full training report pradeep

8/8/2019 Full Training Report Pradeep

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A Training Report

On

Optimum level of transportation cost

With Special reference to

Ambuja Cement.

Submitted for the requirement of partial fulfillment of

The Degree of Master of Business Administration

(Lovely Professional University, Jalandhar)

Under the Guidance of : Submitted by:

Mr. Himesh Janartha Pradeep Kumar

(Deputy Manager commercial) Roll no-RS1802A28

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PREFACE

Learning is like eating food. It is not how much one eats that matters, what

counts how much you digest. Knowledge is potential power wisdom is real power.

Knowledge becomes poor only when it is acted upon.

On the job training plays a vital role in any professional course. The six weeks

practical on the job training, which is incorporated in the MBA course, helps the

students to see for themselves how they fit in typical business enterprise.

The training stint at Ambuja cement ltd (Darlaghat), gave me practical insight into

the working of the company especially in the field of Operation, which until now was

limited to books only. But these six weeks have been special and proved to be a

value addition in the field of Marketing and how actually functions are performed in

the organization. This training helped me to get a close look into the concurrence,

and why the summer training is important?

The first part of the report is all about the Company and its different departments,

the functioning, the structure and other important information regarding its

incorporation and current projects in hand and the future plans.

The second part is the project report related to the Optimum Cost of

Transportation which represents the financial position of the company.

ACKNOWLEDGEMENT

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Many lives and destinies are destroyed due to the lack of proper guidance,

directions oppurtunities.It is in this respect I feel that I am in much better condition today

due to continuous process of motivation and focuss provided by my guide and

parents.The process of completion of this project was a tedious job and requires

support at all stages.I would like to highlight the role played by individuals towards this.

First of all with the core of my heart, I would like to thank God who is full of

compassion and mercy. He has bestowed me with enough courage to accomplish this

task.

This project is a result of efforts, time and skills contributed by a number of

people. I would like to take this opportunity to thank all of those who have worked

towards successful completion of this project report. At the onset I would like to thank

AMBUJA CEMENT LTD as a whole for providing me the opportunity for doing the

training.

I feel privileged in expressing my deep gratitude and thanks to Mr. Himesh

Janartha (Deputy Manager) for their valuable inputs and ideas supplied in the

beginning. They took great pains to show me the right path and also held the torch for

me to walk that path. Periodic meetings with them during the last six weeks have been

enlightening not just for the purpose of project report but also for my overall intellectual

abilities.

I humbly thank Mr. H.P.S. Sethi (Depty General manager), Mr.Himesh Janartha

and S. S. Sodhi( General Manager), who had constantly helped to learn the way things

were done in the Operation department. Words alone cannot describe immeasurable

gratitude I owe to my parents. Without their help and guidance I would not have

accomplished my project.

Finally, I am grateful to my friends and fellow students currently working in the

organization for facilitating the search of raw data for the purpose of research.

Pradeep kumar

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DECLARATION

I hereby declare that the Research Project Title OPTIMUM COST OF

TRANSPORTATION this report is submitted in the partial fulfillment of requirement for

the degree of Masters of Business Administration. This report is a bonafide research

work carried out by me. No part of this report has been submitted for the award or any

other diploma/degree/fellowship or any other similar title or prize. This report is based

upon my personal opinion. Hence, it cannot be referred to for official or legal purposes.

Pradeep Kumar

MBA IIIrd Semester

CONTENTS

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1. Preface 2 page

2. Acknowledgement 3

3. Declaration 4

4. Executive summary.. .. 5

Chepter-1

Inroduction of subject

(a) Theretical Foundation6 - 10.

(b) Existing Studies11-15

Chepter-2

Overview , Intoduction, history, milestones ,locations &

achievements,Recognisation,Future plans, Technical

Details and The Environment15- 25

Chepter-3

Objectives of study and scope26

Reseach Methodology..27 -28

Chepter-4

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Analysis and interpretation..29-37

Chepter-5

Limitations38

Chepter-6

Conclution 39

Recommodation. 40

Bibliography. 41

Questionnaire42-44

EXECUTIVE SUMMARY

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Ambuja Cement Ltd. is one of the leading and most efficient producers of

cement. ACL is the lowest cost producer in the country helped by new plants , better

quality of limestone and innovative energy management efforts. It has been able to

post profits despite the low realizations in Ambuja primarily on account of excellent

operating parameters. Its predominately retail presence in Mumbai, Gujrat and Punjab

gives the company an edge over its peers in terms of pricing power.

