Raj Shekar Appm Project

8/13/2019 Raj Shekar Appm Project

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A STUDY ON

INVENTORY MANAGEMENT

AT

A.P.PAPER MILLS LIMITED

RAJAHMUNDRY

A project report Submitted in Partial ul!illment o!

T"e Re#uired !or t"e A$ard o! t"e De%ree o!

MASTER O &USINESS ADMINISTRATION

OAND'RA UNIVERSITY

Submitted b(M)RA*A SE+'AR

,')T)No)-./012...-34

Under t"e E5teemed Guidance o!Mr)+)&A6A +RIS'NA)7M)&)A)7

acult( in mana%ement 5tudie5)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

ADITYA INSTITUTE OF P.G STUDIES

(Approved by AICTE A!!"#"$%ed %o AU & A''red"%ed by NBA

Ad"%y$ N$)$r ADB Ro$d SURAMPALEM*+,,-,

/001*20

2


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ADITYA INSTITUTE O P)G)STUDIES

DEPARTMENT O &USINESS MANAGEMENT

( Affiliated To Andhra University)Ad"%y$ N$)$r ADB Ro$d SURAMPALEM*+,,-,E.G.D%

P3o4e56(011+//+//-,/+//+0'e##67188+888/

888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888

9ERTII9ATE

T3"5 "5 %o 'er%"!y %3$% %3e pro9e'% e4%"%#ed :INVENTORY MANAGEMENT: ;"%3

re!ere4'e %o A)P)PAPER MI66S 6IMITED7RA*A'MUNDRY "5 %3e bo4$!"de ;or< do4e

by Mr)M)RA*A SE+'AR;"%3 Re)d.4o6/01+-200/8 d=r"4) %3e per"od /001*20 "4 p$r%"$#

!=#!"##>e4% o! %3e re?="re>e4% !or %3e $;$rd o! %3e De)ree o! MASTER O &USINESS

ADMINISTRATION "4 Ad"%y$ "45%"%=%e o! P.G 5%=d"e5$!!"#"$%ed %o A4d3r$ U4"ver5"%y "5 $

re'ord o! be4e!"%ed ;or< '$rr"ed o=% by =4der >y )="d$4'e $4d 5=perv"5"o4)

Project Guide 'ead o! t"e dept)

Mr7+)&ala ;ri5"na) Mr) *)Na%endra +umar

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I 3ereby de'#$re %3$% %3e pro9e'% repor% e4%"%#ed =A STUDY ON INVENTORY

MANAGEMENT: ;"%3 re!ere4'e %o A)P)PAPER MI66S 6IMITED7 RA*A'MUNDRY

5=b>"%%ed !or %3e de)ree o! M$5%er o! B=5"4e55 Ad>"4"5%r$%"o4 "5 >y or")"4$# ;or< $4d 3$5

4o% !or>ed %3e b$5"5 !or %3e $;$rd o! $4y de)ree d"p#o>$ $55o'"$%e 53"p !e##o;53"p (or

5">"#$r o%3er %"%#e5. I% 3$5 4o% bee4 5=b>"%%ed %o $4y o%3er U4"ver5"%y or I45%"%=%"o4 !or %3e

$;$rd o! M.B.A.

Date>

Place >

,M)RA*A SE+'AR4

-


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A9+NO?6EDGEMENT

I 53o=#d %$e %o '$rry o=% %3"5 pro9e'% ;or< 5=''e55"ve#y.

I $> $#5o %3$4e>ber5 o! %3e 5%$!! !or %3e"r

I $> 3")3#y %3$4y )="de Mr)+)&ala;ri5"na M.B.A F$'=#%y "4

>$4$)e>e4% 5%=d"e5 !or 3er v$#=$b#e $dv"'e5 $4d e4'o=r$)e>e4% %3ro=)3o=% %3e 'o=r5e.

I e@pre55 >y deep 5e45e o! )r$%"%=de %o Sr" +)V)N)SIVARAM ,Or%ani@ation "ead

5ta!! o! dept)7o! INAN9E4!or 3"5


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9ONTENTS P$)e No5

9'APTER 2>

INTRODUCTION

NEED FOR THE STUDY

OBJECTIES OF STUDY

METHODOLOGY

LIMITATIONS

9'APTER ->

PROFILE OF PAPER INDUSTRY IN INDIA

9'APTER B>

PROFILE OF A.P.P.M L.T.D RAJAHMUNDRY

9'APTER 1>

THEORETICAL FRAME OR OF

INENTORY MANAGEMENT

9'APTER 0>

DATA ANALYSIS & INTERPRETATION OF INENTORY

MANAGEMENT A.P.P.M L.T.D RAJAHMUNDRY

9'APTER 3>

FINDINGS

SUGGESTIONS

&iblio%rap"(

8


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CHAPTER* IINTRODUCTION


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INTRODU9TION

Introduction to material5 mana%ement

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5=rp#=5 $4d 5$#v$)e.

9oncept o! InCentor( Mana%ement>

T3e d"'%"o4$ry >e$4"4) o! InCentor( i5 a detailed li5t85toc; o! %ood5

in t"i5) A pr$'%"'$# de!"4"%"o4 !ro> %3e >$%er"$# >$4$)e>e4% $4)#e ;o=#d be I%e>5 o!

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red 'an55man de!"4ed "4ve4%ory $5 A4 "d#e re5o=r'e o! $4y

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b=# $4d

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dep$r%>e4% $4d >$r


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Si%ni!icance o! InCentor(>

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5%o'$"4%e4$4'e 'o5% o! >$%er"$# 3$4d#"4) e?="p>e4% 53r"4


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NEED OR T'E STUDY

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;"## be #"e be%;ee4 %;o d$4)er po"4%5 o! e@'e55"ve $4d "4$de?=$%e "4ve4%ory.

T'E MA*OR DANGERS O OVER INVESTMENTS ARE> 8

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/.E@'e55"ve '$rry"4) 'o5%.

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T'E MA*OR DANGER O UNDER INVESTMENTS ARE6 *

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IMPORTAN9E> 8

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O&*E9TIVES O T'E STUDY

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,. T" 5%=dy %3e p$%%er4 o! or)$4"$%"o4 >$4$)e>e4% $4d "4ve4%ory !$'%or5 o! APPM

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1. To 5=>>$r"e $4d 5=))e5% %3e ob5erv$%"o45.

2/


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S9OPE O T'E STUDY

2. I4ve4%ory >$4$)e>e4% "5 o4e o! %3e por%$4'e o! "4ve4%ory >$4$)e>e4%.

2,


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MET'ODO6OGY

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>$4$)e>e4% #".

Secondar( Data>

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'o>p$4y re'ord5 9o=r4$#5 per"od"'$#5 o4 p$per $4d p$per prod='%5.

2-


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6IMITATIONS O T'E STUDY

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o! %3e 4$%=re o! pro9e'%"o4 pro'e55 $4d "%5 ">p#"'$%"o45 o4 "4ve4%ory $5pe'%5.

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28

CHAPTER* IIPROI6E O PAPER INDUSTRY IN INDIA


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INDUSTRY PROI6E

P$per >$ !$>"#"e5 $5 5e're%. A4d "% 3$5 bee4 "4%rod='ed by :$)$"45K ;3o #"ved "4

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Year No) o!

Mill5

In5talled 9apacit( AC%)7 9apacit(

27+0*+2 2 0.2, 10+0

270*2 ++ 0.81 2,+00

2710*12 2, 2.128 22+00

2770*72 ,/+ ,.,0- 20000

2777*/000 -08 8./0 2+/0

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d"!!ere4% %e'34"?=e5.

2


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SIE AND 9APA9ITY O PAPER INDUSTRY

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>$%er"$#5 $4d de45"%y o! >$rore %3$4 +0000 %o45

$4d =4"%5 %oo 5>$## ;"%3 $ '$p$'"%y o! 2000 %o45.

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v$r"e%"e5 o! p$per >$4=!$'%=red by I4d"$4 >"##5.

TYPES O PAPER PRODU9T

P$per "4d=5%ry 5=pp#"e5 v$r"o=5 %ype5 o! p$per bo$rd 5pe'"$# p$per %o $ 4o. o! =5e5

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>$p#"%3o p$per5 ?=o%ed p$per5 ?=o%ed bo$rd d=p#e@ bo$rd5 %r"p#e@ bo$rd5 5%r$; bo$rd5

p$per bo$rd5 #o%%ery p$per ero@ p$per de'or$%"ve p$per e%'.

PRESENT STATUS

I4 27- Gover4>e4% o! I4d"$ "4%rod='ed %3e p$per 'o4%ro# order %o re)=#$%e %3e

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b#e4d5 o! p$per $4d p$per bo$rd ;3"'3 $re 5=ppor%ed by %err"b#e de>$4d.

27


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d=r"4) 277/.

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$)r"'=#%=r$# re5"d=e5 $4d o%3er 4o4 'o4%r$ve4%"o4 r$; >$%er"$#5 3$ve bee4 e@e>p%ed !or

"4d=5%r"$# #"'e45"4) 5=b9e'%ed %o 20 '$=%"o4 $4)#e5.

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%3$4 + by ;e")3% o! p=#p >$de !or r"'e ;3e$% 5%r$;5 9=%e $4d b$))$)e >"@ o! >ore

p=#p5 o! %3e $bove >e4%"o4ed >$%er"$#5 e@e>p%ed !or e@'"5e d=%y.

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o! '=5%o>5 d=%y (/0. I4 re'e4% ye$r5 %3e Gover4>e4% "4 o%3er 'er%$"4 'o4'e55"o45 ;"%3

$ rev"e; %o 3e#p %3e "4d=5%r"e5 %o ">prove "%5 '$p$'"%y =%"#"$%"o4 $4d !"4$4'"$# #"$b"#"%y.

T3e5e "4'#=de #"ber$#"ed ">por% o! r$; >$%er"$#5 bo$rd 5$4d"4) o! d"!!ere4% v$'$4% o!

p$per .

GEOGRAP'I9A6 SPREAD O T'E INDUSTRY IN INDIA

StateT'E No) o! Mill5 In5talled 9apacit( ,TPY4

A4d3r$ Pr$de53 // -2-++0

A55$> / //0+00

B"3$r - /+000

G=9$r$% 81 7,+100

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er$#$ - /2+800

M$d3y$ Pr$de53 /2 /708+0

M$3$r$53%r$ 2 20,-+0

N$)$#$4d 2 ,,00

Or"55$ 7 /01+0

Po4d"'3erry 2 7000P=49$b , /+28/

R$9$5%3$4 2/27+

T$>"#4$d= ,2 8,7/+0

U%%$r Pr$de53 , 1010

e5% Be4)$# 21 ///800

TOTA6 1.3 32-2B-F

PAPER PROPERTIES AND USES6

U5ed "4 $ ;"de v$r"e%y o! !or>5 p$per $4d p$perbo$rd $re '3$r$'%er"ed by $ ;"de

r$4)e o! proper%"e5. I4 %3e %3o=5$4d5 o! p$per v$r"e%"e5 $v$"#$b#e 5o>e proper%"e5 d"!!er o4#y

5#")3%#y $4d o%3er5 )ro55#y. T3e "de4%"!"'$%"o4 $4d e@pre55"o4 o! %3e5e d"!!ere4'e5 depe4d

=po4 %3e $pp#"'$%"o4 o! 5%$4d$rd %e5% >e%3od5 )e4er$##y 5pe'"!"ed by "4d=5%ry $4d

e4)"4eer"4) $55o'"$%"o45 "4 %3e p$per >$ %3e !"r5% =5e5 o! p$per "4 %3e pr"4%"4) %r$de5 "% 3$5 bee4

>e$5=red "4 re$>5 or")"4$##y -10 53ee%5 (/0 ?="re5 b=% 4o; >ore 'o>>o4#y +00 53ee%5

(#o4) re$>5. T3e %er> re$> ;e")3% 'o>>o4#y 5")4"!"e5 %3e ;e")3% o! $ #o% or b$%'3 o! p$per.

S"4'e %3e pr"4%"4) %r$de5 =5e $ v$r"e%y o! 53ee% 5"e5 %3ere '$4 be 4=>ero=5 re$> ;e")3%5 !or

p$per 3$v"4) %3e 5$>e b$5"5 ;e")3%.

To de%er>"4e b$5"5 ;e")3% %3e 5$>p#e "5 bro=)3% %o e?="#"br"=> =4der 5%$4d$rd

'o4d"%"o45 (/- C or + F +0 per'e4% re#$%"ve 3=>"d"%y. T3e p$per 5pe'">e45 >=5% 'o45"5%

o! $% #e$5% 20 53ee%5 ;"%3 $ %o%$# $re$ o! 4o% #e55 %3$4 $bo=% 800 5?=$re 'e4%">e%re5 (200

5?=$re "4'3e5. S"4'e %3e proper%"e5 o! p$per '3$4)e ;"%3 >o"5%=re 'o4%e4% $## %e5%5 $re

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23/104

;ood "5 '3"pped $4d %3e4 !ed "4%o #$r)e 5%e$>*3e$%ed re!"4er5 ;3ere %3e '3"p5 $re 5?=eeed

$4d !"bre"ed be%;ee4 %;o 5%ee# d"5'5. I4 %3e )ro=4d;ood pro'e55 deb$r$y %3e4 =4der)o 5""4) %o $#%er "%5 p3y5"'$# proper%"e5 !or =5e "4 v$r"o=5

$pp#"'$%"o45.P$per $% %3"5 po"4% "5 =4'o$%ed. Co$%ed p$per 3$5 $ %3"4 #$yer o! >$%er"$# 5='3 $5

'3"4$ '#$y $pp#"ed %o o4e or bo%3 5"de5 "4 order %o 're$%e $ 5=r!$'e >ore 5="%$b#e !or 3")3*

re5o#=%"o4 3$#!%o4e 5'ree45. (U4'o$%ed p$per5 $re r$re#y 5="%$b#e !or 5'ree45 $bove 2+0 #p".

