ABSTRACT
“ROOTS INDUSTRIES INDIA LIMITED” is one of the leading manufacturer of Horns in the
world. The project presented over here is titled “INVENTORY MANAGEMENT AT ROOTS
INDUSTRIES INDIA LIMITED, Coimbatore”. The research work is undertaken to find the level
of Inventory used by the company. The main objective of the project is to assess the level of
Inventory, inflow, outflow, in the manufacture of the Horns.
The study revealed that the Inventory management in the “ROOTS INDUSTRIES INDIA
LIMITED.” is satisfactory. Suitable suggestions are recommended to improve the inventory
management and cost control.
TABLE OF CONTENTS
CHAPTER NO
I
II
III
IV
CONTENT
INTRODUCTION
1.1 Introduction
1.2 Industry Profile
1.3 Company Profile
MAIN THEME OF PROJECT
2.1 Objective the study
2.2 Scope and Limitation of the study
2.3 Methodology
2.4 Review of Literature
ANALYSIS AND INTERPRETATION
PAGE NO
1
1
10
13
23
23
24
25
30
33
3.1 Economic Order Quantity Analysis
33
3.2 ABC Analysis
43
3.3 XYZ Analysis
53
3.4 FSN Analysis
63
3.5 Inventory Turnover Ratio
78
FINDINGS, SUGGESTIONS AND CONCLUSION
80
4.1 Findings
80
4.2 Recommendations
81
4.3 Conclusion
82
BIBLIOGRAPHY
83
LIST OF TABLES
TABLE NO
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.5.1
PARTICULARS
EOQ ANALYSIS FOR THE YEAR 2009 – 10
EOQ ANALYSIS FOR THE YEAR 2010 – 11
EOQ ANALYSIS FOR THE YEAR 2011 – 12
EOQ ANALYSIS FOR THE YEAR 2012 – 13
EOQ ANALYSIS FOR THE YEAR 2013 – 14
ABC ANALYSIS FOR THE YEAR 2009 - 10
ABC ANALYSIS FOR THE YEAR 2010 – 11
ABC ANALYSIS FOR THE YEAR 2011 – 12
ABC ANALYSIS FOR THE YEAR 2012 – 13
ABC ANALYSIS FOR THE YEAR 2013 - 14
XYZ ANALYSIS FOR THE YEAR 2009 – 10
XYZ ANALYSIS FOR THE YEAR 2010 - 11
XYZ ANALYSIS FOR THE YEAR 2011 – 12
XYZ ANALYSIS FOR THE YEAR 2012 – 13
XYZ ANALYSIS FOR THE YEAR 2013 – 14
FSN ANALYSIS FOR THE YEAR 2009 – 10
FSN ANALYSIS FOR THE YEAR 2010 – 11
FSN ANALYSIS FOR THE YEAR 2011 – 12
FSN ANALYSIS FOR THE YEAR 2012 – 13
FSN ANALYSIS FOR THE YEAR 2013 – 14
INVENTORY TURNOVER RATIO
PAGE NO
33
35
37
39
41
43
45
47
49
51
53
55
57
59
61
63
66
69
72
75
78
LIST OF CHARTS
CHART NO
3.1.1
3.1.2
3.1.3
3.1.4
PARTICULARS
EOQ ANALYSIS FOR THE YEAR 2009 – 10
EOQ ANALYSIS FOR THE YEAR 2010 – 11
EOQ ANALYSIS FOR THE YEAR 2011 – 12
EOQ ANALYSIS FOR THE YEAR 2012 – 13
PAGE NO
34
36
38
40
3.1.5
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.5.1
EOQ ANALYSIS FOR THE YEAR 2013 – 14
ABC ANALYSIS FOR THE YEAR 2009 - 10
ABC ANALYSIS FOR THE YEAR 2010 – 11
ABC ANALYSIS FOR THE YEAR 2011 – 12
ABC ANALYSIS FOR THE YEAR 2012 – 13
ABC ANALYSIS FOR THE YEAR 2013 - 14
XYZ ANALYSIS FOR THE YEAR 2009 - 10
XYZ ANALYSIS FOR THE YEAR 2010 - 11
XYZ ANALYSIS FOR THE YEAR 2011 – 12
XYZ ANALYSIS FOR THE YEAR 2012 – 13
XYZ ANALYSIS FOR THE YEAR 2013 – 14
FSN ANALYSIS FOR THE YEAR 2009 – 10
FSN ANALYSIS FOR THE YEAR 2010 – 11
FSN ANALYSIS FOR THE YEAR 2011 – 12
FSN ANALYSIS FOR THE YEAR 2012 – 13
FSN ANALYSIS FOR THE YEAR 2013 – 14
INVENTORY TURNOVER RATIO
42
44
46
48
50
52
54
56
58
60
62
65
68
71
74
77
79
CHAPTER -I
1. INTRODUCTION
1
INTRODUCTION TO THE STUDY
Everything has a price; nothing in this world is for free. These statements talks about the goods
and services available to consumers and customers alike throughout the globe. The
manufacturing industry is no way an exception to this statement, rather fact.
ORGINS OF THE WORD INVENTORY
The word inventory was first recorded in 1601. The French term inventoried, or “detailed list of
goods,” dates back to 1415.
BUSINESS INVENTORY
The inventory management system that control of process provides information to efficiently
manage the flow of materials, effectively utilize people and equipment, coordinate internal
activities, and communicate with customers Inventory management and the activities of
inventory control do not make decisions or manager operations; they provide the information to
managers who make more accurate and timely decisions to manage their operations. The
emphasis on each area will vary depending on the company and how it operates, and what
requirements are placed on it due to market demands. Each of the areas above will need to be
addressed in some form or another to have a successful program of inventory management and
control.
Inventories consistent the most significant part of current assets of the large majority of company
in India. On average, approximately 60 percentages of current assets are inventories in all
companies in India. Because of the large size of inventories maintained by firm, a considerable
amount of funds is required to be committed them. A firm neglecting the management of
inventories will be jeopardizing its long-run profitability and may fail ultimately. It is possible a
company to reduce its level of inventories to a considerable degree, e.g., 10 to 20 percent without
any adverse effect on production and sales by using simple inventory planning and control
techniques. The reduction in excessive inventories carries a favorable impact on a company’s
profitability.
Inventory is a list for goods and materials, or those goods and materials themselves, held
available in stock by a business. Supply delay is longer than delivery delay, and also to ease the
effect of imperfections in the manufacturing process that lower production efficiencies if
production capacity stands idle for lack of materials. effective and efficient management of
inventories helps in minimizing holding inventories, risk and losses due to stock out and keeping
the investment in inventories at a reasonable level.
MEANING OF INVENTORY
Inventory is the physical stoke of goods maintained in an organization for its smooth running. In
accounting language it may mean stock of finished goods only. In a manufacturing concern, it
may include raw materials, work-in-progress and stores etc. In the form of materials or supplies
to be consumed in the production process or in the rendering of services. In brief, Inventory is
unconsumed or unsold goods purchased or manufactured
Nature of inventories
Inventories are stock of the product of a company in manufacturing for a sale and component
that make up the product. The various forms of inventories.
?
Raw materials
?
Work-in progress
?
Finished goods
?
Spare parts.
Raw materials are those basic inputs that are converted into finished products through the
manufacturing process. Inventories are raw materials are those units, which have been purchased
and stored for future productions
Work-in progress inventories are semi-manufactured products. They represent products that
need more work before they become finished products for sale.
Finished goods inventories are those completely manufactured products, which are ready for
sale. Stocks of raw materials and work in progress facilitate production, while stock of finished
goods required for smooth marketing operation.
Spare parts include office and plant cleaning materials like soap, brooms, oil, fuel, light bulbs.
These materials do not directly involved production, but are necessary for production process.
The reasons for keeping stock
There are three basic reasons for keeping an inventory:
Time - the time lags present in the supply chain, from supplier to user at every stage, requires
that you maintain certain amount of inventory to use in this “lead time”.
Uncertainty –inventories are maintained as buffers to meet uncertainties in demand, supply and
movements of goods.
Economies of scale-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 bulk buying, movement
and storing brings in economies of scale, thus inventory.
OBJECTIVES INVENTORY MANAGEMENT
The purpose of inventory is to reduce materials holding cost that is inventory carrying cost and
the ordering costs. This helps the company’s to save their cost of capital and utilize their
resources for a better investment opportunity.
?
To maintain a large size of inventories of raw materials and work in progress for efficient and
smooth production and of finished goods for uninterrupted sales operation.
?
To maintain a minimum investment in inventories to maximize profitability.
?
To avoid the both over stocking and under stocking of inventory.
?
To keeping material cost under control so they contribute in reducing cost of production and
overall costs.
?
To ensure a right quantity goods at reasonable time
Operating Objectives
?
Ensuring Availability of Materials: There should be a continuous availability of all types of
raw materials in the factory so that the production may not be help up wants of any material.
A minimum quantity of each material should be held in store to permit production to move
on schedule.
?
Avoidance of Abnormal Wastage: There should be minimum possible wastage of materials
while these are being stored in the godowns or used in the factory by the workers. Wastage
should be allowed up to a certain level known as normal wastage. To avoid any abnormal
wastage, strict control over the inventory should be exercised. Leakage, theft, embezzlements
of raw material and spoilage of material due to rust, bust should be avoided.
?
Promotion of Manufacturing Efficiency: If the right type of raw material is available to the
manufacturing departments at the right time, their manufacturing efficiency is also increased.
?
Avoidance of Out of Stock Danger: Information about availability of materials should be
made continuously available to the management so that they can do planning for
procurement of raw material. It maintains the inventories at the optimum level keeping in
view the operational requirements. It also avoids the out of stock danger.
?
Better Service to Customers: Sufficient stock of finished goods must be maintained to
match reasonable demand of the customers for prompt execution of their orders.
?
Highlighting slow moving and obsolete items of materials.
?
Designing poorer organization for inventory management: Clear cut accountability
should be fixed at various levels of organization.
Financial Objectives
?
Economy in purchasing: A proper inventory control brings certain advantages and
economies in purchasing also. Every attempt has to make to effect economy in purchasing
through quantity and taking advantage to favorable markets.
?
Reasonable Price: While purchasing materials, it is to be seen that right quality of material
is purchased at reasonably low price. Quality is not to be sacrificed at the cost of lower price.
The material purchased should be of the quality alone which is needed.
?
Optimum Investing and Efficient Use of capital: The basic aim of inventory control from
the financial point of view is the optimum level of investment in inventories. There should be
no excessive investment in stock, etc. Investment in inventories must not tie up funds that
could be used in other activities. The determination of maximum and minimum level of stock
attempt in this direction.
BENEFITS OF INVENTORY CONTROL
?
Keeps down investment
?
Eliminates duplication
?
Better utilization of available stock
?
Minimizes stock out situations
?
Re-sale of obsolete inventory.
?
Adequate supply of materials
Cost associated with inventories
The effective management of inventory involves a trade-off between having too little and too
much inventory. In achieving this trade off , the finance manager should realize that costs may be
closely related.
?
Ordering costs
?
Carrying inventory costs
Ordering costs
The term ordering costs is used in case of raw materials and includes the entire costs of acquiring
raw material. Any manufacturing organization has to purchase materials. Ordering costs refer to
the cost associated with the preparation of requisition forms by the user department, set up costs
to be incurred by the manufacturing department and transport, inspection at the user department.
By and large, ordering costs remain more or less constant irrespective of the size of the order
although transportation and inspection cost may vary to a certain extent depending upon order
size. But this is not going to significantly affect the behavior of ordering costs. As ordering costs
are considered invariant to the order size, the total ordering costs can be reduced by increasing
the size of the orders
Carrying inventory costs
These are the expenses of storing goods. Once the goods have been accepted, they become part
of the firm’s inventories. These costs include insurance, rent/depreciation of warehouse, and
salaries of storekeeper, his assistants and security personnel, financing cost of money locked up
in inventories, obsolescence’s, spoilage and taxes.
By and large, carrying costs are considered to be given percentage of the value of inventory held
in warehouse, despite some of the fixed elements of costs that comprise only a small portion of
total carrying costs. Approximately, carrying costs are considered to be around 25 percentage of
the value of the inventory held in storage. The greater the investment in inventory, the greater the
carrying costs.
?
Ordering costs
Requisitioning
?
Carrying costs
Warehousing
?
Order placing
?
Handling
?
Transportation
?
Clerical and staff
?
Receiving, inspecting
?
Insurance
?
Clerical and staff
IMPORTANCE OF INVENTORY MANAGEMENT
1. COUNTING CURRENT STOCK
All businesses must know what they have on hand and evaluate stock levels with respect to
current and forecasted demands. You must know what you have in stock to ensure you can meet
the demands of customers and production and to be sure you are ordering enough stock in the
future. Counting is also important because it is the only way you will know if there is a problem
with theft occurring at some point in the supply chain. When you become aware of such
problems you can take steps to eliminate them.
2. CONTROLLING SUPPLY AND DEMAND
Whenever possible, obtain a commitment from a customer for a purchase. In this way, you
ensure that the items you order will not take space in your inventory for long. When this is not
possible, you may be able to share responsibility for the cost of carrying goods with the
salesperson, to ensure that an order placed actually results in a sale. You can also keep a list of
goods that can easily be sold to another party, should a customer cancel. Such goods can be
ordered without prior approval.
Approval procedures should be arranged around several factors. You should set minimum and
maximum quantities which your buyers can order without prior approval. This ensures that you
are maximizing any volume discounts available through your vendors and preventing over
ordering of stock. It is also important to require pre-approval on goods with a high carrying cost.
3. KEEPING ACCURATE RECORDS
Any time items arrive at or leave a warehouse, accurate paperwork should be kept, itemizing the
goods. When inventory arrives, this is when you will find breakage or loss on the goods you
ordered. Inventory leaving your warehouse must be counted to prevent loss between the
warehouse and the point of sale. Even samples should be recorded, making the salesperson
responsible for the goods until they are returned to the storage facility. Records should be
processed quickly, at least in the same day that the withdrawal of stock occurred.
4. MANAGING EMPLOYEES
Buyers are the employees who make stock purchases for your company. Reward systems should
be set in place that encourage high levels of customer service and return on investment for the
product lines the buyer manages. Warehouse employees should be educated on the costs of
improper inventory management. Be sure they understand that the lower your profit margin, the
more sales must be generated to make up for the lost goods. Incentive programs can help
employees keep this in perspective. When they see a difference in their paychecks from poor
inventory management, they are more likely to take precautions to prevent shrinkage.Each stock
item in your warehouse or back room should have its own procedures for replenishing the
supply. Find the best suppliers and storage location for each and record this information in
official procedures that can easily be accessed by your employees. Inventory management should
be a part of your overall strategic business plan. As the business climate evolves towards a green
economy, businesses are looking for ways to leverage this trend as part of the “big picture”. This
can mean re-evaluating your supply chain and choosing products that are environmentally sound.
It can also mean putting in place recycling procedures for packaging or other materials. In this
way, inventory management is more than a means to control costs; it becomes a way to promote
your business.
SUCCESSFUL INVENTORY MANAGEMENT
Successful inventory management involves balancing the costs of inventory with the benefits of
inventory. Many small business owners fail to appreciate fully the true costs of carrying
inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of
money tied up in inventory. This fine line between keeping too much inventory and not enough is
not the manager's only concern. Others include:
?
Maintaining a wide assortment of stock -- but not spreading the rapidly moving ones too thin
?
Increasing inventory turnover -- but not sacrificing the service level
?
Keeping stock low -- but not sacrificing service or performance.
?
Obtaining lower prices by making volume purchases -- but not ending up with slow moving
inventory
?
Having an adequate inventory on hand -- but not getting caught with obsolete items.
?
The degree of success in addressing these concerns is easier to gauge for some than for
others. For example, computing
ABOUT INVENTORY CONTROL
Inventory consists of the goods and materials that a retail business holds for sale or a
manufacturer keeps in raw materials for production. Inventory control is a means for maintaining
the right level of supply and reducing loss to goods or materials before they become a finished
product or are sold to the consumer. Inventory control is one of the greatest factors in a
company’s success or failure. This part of the supply chain has a great impact on the company’s
ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished
products. Proper inventory control will balance the customer’s need to secure products quickly
with the business need to control warehousing costs. To manage inventory effectively, a business
must have a firm understanding of demand, and cost of inventory.
ADVANTAGES OF INVENTORY CONTROL
(1) Reduction in investment in inventory.
(2) Proper and efficient use of raw materials.
(3)No bottleneck in production.
(4) Improvement in production and sales.
(5) Efficient and optimum use of physical as well as financial resources.
(6)Ordering cost can be reduced if a firm places a few large orders in place of numerous small
orders.
(7)Maintenance of adequate inventories reduces the set-up cost associated with each production
run.
1.2 INDUSTRY PROFILE
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in
very small numbers.
Embryonic automotive industry emerged in India in the 1940s.Mahindra&Mahindra was
established by two brothers as a trading company in 1945, and began assembly of Jeep CJ -3A
utility vehicles under license from Willys. The company soon branched out into the manufacture
of Light Commercial Vehciles (LCVs) and agricultural tractors.
