of research,research design, sampling, sample si'e, sample unit and limitations of the study.

!hapter four is an analysis of the collected data using pie" charts andinterpretations are given.

!hapter five and six consists findings and conclusion( recommendationsrespectively.

To enhance the effectiveness of the existing inventory management system, therecommendations are as follows8

9ell defined procedure of inventory management.

*esponsibilities should be clearly defined.

!ompany should adopt accurately measure inventory level and forecast

supply needs methods. :se of advance technology in inventory management.


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C,APTER + 1

INTRO - U C T ION


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INT RO- UCTI O N* +

/0t 2 n3entor4 m0n0gement5

Inventory management is primarily about specifying the si'e and placement ofstocked goods. Inventory management is re;uired at different locations within afacility or within multiple locations of a supply network to protect the regularand planned course of production against the random disturbance of running outof materials or goods. The scope of inventory management also concerns thefine lines between replenishment lead time, carrying costs of inventory, assetmanagement, inventory forecasting, inventory valuation, inventory visibility,

future inventory price forecasting, physical inventory, available physical spacefor inventory, ;uality management, replenishment, returns and defective goodsand demand forecasting.In health care organi'ation, inventory management and supply chain is a newway of conceptuali'ing medical inventory management. Supply chain is anindispensable component in inventory management. A supply chain asavirtual network that facilitates the movement of product from its production,

distribution and consumption. In considering supply chains,

health care manager are not only concerned with their relationship with thecompanies at the upstream source of the product to minimi'e their overall cost

in supply management. The health care manager, as a leader of the provider linkin the chain, is in a strategic position and should facilitate collaborativepartnership with the ad7acent links of the chain. )et us closely examine thevarious links inthe supply chain from the perspective of a health care provider.

,) 6EEP IN(ENTOR)5

9hy would a firm hold more inventory than is currently necessary to ensure thefirmexcess> inventory.

07 MEET -EMAN-.

In order for a retailer to stay in business, it must have the products that the

customer wants on hand when the customer wants them. If not, the retailer will

have to backorder the product. If the customer can get the good from some other

source, he or she may choose to do so rather than electing to allow the originalretailer to meet demand later ?through back"order@. Aence, in many instances, if


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a good is not in inventory, a sale is lost forever.

87 6EEP OPERATIONS RUNNI NG .

3 manufacturer must have certain purchased items ?raw materials, components,

or subassemblies@ in order to manufacture its product. *unning out of only one

item can prevent a manufacturer from completing the production of its finished

goods.

Inventory between successive dependent operations also serves to decouple the

dependency of the operations. 3 machine or work center is often dependent

upon the previous operation to provide it with parts to work on. If work ceases

at a9ork center, then all subse;uent centers will shut down for lack of work. If a

supply of work"in"process inventory is kept between each work center, then

each machine can maintain its operations for a limited time, hopefully until

operations resume the original center.

c7 LEA- TIME.

)ead time is the time that elapses between the placing of an order ?either a

purchase order or a production order issued to the shop or the factory floor@ and

actually receiving the goods ordered. If a supplier ?an external firm or an

internal department or plant@ cannot supply the re;uired goods on demand, then

the client firm must keep an inventory of the needed goods. The longer the lead

time, the larger the ;uantity of goods the firm must carry in inventory.

3 7ust"in"time ?BIT@ manufacturing firm, such as Cissan in Smyrna, Tennessee,

can maintain extremely low levels of inventory. Cissan takes delivery on truck

seats as many as / times per day. Aowever, steel mills may have a lead time of

up to three months. That means that a firm that uses steel produced at the millmust place orders at least three months in advance of their need. In order to

keep their operations running in the meantime, an on"hand inventory of three

months steel requirement would benecessary.

d7 ,E-GE.

Inventory can also be used as a hedge against price increases and inflation.

Salesmen routinely call purchasing agents shortly before a price increase goes

into effect. This gives the buyer a


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chance to purchase material, in excess of current need, at a price that

is lower than it would be if the buyer waited until after the price increase occurs.

e7 9UANTIT) -I SCOUNT .

&ften firms are given a price discount when purchasing large ;uantities of a

good. This also fre;uently results in inventory in excess of what is currently

needed to meet demand. Aowever, if the discount is sufficient to offset the extra

holding cost incurred as a result of the excess inventory, the decision to buy the

large ;uantity is 7ustified.

:7 SMOOT,I NG RE9UI REMENTS.

Sometimes inventory is used to smooth demand re;uirements in a market where

demand is somewhat erratic.

T/ere 0re t/ree 802c re02on2 :or kee;ng 0n n3entor4*

/@ Tme + The time lags present in the supply chain, from supplier to user at

every stage, re;uires that you maintain certain amount of inventory to use in this

>lead time>

$@ Uncert0nt4 + Inventories are maintained as buffers to meet uncertainties in

demand, supply and movements of goods.

+@ Econome2 o: 2c0le + Ideal condition of >one unit at a time at a place where

user needs it, when he needs it> principle tends to incur lots of costs in terms of

logistics. So 6ulk buying, movement and storing brings in economies of scale,

thus inventory.

SUPPL ) C ,AIN MANA GEM EN T O< co m;0n4 *+

The healthcare supply chain is composed of three ma7or players at variousstages8 /@ producers,$@ %urchasers,+@ Aealthcare providers.

PRO-UCE R=M A NU


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companies, medical"surgical products companies, devicemanufacturers, and manufacturers of capital e;uipment and informationsystems. %urchasers include grouped purchasing organi'ations ?D%&s@,pharmaceutical wholesalers, medical"surgical distributors, independent

contracted distributors, and product representatives from manufacturers.%roviders includecompanys, systems ofcompanys, integrated delivery networks?I2Cs@, and alternate site facilities. 3t a broader level, healthcare supply chainsare very fragmented. The three players are largely operating independently fromone another and coordinated supply chain management hardly exists. TheBournal of the 3merican -edical 3ssociation found that #0 ofcompanycost structure is comprised of fixed costs ?*oberts, /###@. This findingputscompanys more in a league with transportation or heavy manufacturing thanwith most other service industries ?9ard, $004@. Ceumann indicates ?$00+@ thatsupplies constitute $ to +0 of acompanys total operating expense.In addition, $ of those expenses are tied to administration, overhead, andlogistics. The healthcare industry is slow to adopt the supply chain managementtechni;ues that have had proven success in other industries.

-2tr8 u tor 2 > / o le2 0 ler2> 0 nd Elect r o nc d 0t 0 nterc/0n g e

?E-I7* +

2istributors for medical"surgical suppliers are independent intermediaries who

operate their own warehousesF they purchase the product from manufacturer andsuppliers to sell to providers. The intermediaries are called distributor orwholesalers depending on whether the products final resale hasanother layerbefore reaching the customer. &ne of the most significant contributions ofdistributors to the health care supply chain was the deployment of electronicorder"entry systems to their customer base. )inking providersthroughelectronic communication to their distributors is formally defined as electronicdata interchange [email protected] provides direct, real time computer to computer electronic transmission of

purchase orders, shipping notices, invoices, and the like between providers anddistributors. The cost for standardi'ed E2I transactions for a purchase order, ascompared to costs with manual systems, saves operational costs for bothproviders and distributors.

Gro u; Purc/02 n g Org0 n @0 ton2 ? GP O27 * +

Droup purchasing organi'ations provide a critical financial advantage toproviders, especiallycompanys andcompany systems, by negotiating purchasingcontracts for products and nonlabor services. 3 typical D%& has manycompanyorgani'ations as its members and uses this


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as collective buying power in negotiating contracts with manysuppliers8 of pharmaceuticals, medical"surgical supplies, laboratory, imaging,durable medical e;uipment, facility maintenance, information technology,insurance, and food and dietary products and services. The contracts usually last

three to five years, giving providers price protection. The overwhelmingma7ority ofcompanys participate in group purchasing. &ften acompany belongsto one or more D%&s. The D%&s can be either for"profit and investor owned, ornonprofit. They differ in geographic coverage, si'e, and scope..