Co$%ed or =4'o$%ed p$per5 >$y 3$ve %3e"r 5=r!$'e5 po#"53ed by '$#e4der"4). Co$%ed p$per5

$re d"v"ded "4%o >$%% 5e>"*>$%% or 5"#"##*;"de de5")4 !e$%=re5 3$ve %o be 'o45"dered ;3"#e de5")4"4) $

4e; p#$4%

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'3e>"'$#5 !=e# 5%e$> $4d ;$%er.

P"pe #e4)%356S%e$> ;$%er '3e>"'$#5 $4d p=#p p"pe #e4)%35 53o=#d be >"4">=> %o

>"4">"5e %e>per$%=re #o55 $4d pre55=re #o55e5. P#$4% #$yo=% 53o=#d %$$4=!$'%=r"4) 'o5% o! p$per "% "5 o!

v"%$# ">por%$4'e %o 3$ve $ 'orre'% '3o"'e o! "4p#$4% )e4er$%"o4 $4d =%"#"%y dr$;$# o! po;er. A%

pre5e4% %3e )r"d po;er 'o5% e@'eed5 %3e "4p#$4% )e4er$%"o4 'o5% "4 >o5% o! %3e '$5e5. T3e

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200 "4p#$4% )e4er$%"o4 "5 $ be%%er op%"o4 !or >"## de5")4 'o45"der"4) %3e =%"#"%y 5'e4$r"o

ob%$"4ed "4 %3e 'o=4%ry ;"%3 "%5 v$)$r"e5 "4%err=p%"o4 "4 $v$"#$b"#"%y $4d 3")3er 'o5% o! )r"d

po;er.

PUMPS & FANS6

Over*5""4) o! p=>p5 $4d !$45 53o=#d be >"4">"5ed $4d e4er)y e!!"'"e4% p=>p5 $4d

!$45 4eed %o be 5e#e'%ed. A de%$"#ed ;r"%e*=p o4 %3e 5e#e'%"o4 $4d e4er)y 'o45erv$%"o4 $5pe'%5

%o be 'o45"dered "4 p=>p $4d !$45 $re 3")3#")3%ed "4 C3$p%er 8 $4d re5pe'%"ve#y. A

>$r)"4 o! 20 "5 'o45"dered $de?=$%e $% de5")4 5%$)e.

INSTALLATION OF VARIABLE FREQUENCY DRIVE (AC DRIVE)6

T3e 'o4'ep% o! "45%$##$%"o4 o! v$r"$b#e !re?=e4'y dr"ve (FD "5 p"'p5. I4d"$4 p$per "4d=5%ry

53o=#d $#5o e@p#ore %3e po55"b"#"%y o! "45%$##"4) FD !or d"!!ere4% e?="p>e4%.

T3e 5=))e5%ed $re$5 ;3ere FD5 '$4 be 'o45"dered "4 p$per "4d=5%ry $re $5 !o##o;5

" Re'overy Bo"#er

$ I45%$##$%"o4 o! FD !or !or'ed dr$=)3% !$45

b I45%$##$%"o4 o! FD !or "4d='ed dr$=)3% !$4

"" $53"4) S'ree4"4) $4d B#e$'3"4)

$ Rep#$'e>e4% o! eddy '=rre4% dr"ve5 ;"%3 FD !or dr=> ;$53er5 dr"ve5

b I45%$##$%"o4 o! FD !or pr">$ry 5e'o4d$ry $4d %er%"$ry 'e4%r"'#e$4er5 p=>p5 o!

=4b#e$'3edb#e$'3ed p=#p.

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25/104

' I45%$##$%"o4 o! FD !or $## d"#=%"o4 p=>p5 o! =4b#e$'3ed $4d b#e$'3ed 5e'%"o45.

""" S%o'< Prep$r$%"o4

$ I45%$##$%"o4 o! FD !or 5%o'< p=>p5 %o b#e4d"4) '3e5%

b I45%$##$%"o4 o! FD !or >$'3"4e '3e5% p=>p5

"v P$per M$'3"4e

$ I45%$##$%"o4 o! FD !or !$4 p=>p5

b I45%$##$%"o4 o! FD !or 5e'o4d$ry $4d %er%"$ry 'e4%r"'#e$4er p=>p5

' I45%$##$%"o4 o! FD !or >o=#d !$4 p=>p5

d I45%$##$%"o4 o! FD !or 5$ve*$## '#$r"!"ed ;$%er p=>p

e I45%$##$%"o4 o! d=$# 5peed >o%or5 !or 'o='3 p"% $4d pre55 p"% $)"%$%or5

! I45%$##$%"o4 o! FD !or MG >$'3"4eMF >$'3"4e 3ood !$45

) I45%$##$%"o4 o! FD !or 'o$%"4) o%or5 ;"%3 FD5

v R$; $%erRe'y'#e $%er P=>p5

$ I45%$##$%"o4 o! FD !or r$; ;$%erre'y'#e ;$%er p=>p5

v" E!!#=e4% Tre$%>e4% P#$4%

$ I45%$##$%"o4 o! FD !or roo%5 b#o;er (!or $)"%$%"o4 p=rpo5e5

b I45%$##$%"o4 o! FD !or !"4$# e!!#=e4% d"5'3$r)e p=>p5

MOTORS6

Over 5""4) o! >o%or5 %o be >"4">"5ed $4d e4er)y e!!"'"e4% >o%or5 $re %o be p#$44ed $% %3e

de5")4 5%$)e !or %3e 'o>p#e%e >"##. E4er)y e!!"'"e4% >o%or5 ;"## )"ve $ / 5$v"4) "4 %3e

e4er)y "4p=% ;3e4 'o>p$red %o %3e >o%or5 %3$% ;ere 3"%3er%o be"4) =5ed.

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26/104

INSULATION6

Proper "45=#$%"o4 o! 5%e$> #"4e5 'o4de45$%e #"4e5 d")e5%er5 p$per >$'3"4e 5"de5

b#$'< #"?=or p"p"4) $4d %$4=> 'o4de45$%e re'overy %o

">prove %3e !=e# e'o4o>y $4d $#5o red='e ;$%er 'o45=>p%"o4.

TRAPPING SYSTEM6

Se#e'%"o4 o! proper %r$pp"4) 5y5%e> 5$ve5 5%e$> 'o45"der$b#y. Se#e'%"o4 o! %r$p5 !or $

)"ve4 $pp#"'$%"o4 "5 3")3#")3%ed "4 C3$p%er -.

UTILISE NATURAL LIGHT:

T3e b="#d"4) 53o=#d be de5")4ed ;"%3 $de?=$%e 4$%=r$# #")3% %o >"4">"5e $r%"!"'"$#

#")3%"4) d=r"4) d$y %">e.U5e o! e4er)y e!!"'"e4% #$>p5 #" v$po=r

#$>p5 ;"## re5=#% "4 $ -0 red='%"o4 "4 e4er)y 4eeded !or #")3%"4).

POWER FACTOR IMPROVEMENT:

T3e po;er !$'%or "4 %3e "4d=5%ry 53o=#d be >$"4%$"4ed $% 0.7+ or be%%er %o 5$ve %3e

>$@">=> de>$4d dr$;4 !ro> %3e )r"d $4d $#5o ob%$"4 e!!e'%"ve =5$)e o! "4p#$4% )e4er$%"o4.

T3e red='ed de>$4d o4 %3e )r"d 4o% o4#y red='e5 e4er)y b"## b=% $#5o 5$ve5 %3e 4$%"o4$# )r"d

!ro> %3e ;$%%#e55 '=rre4% $4d "4're$5ed =%"#"5$%"o4 '$p$'"%y o! %3e"r e?="p>e4%. T3e '$p$'"%y

o! %3e e#e'%r"'$# e?="p>e4% "4 >"##5 "5 =%"#"5ed be%%er ;"%3 e43$4'ed po;er !$'%or. T3e 'o5% o!

"45%$##$%"o4 o! '$p$'"%or5 %o ">prove %3e po;er !$'%or $% 0.7 "5 p$"d b$'< "4 #e55 %3$4 $ ye$r.

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27/104

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CHAPTER* IIIPROI6E O A)P)P)M 6)T)D7

RA*A'MUNDRY


28/104

9OMPANY PROI6E

HISTORY: -

T3e very %3o=)3% o! 5e%%"4) =p $ p$per >"##5 $% R$9$3>=4dry ;$5 'o4'e"ved by $

re%"red !ore5% o!!"'er "4 27/2. T3e >"## ;$5 "4'orpor$%ed o4 /7 %3 J=4e 278-. T3e >"## ;$5

'o>>e4'ed "4 %3e ye$r 27/- $4d %3e 4$>e o! %3e '$r4$%"' p$per >"##5 $4d 'o>p$4y #">"%ed "4

%3e ye$r 27/7. B=% =4!or%=4$%e#y %3e !o=4der o! %3e >"## d"ed "4 27,0 $4d %3e >"## ;$5 '#o5ed.

T3e >"## 3$5 >='3 '3e?=ered 3"5%ory 5"4'e >$4y $ %">e "% ;$5 !or'ed %o re>$"4

'#o5ed "4 27,. M5 D$y$r$> $4d 5o45 %oo< over "4d=5%ry b=% 'o=#d4% 5=rv"ve $4d %3e

>$'3"4ery 'o4%"4=ed %o be "d#e %"## 27-/.

I4 27-/ M5 Ap%e $4d 5o45 %oo< over %3e >$4$)e>e4% o! %3e >"##5. U4!or%=4$%e#y %3e

>"## ;$5 $)$"4 '#o5ed "4 27-8 =#%">$%e#y "4 %3e ye$r 27+, %3e Gover4>e4% o! A4d3r$

Pr$de53 %oo< over %3e >"## $4d 5%$r%ed r=44"4) %"## 27+1.

I4 %3e ye$r 27+1 %3e p#$44"4) 'o>>"55"o4 de'"ded %o e@p$4d !$'%ory by "4ve5%"4) #o$4

o! /, 'rore5 %3ro=)3 Fre4'3 Gover4>e4%. A% %3$% %">e %3e '$p$'"%y o! %3e >"## ;$5 $ro=4d %e4

%o45 per d$y ;3"'3 'o=#d 4o% be $'3"eved %"## "% ;$5 %$$4$)e>e4%.

T3e 5%$%e )over4>e4% de'"ded %o '$## $4d e@per"e4'ed p$per >$4=!$'%=r"4) !ro> %3e

pr"v$%e 5e'%or $4d 3$4ded over 5o>e o! %3e> 'o45e?=e4%#y. T3e pre5e4% >$4$)e>e4% %oo"## $4d e4%ered "4 %o %3e p"'%=re.

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O4 %3e 22%3J=#y 278- %3e >"## ;$5 %r$45!erred %o pre5e4% >$4$)e>e4%. I% "5 o4e o! %3e

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pro>o%er5.

T3e 4e; >$4$)e>e4% 3$5 deve#oped %3e >"## prod='%"o4 '$p$'"%y !ro> >ere ,0 %o45

per d$y %o $4 e4or>o=5 ,+000 %o45 per $44=> "4 "%5 !"r5% p3$5e e@p$45"o4 $4d 'o>p#e%ed

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o! >"##5 "4 v$r"o=5 ;$y5 4o; "%5

L"'e45e '$p$'"%yQ 2---- MTYe$r

I45%$##ed '$p$'"%yQ71+00 MTYe$r

A4 $dd"%"o4$# '$p$'"%y o! ++000 ;$5 $dded "4 /000*/002 %3ro=)3 $'?="5"%"o4 o!

'o$5%$# p$per5 #%d >$"## "4 R$9$3>=4dry $4d U4"%6

Co$5%$# P$per5 "5 $ re'y'#ed $4d A)ro B$5ed p$per >"## #o'$%ed $% M$d3$v$r$y=d= P$#e>

$bo=% /0 M5 !ro> R$9$3>=4dry.

PRODU9T PROI6E>

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%e@%"#e %=be5 $4d 'o>e5 >$4=!$'%=re5 b$%%ery 9$'$4=!$'%=re5 !o"# #$>"4$%or5 #$be#

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pr"4%er5 'o>p=%er 5%$%"o4$ry >$4=!$'%=re5 >=#%" 'o#or pr"4%"4) 3o=5e5 'op"er =4"%5 $5 ;e## $5

o%3er =5er5 "4 %3e p$per 'o4ver%"4) $4d pr"4%"4) "4d=5%r"e5.

MANUA9TURING> 8

T3ere $re !"ve p$per >$'3"4e5 3$v"4) >$4=!$'%=r"4) '$p$'"%y r$4)"4) !ro> 20TPD %o

2/0 TPD >$4=!$'%=r"4) d"!!ere4% )r$> $)e5 o! p$per r$4)"4) !ro> /1 %o /+0 GSM.