Following the Independence, in 1947, the Government of India and the privaesector launched
efforts to create an automotive component manufacturing industry to supply to the automobile
industry. However, the growth was relatively slow in the 1950s and 1960s due
to nationalisation and the license raj which hampered the Indian private sector. After 1970, the
automotive industry started to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian
market ultimately leading to the establishment of Maruti. A number of foreign firms initiated
joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motor
cycles and light commercial-vehicles. It was at this time that the Indian government chose
Suzukifor its joint-venture to manufacture small cars. Following the economic liberalisation in
1991 and the gradual weakening of the license raj, a number of Indian and multi-national car
companies launched operations. Since then, automotive component and automobile
manufacturing growth has accelerated to meet domestic and export demands.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's robust economic
growth led to the further expansion of its domestic automobile market which has attracted
significant India-specific investment by multinational automobile manufacturers. In February
2009, a monthly sale of passenger cars in India exceeded 100,000 units and has since grown
rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales
in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning
a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is
unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand,
will likely be the limiting factor.
SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and
international, in India.
The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has been
high. System-suppliers of integrated components and sub-systems have become the order of the
day. However, further investment in new technologies will help the industry be more
competitive. Over the past few years, the industry has been volatile. Currently, India's increasing
per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is
playing a major role in the rise and competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market share of about 64%.
Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai
Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas
market. Hero Honda Motors is occupying over 41% and sharing 26% of the two wheeler market
in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler
market.
Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In
2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars.
Steel is the major input used by manufacturers and the rise in price of steel is putting a cost
pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil
and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility, and capital
efficiency. Having quality manpower, infrastructure improvements, and raw material availability
also play a major role. Access to latest and most efficient technology and techniques will bring
competitive advantage to the major players. Utilising manufacturing plants to optimum level and
understanding implications from the government policies are the essentials in the Automotive
Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry.
The Indian government should facilitate infrastructure creation, create favourable and predictable
business environment, attract investment and promote research and development. The role of
Industry will primarily be in designing and manufacturing products of world-class quality
establishing cost competitiveness and improving productivity in labour and in capital. With a
combined effort, the Indian Automotive industry will emerge as the destination of choice in the
world for design and manufacturing of automobiles.
Automotive spare parts and components is a lesser known industry yet a big one. In past few
years the industry has grown enormously, even more than the automotive industry itself not only
in the Indian but global scenario. This vast industry includes automotive components,
accessories, gadgets, spare parts and tools; the consumers being the OEM segment and the
replacement and aftermarket sector. Automotive spare parts replacement and aftermarket have in
themselves become a major industry. In mid 1990’s the quality of Indian products increased a lot
and the prices were considerably lowered. This posed an interesting situation where the Indian
replacement and aftermarket industry had geared up to meet the international standards and
awaited an ideal opportunity for global exposure.
Certain SME’s through their focused operations are now serving the global automotive giants
directly or through suppliers. Online catalogs and websites have added to the online presence of
our clients.
The results are quite apparent, Indian automotive parts industry makes original components of
major automotive giants like General Motors and Mercedes amongst others. They have, through
consolidated efforts been positioned as global players of the sector.
1.3 COMPANY PROFILE
In a dynamic world that is driven by technology, a successful presence depends on the way you
mould that technology to fit popular needs. Indigenous talent, a daring attitude, courage to accept
and learn new things and the simple spark of an idea. That is the genesis of ROOTS.
ROOTS Industries India Ltd. is a leading manufacturer of horns in India and the 11th largest
Horn Manufacturing Company in the world.
Headquartered in Coimbatore - India, ROOTS has been a dominant player in the manufacture of
Horns
and
other
products
like Castings and Industrial
Cleaning Machines. Since
its
establishment in 1970, ROOTS has had a vision and commitment to produce and deliver quality
products adhering to International Standards.
With a strong innovative base and commitment to Quality, Roots Industries India Ltd has
occupied a key position in both international and domestic market as suppliers to leading OEMs
and after market. Similar to products, Roots has leading edge over competitors on strong quality
system base. Now, RIL is the first Indian Company and first horn manufacturing company in the
world to get ISO/TS 16949 certification based on effective implementation of QS 9000 and VDA
6.1 system requirement earlier. Roots' vision is to become a world class company manufacturing
world class product, excelling in human relation.
Roots' single minded pursuit of enhancing the quality of life has led to many other
diversifications. Roots, today, is a multifaceted corporate entity with interests in automobile
accessories, cleaning equipment, castings, precision tools and hi-tech engineering services.
Mission
The mission of Roots has always been to locate and to mould exceptional leaders and
private with all the sincere effort that solid basics to extend organization solutions to
customers worldwide and there by enhance the Roots competitive advantage. The company
does so thought long team and deeply committed human relations based on the key values
like
Activity
focus,
Discipline,
Experience,
Innovation,
Integrity,
Introspection,
Professionalism, Quality Culture and Team Work.
VISION
We will stand technologically ahead of others to deliver world-class innovative products
useful to our customers. We will rather lose our business than our customers' satisfaction. It is
our
aim
that
the
customer
should
get
the
best
value
for
his
money.
Every member of our company will have decent living standards. We care deeply for our
families, for our environment and our society. We promise to pay back in full measure to the
society by way of selfless and unstinted service.
Roots is a leading Original Equipment supplier to major vehicle manufacturers like Mercedez
Benz, Mitsubishi, Mahindra & Mahindra, Toyota, Fiat, TELCO, Harley Davidson, Navistar etc.
The ever demanding requirements of Customer Satisfaction has strengthened the R & D
activities and increased Roots technical competence to international standards.
Roots Multiclean Ltd. (RMCL) is a joint venture with HakoWerke GmbH & Co., Germany, one
of the largest cleaning machine manufacturers with global operations. RMCL is the sole
representative in India and SAARC countries for HakoWerke's entire range of cleaning
equipment. The quality of RMCL products is so well established that Hako buys back a major
portion for their global market.
RMCL also represents several global manufacturers of cleaning products and is gearing itself up
to provide customized, total cleaning solutions.
About the Founder
An obsessive hobby went into the making of this self-made industrialist. Born in an agricultural
family, young Mr.K.Ramasamy had a great interest in repairing automobiles. This led to his
getting the master's degree in Automobile Engineering from Lincoln Technical Institute, USA in
1969 and developing a unique Radiator Coolant Recovery System, which is today a standard
equipment in almost all vehicles manufactured by the advanced countries.
In 1970, Mr.K.Ramasamy promoted M/s. American Auto Service, which was taken over in 1992
by Roots Industries Private Limited, a company promoted by Mr.K.Ramasamy. This company
entered into technical collaboration with Robert Bosch, the world leaders in auto electrical to
manufacture all the range of Bosch Horns. Mr.K.Ramasamy had a very inquisitive and
innovative temperament. This led to his having many first in his distinguished career.
Servo brakes were designed for the first time in India by Mr.K.Ramasamy. He designed the first
high frequency Wind Tone type horn which was smaller and lighter than conventional horns.
Besides all the other firsts, Mr.K.Ramasamy introduced electronically controlled Musical Air
Horns for the first time in the World. The thirst for innovation and drive to move forward, led to
the establishment of a die casting unit to meet the captive requirement of ROOTS. In 1987,
Mr.K.Ramasamy set up a full-fledged modern tool room equipped with the latest machines for
the manufacture of precision tools and dies. He promoted Roots Multiclean Ltd., a joint venture
in Techno-financialcollaboration with M/s. HakoWerke GmbH, Germany to manufacture world
class Industrial Floor Care and Floor Cleaning Equipments. RMCL is successfully spreading the
concept of Mechanized Cleaning in India and also exports its products to various countries
like Australia, Britain, Germany, Japan Singapore, etc.
Mr.K.Ramasamy can very proudly claim that he is a self-made industrialist and in recognition of
the same, he has been conferred the Udyog Shree Award in the year 1990. He has also been
awarded the Udyog Rattan Award by the Institute of Economic Studies in the year 1991.
Mr.K.Ramasamy has been awarded UdyogPatra Award by the Institute of Trade and Industrial
Development Delhi in the year 1992 in recognition of being a self made industrialist and
also his contribution to the
economic
development
of
the
country
along with
BharatiyaUdyogJothi Award instituted by the Indian Institute of Entrepreneurship Development,
Delhi.
Mr.K.Ramasamy has been conferred the Vikas Rattan Award and the Gem of India award. He
has been awarded UdyogGaurav Award by All India Organization of Entrepreneurship
Confederation.
Roots Industries has been awarded the American International Quality Award in 1994 by
FulhamGeissler Associates, USA. Mr.K.Ramasamy was Chairman of the Confederation of
Indian Industry Coimbatore. Besides this, he lends his leadership to a lot of other social
organizations and his dynamic presence is a driving force behind all the group companies of
Roots.
THE ROOTS GROUP
NAME OF ROOTS GROUPS
Roots Industries India Ltd
Roots Auto Products Pvt ltd
Roots Multiclean Ltd
Roots Cast Pvt Ltd
Roots Precision Products Pvt Ltd
Roots Metrology Laboratory
Roots Polycraft
R K Nature Home
SatchidanandaJothiNikethan
Integral Yoga Institute
Roots Industries Malaysia sdn.Bdn
ROOTS INDUSTRIES INDIA LTD
PRODUCTS
Electric Horns
Air Horns,Switches&Conrollers
Cleaning Machines
Aluminium& Zinc Presssure Die Cast
Dies,Tools,Jigs& Fixtures
Instrument Calibration,
Quality System,Consultancy
Plastic Components
Nature Cure Therapy,Yoga& Massages
International School
Yoga and Meditation
Electric Horns
It all started with just a honk. Encouraged by the response, we kept on moving ahead. In the
beginning, we did not realize that we would make such an impact. Slowly but surely, the
reverberations were felt far and wide. Indian automobile market responded to our call. Soon the
global market too followed suit. Roots horns, in a very short span of time, got a place of pride in
millions of vehicles across the globe.
PRODUCTS
?
Wind tone
?
Vibrosonic
?
Clear tone
?
Roots 90
?
Megasonic
?
Smartone spider
?
R 70
?
Sensors
Roots Industries specializes in the manufacture of a wide range and line-up of automobile horns.
Roots is a leading supplier to all the major vehicle manufacturers like Ford, Daimler Chrysler,
Mitsubishi Lancer, Mahindra & Mahindra, Toyota, Tata Motors, Fiat Uno and Siena, TELCO,
TVS Motor Company, Kinetic Honda, etc.
Roots Industries India Ltd places a premium on original technology and innovation. Roots'
indigenous talent has kicked off a spree of growth unmatched in the history of automobile OE
manufacturers
What more could we ask for? But we did ask more. We indeed made a sound beginning but we
could not rest on our laurels. The journey has to go on. There are more miles to go. And more
challenging territories to explore.
ROOTS AUTO PRODUCTS PVT LTD
Commercial transportation plays a crucial role in the economic development of nations. Roots
Air Horns ensures safe and smooth passage of thousands of heavy vehicles on the move.
Roots Auto Products Private Limited (RAPPL), the largest supplier of Air Horns in India caters
to the needs of several OEMs: Ashok Leyland, Caterpillar India and JCB Escorts. Roots Air
Horns also find a place of pride in Passenger vehicles, Trucks, Earth Moving equipment,
Material Handling equipment, etc. Roots Air Horns are exported to countries in North America,
Europe, Middle East, Africa and SAARC region.
ROOTS MULTICLEAN LTD
The genesis of Roots Multiclean Ltd., (RMCL) is due to the vision of the promoter of Roots
group of company about the requirement of sophisticated cleaning equipment in the country
following globalization of business and entry of Multi Nationals who have very high standard of
house keeping. RMCL, situated in the suburbs of Coimbatore, is a Joint Venture with
HakoWerkeGmbh& Co., Germany. It commenced manufacture of cleaning equipment in early
90s at its modern factory located amidst natural greenery. RMCL is the sole representative of
HakoWerkeGmbh& Company's entire range of cleaning equipment for India and SAARC
countries. To improvise and facilitate a better service to its customers, RMCL has established
Regional offices in all Metros and a huge dealer network in bigger Cities and States.The superior
quality products and the added advantage of good after sales service has established the company
as the country's largest manufacturer of floor cleaning equipment.
ROOTS CAST PVT. LTD
Roots Cast Pvt. Ltd., (RCPL) (formerly known as Aruna Auto Castings Private Limited) was
established in 1984 to meet the captive requirements of the Roots group. With its ever probing
eye on the needs of the market, the company in the late 80s expanded its operations to
manufacture High Pressure Die Cast Aluminium and Zinc components to the exacting needs of
various customers in Automobile and Textile Industries with a high degree of Quality and
Perfection. RCPL, now has established itself as a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool design, tool making and
pressure die cast component manufacturing.RCPL supplies machined castings and subassemblies as per customer requisitions
PRODUCTS
?
RSV Governor hsg
?
Heat-sink
?
Pump body and cover
?
Ring holder
?
Fixing bracket
?
Steam & Dry iron sole plates
?
Clam shell
?
Pivot housing
?
Field Mould
?
GF Nylon 66
ROOTS PRECISION PRODUCTS PVT LTD
Roots Precision Products was established in 1987 to address the in-house tooling needs of the
diverse industries in Roots group. Owing to continuous improvement and investment into better
resources, the company has become self-sufficient. It is catering to the needs of various
industries. RPP acts as a one-stop solution for tooling and precision machining.
PRODUCTS
?
Die casting Dies
?
Engineering plastic Moulds
?
Press tools
?
Jigs & Fixtures
ROOTS METROLOGY LABORATORY
Roots' state-of-the-art Metrology Laboratory is a comprehensive calibration centre in South India
that offers mechanical, electrical, torque, pressure and vacuum calibration instruments all under
one roof.
The laboratory is equipped with advanced facilities traceable to national / international
standards. RMTL is accredited by National accreditation Board for Testing and Calibration
laboratory as per ISO/IEC 17025 : 2005 standards in the field of Mechanical – Dimensions,
Pressure/Vacuum, & Force. The laboratory offers on-site calibration facility and serves the
industry to calibrate surface table, coordinate measuring machine, profile projector, Toolmakers
Microscope, Pressure switches, Pressure gauges, Temperature indicators, RTDs, Temperature
sensors/scanners, Electronic transmitters, Pressure reducing valves, Ovens, etc.The expertise of
the laboratory has attracted many renowned Public and Private Sector undertakings.
ROOTS POLYCRAFT
Roots Polycraft (PC) was established in 1988 to manufacture precision plastic components. It is
equipped with latest microprocessor injection moulding machines to maintain consistent process
parameters. Over the years, Polycraft has gained skills and unique techniques to manufacture
small and medium size components for Automotive, Pump, Textile, and Medical Industries
besides meeting the captive requirements of Roots Group. Being fully equipped to provide the
best service, Polycraft has satisfied customers who have helped augment its technological
advancesThe Company's commitment towards the customer is demonstrated with quality
products and service. This has resulted in continuous growth and product diversification. The
process is closely monitored with proven techniques to obtain consistently good quality parts.
Roots Polycraft, backed by a full-fledged Tool Room and Design Centre which is equipped with
sophisticated CAD/CAM/CAE software, enables quick preparation of insert drawings and design
of complex moulds, according to customer specifications.RootsPolycraft also assists its
customers in the product design stage to optimize the mould.
Exports
Roots Industries exports to more than 15 countries.Roots also supplies to Ford Motor Company,
North America. Original Equipment Manufacturers: - The horns manufactured by Roots
Industries Limited are employed as Original Equipment by a number of vehicle manufacturers. It
has ‘Roots industries Malaysia Sdn. Bhd, Malaysia it has a separate production unit over there.
Roots Industries Exports to the following countries.
1
North America
2
Germany
3
UK
4
Trico
5
Zinser
6
South Africa
7
Canada
8
South Africa
9
Holland
10 Japan
11 Middle East Countries
Quality Policies
“Enhancing the quality of life
In more ways than one”
The company is committed to provide world class products and services with due concern for the
environment and safety of the society. Quality will be achieved through the following.
1
2
3
4
Continuous improvement of quality
Technology up gradation
Cost Reduction
Total employee involvement
The aim for quality in everything they do
1
2
3
Quality in Behaviour
Quality in Human Relation
Quality in Governance
Quality - An All Pervasive Entity
Roots is committed to manufacture customer-centric and technology-driven products on par with
international quality standards. For example, the horns manufactured undergo a rigorous lifecycle test and are subjected to an endurance of over 200,000 cycles of performance while the
industry norm requires only 100,000.
What's more, Roots believes in a quality culture that goes beyond just products. Equal emphasis
is given to quality in human relation and quality in service. Roots in its journey towards Total
Quality Management have reached important milestones: ISO 9001, QS 9000, VDA 6.1, ISO/TS
16949 and ISO 14001 Certification, presently in the process of obtaining NABL accreditation for
our Metrology lab. The Group's TQM policy has a well-integrated Quality Circle Movement
with active employee participation at various levels.
Environment Policy
With due concern towards maintaining and improving the quality of life, Roots is committed for
sustainable development by minimizing pollution & concerning resources.
This will be achieved through continual improvement in Environment Awareness of all
employees & associates, Legal Compliance & objective towards Environmental Protection.
