INTRODUCTION

In 1817, the first paperboard carton was produced in England. Folding

carton first emerged around the 1860¶s and was shipped flat to save space,
ready to be set up by customers when they were required. 1879 saw the
development of mechanical die cutting and creasing of blanks. In 1911 the
first kraft sulphate mill was built in Florida and in 1915 the gable top milk
carton was patented and in 1935 the first dairy plant was observed using
them. Ovenable paperboard was introduced in 1974.

G
  is a thick paper based material. While there is no rigid

differentiation between paper and paperboard, paperboard is generally
thicker (usually over 0.25 mm/0.010 in or 10 points) than paper. According
to ISO standards, paperboard is a paper with a basis weight (grammage)
above 224 g/m², but there are exceptions. Paperboard can be single or multi-
ply. Paperboard used for the manufacture of folding cartons and rigid set-up
boxes is often called boxboard. Paperboards used for the manufacture of
corrugated fiberboard are called containerboard. It can be easily cut and
formed, is lightweight, and is strong used in packaging. Another end-use
would be graphic printing, such as book and magazine covers or postcards.
Sometimes it is referred to as cardboard, which is a generic, lay term used to
refer to any heavy paper pulp based board.

The paper and paperboard industry is quite energy and capital

intensive. A coated board line with 400kt/y will costs around 60 million
Euros (about 85 million USD in 07/2009). Economies of scale apply,
because of which a few large players often dominate the market place. E.g.
in North America the top 5 producers have a market share of 85%.
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 NEED FOR THE STUDY

Inventories constitute the most significant part of manufacturing

concern the objective of inventory management should be to determine and
maintain optimum level of inventory will be lie between two danger points
of excessive and inadequate inventory.

The, major dangerous of over investments are

Îc Unnecessary tie up of funds and loss of profit

Îc Excessive carrying cost
Îc The risk of liquidity

THE MAJOR DANGERS UNDER INVESTEMENTS ARE

Îc Production holdup
Îc Failure to meet the delivery commitment
Thus the need of inventory management very necessary to
avoid over and under investments.

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 IMGORTANCE OF THE STUDY

Thus the need of inventory management is to avoid over

and under investments .There are three general motives for
holding inventory.

ÎcT 
 M
X - Emphasizes the need to maintain
inventories to facilitate smooth production and sales
operations.

ÎcG
  M
X- Necessities holding of inventory to
guard against the risk of unpredictable changes in demand
and supply forces and other factors.

ÎcS
 
 M
X - Influences the decision to increase or
reduce inventory levels to take advantage of price
fluctuation.s

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 OBJECTIVES OF THE STUDY

Îc To study the pattern of organization management and inventory

factors of Jayanthi Boards LTD

Îc To analyze the inventory classification and its management and

control.

Îc To study the relevant costs, cost saving measures and find out

drawbacks

Îc To examine the methods and techniques of inventory control in

Jayanti Boards Ltd

Îc To make a detail study on the existing paper industry in general &

inventory management in particular to the company

Îc To summarize and suggest the observations.

Îc To maintain an optimum size of inventory for efficient and smooth

production and sales operation.

Îc üinimize carrying cost and timec

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 METHODOLOGY OF THE STUDY

It means the process of collection of data from primary and secondary

sources and interpreting the same by using the analytical tools to the benefit

of the company.

The methodology can be classified as follows

Ëc Primary DataX

Ëc Secondary DataX

G  D
X

The data which was collected from the authorities by interacting

with them directly & online computerized stores system.

S   D
X

The data which was collected from the company¶s annual reports,

audit reports, balance sheet and other company records ,journals, periodicals

etc.,

However most of the study is conducted based on secondary data.

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 LIMITATIONS OF THE STUDY

Îc The company policies do not accept to have a probe in inventory

management.

Îc üost of the information has kept confidential and such is not

passed on as part of the policy of the company

Îc Time allotment is the major limitation since the time is short to

understand the comprehensive study.

Îc To the extent that executive could spare their time. They gave us the

information by way of small discussion for the purpose of data

collection.

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 INTRODUCTION

India is considered to be an Agri green economy with his basic factors

Agro Based industries were board aspect in his regard are being looked into

the first straw board being given more importance, the development

industries was established in India in the year 1939 by the group of

Singhania industries an named I as J.K Singhania Boards Ltd.,

After a decade some more industries were added to it indifferent states

like Andhra Pradesh, West Bengal, üadhya Pradesh, Orissa and Tamil

Nadu. It we look at the above states these industries are prominent in states

which concentrates on paddy production. There are 15 major board

industries to name the leading industry in the state is Which is one of the

reputated and established industry in the Andhra belt. Coastal Agro &

Jayanti Boards Ltd .