E +-2tr8 utor28"

E"commerce in health care can be viewed from different perspectives. Aere wewill concentrate on two aspects8 business"to"business ?6$6@ commerce and

business"to"customer ?6$!@ commerce. 6$6 e"distribution provides efficienciesin many areas for providers, D%&s, and suppliers in the chain through reducedtransaction costs and prices, reduced cycle times with automatic replenishments,deliveries on a BIT basis, and dynamic planningall the way toupstream forecasting for pull"demand, rather than push"demand sales bysuppliers.5irms provide e"!atalog, e"*e;uest for %roposal ?e*5%@, e"3uction, and e"

Specials ?limited discounts on some items@, which emulate traditional systemson"line and are available to bothcompanys and physician offices.

NE C O N CEPT O< MA T ER I AL M ANA G E M ENT

M0ter0l2 M0n0gement n ,e0lt/c0re

?A ;0tent+centered 0;;ro0c/7-aterials management plays a crucial role in providing efficient healthcare bytouching three vital aspects of medical supplies used in thecompany vi'.

a@ 3vailability,

b@ Safety and

c@ 3ffordability.

Supply chain is the lifeblood of a healthcare organi'ation. 3s most departments

depend heavily on supplies, materials management can ease or cramp

acompanys operations. rom a low cost needle to a high"endorthopedic implant, micro steel instruments or pieces of linen, supplies are

indispensable duringa patientsstay at thecompany. Guality care cannot beprovided on time

unless re;uired material is available in ade;uate ;uantity. -aterialsmanagement plays a crucial role in providing efficient healthcare by touching

three vital aspects of medical supplies


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used in thecompany vi'. availability, safety and affordability.

Tmng ?T/e mo2t cruc0l 02;ect7*+

The time factor is probably not as crucial in any other field as it is in healthcaredelivery where delay of a few seconds can cost a life. -oreover, availability of

a low cost catheter is as critical as a high value pace maker when it comes to

medical care. Therefore, inventory managers have the huge responsibility of

making thousands of diverse medical consumables available on time. The

challenge is even greater as the number of expected patients are unpredictableF

suppliers are unreliable and costs are rising.

9ith recent developments in automation and information technology and

emerging trends in the medical supplies industry, materials managers are nowbetter e;uipped to handle time constraints. Innovative inventory supply models

like consignment and rental contracts have eased the pressure of making critical

supplies available on time. )ife"saving products like defibrillators, drug eluting

stents and heart valves are available atcompanys at 'ero investment. The

responsibility for replenishing the stock lies on the vendor. In addition, the

patient benefits from the latest technological innovations without thecompany

having to carry the fear of obsolescence.

Pati ent safet y ( The fi rstprio rity )

The safety of patient is the top priority in healthcare, and materials managers

play a crucial role in protecting his H her interest. The biggest responsibility of a

materials manager is to ensure that the products purchased for clinical use are of

good quality. It can be achie!ed by de!eloping a product

e!aluationsystem

consisting of well"defined parameters to guarantee that only approved products

enter acompanysstoc"room.

2espite cost being an important criterion in assessing new

products, safety and clinical efficacy concerns are prioriti'ed. %hysicians should

be consulted to help determine if a new product is performing and producing

desired clinical impact. 3nother effective way of determining the safety of a

productisto chec" for #$ mar" or %A appro!al.&he !endors access

needstobe restricted and back door sales discouraged to ensure that only properly

reviewed products are brought into the facility.

-aterials managers need to take initiative


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in organi'ing hands"on training for caregivers to ensure safe use of

complex and critical e;uipment like laparoscopic graspers, staplers and arterial

filters. 3bsence of proper training can result in patient in7ury leading to serious

medico"legal issues. Training programmes conducted by experts can be held

either in"house or at specially designed state"of"the"art institutes e;uipped with

ergonomically designed simulation labs and conference halls with telesurgery

facilities. In many instances, clinical outcome improves with the use of

advanced techni;ues and hence regular training should be encouraged.

Cost (An im porta ntvari able )

There is tremendous pressure on materials mangers to initiate serious cost

cutting measures. 9hile the cost of medical supplies has been spiraling up,

greater number of patients is demanding high ;uality and reasonably priced

healthcare services. Since cost of supplies forms a significant portion of

healthcare expense, materials mangers should continuously strive to get better

deals. Economical prices help ensure affordable medical care for vast ma7ority.

The healthcare organi'ation in turn reaps the benefit of better revenue

reali'ation stemming from increased number of patients. 9hile the prices

available to an organi'ation are influenced by the purchasing volumes,

negotiation skills of the purchasing personnel also play an important role.

nowledge of competitive products, awareness of current market trends and

capability to use the database for priceHvolume information helps tremendously

in the bargaining process. &ther sources for product related information,

including regulatory issues are product fairs and conferences, internet articles

and periodicals.

!ollaborative relationships with clinicians and networking with othercompanys

and vendors can help in keeping abreast with latest products and upcomingtechnological trends. Such close and continuous interaction also gives important

clues about non"performing products. Instituting an efficient system for

payables is effective in getting rebates and discounts, which can be passed on to

the patient. The medical supplies industry is flooded with innovative products

and services. -aterials managers should continuously scout for competitive

alternative product H techni;ues that can give better outcome. 9hile cost is an

important criterion, ;uality of the product needs to be the primary concern to

ensure that patient care is not compromised.

Conclu2on 3 good inventory


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management programme is always patient"centred. 9hile inventory is

concerned with monetary issues,companys are in the business of serving

patients. 3lthough technology has an important role to play, the emphasis

should be on using it in a way that makes a difference to the ;uality of patient

care. 3utomating inefficient processes may not yield any productive result.

%rocesses should be reengineered to make them more patient"friendly. !ost"

effectiveness, time consciousness and safety are key drivers of a patient"

centered approach. &nce this goal is clear, technology can support and drive the

efforts towards reali'ing efficiencies and improving the ;uality of health care

services.

Reure me nt2 :or e::ect3e n3 entor4 *

/. 3 system to keep track of the inventory in storage and on order.

$. 3 reliable forecast of demand.

+. nowledge of lead times and lead time variability.

. *easonable estimates of inventory holding costs, ordering costs, and shortage

costs.

. 3 classification system for inventory items in terms of their importance.

TE C , N I 9 U E S US E - IN I N( E N T O R ) M A NA G EME N T

36! 3C3)JSIS

1E2 3C3)JSIS?1ital, Essential, and 2esirable@5SC2 3C3)JSIS?5ast, Slow"moving, Con"moving and dead stock@

S2E 3C3)JSIS?Scare, 2ifficult and Easy@

A-) 3C3)JSIS?Aigh, -edium and )ow@

A + B + C A NA L )S I S * +

The ABC 0n0l422 is a business term used to define an in v e n to r y categori'ation

techni;ue often used in m a t er i a ls m a n a g e m e n t . It is also known as Selective
http://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Materials_managementhttp://en.wikipedia.org/wiki/Materials_managementhttp://en.wikipedia.org/wiki/Inventory


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Inventory !ontrol. %olicies based on 36! analysis8

3 ITE-S8 very tight control and accurate records

6 ITE-S8 less tightly controlled and good records

! ITE-S8 simplest controls possible and minimal records

The 36! analysis provides a mechanism for identifying items that will have asignificant impact on overall inventory cost, while also providing a mechanismfor identifying different categories of stock that will re;uire differentmanagement and controls.

The 36! analysis suggests that inventories of an organi'ation are not of e;ualvalue. Thus, the inventory is grouped into three categories ?A> B> 0nd C@ inorder of their estimated importance.


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S T A TEME N T O< P R O BLE M * +

3 study on effectiveness of DIn3entor4 m0n0gement atS93STAI%&9E*.