The company is putting up a million ton capacity cement plant at Gadchandur in

Maharastra. The company is also setting up a five lakh ton capacity grinding unit in Sri

Lanka, where the company has already set up packing unit.

Chepter-1

INTRODUCTION OF THE SUBJECT

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My topic of the project report is To find the optimum cost of transportation.This is the

topic given to me by Mr. Himesh Janartha (Deputy Manager) in the Sales and

Distribution Department. This comes under logistics .Then what is Logistics-

Logistics

The definition of logistics used in this thesis is the one of Council of Supply Chain

Management Professionals, CSCMP: Logistics management is that part of the Supply

Chain Management process that plans, implements, and controls the efficient, effective

forward and reverse flow and storage of goods, services, and related information

between the point of origin and the point of consumption in order to meet customers

requirements.

According to CSCMP, Logistics Management activities typically comprise:

inbound and outbound transportation management, fleet management, warehousing,

materials handling, order fulfilment, logistics network design, inventory management,

supply/demand planning, and management of third party logistics services providers.

To varying degrees, the logistics function also includes sourcing and

procurement, production planning and scheduling, packaging and assembly, and

customer service. It is involved in all levels of planning and execution strategic,

operational and tactical. Logistics Management is an integrating function, which

coordinates and optimizes all logistics activities, as well as integrates logistics activities

with other functions including marketing, sales manufacturing, finance and information

technology.

SALES AND DISTRIBUTION

A sale is the pinnacle activity involved in selling products or services in return for

money or other compensation. It is an act of completion of a commercial activity.

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http://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Selling


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A sale is completed by the seller, the owner of the goods. It starts with consent

(or agreement) to an acquisition or appropriation or request followed by the passing of

title (property or ownership) in the item and the application and due settlement of a

price, the obligation for which arises due to the seller's requirement to pass ownership,

being a price the seller is happy to part with ownership of or any claim upon the item.

The purchaser, though a party to the sale, does not execute the sale, only the seller

does that. To be precise the sale completes prior to the payment and gives rise to the

obligation of payment. If the seller completes the first two above stages (consent and

passing ownership) of the sale prior to settlement of the price, the sale is still valid and

gives rise to an obligation to pay.

Distribution (or place) is one of the four elements of marketing mix. An

organization or set of organizations (go-betweens) involved in the process of making a

product or service available for use or consumption by a consumer or business user.

The other three parts of the marketing mix are product, pricing, andpromotion

Frequently there may be a chain of intermediaries, each passing the product

down the chain to the next organization, before it finally reaches the consumer or end-

user. This process is known as the 'distribution chain' or the 'channel.' Each of the

elements in these chains will have their own specific needs, which the producer must

take into account, along with those of the all-important end-user.

RELATION OF S&D WITH LOGISTICS

Proposes that many of business and non-business disciplines have much to offer

logistics. Also reveals that there are many theories from other disciplines that are

potentially relevant to the examination and study of logistics. States that becoming a ore

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http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Promotion_(marketing)


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creative logistics manager is not just a matter of practicing new techniques and

methodologies, but it is also about being aware of the fundamental differences between

the past and current situations. Proposes that managers have to realize that the most

important point is having the right type of atmosphere and environment in which

employees are encouraged to create, coordinate, and improve the entire business,

including facilitating a reliable network of relationships and market channels. States that

total quality management (TQM) and total relationship management (TRM) may make a

fruitful contribution to the logistics and supply chain management

You can use the Document Relationship Browser (DRB) to display linked documents

containing one or more documents from logistics, within a business process.

Currently DRB supports the display of the following object types (documents) from

Sales and Distribution (SD), Material Management (MM), Logistics Execution (LE),

Warehouse Management (WM), Plant Maintenance and Customer Service (PM/CS),

and Production Planning (PP).

Links

Within Sales and Distribution the links are mapped between sales

documents as well as documents of other applications in the

document flow. Here a document can have several predecessors or

successors. In DRB a document is considered to be directly linked to

another if it is either a direct predecessor or successor of this

document.

In Materials Management there are further links that are described in

the sections for the object types concerned.

Some logistics documents can be source documents of predecessors

in Accounting. Consequently they are linked with accounting

documents. Examples include links between billing documents and

accounting documents.

Links using the general object link are determined by DRB in the SAP

Basis system. An IDoc (Intermediate Document), for example, can be

linked with a logistics document.

