inventory management progect

8/6/2019 Inventory Management Progect

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INTRODUCTION:

TELECOMMUNICATION

The word telecommunication was adapted from the French word telecommunication. It is a

compound of the Greek prefix tale- meaning 'far off', and the Latin communicate, meaning

'to share'. Telecommunication is the transmission of signals over a distance for the purpose of

communication. In modern times, this process almost always involves the sending of

electromagnetic waves by electronic transmitters but in earlier years it may have involved the

use of smoke signals, drums or semaphore. Today, telecommunication is widespread and

devices that assist the process, such as the television, radio and telephone, are common in

many parts of the world. There is also a vast array of networks that connect these devices,including computer networks, public telephone networks, radio networks and television

networks. Computer communication across the Internet, such as e-mail and instant

messaging, is just one of many examples of telecommunication.

The basic elements of a telecommunication system are:

a transmitter that takes information and converts it to a signal for transmission

a transmission medium over which the signal is transmitted

a receiver that receives and converts the signal back into usable information

Often telecommunication systems are two-way and devices act as both a transmitter and

receiver or transceiver. For example, a mobile phone is a transceiver. Telecommunication

over a phone line is called point-to-point communication because it is between one

transmitter and one receiver, telecommunication through radio broadcasts is called broadcast

communication because it is between one powerful transmitter and numerous receivers.

A collection of transmitters, receivers or transceivers that communicate with each other is

known as a network. Digital networks may consist of one or more routers that route data to

the correct user. An analogue network may consist of one or more switches that establish a

connection between two or more users. For both types of network, a repeater may be

necessary to amplify or recreate

the signal when it is being transmitted over long distances. This is to combat attenuation that

can render the signal indistinguishable from noise.


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The shaping of a signal to convey information is known as modulation. Modulation is a key

concept in telecommunications and is frequently used to impose the information of one signal

on another. Modulation is used to represent a digital message as an analogue waveform. This

is known as keying and several keying techniques exist these include phase-shift keying,

frequency-shift keying, amplitude-shift keying and minimum-shift keying. Bluetooth, for

example, uses phase-shift keying for exchanges between devices.

HISTORY OF GSM

The Group Special Mobile (GSM) was created in 1982 by European Conference of postal

and Telecommunications Administrations (CEPT) with the objective of developing a

standard for a mobile telephone system that could be used across Europe. In 1989, GSM

responsibility was transferred to the European Telecommunications Standards Institute

(ETSI).The phase I of the GSM specifications were published in 1990. The first GSM

network was launched in 1991 by Radiolinja in Finland. By the end of 1993, over a million

subscribers were using GSM phone networks The growth of cellular telephone systems

started in the early 1980s, particularly in being operated by 70 carriers across 48 countries.
http://en.wikipedia.org/wiki/European_Telecommunications_Standards_Institutehttp://en.wikipedia.org/wiki/Radiolinjahttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Cellular_telephonehttp://en.wikipedia.org/wiki/European_Telecommunications_Standards_Institutehttp://en.wikipedia.org/wiki/Radiolinjahttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Cellular_telephone


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The Global System for Mobile communications (GSM: originally from Group Special

Mobile) is the most popular standard for mobile phones in the world. GSM service is used by

over 2 billion people across more than 212 countries and territories. The ubiquity of the GSM

standard makes international roaming very common between mobile phone operators,

enabling subscribers to use their phones in many parts of the world.

From the point of view of the consumers, the key advantage of GSM systems has been

higher digital voice quality and low cost alternatives to making calls such as the Short

Message Service (SMS).

The advantage for network operators has been the ability to deploy equipment from different

vendors because the open standard allows easy inter-operability. Like other cellular standardsGSM allows network operators to offer roaming services which mean subscribers can use

their phones all over the world.

GSM is a cellular network, which means that mobile phones connect to it by searching for

cells in the immediate vicinity. GSM networks operate in four different frequency ranges.

Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some countries in the

Americas (including the United States and Canada) use the 850 MHz and 1900 MHz bands

because the 900 and 1800 MHz frequency bands were already allocated.

The GSM logo is used to identify compatible handsets and

equipment.

There are four different cell sizes in a GSM network

macro

Micro

Pico

Umbrella cells.
http://en.wikipedia.org/wiki/Roaminghttp://en.wikipedia.org/wiki/Image:GSMLogo.jpghttp://en.wikipedia.org/wiki/Roaming


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The coverage area of each cell varies according to the implementation environment. Macro

cells can be regarded as cells where the base station antenna is installed on a mast or a

building above average roof top level. Micro cells are cells whose antenna height is under

average roof top level; they are typically used in urban areas. Pico cells are small cells whose

diameter is a few dozen meters; they are mainly used indoors. Umbrella cells are used to

cover shadowed regions of smaller cells and fill in gaps in coverage between those cells.

The network behind the GSM system seen by the customer is large and complicated in order

to provide all of the services which are required. It is divided into a number of sections and

these are each covered in separate articles.

The Base Station Subsystem (the base stations and their controllers). The Network and Switching Subsystem (the part of the network most similar to a

fixed network). This is sometimes also just called the core network.

The GPRS Core Network (the optional part which allows packet based Internet

connections).

All of the elements in the system combine to produce many GSM services such as voice calls

and SMS

INVENTORY MANAGEMENT

Inventory refers to the ideal resources that can be put to some future use. Manufacturing and

several services organisation have significantly invested in the inventory. Investment on the

inventory has the direct bearing on the profitability if the firm. However in the last 20 years

it has been seen that world class performance of the firm hinges on the firm ability to cut the

investment on the inventory to very low level.

In Aircel planning is done for the dependent items as the items are required for the setting up

of the tower at different locations and for the maintenance of the existing towers . So that

they can provide with the efficient connectivity throughout the whole country

FOLLOWING ITEM KEPT IN THE INVENTORY

DIFFRENT TYPE OF INVENTORY
http://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Antenna_(electronics)http://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Antenna_(electronics)


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SEASONAL INVENTORY

Organisation carry inventory to met the fluctuation in demand arising out of seasonality .

During summer and in winter demand for different equipment increases as the rate of failure

of sites is very high in comparison to the rest of the year.

In order to meet such fluctuation we have to manage the inventory so that we can full fill the

demand for the various equipments eg- microwave antina , shelther , mux(multiplexer) , IDU,

ODU , DTRU(Dual trans reciver unit) .

DECOUPLING INVENTORY

Manufacturing system typically involves series of production and assembly workstations .

Raw material passes through these stages before it is converted it into the finished goods .

each stage behave idiosyncratically on account of varying process times , down times and

resource availability . Therefore planning and control of such multy stage production

becomes very complex. One way to simplify the production planning and control is to

decouple the successive stage usenig the inventory at some intermediate points. Each stage

will have the input buffer as well as the output buffer . Output buffer of the preceding stage

will become the input buffer for the successive stage.

CYCLIC INVENTORY

It is customary for organisation to order inventory in repeated cycle and consume them over

time. For example aircel may order 60 BTS . If the average consumption per day is 2 BTS.

Then it takes 30 days to deplete the order . On the next 30 fst day the next order has to arrive

and it will be consume over the next 30 day

If Q is the order quantity per cycle

The average cycle inventory will be = (Q+0)/2 = Q/2

PIPELINE INVENTORY

Pipeline inventory pertains to the level of the inventory that organisation carry in the long

run due to non zero lead time for order, transport and recipt of the order from the supplier

because of the geographical distance between the buyer and the supplier and the host of