OB E C TI ( E S O < T, E ST U -)* +

/. To study the tools and techni;ues of inventory management adopted atSwasthik power.

$. To study the inventory control measures in inventory management.

+. To study how 36! analysis and 1E2 techni;ues are implemented ininventory management.

. To identify problems related to inventory management.

. To study the inventory management procedure.

NEE - O < T, E S TU - )* +

To improve and maintain relationship between 6uyer Supplier.

To reduce inventory by implementation of comprehensive

methods of inventory management.

To improve supply" chain management.

To get best ;uality material at competitive material.

To reduce inventory cost by using methods of inventory

management.

To improve overall performance of company by adoptingcomprehensive


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methods of inventory management.

To remove waste full activities by continuous improvement.

To reduce input cost and increase output performance.

To increase customer satisfaction by providing best service.To ensure cost efficient benefits to the organi'ation.

To maintain inventory and predict according to the forecasting

techni;ues.

To enhance the effective use of resource to increase the

productivity.

SC O P E O < T , E S T U- )* +

In!entory management being a !ery important concept in all thecompanys having a void coverage often calls for the managerial attention. Inthe modern times inventory management has become the integral part of the allcompanies. So all the firm gives special importance for inventorymanagement. The ma7orob7ective of the study is to examine the effectiveness of inventory managementsystem adopted by Swasthik powerF the study mainly focuses on the techni;ues

used by thecompany to control the inventory.

In supply"chain management.

In productivity enhancement.

In operation management.

In assets management.

In inventory forecasting, valuation and visibility.

In ;uality management

In demand forecasting


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C,APTER +

COM P A N ) PRO < IL E F LI T ER C TU R E R E( IE


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INT RO- UCTI O N

Geog r0;/c0l Lo c0to n

Cearest town and railway station is orba.

orba is well connected with !hampa ? km by road@ and 6ilaspur ?//

km@ by state

Aighway. 6oth 6ilaspur and !hampa are important stations on -umbai"

Aowrah route.

Cearest airport is *aipur, about $$0 km by road


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(I SI ON STATEMENT* +

Achieve global standards of excellence in productivity and customer

satisfaction.

Swastik %ower was registered as a !ompany wholly owned by

Dovernment of India on

$th

Cov /#4

Started with capacity of /00000 ton

The company was engaged in manufacture of aluminium and had plants

at orba in !.D and 1idhan 6agh in 9est 6engal

Integrated aluminium complex producing a metal from 6auxite.

The company was having integrated manufacturing plant for the

manufacture and sale of aluminium


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metal, wire rods and semi"fabricated products

%rior to disinvestment Swastik %ower was having share capital of

*s..!r, which was owned and controlled by the Dovernment of

India.

Swastik %ower was privati'ed on $nd

-arch $00/.

HR ST RA TE G Y S W A ST! P" W ER

,R ( I S I ON


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DBUIL- E'CELLENCE IN PEOPLE PROCESSES TO -E(ELOP A ORL-

CLASS ORGANISATION T,AT PEOPLE ARE PROU- TO ASSOCIATE

IT,


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SASTI6 POER H M0n0gement Te0m

MD, Aluminium Business

President & Whole Time Director

Operating Team Enabling

Team

Plant I

Vice President

Team eader

Plant II!r"Vice President

#ompan$ %ead

!r"Vice President

#ompan$ %ead

Asso"Vice President

Team

Poer

TBA

Team eader

Mar'eting

Vice President

Team eader

(eneral Manager

#ompan$ ##O

TB

Asso"Vice President

%ead

Associate ( M


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MANPOER + UNIT ISE

Trainee

)on E*e

MT

(ET

E & O

Plant+I Plant+II Poer Mar'eting Enabling

Team

B0ckground H Alumnum ndu2tr4

3luminum production in India commenced in /#+ with the commissioning of

3luminum !orporation of India


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using imported aluminum ingots.

In /##, Aindustan 3luminum !orporation ?Aindalco@ was set up at *enukoot

in :% with an initial capacity of $0,000 ton per annum. -alco, a public sector

undertaking was commissioned in /#4 with a capacity of /0,000 ton per

annum. Swastik %ower, a %S: with a similar capacity of /0,000 ton, followed

this in /#. 5inally in /#, Cational 3luminum !ompany ?Calco@ with a

capacity of 0.$/mn ton was commissioned in technical collaborate In the

/#0s, the government regulated and controlled the aluminum industry through

price distribution controls and barriers to entry. The /#0 3luminum !ontrol

&rder compelled the Indian companies to sell 0 of the aluminum produced

for electrical purposes.

The government decontrolled the industry in /## with the removal of the

3luminum !ontrol &rder. The industry was de"licensed in /##/ and was

allowed liberal import of capital goods and technologies.

The demand for aluminum grew 4 in the /#0. 3luminum demand post

liberali'ation registered a growth rate of /$. This coupled with the increase in

the global aluminum prices ?M/00H ton in /##@ led to increased investments in

this sector.

The downstream capacity in the aluminum industry spurted due to sufficient


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duty differential between aluminum ingots or primary metal and value

added downstream products. In -arch /##+ while the duty on aluminum ingots

was $ the duty on downstream products was 0. Aowever, with the change

in the tariff structure undertaken in the /## budget, duty on semi"fabricated

metal was lowered to $. This change adversely affected the fortunes of the

downstream producers.

I ndu2tr4 2tructure

The aluminum industry can be distinctly divided into primary metal producers

and downstream metal producers. The integrated aluminum manufacturers like

Aindalco, Swastik %ower, -alco and Indal have a substantial presence in the

down stream aluminum market.

%rimary metal producers contribute to approximately # of the metal

production in the country. *e"rollers or scrap recycling units produce the rest.

%rimary metal producers are integrated in the sense that they manufacture

aluminum from bauxite since they have bauxite mines with large reserves in

their possession.

Trends In C0;0ct4 ? ton7


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)e0r ,nd0lco N0lco Sw02tk

Power

Ind0l M0lco Tot0l

/##0"#/ /0 $/ /00 // $ 4/0

/##/"#$ /0 $/ /00 // $ 4/0

/##$"#+ /0 $/ /00 // $ 4/0

/##+"# /0 $/ /00 // $ 4/0

/##"# /0 $/ /00 // $ 4/0

/##"#4 $/0 $/ /00 // $ 4/0

/##4"# $/0 $/ /00 // $ 4/0

/##"# $$ $+0 /00 // $ 4

The total installed capacity in 5J# was 0.4mn tpa. Though Indal


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presence in value added products are in a better position to capitali'e

on this value addition when compared to stand"alone producers. The regular

supply of primary aluminum metal, the price volatility in primary aluminum

procurement and the depreciation of the rupee ?in the case of imported metal@

are the key factors that affect the viability of downstream producers.

The downstream aluminum producers are also plagued by the high import duty

content of primary aluminum. !urrently the import duty on aluminum is $.,

which includes the /0 surcharge imposed in the recently concluded budget.

The table below depicts the landed price of primary aluminum in different

scenarios. 5rom the table it is clear that the primary aluminum producers are

relatively protected, whereas the downstream producers have to bear the brunt

of high import duty.

E::ect3e L0nded Prce n -::erent Scen0ro ?R2=ton7

R2!&=J R2 "=J

MHTon / $0 $ / $0 $

/,00 4#,+4 $,4 ,0/ +,0 4,# #,#0

/,0 /,#+ ,0/ ,/## ,+0 #,0$$ $,+/

/,400 ,/0 ,+ 0,# ,0+ /,4 ,0


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/,40 4,+ #,4 $,## 0,+4 +,0 ,+4

/,00 ,4 /,#0 ,+#4 $,4## 4,$# #,#0

/,0 0,/ ,$$ ,# ,0$$ ,/ $,/

1alue added downstream products are available in various forms vi' ?a@ *olled

products ?b@ Extruded products ?c@ 5oils ?d@ wire rods and ?e@ 3luminum wheels

used in automobiles etc. Integrated producers like Aindalco and Indal have

significant presence in downstream products.