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Links to a workflow instance are likewise determined in the SAP Basis

system and may also be linked to logistics documents.

How to calculate optimum cost:

Basically, to calculate it I have to calculate all the expenses of the transporters

which occurred during their trips of trucks. Means that I have to calculate per KM cost

by the data collected from different-2 transporters.Meaning ihave to set up relevant

price according to expense of transporters .

For example the expenses to calculate are given below:

1. Diesel cost per month

2. Lubricant cost per month

3. Tyre expenses per month

4. Maintenenance cost per month

5. Labour cost per month

6. Tax and insurance per month

7. Average Depreciation per month

8. Installment cost per month acc. to rate of interest (acc. to model)

(b)Existing Studies on this topic:

Supply Chain Management

Supply Chain Management is the design and management of seamless , value added

process across organizational boundaries to meet the real needs of the end customer.

The development and integration of people and technological resources are critical to

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successful supply chain integration. As the corporations strive to focus on core

competencies and become more flexible, they have reduced their ownership of raw

materials sources.

These functions are increasingly being outsourced to other corporations that can

perform the activities better or more cost effectively. The effect has been to increase the

number of companies involved in satisfying consumer demand while reducing the

management control on dailylogistics operations. Less control and more supply chain

partners led to the creation of Supply Chain management concepts. The purpose of

Supply chain management is to improve trust and collaboration among supplychain

partners, thus improving inventory visibility and improving inventory velocity.

Supply Chain Management is the process of planning , implementing and controlling the

operations of the supply chain with the purpose of satisfying the customer's

requirement as efficiently as possible. Supply Chain spans all movement and storage

of raw materials , Work-in-process , inventory and finished goods from the point of origin

to the point of consumption.

According to the CSCMP , a professional association, that developed the definition,

Supply Chain Management encompasses the planning and management of allactivities involved in sourcing and procurement, conversion and all logistics

management activities. It also includes coordination and collaboration with channel

partners which can be suppliers, intermediaries, third party etc.

AMBUJA CEMENTS LTD
http://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/logistics/index.htmhttp://www.supplychainmanagement.in/scm/scmconcept.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/logistics/index.htmhttp://www.supplychainmanagement.in/scm/scmconcept.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htm


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Supply chain management flows can be divided into three main flows:

1.The product flow

2. The information

flow

3. The finances flowThe product flow includes the movement of goods from a supplier to a customer,

as well as any customer returns or service needs. The information flow involves

transmitting orders and updating the status of delivery. The financial flow consists of

credit terms, payment schedules, and consignment and title ownership arrangements.

In essence, Supply chain management integrates supply and demand management

within and across companies. Some experts distinguish Supply Chain Management with

Logistics while others consider the term to be interchangeable.

From the point of view of an enterprise, the scope of supply chain management is

usually bounded on the supply side to the supplier's supplier and on the customer side

by your customer's customer

AMBUJA CEMENTS LTD
http://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/logistics/index.htmhttp://www.supplychainmanagement.in/scm/supplychainintegration.htmhttp://www.supplychainmanagement.in/scm/logistics/index.htm


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Supply Chain Decisions

We classify the decisions for supply chain management into two broad

categories -- strategic and operational. As the term implies, strategic decisions are

made typically over a longer time horizon. These are closely linked to the corporate

strategy (they sometimes {it are} the corporate strategy), and guide supply chain

policies from a design perspective. On the other hand, operational decisions are short

term, and focus on activities over a day-to-day basis. The effort in these type of

decisions is to effectively and efficiently manage the product flow in the "strategically"

planned supply chain.

There are four major decision areas in supply chain management: 1) location, 2)

production, 3) inventory, and 4) transportation (distribution), and there are both strategic

and operational elements in each of these decision areas.

1. Location Decisions

The geographic placement of production facilities, stocking points, and sourcing

points is the natural first step in creating a supply chain. The location of facilities

involves a commitment of resources to a long-term plan. Once the size, number, andlocation of these are determined, so are the possible paths by which the product flows

through to the final customer. These decisions are of great significance to a firm since

they represent the basic strategy for accessing customer markets, and will have a

considerable impact on revenue, cost, and level of service. These decisions should be

determined by an optimization routine that considers production costs, taxes, duties and

duty drawback, tariffs, local content, distribution costs, production limitations, etc. (See

Arntzen, Brown, Harrison and Trafton [1995] for a thorough discussion of these

aspects.) Although location decisions are primarily strategic, they also have implications

on an operational level.