To >ee% %3e p=#p re?="re>e4% APPM 3$5 $4 "4%e)r$%ed p=#p >"## ;"%3 %3ree '3"pper5

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'$p$'"%"e5 e$'3. APPM $dop%5 r$!% (5=#p$3$%e p=#p"4) pro'e55.

P=#p 5'ree4"4) $4d ;$53"4) "5 '$rr"ed %3ro=)3 >oder4 e4er)y e!!"'"e4% be#% ;$53"4)

5y5%e> o! ,/0 TPD '3e>"*;$53er. B#e$'3"4) o! p=#p "5 '$rr"ed "4 %;o 5%ree%5 o! b#e$'3 p#$4%5

o! 2+0 TPD '$p$'"%"e5 e$'3. T3e b#e$'3"4) 5e?=e4'e $dop%ed "5 CEPHD "4 o4e b#e$'3 p#$4%

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$4d 18* 2 br")3%4e55 p=#p5.

T3e 'o>p$4y 3$5 $de?=$%e "4!r$5%r='%=re v". $%er %re$%>e4% p#$4% bo"#er 3o=5e $4d

%=rb"4e 3o=5e %o prov"de =4"4%err=p%ed#y %3e re?="red =%"#"%"e5 #" $4d po;er.

T3e 5od$ re'overy 5e'%"o45 re'over %3e 'ooe5 e>p3$5""4).

,.Co45erv$%"o4 o! 4$%=r$# re5o=r'e5 $4d 3e$#%3"er e4v"ro4>e4%.

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T"## /00+ !or> !ore5%ry oper$%"o45 3$ve '=>=#$%"ve#y 'overed $bo=% ,7000 3e'%$re5

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bee4 d"5%r"b=%ed %o %3e !$r>er5.

ENVIRONMENT PROTE9TION>

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%$e4%

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>$%r"@.

I4 271+ pr">$ry %re$%>e4% 5y5%e> 'o45"5%"4) o! pr">$ry '#$r"!"er5 ;$5 "45%$##ed $% $

'$p"%$# 'o5% o! R5.22/ #$'5 $4d $4 $44=$# re'=rr"4) 'o5% o! R5.8 #$'5. I4 2772 5e'o4d$ry

%re$%>e4% 5y5%e> 'o45"5%"4) o! $'%"v$%ed 5#=d)e pro'e55 ;$5 "45%$##ed $% $ '$p"%$# 'o5% o!

R5.280 #$'5 $4d $4 $44=$# re'=rr"4) 'o5% o! R5.//- #$'5 %o red='e %3e b"o#o)"'$# #o$d $4d $#5o

prov"de 4e'e55$ry b$'%er"$# '=#%=re5 !or $''o>>od$%"4) !=%=re "4're$5e "4 !#o;5.

T3e 'o>p$4y 3$5 %$"4$%e odor prob#e>

$55o'"$%ed ;"%3 $4y 'r$!% pro'e55 b$5ed p$per >"## 'o>p#e%e#y $4d "45%$##ed :NON

CONDENSABLE GASES (NCG HANDLING SYSTEMK 'o45"5%"4) o! 'o##e'%"o4

%r$45por%$%"o4 $4d "4'"4er$%"o4 o! NCG.

T3e 5y5%e> "5 :!"r5% o! "%5 e "5 de5")4ed $4d 5=pp#"ed by MS A4d

R"% H$"#5%or> Corpor$%"o4 F"4#$4d.

T3e 5y5%e> "5 "45%$##ed $% $ 'o5% o! R5.+ 'rore5. T3e 5y5%e> "5 prov"ded ;"%3 D.C.S

#o'$# "45%r=>e4%5 $#$r>5 $4d 4e'e55$ry 5$!e%y "4%er#o'


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For %3e e!!e'%"ve ">p#e>e4%$%"o4 o! e4v"ro4>e4% >$4$)e>e4% 5y5%e> $ ded"'$%ed

e4v"ro4>e4%$# '$## #$bor$%ory ;"%3 $## 4e'e55$ry 5op3"5%"'$%ed >o4"%or"4) e?="p>e4%5

"45%r=>e4%5 $4d )$d)e%5 "5 $v$"#$b#e ;"%3 ?=$#"!"ed per5o44e#.

'UMAN RESOUR9ES DEVE6OPMENT> 8

T3e 'o>p$4y 3$5 %;o ded"'$%ed %r$"4"4) 3$##5 "4 %3e pre>"5e5 $4d 'o4d='%5 re)=#$r

%r$"4"4) pro)r$>5 o4 o''=p$%"o4$# 3e$#%3 $4d 5$!e%y "4 $dd"%"o4 %o e>p#oyee deve#op>e4% $4d

4eed*b$5ed %r$"4"4) !or $## #eve#5 o! e>p#oyee.

MANAGEMENT SYSTEM H)E SMS 8

U4"%6 APPM "5 $4 ISO 70026/000

ISO2-0026 /00-&

OHSAS2110262777 'er%"!"ed 'o>p$4y.

U4"%6 CP "5 $4 ISO 7002 /000 'er%"!"ed 'o>p$4y.

O99UPATIONA6 'EA6T' 9ARE> 8

T3e 'o>p$4y 3$5 ;e## e?="pped o''=p$%"o4$# 3e$#%3 'e4%er >$4$)ed by do'%or5 $4d

p$r$>ed"'$# 5%$!! ro=4d*%3e*'#o'< $4d 3$5 %"e =p5 ;"%3 #o'$# >=#%" 5pe'"$#%y 3o5p"%$#5 $4d

%r$=>$ 'e4%er5 !or e>er)e4'"e5 $4d 3o5p"%$#"$%"o4 re?="re>e4%5..

A?ARDS>

,,


34/104

2. Be5% >$4$)e>e4% $;$rd /00-*/00+ !or o=%5%$4d"4) 'o4%r"b=%"o4 "4 %3e

>$"4%e4$4'e o! I4d=5%r"$# re#$%"o45 L$bor e#!$re $4d Prod='%"v"%y !ro>

%3e Gover4>e4% o! A4d3r$ Pr$de53.

/. Go#d $;$rd "4 %3e p$per 5e'%or !or o=%5%$4d"4) $'3"eve>e4% "4 5$!e%y >$4$)e>e4%

$;$rd by Gree4%e'3 Fo=4d$%"o45.

,. S"#ver $;$rd "4 %3e P$per Se'%or !or o=%5%$4d"4) $'3"eve>e4% "4 e4v"ro4>e4%

>$4$)e>e4% pre5e4%ed by Gree4%e'3 Fo=4d$%"o45.

-. I4 %3e Ye$r /00+*/008

&OARD O DIRE9TORS 8

L.N.BANGUR. (C3$"r>$4

Dr.N.TATA RAO

ALA BANGUR

N.SRINIASAN

R..JOSHI

,-


35/104

SURENDRA SINGH (IDBI No>"4ee

R.C.MALL (E@e'=%"ve D"re'%or

M.S.SHEETA L BANGUR (Co>>er'"$# D"re'%or

EJE9UTIVES O 9ORPORATE OI9E> 8

S=d3"r B$45$#" Pre5"de4% (F"4$4'e&C3"e! F"4$4'e O!!"'er.

P.B. N$"d= Sr."'e Pre5"de4% (Co>>er'"$#

L.M.Hoo)o4 Sr."'e Pre5"de4% (Pro9e'%5

.Geor)e T3o>$5 Sr."'e Pre5"de4% (M$r


36/104

Oper$%"o45 ('o>>er'"$#

Corpor$%e A!!$"r5

Pro9e'%5

Ge4er$# M$4$)er Ge4er$# M$4$)er

O! R$; M$%er"$#5 Co>>er'"$#

(J..J$"4

Fore5%ry A'%"v"%y O! APPM (P=r'3$5e A'%"v"%"e5

L"


37/104

Co>>=4"'$%"4) %o $ppropr"$%e #eve#5 ;"%3"4 %3e or)$4"$%"o4 %3e 4eed !or

'o4%"4=ed 'o>>"%>e4% %o ?=$#"%y.

E43$4'"4) %3e $;$re4e55 $4d 'o>pe%e4'e o! 3=>$4 re5o=r'e5 %3ro=)3

%r$"4"4) $4d deve#op>e4% pro'e55e5 $4d

E5%$b#"53"4) $4d rev"e;"4) o=r ob9e'%"ve5 !or ?=$#"%y $4d 5y4er)y ;"%3

over$## b=5"4e55 )o$#5

R.C.M$##

E@e'=%"ve D"re'%or.

D$%e60201/00+

T'E AND'RA PRADES' PAPER MI66 6IMITED)

ENVIRONMENTA6 PO6I9Y

T3e A4d3r$ Pr$de53 p$per >"##5 #">"%ed re>$"4ed %o6

2. Adop%"4) e4v"ro4>e4% !r"e4d#y $4d 4o4*po##=%"4) pro'e55e5 b$5ed o4

%e'34o*e'o4o>"' #"$b"#"%y.

/. Co>p#y"4) ;"%3 $pp#"'$b#e #e)$# $4d o%3er re?="re>e4%5 %o ;3"'3 %3e

'o>p$4y 5=b5'r"be5 re#$%ed %o e4v"ro4>e4%$# $5pe'%5.

,. Co45ev"4) '3e>"'$#5 'o$#5 #">e5%o4e po;er 5%e$> $4d ;$%er.

,


38/104

-. I>prov"4) %3e 'o>pe%e4'e o! e>p#oyee5 !or e!!e'%"ve

+. ">p#e>e4%$%"o4 o! e4v"ro4>e4%$# >$4$)e>e4% 5y5%e>.

8. Pro>o%"4) $4d prop$)$%"4) 5o'"$# $4d !or> !ore5%ry $4d

. Rev"e;"4) e4v"ro4>e4%$# per!or>$4'e per"od"'$##y !or $'3"ev"4)

'o4%"4=$# ">prove>e4%.

R.C.M$##

D$%e60220/001. E@e'=%"ve D"re'%or.

PAPER MA+ING PRO9ESS 8

T3e >$"4 'o45%$4% o! p$per "5 'e##=#o5e. I% "5 >$"4#y $v$"#$b#e "4 ;ood A)ro b$5ed

$4d ;$5%e p$per re5"d=e5 5='3 $5 BAGASSE JUTE MESTA $4d STRA 'o%%o4 %3ro=)3

e$5"#y $v$"#$b#e "4 %3e 'o=4%ry "5 %oo e@pe45"ve %o be =5ed !or prod='"4) p$per.

PRO9ESS INVO6VED IN PAPER MA+ING>

RA MATERIALS

CHIPPING

PULPING

BLEACHING

ADDITIES

,1


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REMOING ATER

FINAL PRODUCT.

1. RAW MATERIALS OF PAPER INDUSTRY: -

Paper is made up of the following raw materials

So!%;ood6 L"$$## propor%"o4 o! r$; 'o%%o4 "4 !or> o! 53or% !"ber #"4%er 'o>e5

d"re'%#y %o p$per >"##.

Co%%o4 r$)56 T3"5 )"ve5 >ore 5%re4)%3 "4 p$per or p$perbo$rd.

L"4e46 L"4e4 !"ber "5 der"ved !ro> %3e b=5% %"55=e o! %3e 5%e> o! %3e !#$@

p#$4% '=#%"v$%ed e@%e45"ve#y "4 USA RUSSIA HUNGARY FRANCE

BELGIUM $4d IRELAND.

M$4"#$6 F"ber o''=r5 "4 %3e #e$ve5 o! $ p#$4% o! %3e p#$4%$"4 !$>"#y %3$%

)ro; "4 %3e P3"#"pp"4e5 I5#$4d5.

,7


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$5%e P$per6 T3e de>$4d o! ;$5%e p$per !or >$4=!$'%=r"4) o! p$per "5

"4're$5"4) every d$y. U%"#""4) o! %3"5 ;ood red='e5 #o$d o4 de>$4d o! !re53 !"ber. Abo=%

10 o! %3e ;$5%e p$per "5 =5ed "4 %3e >$4=!$'%=re o! p$perbo$rd. S>$##*5'$#e =4"%5 depe4d

$#>o5% e4%"re#y o4 ;$5%e p$per $5 r$; >$%er"$#.

-)9'IPPING>

I4 p$per >$o5% ">por%$4%.T3e ;ood '$4 be '=% do;4

"4%o 5>$## 5e)>e4%5. T3e op%">=> 5"e o! 5e)>e4% "5 !ro> +>> %o ,+>>. Be%;ee4 %3"5 "5

'$##ed $5 5'ree4ed '3"p5. T3e 5"e o! %3e 5e)>e4% be#o; +>> "5 4o =5e!=# "% "5 '$##ed $5 d=5%

$4d %3e $bove 5"e o! ,+>> "5 $)$"4 5e4% !or re'3"pp"4).

e'o P#$4 C3"pper56

No.o! '3"pper5Q ,

C$p$'"%y (e$'3Q/+ %o45 per 3o=r

S%or$)e C$p$'"%yQ 100 Me%r"' To45

Co4vey"4)

3.PULPING6

I% "5 ob%$"4ed by re>ov"4) #")4"4 $4d o%3er ">p=r"%"e5 !ro> %3e ;ood $4d o%3er r$;

>$%er"$#5 =5ed by $ ;or


41/104

%3e %3ree !or>5. T3e 'ooboo or o%3er r$; >$%er"$# '3"p5.