CHAPTER -II
MAIN THEME OF PROJECT
2.1 OBJECTIVES OF THE STUDY
Primary objective
?
To examine the inventory management system in ROOTS INDUSTRIES INDIA LTD
Coimbatore.
Secondary objectives
?
To analyse the workflow mechanism of procuring, storing, issuing and other procedures
followed in the organization.
?
To analyse the data with different techniques to find out the ideal cost along with the actual
cost and find the ways to reduce the Inventory cost.
?
To examine the impact of stock out situation with the user department
?
To analyse the impact of excess stock maintained in the stores and user department on the
cost of inventory.
2.2 SCOPE AND LIMITATION OF THE STUDY
2.2.1. SCOPE OF THE STUDY
?
The scope is to drive meaningful application of theory for actual implementation. As the
study is focusing on identifying the present potential of the company’s inventory methods
and aims, we identify best set of inventory method to be carried to improve the company’s
policy to determine their inventory.
?
This study provides insight to the management of high value item and low value items. This
study also gives the idea about industrial focus and addressable towards maintaining
inventory.
2.2.2. LIMITATIONS OF THE STUDY
?
This study is limited to the consumption pattern of the various user departments.
?
This study is limited to five years only. i.e. 2009-10 to 2013-14
?
The data collected for computation has been in quantitative terms rather than qualitative as it
involves cost aspect.
?
It consumes more time and requires lots of expenditure. More time is needed to do this study.
?
Study is based on secondary data only.
?
The quality of inventory is not compared in analysis.
?
The analysis is based on figures present in the internal records only.
?
In the EOQ analysis only highly expensive and important raw materials have been taken for
the calculation purpose.
2.3 METHODOLOGY
2.3.1. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem it may be
understood as a science of new research is done scientifically.
Meaning of the research
A careful investigation or inquiry especially through search for new facts in any branch of
knowledge.
2.3.2. RESEARCH DESIGN
A research design is the arrangement of condition and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure.
2.3.3. DESCRIPTIVE RESEARCH
It includes surveys and fact-finding enquiries of different kinds. The main characteristic of this
method is that the researcher has no control over the variables; he can only report what has
happened or what is happening.
2.3.4. DATA COLLETION METHOD
The data can be classified as;
1. Primary data
2. Secondary data
Primary data
The primary data are those which are collected a fresh and for the first time and thus happen. It is
original in character.
Secondary data
The secondary data are those which have already been collected by some one else and which
already been passed through the statistical process. Information for this study has been collected
from the secondary data, like,
?
Annual report
?
Balance sheet
?
Company website
?
Books
?
Company files
?
Articles
TIME PERIOD OF STUDY
The time period of the study is from 2009-2014
2.3.5. TOOLS USED FOR ANALYZING DATA
The following tools used for this study
?
Economic order quantity
?
ABC analysis
?
XYZ analysis
?
FSN analysis
?
Ratio analysis
2.3.5.1. Economic order quantity
Economic order quantity is that level of inventory that minimizes the total of inventory holding
cost and ordering cost. The framework used to determine this order quantity is also known as
Wilson EOQ Model. The model was developed by F. W. Harris in 1913.The most economical
quantity of a product that should be purchased at one time. The EOQ is based on all associated
costs for ordering and maintaining the product. EOQ refers to the size of the order which gives
maximum economy in punches of materials.
Total cost
Carryingcost
Annual cost
Ordering cost
Formula
EOQ = ? (2DA/h)
Where,
D = Annual usage in unit.
A= Ordering cost.
h= Carrying cost of one unit
2.3.5.2. ABC Analysis
ABC analysis is a business term used to define an inventory categorization technique often used
in materials management. ABC analysis provides a mechanism for identifying items which will
have a significant impact on overall inventory cost whilst also providing a mechanism for
identifying different categories of stock that will require different management and controls
When carrying out an ABC analysis, inventory items are valued (item cost multiplied by quantity
issued/consumed in period) with the results then ranked. The results are then grouped typically
into three bands. These bands are called ABC codes.
Formula
Total Value = Total Quantity * Cost Per Order
Consumption Value Percentage = (Total Value of Item/ Value of single Item) *100
ABC codes
1. "A class" inventory will typically contain items that account for 60% of total value
2. "B class" inventory will have around 20% of total value
3. "C class" inventory will account for the remaining 20%
2.3.5.3. XYZ ANALYSIS
The XYZ analysis to review the inventories and their uses at scheduled intervals. The XYZ
analysis, done once in a year helps to identify the item that is being stocked extensively.
X – Item with high inventory value
Y – Item with moderate inventory value
Z – Item with low inventory value
Formula
Total value = Annual usage in unit * Cost per unit
2.3.5.4. FSN Analysis
Based on the consumption of the items, the FSN classification calls for classification of items, as
F-Fast moving
S-Slow moving
N-Non moving
This ‘speed’ classification helps in the arrangement of stocks in the stores and in determining the
distribution and handling patterns. When analysis is carried out on the basis of the rate of
movement of materials in the stores or on the basis of consumption pattern of components, it is
called FSN analysis.
This classification comes in very handy when it is necessary to control obsolescence. The
demand for fast-moving items is generally high. Thus special care should be taken in respect of
these items; otherwise the production may be interrupted due to the shortage of such materials.
Inventories which have only a low turnover are brought under the category of slow-items. These
items are not issued at frequent intervals.
The items with almost nil consumption are brought under the category of non-moving.
2.3.5.5. INVENTORY TURNOVER RATIO:
This ratio shows how many times a company’s inventory is sold and replaced over a period.
The day in the period can be the be divided by the inventory turnover formula to calculate the
Day its make to sell the inventory on hand or inventory days.
FORMULA
Inventory turnover ratio = cost of goods sold (or) sales/ Average inventory
Average inventory = (opening stock + closing stock)/2
2.4 REVIEW OF LITERATURE
Success of any industrial undertaking depends upon the 6 m’s 1) Money 2) Manpower
3)Machine 4) Market 5) Material 6) Management.
Materials are pivotal importance not less than any other M’s. Problems have their root in
material affects the efficiency of all men, machine, money & marketing decisions of the firms
and thus become the grave concern of management at all levels. If there were too much of
material problems like ideal funds lied up in excessive inventory storage and obsolesces
difficulties market pressure would arise. Thus the importance of inventory management is
realized. A number of studies have been done in the field of inventory management by various
researchers. Some of them are given below;
1
Author:- Bern at de William year 2008
This study tells that the main focus of inventory management is on transportation and
warehousing. The decision taken by management depends on the traditional method of inventory
control models. The traditional method of inventory management is how much useful in these
days the author tell about it. He is also saying that the traditional method is not a cost reducing, it
is so much expensive. But the managing the inventory is most important work for any
manufacturing unit.
2. Author: - Jon Schreibfeder 1992
He said that it is easy to turn cash into inventory, the challenge is to turn inventory back into
cash. In early 1990’s many distributor recognize that they needed help controlling and managing
their largest asset inventory. In response to this need several companies developed
comprehensive inventory management modules and systems. These new package include many
new features designed to help distributors effectively managed warehouse stock. But after
implementing this many distributors do not feel that they have gained control of their inventory.
3. Author:-Wolf Bagby, Managing inventory
In this study Mr.W.Bagby explains that by managing the inventory it becomes easier for the
organization to meet the profit goals, shorter the cash cycle, avoid inventory shortage, avoid
excessive carrying costs for unused inventory, and improve profitability by decreasing cash
conversion and adopt JIT system. According to this study companies need to get smart about
inventory. Boosting financial performance is another benefit that comes from better inventory
management. Infect large number of manufacturers enjoy savings and better performance by
choosing the approach of inventory reduction. For this company needs to maximize the cash
flow and profitability and this includes keeping a watchful discerning eye on charge in supply
and demand
4. Author: - Asfaque Ahmed October 12, 2004
(Article from master requirement planning and master production scheduling)
He said that most of the manufacturing company vendors have planning and scheduling product
which assume either infinite production capacity for calculating quantities of row material and
work in progress (WIP) requirements or infinite quantities of raw material and WIP materials for
calculating production capacity. There are many problems with this approach and how to avoid
these by making sure that the product you are buying indeed takes into account finite quantities
of required materials as well as finite capacities of work centers in your manufacturing facilities.
5. Author:-D.Hoopman April 7, 2003
(Article from inventory planning and optimization)
In this article he said that inventory optimization recognize that different industry have different
inventory profiles and requirements. Research has indicated that solutions are priced in a large
range from tens of thousands of dollars to millions of dollars. In this niche market sector price is
definitely not an indicator of the quality of solution, ROI and usability are paramount.
6. Author:-Silver, Edward A Dec22, 2002
(Article from production and inventory management journal)
This article considers the context of a population of items for which the assumption underlying
the EOQ derivation holds reasonably well. However as is frequently the cash in practices there is
an aggregate constraint that applies to the population as a whole. Two common forms of
constraints are:
1) The existence of budget to be allocated among the stocks of the items
2) A purchasing production facility having the capability to process at most a certain number of
replenishment per year. Because of the constraint the individual replenishment quantities cannot
be selected independently.
7. Author:- Charles Atkinson
(A study on inventory management)
In the study by Mr. Charles Atkinson, he explained the inventory management and assessment of
inventory levels. As per this study inventory management need to address two issue
Part I. How to optimize average inventory levels.
Part II. How to assess (evaluate) inventory levels.
This study tells about what the manager should do and not to do, and how much amount should
be order in one placed orders. Average inventory can be calculated by simplistic method.
Average inventory = beginning inventory +end inv/2
8. Author:-Delaunay C ,Sahin E, 2007.
A lots of work has been done but now if we want to go ahead we must have good visibility upon
this field of research. That is why we are focused on frame work for an exhaustive review on the
problem of supply chain management with inventory inaccuracies . The author said that their aim
in this work is also to present the most important criterion that allow a distinction between the
different type of managing the inventory.
CHAPTER-III
DATA ANALYSIS AND INTERPRETATION
TABLE NO. 1
3.1.1. EOQ ANALYSIS FOR THE YEAR 2009 – 10
Item
Annual unit in
tons
1537
Ordering cost
in Rs
38
Carrying cost
in Rs
1
EOQ
143
32
0.5
135
Rods
Aluminium
ingots
Copper wire
439
67
34
40
2.25
1.5
115
60
162
44
2.5
75
Nylon polymers
74
42
0.8
88
CRSS
ABS Black
122
106
36
33
1.75
1.25
70
74
CRCS Sheets,
Strips & Coils
Alu-Zinc Alloy
coated steel sheet
341
INFERENCE
The table shows the EOQ analysis for the year 2009-10. The Alu-Zinc Alloy coated steel sheet
was high EOQ, Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed
that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 1
3.1.1. EOQ ANALYSIS FOR THE YEAR 2009– 10
TABLE NO. 2
3.1.2. EOQ ANALYSIS FOR THE YEAR 2010 – 11
Item
CRCS Sheets, Strips &
Coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
CRSS
ABS Black
Annual unit in
tons
1662
Ordering cost
in Rs
38
Carrying cost
in Rs
2.5
EOQ
142
32
0.5
134
409
87
147
79
111
144
34
40
44
42
36
33
3.25
1.75
2.25
0.75
2
1.5
92
63
75
94
63
80
224
INFERENCE
The table shows the EOQ analysis for the year 2010-11. TheNylon polymers were high EOQ,
Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed that variation
in the EOQ is due to change in ordering and carrying cost.
CHART NO. 2
3.1.2. EOQ ANALYSIS FOR THE YEAR 2010– 11
TABLE NO. 3
3.1.3. EOQ ANALYSIS FOR THE YEAR 2011 – 12
Item
Annual unit in
tons
Ordering cost
in Rs
Carrying cost
in Rs
EOQ
CRCS Sheets,
Strips & Coils
2087
42
0.5
592
Alu-Zinc Alloy
coated steel sheet
143
40
0.75
123
Rods
Aluminium ingots
370
34
34
40
2.5
1.25
100
46
Copper wire
139
36
3.5
53
Nylon polymers
76
37
1.75
56
CRSS
ABS Black
105
109
38
43
2
1.5
63
79
INFERENCE
The table shows the EOQ analysis for the year 2011-12. The Aluminum ingots were high EOQ,
Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed that variation
in the EOQ is due to change in ordering and carrying cost.
CHART NO. 3
3.1.3. EOQ ANALYSIS FOR THE YEAR 2011– 12
TABLE NO. 4
3.1.4. EOQ ANALYSIS FOR THE YEAR 2012 – 13
Item
Annual unit in
tons
Ordering cost
in Rs
Carrying cost
in Rs
EOQ
CRCS Sheets, Strips
& Coils
Alu-Zinc Alloy
coated steel sheet
Zinc GalvSprng Steel
2104
44
0.5
608
66
40
0.75
83
42
35
0.8
60
Rods
Aluminium ingots
92
5274
38
42
1
2
83
470
Copper wire
Nylon polymers
135
61
36
34
1.75
2.25
74
42
CRSS
228
37
0.9
136
ABS Black
72
43
2.5
49
INFERENCE
The table shows the EOQ analysis for the year 2012-13. The Alu-Zinc Alloy coated steel sheet
was high EOQ, CRCS Sheets, Strips & Coils were medium and this Aluminum ingots were low.
