You are on page 1of 102

Study of Inventory Management

A PROJECT REPORT ON INVENTORY MANAGEMENT IN BOSCH CHASSIS SYSTEMS INDIA LTD. JALGAON, (M.H.)

PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION OF North Maharashtra University Under the Guidance of MISS. SWATI KANKARIA (FINANCE FACULTY) G.H.R.I.E.M. (Jalgaon) Submitted By: ANIKET A. RATHI M.B.A- II year

Study of Inventory Management

Bosch Chassis Systems India Ltd. (Jalgaon)

G. H. Raisoni Institute of Engineering & Management, Jalgaon. ___________________________________________________ ____

Study of Inventory Management CERTIFICATE

This is to certify that project work entitled Study Of Inventory Management Bosch Chassis System India Ltd. (Jalgaon) is written and submitted to Department of

Management Studies, G. H. Raisoni Institute Of Engineering and Management, Jalgaon. By Mr. ANIKET A. RATHI in partial fulfillment of requirement for the course of Master in Business Administration during the academic year 20010-11.

The work carried out under our guidance and supervision is bonafide.

Mr. S. R. Sugandhi Swati Kankaria (Co-coordinator) (Project Guide)

Miss.

ACKNOWLEDGEMENT
3

Study of Inventory Management

I have great pleasure in presenting this report on Study of Inventory Management which was done undertake at Bosch Chassis System India Ltd. (Jalgaon) I am thankful to my project guide Miss. Swati Kankaria, whose valuable suggestions and guidance help lot to complete this project. I am also thankful to Mr. S. R. Sugandhi, coordinator, G. H. Raisoni Institute of Engineering & Management, Jalgaon who encouraged me time to time for completing this project. I express my sincere gratitude to Mr. Ghodke sir (Asst. Manager, A/c), whose guided me in best possible manner. I also thankful to Mr. kailash patil (H.R.Manager), Bosch Chassis System India Ltd. (Jalgaon) who permitted me to undertake this project. Last but not least I would like to thanks officers and all staff members of Accounts Department, who help me with their timely suggestions and their information and cooperation giving by them which made this project a success.

Place: Jalgaon. Date: Rathi Mr. Aniket A.

Study of Inventory Management

EXECUTIVE SUMMARY

Change is the only permanent feature of this dynamic world. What is true about this dynamic world in general is also true about the business and its allied concept in particular. The multiplicity of wants called for the original form of the business. i.e. Barter exchange. Afterwards money was introduced & industrial revolution takes place, this has changed the scenario to a greater extent. Initially there was a seller market but increased competition witnessed by the Indian economy. Liberalization, Privatization & Globalization is the realities of the todays era, in the light of which cost consideration has an inevitable importance. The inventory management has a very vital role to play in this competitive age. So the term Globalization refers to a concept that has been developed recently. In general it covers all facts of life be it political, economical, social and cultural in particular, it is one of the most dynamic aspects of the corporate strategy for both survival and

expansion of business opportunities. In the Indian context is linking the Indian economy organically with world economy. Thus, in a world where speed, flexibility and costs hold the key to maintain a competitive edge, an appropriate up

Study of Inventory Management gradation of financial system is the crying need of the hour.

DECLARATION

I hereby declare that all information in this report is best on my own fact, finding and experience at the BOSCH CHASSIS SYSTEMS INDIA LIMITED. And the same has not been previously submitted in any examination of this University or any other university. The project report is prepared under the eminent guidance of Miss. SWATI KANKARIYA. This information has been used purely for academic purpose.

Mr. ANIKET A. RATHI

Study of Inventory Management MBA-II Chapter No. Particulars Page No.

(Finance) Place: JALGAON Date:

.
7

Study of Inventory Management 1. Preface

2.

Introduction

3.

Company profile

4.

Research Methodology Limitations

5.

Theoretical Background

6.

Inventory Management in Bosch

7.

Ratio Analysis

8.

Findings, Conclusion & Suggestions

9.

Bibliography

10.

Annexure

INDEX

Study of Inventory Management

CHAPTER-1 PREFACE

PREFACE

As a part of the partial fulfillment of the M.B.A. programme at G.H.R.I.E.M. (Jalgaon), Summer Training was undertaken with the

Study of Inventory Management International company, Bosch Chassis Systems India Ltd. (Jalgaon)

This project is specially designed to understand the subject matter of Inventory Management of the company. This project gives us information and report about companys Inventory Management. Throughout the project the focus has been on presenting information and comments in easy and intelligible manner.

The purpose of the training was to have practical experience of working in a organization and to have exposure to the various management practices in the field of Finance. This training has also given me an on the job experience of Financial Management.

This project is very useful for those who want to know about company and Inventory Management of the company.

10

Study of Inventory Management PROJECT TITLE STUDY OF INVENTORY MANAGEMENT.

REASON OF CHOOSING THE COMPANY FOR THE PROJECT In todays fast growing world, automobile industry is playing a very important role. As Bosch chassis Systems India Limited is one of the leading company producing brakes required by the many automobile manufacturing companies. So, the company required a huge inventory to produce the product.

LOCATION Bosch Chassis Systems India Limited Near NH-6, Bambhori, Jalgaon-425001(India)

DURATION Two Months:-Date- 01/06/2010 TO 31/07/2010

11

Study of Inventory Management

CHAPTER-2 INTRODUCTION

INTRODUCTION

Inventory it is a blood of any manufacturing company. Because just like a man if a man without blood then he will be death, so, therefore the same phenomenon is concerned for the company point of view. The inventory management may be defined as

12

Study of Inventory Management the sum total of those activities which are necessary for the acquisition storage, sales, and disposal or used of material.

The techniques of inventory management are very useful in determining the optimum level of inventory and finding the economic order quantity, the re-order point and the safety stock. These techniques are very essential to economize the use of resources by minimizing the total inventory cost. He should introduce the policies which reduce the lead time, regulate usage and thus, minimize safety stock.

In Bosch chassis systems they are generally maintain the inventory for raw material, work -in -process and finished goods. The company is using 4 inventory control techniques i.e. ABC Analysis, FSN Analysis, KANBAN and Just in Time technique for inventory management. The Bosch has been maintained the 18 days inventory & it has tries to increased sales & reduced the storage cost. In Bosch chassis the inventory management system is run in well away. The company holds minimum stock of raw material for avoiding of wastages.

SELECTION OF TOPIC

13

Study of Inventory Management

To be successful in today's fast-paced, highly-competitive environment, organizations need to have the necessary parts in stock or have reliable suppliers to meet customer demands at a moment's notice. Either way, organizations must have a practical, efficient method for managing inventory in order to stay in business and satisfy their customers.

Effective Inventory Management enables an organization to meet or exceed customers' expectations of product availability while maximizing net profits or minimizing costs.