T3e '3"p5 $re #o$ded "4%o $ d")e5%er $4d 'ooboo or o%3er !"ber5 $re 5ep$r$%ed !ro> o%3er =4;$4%ed "4)red"e4%5. E"%3er b$%'3

d")e5%er "5 =5ed "4 'oo or

>ore .A5 %3e '3"p p$55e5 do;4;$rd %3e 'oopre)4$%"o4 o4e ;3ere 4o% #"?=or ,-00F "5 '"r'=#$%ed %3ro=)3 %3e '3"p5 !or 3e$%"4) .T3e

$'%=$# p=#p"4) o''=r5 $% ,++0F "4 $bo=% 70 >"4=%e5 $ per"od "5 $y d"55o#ve 5o>e 3$rd ;ood5 ;"%3 d"!!"'=#%"e5 o4 %3e o%3er

3$4d %3e S=#p3$%e Pro'e55 >o5% o! %3e '3e>"'$#5 $re 'overed $4d re=5ed.

BLEACHING CHEMICALS>

-2

C3#or"4e(C

Sod"=> 3ydro@"de(E

C3#or"4e d"o@"de (D

Hydro)e4 pero@"de (P

Hypo (H

S=#p3=r d"o@"de (SO/

S=#p3=r"' $'"d

C$=5%"' 5od$

Sod"=> 5=#p3$%e


42/104

. ADDITIVES

T3e $dd"%"ve5 $re $dded %o p$per p=#p $dd"%"o4 o! !"ber5 #" 8

Ro5"4 A#=> G=> Dye5 3"%e4"4) A)e4% S%$r'3 C$=5%"' T$#'=> e%'.

!. REMOVING WATER: -

Re>ov"4) ;$%er "5 %3e be5% ">por%$4% 5%$)e !or %3"5 %3e p=#p "5 p$55ed %3ro=)3 $

r$p"d#y >ov"4) ;"re >e53 '$##ed !o=r d"4er5. T3e ob9e'%"ve "5 %o re'over 7,*7+ o! %3e

;$%er "4 %3e !"4"53ed p$per.

A5 %3e p$per !#o;5 $#o4) ;"%3 %3e ;"re >e53 $4d ;$%er "5 dr$"4ed $#o4) %3e ;$y $

d$4dy ro##er 4e$r %3e >e53 3e#p5 %o 5>oo%3 o=% %3e p$per. T3e d$4dy ro##er ;"## ">prove %3e

!or>$%"o4 o! %3e p$per ;eb by $pp#"'$%"o4 o! pre55=re. 3e4 %3e p$per re$'3e5 %3e e4d o! %3e

;"re >e53 "% "5 %r$45!erred %o $ !e#% b#$4e%$# o! !"ber 'ore.

". FINAL PRODUCT: -

-/


43/104

T3e #$5% 5%$)e $!%er %3"5 "5 53ee%"4) or ro##"4) %e5%"4) $4d p$'"'$# re'overy 5y5%e> "5 e'o4o>"'$##y

!e$5"b#e o4#y !or #$r)e p#$4%5. T3ere !ore ;"%3 %3e 5%r"'%er e4!or'e>e4% o! po##=%"o4 'o4%ro#

4or>5 by %3e Gover4>e4% o! INDIA >$4y 5>$## !"r>5 $re !"4d"4) "% d"!!"'=#% %o 'o4%"4=e

oper$%"o45.

T3e 'o5% o! prod='%"o4 !or 5>$## p$per >"## "5 3")3er %3$4 %3$% !or #$r)e >"##5. T3e

#$%er )e% %3e be4e!"% o! #o;er e4er)y 'o5%5 by =5"4) Co*)e4er$%"o4 !$'"#"%y '3e>"'$# re'y'#"4)

e%'.

T3e be4e!"% o! #o;er !"@ed 'o5% '$p"%$# 'o5% per %o4 o! "45%$##ed '$p$'"%y !or 5>$##

p$per >"##5 "5 >ore %3$4 >$de =p by 3")3er v$r"$b#e oper$%"4) 'o5% !=r%3er 5>$## =4"%5 $re

$#5o >ore po##=%"4).

PLANTS & MACHINES

ASHA MACHINE

T3"5 "5 %3e o#de5% >$'3"4e !ro> ;3"'3 %3e >"## 5%$r%5 r=44"4) ;"%3 $ '$p$'"%y o! o4e

per d$y $4d #$%er "% ;$5 deve#oped %o ,0 %o4e5 per d$y. No; %3"5 p$per >$'3"4e prod='e5 %3e

prod='% #"$4"#$.

ABHA MACHINE

-,


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T3"5 "5 $#5o o#d >$'3"4e. I% prod='e5 MG ;3"%e po5%er5 MGDP 'r$!% MG p"4< >$4

"d#e $4d MG ;3"%e po5%er5 o! GSM -1 $4d 5%$4d$rd5 o! -10 &+00.

AGRA#A MACHINE

T3"5 "5 $#5o re 'o45%r='%ed $4d 'o>p=%er"ed >$'3"4e. T3"5 "5 $#5o 3$v"4) 'o>p=%er

5'$44er $4d "% prod='ed MGP b"4d p$per 5pe'"$# MG #o;er 5pe'"$# MG #o;er p"'%=re

po5%er MG ;3"%e 'over p$per o! GSM /00 MG ye##o; 'over5 o! GSM 2/0 $4d p"4$'3"4e !=##y 'o>p=%er"ed $4d %3"5 prod='e ?=$#"%y o!

p$per $4d %3"5 prod='e5 deve#op5 >$p #"%3o 're$> 'ore SS >"'ropr"4% ;3"%e 3o=5e A4d3r$

E'o4o>"'$# 'op"e5 o! GSM 1 De#=@e 5pe'"$# $4d SS >$p #"%3o $4d %3"5 "5 3$v"4) $

prod='%"o4 '$p$'"%y o! 2/0 %o45 per d$y.

S%e$> re?="red Q 7 20 MT

Po;er Q2800 28+0 U4"%5

$%er Q2-+ 2+0 C=.M

E!!#=e4% ($5%e $%er prod='ed Q 2-0 2-+ C=.M

E#e'%r"'"%y =5ed by >"## Q 1+ Se#! Ge4er$%ed (R5. 2./0 per =4"%

2+ P=r'3$5ed (R5. -.00 per =4"%

TYPES OF PAPER PRODUCTS: -

P$per "4d=5%ry 5=pp#"e5 v$r"o=5 %ype5 o! p$perbo$rd. Spe'"$# p$per %o $ 4=>ber o! e4d

=5er5 ;3"'3 "4'#=de Gover4>e4% Ed='$%"o4 '$>p=5 p$'


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-+


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PRODU9T 96ASSII9ATION O INDIAN PAPER INDUSTRY

INDIAN PAPER INDUSTRY

Paper and paper board Ne$5paper

STANDARD GISSED

9ultural Indu5trial &oard Specialt(

?ritin% Printin% ?rappin% Pac;in%

Cre$> >ove M$p #"%3o o!! 5e% Po5%5 r$!%

A=re #$"d P3o%o'op"er Te$ Ye##o;5 Med"$

Cre$> #$"d Cover M$r#$ L"4er

Bo4d Co#or pr"4% APSR S$'< r$!%

Bo4d D=p#"'$%e

S%r$; Bo4d

M"## M"'ro

Grey T"55=e

Bro;4 A"r >$"#

D=p#e@ G#$55"4e

F"#e T;"5% r$p

Tr"p#e@ P=#p

-8


47/104


-

CHAPTER* I

T'EORETI9A6 RAME ?OR+ O



48/104

INTRODU9TION> 88

I4ve4%ory "5 'o>po5ed o! $55e%5 %3$% ;"## be 5o#d "4 !=%=re "4 %3e 'o=r5e o! B=5"4e55

oper$%"o45. T3e $55e%5 ;3"'3 !"r>5 5%ore $5 "4ve4%ory $4%"'"p$%"o4 o! 4eed5 $re

2. R$; M$%er"$#

/. or< I4* Pro'e55

,. F"4"53ed Good5

T3e r$; >$%er"$# "4ve4%ory 'o4%$"45 "%e>5 %3$% $re p=r'3$5ed by %3e !"r> !ro> o%3er5

$4d $re 'o4ver%ed "4%o !"4"53ed )ood5 %3ro=)3 %3e >$4=!$'%=r"4) pro'e55. T3ey $re $4

">por%$4% "4p=% o! %3e !"4$# prod='%. T3e "4ve4%ory >$4$)e>e4% #"$4$)e>e4% o! o%3er

'=rre4% $55e%5 53o=#d be re#$%ed %o %3e over $## ob9e'%"ve o! %3e !"r> (ob9e'%"ve "5 >$@">""4)

%3e o;4er5 ;e$#%3.

Basic concepts to control the inventory:

2. De%er>"4$%"o4 o! %3e %ype o! 'o4%ro# re?="red.

/. E'o4o>"' order ?=$#"%y.

,. Reorder po"4%.

-. S$!e%y 5%o' 8

I4ve4%ory 53o=#d be %=r4ed over $5 ?="'e

e45=re 5=!!"'"e4% I4ve4%or"e5 %o 5$%"5!y prod='%"o4 $4d 5$#e5 de>$4d.

-1


49/104

To $vo"d %3e Bre$< do;4 5"%=$%"o45.

T3e ob9e'%"ve o! "4ve4%ory >$4$)e>e4% 'o45"5%5 o! %;o 'o=4%er b$#$4'"4)

p$r%5.

2. To >"4">"e %3e !"r>5 "4ve5%>e4%5 "4 "4ve4%ory.

/. To >ee% $ de>$4d !or %3e prod='% by e!!"'"e4%#y or)$4""4) %3e !"r>5 prod='%"o45 $4d 5$#e5

oper$%"o45.

A4 op%">=> #eve# o! "4ve4%ory 53o=#d be de%er>"4ed o4 %3e b$5"5 o! %3e %r$de*o!!

be%;ee4 'o5%5 $4d be4e!"%5 $55o'"$%ed ;"%3 %3e #eve#5 o! "4ve4%ory.

HOLDING INVENTORY (M$%$$' * +,): -

T3e 'o5% $55o'"$%ed ;"%3 "4ve4%ory !$## "4%o %;o '$%e)or"e5.

2. Order"4) A'?="5"%"o4 Se%=p 'o5%5.

/. C$rry"4) 'o5%.

2) ORDERING 9OST6 *

F"r>5 3$ve %o p#$'e order5 ;"%3 5=pp#"er5 %o rep#e4"53 "4ve4%ory o! r$; >$%er"$#5.

T3e order"4) 'o5%5 "4vo#ved "4

$ Prep$r"4) $ p=r'3$5e order re?="5"%"o4.

b Re'e"v"4) I45pe'%"4) $4d Re'ord"4) %3e )ood5 re'e"ved %o e45=re bo%3

?=$4%"%y $4d ?=$#"%y.

T3e 'o5% o! $'?="r"4) >$%er"$#5 'o45"5%5 o! '#er"'$# 'o5%5 $4d 'o5%5 o!

5%$%"o4$ry.

-) 9ARRYING 9OST> 8

-7


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A'?="5"%"o4 o! $ #$r)er ?=$4%"%y ;o=#d "4're$5e %3e 'o5% $55o'"$%ed ;"%3 %3e

>$"4%e4$4'e o! "4ve4%ory "4 '$rry"4) 'o5%. T3e 'o5% o! 3o#d"4) "4ve4%ory >$y be d"v"ded "4%o

%;o '$%e)or"e5.

A Ari5e due to 5torin% t"e inCentor(> 88

T3e >$"4 'o>po4e4%5 o! %3e '$%e)ory o! '$rry"4) 'o5%5 $re

a4Stora%e co5t> 8 T3$% "5 %$@ depre'"$%"o4 "45=r$4'e >$"4%e4$4'e o! %3e b="#d"4) $4d =%"#"%"e5.

b4I45=r$4'e o! %3e "4ve4%ory $)$"45% !"re $4d %3e!%.

c4 De%er"or$%"o4 "4 "4ve4%ory be'$=5e o! p"#!er$)e !"re %e'34"'$# ob5o#e5'e4'e 5%y#e

ob5o#e5'e4'e $4d pr"'e de'#"4e.

d4 SerCin% co5t5> 8

S='3 $5 #$bor !or 3$4d#"4) "4ve4%ory '#er"'$# $4d $''o=4%"4) 'o5%5.

&4 T"e opportunit( co5t o! !und5 K inancial co5t K 9omponent o! t"e co5t >8

T3"5 'o45"5%5 o! e@pe45e5 o! "4 r"5"4) !=4d5 ("4%ere5% o4 '$p"%$# %o !"4$4'e %3e

$'?="5"%"o4 o! "4ve4%ory.

I! %3e #eve# o! "4ve4%ory "4're$5e5 %3e '$rry"4) 'o5%5 $#5o "4're$5e $4d v"'e ver5$. T3e

5=> o! %3e order $4d '$rry"4) 'o5%5 repre5e4%5 %3e %o%$# 'o5% o! %3e "4ve4%ory

.