It is observed that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 4
3.1.4. EOQ ANALYSIS FOR THE YEAR 2012– 13
TABLE NO. 5
3.1.5. EOQ ANALYSIS FOR THE YEAR 2013 – 14
Item
Annual unit in
tons
2447
Ordering cost
in Rs
41
Carrying cost
in Rs
0.75
EOQ
Alu-Zinc Alloy
coated steel sheet
Zinc Galv Spring
Steel
68
40
1.5
60
57
48
1
74
Rods
Aluminium ingots
114
10568
33
50
2.5
3
55
593
Copper wire
165
42
1.75
88
Nylon polymers
78
34
2.25
48
CRSS
ABS Black
225
98
36
43
3
0.75
73
106
CRCS Sheets,
Strips & Coils
517
INFERENCE
The table shows the EOQ analysis for the year 2013-14. The Alu-Zinc Alloy coated steel sheet
was high EOQ, CRCS Sheets, Strips & Coils were medium and this Aluminum ingots was low. It
is observed that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 5
3.1.5. EOQ ANALYSIS FOR THE YEAR 2013– 14
TABLE NO. 6
3.2.1. ABC ANALYSIS FOR THE YEAR 2009– 10
Item
Order Number
of
of items
ranking
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
7.25
7.25
22.6
6.18
6.00
13.43
19.43
42.0
61.0
4
2.43
2.43
7.60
Rods
E core stack
assembly
CRSS
5
6
1.87
1.358
4.3
5.658
13.4
17.7
7
1.355
7.013
22.0
Terminal Connectors
ABS black
8
9
1.11
1.00
8.123
9.123
25.4
28.5
Nylon polymers
10
0.93
0.93
3.0
Alu-Zinc Alloy
coated steel sheet
11
0.79
1.72
5.4
Aluminium Ingots
12
0.76
2.48
7.7
Condensors
Anabond,thick board
13
14
0.25
0.24
2.73
2.97
8.5
9.3
Powder coating
materials
Rubber Bush
TOTAL
15
0.22
3.19
10
16
0.17
3.36
10.5
CRCS sheets strips
& coils
1
Others
Copper Wire
2
3
Tungsten contacts
INFERENCE
3
6
7
16
% of
items
18.75
37.50
43.75
100
% of
total
value
category
61.0
A
28.5
B
10.5
C
100
From the above table 4 items can be Rs.9.123cr and it will be graded as “B” category and 8 items
can be Rs.3.36cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 6
3.2.1. ABC ANALYSIS FOR THE YEAR 2009 – 10
TABLE NO. 7
3.2.2. ABC ANALYSIS FOR THE YEAR 2010– 11
Item
CRCS sheets
strips & coils
Copper wire
Others
Tungsten contacts
Rods
E core stack
assembly
Order
of
ranking
1
Number
of items
% of
items
Value
(Rs in
crores)
9.30
Cumulative
value (Rs in
crores)
9.30
Cumul
ative
%
25.6
% of
total
value
Category
2
3
4
5
6
3
18.75
42.4
57.7
7.18
13.06
18.92
A
25
15.42
20.99
2.60
4.74
6.87
57.70
4
6.09
5.57
2.60
2.13
2.131
24.46
B
17.74
100
C
Terminal
connectors
7
1.98
8.86
24.46
ABS black
CRSS
8
9
1.35
1.24
1.35
2.60
3.72
7.17
Nylon polymers
Aluminium ingots
Alu-Zinc Alloy
coated steel sheet
Rubber bush
Powder coating
materials
Anabond,thick
board
Condensors
10
11
12
1.05
1.01
0.80
3.66
4.67
5.48
10.09
12.88
15.11
13
14
0.25
0.23
5.73
5.97
15.80
16.46
15
0.237
6.21
17.11
0.22
6.44
17.74
TOTAL
INFERENCE
16
9
16
56.25
100
From the above table 4 items can be Rs.8.86cr and it will be graded as “B” category and 8 items
can be Rs.6.44cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 7
3.2.2. ABC ANALYSIS FOR THE YEAR 2010 – 2011
TABLE NO. 8
3.2.3. ABC ANALYSIS FOR THE YEAR 2011– 12
Item
Order of
ranking
CRCS sheets
strips & coils
Others
Copper Wire
1
Tungsten contacts
E core stack
assembly
Rods
CRSS
Nylon polymers
Terminal
Connectors
ABS black
Number
of items
% of
items
Value Cumulative
(Rs in
value (Rs
crores) in crores)
Cumu
l
ative
%
9.1
9.1
24.5
8.46
5.33
17.56
22.89
47.5
61.8
4
5
2.97
2.29
2.97
5.26
8.0
14.2
6
7
8
9
2.06
1.27
1.25
1.20
7.32
8.59
9.84
11.04
19.7
23.2
26.5
29.8
10
1.15
1.15
3.10
Alu-Zinc Alloy
coated steel sheet
11
0.76
1.91
5.16
Aluminium Ingots
12
0.42
2.33
6.3
Condensors
13
0.27
2.60
7.02
Rubber Bush
14
0.21
2.81
7.6
Powder coating
materials
Anabond,thick
board
TOTAL
15
0.20
3.01
8.13
16
0.17
3.18
8.60
2
3
3
6
7
INFERENCE
16
18.75
37.50
43.75
100
% of
total
value
Category
61.8
A
29.8
B
8.60
C
100
From the above table 6 items can be Rs.11.04cr and it will be graded as “B” category and 7 items
can be Rs.3.18cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 8
3.2.3. ABC ANALYSIS FOR THE YEAR 2011 – 12
TABLE NO. 9
3.2.4. ABC ANALYSIS FOR THE YEAR 2012– 13
Item
Order of
ranking
CRCS sheets strips
& coils
Copper Wire
Others
CRSS
E core stack
assembly
Tungsten contacts
1
Nylon polymers
ABS black
Alu-Zinc Alloy
coated steel sheet
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
11.98
11.98
36.3
5.37
2.90
2.47
2.38
17.35
2.90
5.37
7.75
52.5
8.78
16.2
23.4
2.00
9.75
29.2
7
8
9
0.878
0.875
0.84
0.878
1.753
2.593
2.6
5.3
7.8
Terminal
Connectors
Condensors
10
0.74
3.33
10.1
11
0.71
4.04
12.2
Zinc Galv Spring
steel
Rods
12
0.68
4.72
14.3
0.50
5.22
15.8
Powder coating
materials
14
0.27
5.49
16.6
Anabond,thick
board
Rubber Bush
Aluminium Ingots
15
0.25
5.74
17.4
16
17
0.17
0.12
5.91
6.03
18.0
18.3
TOTAL
INFERENCE
Number
of items
2
% of
items
11.8
2
3
4
5
6
13
4
11
17
23.5
64.7
100
% of
total
value
category
52.5
A
29.2
B
18.3
C
100
From the above table 4 items can be Rs.9.75cr and it will be graded as “B” category and 11 items
can be Rs.6.03cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 9
3.2.4. ABC ANALYSIS FOR THE YEAR 2012 – 13
TABLE NO. 10
3.2.5. ABC ANALYSIS FOR THE YEAR 2013– 14
Item
Order of
ranking
CRCS sheets strips
& coils
Copper Wire
Others
1
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
16.59
16.59
34.5
8.28
5.43
24.87
30.3
51.8
63.0
E core stack
assembly
Tungsten contacts
4
3.57
3.57
7.4
5
3.19
6.76
14.1
CRSS
ABS black
Nylon polymers
Alu-Zinc Alloy
coated steel sheet
6
7
8
9
2.96
1.26
1.18
0.95
9.72
10.98
12.16
0.95
20.2
22.8
25.0
1.98
Condensors
10
0.91
1.86
3.87
Terminal
Connectors
11
0.86
2.72
5.66
Zinc Galv Spring
steel
Rubber Bush
12
0.77
3.49
7.27
0.71
4.2
8.75
Rods
14
0.66
4.86
10.1
Powder coating
materials
Anabond,thick
board
Aluminium Ingots
15
0.327
5.187
10.8
16
0.326
5.513
11.5
17
0.29
5.803
12.0
TOTAL
2
3
13
Number
of items
3
5
9
17
% of
items
17.65
29.14
53.0
100
% of total
value
category
63
A
25
B
12
C
100
INFERENCE
From the above table 5 items can be Rs.12.16cr and it will be graded as “B” category and 8 items
can be Rs.5.803cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO.10
3.2.5. ABC ANALYSIS FOR THE YEAR 2013 – 14
TABLE NO. 11
3.3.1. XYZ ANALYSIS FOR THE YEAR 2009– 10
Item
Total Quantity
per year in tons
1537
Cost per unit
in Rs
47193
Value
(Rs in crores)
7.25
category
143
55300
0.79
Z
439
67
162
74
682549
3593138
8543236
9995572
42645
113840
370535
126673
20.0
0.70
0.20
1.12
1.87
0.76
6.00
0.93
1.35
0.25
0.17
1.11
Y
X
X
Z
Y
Z
Z
Y
CRSS(imported)
122
111132
1.35
Y
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
13161873
1.85
2.43
Y
106
24000
4500
35000
94701
92
550
1765
1.00
0.22
0.24
6.18
Y
Z
Z
Z
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
INFERENCE
X
From the above XYZ table 3 items will be “X” category and 6 items will be “Y” category and 7
items will be “Z” category.
CHART NO. 11
3.3.1. XYZ ANALYSIS FOR THE YEAR 2009-10
TABLE NO. 12
3.3.2. XYZ ANALYSIS FOR THE YEAR 2010– 11
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
1662
Cost per unit
in Rs
56084
Value
(Rs in crores)
9.30
category
142
56876
0.80
Z
409
87
147
79
867016
3639826
11728450
12443161
52273
116794
414920
134073
24.57
0.6
0.21
1.60
2.13
1,01
6.09
1.05
2.131
0.22
0.25
1.98
Y
X
X
Z
Y
Z
Z
Y
111
112610
1.24
Z
14598897
1.78
2.60
Y
144
250000
500000
3000000
94016
9.52
4.75
18.5
1.35
0.23
0.237
5.57
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 4 items will be “Y” category and 9
items will be “Z” category.
CHART NO. 12
3.3.2. XYZ ANALYSIS FOR THE YEAR 2010-11
TABLE NO. 13
3.3.3. XYZ ANALYSIS FOR THE YEAR 2011– 12
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2087
Cost per unit
in Rs
43600
Value
(Rs in crores)
9.09
category
143
53690
0.76
Z
370
34
139
76
969188
4083976
9714349
8575229
55806
124138
383685
165561
24
0.68
0.22
1.40
2.06
0.42
5.33
1.25
2.29
0.27
0.21
1.20
Y
X
X
Y
Y
Z
Z
Y
105
121106
1.27
Y
14303384
2.08
2.97
Y
109
10178
4679
42000
105862
203
375
2015
1.15
0.20
0.17
8.46
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 6 items will be “Y” category and 7
items will be “Z” category.
CHART NO. 13
3.3.3. XYZ ANALYSIS FOR THE YEAR 2011-12
TABLE NO. 14
3.3.4. XYZ ANALYSIS FOR THE YEAR 2012– 13
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Zinc Galv Spring Steel
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2104
Cost per unit
in Rs
56948
Value
(Rs in crores)
11.98
category
66
127715
0.84
Z
42643
92
5274
135
61
293369
3810243
7774400
9905730
162
54705
232
398485
144056
81
1.86
0.22
0.75
0.68
0.50
0.12
5.37
0.87
2.38
0.71
0.17
0.74
Z
Y
Z
X
Z
Y
Z
Z
Y
228536
108
2.47
Z
10208013
2.0
2.00
Y
72
15316
4499
20000
121588
180
557
1450
0.87
0.27
0.25
2.90
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 2 items will be “X” category and 4 items will be “Y” category and 11
items will be “Z” category.
CHART NO. 14
3.3.4. XYZ ANALYSIS FOR THE YEAR 2012-13
TABLE NO. 15
3.3.5. XYZ ANALYSIS FOR THE YEAR 2013– 14
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Zinc Galv Spring Steel
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2447
Cost per unit
in Rs
67822
Value
(Rs in crores)
16.59
Category
68
140832
0.95
Z
57
114
10568
165
78
1201237
4733033
27507867
9126536
135705
58600
275
501845
151930
30
2.0
0.26
0.944
0.77
0.66
0.29
8.28
1.18
3.57
0.91
0.71
0.86
X
Y
Z
X
Z
Y
Z
Z
Y
225
131584
2.96
Z
13641730
2.34
3.19
Y
98
22608
6726
32000
129536
145
486
1700
1.26
0.32
0.326
5.43
Y
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 5 items will be “Y” category and 9
items will be “Z” category.
CHART NO. 15
3.3.5. XYZ ANALYSIS FOR THE YEAR 2013-14
TABLE NO. 16
3.4.1. FSN ANALYSIS FOR THE YEAR 2009– 10
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 16
3.4.1. FSN ANALYSIS FOR THE YEAR 2009-10
TABLE NO. 17
3.4.2. FSN ANALYSIS FOR THE YEAR 2010– 11
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
ALU SHEET-M57S-3/4 HARD-2.15 THK
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 17
3.4.2. FSN ANALYSIS FOR THE YEAR 2010-11
TABLE NO. 18
3.4.3. FSN ANALYSIS FOR THE YEAR 2011– 12
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 18
3.4.3. FSN ANALYSIS FOR THE YEAR 2011– 12
TABLE NO. 19
3.4.4. FSN ANALYSIS FOR THE YEAR 2012– 13
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
ZINC GALV SPRING STEEL
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
NON MOVING
SLOW MOVING
FAST MOVING
NON MOVING
INFERENCE
From the above FSN table 51 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 19
3.4.4. FSN ANALYSIS FOR THE YEAR 2012– 13
TABLE NO. 20
3.4.5. FSN ANALYSIS FOR THE YEAR 2013– 14
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
ZINC GALV SPRING STEEL
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
NON MOVING
SLOW MOVING
FAST MOVING
NON MOVING
INFERENCE
From the above FSN table 51 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 20
3.4.5. FSN ANALYSIS FOR THE YEAR 2013– 14
TABLE NO. 21
3.5.1. INVENTORY TURNOVER RATIO
Year
Sales(X)
(Rs in crores)
Average Inventory(Y)
(Rs in crores)
Ratio(x/y)
2013-14
121.67
18.39
6.61
2012-13
94.82
10.80
8.77
2011-12
96.09
10.51
9.14
2010-11
89.34
10.33
8.65
2009-10
76.22
8.91
8.55
INFERENCE
The table shows the inventory turnover ratio. The ratio was high in 2011-12(9.14), medium in
2010-11(8.65) and this ratio was low in 2013-14(6.61). It is observed that variation in the ratio is
due to change in sales. Average stock shows a steady growth during the period of 5 years. So the
company is using inventory effectively.
CHART NO. 21
3.5.1. INVENTORY TURNOVER RATIO
CHAPTER-IV
FINDINGS, RECOMMENDATIONS AND CONCLUSION
4.1. FINDINGS
? Inventory control techniques like EOQ analysis, ABC analysis, XYZ analysis, and Ratio
analysis are very significant in the manufacturing industries, in order to have a good control
and management over the large number of inventories kept in the stores.
? When we adopting EOQ technique in organization it will save more inventory cost.
? In ABC analysis 60% of items will be graded as “A” category and 25% of items classified
as “B” category and 15% of items classified as “C” category
? From the total XYZ Classification. 65 % of items classified as “X” category and 25% of
items classified as “Y” category and 10% of items classified as “Z” category.
? In FSN Classification. 40% of items classified as “Fast Moving” category and 55% of items
classified as “Slow Moving” category and 5% of items classified as “Non Moving” category.
? The inventory turnover ratio was high in 2011-12(9.14) and this ratio was low in 2013 14(6.61). It indicates the efficient management of inventory.
? This shows that an idle turnover ratio was maintained and this is considered as a positive
indicator of operating efficiency and good from the point of view of liquidity.
? Company’s aim to achieve more sale it may require huge amount of inventory in future.
? There is good relationship between company and their distributors, vendors and sales
executives.
4.2. RECOMMENDATIONS
? To maintain the Re-order level, Min-stock level and Economic order quantity, company
should consider the demand of the product. So that the total Inventory cost will be reduced.
? ‘X’ items have high stock value. The company should take special effort to reduce these
items.
? It is suggested that they can have close monitoring of receipts and issue for A class items in
order to have control of inventory.
? The company shall regulate the further procurement of inputs. System in the inventory
should be standardized.
? It has been predicted that if company is planning to achieve more sale, it may require huge
amount of inventory in future. So the company has to arrange capital to meet future
requirement.
·
? The stock of fast moving items has to be taken care, since non - availability of these stock
will lead to stock out costs. All non - moving stock can be examined and immediate dispose
of unnecessary non - moving stock can be made in order to reduce the inventory stock in
number of days.
? Proper communication should be maintained from dispatch section to store department, about
quantity wasted. Feedback about the quantity wasted will help the store department to
forecast future requirements and to focus on minimum possible waste.
4.3. CONCLUSION
Managing and controlling of inventories, i.e., say raw materials, components, spare parts,
and finished goods is very dispensable in any organization, since it forms 80% to 90% of the
working capital of the company. It is therefore, to get familiar with ways to control inventories
effectively so that there can be efficient allocation of funds. They will be in a position to reduce
investment in inventories to the optimum level and leave sufficient funds for more profitable
channels which will ultimately result in maximization of the shareholder’s wealth.
The techniques of inventory management help in determining the optimum level of
inventory as well as how much should be ordered and when it should be ordered. All these
techniques are helpful in efficient management of inventories and balancing the advantages of
holding additional inventory
BIBLIOGRAPHY
Reference Books
1. Prasanna Chandra, “Financial Management”,2008 Tata Mcgraw Hill Education, New Delhi.
2. R.K. Sharma and Sashi,K.Gupta, “Management Accounting”,2008 Kalyani Publisher.
3. I.M.Pandey,“Financial Management”,10th Edition,Vikas Publication House Pvt Ltd.
4. S.C.Kuchhal, “Financial Management”,Chaitanya Publishing House, Allahabad.
5. P.Gopalakrishnan, “Purchasing and Materials Management”, 2006 Tata McGraw Hill
Education, New Delhi.
6. DileepR.Sule, “Production Planning and industrial scheduling”, 2nd edition,2007.
7. SatishC.Ailawadi,Rakesh Singh, “Logistics Management”,2005 Prentice-Hall of India Pvt
Ltd,New Delhi.
8. R.B.Khanna,“Production and Operations Management”,2007 PHI Learning Pvt Ltd,
New Delhi.
Websites
1. www.rootsindia.com
2. www.inventory .com
3. www.investopedia.com
4. www.wisegeek.com
5. www.mbaguys.net
doc_404117329.docx
“ROOTS INDUSTRIES INDIA LIMITED” is one of the leading manufacturer of Horns in the
world. The project presented over here is titled “INVENTORY MANAGEMENT AT ROOTS
INDUSTRIES INDIA LIMITED, Coimbatore”. The research work is undertaken to find the level
of Inventory used by the company. The main objective of the project is to assess the level of
Inventory, inflow, outflow, in the manufacture of the Horns.
The study revealed that the Inventory management in the “ROOTS INDUSTRIES INDIA
LIMITED.” is satisfactory. Suitable suggestions are recommended to improve the inventory
management and cost control.