C0;0ct4 o: Rolled Product2

Com;0n4 C0;0ct4?ton7

Aindalco 0,000

Indal #0,000

Swastik %ower 0,000

-alco ,000

%ennar +0,000

Sterlite $0,000

)ight -etal /0,00

&thers /,000

Total $#$,00


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*olled products are manufactured by rolling slabs to the re;uired

thickness and coiling them. The coils are further slit into the re;uired width.

*olled products are used in manufacturing aluminum foils, pressure"cooking

sheets, building sheets and flooring sheets used in transport.

The current installed capacity of rolled products is to the tune of 0.$#mn ton.

Integrated aluminum producers ?with the exception of Calco@ having a capacity

of 0.$/m ton contribute to nearly of the aggregate capacity.

Indal with a production capacity of #0,000 tpa is the largest producer of rolled

products in the country, followed by Aindalco ?0,000 tpa@ and Swastik %ower

?0,000 tpa@.

&ther producers in the manufacture of rolled products are Sterlite Industries,

%ennar 3luminum, and )ight -etal Industries ?merged with India foils in

2ecember /##@. There also existed re"rolling mills who collectively supply

around /, 00,000 ton of rolled products the rolled products market to a large

extent is dependent on a strong economic growth and resultant rise in demand.


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PLANT AT 6ORB A

The sections of Integrated 3luminium %lant, orba, are "

/. 3lumina %lant8 " 6auxite ?ore@ 3lumina

$. Smelter %lant 8 " 3lumina -olten 3luminium -etal

+. 5abrication %lant8 " -olten 3luminium !asting ( Shaping of

3luminium

. -etal

S3)E36)E %*&2:!TS

Aot *olled %roducts !old *olled %roducts

A* %late %lain Sheet

A*5 !oil !he;uered

Sheet

!orrugated

Sheet

%art !oil

!*5


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SASTI6 POER )EARISE TURNO(ER F PRO


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/#+" "+# " "+# /

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S93STI %&9E* ?000


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6A3*3T 3):-ICI:- !&-%3CJ ?S93STI 4/./ 4.$ 4. /. $@

A ,ou2e O: -3er2:ed EKcellence

The S93STI D*&:% established in the year /#4/ is one of the leadingtrading houses in eastern India. 9ith diversified activities it is also engaged inthe providing engineering, management and financial consultancy services inthe field of infrastructure development from the concept to commissioning. 3s atrading company engaged in catering the re;uirement of -ining, !onstruction%ower %lants, 5orging, !asting and Export Etc. S93STI D*&:% has playeda significant role in the development of Indian Industry and Infrastructure%ro7ects. 9e at S93STI aim to provide most effective and prompt after salesservices for the e;uipments sold by us through trained personnel and after salesservices for the e;uipment sold by us through manufacturing plant"trainedpersonnel and experts.

!A3I*-EC


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/. -ining and !onstruction

a. &pen !ast -ining

Aydraulic Excavators, *ope Shovels, 6last hole 2rills, )oading E;uipment,*ear End dumpers, 2raggles, 6ulldo'ers, -otor Draders etc.

!oal and -ineral %reparation and 6eneficiation %lants ( -aterial AandlingE;uipment.

%ollution !ontrol E;uipment.

!omplete e;uipment for large &pen"%it -ining with annual productions of /0million tons by Shovel"Aauler process or semi"continuous process.

b. :nderground -ining

2rilling, )oading, -an and -aterial Transportation E;uipments, :nder DroundSupport 1ehicles.

!omplete pro7ects for mining ?-inerals and -etals@.

$. %ower %lants

-ini H -icro Aydel %ower %ro7ects.

Thermal %ower %ro7ects up to /000 -9.

Aydel %ower %ro7ects up to +40 -9.

Transmission and 2istribution E;uipment.

+. -aterials Aandling and *eduction E;uipments

!ranes " E&T H A&T up to $0 -T capacity.

-obile !ranes " Tyre mounted and crawler.

%ort cranes ? )uffing !ranes, !ontainer Aandling !ranes @.

6arges, Sea going vessels.


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!rushers and Drinders.

. 5errous and Con"5errous -etal, 5erro" 3lloys, -inerals and other metals

3luminum, 6rass, !opper, !hromium -etal, 5erro"Silicon, *olled products,Steel, Silicon metal etc.

. -achine Tools

Special %urpose -achine Tools.

5oundry E;uipments and -achines.

Electrical %neumatic and !ordless Engineering Tools.

!C! -achines.

4. 5orgings and !astings

5orging ( !astings of 5errous and Con 5errous -etals, -n Steel !asting,)iner %lates, *olls for *olling -ills etc.

. -anufacturing

5rooti

3ppy 5i''

6ailley

. Export

!ommodities

Tea, Spices, Bute, %rocessed 5ood ?1eg. ( 5ruits@, *ice, 5ruit %ulp ( Buice,Darments, Textiles, !osmetics, 2ecorative )aminates, -arble, -inerals,Dranite ?%olished and :npolished@ etc.5errous ( Con"5errous -etals.

5orgings ( !astings.

Engineering %roducts.


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-aterial *eduction E;uipments.

Spares for heavy earth moving machines.

#. Deneral Trading

6earings, !ement, 5errous ( Con"5errous -etals, Dears and Speed *educers,)ubricants, %etroleum products, rubber compounds and !hemicals. Steel, Tyresand Tube etc.

/0. Electrical E;uipments and !omponents

Transformers

Switchgears

-otors

)uminaries

)T and AT !ables

//. !onsultancy Services

9e provide Engineering and -anagement consultancy Services forInfrastructure %ro7ects i.e. *oads, 6ridges, %orts and Aarbors, 9ater Treatmentand 2istribution, Sewage treatment, -aterial Aandling %lants, *ailways, :rbandevelopment etc.

/$. Cews9e see the future of consulting on high value capital pro7ects as the delivery of

an integrated service by experienced professionals from across all the ma7orfacets of the construction sector. 9orking together we bridge between thecomplex technical, contractual, financial and programming issues that affectcapital pro7ect procurement, fulfilling a uni;ue niche for our !lients.

A%* was created from the merger of Aigh"%oint with the long established firmof *endel, %almer ( Tritton in /#. Aigh"%oint had been founded in /#0F*endel %almer ( Tritton dated back to /$$. Aistorically both companies hadbeen involved in some of the greatest and most challenging construction

pro7ects around the world.


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2. Aow much time were spent scheduling interviews=E. Aow many staff members were

A%* is now a private company with a significant portion of the sharesheld by the management. The company has re"focused on long term strategictargets and core growth markets.

9e now employ around $00 staff and provide an integrated service with senior,experienced consultants drawn from a wide range of professional backgroundsfrom across the sector. &ur approach to our engagement with !lients is simplyset down. &ur !lients work on many of the worlds ma3or pro3ects4 wepro!ide pro7ect definition, pro7ect leadership, design ( interfacemanagement, andpro7ect turnaround. &ur focus is defining and managing the key issues by which

the ob7ectives of our !lients are met.

-ore than anybody else in A* 2epartment the onus is high on >*ecruitmentSpecialist>, he is like >companies> advertising manager.Ae must be well versed with the >6usiness> of the company, its strategies andpolicies.It is for him to keep himself updated with the latest skill sets, available in themarket. It is for him to >keep> him self updated with the >6usiness !ompetitors>of the organi'ation. Even the onus of >retaining people is on >*ecruitmentSpecialist>.It is for them to find if the >person> will be able to fit into the >culture> of the

organi'ation.A good Recrutment S;ec0l2t mu2t 8e n 0 ;o2ton to 0n2wer t/e :ollowng

ue2ton2*

Aow much time and expense does your administrative staff expend to open,respond, and route resumes to the hiring team= The best way to do this is tofigure out an average cost per resume and track how many resumes you receivefor each 7ob to be able to calculate the administrative cost per 7ob.