&ENEITS O 'O6DING INVENTORY >8

I4ve4%or"e5 per!or> 'er%$"4 b$5"' !=4'%"o45 ;3"'3 $re o! 'r='"$# ">por%$4'e "4 %3e

!"r>5 prod='%"o4 $4d >$r


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T3e b$5"' !=4'%"o4 o! "4ve4%or"e5 "5 %o $'% $5 $ b=!!er $'%"v"%y o! $ !"r> 5o %3$% $## do

4o% 3$ve %o be p=r5=ed $% e@$'%#y %3e 5$>e r$%e.

T'E +EY A9TIVITIES ARE> 8

P=r'3$5"4).

Prod='%"o4.

Se##"4).

I! "4 %3e 53or% %er> %3ey $re r")"d#y re#$%ed %3e %3ree "% 53or% r=4 re#$@$%"o4 5o %3$% e$'3 $'%"v"%y >$y be p=r5=ed

e!!"'"e4%#y.

I4ve4%or"e5 e4$b#e !"r>5 "4 %3e 53or% r=4 %o prod='e $% $ r$%e )re$%er %3$4 p=r'3$5e o!

r$; >$%er"$#5 $4d v"'e ver5$ or %o 5e## $% $ )re$%er %3$4 prod='%"o4 $4d v"'e ver5$.

T3e e!!e'%5 o! >$"4%$"4"4) "4ve4%ory (=4'o=p#"4)

1. BENEFITS IN PURCHASING: -

$ A !"r> '$4 p=r'3$5e b=#< ?=$4%"%"e5 %3$4 "5 ;$rr$4%ed by =5$)e "4 prod='%"o4 or 5$#e5 #eve#.

T3"5 ;"## e4$b#e "% %o $v$"# o! d"5'o=4%5 %3$% $re $v$"#$b#e o4 b=#< p=r'3$5e. I% ;"##

#o;er %3e order"4) 'o5% $5 !e;er $'?="5"%"o45 ;o=#d be >$de (S$v"4) "4 'o5%. b F"r>5 '$4

p=r'3$5e )ood5 be!ore $4%"'"p$%ed or $44o=4'ed pr"'e "4're$5e5. T3"5 ;"## #e$d %o $ de'#"4e "4

%3e 'o5% o! prod='%"o4.

. BENEFITS IN PRODUCTION: -

Prod='%"o4 '$4 be '$rr"ed o4 $% $ r$%e 3")3er or #o;er %3$4 %3e 5$#e5 r$%e. T3"5 ;o=#d

be o! 5pe'"$# $dv$4%$)e %o !"r>5 (%o !"@ ;"%3 5e$5o4$# 5$#e5 p$%%er.

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T3e 5$#e5 r$%e ;"## be 3")3er %3$4 %3e prod='%"o4 r$%e d=r"4) $ pe$< 5e$5o4 $4d #o;er

d=r"4) %3e o!!*5e$5o4. T3e !"r> "5 e"%3er %o prod='e $% $ #eve# %o >ee% %3e $'%=$# de>$4d ".e.

3")3er prod='%"o4 d=r"4) pe$< 5e$5o4 $4d #o;er prod='%"o4 d=r"4) o!! 5e$5o4 or prod='e

'o4%"4=o=5#y %3ro=)3o=% %3e ye$r $4d b="#d =p "4ve4%ory ;3"'3 ;"## 5o#d d=r"4) %3e per"od o!

5e$5o4$# de>$4d.

3. BENEFITS IN SALES: -

T3e >$"4%e4$4'e o! "4ve4%ory $#5o 3e#p5 !"r>5 %o e43$4'e "%5 5$#e5 e!!or%5.

$ I! %3ere $re 4o "4ve4%or"e5 o! !"4"53ed )ood5 %3e #eve# o! 5$#e5 ;"## depe4d =po4 %3e #eve#

o! '=rre4% prod='%"o4. A !"r> ;"## 4o% be $b#e %o >ee% de>$4d "45%$4%$4eo=5#y.

b I! %3e !"r> 3$5 "4ve4%ory $'%=$# 5$#e5 ;"## 4o% 3$ve %o depe4d o4 #e4)%3y >$4=!$'%=r"4)

pro'e55. T3=5 "4ve4%ory 5erve5 %o br"d)e %3e )$p be%;ee4 %3e '=rre4% prod='%"o4 $4d $'%=$#

5$#e5.

' T3e "4ve4%ory "4 ;ore%. O4 %3e o%3er 3$4d by 3o#d"4) $

#$r)e "4ve4%ory %3e '3$4'e5 o! d"5r=p%"o4 o! oper$%"o45 $re red='ed b=% %3e 'o5% ;"## "4're$5e.

TE9'NIHUES> 8

T3e >$9or prob#e> $re$5 %3$% 'o>pr"5e %3e 3e$r% o! "4ve4%ory 'o4%ro# $re.

24 96ASSII9ATION PRO&6EM ,A&9 ANA6YSIS4> 8

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T3e ABC 5y5%e> "5 $ ;"de#y =5ed '#$55"!"'$%"o4 %e'34"?=e %o "de4%"!y v$r"o=5 "%e>5 o!

"4ve4%ory !or p=rpo5e o! "4ve4%ory 'o4%ro#.

T3"5 %e'34"?=e "5 b$5ed o4 %3e $55=>p%"o4 %3$% $ !"r> 53o=#d 4o% e@er'"5e %3e 5$>e

de)ree o! 'o4%ro# o4 $## "%e> o! "4ve4%ory o4 %3e b$5"5 o! 'o5% "4vo#ved %3e v$r"o=5 "4ve4%ory

"%e>5 $re '$%e)or"ed $5

:AK '$%e)ory "%e>5.

:BK '$%e)ory "%e>5.

:CK '$%e)ory "%e>5.

T3e "%e>5 "4'#=ded "4 )ro=p :AK "4vo#ve %3e #$r)e5% "4ve5%>e4%. T3ere !ore

"4ve4%ory 'o4%ro# 53o=#d be %3e >o5% r")oro=5 $4d "4%e45"ve $4d %3e >o5% 5op3"5%"'$%ed

"4ve4%ory 'o4%ro# %e'34"?=e5 53o=#d be $pp#"ed %o %3e5e "%e>5.

T3e !"r> 53o=#d d"re'% >o5% o! "%5 "4ve4%ory 'o4%ro# e!!or%5 %o %3e "%e>5 "4'#=ded "4

%3"5 )ro=p. T3e "%e>5 'o>pr"5"4) :BK )ro=p $''o=4% !or /0 o! "4ve5%>e4%5 "4 "4ve4%ory.

T3ey de5erve #e55 $%%e4%"o4 %3$4 :AK b=% >ore %3$4 :CK ;3"'3 "4vo#ve5 o4#y 20 o! %3e %o%$#

v$#=e $#%3o=)3 4=>ber ;"5e "%5 53$re "5 $5 3")3 $5 ++.

ADVANTAGES: -

2. E$5y $##o'$%"o4 o! !=4d5 %o d"!!ere4% "%e>5 "4 $4 or)$4"$%"o4.

/. E$5y '#$55"!"'$%"o4 o! "%e>5 $''ord"4) %o pr"or"%y 5")4"!"'$4'e.

,. I% e45=re5 '#o5er 'o4%ro# o4 'o5%#y "%e>5 "4 ;3"'3 #$r)e $>o=4% o! '$p"%$# 3$5

bee4 "4ve5%ed.

-. I% 3e#p5 "4 deve#op"4) $ 5'"e4%"!"' >e%3od o! 'o4%ro##"4) "4ve4%or"e5 '#er"'$#

4o% '$4 be red='ed $4d 5%o'< "5 >$"4%$"4ed $% op%">=> #eve#.

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ORMU6A>

A44=$# =5$)e v$#=e Q De>$4d or @ U4"% Pr"'e

Co45=>ed "%e>5

6IMITATIONS> 8

2. ABC $4$#y5"5 "4 order %o be !=##y e!!e'%"ve 53o=#d be '$rr"ed o=% ;"%3 5%$4d$rd"$%"o4

$4d 'od"!"'$%"o4.

/. I% "4d"'$%e5 4o%3"4) $bo=% pro!"%$b"#"%y $4d 'r"%"'$#"%y.

,. ABC $4$#y5"5 53o=#d be rev"e;ed per"od"'$##y 5o %3$% '3$4)e5 "4 pr"'e $4d

'o45=>p%"o4 $re %$$##V Or 53o=#d %3e

+-


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re?="re>e4% o! >$%er"$#5 d=r"4) $ )"ve4 per"od o! %">e "4 "45%$##>e4%5 or "4 5ever$# 5>$##

#o%5V S='3 "4ve4%ory prob#e>5 $re '$##ed order ?=$#"%y prob#e>5.

B=y"4) %3e #$r)e ?=$4%"%"e5 ">p#"e5 $ 3")3er $ver$)e "4ve4%ory #eve# ;3"'3 ;"## $55=re

2. S>oo%3 prod='%"o4 or 5$#e5 oper$%"o45 $4d

/. Lo;er order"4) or 5e% =p 'o5%5. B=% "% ;"## "4vo#ve 3")3er '$rry"4) 'o5%. T3e op%">=>

#eve# o! "4ve4%ory "5 pop=#$r#y re!erred %o $5 %3e EOW (E'o4o>"' Lo% S"e.

ASSUMPTIONS> 8

2. T3e !"r> =5e5 "4ve4%ory "5 5%e$dy over %">e.

,. T3e order5 p#$'ed %o rep#e4"53 "4ve4%ory 5%o'ed #"4e$r#y re#$%ed %o 4=>ber o! order5.

T3e ?=$4%"%y %o be ordered depe4d5 =po4 %;o !$'%or5 ".e.

2. T3e $'?="5"%"o4 'o5%.

/. T3e 'o5% pro'e55"4) >$%er"$#.

ORMU6A>

EOW Q /$b

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CS

EOW Q E'o4o>"' Order W=$4%"%y

$ Q A44=$# Co45=>p%"o4

b Q B=y"4) Co5% Per Order

C Q Co5% Per U4"%

S Q S%or$)e $4d C$rr"$)e Co5%5

B4 RE8ORDER 6EVE6 ,POINT4 >8

Re*order #eve# "5 >$"4#y depe4d"4) o4 #e$d de>$4d. I% >$y be de!"4ed $5 %3$% #eve# o!

"4ve4%ory ;3e4 !re53 order 53o=#d be p#$'ed ;"%3 %3e 5=pp#"er5 !or prod='"4) $dd"%"o4$#

"4ve4%ory e?=$# %o %3e EOW. T3"5 #eve# #"e5 be%;ee4 %3e >"4">=> #eve# $4d >$@">=> #eve#.

Le$d %">e >e$45 "% "5 %3e )$p be%;ee4 p#$'"4) $4 order $4d %">e o! $'%=$# 5=pp#y.

6EAD TIME > Serv"'"4) %">e De#"very %">e

Re'e"v"4) %">e

RE8ORDER 6EVE6 >

Le$d *%">e "4 d$y5 Aver$)e d$"#y =5$)e

o! "4ve4%ory.

ASSUMPTIONS >8

2. Co45%$4% d$"#y =5$)e o! "4ve4%ory.

/. F"@ed #e$d*%">e.

a4 Minimum leCel>

+8


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I% "5 %3e #eve# be#o; ;3"'3 5%o'< o! >$%er"$#5 "5 4ever %o !$"#.

Nor>$# Nor>$#

M"4">=> #eve# Q Reorder #eve# 'o45=>p%"o4 reorder

#eve#

b4 Ma

I% "5 %3e 5%o'< #eve# $bove ;3"'3 5%o'< 53o=#d 4o% be $##o;ed %o r"5e.

Reorder Reorder X M"4">=> M"4">=>

M$@">=> #eve# Q #eve# ?=$4%"%y 'o45=>p%"o4 reorder

per"od

c4 Dan%er leCel>

D$4)er #eve# "5 be#o; %3e >"4">=> ?=$4%"%y. I% "5 $ #eve# $% ;3"'3 4or>$# "55=e

o! %3e >$%er"$# $re 5%o'er)e4'y

D$4)er #eve# Q o! 'o45=>p%"o4 5=pp#y %">e

d4 ACera%e 5toc; leCel>

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M"4">=>

Aver$)e 5%o'< #eve# Q 5%o'< #eve# Order ?=$4%"%y

14) SAETY STO9+ ,&UER STO9+4> 8

T3e e!!e'% o! "4're$5ed =5$)e $4d 5#o;er de#"very ;o=#d be $ 53or%$)e o! "4ve4%ory.

T3$% "5 %3e !"r> ;o=#d !$'e $ 5%o'< o=% 5"%=$%"o4. I% ;o=#d d"5r=p% %3e prod='%"o4 5'3ed=#e

$4d $#"e4$%e %3e '=5%o>er5.

T3ere !ore be ;e## $dv"5ed %o $r)"4 by 3$v"4) $dd"%"o4$#

"4ve4%ory %o )=$rd $)$"45% 5%o'< o=% 5"%=$%"o4. S='3 5%o' %3e 5%ore5. T3e5e 9ob5 or ;or< order5 $re '3$4)ed

;"%3 %3e v$#=e o! >$%er"$#5 "55=ed %o %3e>. B=% %3e 5%o'< o! >$%er"$#5 'o45"5%5 o! d"!!ere4%

'o45")4>e4%5 re'e"ved $% d"!!ere4% d$%e5 $ pr"'e. I% be'o>e 4e'e55$ry %o de'"de $bo=% %3e

pr"'e5 ;3e4 >$%er"$#5 $re "55=ed %o "%.