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business process involved in ordering and receiving material . There is a time delay between

order placement and order recipt . The inventory carried to take care of these delays is called

pipeline inventory

Average consumption of the BTS is 2 per day . It takes three days to reach the order and the

hospital will place the order by the end of 27 day so that the order reaches by the end of end

of 30th day

L = Lead time for the supply

X= Mean demand per unit time

Pipeline inventory is L*X

SAFETY STOCK

Organization also have additional investment in the inventory to buffer against uncertainties

in demand and supply of raw material and component. We know from the elementary theory

of probability distribution that when demand is stochastic, carrying average inventory will

ensure that the demand is measured only 50% of the time ( in the long run) . However in

order to improve the availability to meet the uncertain demand , an additional quantity known

as safety stock lead to a lower probability of inventory going out of stock . Similarly the

higher the uncertainty the greater the safety stock. Safety stock only serves to prevent the

shortages in the short run.

INVENTORY COSTS

There are several cost associated with the inventory planning and control. The cost is

classified under in three broad categories.

The cost of carrying inventory. All cost related to maintaining inventory in organisation

will be classified under this.

The cost associated with ordering material and replenishing it in cyclic inventory.

The cost arising out of shortage.

Inventory control models should take these into consideration and aim at minimizing sum of

all the cost. Some time unit cost of item in which the inventory planning is done is also a

relevant cost for decision making.


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INVENTORY - CARRYING COST

Organisation need to spend a considerable amount of money to carrying out the inventory.

The most important cost is the interest for the short term borrowing for the working capital

required for inventory investment. The second significant cost relates cost of stores and

warehouse and the administrative cost related to maintaining the inventory and accounting for

it. The element of storing and warehousing cost include the following

Investment in the store space and storage and retrieval system.

Software for maintaining the inventory status.

Managerial and other administrative manpower to discharge various activity related to

stores.

Insurance cost.

Cost of obsolescence, pilferage damages and waste.

Order quantity = Q

Unit cost of quantity = Cu

Cost associated with carrying inventory =(Q/2*Cu)

COST OF ORDERING

Replenishment of the cyclic inventory is met by ordering material with the supplier .

Organisation perform series of task related to ordering material . this include the search and

identification of appropriate sources of supply , price negotiation , contracting and purchase

order generation follow up and receipt of the material and eventual stocking in the stores after

necessary accounting and the verification . All these task include man power , resources and

time that can be classified under the cost of ordering .

Total demand = D

Quantity in the single order = Q

Cost of single order = Co

Total ordering cost = D/Q*Co

COST OF SHORTAGE


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Despite careful planning , organisation are likely to run out of the stock for several reason .

There could be the sudden surge in demand . Alternatively the supplier might not have

delivered the material as per the schedule or a lot could have been rejected because of the

defective component . Such event could disrupt the supply chain and have the cascading

effect dawn the supply chain . delivery schedule are missed , leading to the customer

dissatisfaction loss of the good will. It also cost the additional cost arise out of pushing the

order back and rescheduling the system to accommodate these changes .

Total cost of inventory = total cost of ordering + total cost of carrying

inventory

Total cost of inventory = (Q/2*CC) + (D/Q*CO)

In order to minimise the cost we obtain the most economic order quantity

Economic order quantity (EOQ) = (2COD/CC)1/2

SELCTIVE CONTROL OF INVENTORY

Managing inventory invariably amounts to handling of large number and the verity of items .

For instance an telephone operator such as aircell there are about 10 to 15 items in the store.

A vast majority of item will be consumed (albeit in varying rates) and will require the

mechanism for monitoring the inventory on hand , establishing the reorder point , order

quantity and type of inventory control system that needs to be adopted . Establishing the same

lavel of monitoring and control to all the items may not be practically be feasible . There fore

the organizations device several way of categorizing the item and adopt that mechanism that

have variable lavel of control on different items

ABC CLASSIFICATION

ABC classification is based on the cost of the items consumed . Very high value item are A

class item , Medium value item are categorized as B class and low value item as C

class .