3. Aow much time does your hiring team H recruiter spends screening

through resumes= This may also be an average cost per resume received for the7ob.6. If your organi'ation conducts preliminary phone interviews, how manywere conducted and how much time, did the recruiter to prepare, conduct,summari'e and communicate the results of those interviews spend=!. 2o you have an automated applicant"tracking program= This is anindirect cost that you may choose to pro"rate across your hires for a specificperiod, somewhat like depreciating a new computer on your taxes.

3. 2id your hiring team or the interviewee incur any travel expenses

that were reimbursed by the company=


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involved in the interviews= Aow long per interview= Aow manyinterviews= 9hat is the average cost of the interviewers< time5. Aow much time and what was the cost for follow"up with candidatesduring negotiations and to notify those that were not hired=

D. 9hat was the cost of referral fees from a recruiting agency or anemployee referral=A. 9hat costs will the company be paying the new hire to relocate= Somecosts may include moving company, airplane tickets, hotel accommodations,temp housing, house hunting visits, assistance with sellHbuy, orspouseHdependent assistance.

I. 9hat was the cost for background investigations andHor referencechecks= 2rug screens.B. If there was a signing bonus, how much was it=. 9hat costs does the company typically incur to bring someone onboard "orientation, mentor, benefits enrollment, computers, cell phones, uniforms, etc.=). Aow long did it take to fill the position from start to hire date= 9hatcould you have done to reduce the time to hire and not have affected the ;ualityof the hire=-. 9hat was the impact on productivity while the position was left vacant=This is a very difficult calculation to conduct especially depending on theposition. Aowever, it does have an impact on the hiring manager and theorgani'ation as a whole. If it cannot be ;uantified, at least keep it in mind.N. Aow satisfied was the hiring manager H organi'ation with the hire= This

assessment can be done following the hiring but should be repeated again + " 4months after the employee has been on the 7ob to get a real sense of howsuccessful the hire was. Conclu2on5or a *ecruitment %rofessional to be efficient and effective, there is so much todo. They can play an important role in >&rgani'ation Transformation>, providedthey are >true an fair> in their dealings. I have also mentioned in one of my>earlier write"up> that >*ecruitment %rofessional> is corrupt, there is a good andbad face of each profession, and all that is matter is how true you are to yourselfand your integrity.

R ecru t m ent ; r o c edure g u d e l n e 2 * + ? Po l c 4 8 e : o re n 3 e 2 t m ent n

S A ST I 6 P O E R 7

The recruitment action is normally processed after issue of validcreation of order and receipt of advice for recruitment from the -anpowerSection.

3s soon as the proposal for creation of posts is finally approved

and sanctioned by the competent authority after financial concurrence on thebasis of the recruitment and 7ustification placed by the indenting department, themanpower section will issue necessary creation order for the creation ofre;uired postHposts.


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If the posts are re;uired to be filled up at the local level,

i.e. at the %ro7ect in orba, the manpower section will first consider the methodof filling the posts either by promotion from within, trade test or by directsrecruitment of fresh trainees or experienced personnel from outside. 5or the

purpose of fresh recruitment, it will be also consider as to whether the post is tobe filled internally or from outside. This is considered after taking intoconsideration the suitability of the available personnel within the pro7ect for aparticular post. If it not possible to fill the post internally then it is decided toresort to recruitment from outside, necessary directions will be issued by themanpower section to the recruitment section.

3s soon as the recruitment section gets necessary information anddirection from the manpower section towards the filling up of the posts, therecruitment officer ?3dministrative &fficerH*@ will finali'ed the followingthings807 %osts and pay scale as per approved nomenclature and scale ofpay.87 Bob specifications approved by indenting department.

3fter obtaining confirmation for the same from the indentingdepartment, he puts up before personal manager for his final approval.

I nter n 0 l C rc u l0 r

3fter the finali'ation and approval about the name of post, scale of pay and 7obspecification by the personal management, officer in charge of the recruitmentsection will prepare a recruitment program and obtain approval of the %.- for

taking further action. 5ollowing items are included in the recruitment program8" 2ate of internal circular

)ast date of receipt of application in response to the internalcircular )ast date of the scrutiny of the applications

)ast date finali'ing the list of internal candidates to be calledfor interview )ast date of interview for the internal candidates )ast date of finali'ing and approval of the selection panel

)ast date of issue of offersN o t : c 0 t o n t o E m ; lo4 m ent EK c / 0 n g e )ast date of receiving the list of names from the employmentexchange

)ast date for obtaining the non availability certificate incase theemployment

exchange is unable to supply suitable candidates. )ast date of holding interview )ast date of finali'ing and approval of the selection panel

)ast date of issue of offersN o t : c 0 t o n t o A d 3 er t 2 e m ent


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)ast date of receipt of application from candidates

)ast date of scrutiny of application

)ast date of preparing a list of eligible candidates to be called forinterview

)ast date of approval by the %.-. )ast date of submitting list of candidates to be called for interview )ast date of issue of !all )etters to candidates for interview )ast date for the interview )ast date for finali'ing the selection panel and its approval by %.-

)ast date of issue of offer letters for selected candidates.

)ast date of 7oining by the candidates

The advertisement of the post will be made both in local as well as 3ll IndiaCews %apers as per standing practice.

Immediately on receipt of application, the scrutiny starts in therecruitment section. The details of the scrutiny will be tabulated and scrutini'edin the approved %erforma and sent to indenting department for a detail scrutinyto consider the technical aspects and determining the suitability of the candidatefor the calling in the interview.

3s soon as the applications are received from the indentingdepartment after the detailed scrutiny, recruitment section will finally prepare alist of candidates to be called for interview and obtained approval of the sameby the %.-.

I nte r 3 e w C 0 ll3s soon as the list of candidates to be called for interview is approved by %.-,the recruitment section issue letters for interview. The recruitment section willinform the members of the Selection 6oard and Training !enter about the date,time and the venue for holding the written test and interview.

C o n 2 t tu t o n o: S e l e ct o n B o 0 rd

The Selection 6oard for each post will be constituted as per the decision of D-.Denerally, two personnel from the indenting department and one from A*department are present in the Selection 6oard.

A ;;r o 30 l o: S e l e ct o n P 0 nel F I 2 2 ue o: o ::er2 o : A ;; o nt m ent2ue weight age for domicile, ;ualification and experience should be continuedto be given as per existing practice. 6ased on this, final 3ssessment *ecordshould be prepared taking into consideration the marks obtained in9rittenHTrade Test an interview, sign by the members of the Selection 6oard.3ll of those scoring 40 and more marks will be eligible for the Selection%rocess. Specific recommendation of the committee, if any, should also berecorded and signed by the members.

The selection panel and recommendations of the Selection

6oard will be put up before %- for his approval. 3fter obtaining the approvalof %- necessary offers in favour of


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selected candidates will be prepared and issued by the recruitmentsection.3s soon as the candidate reports for duty in response to the offer issued to him,the recruitment section will check his certificates and other relevant particulars

and send to the establishment section to be issued with the posting order.

T m e Sc/edule

Issue of departmental circular and issue of offers for filling up the posts

through departmental candidates internally" total period not exceeding daysfrom the date of receiving advice from the manpower section. Cotification to employment exchange and filling up the post throughemployment exchange"total period not exceeding 0 days from the date ofreceiving advice from the manpower section or from the date, the steps forrecruitment through internal candidates is concluded.