MET'ODS>

F"r5% I4 F"r5% O=%.

L$5% I4 F"r5% O=%.

+1


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B$5e S%o' 8

T3e "55=e5 $re pr"'ed "4 order o! p=r'3$5e >$%er"$# re'e"ved !"r5% "5 "55=ed !"r5%. T3e

o#de5% pr"'e "5 $pp#"ed !"r5% %o v$#=e %3e "55=ed >$%er"$#. 3e4 %3e >$%er"$# 3$v"4) %3e o#de5%

pr"'e "5 !=##y e@3$=5%ed. T3e 4e@% o#de5% pr"'e "%e>5 $re "55=ed $4d %3e 'orre5po4d"4) pr"'e

$re =5ed "4 v$#=$%"o4.

T3e >e%3od "5 5">p#e $4d e$5y %o $pp#y "4 pr$'%"'e "%.

T3ere "5 $ p#$'e !or '#er"'$# error5 "4 !re?=e4% pr"'e !#='%=$%"o45.

ADVANTAGES> 8

I. M$%er"$#5 $re "55=ed $% $'%=$# 'o5% 3e4'e b$#$4'"4) o! 5%ore5 #ed)er be'o>e5 e$5y

4=>ber. Ad9=5%>e4% !or pro!"% or #o55e5 "5 4e'e55$ry o4 $''o=4% o! $rb"%r$%ory

v$#=$%"o4 o! >$%er"$#.

II. Me%3od "5 $ppropr"$%e !or %3o5e "%e>5 %3$% $re #"


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I. I55=e pr"'e o! %3e 5$>e "%e> >$y be d"!!ere4% "! =5ed by d"!!ere4% dep$r%>e4%5 $4d

=5ed !or d"!!ere4% #o%5.

II. For pr"'"4) o4e re?="5"%"o4 >ore %3$4 o4e pr"'e 3$5 o!%e4 %o be $dop%ed.

III. 3e4 %3e pro'e55e5 $re !#='%=$%ed %3e e!!e'% o! '=rre4% >$r 8

A pr"'e ;3"'3 "5 '$#'=#$%ed by d"v"d"4) %3e %o%$# 'o5% o! >$%er"$# "4 %3e 5%o'< !ro>

;3"'3 %3e >$%er"$#5 'o=#d be dr$;4 by %3e %o%$# ?=$4%"%y o! %3e >$%er"$#5 "4 %3$% 5%o'*

T3"5 "5 $4o%3er "4ve4%ory 'o4%ro# repor% ;3"'3 )"ve5 %3e de%$"#5 o! >ove>e4% o! %3e

"%e>5 b$5ed o4 %3e repor%. T3e >$4$)e>e4% '$4 >$5 ;3"'3 $re 4o% #"ov"4) or S#o; >ov"4) or No4*>ov"4) %ypeK. T3e de!"4"%"o4 o! F S N "%e>5 $re %3e

4=>ber o! "55=e5 "4 $ )"ve4 per"od '$4 be dy4$>"'$##y '3$4)ed.

B"4 >e$45 $ r$'< 'o4%$"4er or 5p$'e ;3e4 )ood5 $re $"4%$"4ed. A B"4 '$rd "5 $ ?=$4%"%$%"ve re'ord o!

Re'e"p%5 I55=e5 $4d '#o5"4) b$#$4'e o! e$'3 "%e> o! 5%ore5. T3e B"4 '$rd5 $re =5ed 4o% o4#y

!or e4%er"4) re'e"p%5 $4d "55=e5 b=% $#5o !or 'o4%ro##"4) %3e 5%$'< by ;$%'3"4) >$@">=> $4d

>"4">=> #eve# 5%$%ed o4 %3e '$rd.

80


61/104

3e4 %3e order"4) #eve# "5 re$'3ed %3e 53op45. I% 53o=#d $)ree ;"%3 %3e p3y5"'$# "4 B"4 '$rd 5%ore5 #ed)er $''o=4%.

9ONTRO6S O PRODU9TION AND SERVI9E PROVISION

PRO9EDURE OR ISSUE O MATERIA6 TO USER DEPARTMENTS

Purpo5e6 To de!"4e %3e >e%3od !or "55=e o! >$%er"$# !ro> b"45 5%ore5 $re$ or 5%or$)e y$rd %o

=5er dep$r%>e4%5.

Met"od 6

2. M$%er"$# 53o=#d be dr$;4 by %3e =5er dep$r%>e4%5 !or> 5%ore5 $)$"45% 5%ore5 "55=e

vo='3er5 (SIR5 d=#y 5")4ed by $=%3or"ed per5o4.

82


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/. S%ore5 "55=e5 vo='3er5 53o=#d 'o4%$"4 de5'r"p%"o4 o! %3e >$%er"$# 'o5% 'e4%er 'ode

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dep$r%>e4%5.

,. A## >$%er"$#5 53o=#d be "55=ed o4 FIFO b$5"5 e@'ep% "4 '$5e o! $4y 5pe'"!"'

re?="re>e4%5 !or> %3e =5er dep$r%>e4%5.

-. I55=e o! >$%er"$# 53o=#d be do4e o4#y !or>*$''ep%ed >$%er"$# #y"4) "4 5%ore5.

+. T3e 'o4'er4ed 5%ore5 5e'%"o4 3e$d $re $=%3or"ed %o "55=e M$%er"$# $)$"45% (SIR5

8. I4 '$5e o! p$r%"'#e or 4o4*$v$"#$b"#"%y o! %3e re?="5"%"o4ed >$%er"$# "%e>5 %3e

'o4'er4ed 5e'%"o4 3e$d 53o=#d be "4%">$%ed %3e re?="5"%"o4"4) $=%3or"%y $''ord"4)#y.

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1.T3e >$%er"$# "%e>5 "55=ed 53o=#d be =pd$%ed o4 %o %3e 'o>p=%er 5y5%e> by

'o4'er4ed 5%ore5 $55"5%$4%5 or '#erp$4y5 ;or< 53o=#d be "55=e

$5 per %er>5 o! %3e 'o4%r$'% $4d $4 $ppropr"$%e5 SIR $)$"45% proper '$53 Cred"% b"##5.

20. Co4'er4ed 5%ore5 5e'%"o4 3e$d 53o=#d >$"4%$"4 SIR5 "4 %3e 5e?=e4'e o! 'ode.

8/


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22.L"5% o! per5o4$# $=%3or"ed %o re?="5"%"o4 >$%er"$# %3ro=)3 SIR 53o=#d be $5 $44e@ed

%o %3"5 pro'ed=re.

IDENTII9ATION AND TRA9EA&I6ITY

PRO9EDURE OR MATERIA6 IDENTII9ATION

Purpo5e 6

2. To de!"4e %3e >e%3od o! "de4%"!y"4) >$%er"$# 5%ored "4 v$r"o=5 5%or$)e $re$5.

/. To de!"4e %3e >e%3od o! e5%$b#"53"4) %r$'e$b"#"%y o! p=r'3$5ed >$%er"$#.

,. To de!"4e %3e >e%3od o! "de4%"!y"4) %3e "45pe'%"o4 5%$%=5 o! 5%ored >$%er"$#.

Met"od >

2. To "de4%"!y %3e v$r"o=5 5%ored >$%er"$# I4 e$'3 '$5e %3e >$%er"$# 53o=#d be

"de4%"!"ed !or "%5 N$>e $4d Code 4o .

No TYPE OF MATERIAL METHOD OF

IDENTIFICATION

02 B=#< M$%er"$# D"5p#$y Bo$rd

0/ M$%er"$# "4 B"45 T$)5 !or %3e B"45

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64/104

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0/ I45pe'%ed $4d A''ep%ed A''ep%ed

(Gree4

*

(Gree4

0, I45pe'%ed $4d Re9e'%ed Re9e'%ed

(Gree4

Re9e'%ed %$)

(P"4p=%er 5y5%e> !or 5%o'< 'o4%ro#.

Se4d %3e $''o=4%5 'opy o! SIR %o 5%ore5 AC5.

F"#e %3e 5%ore5 'opy o! SIR "4 $''ep%ed SIR5 !"#e.

/./ I! %3e SIR "4d"'$%or 4o4 'o4!or>$4'e %o 5pe'"!"'$%"o45 %3e 5e'%"o4 3e$d 53o=#d.

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;"%3 $ :re9e'%edK "4d"'$%or ( P"4< Co#o=r .

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65/104

B)NON &U6+ MATERIA6S >

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,./ No4 B=#< >$%er"$#5 !or> d"!!ere4% 'o45")4>e4%5 53o=#d be 5%ored 5ep$r$%e#y

$#o4) ;"%3 %3e"r re5pe'%"ve re'e"p% %$)5 %o !$'"#"%$%e FIFO "55=e.

I! %3e SIR "4d"'$%or 4o4 'o4!or>$4'e %o 5pe'"!"'$%"o45 %3e 5%ore5 o!!"'er 53o=#d.

Ide4%"!y %3e >$%er"$# ;"%3 re9e'%ed %$) ( P"4< Co#o=r .

More %3e >$%er"$#5 %o $ de5")4$%ed ?=$r$4%"4e $re$.

Se4d %3e $''o=4%5 'opy o! SIR %o 5%ore5 AC5.

F"#e %3e 5%ore5 'opy o! SIR "4 re9e'%ed SIR5 !"#e.

-. T3e 'o4'er4ed 5%ore5 3e$d5 53o=#d per"od"'$##y rev"e; %3e ?=$r$4%"4e $re$ %o e45=re

pro>p% re%=r4 o! %3e >$%er"$# b$'< %o %3e 5=pp#"er.

+. T3e 'o4'er4ed 5%ore5 o!!"'er5 53o=#d e45=re %3$% %3e 5%or$)e !$'"#"%"e5 prov"ded !or %3e

>$%er"$#5 $re '$p$b#e o! preve4%"4) d$>$)e $4d de%er"or$%"o4.

8+


66/104

8. B=#< >$%er"$# !or 5pe'"!"' pro9e'%5 $4d $4y >$%er"$#5 re'e"ved !or 5pe'"!"'

re?="re>e4%5 !ro> dep$r%>e4%5 53o=#d be 'o45"dered 4o4 5%o'< "%e>5. S='3

>$%er"$#5 53o=#d 4o% be =4der %3e '=5%ody o! >$%er"$#5 dep$r%>e4%5 $4d 53o=#d be

3$4ded over %o %3e 'o4'er4ed =5er dep$r%>e4%5.

. A## 3$$rdo=5 >$%er"$#5 53o=#d be 5%ore5 5ep$r$%e#y $5 per prev$#e4% 5%$%=%ory

re)=#$%"o45.

1. A## R=bber 'o>po4e4%5 53o=#d be 5%ore5 "4 A"r 'o4d"%"o4ed roo>5.

7. T3e 5%or$)e )odo;45 53o=#d be prov"ded ;"%3 proper ve4%"#$%"o4.

20. E$'3 5%ore5 $re$ 53o=#d 3$ve $ #o'$%"o4 >$p '#e$r#y "4d"'$%"4) %3e v$r"o=5 5%or$)e

#o'$%"o45 5='3 >$p5 53$## be pro>>e4%#y d"5p#$yed.

PRESERVATION O PRODU9T >

PROCEDURE FOR PERIODIC ERFICATION OF WUALITY DETERATION OF

STORED MATERIALS.

Purpo5e >

T3e p=rpo5e o! %3"5 pro'ed=re "5 %o de!"4e %3e >e%3od !or per"od"' ver"!"'$%"o4 o!

?=$#"%y de%r$'%"o4 o! 5%ored >$%er"$#.

Met"od >

88


67/104

2. Per"od"' ver"!"'$%"o4 o! %3e ?=$#"%y o! 5%ored prod='%5 53o=#d be '$rr"ed o=% %o)e%3er

;"%3 %3e per"od"' ver"!"'$%"o4 o! %3e ?=$4%"%"e5 (per'ep%=$# "4ve4%ory by %3e 5%ore5

per5o44e#.

/. Per"od"' ?=$#"%y ver"!"'$%"o4 53o=#d be '$rr"ed o=% 9o"4%#y by $ repre5e4%$%"ve

( "45pe'%"4) per5o4 e$'3 !or> #$bor$%or5 pro'e55 $4d 5%ore5 o4'e "4 $ ?=$r%er "4

;$rr$4%y >$%er"$# dep$r%>e4%5 >$y '$## !or ?=$#"%y ver"!"'$%"o4 by "45pe'%"o4

per5o44e#.

,. He$d (>$%er"$#5 53o=#d "4"%"$%e5 3e$d (W=$#"%y $4d 3e$d (Prod='%"o4 $bo=% %3e

5'3ed=#ed o! per"od"' ?=$#"%y ver"!"'$%"o4 %3e> %o dep=%e 5="%$b#e repre5e4%$%"o4.

-. Per"od"' ?=$#"%y ver"!"'$%"o4 53o=#d "4'#=de $% >"4">=>.

M"@ =p 'o45")4>e4%5.

S%or$)e per"od.

"5=$# '3$r$'%er"5%"'5 5='3 $5 ;$%er"4) o! '3e>"'$#5 de*'o#or$%"o4 re5%"4) (!or 5%ee#

'r$'5 e%'.

+. T3e #$bor$%ory repre5e4%$%"ve >$y '$## !or de%$"#ed "45pe'%"o4 o! $4y p$r%"'=#$r

>$%er"$# b$5ed o4 ob5erv$%"o4 o! ver"!"'$%"o4 de%$"#ed.

