cost accounting project (2)

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COST ACCOUNTING PROJECT PROCESS COSTING NAME: RUPEN CHALWA MCOM- PART-1 INTRODUCTION Process costing is an accounting methodology that traces and accumulates direct costs , and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product. It assigns average costs to each unit, and is the opposite extreme of Job costing which attempts to measure individual costs of production of each unit.

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COST ACCOUNTING PROJECT

PROCESS COSTING

NAME: RUPEN CHALWAMCOM- PART-1

INTRODUCTION

Process costingis an accounting methodology that traces and accumulatesdirect costs, and allocatesindirect costsof a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product. It assigns average costs to each unit, and is the opposite extreme ofJob costingwhich attempts to measure individual costs of production of each unit.it is a method of assigning costs to units of production in companies producing large quantities of homogeneous products.

Process costing is a type of operation costing which is used to ascertain thecostof a product at each process or stage of manufacture.CIMAdefines process costing as "The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes.

The importance of process costing[edit]Costing is an important process that many companies engage in to keep track of where their money is being spent in theproductionand distribution processes. Understanding these costs is the first step in being able to control them. It is very important that a company chooses the appropriate type of costingsystemfor their product type and industry. One type of costing system that is used in certain industries isprocess costingthat varies from other types of costing (such asjob costing) in some ways. In process costing unit costs are more like averages, the process-costing system requires less bookkeeping than does a job-order costing system. Thus, some companies often prefer to use the process-costing system.

tudy of vehicle manufacturing processes from rawmaterialto finish vehicles.Study ofVehicle TrackingSystem (VTS)& equipmentinterface.Auto closing system (Concept, design & fabrication)of floor service pit to improvesafety of human.

SUBMITTED BY-------------------4THYEAR ELECTRICAL ENGINEERINGYMCA INSTITUTE OF ENGINEERINGFARIDABAD

tudy of vehicle manufacturing processes from rawmaterialto finish vehicles.Study ofVehicle TrackingSystem (VTS)& equipmentinterface.Auto closing system (Concept, design & fabrication)of floor service pit to improvesafety of human.SUBMITTED BY-------------------4THYEAR ELECTRICAL ENGINEERINGYMCA INSTITUTE OF ENGINEERINGFARIDABAD

COMPANY PROFILEMARUTI SUZUKI INDIA LIMITEDMaruti Suzuki is one of India's leading automobile manufacturers and the market leaderin the car segment, both in terms of volume of vehicles sold and revenue earned. Untilrecently, 18.28% of the company was owned by theIndian government, and 54.2% bySuzukiofJapan.The Indian government heldaninitial public offeringof 25% of thecompany in June 2003. As ofMay 10,2007, Govt. of India sold its complete share toIndian financial institutions. With this, Govt. of India no longer has stake in MarutiUdyog.MarutiUdyogLimited(MUL)wasestablishedinFebruary1981,thoughtheactualproduction commenced in 1983 with the Maruti 800, based on theSuzuki Altokei carwhich at the time was the only modern car available in India, its' only competitors- theHindustan AmbassadorandPremier Padminiwere both around 25 years out of date atthat point. Through 2004, Marutihas produced over 5 Million vehicles.Marutiare sold inIndia and various several other countries, depending upon export orders. Cars similar toMaruti (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured inPakistanand otherSouth Asiancountries.The company annually exports more than 50,000 cars and has an extremely largedomestic market in India selling over 730,000 cars annually.Maruti 800, till 2004, wasthe India's largest selling compact car ever since it was launched in 1983. More than amillion units of this car have been sold worldwide so far. Currently,Maruti Altotops thesales charts and Maruti Swift is the largest selling in A2segment.Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" iscommonly used to refer to this compact car model. Till recently the term "Maruti", inpopular Indian culture, was associated tothe Maruti 800 model.

MARUTI SUZUKI INDIA LIMITEDMaruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, hasbeen the leader of the Indian car market for over two decades.Its manufacturing facilities are located at two facilities Gurgaon and Manesar south ofNew Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units perannum. The Manesar facilities, launched in February 2007 comprise a vehicle assemblyplant with a capacity of 100,000 units per year and a Diesel Engine plant with an annualcapacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have acombined capability to produce over 700,000 units annually.More than half the cars sold in India are Maruti cars. The company is a subsidiary ofSuzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is ownedby the public and financial institutions. It is listed on the Bombay Stock Exchange andNational Stock Exchange in India.During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,over six million Maruti cars are on Indian roads since the first car was rolled out onDecember 14,1983.Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, WagonR, Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4are maufactured in Manesar, Grand Vitara is imported from Japan as a completely builtunit (CBU), remaining allmodels are manufactured in Maruti Suzuki's Gurgaon Plant.Suzuki Motor Corporation, the parent company, is a global leader in mini and compactcars for three decades. Suzukis technical superiority lies in its ability to pack power andperformance into a compact, lightweight engine that isclean and fuel efficient.