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2. Production Decisions

The strategic decisions include what products to produce, and which plants to

produce them in, allocation of suppliers to plants, plants to DC's, and DC's to customer

markets. As before, these decisions have a big impact on the revenues, costs and

customer service levels of the firm. These decisions assume the existence of the

facilities, but determine the exact path(s) through which a product flows to and from

these facilities. Another critical issue is the capacity of the manufacturing facilities--and

this largely depends the degree of vertical integration within the firm. Operational

decisions focus on detailed production scheduling. These decisions include the

construction of the master production schedules, scheduling production on machines,

and equipment maintenance. Other considerations include workload balancing, and

quality control measures at a production facility.

3. Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at

every stage of the supply chain as either raw materials, semi-finished or finished goods.

They can also be in-process between locations. Their primary purpose to buffer against

any uncertainty that might exist in the supply chain. Since holding of inventories can

cost anywhere between 20 to 40 percent of their value, their efficient management is

critical in supply chain operations. It is strategic in the sense that top management sets

goals. However, most researchers have approached the management of inventory from

an operational perspective. These include deployment strategies (push versus pull),

control policies --- the determination of the optimal levels of order quantities and reorder

points, and setting safety stock levels, at each stocking location. These levels arecritical, since they are primary determinants of customer service levels.

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4. Transportation Decisions

The mode choice aspect of these decisions are the more strategic ones. These

are closely linked to the inventory decisions, since the best choice of mode is often

found by trading-off the cost of using the particular mode of transport with the indirect

cost of inventory associated with that mode. While air shipments may be fast, reliable,

and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail

may be much cheaper, but they necessitate holding relatively large amounts of

inventory to buffer against the inherent uncertainty associated with them. Therefore

customer service levels, and geographic location play vital roles in such decisions.

Since transportation is more than 30 percent of the logistics costs, operating efficiently

makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-

for-Lot), routing and scheduling of equipment are key in effective management of the

firm's transport strategy.

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Chepter-2

INTRODUCTION

Ambuja Cements was set up in 1986. In the last decade the company has

grown tenfold. The total cement capacity of the company is 18.5 million tonnes.

Its plants are some of the most efficient in the world. With environment protection

measures that are on par with the finest in the developed world.

The company's most distinctive attribute, however, is its approach to the

business. Ambuja follows a unique homegrown philosophy of giving people the authority

to set their own targets, and the freedom to achieve their goals. This simple vision has

created an environment where there are no limits to excellence, no limits to efficiency.

And has proved to be a powerful engine of growth for the company.

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As a result, Ambuja is the most profitable cement company in India, and one of

the lowest cost producer of cement in the world.

Ambuja Cements Limited (the Company) is one of the leading producers of

cement in India. The Company is now a part of Holcim Group, which is one of the

largest cement maker in the world with operations in more than 70 countries and

employing almost 90,000 people.

The Company considered Corporate Governance as an integral part of good

management much before the concept evolved in corporate India. The Companys

phenomenal growth is achieved inter-alia with committed best business practices and

ethical climate. The best business practices and ethical code are ingrained in the

Company culture and its personnel and played a vital role in the success of the

Company.This Code of Conduct establishes a common and consistent framework

across the organization for how we will achieve our mission and goals. It providesdirection and clarification in how we conduct our daily business. High business ethics

and personal integrity ensure our credibility and reputation as a respected corporate

citizen.

Today, Ambuja is the 3 rd largest cement company in India, with an annual plant

capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue in

excess of Rs.3298 crores.

More importantly, its plants are some of the most efficient in the world. With

environment protection measures that are on par with the finest in the developed world.

But the companys most distinctive attribute is its approach to the business.

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Ambuja believes its most valuable assets arent cement plants.

They are the people who run the plants.

This unique vision is encapsulated in the companys homegrown philosophy of

giving people the authority to set their own targets, and the freedom to achieve their

goals.

Its called I can

This simple vision has created an environment where there are no limits to

excellence, no limits to efficiency. And has proved to be a powerful engine of growth for

the company.

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As a result, Ambuja has consistently raised the bar in all aspects of the cement

industry. Be it transportation, plant efficiency, brand building or human resource

development.

Take a look:

First plant set up in record time

When Ambuja set up its first plant in 1986, the accepted time period for installing

a plant was 3 years.