XYZ CLASSIFICATION

The classification is based on the unit cost where as ABC consumption takes into conuption

pattern into account . (a) high unit cost (X class of items ) ; (b)medium unit cost(Y class item)

; (c) low unit cost (Z class items) . A very high value item often turn out to be specially made

to order , complex and call for lengthy supply identification procedures


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FSN CLASSIFICATION

This classification is based on the basis of the movement of inventory. (a) fast moving , (b)

slow moving , (c) non moving . This method of classification of item is ex-post , as apposed

to the ABC classification . Which is future oriented . Item that have not been moving for

some time incur carrying cost and may call for managerial decision for disposal on the other

hand fast moving item can be controlled useing inventory control system .

VED CLASSIFICATION

This classification is relevant in case of the maintenance items. (a) vital (b) essential (c)

desirable . In several cases a vital item for maintenance may not be very expensive . for

instance vide variety of oil seals are used in the hydraulic system if oil seals not available the

entire machine will become in operative .

DEVSION OF WARE HOUSE IN AIRCEL

Main storage area

SRN (site return) storage area

SRN (site return) damage storage area

SRN(site return) ok storage area

MAIN STORAGE AREA

In this area items which are received from supplier are kept . They are stacked in the warehouse . As per the demand they are supplied to the various sites where new tower are being

installed or some repareing work is going on.

SRN STORAGE AREA

In this the items which are returned from the site are kept. The items are return from the site

are return because of there mal functioning . They are brought back from the site and are kept

there.


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SRN DAMAGE STORAGE AREA

The items which are return from the site are repaired by the engineers . They are tested again

if they are tested ok then they are transferred to the srn ok storage area . If not performing ok

they are kept in the srn damage area.

SRN OK STORAGE AREA

Items which return from site after testing start performing well are then transferred to the srn

ok area and these are used as per the dmand.

ITEMS IN AIRCEL INVENTORY

BTS indoor S444 (2G)

BTS outdoor S444 (2G)

RBS 7/8 feed cable for BTS (2G)

Antenna 15ghz/.3m

Antenna 15ghz/1.2 m

Antenna 7ghz/1.8 m

Antenna 18ghz/.3m

Antenna 18ghz/1.2m

Antenna GSM dual pole 18DBI(3G/2G)

Antenna GSM dual pole 19.5DBI(3G)

2B4P antenna 1.8 12.1ghz 21DBI 650 vertical(2G)(3G)

DB 1.8/2.1ghz,xpole,21 D, 63

0

, 4 part 0-10 (3G)


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STM 1 card(3G)

7/8 feedar cable

15ghz single pole .6 m antenna

18ghz single pole .6 m antenna

18ghz single pole 1.2 m antenna


1D 2U main chasis

For the selective control of the inventory i have made the observation for the period of 30

working days for the no of items consumed during this period on the basis of this observation

i have classified inventory into three categories fast moving goods , slow moving goods and

non moving goods in order . we will provide the maximum portion of inventory by volume to

the fast moving goods and least to the non-moving goods . Which in turn will reduce the

carrying cost of the inventory .

0 to 3 items in the month will be not moving items .

4 to 6 items in the month will be slow moving items.

7to 10 items in the months will be fast moving items.

On the basis of above parameters the items are calssified below

LIST OF FAST MOVEING ITEMS

Antenna GSM dual pole 18 DBI (3G/2G)

Antenna GSM dual pole 19.5 DBI (3G)

STM 1 card (3G)

7/8 feedar cable

1D 2U main chasis

LIST OF SLOW MOVEING ITEMS


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Antenna 15 ghz/.3m

Antenna 15 ghz/1.2m

Antenna 7ghz/1.8m

Antenna 18ghz/.3m

Antenna 18ghz/1.2m

15ghz single pole .6 antenna

18ghz single pole .6 antenna


7ghz single pole 1.8m antenna

LIST OF NOT MOVEING ITEMS

BTS indoor S444(2G)

BTS outdoor S444(2G)

RBS 7/8 feed cable for BTS (2G)

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