TABLE OF CONTENTS
CHAPTER NO
I
II
III
IV
CONTENT
INTRODUCTION
1.1 Introduction
1.2 Industry Profile
1.3 Company Profile
MAIN THEME OF PROJECT
2.1 Objective the study
2.2 Scope and Limitation of the study
2.3 Methodology
2.4 Review of Literature
ANALYSIS AND INTERPRETATION
PAGE NO
1
1
10
13
23
23
24
25
30
33
3.1 Economic Order Quantity Analysis
33
3.2 ABC Analysis
43
3.3 XYZ Analysis
53
3.4 FSN Analysis
63
3.5 Inventory Turnover Ratio
78
FINDINGS, SUGGESTIONS AND CONCLUSION
80
4.1 Findings
80
4.2 Recommendations
81
4.3 Conclusion
82
BIBLIOGRAPHY
83
LIST OF TABLES
TABLE NO
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.5.1
PARTICULARS
EOQ ANALYSIS FOR THE YEAR 2009 – 10
EOQ ANALYSIS FOR THE YEAR 2010 – 11
EOQ ANALYSIS FOR THE YEAR 2011 – 12
EOQ ANALYSIS FOR THE YEAR 2012 – 13
EOQ ANALYSIS FOR THE YEAR 2013 – 14
ABC ANALYSIS FOR THE YEAR 2009 - 10
ABC ANALYSIS FOR THE YEAR 2010 – 11
ABC ANALYSIS FOR THE YEAR 2011 – 12
ABC ANALYSIS FOR THE YEAR 2012 – 13
ABC ANALYSIS FOR THE YEAR 2013 - 14
XYZ ANALYSIS FOR THE YEAR 2009 – 10
XYZ ANALYSIS FOR THE YEAR 2010 - 11
XYZ ANALYSIS FOR THE YEAR 2011 – 12
XYZ ANALYSIS FOR THE YEAR 2012 – 13
XYZ ANALYSIS FOR THE YEAR 2013 – 14
FSN ANALYSIS FOR THE YEAR 2009 – 10
FSN ANALYSIS FOR THE YEAR 2010 – 11
FSN ANALYSIS FOR THE YEAR 2011 – 12
FSN ANALYSIS FOR THE YEAR 2012 – 13
FSN ANALYSIS FOR THE YEAR 2013 – 14
INVENTORY TURNOVER RATIO
PAGE NO
33
35
37
39
41
43
45
47
49
51
53
55
57
59
61
63
66
69
72
75
78
LIST OF CHARTS
CHART NO
3.1.1
3.1.2
3.1.3
3.1.4
PARTICULARS
EOQ ANALYSIS FOR THE YEAR 2009 – 10
EOQ ANALYSIS FOR THE YEAR 2010 – 11
EOQ ANALYSIS FOR THE YEAR 2011 – 12
EOQ ANALYSIS FOR THE YEAR 2012 – 13
PAGE NO
34
36
38
40
3.1.5
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.5.1
EOQ ANALYSIS FOR THE YEAR 2013 – 14
ABC ANALYSIS FOR THE YEAR 2009 - 10
ABC ANALYSIS FOR THE YEAR 2010 – 11
ABC ANALYSIS FOR THE YEAR 2011 – 12
ABC ANALYSIS FOR THE YEAR 2012 – 13
ABC ANALYSIS FOR THE YEAR 2013 - 14
XYZ ANALYSIS FOR THE YEAR 2009 - 10
XYZ ANALYSIS FOR THE YEAR 2010 - 11
XYZ ANALYSIS FOR THE YEAR 2011 – 12
XYZ ANALYSIS FOR THE YEAR 2012 – 13
XYZ ANALYSIS FOR THE YEAR 2013 – 14
FSN ANALYSIS FOR THE YEAR 2009 – 10
FSN ANALYSIS FOR THE YEAR 2010 – 11
FSN ANALYSIS FOR THE YEAR 2011 – 12
FSN ANALYSIS FOR THE YEAR 2012 – 13
FSN ANALYSIS FOR THE YEAR 2013 – 14
INVENTORY TURNOVER RATIO
42
44
46
48
50
52
54
56
58
60
62
65
68
71
74
77
79
CHAPTER -I
1. INTRODUCTION
1
INTRODUCTION TO THE STUDY
Everything has a price; nothing in this world is for free. These statements talks about the goods
and services available to consumers and customers alike throughout the globe. The
manufacturing industry is no way an exception to this statement, rather fact.
ORGINS OF THE WORD INVENTORY
The word inventory was first recorded in 1601. The French term inventoried, or “detailed list of
goods,” dates back to 1415.
BUSINESS INVENTORY
The inventory management system that control of process provides information to efficiently
manage the flow of materials, effectively utilize people and equipment, coordinate internal
activities, and communicate with customers Inventory management and the activities of
inventory control do not make decisions or manager operations; they provide the information to
managers who make more accurate and timely decisions to manage their operations. The
emphasis on each area will vary depending on the company and how it operates, and what
requirements are placed on it due to market demands. Each of the areas above will need to be
addressed in some form or another to have a successful program of inventory management and
control.
Inventories consistent the most significant part of current assets of the large majority of company
in India. On average, approximately 60 percentages of current assets are inventories in all
companies in India. Because of the large size of inventories maintained by firm, a considerable
amount of funds is required to be committed them. A firm neglecting the management of
inventories will be jeopardizing its long-run profitability and may fail ultimately. It is possible a
company to reduce its level of inventories to a considerable degree, e.g., 10 to 20 percent without
any adverse effect on production and sales by using simple inventory planning and control
techniques. The reduction in excessive inventories carries a favorable impact on a company’s
profitability.
Inventory is a list for goods and materials, or those goods and materials themselves, held
available in stock by a business. Supply delay is longer than delivery delay, and also to ease the
effect of imperfections in the manufacturing process that lower production efficiencies if
production capacity stands idle for lack of materials. effective and efficient management of
inventories helps in minimizing holding inventories, risk and losses due to stock out and keeping
the investment in inventories at a reasonable level.
MEANING OF INVENTORY
Inventory is the physical stoke of goods maintained in an organization for its smooth running. In
accounting language it may mean stock of finished goods only. In a manufacturing concern, it
may include raw materials, work-in-progress and stores etc. In the form of materials or supplies
to be consumed in the production process or in the rendering of services. In brief, Inventory is
unconsumed or unsold goods purchased or manufactured
Nature of inventories
Inventories are stock of the product of a company in manufacturing for a sale and component
that make up the product. The various forms of inventories.
?
Raw materials
?
Work-in progress
?
Finished goods
?
Spare parts.
Raw materials are those basic inputs that are converted into finished products through the
manufacturing process. Inventories are raw materials are those units, which have been purchased
and stored for future productions
Work-in progress inventories are semi-manufactured products. They represent products that
need more work before they become finished products for sale.
Finished goods inventories are those completely manufactured products, which are ready for
sale. Stocks of raw materials and work in progress facilitate production, while stock of finished
goods required for smooth marketing operation.
Spare parts include office and plant cleaning materials like soap, brooms, oil, fuel, light bulbs.
These materials do not directly involved production, but are necessary for production process.
The reasons for keeping stock
There are three basic reasons for keeping an inventory:
Time - the time lags present in the supply chain, from supplier to user at every stage, requires
that you maintain certain amount of inventory to use in this “lead time”.
Uncertainty –inventories are maintained as buffers to meet uncertainties in demand, supply and
movements of goods.
Economies of scale-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 bulk buying, movement
and storing brings in economies of scale, thus inventory.
OBJECTIVES INVENTORY MANAGEMENT
The purpose of inventory is to reduce materials holding cost that is inventory carrying cost and
the ordering costs. This helps the company’s to save their cost of capital and utilize their
resources for a better investment opportunity.
?
To maintain a large size of inventories of raw materials and work in progress for efficient and
smooth production and of finished goods for uninterrupted sales operation.
?
To maintain a minimum investment in inventories to maximize profitability.
?
To avoid the both over stocking and under stocking of inventory.
?
To keeping material cost under control so they contribute in reducing cost of production and
overall costs.
?
To ensure a right quantity goods at reasonable time
Operating Objectives
?
Ensuring Availability of Materials: There should be a continuous availability of all types of
raw materials in the factory so that the production may not be help up wants of any material.
A minimum quantity of each material should be held in store to permit production to move
on schedule.
?
Avoidance of Abnormal Wastage: There should be minimum possible wastage of materials
while these are being stored in the godowns or used in the factory by the workers. Wastage
should be allowed up to a certain level known as normal wastage. To avoid any abnormal
wastage, strict control over the inventory should be exercised. Leakage, theft, embezzlements
of raw material and spoilage of material due to rust, bust should be avoided.
?
Promotion of Manufacturing Efficiency: If the right type of raw material is available to the
manufacturing departments at the right time, their manufacturing efficiency is also increased.
?
Avoidance of Out of Stock Danger: Information about availability of materials should be
made continuously available to the management so that they can do planning for
procurement of raw material. It maintains the inventories at the optimum level keeping in
view the operational requirements. It also avoids the out of stock danger.
?
Better Service to Customers: Sufficient stock of finished goods must be maintained to
match reasonable demand of the customers for prompt execution of their orders.
?
Highlighting slow moving and obsolete items of materials.
?
Designing poorer organization for inventory management: Clear cut accountability
should be fixed at various levels of organization.
Financial Objectives
?
Economy in purchasing: A proper inventory control brings certain advantages and
economies in purchasing also. Every attempt has to make to effect economy in purchasing
through quantity and taking advantage to favorable markets.
?
Reasonable Price: While purchasing materials, it is to be seen that right quality of material
is purchased at reasonably low price. Quality is not to be sacrificed at the cost of lower price.
The material purchased should be of the quality alone which is needed.
?
Optimum Investing and Efficient Use of capital: The basic aim of inventory control from
the financial point of view is the optimum level of investment in inventories. There should be
no excessive investment in stock, etc. Investment in inventories must not tie up funds that
could be used in other activities. The determination of maximum and minimum level of stock
attempt in this direction.
BENEFITS OF INVENTORY CONTROL
?
Keeps down investment
?
Eliminates duplication
?
Better utilization of available stock
?
Minimizes stock out situations
?
Re-sale of obsolete inventory.
?
Adequate supply of materials
Cost associated with inventories
The effective management of inventory involves a trade-off between having too little and too
much inventory. In achieving this trade off , the finance manager should realize that costs may be
closely related.
?
Ordering costs
?
Carrying inventory costs
Ordering costs
The term ordering costs is used in case of raw materials and includes the entire costs of acquiring
raw material. Any manufacturing organization has to purchase materials. Ordering costs refer to
the cost associated with the preparation of requisition forms by the user department, set up costs
to be incurred by the manufacturing department and transport, inspection at the user department.
By and large, ordering costs remain more or less constant irrespective of the size of the order
although transportation and inspection cost may vary to a certain extent depending upon order
size. But this is not going to significantly affect the behavior of ordering costs. As ordering costs
are considered invariant to the order size, the total ordering costs can be reduced by increasing
the size of the orders
Carrying inventory costs
These are the expenses of storing goods. Once the goods have been accepted, they become part
of the firm’s inventories. These costs include insurance, rent/depreciation of warehouse, and
salaries of storekeeper, his assistants and security personnel, financing cost of money locked up
in inventories, obsolescence’s, spoilage and taxes.
By and large, carrying costs are considered to be given percentage of the value of inventory held
in warehouse, despite some of the fixed elements of costs that comprise only a small portion of
total carrying costs. Approximately, carrying costs are considered to be around 25 percentage of
the value of the inventory held in storage. The greater the investment in inventory, the greater the
carrying costs.
?
Ordering costs
Requisitioning
?
Carrying costs
Warehousing
?
Order placing
?
Handling
?
Transportation
?
Clerical and staff
?
Receiving, inspecting
?
Insurance
?
Clerical and staff
IMPORTANCE OF INVENTORY MANAGEMENT
1. COUNTING CURRENT STOCK
All businesses must know what they have on hand and evaluate stock levels with respect to
current and forecasted demands. You must know what you have in stock to ensure you can meet
the demands of customers and production and to be sure you are ordering enough stock in the
future. Counting is also important because it is the only way you will know if there is a problem
with theft occurring at some point in the supply chain. When you become aware of such
problems you can take steps to eliminate them.
2. CONTROLLING SUPPLY AND DEMAND
Whenever possible, obtain a commitment from a customer for a purchase. In this way, you
ensure that the items you order will not take space in your inventory for long. When this is not
possible, you may be able to share responsibility for the cost of carrying goods with the
salesperson, to ensure that an order placed actually results in a sale. You can also keep a list of
goods that can easily be sold to another party, should a customer cancel. Such goods can be
ordered without prior approval.
Approval procedures should be arranged around several factors. You should set minimum and
maximum quantities which your buyers can order without prior approval. This ensures that you
are maximizing any volume discounts available through your vendors and preventing over
ordering of stock. It is also important to require pre-approval on goods with a high carrying cost.
3. KEEPING ACCURATE RECORDS
Any time items arrive at or leave a warehouse, accurate paperwork should be kept, itemizing the
goods. When inventory arrives, this is when you will find breakage or loss on the goods you
ordered. Inventory leaving your warehouse must be counted to prevent loss between the
warehouse and the point of sale. Even samples should be recorded, making the salesperson
responsible for the goods until they are returned to the storage facility. Records should be
processed quickly, at least in the same day that the withdrawal of stock occurred.
4. MANAGING EMPLOYEES
Buyers are the employees who make stock purchases for your company. Reward systems should
be set in place that encourage high levels of customer service and return on investment for the
product lines the buyer manages. Warehouse employees should be educated on the costs of
improper inventory management. Be sure they understand that the lower your profit margin, the
more sales must be generated to make up for the lost goods. Incentive programs can help
employees keep this in perspective. When they see a difference in their paychecks from poor
inventory management, they are more likely to take precautions to prevent shrinkage.Each stock
item in your warehouse or back room should have its own procedures for replenishing the
supply. Find the best suppliers and storage location for each and record this information in
official procedures that can easily be accessed by your employees. Inventory management should
be a part of your overall strategic business plan. As the business climate evolves towards a green
economy, businesses are looking for ways to leverage this trend as part of the “big picture”. This
can mean re-evaluating your supply chain and choosing products that are environmentally sound.
It can also mean putting in place recycling procedures for packaging or other materials. In this
way, inventory management is more than a means to control costs; it becomes a way to promote
your business.
SUCCESSFUL INVENTORY MANAGEMENT
Successful inventory management involves balancing the costs of inventory with the benefits of
inventory. Many small business owners fail to appreciate fully the true costs of carrying
inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of
money tied up in inventory. This fine line between keeping too much inventory and not enough is
not the manager's only concern. Others include:
?
Maintaining a wide assortment of stock -- but not spreading the rapidly moving ones too thin
?
Increasing inventory turnover -- but not sacrificing the service level
?
Keeping stock low -- but not sacrificing service or performance.
?
Obtaining lower prices by making volume purchases -- but not ending up with slow moving
inventory
?
Having an adequate inventory on hand -- but not getting caught with obsolete items.
?
The degree of success in addressing these concerns is easier to gauge for some than for
others. For example, computing
ABOUT INVENTORY CONTROL
Inventory consists of the goods and materials that a retail business holds for sale or a
manufacturer keeps in raw materials for production. Inventory control is a means for maintaining
the right level of supply and reducing loss to goods or materials before they become a finished
product or are sold to the consumer. Inventory control is one of the greatest factors in a
company’s success or failure. This part of the supply chain has a great impact on the company’s
ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished
products. Proper inventory control will balance the customer’s need to secure products quickly
with the business need to control warehousing costs. To manage inventory effectively, a business
must have a firm understanding of demand, and cost of inventory.
ADVANTAGES OF INVENTORY CONTROL
(1) Reduction in investment in inventory.
(2) Proper and efficient use of raw materials.
(3)No bottleneck in production.
(4) Improvement in production and sales.
(5) Efficient and optimum use of physical as well as financial resources.
(6)Ordering cost can be reduced if a firm places a few large orders in place of numerous small
orders.
(7)Maintenance of adequate inventories reduces the set-up cost associated with each production
run.
1.2 INDUSTRY PROFILE
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in
very small numbers.
Embryonic automotive industry emerged in India in the 1940s.Mahindra&Mahindra was
established by two brothers as a trading company in 1945, and began assembly of Jeep CJ -3A
utility vehicles under license from Willys. The company soon branched out into the manufacture
of Light Commercial Vehciles (LCVs) and agricultural tractors.
Following the Independence, in 1947, the Government of India and the privaesector launched
efforts to create an automotive component manufacturing industry to supply to the automobile
industry. However, the growth was relatively slow in the 1950s and 1960s due
to nationalisation and the license raj which hampered the Indian private sector. After 1970, the
automotive industry started to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian
market ultimately leading to the establishment of Maruti. A number of foreign firms initiated
joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motor
cycles and light commercial-vehicles. It was at this time that the Indian government chose
Suzukifor its joint-venture to manufacture small cars. Following the economic liberalisation in
1991 and the gradual weakening of the license raj, a number of Indian and multi-national car
companies launched operations. Since then, automotive component and automobile
manufacturing growth has accelerated to meet domestic and export demands.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, expanded their domestic and international operations. India's robust economic
growth led to the further expansion of its domestic automobile market which has attracted
significant India-specific investment by multinational automobile manufacturers. In February
2009, a monthly sale of passenger cars in India exceeded 100,000 units and has since grown
rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales
in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning
a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is
unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand,
will likely be the limiting factor.
SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and
international, in India.
The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has been
high. System-suppliers of integrated components and sub-systems have become the order of the
day. However, further investment in new technologies will help the industry be more
competitive. Over the past few years, the industry has been volatile. Currently, India's increasing
per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is
playing a major role in the rise and competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market share of about 64%.
Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai
Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas
market. Hero Honda Motors is occupying over 41% and sharing 26% of the two wheeler market
in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler
market.
Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In
2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars.
Steel is the major input used by manufacturers and the rise in price of steel is putting a cost
pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil
and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility, and capital
efficiency. Having quality manpower, infrastructure improvements, and raw material availability
also play a major role. Access to latest and most efficient technology and techniques will bring
competitive advantage to the major players. Utilising manufacturing plants to optimum level and
understanding implications from the government policies are the essentials in the Automotive
Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry.
The Indian government should facilitate infrastructure creation, create favourable and predictable
business environment, attract investment and promote research and development. The role of
Industry will primarily be in designing and manufacturing products of world-class quality
establishing cost competitiveness and improving productivity in labour and in capital. With a
combined effort, the Indian Automotive industry will emerge as the destination of choice in the
world for design and manufacturing of automobiles.
