RAKESH CHOUBEY

Larsen & Toubro (L&T) IS THE LARGEST CUSTOMER OF TATA STEEL LONG PRODUCT

SOME BASIC DEFINITION

When the buying and selling process steps forward and the customer is not able to pay the total amount, the amount which they are not able to pay at the same time of buying the amount is known as DEBT.

In the balance sheet of companies those customers are DEBTORS. In their

balance sheet company is a

CREDITOR

On the basis of market performance and credit rating company decides the time period of payback of the amount. This time period is known as

CREDIT PERIOD

OS & OD

The total amount called as debt is called as OUTSTANDING. When this total outstanding is not paid within the credit period the amount remained to be collected is called as OVERDUE

Outstanding payment and overdue payment

When sales are made on credit, the entire amount of sales is outstanding as on the date of sales. The payment for the same needs to be made when the credit limit expires If payment is still not received with the expiry of the credit limit, the amount becomes overdue in the name of the customer

CAM (Customer Account Manager).

Each manager was made responsible for the sales of a particular territory and customer The CAMs along with his distributors and sales team conduct monthly retail sales reviews & payment

 Tata Steel has to continuously decide as to how much credit should be given to its customers and also the credit limit and their maximum exposure. Prior to given credit, the credit department analyses the credit worthiness of the customers based on their financial parameters.

Control Charts
The three standard deviations are sometimes identified by zones. Each zones dividing line is exactly one-third the distance from the centerline to either the upper control limit or the lower control limit Zone A is defined as the area between 2 and 3 standard deviations from the centerline on both the plus and minus sides of the centerline Zone B is defined as the area between 1 and 2 standard deviations from the centerline on both sides of the centerline Zone C is defined as the area between the centerline and 1 standard deviation from the centerline, on both sides of the centerline.

Benefits of using Control Charts in Daily Management Monitor process variation over time. Differentiate between special cause and common cause variation. Assess the effectiveness of changes to improve a process. Communicate how a process performed during a specific period.

X Sum of OS jul,aug,sep 11
Sum of OS 1500 1000 500 0 UCL CL LCL 1,083 604 125

mR Sum of OS jul,aug,sep 11
1000 800 600 400 200 0 UCL CL 588.3457537 180.0874667

Date/Time/Period

Range

Date/Time/Period

185 160 135 110 85 60 35 10 -15

X Sum of OD jul,aug,sep 11
UCL CL LCL 123 72 20

Sum of OD

Date/Time/Period

mR Sum of OD jul,aug,sep 11
185 160 135 110 85 60 35 10 -15

Range

UCL CL

63 19

Date/Time/Period

L&T
X Sum of os MAY & JUNE 12
1000 800 600 400 200 0 Sum of os UCL CL LCL
703.7637283 392.1404473 80.5171663

Date/Time/Period

X Sum of os MAY
975 775 575 375 175 -25 Sum of os Sum of os

X Sum of os JUNE
773.1228387 479.7350955 186.3473522

UCL
CL LCL

695 495 295 95 -105

UCL CL LCL

594.8391825
294.8130605 -5.2130616

Date/Time/Period

Date/Time/Period

L&T
mR Sum of os MAY & JUNE 12
500 400 300 200 100 0 Range UCL CL
382.7343079 117.1516094

Date/Time/Period

mR Sum of os MAY
500 400 300 200 100 0 Range Range UCL CL
360.3375027

mR Sum of os JUNE
400 300 200 100 0 CL
112.7917752

UCL

368.4907296

110.2961441

Date/Time/Period

Date/Time/Period

L&T
X Sum of od MAY & JUNE 12
Sum of od 73 23 -27 -77 UCL CL LCL
27.3975056 -16.8363832 -61.0702720

Date/Time/Period

X Sum of od MAY
48 28 8 -12 -32 -52 -72 69 UCL CL LCL
11.6746296 -20.2520951

X Sum of od JUNE
Sum of od
UCL 37.9561716 -13.0411477 -64.0384670

Sum of od

19
CL

-52.1788198

-31
LCL

-81

Date/Time/Period

Date/Time/Period

L&T
mR Sum of od MAY & JUNE 12
80 60 40 20 0 Range UCL CL
54.3278627 16.6292815

Date/Time/Period

mR Sum of od MAY
80 60 40 20 0 UCL CL
39.2122593 12.0025281

mR Sum of od JUNE
70 60 50 40 30 20 10 0 UCL
62.6346775

Range

Range

CL

19.1719245

Date/Time/Period Date/Time/Period