8. L$bor$%ory repre5e4%$%"ve 53o=#d "de4%"!y 5='3 >$%er"$# re?="r"4) de%$"#ed "45pe'%"o4

d=r"4) %3"5 ver"!"'$%"o4 %3ro=)3 $ red %$) $4d >$@ %3e 5$>e %o ?=$r$4%"4e $re$.

8


68/104

. Ob5erv$%"o4 o! per"od"' ?=$#"%y ver"!"'$%"o4 53o=#d be re'orded o4 : per"od"' ?=$#"%y

ver"!"'$%"o4 repor% K I4'#=d"4) %3e #$bor$%ory %e5% repor% "4 $4 $4d $pproved by 3e$d

(?=$#"%y .

1. He$d (M$%er"$#5 $4d He$d (W=$#"%y 53o=#d "4"%$%e $ppropr"$%e 'o=4%er >e$5=re $4d

'orre'%"ve preve4%"ve $'%"o4 o4 %3e !"4d"4)5 o! per"od"' ?=$#"%y ver"!"'$%"o4 repor%.

S9'EDU6ES O PERIODI9 HUA6ITY VERII9ATION O MATERIA6

S.No NAME OF MATERIAL DURATION OF

ERFICATION

2

/

,

-

+

8

1

7

20

22

R$; M$%er"$#

C3e>"'$#5

Dye5

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R=bber prod='%5

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FRP C3e>"'$#5

Be#% Jo"4%"4) So#=%"o45

- >o4%35

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- >o4%35

- >o4%35

- >o4%35

- >o4%35

- >o4%35

PURCHASE ( CORPORATE OFFICE )

T3e p=r'3$5e dep$r%>e4% $% 'orpor$%e o!!"'e !or> p$r% o! %3e 'o>>er'"$# dep$r%5. I%

"5 ve5%ed ;"%3 %3e re5po45"b"#"%y o! e45=r"4) 'o4%"4="%y "4 5=pp#y o! 4o4 !"bro=5 R$; >$%er"$#

81


69/104

C3e>"'$#5 P=#p $5%e p$per p$'e4% "% >$4$)ed by ?=$#"!"ed $4d

e@per"e4'e per5o44e# 3e$ded by He$d (P=r'3$5e =4der %3e )="d$4'e o! '3"e! o! 'o>>er'"$#5.

HUA6ITY O&*E9TIVES

S.No WUALITY OBJECTIE MEASURABLE INDICATOR

02 To pro'=re >$%er"$# $% %3e R")3%

%">e5

A)e $4$#y5"5 o! 'o4ver5"o4 o! pro'=re>e4%

"4de4% %o p=r'3$5e5 order o4 >o4%3#y b$5"5 $4d

rev"e; by '3"e! o! 'o>>er'"$#.

0/ To pro'=re >$%er"$# $% %3e o!

5pe'"!"ed ?=$#"%y

A4$#y5"5 o! o! SIR 5 '#e$red ;"%3o=% 4o4

*'o4!or>"%y $#er% 4o%e5 o4'e "4 $ ?=$r%er !or

">prove>e4%.

0, To pro'=re >$%er"$# $% r")3% pr"'e $r"$4'e be%;ee4 >"4">=> ?=o%$%"o4 $4d

p=r'3$5e order pr"'e o4 $ '$5e* %o* '$5e b$5"5.

0- Fro> r")3% So=r'e A4$#y5"5 o! o! p=r'3$5ed M$%er"$# ;"%3

re5pe'% %o $de?=$%e 5=pp#y 5o=r'e5 o4 $de?=$%e

5=pp#y 5o=r'e o4 $44=$# b$5"5.

87


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6O? 9'ART O A9TIVITIES

Se#e'%"o4 I4de4%5 re'e"p%.

$4d

$pprov$# er"!"'$%"o4 !or 'o>p#e%e4e55 o! "4de4%5.

o! ve4der5

F#o$%"4) e4?="r"e5 %3ro=)3 e4?="ry*'=> ?=o%$%"o4 !or>$%.

Re'e"p% o! re5po45e.

Co>p#e%"o4 $4d ev$#=$%"o4 o! o!!er5 re'e"ved.

Ne)o%"$%"o45.

S=b>"55"o4 o! propo5$#5 !or $pprov$# %o 'o>pe%e4%.

A=%3or"%y depe4d"4) =po4 %3e v$#=e o! %3e propo5$#.

Prep$r$%"o4 o! p=r'3$5e order5 $5 per $pprov$# 4o%e.

er"!"'$%"o4 o! 'o>p#e%e4e55 $4d $=%3or"$%"o4.

Purc"a5e order5)

Re#e$5e o! p=r'3$5e order5.

Fo##o; =p !or d"5'rep$4'y "4 5=pp#"e5*"! $4y.

Fo##o; =p !or %">e#y de#"ver"e5.

0


71/104

Co*ord"4$%"o4 ;"%3 !"4$4'e dep$r%>e4% !or re#e$5e o! p$y>e4%5 %o ve4der5.

2

CHAPTER*

DATA ANA6YSIS INTERPRETATION O

INVENTORY MANAGEMENT L A)P)P)M

6)T)D7 RA*A'MUNDRY


72/104

ANALYSIS AND INTERPRETATION

ANA6YSIS6 *

I4 APPM %o%$# 0000 "%e>5 $re =5ed o4 d"!!ere4% $re$5 5='3 $5 A=%o S%ore5

C3e>"'$# S%ore5 Ge4er$# S%ore5 $4d MSP S%ore5.

For %3e $4$#y5"5 p=rpo5e %3e d$%$ "5 )$%3ered !ro> $## %3e5e 5%ore5 o4#y 20 "%e>5 $re

'o4'er4ed %o 'o>e5 =4der ;3"'3 '$%e)ory (ABC $4$#y5"5.

T3e 20 "%e>5 $44=$# 'o45=>p%"o4 "5 %$p%"o4 or %3e %o%$# v$#=e o! %3e "%e> "5 %$$"4%$"4ed $## %3e ye$r5. I% >=5% be '3$4)ed !ro>

%">e %o %">e. Depe4d"4) o4 %3e re?="re>e4% $4d $v$"#$b"#"%y $4d 'o45=>p%"o4 "% "5 '3$4)ed.

So "%e>5 $re 5%ored !or - >o4%35 o! d=r$%"o4 be'$=5e o! 5e$5o4$# $4d o!! 5e$5o4$# e!!e'%.

S='3 $5 "4 r$"4y 5e$5o4 %3e $v$"#$b"#"%y o! #">e5%o4e "5 very #e55 5o %3e 5%o'< be!ore %3e

5e$5o4 'o>>e4'e.

For $4$#y"4) %3e "%e>5 $44=$# 'o45=>p%"o4 "5 %$


73/104

2. F"4"53ed )ood5 $re v$#=ed $% 'o5% or >$re% o! 'red"%or5 CAN AT 5'3e>e.

,. or% U4"%5 Pr"'eU4"%5

A>o=4%

/008

Apr"# 25%

2+%3

,0%3

M/0 1!*

,0%3

J=4 2+%3

,0%3

J=# 2+%3

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**

71

**

,.00

**

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**

2/-

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0

**

0

**

0

**

0

**

**

8180

**

/+70.00

**

10+0.00

**

1810

**

**

**

7.+0

**

22-.+0

**

20-.+0

**

22-.+0

**

**

7,.++0

,.7+0

**

7-.0+0

/0.-+0

**

28.++0

1.7+0

**

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1.-+0

**

**

81/+

**

102+

**

,2+

**

102+

7,.++

7,.++

71.00

7-.0+

7-.0+

,.00

28.++

28.++

22+.00

/.0+

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2/-.00

,8.++

0

0

0

0

0

0

0

0

0

0

0

0

0

8+-1.+0

8+-1.+0

8180.00

8+1,.+

8+1,.+

/+70.00

22+1.+0

22+1.+0

10+0.00

217,.+0

217,.+0

1810.00

/++1.+0

,


74/104

A=) 2+%3

,0%3

Sep 2+%3

,0%3

2,2

**

2,1

**

0

**

0

**

720

**

7880

**

**

7+.00

**

7+.00

**

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0.-+0

**

80.++0

,-.-+0

**

-70

**

88+0

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2,2.0,

80.++

80.++2,1.00

20,.++

0

0

0

00

0

/++1.+0

720.00

-/,1.+0

-/,1.+07880.00

/-1.+0

Date

P=r'3$5e5 I55=e5 B$#$4'e (ope4"4)'#o5"4)

Unit5

Pr"'eU4"%5

Amount U4"%5 Price Units A>% U4"%5 Pr"'eU4"%5

A>o=4%

-


75/104

O'% 2+%3

,0%3

N, 1!*

,0%3

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,0%3

J$4 2+%3

,0%3

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,0%3

M$r 2+%3

,0%3

2/2

**

+.00

**

7-

**

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**

+-

**

2,.7

**

0

**

0

**

0

**

0

**

0

**

0

**

1-0

**

,770.00

**

8+10.00

**

2+,,0

**

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**

78+,

**

**

202.00

**

71.00

**

22+.00

**

71.00

**

8.+0

**

22-.0+

**

202.000

**

/.++0

7+.-+0

**

/+.++0

+.000

,/.-+0

**

82.++0 ,8.-+0

**

8.+00

**

22-.0+0

**

00

**

8180

**

10+0

**

81+7.+

**

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**

71,.+

20,.++

2/2.00

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2/2.00

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2/2.00

+.00

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7-.00

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82.++

/27.00

21/.++

21/.++

+-.00

22+.0+

+-.00

22+.0+

+-.00

2,.702.00

+-.00

2,.70

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

00

0

0

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1-0.00

21.+

1-0.00

21.+

1-0.00

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211.+0

,770.00

211.+0

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8+10.00

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2+,,0.00

2/1.+0

2/1.+0

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10+,.+0

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10+,.+0

,10.00

78+,.000.00

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78+,.00

Total clo5in% 5toc; i5 2-). unit5 amount i5 2B0.B)

+


76/104

T'E APPM 6TD)7 MATERIA6S MANAGEMENT SYSTEM> 8

Mont"l( Stoc; 6ed%er &et$een T"e Period .2K.1K-..F8B2K.BK-../

Store5 6ed%er Account ,Under IO S(5tem4

Name o! O!!ice> Store5 O!!ice Ma Min) 6eCel&in card No> Re8order 6eCel

Table 3)-

Date

P=r'3$5e5 I55=e5 B$#$4'e (ope4"4)'#o5"4)

Unit5

Pr"'e

U4"%5Amount U4"%5 Price Units A>% U4"%5 Pr"'e

U4"%5

A>o=4%

/00

Apr"# 25%

2+%3

,0%3

M/0 1!*

,0%3

J=4 2+%3

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J=# 2+%3

,0%3

A=) 2+%3

,0%3

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,0%3

**

1.00

**

+0.00

**

200

**

2+0

**

220

**

2/0

**

**

81

**

8

**

8.+0

**

81.00

**

81

**

87

**

**

+,0-

**

,,+0.00

**

8+0.00

**

20/00.00

**

-10

**

1/10

**

**

**

70.00

**

20/.00

**

10.00

**

7-.00

**

71.00

**

220.00

**

**

10.008+

20.0081

**

81.0081

,-.008

**

28.008 8-.008.+

**

,8.008.+

+1.0081

**

7/.0081

8.0081

**

20-.0081

8.0087

**

**

+110

**

870/

**

+,7/

**

8,-

**

888-

**

-18

10.00

10.00

1.00

81.00

81.00

+0.00

28.00

28.00

200.00

,8.00

,8.00

2+0.00

7/.00

7/.00

220.00

20-.00

20-.00

2/0.00

22-.00

8+

8+

81

81

81

8

8

8

8.+0

8.+0

8.+0

81.00

81

81

81

81

81

87

87

+/00.00

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-8/-.00

,,+0.00

20/.00

20/.00

8+0.00

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/-,0.00

20/00.00

8/+8.00

8/+8.00

-10.00

0/.00

0/.00

1/10.00

188.00

8


77/104

To%$# '#o5"4) 5%o'< "5 7,.+0 =4"%5 $>o=4% "5 8+-+.00

T'E APPM 6TD)7 MATERIA6S MANAGEMENT SYSTEM> 8Mont"l( Stoc; 6ed%er &et$een T"e Period .2K.1K-../8B2K.BK-..