Automotive spare parts and components is a lesser known industry yet a big one. In past few
years the industry has grown enormously, even more than the automotive industry itself not only
in the Indian but global scenario. This vast industry includes automotive components,
accessories, gadgets, spare parts and tools; the consumers being the OEM segment and the
replacement and aftermarket sector. Automotive spare parts replacement and aftermarket have in
themselves become a major industry. In mid 1990’s the quality of Indian products increased a lot
and the prices were considerably lowered. This posed an interesting situation where the Indian
replacement and aftermarket industry had geared up to meet the international standards and
awaited an ideal opportunity for global exposure.
Certain SME’s through their focused operations are now serving the global automotive giants
directly or through suppliers. Online catalogs and websites have added to the online presence of
our clients.
The results are quite apparent, Indian automotive parts industry makes original components of
major automotive giants like General Motors and Mercedes amongst others. They have, through
consolidated efforts been positioned as global players of the sector.
1.3 COMPANY PROFILE
In a dynamic world that is driven by technology, a successful presence depends on the way you
mould that technology to fit popular needs. Indigenous talent, a daring attitude, courage to accept
and learn new things and the simple spark of an idea. That is the genesis of ROOTS.
ROOTS Industries India Ltd. is a leading manufacturer of horns in India and the 11th largest
Horn Manufacturing Company in the world.
Headquartered in Coimbatore - India, ROOTS has been a dominant player in the manufacture of
Horns
and
other
products
like Castings and Industrial
Cleaning Machines. Since
its
establishment in 1970, ROOTS has had a vision and commitment to produce and deliver quality
products adhering to International Standards.
With a strong innovative base and commitment to Quality, Roots Industries India Ltd has
occupied a key position in both international and domestic market as suppliers to leading OEMs
and after market. Similar to products, Roots has leading edge over competitors on strong quality
system base. Now, RIL is the first Indian Company and first horn manufacturing company in the
world to get ISO/TS 16949 certification based on effective implementation of QS 9000 and VDA
6.1 system requirement earlier. Roots' vision is to become a world class company manufacturing
world class product, excelling in human relation.
Roots' single minded pursuit of enhancing the quality of life has led to many other
diversifications. Roots, today, is a multifaceted corporate entity with interests in automobile
accessories, cleaning equipment, castings, precision tools and hi-tech engineering services.
Mission
The mission of Roots has always been to locate and to mould exceptional leaders and
private with all the sincere effort that solid basics to extend organization solutions to
customers worldwide and there by enhance the Roots competitive advantage. The company
does so thought long team and deeply committed human relations based on the key values
like
Activity
focus,
Discipline,
Experience,
Innovation,
Integrity,
Introspection,
Professionalism, Quality Culture and Team Work.
VISION
We will stand technologically ahead of others to deliver world-class innovative products
useful to our customers. We will rather lose our business than our customers' satisfaction. It is
our
aim
that
the
customer
should
get
the
best
value
for
his
money.
Every member of our company will have decent living standards. We care deeply for our
families, for our environment and our society. We promise to pay back in full measure to the
society by way of selfless and unstinted service.
Roots is a leading Original Equipment supplier to major vehicle manufacturers like Mercedez
Benz, Mitsubishi, Mahindra & Mahindra, Toyota, Fiat, TELCO, Harley Davidson, Navistar etc.
The ever demanding requirements of Customer Satisfaction has strengthened the R & D
activities and increased Roots technical competence to international standards.
Roots Multiclean Ltd. (RMCL) is a joint venture with HakoWerke GmbH & Co., Germany, one
of the largest cleaning machine manufacturers with global operations. RMCL is the sole
representative in India and SAARC countries for HakoWerke's entire range of cleaning
equipment. The quality of RMCL products is so well established that Hako buys back a major
portion for their global market.
RMCL also represents several global manufacturers of cleaning products and is gearing itself up
to provide customized, total cleaning solutions.
About the Founder
An obsessive hobby went into the making of this self-made industrialist. Born in an agricultural
family, young Mr.K.Ramasamy had a great interest in repairing automobiles. This led to his
getting the master's degree in Automobile Engineering from Lincoln Technical Institute, USA in
1969 and developing a unique Radiator Coolant Recovery System, which is today a standard
equipment in almost all vehicles manufactured by the advanced countries.
In 1970, Mr.K.Ramasamy promoted M/s. American Auto Service, which was taken over in 1992
by Roots Industries Private Limited, a company promoted by Mr.K.Ramasamy. This company
entered into technical collaboration with Robert Bosch, the world leaders in auto electrical to
manufacture all the range of Bosch Horns. Mr.K.Ramasamy had a very inquisitive and
innovative temperament. This led to his having many first in his distinguished career.
Servo brakes were designed for the first time in India by Mr.K.Ramasamy. He designed the first
high frequency Wind Tone type horn which was smaller and lighter than conventional horns.
Besides all the other firsts, Mr.K.Ramasamy introduced electronically controlled Musical Air
Horns for the first time in the World. The thirst for innovation and drive to move forward, led to
the establishment of a die casting unit to meet the captive requirement of ROOTS. In 1987,
Mr.K.Ramasamy set up a full-fledged modern tool room equipped with the latest machines for
the manufacture of precision tools and dies. He promoted Roots Multiclean Ltd., a joint venture
in Techno-financialcollaboration with M/s. HakoWerke GmbH, Germany to manufacture world
class Industrial Floor Care and Floor Cleaning Equipments. RMCL is successfully spreading the
concept of Mechanized Cleaning in India and also exports its products to various countries
like Australia, Britain, Germany, Japan Singapore, etc.
Mr.K.Ramasamy can very proudly claim that he is a self-made industrialist and in recognition of
the same, he has been conferred the Udyog Shree Award in the year 1990. He has also been
awarded the Udyog Rattan Award by the Institute of Economic Studies in the year 1991.
Mr.K.Ramasamy has been awarded UdyogPatra Award by the Institute of Trade and Industrial
Development Delhi in the year 1992 in recognition of being a self made industrialist and
also his contribution to the
economic
development
of
the
country
along with
BharatiyaUdyogJothi Award instituted by the Indian Institute of Entrepreneurship Development,
Delhi.
Mr.K.Ramasamy has been conferred the Vikas Rattan Award and the Gem of India award. He
has been awarded UdyogGaurav Award by All India Organization of Entrepreneurship
Confederation.
Roots Industries has been awarded the American International Quality Award in 1994 by
FulhamGeissler Associates, USA. Mr.K.Ramasamy was Chairman of the Confederation of
Indian Industry Coimbatore. Besides this, he lends his leadership to a lot of other social
organizations and his dynamic presence is a driving force behind all the group companies of
Roots.
THE ROOTS GROUP
NAME OF ROOTS GROUPS
Roots Industries India Ltd
Roots Auto Products Pvt ltd
Roots Multiclean Ltd
Roots Cast Pvt Ltd
Roots Precision Products Pvt Ltd
Roots Metrology Laboratory
Roots Polycraft
R K Nature Home
SatchidanandaJothiNikethan
Integral Yoga Institute
Roots Industries Malaysia sdn.Bdn
ROOTS INDUSTRIES INDIA LTD
PRODUCTS
Electric Horns
Air Horns,Switches&Conrollers
Cleaning Machines
Aluminium& Zinc Presssure Die Cast
Dies,Tools,Jigs& Fixtures
Instrument Calibration,
Quality System,Consultancy
Plastic Components
Nature Cure Therapy,Yoga& Massages
International School
Yoga and Meditation
Electric Horns
It all started with just a honk. Encouraged by the response, we kept on moving ahead. In the
beginning, we did not realize that we would make such an impact. Slowly but surely, the
reverberations were felt far and wide. Indian automobile market responded to our call. Soon the
global market too followed suit. Roots horns, in a very short span of time, got a place of pride in
millions of vehicles across the globe.
PRODUCTS
?
Wind tone
?
Vibrosonic
?
Clear tone
?
Roots 90
?
Megasonic
?
Smartone spider
?
R 70
?
Sensors
Roots Industries specializes in the manufacture of a wide range and line-up of automobile horns.
Roots is a leading supplier to all the major vehicle manufacturers like Ford, Daimler Chrysler,
Mitsubishi Lancer, Mahindra & Mahindra, Toyota, Tata Motors, Fiat Uno and Siena, TELCO,
TVS Motor Company, Kinetic Honda, etc.
Roots Industries India Ltd places a premium on original technology and innovation. Roots'
indigenous talent has kicked off a spree of growth unmatched in the history of automobile OE
manufacturers
What more could we ask for? But we did ask more. We indeed made a sound beginning but we
could not rest on our laurels. The journey has to go on. There are more miles to go. And more
challenging territories to explore.
ROOTS AUTO PRODUCTS PVT LTD
Commercial transportation plays a crucial role in the economic development of nations. Roots
Air Horns ensures safe and smooth passage of thousands of heavy vehicles on the move.
Roots Auto Products Private Limited (RAPPL), the largest supplier of Air Horns in India caters
to the needs of several OEMs: Ashok Leyland, Caterpillar India and JCB Escorts. Roots Air
Horns also find a place of pride in Passenger vehicles, Trucks, Earth Moving equipment,
Material Handling equipment, etc. Roots Air Horns are exported to countries in North America,
Europe, Middle East, Africa and SAARC region.
ROOTS MULTICLEAN LTD
The genesis of Roots Multiclean Ltd., (RMCL) is due to the vision of the promoter of Roots
group of company about the requirement of sophisticated cleaning equipment in the country
following globalization of business and entry of Multi Nationals who have very high standard of
house keeping. RMCL, situated in the suburbs of Coimbatore, is a Joint Venture with
HakoWerkeGmbh& Co., Germany. It commenced manufacture of cleaning equipment in early
90s at its modern factory located amidst natural greenery. RMCL is the sole representative of
HakoWerkeGmbh& Company's entire range of cleaning equipment for India and SAARC
countries. To improvise and facilitate a better service to its customers, RMCL has established
Regional offices in all Metros and a huge dealer network in bigger Cities and States.The superior
quality products and the added advantage of good after sales service has established the company
as the country's largest manufacturer of floor cleaning equipment.
ROOTS CAST PVT. LTD
Roots Cast Pvt. Ltd., (RCPL) (formerly known as Aruna Auto Castings Private Limited) was
established in 1984 to meet the captive requirements of the Roots group. With its ever probing
eye on the needs of the market, the company in the late 80s expanded its operations to
manufacture High Pressure Die Cast Aluminium and Zinc components to the exacting needs of
various customers in Automobile and Textile Industries with a high degree of Quality and
Perfection. RCPL, now has established itself as a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool design, tool making and
pressure die cast component manufacturing.RCPL supplies machined castings and subassemblies as per customer requisitions
PRODUCTS
?
RSV Governor hsg
?
Heat-sink
?
Pump body and cover
?
Ring holder
?
Fixing bracket
?
Steam & Dry iron sole plates
?
Clam shell
?
Pivot housing
?
Field Mould
?
GF Nylon 66
ROOTS PRECISION PRODUCTS PVT LTD
Roots Precision Products was established in 1987 to address the in-house tooling needs of the
diverse industries in Roots group. Owing to continuous improvement and investment into better
resources, the company has become self-sufficient. It is catering to the needs of various
industries. RPP acts as a one-stop solution for tooling and precision machining.
PRODUCTS
?
Die casting Dies
?
Engineering plastic Moulds
?
Press tools
?
Jigs & Fixtures
ROOTS METROLOGY LABORATORY
Roots' state-of-the-art Metrology Laboratory is a comprehensive calibration centre in South India
that offers mechanical, electrical, torque, pressure and vacuum calibration instruments all under
one roof.
The laboratory is equipped with advanced facilities traceable to national / international
standards. RMTL is accredited by National accreditation Board for Testing and Calibration
laboratory as per ISO/IEC 17025 : 2005 standards in the field of Mechanical – Dimensions,
Pressure/Vacuum, & Force. The laboratory offers on-site calibration facility and serves the
industry to calibrate surface table, coordinate measuring machine, profile projector, Toolmakers
Microscope, Pressure switches, Pressure gauges, Temperature indicators, RTDs, Temperature
sensors/scanners, Electronic transmitters, Pressure reducing valves, Ovens, etc.The expertise of
the laboratory has attracted many renowned Public and Private Sector undertakings.
ROOTS POLYCRAFT
Roots Polycraft (PC) was established in 1988 to manufacture precision plastic components. It is
equipped with latest microprocessor injection moulding machines to maintain consistent process
parameters. Over the years, Polycraft has gained skills and unique techniques to manufacture
small and medium size components for Automotive, Pump, Textile, and Medical Industries
besides meeting the captive requirements of Roots Group. Being fully equipped to provide the
best service, Polycraft has satisfied customers who have helped augment its technological
advancesThe Company's commitment towards the customer is demonstrated with quality
products and service. This has resulted in continuous growth and product diversification. The
process is closely monitored with proven techniques to obtain consistently good quality parts.
Roots Polycraft, backed by a full-fledged Tool Room and Design Centre which is equipped with
sophisticated CAD/CAM/CAE software, enables quick preparation of insert drawings and design
of complex moulds, according to customer specifications.RootsPolycraft also assists its
customers in the product design stage to optimize the mould.
Exports
Roots Industries exports to more than 15 countries.Roots also supplies to Ford Motor Company,
North America. Original Equipment Manufacturers: - The horns manufactured by Roots
Industries Limited are employed as Original Equipment by a number of vehicle manufacturers. It
has ‘Roots industries Malaysia Sdn. Bhd, Malaysia it has a separate production unit over there.
Roots Industries Exports to the following countries.
1
North America
2
Germany
3
UK
4
Trico
5
Zinser
6
South Africa
7
Canada
8
South Africa
9
Holland
10 Japan
11 Middle East Countries
Quality Policies
“Enhancing the quality of life
In more ways than one”
The company is committed to provide world class products and services with due concern for the
environment and safety of the society. Quality will be achieved through the following.
1
2
3
4
Continuous improvement of quality
Technology up gradation
Cost Reduction
Total employee involvement
The aim for quality in everything they do
1
2
3
Quality in Behaviour
Quality in Human Relation
Quality in Governance
Quality - An All Pervasive Entity
Roots is committed to manufacture customer-centric and technology-driven products on par with
international quality standards. For example, the horns manufactured undergo a rigorous lifecycle test and are subjected to an endurance of over 200,000 cycles of performance while the
industry norm requires only 100,000.
What's more, Roots believes in a quality culture that goes beyond just products. Equal emphasis
is given to quality in human relation and quality in service. Roots in its journey towards Total
Quality Management have reached important milestones: ISO 9001, QS 9000, VDA 6.1, ISO/TS
16949 and ISO 14001 Certification, presently in the process of obtaining NABL accreditation for
our Metrology lab. The Group's TQM policy has a well-integrated Quality Circle Movement
with active employee participation at various levels.
Environment Policy
With due concern towards maintaining and improving the quality of life, Roots is committed for
sustainable development by minimizing pollution & concerning resources.
This will be achieved through continual improvement in Environment Awareness of all
employees & associates, Legal Compliance & objective towards Environmental Protection.
CHAPTER -II
MAIN THEME OF PROJECT
2.1 OBJECTIVES OF THE STUDY
Primary objective
?
To examine the inventory management system in ROOTS INDUSTRIES INDIA LTD
Coimbatore.
Secondary objectives
?
To analyse the workflow mechanism of procuring, storing, issuing and other procedures
followed in the organization.
?
To analyse the data with different techniques to find out the ideal cost along with the actual
cost and find the ways to reduce the Inventory cost.
?
To examine the impact of stock out situation with the user department
?
To analyse the impact of excess stock maintained in the stores and user department on the
cost of inventory.
2.2 SCOPE AND LIMITATION OF THE STUDY
2.2.1. SCOPE OF THE STUDY
?
The scope is to drive meaningful application of theory for actual implementation. As the
study is focusing on identifying the present potential of the company’s inventory methods
and aims, we identify best set of inventory method to be carried to improve the company’s
policy to determine their inventory.
?
This study provides insight to the management of high value item and low value items. This
study also gives the idea about industrial focus and addressable towards maintaining
inventory.
2.2.2. LIMITATIONS OF THE STUDY
?
This study is limited to the consumption pattern of the various user departments.
?
This study is limited to five years only. i.e. 2009-10 to 2013-14
?
The data collected for computation has been in quantitative terms rather than qualitative as it
involves cost aspect.
?
It consumes more time and requires lots of expenditure. More time is needed to do this study.
?
Study is based on secondary data only.
?
The quality of inventory is not compared in analysis.
?
The analysis is based on figures present in the internal records only.
?
In the EOQ analysis only highly expensive and important raw materials have been taken for
the calculation purpose.
2.3 METHODOLOGY
2.3.1. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem it may be
understood as a science of new research is done scientifically.
Meaning of the research
A careful investigation or inquiry especially through search for new facts in any branch of
knowledge.
2.3.2. RESEARCH DESIGN
A research design is the arrangement of condition and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure.
2.3.3. DESCRIPTIVE RESEARCH
It includes surveys and fact-finding enquiries of different kinds. The main characteristic of this
method is that the researcher has no control over the variables; he can only report what has
happened or what is happening.
2.3.4. DATA COLLETION METHOD
The data can be classified as;
1. Primary data
2. Secondary data
Primary data
The primary data are those which are collected a fresh and for the first time and thus happen. It is
original in character.