GROWTH OF STRAW BOARD INDUSTRY AFTER TWO YEARSX

Companies are looking at considerable improvement in profits as

price firmed up and capacity utilization is being (2007-08, 2008-09) used

to the Balance sheet.

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GRODUCTION WAS AS FOLLOWS X

‰EARS PRODUCTION SALES

In crore ( quantity )

2002-2003 6252 Tones 5.01 7031

2003-2004 7315 Tones 5.30 7246

2004-2005 7315 Tones 5.63 7362

2005-2006 8010 Tones 6.50 8234

2006-2007 9160 Tones 7.08 9256

2007-2008 9066 Tones 8.21 9267

2008-2009c 8753 Tones 8.11 8564

GRODUCT CLASSIFICATION

SUMMARY OF GRODUCTWISE GROFILE

GRODUCT NO.OF U OGEN NO.OFUCLOSED TOTAL

Board 43 7 50

Cultura 136 41 177

Industrial 165 21 186

Specially 12 3 15

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 L
  
 
  B  I 
  ANDHRA

GRADESH

No NAüE PLACE

1 Costal Agro Ind Ltd Tanuku

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4 Jayanti Boards Ltd., üandapaka

5 Kalyani Straw Boards Surya Rao Palem

6 Sri Pujitha Straw Board Ungtur

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 COMGANY GROFILE

J  
 B  L
X

J.B.Ltd was ordinary incorporated as a private limited company which was

subsequently converted into a public company. The registered office of the

company is situated at Hyderabad in A.P.

G
 G
X

The Company proposed to set up a straw board unit with an installed

capacity of 9000 T.P.A. The Company had obtained main planned and machine

and technology from ü/S Khalson Engineering Works, Calcutta. As per their

policy, the company need not have to obtained DTD Registration / License to

setup this unit.

BACKGROUND OF THE GROMOTORSX

The directors of the company have sot vide experience in this type business

for about 20 years. Their vast experience and strive to achieve has helped.

J.B.L to keep it in top within a time.

JA‰ANTI BOARDS LIüITED has started its commercial its production

during April 1999.

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TECHNICALX

Sir Parasmal Jain is well experienced in paper line and has got more than a

decade experience in this line. The Plant and üachinery is being supplied by

ü/s Khalsa Engineering Works, Calcutta who supplied for a number of plants

in India and abroad.

LOCATIONX

The unit is located in üandapaka near Tanuku, West Godavari

District, which is 3 Km from NH-5. The unit is well connected by road ad

the company had identified 7 acres of lad. Since the unit is located vary

close to Tanuku town it will not have any problems of transport ad

manpower

GOWER AND UTILITIESX

1)c GOWERX

The total power requirements for the unit are about 670 H.P with a

maximum demand of 500 K.V.A. The company is having own Diesel

Generator of 380 K.V.A as alternative in power cut position. Fourth line is

being commenced now.

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Œ)c WATER

The company requires around 1000 C.Uü water per day and the same will

be et from bore well and from the canal passing on the western side of the

site.

)c FUELX

The requirement of team is 6 tones per tone of straw board produce

the duel s envisaged for boiler. The 2 ü used in straw and husk which can

be abundantly met in this agriculture land.

0)c MANGOWERX

Labour 37 workers 25

Staff 12 members

GLANT LAY OUT

The nature of manufacturing which is a continues one determines that

the flow of semi ± finished product takes place with out much their in

standing The Raw material is kept in open. Precautions are taken to prevent

fire hazards. The finished product is stored in godowns. Joining the plant.

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MISSION OF JAYANTI BOARDSX

³Our mission is to be a powerful force in the industry and also to send

a helping hand in the development of the backwards areas and also to

provide some village employment through the development of industry´.

VALUESX

Employ empowerment for commitment to total quality in team efforts

and increased productivity and ethical üanagement practices.

QUALITY GRINCIGLESX

To achieve customer satisfaction strong quality up graduation of

products, process and human resources on a continues basis.