Ambuja, did it in less than 2 years. And with a significantly lower capitalexpenditure.

In 1993 the company went a step further and bettered its own record. Ambuja's

second plant was installed in a mere 13 months - the quickest time for setting up a one

million tonne cement plant.

A whole new way of transporting cement

In the early 90s, almost all cement in India travelled by rail or road. And in bags.

A mode that involves deterioration of both, the quality and volume of cement.

In 1993, Ambuja Cement set up a complete system of transporting bulk cement

via these a route. Making it the first company in India to introduce bulk cement

movement by sea. Others followed and today, about 10% cement travels by this new

route.

The facility comprises: A dedicated port at the Gujarat plants, capable of berthing

40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, and

seven special bulk cement vessels.

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This capability has enabled us to supply fresh cement to many coastal markets

domestic and international.

Branding a commodity

Cement is a commodity, sold largely on price. Ambuja Cement was the first

company to create a brand out of cement and command a premium. It was also the first

to introduce a special cell, providing technical services to consumers and masons.

Today, this has become the norm in cement marketing.

The trick of course was to provide a consistently high quality of cement,

backed by excellent service. This was reinforced by a strong dealer network.

The result is that customers are ready to pay 2-3% premium for Ambuja Cement

for the value they receive. Ambuja Cement is the top brand in Western, Northern,

Central and Eastern India. Exports

Ambuja Cement exports almost 17% of its production in a very competitive

international environment. For the last ten years, Ambuja Cement remains Indias

highest exporter of cement.

This has been possible for two reasons

One, the quality of cement matches the best in the world.

Two, the dedicated bulk cement transportation capability at our Gujarat plant.

The Environment

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From the outset, Ambuja has believed that a cement plant cannot flourish at the

cost of the environment. Thats why it adheres to the most rigorous international

environmental norms.

The pollution levels at all its cement plants are even lower than the rigorous

Swiss standards of 100 mg/NM 3. At the Gujarat plants, surface miners have been

employed to scrape the surface of the mines. Thus ensuring that all the mining is totally

blast free. There is no noise or air pollution. Similarly at the Himachal Pradesh plant,

Ambuja has employed techniques that have made mining absolutely safe and pollution

free. Not surprisingly then, the company has consistently won awards for its pollution

free plants. Awards as prestigious as the National Award for Outstanding Pollution

Control and The Eco-Gold Star of Tata Energy Research Institute (TERI).

Corporate Social Responsibility

In 1991, the company set up Ambuja Cement Foundation to trigger all-round

development of the people around its cement plants. The Foundation decided to

traverse the difficult but more productive path of helping the people to help themselves.

With great dedication and commitment, the foundation energized the local people to

participate and own their development process. It became a facilitator and catalyst,

rather than a one-time fund provider. It developed easily replicable and sustainable

modules for water management, sustainable agriculture and healthcare.

All this effort in discharging its social responsibility has earned the company recognition

across Asia.

Milestones

Building of a cement plant in record 13 months.

2.8 kilometer conveyor belt running through three hills was constructed in just 9

months. Introduced a completely new system of transporting cement in India the bulk

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cement transportation by sea. Introduced complete blast free limestone mining by using

the surface miner in limestone mining for the first time in India. Created water reservoirs

in used up mines and raised the water table in arid areas. Our plants have achieved the

lowest pollution levels comparable with the most strongest Swiss standards.

Recognition

National Award for commitment to quality by the Prime Minister of India.

National Award for outstanding pollution control by the Prime Minister of India.

Eco-Gold Star by TERI

Best Export Award by CAPEXIL.

Award for Corporate Social Responsibility by Business World FICCI

International Award For Rural Development by Asian Management Institute

(AIM)

ISO 9002 Quality Certification.

ISO 14000 Certification for environmental systems.

Technical Details

Established 1986.

Total Capacity 15 million tonnes.

Infrastructure Dedicated port at Gujarat. Capable of berthing 40,000 DWT

vessels with carrying capacity of 20,000 tonnes.

Packing terminals at Mumbai, Surat and Sri Lanka.

Seven dedicated bulk cement ships.

Careers:

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At Ambuja, a simple homegrown philosophy is at work for the last 20 years - 'let

people set their own targets, give them freedom to achieve them and their task

becomes a personal mission : I CAN'

These two words have made our people achieve impossible feats. And, on the

way, have made Ambuja Cement one of worlds most respected cement companies.

Where people push their limits up as if none existed.