Secondary data
The secondary data are those which have already been collected by some one else and which
already been passed through the statistical process. Information for this study has been collected
from the secondary data, like,
?
Annual report
?
Balance sheet
?
Company website
?
Books
?
Company files
?
Articles
TIME PERIOD OF STUDY
The time period of the study is from 2009-2014
2.3.5. TOOLS USED FOR ANALYZING DATA
The following tools used for this study
?
Economic order quantity
?
ABC analysis
?
XYZ analysis
?
FSN analysis
?
Ratio analysis
2.3.5.1. Economic order quantity
Economic order quantity is that level of inventory that minimizes the total of inventory holding
cost and ordering cost. The framework used to determine this order quantity is also known as
Wilson EOQ Model. The model was developed by F. W. Harris in 1913.The most economical
quantity of a product that should be purchased at one time. The EOQ is based on all associated
costs for ordering and maintaining the product. EOQ refers to the size of the order which gives
maximum economy in punches of materials.
Total cost
Carryingcost
Annual cost
Ordering cost
Formula
EOQ = ? (2DA/h)
Where,
D = Annual usage in unit.
A= Ordering cost.
h= Carrying cost of one unit
2.3.5.2. ABC Analysis
ABC analysis is a business term used to define an inventory categorization technique often used
in materials management. ABC analysis provides a mechanism for identifying items which will
have a significant impact on overall inventory cost whilst also providing a mechanism for
identifying different categories of stock that will require different management and controls
When carrying out an ABC analysis, inventory items are valued (item cost multiplied by quantity
issued/consumed in period) with the results then ranked. The results are then grouped typically
into three bands. These bands are called ABC codes.
Formula
Total Value = Total Quantity * Cost Per Order
Consumption Value Percentage = (Total Value of Item/ Value of single Item) *100
ABC codes
1. "A class" inventory will typically contain items that account for 60% of total value
2. "B class" inventory will have around 20% of total value
3. "C class" inventory will account for the remaining 20%
2.3.5.3. XYZ ANALYSIS
The XYZ analysis to review the inventories and their uses at scheduled intervals. The XYZ
analysis, done once in a year helps to identify the item that is being stocked extensively.
X – Item with high inventory value
Y – Item with moderate inventory value
Z – Item with low inventory value
Formula
Total value = Annual usage in unit * Cost per unit
2.3.5.4. FSN Analysis
Based on the consumption of the items, the FSN classification calls for classification of items, as
F-Fast moving
S-Slow moving
N-Non moving
This ‘speed’ classification helps in the arrangement of stocks in the stores and in determining the
distribution and handling patterns. When analysis is carried out on the basis of the rate of
movement of materials in the stores or on the basis of consumption pattern of components, it is
called FSN analysis.
This classification comes in very handy when it is necessary to control obsolescence. The
demand for fast-moving items is generally high. Thus special care should be taken in respect of
these items; otherwise the production may be interrupted due to the shortage of such materials.
Inventories which have only a low turnover are brought under the category of slow-items. These
items are not issued at frequent intervals.
The items with almost nil consumption are brought under the category of non-moving.
2.3.5.5. INVENTORY TURNOVER RATIO:
This ratio shows how many times a company’s inventory is sold and replaced over a period.
The day in the period can be the be divided by the inventory turnover formula to calculate the
Day its make to sell the inventory on hand or inventory days.
FORMULA
Inventory turnover ratio = cost of goods sold (or) sales/ Average inventory
Average inventory = (opening stock + closing stock)/2
2.4 REVIEW OF LITERATURE
Success of any industrial undertaking depends upon the 6 m’s 1) Money 2) Manpower
3)Machine 4) Market 5) Material 6) Management.
Materials are pivotal importance not less than any other M’s. Problems have their root in
material affects the efficiency of all men, machine, money & marketing decisions of the firms
and thus become the grave concern of management at all levels. If there were too much of
material problems like ideal funds lied up in excessive inventory storage and obsolesces
difficulties market pressure would arise. Thus the importance of inventory management is
realized. A number of studies have been done in the field of inventory management by various
researchers. Some of them are given below;
1
Author:- Bern at de William year 2008
This study tells that the main focus of inventory management is on transportation and
warehousing. The decision taken by management depends on the traditional method of inventory
control models. The traditional method of inventory management is how much useful in these
days the author tell about it. He is also saying that the traditional method is not a cost reducing, it
is so much expensive. But the managing the inventory is most important work for any
manufacturing unit.
2. Author: - Jon Schreibfeder 1992
He said that it is easy to turn cash into inventory, the challenge is to turn inventory back into
cash. In early 1990’s many distributor recognize that they needed help controlling and managing
their largest asset inventory. In response to this need several companies developed
comprehensive inventory management modules and systems. These new package include many
new features designed to help distributors effectively managed warehouse stock. But after
implementing this many distributors do not feel that they have gained control of their inventory.
3. Author:-Wolf Bagby, Managing inventory
In this study Mr.W.Bagby explains that by managing the inventory it becomes easier for the
organization to meet the profit goals, shorter the cash cycle, avoid inventory shortage, avoid
excessive carrying costs for unused inventory, and improve profitability by decreasing cash
conversion and adopt JIT system. According to this study companies need to get smart about
inventory. Boosting financial performance is another benefit that comes from better inventory
management. Infect large number of manufacturers enjoy savings and better performance by
choosing the approach of inventory reduction. For this company needs to maximize the cash
flow and profitability and this includes keeping a watchful discerning eye on charge in supply
and demand
4. Author: - Asfaque Ahmed October 12, 2004
(Article from master requirement planning and master production scheduling)
He said that most of the manufacturing company vendors have planning and scheduling product
which assume either infinite production capacity for calculating quantities of row material and
work in progress (WIP) requirements or infinite quantities of raw material and WIP materials for
calculating production capacity. There are many problems with this approach and how to avoid
these by making sure that the product you are buying indeed takes into account finite quantities
of required materials as well as finite capacities of work centers in your manufacturing facilities.
5. Author:-D.Hoopman April 7, 2003
(Article from inventory planning and optimization)
In this article he said that inventory optimization recognize that different industry have different
inventory profiles and requirements. Research has indicated that solutions are priced in a large
range from tens of thousands of dollars to millions of dollars. In this niche market sector price is
definitely not an indicator of the quality of solution, ROI and usability are paramount.
6. Author:-Silver, Edward A Dec22, 2002
(Article from production and inventory management journal)
This article considers the context of a population of items for which the assumption underlying
the EOQ derivation holds reasonably well. However as is frequently the cash in practices there is
an aggregate constraint that applies to the population as a whole. Two common forms of
constraints are:
1) The existence of budget to be allocated among the stocks of the items
2) A purchasing production facility having the capability to process at most a certain number of
replenishment per year. Because of the constraint the individual replenishment quantities cannot
be selected independently.
7. Author:- Charles Atkinson
(A study on inventory management)
In the study by Mr. Charles Atkinson, he explained the inventory management and assessment of
inventory levels. As per this study inventory management need to address two issue
Part I. How to optimize average inventory levels.
Part II. How to assess (evaluate) inventory levels.
This study tells about what the manager should do and not to do, and how much amount should
be order in one placed orders. Average inventory can be calculated by simplistic method.
Average inventory = beginning inventory +end inv/2
8. Author:-Delaunay C ,Sahin E, 2007.
A lots of work has been done but now if we want to go ahead we must have good visibility upon
this field of research. That is why we are focused on frame work for an exhaustive review on the
problem of supply chain management with inventory inaccuracies . The author said that their aim
in this work is also to present the most important criterion that allow a distinction between the
different type of managing the inventory.
CHAPTER-III
DATA ANALYSIS AND INTERPRETATION
TABLE NO. 1
3.1.1. EOQ ANALYSIS FOR THE YEAR 2009 – 10
Item
Annual unit in
tons
1537
Ordering cost
in Rs
38
Carrying cost
in Rs
1
EOQ
143
32
0.5
135
Rods
Aluminium
ingots
Copper wire
439
67
34
40
2.25
1.5
115
60
162
44
2.5
75
Nylon polymers
74
42
0.8
88
CRSS
ABS Black
122
106
36
33
1.75
1.25
70
74
CRCS Sheets,
Strips & Coils
Alu-Zinc Alloy
coated steel sheet
341
INFERENCE
The table shows the EOQ analysis for the year 2009-10. The Alu-Zinc Alloy coated steel sheet
was high EOQ, Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed
that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 1
3.1.1. EOQ ANALYSIS FOR THE YEAR 2009– 10
TABLE NO. 2
3.1.2. EOQ ANALYSIS FOR THE YEAR 2010 – 11
Item
CRCS Sheets, Strips &
Coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
CRSS
ABS Black
Annual unit in
tons
1662
Ordering cost
in Rs
38
Carrying cost
in Rs
2.5
EOQ
142
32
0.5
134
409
87
147
79
111
144
34
40
44
42
36
33
3.25
1.75
2.25
0.75
2
1.5
92
63
75
94
63
80
224
INFERENCE
The table shows the EOQ analysis for the year 2010-11. TheNylon polymers were high EOQ,
Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed that variation
in the EOQ is due to change in ordering and carrying cost.
CHART NO. 2
3.1.2. EOQ ANALYSIS FOR THE YEAR 2010– 11
TABLE NO. 3
3.1.3. EOQ ANALYSIS FOR THE YEAR 2011 – 12
Item
Annual unit in
tons
Ordering cost
in Rs
Carrying cost
in Rs
EOQ
CRCS Sheets,
Strips & Coils
2087
42
0.5
592
Alu-Zinc Alloy
coated steel sheet
143
40
0.75
123
Rods
Aluminium ingots
370
34
34
40
2.5
1.25
100
46
Copper wire
139
36
3.5
53
Nylon polymers
76
37
1.75
56
CRSS
ABS Black
105
109
38
43
2
1.5
63
79
INFERENCE
The table shows the EOQ analysis for the year 2011-12. The Aluminum ingots were high EOQ,
Rods was medium and this CRCS Sheets, Strips & Coils were low. It is observed that variation
in the EOQ is due to change in ordering and carrying cost.
CHART NO. 3
3.1.3. EOQ ANALYSIS FOR THE YEAR 2011– 12
TABLE NO. 4
3.1.4. EOQ ANALYSIS FOR THE YEAR 2012 – 13
Item
Annual unit in
tons
Ordering cost
in Rs
Carrying cost
in Rs
EOQ
CRCS Sheets, Strips
& Coils
Alu-Zinc Alloy
coated steel sheet
Zinc GalvSprng Steel
2104
44
0.5
608
66
40
0.75
83
42
35
0.8
60
Rods
Aluminium ingots
92
5274
38
42
1
2
83
470
Copper wire
Nylon polymers
135
61
36
34
1.75
2.25
74
42
CRSS
228
37
0.9
136
ABS Black
72
43
2.5
49
INFERENCE
The table shows the EOQ analysis for the year 2012-13. The Alu-Zinc Alloy coated steel sheet
was high EOQ, CRCS Sheets, Strips & Coils were medium and this Aluminum ingots were low.
It is observed that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 4
3.1.4. EOQ ANALYSIS FOR THE YEAR 2012– 13
TABLE NO. 5
3.1.5. EOQ ANALYSIS FOR THE YEAR 2013 – 14
Item
Annual unit in
tons
2447
Ordering cost
in Rs
41
Carrying cost
in Rs
0.75
EOQ
Alu-Zinc Alloy
coated steel sheet
Zinc Galv Spring
Steel
68
40
1.5
60
57
48
1
74
Rods
Aluminium ingots
114
10568
33
50
2.5
3
55
593
Copper wire
165
42
1.75
88
Nylon polymers
78
34
2.25
48
CRSS
ABS Black
225
98
36
43
3
0.75
73
106
CRCS Sheets,
Strips & Coils
517
INFERENCE
The table shows the EOQ analysis for the year 2013-14. The Alu-Zinc Alloy coated steel sheet
was high EOQ, CRCS Sheets, Strips & Coils were medium and this Aluminum ingots was low. It
is observed that variation in the EOQ is due to change in ordering and carrying cost.
CHART NO. 5
3.1.5. EOQ ANALYSIS FOR THE YEAR 2013– 14
TABLE NO. 6
3.2.1. ABC ANALYSIS FOR THE YEAR 2009– 10
Item
Order Number
of
of items
ranking
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
7.25
7.25
22.6
6.18
6.00
13.43
19.43
42.0
61.0
4
2.43
2.43
7.60
Rods
E core stack
assembly
CRSS
5
6
1.87
1.358
4.3
5.658
13.4
17.7
7
1.355
7.013
22.0
Terminal Connectors
ABS black
8
9
1.11
1.00
8.123
9.123
25.4
28.5
Nylon polymers
10
0.93
0.93
3.0
Alu-Zinc Alloy
coated steel sheet
11
0.79
1.72
5.4
Aluminium Ingots
12
0.76
2.48
7.7
Condensors
Anabond,thick board
13
14
0.25
0.24
2.73
2.97
8.5
9.3
Powder coating
materials
Rubber Bush
TOTAL
15
0.22
3.19
10
16
0.17
3.36
10.5
CRCS sheets strips
& coils
1
Others
Copper Wire
2
3
Tungsten contacts
INFERENCE
3
6
7
16
% of
items
18.75
37.50
43.75
100
% of
total
value
category
61.0
A
28.5
B
10.5
C
100
From the above table 4 items can be Rs.9.123cr and it will be graded as “B” category and 8 items
can be Rs.3.36cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 6
3.2.1. ABC ANALYSIS FOR THE YEAR 2009 – 10
TABLE NO. 7
3.2.2. ABC ANALYSIS FOR THE YEAR 2010– 11
Item
CRCS sheets
strips & coils
Copper wire
Others
Tungsten contacts
Rods
E core stack
assembly
Order
of
ranking
1
Number
of items
% of
items
Value
(Rs in
crores)
9.30
Cumulative
value (Rs in
crores)
9.30
Cumul
ative
%
25.6
% of
total
value
Category
2
3
4
5
6
3
18.75
42.4
57.7
7.18
13.06
18.92
A
25
15.42
20.99
2.60
4.74
6.87
57.70
4
6.09
5.57
2.60
2.13
2.131
24.46
B
17.74
100
C
Terminal
connectors
7
1.98
8.86
24.46
ABS black
CRSS
8
9
1.35
1.24
1.35
2.60
3.72
7.17
Nylon polymers
Aluminium ingots
Alu-Zinc Alloy
coated steel sheet
Rubber bush
Powder coating
materials
Anabond,thick
board
Condensors
10
11
12
1.05
1.01
0.80
3.66
4.67
5.48
10.09
12.88
15.11
13
14
0.25
0.23
5.73
5.97
15.80
16.46
15
0.237
6.21
17.11
0.22
6.44
17.74
TOTAL
INFERENCE
16
9
16
56.25
100
From the above table 4 items can be Rs.8.86cr and it will be graded as “B” category and 8 items
can be Rs.6.44cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 7
3.2.2. ABC ANALYSIS FOR THE YEAR 2010 – 2011
TABLE NO. 8
3.2.3. ABC ANALYSIS FOR THE YEAR 2011– 12
Item
Order of
ranking
CRCS sheets
strips & coils
Others
Copper Wire
1
Tungsten contacts
E core stack
assembly
Rods
CRSS
Nylon polymers
Terminal
Connectors
ABS black
Number
of items
% of
items
Value Cumulative
(Rs in
value (Rs
crores) in crores)
Cumu
l
ative
%
9.1
9.1
24.5
8.46
5.33
17.56
22.89
47.5
61.8
4
5
2.97
2.29
2.97
5.26
8.0
14.2
6
7
8
9
2.06
1.27
1.25
1.20
7.32
8.59
9.84
11.04
19.7
23.2
26.5
29.8
10
1.15
1.15
3.10
Alu-Zinc Alloy
coated steel sheet
11
0.76
1.91
5.16
Aluminium Ingots
12
0.42
2.33
6.3
Condensors
13
0.27
2.60
7.02
Rubber Bush
14
0.21
2.81
7.6
Powder coating
materials
Anabond,thick
board
TOTAL
15
0.20
3.01
8.13
16
0.17
3.18
8.60
2
3
3
6
7
INFERENCE
16
18.75
37.50
43.75
100
% of
total
value
Category
61.8
A
29.8
B
8.60
C
100
From the above table 6 items can be Rs.11.04cr and it will be graded as “B” category and 7 items
can be Rs.3.18cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 8
3.2.3. ABC ANALYSIS FOR THE YEAR 2011 – 12
TABLE NO. 9
3.2.4. ABC ANALYSIS FOR THE YEAR 2012– 13
Item
Order of
ranking
CRCS sheets strips
& coils
Copper Wire
Others
CRSS
E core stack
assembly
Tungsten contacts
1
Nylon polymers
ABS black
Alu-Zinc Alloy
coated steel sheet
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
11.98
11.98
36.3
5.37
2.90
2.47
2.38
17.35
2.90
5.37
7.75
52.5
8.78
16.2
23.4
2.00
9.75
29.2
7
8
9
0.878
0.875
0.84
0.878
1.753
2.593
2.6
5.3
7.8
Terminal
Connectors
Condensors
10
0.74
3.33
10.1
11
0.71
4.04
12.2
Zinc Galv Spring
steel
Rods
12
0.68
4.72
14.3
0.50
5.22
15.8
Powder coating
materials
14
0.27
5.49
16.6
Anabond,thick
board
Rubber Bush
Aluminium Ingots
15
0.25
5.74
17.4
16
17
0.17
0.12
5.91
6.03
18.0
18.3
TOTAL
INFERENCE
Number
of items
2
% of
items
11.8
2
3
4
5
6
13
4
11
17
23.5
64.7
100
% of
total
value
category
52.5
A
29.2
B
18.3
C
100
From the above table 4 items can be Rs.9.75cr and it will be graded as “B” category and 11 items
can be Rs.6.03cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO. 9
3.2.4. ABC ANALYSIS FOR THE YEAR 2012 – 13
TABLE NO. 10
3.2.5. ABC ANALYSIS FOR THE YEAR 2013– 14
Item
Order of
ranking
CRCS sheets strips
& coils
Copper Wire
Others
1
Value
(Rs in
crores)
Cumulative
value (Rs in
crores)
Cumul
ative
%
16.59
16.59
34.5
8.28
5.43
24.87
30.3
51.8
63.0
E core stack
assembly
Tungsten contacts
4
3.57
3.57
7.4
5
3.19
6.76
14.1
CRSS
ABS black
Nylon polymers
Alu-Zinc Alloy
coated steel sheet
6
7
8
9
2.96
1.26
1.18
0.95
9.72
10.98
12.16
0.95
20.2
22.8
25.0
1.98
Condensors
10
0.91
1.86
3.87
Terminal
Connectors
11
0.86
2.72
5.66
Zinc Galv Spring
steel
Rubber Bush
12
0.77
3.49
7.27
0.71
4.2
8.75
Rods
14
0.66
4.86
10.1
Powder coating
materials
Anabond,thick
board
Aluminium Ingots
15
0.327
5.187
10.8
16
0.326
5.513
11.5
17
0.29
5.803
12.0
TOTAL
2
3
13
Number
of items
3
5
9
17
% of
items
17.65
29.14
53.0
100
% of total
value
category
63
A
25
B
12
C
100
INFERENCE
From the above table 5 items can be Rs.12.16cr and it will be graded as “B” category and 8 items
can be Rs.5.803cr it will be graded as “C” category, and the remaining will be graded as ‘A’
category.