The purpose of selection of the topic of Inventory Management is because as a student of management, I must know how to effectively manage the huge inventory and how to keep the inventory carrying cost at the minimum level by using different techniques.

OBJECTIVES OF STUDY

Every study emerges to achieve certain objectives. The main objective of carrying out this project is to know and gain
14

Study of Inventory Management practical knowledge and to know the organization working culture.

Following are the important objective of the project

1. To understand the practical concept of Inventory Management.

2. To understand the various kinds of inventory and also the receipt procedure of inventory.

3. To know and analyze the management technique used in managing the inventory.

4. To study the role of management in inventory management and minimization of inventory carrying cost thereby increasing the profit of the organization.

5. To know the product profile as well as study its structure, organization etc.

15

Study of Inventory Management

SCOPE OF THE STUDY

The scope of the project was related to inventory management. In this study, I analyze the inventory control techniques using ABC analysis, FSN analysis, KANBAN and Just in Time technique.

As part of the study I also analyzed the balance sheet of the company. The aim of the study was to know, how an organization manages their inventory.

Analysis of the data and interpretation of information has been done with help of table and graph. The validity of the study of this project limited for two months.

16

Study of Inventory Management

CHAPTER-3 COMPANY PROFILE

COMPANY PROFILE Introduction About Bosch in India:Bosch India is regional branch of the Bosch Group, one of the worlds biggest private industrial

corporations. Headquartered in Stuttgart, Germany, the Bosch Group has approx. 282 ,000 employees worldwide. The Bosch Group is a globally active and
17

Study of Inventory Management leading manufacturer and innovators of Automotive and Industrial Technology, Consumer Goods and Building Technology. In India, Bosch is represented in by its subsidiary companies - 1) Motor Industries Company Limited MICO:-is the flagship of the Bosch group in India, established in the year 1951. Mico is the largest auto component manufacturer and the largest Indo-German company in India. 2) Robert Bosch India Limited RBIN:-a wholly owned subsidiary of Robert Bosch GmbH, develops software and engineering solutions for all business sectors within the Bosch world in more than 15 nations across Europe, USA, Asia and Australia. 3) Bosch Rexroth India Limited BRIN:-Provides a complete range of world-class products, systems and services for drive and control technologies to various industrial and mobile applications. 4) Bosch Chassis System India Limited RBIC:-

(formerly Kalyani Brakes) is the leading manufacturer of hydraulic brakes in India for passenger cars, two wheelers, three wheelers and tractors. Its plants are located in Jalgaon and Chakan in Maharashtra and Manesar near Delhi. Bosch Rexroth AG is an expert for all drive, control and motion technologies. The Industrial Technology division Bosch Rexroth India provides a complete range of excellent products, systems and services to customers in India, Bangladesh, Nepal and Sri Lanka

18

Study of Inventory Management through its manufacturing facilities, service centers, and service Partner Asia. BOSCH CHASSIS SYSTEMS INDIA LIMITED JALGAON PLANT Founded in 1886 in Germany, by Robert Bosch, Bosch today is the largest automotive technology supplier in the world. Bosch Chassis System India Ltd. Jalgaon Plant was formerly known as Kalyani Brakes which is established in1984.Bosch Chassis Systems India Ltd. It is one of the best brake manufacturing companies in the country. This is the best leading company for manufacturing brakes in the world. In Jalgaon plant, company manufacturing four wheeler brakes & Disc - brakes of any vehicle. In this plant, company manufacturing two types of brakes i.e. Hydraulic Brake and Air Brake. For those there is near about 2500 major raw material components are required and for that they

maintained proper inventory of raw material. In 1991 when Mr. Minoan Singh was Finance Minister of India, on that time they were introducing open policy. Due to this open policy this company has converted into MNC Company.

19

Study of Inventory Management

CERTIFICATE I. S. O. 9001 Q. S. 9001

YEAR DEC. 1993 DEC. 1999 APR. 2000 APR. 2005 APR. 2008

I. S. O. 14001 T. S. 16949

OHSAS 18001

INTERNATIONAL CERTIFICATIONS

DEPARTMENTS IN JALGAON SBU

MANUFACTURING FOUNDRY 1 & 2 MACHINING J1 & J2 BONDING &PROCESS. ASSEMBLY QUALITY ASSURANCE STANDARD ROOM P. P. C. STORES Year of Start Land Area Employee Strength
20

SERVICE ENGINEERING PROD. ENGINEERING MGT. SERVICE DEPT. FINANCE MATERIALS H. R. D. MAINTENANCE 1984 378,250 m 2 1400 Nos.

Study of Inventory Management

COMPANY'S HISTORY 1982 1983 KBX incorporated as a Joint Stock Company Technical & Financial Collaboration with Bendix Corporation, USA 1984 Maharashtra (India) 1987 Unit at Pune in Maharashtra 1988 Established an Aluminium Foundry with NABCO Technology 1991 in Collaboration With Bendix, Spain at Pune.(A dedicated Source to KBX) 1993 Set-up an Assembly Plant at Gurgaon for Established Rubber Seal manufacturing subsidiary Established an exclusive Sheet Metal Stamping Commercial production started at Jalgaon in

J.I.T.supplies to Maruti Udyog Limited 1995 after 11 Years of Technical Collaboration NABCO joined the company as equity partner

21

Study of Inventory Management 1997 Pune 1999 SpA, Italy for Manufacturing Tractor Brakes 1999 Italy for Manufacturing of Two Wheeler Brake Systems & Components 2001 Industrial Company Limited, Japan for manufacturing of Brake 2001 for Manufacturing of EPDM Rubber Seals (for PSML) 2002 Industrial Township at Manesar, Haryana. 2002 New, second Plant at Jalgaon, Major expansion of Aluminium Foundry 2003 New F-2 fully atomized foundry AWARDS Shifting of Gurgaon Plant to a larger Plant at Collaboration Agreement with M/s Fukoku, Japan Collaboration Agreement with M/s Japan Brake Collaboration Agreement with M/s Brembo SpA, Collaboration Agreement with M/s Titan Italia, Start-up of a new modernized Plant at Chakan near

22

Study of Inventory Management

Jan. 07, 2010: NDTV Car & Bike Award - Automotive technology of the year This accolade recognizes the contributions made by Bosch in India, for localizing ABS (Antilock Braking System) production. Bosch is the only automotive supplier to manufacture ABS in India for passenger cars and light commercial vehicles. ABS is crucial to safety while driving, as it makes braking safer, by preventing the wheels from locking.

April 15, 2009: DHL CNBC TV18 International Trade Award Bosch won this honor in the category of auto component industry, for doing extremely well in exports through its low-cost solutions. The award recognizes the companys commitment and innovations that address the needs of the Indian market, and keep Brand India alive.