Environment protection measure that conform to the worlds best

Achievements

The pollution levels at all our cement plants are even lower than the rigorous

Swiss standards of 100 mg/NM3. The air is so clean that a rose garden flourishes right

next to the main plant.

Benchmarking quality standards for the industry.

Ambuja has received the highest quality award - the National Quality Award. The

only cement company to do so. Its also the first to receive the ISO 9002 quality

certification.

Reinventing cement transportation.

Almost 90% of cement in India travels by rail or road. And in bags.

Our people realized that the only way to speed up transportation was a

completely different approach. The result: a bulk transporting system via the sea.

Making us the first company to introduce the concept of bulk cement movement by sea

in India.

AMBUJA CEMENTS LTD

Name of company Location State Process Used

Ambuja Darlaghat Himachal Pradesh

Ambuja Ropar Punjab Grinding Unit

Ambuja Bhatinda Punjab Grinding Unit

Ambuja Cement Raj. Ltd. Pali Rajasthan Dry

Ambuja Cement Kodinar Gujarat Dry

Ambuja Eastern Sankrail West Bengal Grinding Unit

Ambuja Eastern- CTG Bhatapara Chhattisgarh Dry


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LOCATION MAP

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Chepter-3

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RESEARCH METHODOLOGY

For the successful research the manipulation of certain things, concepts,symbols for the purpose of generalization is inevitable. Research is done

so as to verify knowledge. Research is the pursuit of the truth with the help

of the study. In order to conduct a meaningful research the following

procedures were followed.

1. Setting the objectives of the study:

Objective is to find the optimum cost of transportation .

2. Developing Research Plan :

The research is planned in such a way as to give a clear picture by the final

conclusion drawn from the study.

The primary data source was chosen for the study. This was desired so

because it gives the primary information. More over first hand information can easily be

attained by this method. Lastly most important is the latest information which we will not

be gets anywhere else. The method got for caring out the study is discussed here as

under:

Sampling Plan:

This was designed so as to help in making decisions in the following cases:

(a) Sampling Unit :

The respondents were taken to all the transporters in Darlaghat.

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(b) Sampling Size :

A total of hundread respondents were contacted.These numbers include the

A.D.K.M. society Transporters and BLL, GLL and S.D.T.O. transporters.

(c) Sampling Procedure:

All the transporters in darlaghat are personally visited for this research.

3. Data Collection:

The data is maily collected from primary source is called primary data. The primary datais original in character and is obtained by a study specifically designed to fulfill the data

needs of the problem at hand. It is collected through personal interviews, questionnaires or

observation and by survey method.

The secondary sources of data refer to already publish data or data collected by other

agencies. It is second hand data. It is available in published form.The secondary data used

in this project is obtained from the annual reports of ACL.

NEED OF THE STUDY:-

To know about the Optimum cost of transportation of ACL in its future projects, in order

to set relevant rates in transportation & to compare the data to take analytical overview of

the company.

SCOPE OF THE STUDY

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Analysis of the survey

This projectal was allotted to me by Mr.Himesh Janartha (Deputy Manager

commercial) of S & D department so I did my survey in darlaghat. As there are foursocieties in darlaghat ADKM, SDTO, BLL & GLL. I collected different views of different

transporters in order to calculate optimum cost of transportation. In order to find that I

have to find the all the expenses inauccred by the transporters as i show in my

questionnaire like as :

(b) Diesel cost per month

(c) Lubricant cost per month

(d) Tyre expenses per month

(e) Maintenenance cost per month

(f) Labour cost per month

(g) Tax and insurance per month

(h) Average Depreciation per month

(i) Installment cost per month acc. to rate of interest (acc. to model)

As there are mainly two things (products) given by Co. to their truck transporters

so as they can load their trucks.

1. Clinker

2. Cement

Transporters societies

There are four transport societies in ACL. . It was established in 1990 by ACL itself

with the help of local villagers and its employees . These are :-

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1..Ambuja- Darlaghat- Kashlog- Mango ( A. D.K.M. )

2. Solan -Darlaghat- Truck-Operator Union (S.D.T.O. )

3. Goldan -Land -Looser ( G.L.L. )

4. Baghal- Land -Looser ( B.L.L )

These societies are divided into four parts so as their work can be managed

separately.These societies works in four steps.

1. Orders

2. Dispatch

3. Freight

4. Maintenance

1. Orders:

Detailed order list is received through On Line system from S & D dept . S & D

are inter-connected through LAN(Local Area Network) with those transporter socities.