Maruti is clearly an employer of choice for automotive engineers and young managersfrom across thecountry. Nearly 75,000 people areemployed directly by Marutiand itspartners.The company vouches for customer satisfaction. For its sincere efforts it has been rated(by customers)first in customer satisfaction among all car makers in India for nine yearsin a row in annual survey by J D Power Asia Pacific.Maruti Suzuki was born as a government company, with Suzuki as a minor partner tomake a people's car for middle class India. Over the years, the product range haswidened, ownership has changed hands and the customer has evolved. What remainsunchanged, then and now, is Marutismission to motorize India

BACKGROUND OF THE INDIAN AUTO INDUSTRYAlthough the Indian car industry was established in the late forties, there was littlegrowth or technical progress, as passenger cars were given very low priority in theschemeofCentralizedEconomicPlanning.Inthe1980s,thecarindustrywasundergoing technological stagnation and was characterized by low production volumes,high cost and low productivity. The consumer had very little choice and the market wasselling just around 30,000 cars per year.There was a clear need to provide a cost effective, reliable and quality car to thecustomers. Maruti Suzuki India Limited was incorporated in such a scenario as a fullyowned Government Company on February 24, 1981 with a resolve to bring aboutexpansion and technological modernization, of the automobile sector. Thus MSIL, whenstarted was entrusted with the task of achieving the following policy objectives:

Modernization of Indian Automobile Industry.Production of Vehicles in large volumes, which was necessary for economicgrowth.Production of Fuel-efficient vehicles to conserve scarce resourcesModernization of Indian Automobile Industry.Production of Vehicles in large volumes, which was necessary for economicgrowth.Production of Fuel-efficient vehicles to conserve scarce resources.Choice of product and collaboratorTo achieve the above objectives, one of the foremost tasks before. Maruti SuzukiIndia Limited was to determine the most suitable product mix and to select themost suitable foreign partner who would be willing to accept MSIL srequirements in terms of product mix, technology transfer, and equalityparticipation and had therequired technological expertise and experience in producing high quality, reliableand fuel efficient vehicles.After extensive discussion with several major European and Japanese carmanufacturers, MUL chose Suzuki Motor Corporation (SMC) further increased its equityholding to 50% in the year 1992, converting . Maruti Suzuki India Limited, into a Non-Government Company with a total Equity base of Rs. 1322.92 million.ACKGROUND OF SMCSUZUKI was founded in 1909 as Suzuki Loom Manufacturing Company. It startedmanufacturing motorcycles in 1952 and has become a world leader in the manufactureof two-wheelers .SUZUKI started producing cars from 1955.Today it is Japans largestmanufacturers of small , fuel-efficient cars. At present the companys name is SUZUKIMOTOR CORPORATION.

MARUTI SUZUKI INDIA LIMITEDSUZUKI AND MARUTIS WORLD-CLASS MANUFACTURINGFACILITIES AT MANESAROn February 06,2007 Mr. Bhupendera Singh Hooda , Chief Minister of Haryanainaugurated three world-class manufacturing facilities set up by SMC and Maruti SuzukiIndia Limited.The facilities inaugurated were as follows:MSILs fourth car Assembly plant.A diesel engine and transmission plant, set up under a joint ventureof SMC and MSILcalled Suzuki Power train India Limited (SPIL)SMCs two-wheeler plant in Gurgaon, Suzuki Motorcycle IndiaPrivate Limited (SMIPL).INTRODUCTION TO MARUTI SUZUKI INDIA LIMITED

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MARUTI SUZUKI INDIA LIMITEDThe system then stores the data to the host computer for storing analyzing and forfuture useThe data related to testing is handled by the test management system orTMS which in turn interacts with the PMS.At these stations the magnetic RFID Tag communicates with the tracking systemknown as PMS system via the Tag Controller to exchange and verify the data.Additionally, the RFID tags also exchange data with other equipment and machineson the assembly line in the same way, using the Tag Controller. The Tag containsthe data related to the engine kept on the palate.The RFID Tag will start receiving data from set up station for example, type ofengine, engine number, master data, etc. As the pallet goes along the line anddifferent operations are performed on the engine by various machines, the RFID Tagcontinues collecting data from machines recording the operation done, its status, etc.When the pallet reaches the release station, the entire data in the RFID Tag istransferred to the PMS and after updating, it is flushed from the Tag. Now the tag isready for the next engine loading.

MARUTI SUZUKI INDIA LIMITEDVTS IN VEHICLE INSPECTION(VI)In theVehicle Inspection Shop, tracking is done at two points:FC-ONandFC-OK.After FC-OK, an FC-OK confirmation Sticker is attached to rear window of thevehicle, and then the vehicles are transferred to the dispatch area.In the vehicle inspection shop, the VTS is integrated with the TECH-1 systemwhich carries out the emission check and the air bag check.Without the TECH-1 check FC-OK of the vehicle cannot be done.This ensures that the vehicle has been passed through all the necessary checks.On the Quality Front, the VTS interacts with the quality gate system to provide faultstolerance. All defects details are tracked through the VTS to ensure that no vehicle getsFC-OK clearance without rectifying the defects.

MARUTI SUZUKI INDIA LIMITEDHence, VTS is a system that offers real time data to facilitate quick decision. It carriesout real time monitoring to detect errors and quality issues well in time; it broadcastsmessages that facilitate in-line correct evection at the shop floor.