Date

P=r'3$5e5 I55=e5 B$#$4'e (ope4"4)'#o5"4)

Unit5

Pr"'e


U4"%5

A>o=4%

O'% 2+%3

,0%3

N, 1!*

,0%3

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,0%3

J$4 2+%3

,0%3

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,0%3

22+

**

10.00

**

70

**

2+0

**

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**

2-2.0

**

87

**

0

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0

**

0

**

0

**

0

**

7,+

**

+800.00

**

8,00.00

**

20+00

**

2-00

**

710

**

**

70.00

**

2,0.00

**

2/0.00

**

220.00

**

10.00

**

7/.+0

**

70.0087

**

/-.0087

208.0087

**

2+.0087

10.000

/+.000

**

8+.000

-+.000

**

10.000

**

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8/20

**

170

**

1,1+

**

00.0

**

+800

**

8-+.0

22-.00

22+.00

/-.00

22+.00

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2/2.00

10.00

2+.00

10.00

2+.00

10.00

70.00

8+.00

8+.00

2+0.00

20+.00

20+.00

/0.00

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2-2.00

7,.+0

87

87

87

87

87

87

0

87

0

87

0

0

0

0

0

0

0

0

0

0

00

0

0

188.00

7,+.00

28+8.00

7,+.00

28+8.00

7,+.00

+800.00

20,+.00

+800.00

20,+.00

+800.00

8,00.00

-++0.00

-++0.00

20+00.00

,+0.00

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2-00.00

2+0.00

2-00.00

2+0.002-00.00

710.00

8+-+.00


78/104

Store5 6ed%er Account ,Under IO S(5tem4

Name o! O!!ice> Store5 O!!ice Ma Min) 6eCel

&in card No> Re8order 6eCel

Table 3)B

Date

P=r'3$5e5 I55=e5 B$#$4'e (ope4"4)'#o5"4)

Unit5

Pr"'e


U4"%5

A>o=4%

/001

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2+%3

,0%3

M/0 1!*

,0%3

J=4 2+%3

,0%3

J=# 2+%3

,0%3

A=) 2+%3

,0%3

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,0%3

**

0.00

**

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**

200

**

2/0

**

2/0

**

2/0

**

**

82

**

82

**

80.00

**

82.00

**

8,

**

8/

**

**

-/0

**

,0+0.00

**

8000.00

**

,/0.00

**

+80

**

--0

**

**

**

200.00

**

200.00

**

+.00

**

10.00

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200.00

**

220.00

**

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7+.0080

+.0082

**

8+.0082

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80.0080.00

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200.008,

20.008/

**

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8200

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7+.00

7+.00

0.00

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+0.00

2+.00

2+.00

200.00

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-0.002/0.00

10.00

10.00

2/0.00

200.00

200.00

2/0.00

220.00

80

80

82

82

82

82

82

82

80.00

80.00

80.0082.00

82

82

8,

8,

8,

8/

8/

+00.00

+00.00

-/0.00

,78+.00

,78+.00

,0+0.00

72+.00

72+.00

8000.00

/-00.00

/-00.00,/0.00

-110.00

-110.00

+80.00

8,00.00

8,00.00

--0.00

81/0.00

1


79/104

Date

P=r'3$5e5 I55=e5 B$#$4'e (ope4"4)'#o5"4)

Unit5

Pr"'e


U4"%5

A>o=4%

O'% 2+%3

,0%3

N, 1!*

,0%3

De' 2+%3

,0%3

J$4 2+%3

,0%3

Feb 2+%3

,0%3

M$r 2+%3

,0%3

220

**

0.00

**

10

**

2+0

**

-0

**

70

**

8,

**

8-

**

8+

**

8+

**

8+

**

8+

**

87,0

**

--10.00

**

+/00.00

**

7+0

**

/800

**

+1+0

**

**

70.00

**

200.00

**

2/0.00

**

200.00

**

200.00

**

80.00

**

70.008/

**

/0.008/

10.008,

**

,0.008,

0.008-

/0.008+

**

80.008+

-0.008+

**

200.008+

**

80.008+

**

81/0

**

8/10

**

80

**

8+00.0

**

8+00

**

,700.0

220.00

220.00

/0.00

220.00

/0.00

220.00

0.00

,0.00

0.00

,0.00

0.00

10.00

80.00

80.00

2+0.00

220.00

220.00

-0.00

20.00

-0.00

20.00

-0.00

70.00

10.00

8/

8,

8/

8,

8/

8,

8-

8,

8-

8,

8-

8+

8+

8+

8+

8+

8+

8+

8+

8+

8+

8+

8+

8+

81/0.00

87,0.00

2/-0.00

87,0.00

2/-0.00

87,0.00

--10.00

2170.00

--10.00

2170.00

--10.00

+/00.00

,700.00

,700.00

7+0.00

2+0.00

2+0.00

/800.00

8+0.00

/800.00

8+0.00

/800.00

+1+0.00

+/00.00

7


80/104

Prob4> 8 Per!orm t"e A&9 anal(5i5 !rom t"e !ollo$in% 5ample5

of 2006/2007.

Table 3)1

Source: Primary Data provided by APPM

Table 3)0

Solution: -

Items Usage

Value

No.of

Items

Usage

Value ofCumulatie

f!e"uen#$

Usage Value

in%e!#entage

Caustic Soda

China Clay

Bearings

Emery Type Roll

Starch Modiied

!ot Melt "lue

Asbestos "as#et

Sodium SulphateChains

Copying $tems

%&'())'

*&+*&+

*+&'''

(,&-'+

(+,'''

&*,('

*,&%'

%,+%'(+-.%

*+++

(

%

*

)

+

,

&

-.

('

%&'())'

*'&,-(+

*)**-(+

*,'(,%'

*&+&,%'

*-*(%*'

*-,&.+'

*-.))&'*.('*,%

*.(*.(&

,./''

&-/,(

-&/&*

.%/'%

.,/''

.&/--

.-/-%

../+'

../.'

(''


Items

&nnual

Consum'tion Unit #ostAmount

Caustic Soda

Starch Modiied

China Clay

S Sodium Sulphate

Emery Type Roll

!ot Melt "lue

Asbestos "as#et

Bearings

Chains

Copying $tems

)'*%'

,''

%&+''

)**

*'+('

)**

-+

*+''

-+.

%*&

,&

%,'

(*/,+

,(/%+

+/+'

(&'

)*%

('%

(-/+'

(+

%&'())'

(+,'''

*&+*&+

%,+%'

(,&-'+

&*,('

*,&%'

*+&'''

(+-.%

*+++

10


81/104

%!o(): - %e!fo!m t*e &+C anal$sis f!om t*e follo,ing sam'les of 2007/200.

Table 3)3


Table 3)F

Solution: -

Items Usage

Value

No.of

Items

Usage

Value of

Cumulatie

f!e"uen#$

Usage Value

in

%e!#entage

Caustic Soda

Starch Modiied

Bearings

China Clay

Emery Type Roll

!ot Melt "lue

Sodium Sulphate

Asbestos "as#et

Chains

Copying $tems

%)'+.&'

%'-''''

%&&.+'

%+%+%+

%(()&+

-)-*'

)','.

*.*(%

(,)-)

*'&+

(

%

*

)

+

,

&

-

.

('

%)'+.&'

))-+.&'

)&,*.%'

+'(,))+

+%%&.%'

+*(%&+'

+*+**+.

+*.%,&(

+)'.(++

+)(%%*'

))/)+

-%/--

--/'%

.%/,-

.,/+.

.-/(,

.-/.(

../,*

../.)

(''


Items

&nnual


Caustic Soda

Starch Modiied

China Clay

S Sodium Sulphate

Emery Type Roll

!ot Melt "lue

Asbestos "as#et

Bearings

Chains

Copying $tems

*+.('

-'''

(-+''

,,*

*-)+'

)..

.(

%&%+

-.(

%'+

,&

%,'

(*/,+

,(/%+

+/+'

(&'

)*%

('%

(-/+'

(+

%)'+.&'

%'-''''

%+%+%+

)','.

%(()&+

-)-*'

*.*(%

%&&.+'

(,)-)

*'&+

12


82/104

%!o(): - %e!fo!m t*e &+C anal$sis f!om t*e follo,ing sam'les

of 200/200.

Table 3)/


Table 3)

Solution: -

Items UsageValue

No.ofItems

UsageValue of

Cumulatie

f!e"uen#$

Usage Valuein

%e!#entage

Starch Modiied

Caustic Soda

China Clay

Bearings

Emery Type Roll

!ot Melt "lue

Sodium SulphateAsbestos "as#et

Chains

Copying $tems

(.+''''

(,*%(%'

)&+&'%

)+(*+'

*''-+'

,+(('

*-&&%**,.,

(-+''

(.*+

(

%

*

)

+

,

&-

.

('

(.+''''

*+-%(%'

)'+&-%%

)+'.(&%

)-(''%%

)-&+(*%

).(*.')).)&,''

).,,(''

).,-'*+

*./%+

&%/('

-(/,&

.'/&,

.,/-(

.-/(%

.-/.(../+'

../.,

(''


Items

&nnual


Caustic Soda

Starch Modiied

China Clay

S Sodium Sulphate

Emery Type Roll

!ot Melt "lue

Asbestos "as#et

Bearings

Chains

Copying $tems

%)*,'

&+''

*)-+'

,**

+)&''

*-*

&-

))%+

('''

(%.

,&

%,'

(*/,+

,(/%+

+/+'

(&'

)*%

('%

(-/+'

(+

(,*%(%'

(.+''''

)&+&'%

*-&&%

*''-+'

,+(('

**,.,

)+(*+'

(-+''

(.*+

1/


83/104

INTERPRETATION

0$01 system is not properly used by the company/ Because it re2uires proper

super vision and control due to lac# o it is 0$01 system maintaining is critical/

Spares are used under 3eighted average system/ At present most o the

items are issued under this system/

By comparing the same items o4 annual consumption o %''+4%'',4%''&

perorm the ABC analysis/ By comparing all the years the items are not same or all

the years/

$ particular item comes under A Category or the year but in the orth

coming year it is not remaining as the A category item/ $t may be change due to

annual consumption or value/ $t comes under B category or C/ this process also

ollo3ed to remaining B and C category items/

1,


84/104

Grap" 3)2 ,a4

Grap" 3)2,b4

1-


85/104

Grap" 3)2,c4

1+


86/104

Grap" 3)2,d4

18


87/104

Grap" 3)2,e4

1


88/104

Grap" 3)2,!4

CHART6 A&9 ANA6YSIS

11


89/104

Usa

gevaluei

2..

.

/.

F.

3.

0.

1.

B.

-.

%

2.

. 2. -. B. 1. 0. 3. F. /. . 2..

A item5 merit a ti%"tl( controlled inCentor( 5(5tem $it" con5tant

attention b( t"e purc"a5e mana%er and 5tore5 mana%ement)

& item5 !ormali5ed inCentor( 5(5tem $it" periodic attention b(

purc"a5e and 5tore5 mana%ement)

9 item5 u5e a 5impler 5(5tem de5i%ned to cau5e t"e lea5t trouble !or t"e

purc"a5e and 5tore5 department

9alculation o! EOH

Prob#e>6

Aver$)e Co45=>p%"o4 o! $## %ype5 o! M$%er"$# ,800000 per $44=>

17

Value of cost in %


90/104

Aver$)e U4"% Co5% ,80

C$rry"4) Co5% (e?=$# %o Co5% o! C$p"%$# 2+

Order"4) Co5% 2+00

So#=%"o46

EOH S#urt, -A&K9S4

Q S?=r%( /Z 20000Z2+00 ,80Z0.2+

Q S?=r%( ,0000000 ,80Z0.2+

Q S?=r% ( ++++++

Q -+ U4"%5

Total 9o5t o! InCentor( at EOH

S#urt , -A&9S4

S?=r% ( /Z20000Z2+00Z,80Z0.2+

Q S?=r% ( 28/0000000

Q R5 -0/+0*

Interpretation

A5 APPM "5 =5"4) v$r"o=5 %ype5 o! r$; >$%er"$#5 "% 4o% po55"b#e %o '$#'=#$%e EOW

!or e$'3 o! %3e prod='%5. He4'e $ver$)e 'o45=>p%"o4 d=r"4) + ye$r5 per"od "5 %$e $4 order "5 >$de %3e e'o4o>"' 5"e o!

5='3 order ;"## be 00 100 U4"%5. I4 be%;ee4 %3e "4d"v"d=$# 'o>po4e4%5 "% >$y v$ry =p %o

+00 2000 =4"%5.

INVENTORY 9ONTRO6 IN APPM) 6TD)7

70


91/104

INTRODUCTION: -

Co>p$4"e5 b$5ed o4 %3e %ype o! >$4=!$'%=r"4) 5pe'"$# dep$r%>e4% $4d 5ep$r$%e 5%ore5

>$"4%$"4 d"!!ere4% )ro=p5 o! "4ve4%or"e5 $4d p$r%"'=#$r 5%$!! %o p$r%"'=#$r $re$5 "5 >$"4%$"4ed.

T3ey $re

2. Ge4er$# S%ore5

/. MSP S%ore5

,. A=%o S%ore5

-. C3e>"'$# S%ore5

T3e >$%er"$# dep$r%>e4% "5 b$5ed $% R$9$3>=4dry "5 $ p$r% o! $d>"4"5%r$%"o4

!=4'%"o4 %o 5erve %3e =5er dep$r%>e4%5.

T3e dep$r%>e4% "4"%"$#5 p=r'3$5e "4de4% !or p=#p ;$5%e p$per pro'e55 '3e>"'$# $5 per

A44=$# b=d)e%ed re?="re>e4%5 $4d '$p"%$# "%e>5 re)=#$r#y re?="red 5p$re5 o! >$'3"4ery $#5o

"4de4%ed by %3"5 dep$r%>e4% 5o $5 %o >$"4%$"4 %3e =5er 5pe'"!"ed >"4">=> 5%o'< #eve#5 5%or$)e

$4d "55=e o! $## %ype5 o! >$%er"$#. 3e%3er or 4o% d"re'%#y re#$%ed %o $ >$%er"$# dep$r%>e4%

$#5o per!or>5 p$per>$


92/104

T3e >

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