The Performa of Order list is given below

2. Dispatch:

AMBUJA CEMENTS LTD

Sr. No. Annex Order No. Destination Category Qty. Product


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On receipt of the list of orders allotted to these Societies, these orders are

processed simultaneously the trucks are serially noted in the record book . As the

information received the driver of concerned truck repots to booking office of S & D to

get the printed DO ( Dispatch Order ) for that particular truck with the destination and

hence the truck is loaded for the destination .After loading the truck , these societies

prepares LR on the basis of Challan or Invoice which is prepared by the booking office

Maximum acceptable load by the society is 18 MT. These Societies handling the

functions 24 hours in the shift duty by 4 persons .

3. Frieght:

Frieght is calculated on the basis of per MT capacity as well as Km basis. If the LR isprepared for TO PAY basis then freight is received on the spot from the dealers and if

the freight is for TO BE BILLED then a separate supporting bill is prepared with an

annexure of those LRs and received from A/c of ACL. After that it is given to the truck

owner.

4. Maintenance:

The societies has appx 4000 trucks which are assigned an identification codes

like A1,A2..Earlier the society was having its own workshop for maintenance of

trucks which caused a lot of burden and maximum manpower. Maintenance work was

reducing day to day but the expenses as it were .For avoiding the same it was decided

to abolish the workshop. Now they are getting repaired the vehicles from the Ropar.

Maximum running of a truck in a month 5000-5500 Km. Maintenance cost is Rs 4000

4500 per truck per month . Tyres are get replaced after 70000-75000Km

VIEWS OF TRANSPORTERS FOR CLINKER

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AMBUJA CEMENTS LTD

No. of

tpts

Tax

and

insuran-

-ce per

month

Average

depreci-

tion per

month

Model Install

ment

per

mont-

-h

acc.

to

model

Total

cost

per

month

(appx)

Total

load

in a

mon

-th

(MT)

Expens

es per

MT

Rate Friegh

-t per

month

/Km/M

T

1. 2780 10500 2006 21000 89000 196 454 455 453

2. 2780 10700 2006 20500 95000 210 453 454 453

3. 2780 11500 2007 23500 90000 198 455 457 453

4. 2780 10400 2005 19500 88000 193 456 458 453

5. 2780 10900 2007 23500 84500 185 457 459 453

6. 2780 10700 2005 19000 76700 169 454 455 453

7. 2780 11500 2007 24000 88000 195 452 454 453

8. 2780 10700 2006 20000 92000 202 455 456 453

9. 2780 10700 2006 21000 95000 210 453 455 453

10. 2780 10700 2006 20500 10000 220 455 457 453

Optimum Cost should be- 456 MT


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So in the following table we find that what are the monthly expenses of the transporters

when they loaded clinker in their trip. So from that following calculations we find that the

optimum cost for the transporters when they loaded clinker is 456 MT.So all the

expenses are mentioned in the questionnaire which occurred by the transporters on

their trucks.

Some annual details of expenditures of truck operators of himachal Pradesh

Darlaghat ,Distt.Solan

Liabilities of the operators

1. Tokan tax = Rs 2500/-

2. Goods tax = Rs 4840/-

3. Route Permit = Rs 1945/-

4. N.P. = Rs 13,500/-

5. Insurance = Rs 22,209/-

6. Counter sign of Haryana = Rs 5000/-

7. Counter Sign of Panjab = Rs 6000/-

8. H.P. Permit = Rs 500/-

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So,Total cost per Km of the Transporter = Total Expenses / total

distance

Views of Transporters for Cement

AMBUJA CEMENTS LTD

No. of

transporter

s

Per KmCost

No.oftransporters

Per Kmcost

No. oftransporters

Per Km cost

1.

2.

3.

4.

26

28

29

28

5.

6.

7.

8.

27

26

29

26

9.

10.

29

27

Av. Per Km cost 27.50 (appx)


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No. of

tpts

Cement

trip per

month

Distance

covered

per

month to

different

-2

stations.