BOARD OF DIRECTORSX

1)c SRI PARAS üAL JAIN (Chairman)

2)c SRI ASHOK KUüAR AIN(üanaging Director) üD

3)c SRI KANRAJ JAIN (Production Director) P.D

4)c RAüESH KUüAR JAIN (Whole time Director) W.T.D

5)c SRI CH. BARANI KUüAR (Technical Director)

6)c Smt. VIüALA DEVI ( Director)

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MANAGERSX

1.c SRI üANOJ KUüAR JAIN (General üanager)

2.c SRI CHANDRA PRAKASH üOHNOT (Finance üanager)

3.c (SRI V. VISWESWARA RAO (üarketing Channel Component

DEGARTMENT STRUCTURE OF JAYANTI BOARDS LIMITEDX

1.c 1.ADüINISTRATIVE DEPARTüENTX

2.c FINANCE DEPARTüENTX

3.c PERSONNEL DEPARTüENTX

4.c üECHANCIAL ENGINNERING DEPARTüENTX

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 A THEORITICAL FRAME WORK ON ³INVENTORY
MANAGEMENT´

INTRODUCTIONX
Inventory management´ means planning, procurement, holding and

accounting and distribution of these and materials. Inventories are

approximately 60% of current assets in India. In industries using agricultural

raw materials the percentage is still higher, thus a large part of working a

capital is invested in inventories.

The management of inventors is therefore necessary to avoid heavy

loss due to leakage, theft and wastage because neglecting the management of

inventories may jeopardize. The long on profitability of the concern may fall

ultimately. The reduction in the excessive inventors carries a favorable

impact on a company¶s profitability.

D


³ The term inventory refers to current assets, which will be sold in

future in the normal course of business operations. The assets, which the

firm stores as inventory in anticipation of need, are raw materials, stores &

spares, work-in-progress\process, and finished goods. ³

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 OBJECTIVESX

Inventory should be turned over as quickly as possible. It should, at

the same time ensure sufficient Inventories to satisfy production and sales
demand.

Îc To avoid the Break down situations.

Îc The objective of inventory management consists of two

counter balancing parts.

Îc To minimize the firms investments in inventory.

Îc To meet a demand for the product by efficiently organizing the

firms productions and sales operations.

DIFFERENT TYGES OF INVENTORIESX

An inventory is an idle resource that posses economic value. It is an

item that is stored or reserved for meeting future demand such items may be

materials, machines, money, or even human beings.

Inventories are stock of product a company is manufacturing for sale

and components that make up the product. Inventories are composed in toX

Îc Raw materials

Îc Work in progress

Îc Finished goods

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 Îc Consumables

Îc Bought and components

Îc Packing materials

Îc Spare parts«

HOLDING INVENTORY

The cost associated with inventory, fall into two categories.

1.c Ordering/ Acquisition / Setup costs.

2.c Carrying cost.

INVENTORY CONTROL TECHNIQUESX

¦c ABC analysis (Always Best Control Analysis)

¦c EOQ analysis ( Economic Order Quantity Analysis)

¦c HüL analysis (High üedium & Lower Analysis)

¦c FSN analysis ( Fast Slow & Non-üoving Analysis)

¦c Two bin system

¦c üRP analysis ( üaterial Requirement Planning Analysis)

¦c VED analysis ( Vital Essential & Desirable Analysis)

¦c SED analysis ( Scarce Difficult & Easily Analysis)

¦c üAX analysis (üAX-üIN)

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 FINDINGS

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Îc The codification followed has resulted in frequent misunderstanding

of material requisition orders.

Îc There is no proper and good communication between the purchases

and stores department, which cause procedural delays.

Îc Conversion period was also varying from time to time that is

conversion from raw material to finished goods.

Îc The company is not follows the EOQ (Economic Order Quantity) in

issuing the raw material.

Îc The company has been minimizing the investment to maximizing

the profitability.

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 SUGGESTIONS

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 CONCLUSION
³Inventory control is exercise when you order an item. If you do a
poor job then everything after is inventory correction´

Inventory is the physical asset of a company that can create problem if

there is shortage, while in production and also if it¶s in excess even after
production. Inventory is constantly changing as quantities are sold and
replenished.

Hence it can be understood that efficient inventory management can

take the company to new heights and inefficient inventory management can
ruin the company.

Company is highly concentrated on domestic market, it increase the

market level of company because trend of domestic market is changingc

From the study it is predicted that future sales have to be achieved and
inventory level have to be maintained.
ABC Analysis was carried out to identify the fast moving and important
items.
The company has to periodically review the inventory to avoid production
loss.
The results of the study can be further extended for future research.

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