Jan. 7, 2009: UTVi Autocar Award

23

Study of Inventory Management

Bosch and Mahindra & Mahindra won the Best Innovation of the Year UTVi Autocar Award. The award recognizes Bosch innovation start/stop system which contributes to fuel efficiency at a very reasonable cost. The Mahindra Bolero Micro Hybrid is the first vehicle in India to integrate this technology in their new car.

QUALITY POLICY

Each and every member of Bosch Chassis Systems India Limited Team will put in His / Her best endeavour in a systematic manner to optimise:

1) Quality and Reliability of product / services to reach global Standards.

2) Productivity of all resources - Human and Material.

3) Profitability to ensure growth, fair returns to Shareholders and good living standard to our employees.

4) Utility of our operations to the community and the nation at large.


24

Study of Inventory Management

5) Sensitivity towards our customers, employees, vendors, society and Environment.

VISION / MISSION / VALUES OF BOSCH

Vision Achieve global recognition as a world class brake system supplier.

Mission Create an export-worthy Business, by adopting Lean Manufacturing Principles, continuous up-gradation of design and manufacturing Technology, continual improvement in quality, competitiveness and

25

Study of Inventory Management Environmental management systems.

Values We strongly believe in the Leadership Capability of individuals and in the Power of Cross Functional Teams.

We will encourage innovation and decision making to achieve total Customer satisfaction.

We will ensure the highest standards of business ethics and integrity in all Our actions.

QUALITY OBJECTIVES CY 10 1. Meet Manpower ratio of Jalgaon Operations 2.5 Lacs/man/month.

2. Reduce item wise internal rejection / rework compared to previous Year by


26

Study of Inventory Management 20% where ever rejection /rework more than 1.0% 10% where ever rejection/rework up to 1.0%

3. Reduce QPCRs and PDRs by 20 % from current level.

4. PPM.

Meet overall zero kilometer customer rejection, below 05

5.

Reduce overall warranty PPM rejection by 20% from

current level.

6. level.

Reduce Suppliers PPM rejection by 30% from current

7.

Achieve overall Training ratio as 3 man-

days/person/year.

8.

Maintain overall Inventory level of 24 days.

27

Study of Inventory Management

PRODUCTS PROFILE

PRODUCTS
BOOSTER ROTOR

TMC

DRUM BRAKE

DISC BRAKE

28

Study of Inventory Management

LOCATION OF DRUM BRAKE IN A CAR

29

Study of Inventory Management

ORGANIZATION FLOW CHART OF BOSCH LTD, JALGAON.

BOSCH Ltd JALGAON

TECHNICAL

COMMERCIAL

MANUFACTURING OF DISC BRAKE.

PURCHASE

MANUFACTURING OF BOOSTER,ROTOR AND TMC. ACCOUNTS MANUFACTURING OF DRUM BRAKE.

QUALITY MANAGEMENT

PERSONNEL / HUMAN RESOURCE

ENVIRONMENTAL & SAFETY DEPARTMENT

INFORMATION TECHNICAL FUNCTIONS SYSTEMS

30

Study of Inventory Management

CHAPTER-4 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Methodology is the process of collecting the information and helps to find out the solution to the topic selected by the researcher. Whereas Research helps to study and find out the techniques with the proper process. It is a systematic way of presenting information. Research methodology is the way to systematically solve the research problem.

31

Study of Inventory Management In order to collect the required information for the project the following methods were adopted:Research Methodology

Primary Method

Secondary Method

Primary Method Questionnaires Observation Discussion

Secondary Method Schemes Books/ Magazine Website

Primary Data The data is collected from the concerned staff of the company from the accounts department of the organization by interviewing them personally. The data was also collected with the purpose of evaluation.

Secondary Data
32

Study of Inventory Management Secondary data is provided by the organization in various forms. It includes referring of the manual of the company, from the previously recorded information in the accounts

department, local intranet facility provided by the organization and from the internet.

Research Process A research is a process of a systematic and in depth study or research of any particular topic, subject or area of investigation, backed by the collection, compilation, presentation and interpretation of relevant details or data.

The process and steps of research are as follows:Define Research Problem Review concepts and theories Formulate Hypothesis Research Design Collect Data Analysis Data Interpret and Report Feedback.

33

Study of Inventory Management

CHAPTER-5 THEORETICAL BACKGROUND

MEANING AND DEFINITION OF INVENTORY

The term inventory is originated from the French word Inventaire and the Latin Inventariom which implies a list of things found. The term inventory has a wider meaning then the term Materials or store.

34

Study of Inventory Management According to the Institute of Chartered Accountant of India inventory means Tangible Property held a) For sale in the ordinary course of business. b) In the process of production for sale. c) For rendering of services.

The term inventory refers to the stockpile of the products a firm is offering for sales and the components that make up the product. Inventories are the stocks of the product of a company, manufacturing for sale and the components that make up the product. The various forms in which inventories exist in manufacturing company are (1) raw material (2) work-in process, (3) finish goods and (4) store and spares. However, in commercial parlance, inventory usually includes store, raw material, workin process and finish goods. The term inventory includes raw material, work-in process, finish goods packaging, spares and others stocked in order to meet an unexpected demand or distribution in the future.

CLASSIFICATION OF INVENTORIES

35

Study of Inventory Management

Classification of Inventory

Finished goods Production Inventory Work-in Progress

MRO inventory

1. Production Inventory In production inventory there are two types of production inventory that are as follows: a) Material, which are purchases from the market like raw material and readymade Parts & components require for manufacturing of equipment. b) Special part or component manufactured in once own company & kept in stock for uses in manufacturing. 2. Maintenance Repair Operating supplies (MRO

Inventory) There are material purchase from vendor & require for Maintenance or production process. 3. Work in progress There are semi-finished products in various stages of production on the factory floor. 4. Finished goods inventory
36

Study of Inventory Management These consist of manufactured kept in warehouses or retail outlets & are meet for sale.

RISKS & COST ASSOCIATED WITH INVENTORIES

Holding of inventories exposes the firm to a number of risks & costs. Risk of holding inventories can be put as follows:-

i) Price decline This may be due to increase in the market supply of the product, introduction of a new competitive product price-cutting by the competitors etc. ii) Product deterioration This may be due to holding a product for too long a period for too long a period or improper storages condition. iii) Obsolescence This may be due to change in customers taste, new production technique improvements in the product design, specifications etc.

THE COSTS OF HOLDING INVENTORY

i) Material costs This includes the cost of purchasing the goods, transportation and handling charges less any discount allowed by the supplier of goods. ii) Ordering costs
37

Study of Inventory Management This includes the variable cost associated with placing an order for the goods. The fewer the orders lower will be the ordering costs for the firm. iii) Carrying cost This includes the exposes for storing the goods. It comprises storage costs, insurance costs, spoilage costs, cost of funds tied up in inventory.