Issue of advertisement within / days from the date of receipt of non"availability certificate from the employment exchange. )ast date of receipt ofapplication through press advertisement not exceeding /Omonths from thedate issue of advertisement. )ast date for scrutiny of applications and issue of letters of interview not exceeding $/ days from the date of receipt of applications. 2ate for calling the candidates for interview" not exceeding $/ days fromthe date of issue of letters of interview.

2ate for calling the candidates for interview not exceeding $/ daysfrom the date issue of letters of interview. )ast date for issue of offers of appointment to the selected candidates not exceeding / days from the date of interview -aximum 7oining time to be granted to the candidates not exceeding/Omonths from the date of issuing the offer of appointment.

T RA I N I N G & ! " ! #$% ! N T( 2o n S t 0 t e m ent

D&o continuously upgrade wasti" 5ower $mployees "nowledgebase, s"ill"sets and e;uip them with competencies aligned for fulfilling the &rgani'ationalneeds for today andtomorrowM 2 2 o n S t 0 te m ent

&o de!elop talent leaders who can build sophisticated businessin linewith the Droup %hilosophy " people who are technologically literate, globallyastute and operationallyagileS w02 t k P o w er L e 0 r n ng C e n tre

2eliverable8 3 minimum of /


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Employees to be trained everyday i.e. 00 Employees to be trainedper annum. -andatory Training Interventions like -ultiskilling ( -ultitasking,Safety, Aealth, Aousekeeping, 6asics of !omputer and 1ocational Skill up

gradation to be conducted round"the"year. Training to the 9orkmen on Safety and System Guality to be conductedinside the %lant with the help of IAS and System Guality. Training to becoordinated by Swastik %ower )earning !entre. Empanelment of at least /0 nos. of best in class professionals, drawn

from various S6:s, for conducting classroom and shop floor training coursesHworkshops 3dditional infrastructural facilities ?as per the next slide@.

Training, being an investment with the highest potential returns, to bemade an integral part of !ompanysbusinessstrategy including issueofpolicy statement on the training target 2evelopment of Training %olicy. Training -atrix from identified Training Ceeds.

Training !alendar.

Training -anual.

3nalysis of Training 5eedback form.

2evelopment of Infrastructural 5acilities at 6)!. *evised Training %rogrammes for the Trainees.

Tr 0 n n g + O 8ec t 3 e

To avoid knowledge obsolescence. To continuously upgrade skills " in consonance with variousImprovement %ro7ects and also the ambitious Smelter and %ower %ro7ects. To help Swastik %owernies discover a new route to success throughpositive attitude, self"motivation, inter"personal skills and effectivecommunication. To help Swastik %owernies to set goals and begin with an end in mind. To facilitate Bob Enrichment and Bob Enlargement. To develop )ateralH &ut"of"6ox Thinking.

Tr 0 n n g H / 4 5 Is essential to keep pace with the changes. Is a capital investment and asset building for the future= Is a proven tool for employee motivation and retention=

Taking care of the training needs of an employee

*einforces hisH her interest in the 7ob and contributesto 7ob satisfaction and creates competencies for new*oles or functions for the existing employees

3ddressing the visible gap in the


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/ -anaging teams and groups

/ !ommunication and %resentation Skills6 Team 6uilding6 -anaging to lead for excellence,

available knowledge,Skills and mindset vis"P"vis the imminent re;uirements&f an &rgani'ation committed to moderni'e and expandthe existing %lant 5acilities

Tr 0 n n g I n t 0 t 3 e 2 -ands /n trainingunder mentorshipof highly moti!atedmain streamemployees !lassroom inputs by line executives on all aspects of technologicalprocesses, &(- practices and basic management Emphasis on developing right attitudes

Inculcating a sense of belonging to and identity with the &rgani'ation sothat harnessing potential becomes as natural as any other process in the&rgani'ation


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innovate and for Team Effectiveness

!' T A( # I ')! N T

< UNC T I O N S * +

7A&I8 5/7$9s

-9est

ablishmen

tsect

ion consist

oftwocells

a@ Executive cellb@9orkman cell.

1. 6oth cells are working separately but their main work is similari.e to maintain the record of leave availed by the individual executive, non"executive and workman as per company rule

. To maintain the personal files of executive, non"executive andworkman..!. To get the new entrants 7oining after checking and verifyingtheir personal documents concern with the post they are 7oining and to issue the7oining orders, appointment order and posting including providing informationto plant authorities from Top to 6ottom.". To maintain and complete the formalities of those employeeswho resign, retire or if terminated to issue the orders of their deductions orrefund award of %.5 and pension and other dues.#. To maintain and keep individual employees performanceappraisal, confidential reports (#.9* and assessment records of &radetest of workman and to issue %romotionH :p gradation orders in consultation

with appropriate authorities after necessary approval from management.4. )eave Travel 3llowance?)T3@ 8" :nder )T3 three options areavailable for employees"a@ 5irst option" employee avails this, in the/

styear of )T3F

he gets the amount after tax deduction.b@ Second option" employee claims )T3 and gets five daysleave. Tax deduction is done in next year. .Third option" employee claims )T3 in second year and gets five days leave.Thus he claims two years amount.


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LI TE RA TURE R E(I E*"

Intro ducton

This chapter explains the theoretical and empirical evidence about inventorymanagement. In theory, features of effective inventory management systems areexplained, how the use of computers affects the organi'ations use of inventorymanagement systems, the need for controls and how to much demand withsupply. In practice the chapter tries to look at previous studies done on theinventory management. It also establishes the knowledge gap.Successful inventory management involves balancing the costs of inventorywith the benefits of inventory. -any small business owners fail to appreciatefully the true costs of carrying inventory, which include not only direct costs ofstorage, insurance and taxes, but also the cost of money tied up in inventory.

Re 3 ew o: T/e o re2Inventory control is not a Science, more nearly it is a set of methods for figuringout how much stock to order, when and how to receive it ?Tibur, $00@ . It is oneof the roles that management has to play by putting a system of keeping track ofitems in inventory. 3 powerful inventory management system is the base of theevery good retail software package. 3n inventory management system lets youknow what our important needs, with inventory management systems are, youcan get minors to ma7ors report on what you have in stock, on order transit.9etailers software with an in!entory management system eliminatesthe guesswork from running your retail business. The system can be setup to

automatically notify you when it is time to order more inventories such as whenstock falls below a prearranged level. 6y always having your hottest items instock, you will be sure to not sell due to out"of" stock items. -any retailsoftware packages will even generate purchase orders, further streamlininginventory management. In addition to increasing your sales, retail software withan inventory management system drastically reduce your operating costs byreducing the time spent manually counting inventory and creating purchases. Itwill also track which items are selling and which are not. 6y identifying yourless moving items you can ad7ust their position, pricing or other issues earlier.

Jou can also see which items are often purchased in pairs and can group themconse;uently in the store. eeping inventory cost low is vital to competitivebenefits.


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In a company, materials management has become a distinct function.2epending on the si'e of the company it could be a separate department or in asmaller set up it could be under the care of the -anager. -aterials in a company

range from consumables, stationery to even e;uipments besides thepharmaceuticals and optical goods. The first broad section inventorymanagement which is delineated into the following parts8 %urchasing, Storage,Issue, and Inventory

Need :or n3 en tor4 contro l record 2 *+

3 comprehensive inventory control record system is relevant in order that8"a@ Doods sold can be recorded and balances in both physical and monetary

terms calculated.b@ !hecks can be implemented on regular or random basis to minimi'e lossesdue to pilferage or damage in stores.c@ Doods can be recorded on a receipt in relation to both ;uantity and price, byuse of highly effective integrated computer system besides the manual system.d@ *eplacement of stock can be ordered when re"order level is reached.e@ *ecords can be examined in order to highlight slow moving inventory whichmay deteriorate or become obsolete.f@ Inventory can be charged to the appropriate department code when issued

from store.g@ *eturns to store can be properly recordedH accounted for.h@ *ightful ;uality and ;uantity duly signed for and recorded in Doods*eceived Cote ?D*C@.

i@ Stock taking procedure at a given time is done efficiently.7@ The valuation of stock for balance sheet and profit measurement purposes canbe accurately implemented (agiri, $004@.