Diesel

cost acc

to per

month

(Rs

33.57/ltr)

Dieselcons.Permonth(

Lubricant

cost per

month(Rs

180/ltr)

Mainenen

ce cost

per month

Labour

cost per

month

1. 14 3000 93996 2800 1080 7000 15000

2. 14 2900 87200 2600 1100 7500 14000

3. 13 2800 83900 2500 1150 6500 13000

4. 12 2700 83925 2400 1100 6300 12500

5. 10 2600 77211 2300 1080 6000 11000

6. 09 2500 73854 2200 1100 6000 10600

7. 11 2650 77211 2300 1150 6600 12000

8. 13 2850 67140 2000 1100 7200 12500

9. 12 2900 63787 1900 1080 7000 11500

10. 12 2800 70500 2100 1080 6800 12000

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So we find that the per Km cost for the cement should be Rs 56/ Km.

AMBUJA CEMENTS LTD

No. of

tpts

Tax

and

insuran-

-ce per

month

Average

depreci-

tion per

month

Model Install

ment

per

mont-

-h

acc.

to

model

Total

cost per

month

(appx)

Per Km cost

1. 2240 11000 2006 21400 160000 54

2. 2500 10700 2006 20500 155000 52

3. 2240 11500 2007 23500 150000 54

4. 2780 10400 2005 19500 147000 55

5. 2780 10900 2007 23500 144000 56

6. 2240 10700 2005 19000 143000 57

7. 2500 11500 2007 24000 148000 56

8. 2780 105700 2006 20000 150000 58

9. 2780 10700 2006 21000 152000 57

10. 2780 10700 2006 20500 155000 56

Av.Cement cost Per Km = Rs 56/Km


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Chepter-5

LIMITATIONS

1. The company is not willing to disclose all its facts regarding operation strategies

applicable in the organization.

2. The scope of research is limited only to ACL.

3. Due to limited resources my research is confined to a limited scope.

4. The respondents give not proper response due to pressure of work load.

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Chepter-6

CONCLUTION

ACL is Fast growing enterprise. A brief Study of the project gives the

conclution that the optimum per km cost for clinker is Rs 28 approximately and for

cement it should be Rs 56.So according to the survey done by me this should be the

optimum level which should be helpful to both Ambuja Cement Company And for the

transporters.

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REFERENCES

R C Sharma , Krishan Mohan , Business Correspondence and report

Writing , Second edition , Tata Magraw Hill

www.ambujacement.com

Sales And Distribution Mgt Mr.Himesh Janartha

(Deputy manager

copmmercial )

AMBUJA CEMENTS LTD
http://www.ambujacement.com/http://www.ambujacement.com/


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Recommendation

1. More meetings with the transporters.

2. Try to improve the quality of product so that their is more demand for the

transporters so as they can load their trucks .

3. Reduce the price set according to competitotors.

4. Reduce the price of the fuel so that so that the transporters get the goodincome.

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QUESTIONNAIRE FOR OPTIMUM COST OF TRANSPORTATION

This questionnaire is the part of research work conducted by Pradeep Kumar, a

student of MBA at Lovely professional University (Jalandhar). I affirm that the answersgiven by the respondent will be used for any other purpose except this research work.

Name:

Address:

CEMENT TRIP/ MONTH ..,

LOAD OF CEMENT IN A TRIP . ,

LOAD OF RAW MATERIAL IN ATRIP .....,

LOAD PER TRIP .........,

TOTAL LOAD IN A MONTH . ,

DISTANCE PER TRIP .

, DISTANCE COVERED PER MONTH ,

(2) DIESEL

DIESEL COST ,

BOTH SIDED LOADED .,

ONE SIDE EMPTY ,

AVERAGE CONS. PER TRIP ,

DIESEL COST PER MONTH .,

(3) LUBRICANT

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(7) TAXES AND INSURANCE

ACC. TO MODEL INSURANCE PER YEAR .,

COUNTERSIGNED PERMIT .,

GOODS TAX .............., TOKAN TAX ,

H.P. TAX PER ANNUM ,

TOTAL ,

TAX AND INSURANCE / MONTH .,

(8) DEPRECIATION

Chassis rate ,

Body ,

TOTAL ,

RATE OF DEPRECIATION1st year ., 2nd year ,

3rd year .., 4th year .,

5th year ,

Average Depreciation per ANNUM (Rs) ,

AVERAGE PER MONTH ,

(9) INTEREST

CHASSIS COST ..,BODY ,

TOTAL ,.

RATE OF INTEREST .,

INTREST PER ANNUM ...,

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(10) TOTAL

TOTAL COST / MONTH ..,

EXPENSES/MT ,

RATE ,

FREIGHT RATE/KM/MT ..,

Signature

full training report pradeep

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