INVENTORY MANAGEMENT IS A NECESSARY EVIL

Inventory is usually considered the necessary evil affecting your business cash flow. It is necessary because supply & demand never coincide precisely; it is an evil because it ties up cash. So here are some considerations that businesses are taking to minimize its necessity:

Reduce inventory: - Be careful though, inventory is a bigger problem For some businesses than for others. Service firms may not have much inventory apart from stationary. Manufacturers, on the other hand, have raw materials, work in progress, and finished goods. The key is to maintain adequate but not excessive inventory.

38

Study of Inventory Management Monitor inventory more often:- Dont let items sit idle! Consider automated inventory management software for inventory identification and control.

PURPOSE OF INVENTORY MANAGEMENT 1.To maintain independence of operations Provide optimal amount of cushion between work centers Ensure smooth work flow 2.To allow flexibility in production scheduling 3.To meet variation in product demand 4.To provide a safeguard for variation in raw material or parts delivery time Protect against supply delivery problems (strikes, weather, natural disasters, war, etc.) 5.To take advantage of economic purchase-order size

BENEFITS OF INVENTORY MANAGEMENT


39

Study of Inventory Management 1. of requirements to stock. 2. Re-order recommendations highlight urgent needs. Help Reduced stocking costs resulting from efficient matching

prevent Stock-outs. 3. Instant access to 24 month usage pattern aids decision

making reveals trends. Old data easily purged. 4. Automatic capture on audit trail of all stock movement

details helps resolve. 5. etc. 6. 7. 8. 9. Rapid stock and work-in progress evaluation. True multi-location without constraints. Easy monitoring of slow moving stocks. Automation of inventory checking cycles ensures that items Instant month-end valuation of receipt, issues adjustment

are not forgotten. Improves accuracy. 10. Automatic tracking of scrap rates and recalculation of safety levels reduces effort, improves control. 11. ABC analysis system focused attention on high value stock holdings.

INVENTORY CONTROL SYSTEM

40

Study of Inventory Management An inventory lays a very important role in the determination of the profile of the Business. The management should make a decision to when the quantities to order according to the requirement & the number of units to be kept in hands. There are three types of inventories that are raw material, work in process, & finished goods. In order to establish and develop a sound inventory, inventory control system it is necessary to consider the following factors: . Type of the business . The results to be achieved by the system. . The relevant system to be implemented.

ESSENTIALS OF INVENTORY CONTROL SYSTEM If the inventory control system is to be effective the following consideration are to be taken 1. Maintenance of proper record with regard to the units and the value of Various Items of the Inventories.

2. To ensure proper control over the receipt and of issue of the materials.

3. Materials should be properly identified and proper storage of facilities Should be made available for the location of the same.

4. There should be well-trained & capable person who should be

41

Study of Inventory Management entrusted with the responsibility of the implementation of the system to enable to perform their duties effectively.

5.

There should be proper co-ordination of the inventory

control system with the other department of business such as sales, purchases, & production department.

PRICING OF RAW MATERIAL Pricing of Raw Material: Several methods are used for pricing inventories used in production. The important ones are:-

FIFO Method: This method assumes that the order in which materials are received in the Stores is the order in which they are issued from the store. Hence, the material which is issued first is priced on the basis of the cost of material received earliest and so on.

LIFO Method: This method is the opposite of the FIFO method. It assumes that the Material, which is purchased, last is issued first. Hence, material issues are priced on the basis of the cost of most recent purchases.
42

Study of Inventory Management

Weighted Average Method: Under this method, materials issued are priced at the weighted average Cost of materials in the stock.

VALUATION OF STOCK

There are three important types of inventories carried by a manufacturing Organization. . Raw Material Inventory. . Work in Process inventory. . Finished goods inventory. The valuation of work in process & finished goods inventory depends on i) The method used for pricing materials ii) The manner in which fixed manufacturing overhead costs are treated. Since, the methods for pricing materials have been discussed earlier. It us

43

Study of Inventory Management look at how fixed manufacturing overhead cost are treated. For, this Purpose two systems of costing viz., direct costing & absorption Costing are used. Under direct costing, fixed manufacturing overhead costs are treated as period costs and not as product costs. Put differently, they are charged directly to the income statement and hence, not reflected in the valuation of inventories under absorption costing, on the other hand, fixed manufacturing overhead costs are treated as product (inventor able) costs and not period costs. Hence, inventory valuation reflects on allocated shares of fixed manufacturing overhead cost. Further, when the inventory level increases, the reported profit under direct costing is lower than the reported profit under absorption costing. By the Same token, when the inventory level decreases, the reported profit under direct Costing is higher than what it is under absorption costing.

INVENTORY CONTROL TECHNIQUES

Inventory control techniques are employed by the inventory control organization within the framework of one of the basic inventory models, viz. Fixed order quantity systems or fixed order period system. Inventory control techniques represent the
44

Study of Inventory Management operational aspect of inventory management and help realize the objectives inventory management and control. Several techniques of inventory control are in use and it depends on the convenience of the firm to adopt of the techniques. What should be stressed, however, is the need to cover all items of inventory and all stages, i.e. from the stage of receipt from supplies to the stage of their use. The techniques are most commonly used are the following, . Always better control (ABC) analysis . Fast moving, slow moving and Non-moving (FSN) analysis . Economic Order Quantity (EOQ) . Maximum - Minimum technique . Bin card system (KAN BAN) . Materials Requirement Planning (MRP) . Just In time (JIT) . VED Analysis

ABC ANALYSIS A firm may use different types of inventories. Some items may be very costly and/or slow moving whereas others are inexpensive. For effective inventory management it is

desirable to exercise rigorous control over those items whose


45

Study of Inventory Management Value is the highest and/ or slowest moving & pay little attention to relatively less costly items. This approach Always Better Control Analysis. The following procedure is suggested for developing an ABC analysis:1. List each item carried in inventory by number or some other designation. 2. Determine the annual volume of usage & rupee value of each item. 3. Multiply each items annual volume of usage by its rupee value. 4. Compute each items percentage of the total inventory in terms of annual usage in rupees. 5. Select the top 10 percent of all items, which have the highest rupee Percentage and classify them as A item. 6. Select the next 20 percent of all items with the next highest rupee Percentage and designate them B items. 7. The next 70 percent of all items with the lowest rupee percent age are Citems. ABC ANALYSIS OF RAW MATERIAL CATEGORY NO. OF ITEM (%) ITEM VALUE (%) of selective control is popularly known as ABC Analysis or

46

Study of Inventory Management A B C TOTAL 10 20 70 100 70 20 10 100

80 70 60 50 40 30 20 10 0 A B C NO. OF ITEMS(%) ITEM VALUE(%)

Interpretation:-As per the ABC analysis of Raw Material, in the A category 10 % materials, approximately value 70 %. In

the B category item of 20%, approximately value 20 %, and in the C category 70 % no. of items, value approximately 10 %.