E m ;rc 0 l 2t u d e 2Str0 teg4 :or re2ol 3ng m0K mum ;ro: t :o r n3entor4 m n m @0to n* +

Dreen and -ischa2ick ?$00/@ found out that 7ust like any investment inbusinessF inventory needs to serve the purpose of maximi'ing profit. Aowever,in many cases inventory has turned into a ma7or cash flow constraint thusmaking it necessary to optimi'e inventory using analytical and statisticalmethods in an integrated approach.&ne of the biggest challenges in optimi'ing inventory is the fact that it is merely

an output of many inter"organi'ational processes, all too often organi'ationattempt to lower inventory using non"


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analytical approaches which lower service levels. The study wasconducted through a case study of a ma7or :S corporation, where Dreen and-ischa2ick identified two"step approach of significant valueF optimi'inginventory levels while viewing the existing order fulfillment process as a given

constraint and changing the fundamental order fulfillment process across theentire system. The first step was used to make ;uick and successful cashavailability. The second step was used to generate breakthrough business resultsand provide a robust order fulfillment process that was to perform at lowerinventory levels while providing extraordinary service levels. The real worldconstraint is taken into account prior to deciding on the appropriate changes.

Simulations are conducted to verify the appropriateness of the analytical modelsusing actual process data.!ash flow problem is identified, further analysis reveals that inventory levelsare high and turns are below most ma7or competition.This study has not focused on the systems necessary for inventory managementFthey have only taken into consideration inventory level as a strategy formaximi'ing profit.

I n3 entor4 3 0l ue u2ng 2K + 2g m0 *+

Dreen and -ischa2ick ($00$@ found out that old e;uipment are viewed as notworth understanding and improving for the operations, however, replacementcost can be staggering. !ertainty purchasing new e;uipment is necessary at

times. Aowever, fre;uently it is possible to produce good product with existinge;uipment. %roperly characteri'ing existing e;uipment using statistical methodscan yield significant improvements. The research was carried out through a casestudy to a ma7or :S manufacturer, made the decision to stop providing criticalcomponents. The supplier made the decision because the e;uipment was the +0"0 years old, yields had traditionally run at 40 and the margins were low, abaseline of the extrusion process was performed and a vast list of potentialfactors was identified during process mapping. It was also determined throughmeasurement system studies that the measurement systems were not capable of

measuring the parts. The measurement systems were improved and severalscreening designed experiments were conducted. *esults showed a few keyfactors to be important. 5ollow"up optimi'ation experiments were run. Theprocess was producing /00 yield within + months on existing numbers. Thenext step was to produce parts that had not been previously produced. The firstparts off of the new die met the desired specification, although slightly offtarget.This study has only considered the value addition or utili'ation of existinge;uipment considered outdated to produce high ;uality product efficiently,

therefore it did not consider the systems necessary for inventory management


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C , A P T E R + !

RESE A RC, MET, O -O L OG)


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Re2e0 rc/ M e t/od o log4 0 nd de2g n

I ntro ducto n

:nder this section the chapter will show the methods and techni;ues that will beused to collect and analy'e data during research. The research to be carried outis on enhancing effective inventory management in Swasthik power. 3reas to betouched on include research design, target population, types of data, sources of

data, tools to be used to collect data and the sampling design to be used.

Re2e0 rc/ M e t/od o log4*+

3 *esearch -ethodology defines the purpose of the research, how it proceeds,how to measure progress and what constitute success with respect to theob7ectives determined for carrying out the research study.

Re2 e0 rc/ de2 gn *+

The research design is descriptive in nature. The design shows the analysis ofthe variables relevant to the sub7ect under study because it will focus itsattention on the individual study and not the whole population of swasthikpower. . It is based on data collected through structured ;uestionnaire from therespondent.

T0 rg et Po;ul0 to n *+

The study targets the staff of swasthik power and vendors. %rimary data will becollected through ;uestionnaires which will be the main source of data andsecondary data will be used to assist the evaluation of data to be collected in thefield. 2ata collected in the field will be tested and results will help to write areport upon completion of analysis.

SAMPLI NG -ESI GN* +

Sampling is the process of obtaining about an entire population by examiningonly a part of it. Sampling plans calls for three decisions.


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a@ Sample unitb@ Sample si'ec@ Sampling procedure

The design to be adopted for the study will be based on convenient sampling.

The population for the study will consist of employees in the Swasthik power.

SAMPLE UNI T

S93STAI %&9E*

SAMPLE SIE

$0 employees

S AMP L I N G PR O C E -UR E * +

5or the study, respondent were selected on the basis of random sampling.

SOURCE O< T,E -ATA*+

The study re;uires both primary and secondary data.

PRIMAR) SOURC E*+

Guestionnaires

Interviews

SECON-AR) SOURCE*+

Indirect observation

)ibrary and research work

Internet, web pages and blogs 3rticles 6ooks

Secondary data will be used to analy'e the primary data in light of real worldsituations.

ANAL)SI S O< T,E -ATA*+

The primary data will be analy'ed with the help of statistical tools andtechni;ues.


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-ATA PRESENAT I ON TOOLS USE-* +

%rimary data was collected through the ;uestionnaire by distributingquestionnaires4questionnaireswith both close ended and openended questions have been used as sample respondents. The facts arepresented in the form of pie" charts and bars.

LI MI TATI ONS O< STU-)* +

The study is confined to Swasthik power, korba only.

The interpretations and recommendations applicable to this cooperative.

The study was conducted on the assumptions that the information is givenby respondent.

Sample si'e is restricted to $0 respondents.

Time constraints.

Top management has not ade;uate time, due to their busy schedule.


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C,APTER + "

- A T A ANA L ) S I S FINT E RP R E T ATI O N


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-ATA A NAL)S I S AN- IN T E R P RE T AT I O N

9.1. 2o you know about inventory management=

/@ Jes $@ Co :* cantsay

can0tsay)1

2o3)1

4es5)1

I nter;ret0 ton *+

5rom above pie chart, it is clear that most of the people are aware aboutinventory management but 0 employees are not aware.

9.. 2o you know about production management=


can0*6

2o3)1


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63/88

I nter ; re t 0 t o n * +

5rom above figure, shows that employees are aware with production

management but 0 employees are not aware.9.!. 2o you know about supply"chain management=


can7tsay*8

1

2o*(1

4es581

I nter;ret0 to n* +

5rom above pie figure , shows that only 4# employees are aware aboutsupply"chain management, /$ employees are not aware.

9.". 9hich type of operation management you use=/@ Traditional $@ Bust in time +@ 6oth

*9

*5

*3

*(

*)

9

5

3

(

)

:raditional &ust; in time !oth



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3bove figure represents that traditional method of inventory management ismore in use than 7ust in time.

9.#. 2o you know about 3"6"! analysis=

/@ Jes $@ Co :* #ant say

#ant0say

**1

2o(51

4es5+1

I nter;ret0 to n* +

5rom above pie figure , shows that 4+ employees know about 3"6"! analysisand $4 dont"now.

9.$. 2o you know about 1.E.2 analysis=

/@ Jes $@ Co +@ Somewhat

#ant0say

)1

2o3)1

4es5)1


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66/88


%ie figure shows that 40 employees are aware about 1.E.2 analysis, 0

employees

dont"now.9.%. 3re you agree that with the help of inventory management any

organi'ation can increase its productivity=/@ Strongly agree $@ 3gree +@ Indifference @ 2isagree @ Strongly

disagree

Indiference*61

"trongly

disagree)1

,isagree

)1

Agree+61

"tronglyagree

6)1

I nter;ret0 to n* +

5igure shows that 0 employees are strongly agree, + employees are agreeand / employees are indifference.