CHART NO.10
3.2.5. ABC ANALYSIS FOR THE YEAR 2013 – 14
TABLE NO. 11
3.3.1. XYZ ANALYSIS FOR THE YEAR 2009– 10
Item
Total Quantity
per year in tons
1537
Cost per unit
in Rs
47193
Value
(Rs in crores)
7.25
category
143
55300
0.79
Z
439
67
162
74
682549
3593138
8543236
9995572
42645
113840
370535
126673
20.0
0.70
0.20
1.12
1.87
0.76
6.00
0.93
1.35
0.25
0.17
1.11
Y
X
X
Z
Y
Z
Z
Y
CRSS(imported)
122
111132
1.35
Y
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
13161873
1.85
2.43
Y
106
24000
4500
35000
94701
92
550
1765
1.00
0.22
0.24
6.18
Y
Z
Z
Z
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
INFERENCE
X
From the above XYZ table 3 items will be “X” category and 6 items will be “Y” category and 7
items will be “Z” category.
CHART NO. 11
3.3.1. XYZ ANALYSIS FOR THE YEAR 2009-10
TABLE NO. 12
3.3.2. XYZ ANALYSIS FOR THE YEAR 2010– 11
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
1662
Cost per unit
in Rs
56084
Value
(Rs in crores)
9.30
category
142
56876
0.80
Z
409
87
147
79
867016
3639826
11728450
12443161
52273
116794
414920
134073
24.57
0.6
0.21
1.60
2.13
1,01
6.09
1.05
2.131
0.22
0.25
1.98
Y
X
X
Z
Y
Z
Z
Y
111
112610
1.24
Z
14598897
1.78
2.60
Y
144
250000
500000
3000000
94016
9.52
4.75
18.5
1.35
0.23
0.237
5.57
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 4 items will be “Y” category and 9
items will be “Z” category.
CHART NO. 12
3.3.2. XYZ ANALYSIS FOR THE YEAR 2010-11
TABLE NO. 13
3.3.3. XYZ ANALYSIS FOR THE YEAR 2011– 12
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2087
Cost per unit
in Rs
43600
Value
(Rs in crores)
9.09
category
143
53690
0.76
Z
370
34
139
76
969188
4083976
9714349
8575229
55806
124138
383685
165561
24
0.68
0.22
1.40
2.06
0.42
5.33
1.25
2.29
0.27
0.21
1.20
Y
X
X
Y
Y
Z
Z
Y
105
121106
1.27
Y
14303384
2.08
2.97
Y
109
10178
4679
42000
105862
203
375
2015
1.15
0.20
0.17
8.46
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 6 items will be “Y” category and 7
items will be “Z” category.
CHART NO. 13
3.3.3. XYZ ANALYSIS FOR THE YEAR 2011-12
TABLE NO. 14
3.3.4. XYZ ANALYSIS FOR THE YEAR 2012– 13
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Zinc Galv Spring Steel
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2104
Cost per unit
in Rs
56948
Value
(Rs in crores)
11.98
category
66
127715
0.84
Z
42643
92
5274
135
61
293369
3810243
7774400
9905730
162
54705
232
398485
144056
81
1.86
0.22
0.75
0.68
0.50
0.12
5.37
0.87
2.38
0.71
0.17
0.74
Z
Y
Z
X
Z
Y
Z
Z
Y
228536
108
2.47
Z
10208013
2.0
2.00
Y
72
15316
4499
20000
121588
180
557
1450
0.87
0.27
0.25
2.90
Z
Z
Z
Z
X
INFERENCE
From the above XYZ table 2 items will be “X” category and 4 items will be “Y” category and 11
items will be “Z” category.
CHART NO. 14
3.3.4. XYZ ANALYSIS FOR THE YEAR 2012-13
TABLE NO. 15
3.3.5. XYZ ANALYSIS FOR THE YEAR 2013– 14
Item
CRCS sheets strips &
coils
Alu-Zinc Alloy coated
steel sheet
Zinc Galv Spring Steel
Rods
Aluminium ingots
Copper wire
Nylon polymers
E core stack assembly
Condensors
Rubber bush
Terminal connectors
CRSS(imported)
Tungsten
contacts(imported)
ABS black (imported)
Powder coating materials
Anabond,thick board
Others
Total Quantity
per year in tons
2447
Cost per unit
in Rs
67822
Value
(Rs in crores)
16.59
Category
68
140832
0.95
Z
57
114
10568
165
78
1201237
4733033
27507867
9126536
135705
58600
275
501845
151930
30
2.0
0.26
0.944
0.77
0.66
0.29
8.28
1.18
3.57
0.91
0.71
0.86
X
Y
Z
X
Z
Y
Z
Z
Y
225
131584
2.96
Z
13641730
2.34
3.19
Y
98
22608
6726
32000
129536
145
486
1700
1.26
0.32
0.326
5.43
Y
Z
Z
Z
X
INFERENCE
From the above XYZ table 3 items will be “X” category and 5 items will be “Y” category and 9
items will be “Z” category.
CHART NO. 15
3.3.5. XYZ ANALYSIS FOR THE YEAR 2013-14
TABLE NO. 16
3.4.1. FSN ANALYSIS FOR THE YEAR 2009– 10
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 16
3.4.1. FSN ANALYSIS FOR THE YEAR 2009-10
TABLE NO. 17
3.4.2. FSN ANALYSIS FOR THE YEAR 2010– 11
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
ALU SHEET-M57S-3/4 HARD-2.15 THK
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 17
3.4.2. FSN ANALYSIS FOR THE YEAR 2010-11
TABLE NO. 18
3.4.3. FSN ANALYSIS FOR THE YEAR 2011– 12
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
INFERENCE
From the above FSN table 50 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 18
3.4.3. FSN ANALYSIS FOR THE YEAR 2011– 12
TABLE NO. 19
3.4.4. FSN ANALYSIS FOR THE YEAR 2012– 13
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
ZINC GALV SPRING STEEL
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
NON MOVING
SLOW MOVING
FAST MOVING
NON MOVING
INFERENCE
From the above FSN table 51 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 19
3.4.4. FSN ANALYSIS FOR THE YEAR 2012– 13
TABLE NO. 20
3.4.5. FSN ANALYSIS FOR THE YEAR 2013– 14
S.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
ITEMS
PAPER BOARD – 0.12 THK
IMPREGNATED PAPER – 0.40THICK
IMPREGNATED PAPER – 0.30THICK
IMPREGNATED PAPER – 0.20THICK
IMPREGNATED PAPER – 0.15THICK
POLYSTER CLOTH – 0.1
FABRIC REINFORCED LAMINATE – 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE - 0.8 THK
FABRIC REINFORCED LAMINATE – 0.8 THK
GLASS REINF EPOXY LAMINATE – 0.8 THK
PAPER BASE LAMINATE SHEET – 0.5 MM THK
PAPER BASE LAMINATE SHEET – 0.8 MM THK
LEATHEROID SHEET – 0.2 THK
ABS BLACK
ABS E.P.GRADE-NATURAL
ABS ABSTRON KU650 RED LT – 954
ABS ABSTRON KU650 GREEN LT – 953
ABS RED (SR-410)
NYLON – 6 RED
NYLON – 6 BLACK
NYLON – 6 GF 30% BLACK
NYLON – 6 GF 30% NATURAL
NYLON – PA66-BLACK
NYLON 66 – BLACK-GF 35%
NYLON 66 NATURAL GF 35%
PIGMENT ( GREEN) – PLASTIC
POLY TETRA FLURO ETHLENE SINTERED
(2”WIDTH,0.2 MICRON,VERSAPOR200R)
POLY PHENYLENE SULFIDE – BROWN
PVC FOIL – 0.4 THICK
POLY ETHELENE TUBE – ID 2”
PRE COLOURED SLIGHTLY-DARK GREY-PMMA
HOSE(BLACK) NBR-ACRYLO-NITRILR-BUT
HOSE(RED) NBR-ACRYLO-NITRILR-BUT
ALU-ZINC ALLOY COATED STEEL SHEET
CRCS SHEETS, STRIPS & COILS
CATEGORY
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
NON MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
ALU SHEET-M57S-3/4 HARD-2.15 THK
SUPER ENAMELLED ALU ALLOY WIRE-22SWG
SUPER ENAMELLED ALU ALLOY WIRE-23SWG
BRASS ROD-4.0 DIA
BRASS ROD DIA 6.35MM
BRASS SHEET –CUZN37 HALFHARD 2.0MM
COPPER FOIL GENERAL – 0.05 THK
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 22SWG
SUPER ENAMELLED COPPER WIRE – 20SWG
SUPER ENAMELLED COPPER WIRE – 23SWG
SUPER ENAMELLED COPPER WIRE – 24SWG
SUPER ENAMELLED COPPER WIRE – 26SWG
SUPER ENAMELLED COPPER WIRE – 28SWG
SUPER ENAMELLED COPPER WIRE – 31SWG
SUPER ENAMELLED COPPER WIRE – 32SWG
SUPER ENAMEL COPPER WIRE – 27SWG
SUPER ENAMEL COPPER WIRE – 22.5SWG
SUPER ENAMEL COPPER WIRE – 25SWG
PHOSPHER BRONZE – 0.8 THK
HOT DIP ZN COATED STRIP 0.8mm X 77.5mm
STEEL BAR – EN1A NON LEADED – DIA 12.0
STEEL BAR – EN1A LEADED – DIA 22.2
STEEL BAR – EN1A LEADED – DIA 25.4
STEEL BAR – EN1A LEADED – DIA 7.0
COLD DRAWN FC STEEL BAR EN1A DIA 24MM
ALUMINIUM INGOTS
E CORE STACK ASSEMBLY
CONDENSORS
RUBBER BUSH
TERMINAL CONNECTORS
CRSS
TUNGESTEN CONTACTS
POWDER COATING MATERIALS
ANABOND, THICK BOARD
ZINC GALV SPRING STEEL
OTHERS
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
FAST MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
SLOW MOVING
FAST MOVING
SLOW MOVING
NON MOVING
SLOW MOVING
FAST MOVING
NON MOVING
INFERENCE
From the above FSN table 51 items will be “Fast Moving” category and 19 items will be “Slow
Moving” category and 3 items will be “Non Moving” category.
CHART NO. 20
3.4.5. FSN ANALYSIS FOR THE YEAR 2013– 14
TABLE NO. 21
3.5.1. INVENTORY TURNOVER RATIO
Year
Sales(X)
(Rs in crores)
Average Inventory(Y)
(Rs in crores)
Ratio(x/y)
2013-14
121.67
18.39
6.61
2012-13
94.82
10.80
8.77
2011-12
96.09
10.51
9.14
2010-11
89.34
10.33
8.65
2009-10
76.22
8.91
8.55
INFERENCE
The table shows the inventory turnover ratio. The ratio was high in 2011-12(9.14), medium in
2010-11(8.65) and this ratio was low in 2013-14(6.61). It is observed that variation in the ratio is
due to change in sales. Average stock shows a steady growth during the period of 5 years. So the
company is using inventory effectively.
CHART NO. 21
3.5.1. INVENTORY TURNOVER RATIO
CHAPTER-IV
FINDINGS, RECOMMENDATIONS AND CONCLUSION
4.1. FINDINGS
? Inventory control techniques like EOQ analysis, ABC analysis, XYZ analysis, and Ratio
analysis are very significant in the manufacturing industries, in order to have a good control
and management over the large number of inventories kept in the stores.
? When we adopting EOQ technique in organization it will save more inventory cost.
? In ABC analysis 60% of items will be graded as “A” category and 25% of items classified
as “B” category and 15% of items classified as “C” category
? From the total XYZ Classification. 65 % of items classified as “X” category and 25% of
items classified as “Y” category and 10% of items classified as “Z” category.
? In FSN Classification. 40% of items classified as “Fast Moving” category and 55% of items
classified as “Slow Moving” category and 5% of items classified as “Non Moving” category.
? The inventory turnover ratio was high in 2011-12(9.14) and this ratio was low in 2013 14(6.61). It indicates the efficient management of inventory.
? This shows that an idle turnover ratio was maintained and this is considered as a positive
indicator of operating efficiency and good from the point of view of liquidity.
? Company’s aim to achieve more sale it may require huge amount of inventory in future.
? There is good relationship between company and their distributors, vendors and sales
executives.
4.2. RECOMMENDATIONS
? To maintain the Re-order level, Min-stock level and Economic order quantity, company
should consider the demand of the product. So that the total Inventory cost will be reduced.
? ‘X’ items have high stock value. The company should take special effort to reduce these
items.
? It is suggested that they can have close monitoring of receipts and issue for A class items in
order to have control of inventory.
? The company shall regulate the further procurement of inputs. System in the inventory
should be standardized.
? It has been predicted that if company is planning to achieve more sale, it may require huge
amount of inventory in future. So the company has to arrange capital to meet future
requirement.
·
? The stock of fast moving items has to be taken care, since non - availability of these stock
will lead to stock out costs. All non - moving stock can be examined and immediate dispose
of unnecessary non - moving stock can be made in order to reduce the inventory stock in
number of days.
? Proper communication should be maintained from dispatch section to store department, about
quantity wasted. Feedback about the quantity wasted will help the store department to
forecast future requirements and to focus on minimum possible waste.
4.3. CONCLUSION
Managing and controlling of inventories, i.e., say raw materials, components, spare parts,
and finished goods is very dispensable in any organization, since it forms 80% to 90% of the
working capital of the company. It is therefore, to get familiar with ways to control inventories
effectively so that there can be efficient allocation of funds. They will be in a position to reduce
investment in inventories to the optimum level and leave sufficient funds for more profitable
channels which will ultimately result in maximization of the shareholder’s wealth.
The techniques of inventory management help in determining the optimum level of
inventory as well as how much should be ordered and when it should be ordered. All these
techniques are helpful in efficient management of inventories and balancing the advantages of
holding additional inventory
BIBLIOGRAPHY
Reference Books
1. Prasanna Chandra, “Financial Management”,2008 Tata Mcgraw Hill Education, New Delhi.
2. R.K. Sharma and Sashi,K.Gupta, “Management Accounting”,2008 Kalyani Publisher.
3. I.M.Pandey,“Financial Management”,10th Edition,Vikas Publication House Pvt Ltd.
4. S.C.Kuchhal, “Financial Management”,Chaitanya Publishing House, Allahabad.
5. P.Gopalakrishnan, “Purchasing and Materials Management”, 2006 Tata McGraw Hill
Education, New Delhi.
6. DileepR.Sule, “Production Planning and industrial scheduling”, 2nd edition,2007.
7. SatishC.Ailawadi,Rakesh Singh, “Logistics Management”,2005 Prentice-Hall of India Pvt
Ltd,New Delhi.
8. R.B.Khanna,“Production and Operations Management”,2007 PHI Learning Pvt Ltd,
New Delhi.
Websites
1. www.rootsindia.com
2. www.inventory .com
3. www.investopedia.com
4. www.wisegeek.com
5. www.mbaguys.net
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