FAST MOVING, SLOW MOVING AND NON-MOVING (FSN) ANALYSIS

47

Study of Inventory Management FSN stands for fast moving, slow moving and non-moving. Here classification is based on the pattern of issue from stores & is useful in controlling obsolescence. To carry out an FSN analysis the data of receipts or the last date of issue, whichever is later, is taken to determine the number of months, which have lapped since the last transaction, the terms are usually grouped in periods of 12 months.

MINIMUM --MAXIMUM TECHNIQUE The minimum maximum system is often used in connection with manual inventory control systems. The minimum quantity is established in the same way as any re order the point, the maximum is the minimum quantity plus the optimum lot - size. In practice, a requisition is initiated, when a withdrawal it reduces the inventory below the minimum level, & the order quantity is the maximum minus the inventory below the minimum level, and the order quantity is the maximum minus the inventory status after the withdrawal. If the final withdrawal reduces the stock level substantially below the minimum level, the order

quantity will be higher than the calculated EOQ.

BIN CARD SYSTEM (KAN-BAN) For each kind of material a bin card is a maintained and attached to bins or racks on which material is stored. It gives a running record of receipts, issuers and balance of stock. An entry will be made or passed from a basic voucher or a
48

Study of Inventory Management document at the time of each receipt and issue and final balance is arrived at (Calculated). These cards should tally with relevant accounts in the stores ledger.

ECONOMIC ORDER QUANTITY (EOQ) How much to order Major decision area where focus on decision regarding how much Quantity to order at a time is important case of inventory management. Number of techniques has been developed to help managers in this decision. Most widely used technique is Economic order Quantity. which represents the size of an order for which the total cost is minimum economy in purchasing. Total cost for this purpose consist 2 major costs a) Ordering cost or procurement cost. b) Carrying / Holding cost. Where,

These two types of cost are opposed to one another. The ordering cost decrease while carrying cost increases with every increase in Qty of purchase order. So the management has to take decision that there will be balance between 2 opposing cost to have EOQ with minimum total cost.

How to calculate EOQ:1) Mathematical approach calculate by formula.

49

Study of Inventory Management 2 AB EOQ = -------CxS Where, A = Annual usage in units B = Cost of placing an order C = cost per unit S = Carrying cost as a percentage of Aug inventory. If EOQ determined in terms of rupees where annual usage expressed in rupees by formula Annual usage = annual usage unit X unit cost. MATERIAL REQUIREMENT PLANNING (MRP) The discussion in inventory we had till now may be called a classical approach to inventory management and control, a somewhat a more elaborate and improved approach, called Materials Requirement Planning (MRP), has been developed in recent years and is gaining popularity in industry.MRP is a new solution to an old problem: having stock of materials always on hand when needed without carrying excess in entry. Highly dependent upon computer technology. The technique separates the various components and co-ordinates purchasing and delivery with production and. At the same time reduces the length of time when materials will be needed to meet the previously planned production schedule.
50

(in units)

Study of Inventory Management

JUST IN TIME Popularly known in its acronym JIT. Just in time is highly discussed in materials management circles these days. The concept is alternatively known as ZIPS (Zero Inventory Production System), MAN (Material as Needed), NOT (nick of time), or ZIN (Zero Inventory).As a concept, JIT means that virtually no inventories are held at any stage of production and that exact number of units achieved. The plant has a long line of racks waiting outside with full loads of automotive parts and components for the assembly line. As soon as one truck comes out at one end of the plant, another gets inside. There is no warehouse for the parts for example, are fed to the production line directly from the back of the truck.

VED ANALYSIS In this technique, inventory items are divided into three categories in the descending order of their critically. Thus V item includes vital items which need more attention because stock out of such items will result in halt age of production. These items must be stored adequately so as to ensure uninterrupted functioning of the plant. In E items are included those which are essential for efficient functioning of the operating system. Care has to be taken to ensure that they are always in stock. D stands for desirable items which do not have bearing on the production immediately but availability of
51

Study of Inventory Management such items will lead to more efficiency and less fatigue. VED Analysis can be very useful to capital intensive process industries.

CHAPTER-6 INVENTORY MANAGEMENT IN BOSCH

TYPES OF STOCK DEPARTMENT IN BOSCH In Bosch they are formulated the four types of stock department for store the material they are as follows:1. Receiving goods store Department 2. Direct Material Department
52

Study of Inventory Management 3. Indirect Material Department 4. Maintenance Department Now the functions of each department are as follows:-

1. Receiving Goods Store Department In this type of store department after receiving the goods as per concern with the order of customer or various types of goods send by a supplier arranging properly in this department. Firstly, when the material come on a gate then by the gatekeeper or security are check the quantity and the gate no. as per as p.o. i.e. purchase order. And after they are sending to the quality assurance & then for the store they are send into the Receiving store. And those are the manager of the store then he checks it in his under observation, and divides as per requirement of the production department.

2. Direct Material Department In the direct Material department mainly two types of stores. i) Finished goods stores Whatever raw material are in warded in receiving stores (as per given above) are checked by quality control department and accepted material are stores in finished goods stores. ii) Semi finished goods Stores If material sent by vendor is required, after as per vendor requirement Some process on it then these material are store in semi finished stores for further process. It may goes in machine shop, plating shop, bonding shop, process shop for

53

Study of Inventory Management blacodising, phospeting, power coating etc. In direct material stores BOSCH apply Kan-Ban System. 3. Indirect Material Department It includes materials which are indirectly used for making brakes. It means supportive material like Methanol, Ethanol, oil, cotton waste, thinner, adhesive warnish, tools , cutting oil , brake oil, drills , Allen key, diesel, gases, etc. there are certain material which required special care and for that Bosch also maintain cold storage. Raw materials are like thinner, warnish, araldite, required control temperature from 6c0 to 26c0. Here Bosch apply 5 S system & which keep material away from dirt, dust & eliminate search, arrange in sequence, neat & clean.

4. Maintenance department It includes material required for maintenance of machinery for making brakes. It includes electrical goods, electronic goods, rubber belts, etc. there are some self life item like rubber belts & for that Bosch apply FIFO method. All rejected materials are

return to the vendor by making rejection delivery challan.

54

Study of Inventory Management

PROCESS OF RECEIPT OF MATERIALS Goods are received By the security personnel

Entry is made in the Gate Inward Register (GI)

Stores informs QC about the receipt of goods and samples are collected for testing

Daily Process

Physical verification is conducted by contractual labour and Supervised by Stores

Stores Executive prepares the GRN against the PO created in SAP GI Register is manually reconciled with
55

the GRN prepared by Stores to ensure

Monthly Process

Study of Inventory Management

INVENTORY SYSTEM IN BOSCH

1. Perpectual Inventory System 2. Periodic Inventory System This are two important inventory systems follow by the Bosch are as follows:1. Perpetual Inventory System This is a system of maintaining records of physical movement of stock its correct balance and regular checking of stock. Perpetual means continuous Inventory system. In this company the store manager are keep records of all raw materials inventory daily and also maintain a value of stock of each individual item of stores at all times when demanded.