9.&. 3re you satisfy with the store activities= ? i.e. issuing of material, ;uantity,and ;uality etc. of the material@./@ Strongly Satisfy $@ Satisfy +@ 2issatisfy @ Strongly dissatisfy

"trongly

*)1

,issatisy(61

"trongly

"atisy3)1

"atisy

(61


67/88



68/88

I nter;ret0 to n* +

%ie figure shows that 0 employees are strongly satisfy, $ employees aresatisfy ,$ employees are dissatisfy and /0 employees are strongly

dissatisfy.9.. 3re you satisfy with the purchasing procedure adopted bycompany=/@ Strongly Satisfy $@ Satisfy +@ Indifference @ 2issatisfy @ Strongly

dissatisfy

Indiferen ce**1

,issatisy61

"trongly

dissatisy

)1

"atisy*91 "trongl

y"atisy

551

I nter;ret0 to n* +

3bove pie figure shows that 44 employees are strongly satisfy with thepurchasing procedure , / employees are satisfy // employees areindifference and employees are dissatisfy.

9.1. 9hat is the method do you use to issue the material=

/@ 5irst in, first out ?5I5&@ $@ )ast in, first out ?)I5&@ +@ &ther @6oth

*(

*)

9

5

3

(

) FIFO


69/88


70/88

I nter;ret0 to n* +

5igure shows that last in, first out ?)I5&@ method is mostly adopted and thenfirst in, first out ?5I5&@ . In few cases both methods are used for issuing the

material.9.11. Is there any purchasing committee=

/@ Jes $@ Co :* #antsay

*9

*5

*3

*(

*)

9

5

3

(

)

I nter;ret0 to n* +

4es 2o #ant7say

5igure shows that most of the employees are aware about the purchasingcommittee of the organi'ation.

9.1. %urchasing committee consists8/@ -anaging director, %urchase manager, Store in charge and store

manager.$@ -2, %urchase manager, doctor, 2ifferent departments heads.

+@ -2, different department heads, purchasing manager.@ -2, purchase manager, doctors.

+*61

3*)1

*6)1

((61



71/88

5igure shows that 0 of the employees are aware about purchasing committeemembers, 0 employees are not aware.

9.1!. Inventory management is used by organi'ation for/@ To reduce uncertainty. $@ To reduce uncertainty in lead time+@ To build stock for scale of economies @ To reduce the inventory cost@3ll above

*)89=5

63+(*)

reduceuncertainty

reduceuncertainty in leadtime

scale oeconomies

reducethe

inventory cost6>All

above

All above

I nter;ret0 to n* +

5igure shows that most of the employees are aware about ob7ective of inventorymanagement.

9.1". 9hich type of order method is used by organi'ation=

/@ )ot to lot $ @Economical order ;uantity +@5ixed order ;uantity @5ixed

order time

*)

9

5

3

(

)*st ?tr (nd ?tr +rd ?tr 3th ?tr


72/88


73/88

I nter;ret0 to n* +

3bove figure shows that economical order ;uantity is used by the organi'ation

for most of the items but in few cases they use other methods.9.1#. 9hich type of purchasing order is prepared=/@ -anual $@ Electronic +@ 6oth

*5

*3

*(

*)

9

53

(

)

Manual Electronic !oth

I nter;ret0 to n* +

5igure shows that organi'ation use manual methods than electronic.

9.1$.9hich type of purchasing order procedure is used by the organi'ation=/@ 5ormal? %aper work@$@ Informal?Telephonic order@+@ Electronic data interchange?E2I@ i.e. ?though e"mail@

@ 3ll above

Electronicdata

interchan

ge*)1

Allabove61

Inormal

*61

Formal

=)

1


74/88


75/88

I nter;ret0 to n* +

5igure shows that 0 work in inventory is done through formal paper work,/ works is done trough informal methods, /0 is done by E2I.

9.1%. 9ho make the purchasing order=/@ %urchasing manager $@ Store in charge +@ Store manager

"toremanager

361

@urchasing

manager+=1

"tore 'in

charge*91

I nter;ret0 to n* +

5igure shows that respondent assume that purchasing order is prepared bystore manager, / store" in manager and + purchasing manager.

9.1&. 9ho approved the purchasing order=/@ %urchasing manager $@ Store"in charge +@ Store manager

"tore;incharge

*)1

> "toremanager=1

@urchasing

manager9+1



76/88


77/88

5igure shows that + respondents assume that purchasing order isapproved by the purchasing manager, /0 by store"in charge and by storemanager.

9.1. Is there any specific place for receiving and inspection of material=/@ Jes $@ Co

yes

(61

no=61

I nter;ret0 to n* +

5igure shows that respondents assume that in company there is no specificplace for reception of material.

9.. %urchasing and storage is handled by single department=/@ Jes $@ Co

no*61

yes

961


78/88

I nter;ret0 to n* +

5igure shows that respondent assumes that purchasing and storage is done

by a single department.

9.1. 3.6.! and 1.E.2 analysis is done

/@ Jearly $@ Aalf yearly +@ Guarterly @ -onthly

monthely

=1

quaterly((1

yearly331

halyearly

(=1

I nter;ret0 to n* +

5igure shows that respondents assume that 3.6.! and 1.E.2 analysis isdone in a year, $ assume half yearly, $$ ;uarterly and monthely.

9.. %urchasing order is given in a month8/@ &ne time $@ Two times +@ -ore than two times

morethanto

times631

onetime+*1

totime

*61

I nter;ret0 to n* +


79/88

5igure shows that respondents


80/88

assume that purchasing order is given more than two times in amonth, +/ one times and / two times

9.!. Safety stock ?also called buffer stock@ is a term used by lo gi s ti c i a n s todescribe a level of extra stock that is maintained to mitigate riskof s t o c ko u ts ?shortfall in raw material or packaging@ due to uncertainties insupply and demand.

$@ Strongly agree $@ 3gree +@ Indifference @ 2isagree @ Stronglydisagree

"trongl

ydisagree

*)1,isagree*31

Indiference81

Agree(31

"trongly

agree3+1

I nter;ret0 to n* +

5igure shows that + respondents are strongly agree with the statement, $are agree and /0 are strongly disagree.

9.". 2o you have safety stock for each item=/@ Jes $ @ Co

no*81

yes

9*1
http://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Stockouthttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Stockout


81/88


82/88


5igure shows that / respondents are agree that each item has safty stock,

while /# respondents disagree.

C,APTER + #


83/88


84/88

"asthi$ poer is not so efectiveB

C,APTER + $

CONC L U S I O N F R E CO M ME N - A T I O NS


85/88

CON CLUSI ON* +

/. Inventory department of Swasthik power uses economical order;uantity as the basis for stockage levels and reorder ;uantities.

$. There exists a moderate level of satisfaction with the current

system.

+. The ma7ority of respondents had a moderate level of

experienceHknowledge of inventory management.

3B The level of efficiencyH effectiveness of the

inventory management system is moderateB

. The coordination between different departments is low, which

reduces the overall productivity company.

4. There is centrali'ed system of inventory management.


86/88

RECOMM A N-A TI ONS* +

Swasthik power should adopt accurately measure inventory

level and forecast supply needs methods.

There should be a clear and easy procedure that how inventory

will move throughout the company.

*esponsibilities should be well defined for each employee in

inventory management system.

Store should have more space so that in according to need it can

be extended.

The employees should have skills and ;ualification according

to the need of the place.

&ptimi'e process to eliminate operational bottleneck. Denerate aware in the employees for inventory management

and clearly define the ob7ectives of inventory management to

the employees of company.

-inimi'e shrinkage due to theft or unnecessary use of

inventory.

3udit should be done by


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the top management at regular basis.

3dvance inventory management technology should use to

improve performance.

There should be strong coordination between different

departments of company

Aospital should use effective product evaluation system.

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avijit kumar

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