2. Periodic Inventory System In the company P.P.C. i.e. Production Planning Control department and Marketing department are decide the time of the production and maintain the Scheduling like 18, 20, 30 days and start the production activities & according to this period they are maintain the 18 days inventory in the Bosch. For raw Materials & maintain the inventory in the periodic system the quality and value Inventory are

56

Study of Inventory Management reviewed as a fixed time intervals i.e. weekly, monthly, or quarterly.

The stock position in 2009, month wise in Bosch as follows

Stores Stock-09
7

0 JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC

57

Study of Inventory Management

BOSCH TECHNIQUES FOR INVENTORY MANAGEMENT

Bosch is used following techniques for control the inventory:1. ABC Analysis 2. JIT Technique 3. KanBan Technique 4. FSN & Re-Order Level. They are explaining as follows:-

1. ABC ANALYSIS ABC analysis is a basic analytical material management technique which enables top management to gear the efforts. So that, output will be maximized this technique is popularly known as always better control. In Bosch Company ABC it is based on the value based technique. The ABC categorization of raw material it is a depends upon the value of raw material. As per the policy of BOSCH Ltd., The top 70% of the total stock value is considered to be the A Class items, e.g. Aluminum, Ferro, liners, back spares etc. The next 20% of the total stock Value of the items is the B Class items e.g. spring,
58

Study of Inventory Management stickers, rubber components, plastics etc.Whereas, the

remaining 10% of the items are considered to be the C Class Items.E.g. washer, nut bolt, springs etc.

ABC ANALYSIS IN BOSCH Item Stock Code Annual Value in Material category Rs. 3,056 C P1500306 P1500570 P1509173 P1550974 P1551514 P6022916 P6022935 P6023011 P6023030 P6201209P P6306087P P6306816P P6306820P P6306912P P6306927P P6306931P P6401012P 85,075 2,475 13,998 7,889 4,92,920 16,443 12,335 17,885 5,57,080 8,065 4,876 40,050 13,734 95,220 79,655 7,440
59

B C C C A C C C A C C B C B B C

Study of Inventory Management P6503318P P7431107 P7431536 19,348 16,789 5,667 Rs.15,00,000 C C C

A P6022916 P6201209P 10% of 20 items 70% of Rs.15,00,000

B P1500570 P6306820P P6306931P P6306931P 20% of 20 items 20% of Rs.15,00,000

C All 14 remaining items 70% Of 20 items 10%of Rs.15,00,000

No. of Items
16 14 12 10 8 6 4 2 0 A B C No. of Items

60

Study of Inventory Management

Items Value(In Rs.)


1200000 1000000 800000 600000 400000 200000 0 A B C

Items Valu(In Rs.)

2. JIT (JUST IN TIME)TECHNIQUE The just-in-time it is an newly developed technique for inventory mgt. The inventory it is an dead money of the every company. So, therefore they are today used JIT Technique for to minimize their dead money. The major benefit of JIT is the co. can purchased the raw materials in the few hours. In the JIT technique three parties are involved. i.e. Company Vendors The vendor supplies the material to the logistics not directly to the company. & then co. has picked up the material as per their requirement and start the production activities. JIT it is saved Logistics

61

Study of Inventory Management the time as well as minimize the space of the raw material for the store. Its a major benefit of JIT to the Bosch Company.

3. KAN-BAN TECHNIQUE Kan-ban it is a Japanese technique for maintain the inventory of raw material. it is newly developed technique in the modern companies. It is also called as two-bin system. In the Kan-Ban system the store keeper has been checked the racks regularly and refilling the raw material in that racks regularly. If the any rack boxes is empty then the production line is disturb. So therefore, there is need to refilling the all racks regularly by the store keeper.

4. FSN & RE-ORDER LEVEL FSN FSN means Fast Moving, Slow Moving & Non Moving components (raw Material) in the Bosch Chassis Ltd. They are divided the 3 categories product i.e. A, B, & C and they are follows fixed slab for the FSN levels.
62

Study of Inventory Management i) F: - The Fast moving raw materials are continuously moving from stock dept. to Production dept. ii) S: -In the Slow Moving Material they are issues less than 10% of stock for the Production process. iii) N:-In the non moving product the dividation is made on the basis of A, B, & C Now the method for non moving in Bosch as follows: A: - The A category raw materials are not moving before the 4 months. B: - The B category raw materials are not moving before the 6 months. C: - The C category raw materials are not moving before the 12 months.

RE-ORDER LEVEL In the Bosch Ltd. Re-order level is followed for only indirect material. When the quantity reaches to certain burden then fresh order is place again for new lot of materials, such level is done as per order level.

63

Study of Inventory Management

CHAPTER- 7 RATIO ANALYSIS

INVENTORY TURNOVER RATIO Inventory turnover ratios are calculated to indicate whether inventories have been used efficiently or not. For 2007

64

Study of Inventory Management

Sales Avg. Inventory 5,30,67,62,000

44,34,50,000 = 11.97 times.

For 2008 Sales Avg. Inventory

5,31,16,92,000 56,39,00,000 = 9.48 times.

For 2009

65

Study of Inventory Management

Sales Avg. Inventory

5,92,32,04,000 61,14,44,000

= 9.69 times.

Inventory TurnoverRatio
14 12 10 8 6 4 2 0 2007 2008 2009

Interpretation This ratio shows how rapidly the inventory is turning into receivable through sales. The inventory turnover ratio is 11.97 in 2007. It is decreased up to 9.48 in 2008. And it is 9.69 in 2009. The above analysis shows that the inventory management is very efficient throughout the period of study. INVENTORY HOLDING PERIOD

66

Study of Inventory Management

For 2007 365 Inventory Turnover Ratio 365 11.97

= 30.49 = 30 Days.

For 2008 365 Inventory Turnover Ratio 365 9.48

= 38.50 = 39 Days. For 2009

67

Study of Inventory Management

365 Inventory Turnover Ratio

365 9.69 = 37.67 = 38 Days.

Inventory Holding Period


45 40 35 30 25 20 15 10 5 0 2007 2008 2009

68

Study of Inventory Management RAW MATERIAL INVENTORY TURNOVER RATIO For 2007 Annual consumption of raw material Avg. raw material inventory

3,30,12,19,000 25,07,20,000

= 13.17

For 2008 Annual consumption of raw material Avg. raw material inventory

3,56,19,13,000 33,91,15,000

= 10.50 For 2009

69

Study of Inventory Management

Annual consumption of raw material Avg. raw material inventory 3,89,52,11,000 32,12,74,000

= 12.12

Raw Material Inventory Turnover Ratio


14 12 10 8 6 4 2 0 2007 2008 2009

FINISHED GOODS INVENTORY TURNOVER RATIO


70

Study of Inventory Management For 2007 Cost of goods sold Avg. inventory of finished goods at cost

5,30,67,62,000 6, 99, 32,000

=75.88

For 2008 Cost of goods sold Avg. inventory of finished goods at cost

5,31,16,92,000 11, 49, 46,000

=46.21

For 2009

Cost of goods sold

71

Study of Inventory Management

Avg. inventory of finished goods at cost

5,92,32,04,000 13, 77, 54,000.5

= 42.99

Finished Goods Inventory Turnover Ratio


80 70 60 50 40 30 20 10 0 2007 2008 2009

INVENTORIES (Rs. In Thousands)

72

Study of Inventory Management Current Assets Raw Materials and Components Stores & spares Work-In-Progress Finished Goods TOTAL 31-12-2008 4,12,357 42,217 52,493 1,35,841 6,42,908 31-12-2009 2,54,286 34,320 1,51,705 1,39,668 5,79,979

INTERPRETATION The above table shows that the total inventory in the year 2009 is at Rs.5, 79,979 as against of Rs. 6, 42,908 in the year 2008, which reflects that liquidity position is good. The above table shows that there has been decrease in stocks in the current year as against to last year, which indicates that sales have taken place significantly in the current year that is 2009.

73

Study of Inventory Management

CHAPTER-8 FINDINGS, CONCLUSIONS & SUGGESTION

FINDINGS AND CONCLUSION

Observation: turnover ratio i.e.

In 2008 the company has low inventory

9.48 times but in 2009 it is 9.69 times. Conclusion: management is efficient throughout the period of study. The above analysis shows that the inventory

Observation: 2008, and in

The inventory holding period is 39 days in

the year 2009 it is 38 days.

74

Study of Inventory Management Conclusion: between the holding period ratio but it is good for companys point of view that the company is holding inventory for minimum days. It shows that there is not much difference

Observation: The total inventory in the year 2009 is at Rs.5, 79,979 as against Of Rs. 6, 42,908 in the year 2008. Conclusion: company is good. The Above figure shows that there has been decrease in stocks in the Current year as indicates that sales have taken place significantly in the current year that is 2009. against to last year, which It reflects that the liquidity position of the

In Bosch chassis the inventory management system is run in well away. The company holds minimum stock of raw material for avoiding of wastages. The company uses just-in-time [JIT] inventory system. The company also uses the ABC Analysis, FSN Analysis, KANBAN techniques for inventory management. The Bosch has been maintained the 18 days inventory & it has tries to increased sales & reduced the storage cost. In Bosch chassis systems they are generally maintain the inventory for raw material, work -in -process and finished goods.
75

Study of Inventory Management

SUGGESTIONS 1. Inventory is major part of company. So, the company should have better Management of inventory.

2. Proper training & guidance to the workers should gives for handling the material & operation process with due care.

3. The company should have maintained the maintenance department of machines. Because its avoids interruption in production system.

4. The company should maintain the appropriate the stock of raw material & avoided the maximum level of inventory.

LIMITATIONS OF THE STUDY

1. Inventory management is the continuous process & it may study over a year. But field work for 60 days only, and it is a vast topic also, so study and analysis on this topic within this limited period was not sufficient.

2. Due to the busy schedule, some of the staff members were not in a position to spare time for guiding the topic or giving any information.
76

Study of Inventory Management

3. All the programs are going under SAP System so there are the limitations regarding the that company only. 4. Maximum secondary data is used. analysis of the data without user of

CHAPTER-9 BIBLIOGRAPHY

77

Study of Inventory Management BIBLIOGRAPHY

INVENTORY MANAGEMENT - Bhagirath Singh.

FINANCIAL MANAGEMENT - Mr. Ravi M. Kishore . PRODUCTION & OPERATION MANAGEMENT - Dr. B.S.Goel

ANNUAL REPORT Companies Annual Report 2007. Companies Annual Report 2008. Companies Annual Report 2009.

WEBSITE www.boschindia.com

78

Study of Inventory Management

CHAPTER-10 ANNEXURE

Balance sheet as on December 31,2007 Rs. In Thousands [TINR] Particulars Sources of funds Shareholders fund Capital Reserve & Surplus Loan Funds Secured Loans Schedule Amt. Amt.

1. 2. 3.
79

207930 1795253 12184

2003183

Study of Inventory Management Unsecured Loans Deferred Tax Liability(Net) Application Of Funds Fixed Assets Gross Block Less-Depreciation Net Block Capital Work- in Progress Investments Current assets, Loans & Advances Interest accrued on invest. Inventories Sundry debtors Cash & Bank Balances Loans & Advances Less-current Liabilities and Provisions Liabilities Provisions Net Current Assets 4. 425109 TOTAL 437293 44500 2484976

5.

2556930 1293359 1263571 256746 360796

1520317

6.

7. 8. 9. 10.

10321 482085 1019716 146786 341954 2000862

11. 1140979 256020 1396999 TOTAL

603863 2484976

ABSTRACT As the title of the project s ug g es t , i t i s a l l a bo u t t he s t u dy o f th e investment habits of working women in Bhubaneswar & the aim of the study is to find out the cause of such behavior. T h e number of working women is consistently i n c r e a s i n g i n Bhubaneswar. It is seen that working women, as a growing segmentof the population, is increasingly becoming more aware of financialservices
80

Study of Inventory Management and the various investment options that are available in themarket. The women now in the upcoming Tier-2 & Tier-3 cities arebecoming more independent and responsible. They want to securet h e i r f u t ur e a n d w a n t t o ma ke mo r e r e t ur ns o n t hei r i nv es tm e nt. Their thinking and perception is changing and they are more likely tot a k e r i s k a nd a da p t to t he f ea tu r es o f v a r i o u s f i n a n c i a l s er v i c e s products.

T h us , p a r t i ci pa ti o n o f w o m e n i n ca p i ta l m a r k e t r el a t e d investments has given an all together new segment to the financialsector, which is growing very steadily.Wi t h t hi s p r o j e ct I g e t a n o p po r t u ni ty to m e et w o me n , w o r ki ng i n various sectors in the city of Bhubaneswar & analyze their investingbehavior & patterns.

AbhisekMitra, U408001 1

81

Study of Inventory Management

82

Study of Inventory Management

Consumer Behavior Project LITERATURE REVIEW Financial services in India http://www.mumbaispace.com/financialplanning/financialservices-in-india.htm I n l a s t f ew y e a r s , I n d i a ha s em er g e d a s t h e o n e o f t h e mo s t r a pi dl y g r o w i ng e c o no mi e s i n t he w o r l d. I n d i a ha s b ee n ca t eg o r i z ed w i t h nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since thet i m e, I n di a f i r s t o p e ne d i ts g a te s to f o r ei g n i nv es tm e nt (F D I & F I I ), there has been a complete turnaround. Now the traditional Hindu rateof growth is a thing of past and clocking 8%-9% GDP growth rate is thecommon norm. India along with other Asian powerhouse China makesfor the fastest growing nations in the entire world. E v e n i f w e t a k e t h e c a s e o f o n g o i n g g l o b a l r e c e s s i o n , I n d i a h a s managed to perform far better than other nations. Right from bankingsystem to financial regularities, the country has thrived on disciplinea n d o u t - p e r f o r m a n c e . T h e b o o m i n g I n d i a n e c o n o m y r e s u l t e d i n widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India. A

bhisekMitra, U408001 2

83

Study of Inventory Management

84

Study of Inventory Management

Consumer Behavior Project F i n a n ci a l s er v i c es i n I nd i a ha s ta ke n a g i a n t l ea p f r o m t h e da y s o f s t a n d i n g i n b a n k s q u e u e for several hours for opening a s a v i n g account or trying to get some fixed deposits (FD) done. The financial serviceshave increased manifold and now people have the choice to chooset h e o n e t h a t m o s t s u i t a b l y f i t s t h e b i l l . T h e r e a r e s ev er a l s er v i c es l i k e b r o ki n g f i r ms , investment services,f i n a n ci a l c o n s ul t i n g , ev e r g r ee n na ti o na l b a n ks , n um er o us p r i v a t e banks, mutual funds, car and home loans,e q ui ty m a r ke t a n d o t h er ba n ki ng s er v i c es . S er v i c es a r e m a ny a n d offered by blue chip names of the industry. Most of the companies infinancial segment offer taxation services, project consultancy servicesa n d a l l t h e s e r v i c e s o f w i d e f i n a n c i a l g a m u t . Whether its taking acar loanor booking your favorite house, going for pe ns i o n pl a n o r g e t t i n g y o u r c h i l d i n s u r e d , n u m e r o u s a t t r a c t i v e financial services are available at affordable COST.Personal banking services have acquired an altogether new meaning.Now customers have multiple choices to choose from. One can find allthe financial services on the internet that are just a call away. What is investment? http://en.wikipedia.org/wiki/Investment

85

Study of Inventory Management Investment is the commitment of money or capital to purchasefinancial instruments or other assets in order to gain profitableA

bhisekMitra, U408001 3

86

Study of Inventory Management

87

Study of Inventory Management Investment Habits of Working Women Download this Document for FreePrintMobileCollectionsReport Document Info and Rating Abhisek Mitra Share & Embed Related Documents PreviousNext 1.

p.

p.

p.

88

Study of Inventory Management 2.

p.

p.

p.

3.

p.

89

Study of Inventory Management

p.

p.

4.

p.

p.

90

Study of Inventory Management

p.

5.

p.

p.

p.

6.

91

Study of Inventory Management

p.

p.

p.

7.

p.

92

Study of Inventory Management

p.

p.

8.

p.

p.

93

Study of Inventory Management

p.

More from this user PreviousNext 1.

43 p.

4 p.

33 p.

2.
94

Study of Inventory Management

14 p.

6 p.

Add a Comment

Upload a Document Search Documents


Follow Us! scribd.com/scribd twitter.com/scribd facebook.com/scribd


95

Study of Inventory Management


About Press Blog Partners Scribd 101 Web Stuff Support FAQ Developers / API Jobs Terms Copyright Privacy

Copyright 2011 Scribd Inc. Language: English

Balance sheet as on December 31,2008

Particulars

Schedule

Amt.

Amt.

96

Study of Inventory Management Sources of funds Shareholders fund Capital Reserve & Surplus Loan Funds Unsecured Loans Deferred Tax Liability(Net) Application Of Funds Fixed Assets Gross Block Less-Depreciation Net Block Capital Work- in Progress Investments Current assets, Loans & Advances Interest accrued on invest. Inventories Sundry debtors Cash & Bank Balances Loans & Advances Less-current Liabilities and Provisions Liabilities Provisions Net Current Assets

1. 2. 3.

207930 2459495

2667425 411421 31944 3110790

TOTAL

4.

2689828 1355803 1334025 531409 1865434 755443

5.

6. 7. 8. 9.

15822 642908 701656 597091 334989 2292466

10. 1587456 215097 1802553 TOTAL

489913 3110790

Rs. In Thousands [TINR]

Balance sheet as on December 31,2009 Rs. In Thousands [TINR]


97

Study of Inventory Management

Particulars Sources of funds Shareholders fund Capital Reserve & Surplus Loan Funds Unsecured Loans Deferred Tax Liability(Net) Application Of Funds Fixed Assets Gross Block Less-Depreciation Net Block Capital Work- in Progress Investments Current assets, Loans & Advances:Interest accrued on invest. Inventories Sundry debtors Cash & Bank Balances Loans & Advances Less:-current Liabilities and Provisions:Liabilities Provisions Net Current Assets

Schedule

Amt.

Amt.

1. 2. 3.

207930 2911632

3119562 397990 142721 3660273

TOTAL

4.

3420018 1575590 1844428 134224

1978652 560067

5.

6. 7. 8. 9.

25371 579979 814046 687554 582762 2689712

10. 1426257 141901 1568158 TOTAL 1121554 3110790

GOODS RECEIPT NOTE Bosch Chassis Systems India Ltd.


98

Study of Inventory Management N.H.6, Bambhori, Jalgaon-425001. No.DateDirect Material Delivery Challan: No. & Date Purchase Order: No. & Date Excise Invoice: No. & Date L.R. /R.R.: No. & Date Gate Entry: No. & Date Rec. Location Item Code & Description Challan Qty. Unit Challan Cases Recd Cases

Received Qty.

Accepted Destroyed Rejected Rework Scrapped Qty. Qty. Qty. Qty. Qty.

Stores Remark: Q.C. Comments:

Cleared On: Paid On Receiving Insp. Sign Stores Sign Sign

Stores Sign

P.V.No: P.V.Amt.: Accounts P.V.Date: Sign Due D/N Date: Amt.:

99

Study of Inventory Management

100

Study of Inventory Management Name & Address Of Mfg. NO.: Bosch Chassis Systems India Ltd. N.H.6, Bambhori, Jalgaon-425001. DATE: CHALLAN-ANNEXURE-2 For movement of inputs of partially processed goods under rule 4(5) (a) of cenvat credit Rules, 2002 from one factory to VENDOR CODE: another Factory for further processing/operation. Sr.N ITEM CODE & o DESCRIPTION OF GOODS UN QUANTI IT TY

VAT TIN: CST TIN: REGN. NO.: MTL SENT THRO:ROAD CATEGORY:RETUR NABLE RATE/UNI AMOUNT REMARKS T

Date: Nature of processing/Mfg. Expected duration of Time of Issue: Required to be done: processing/fgr.:180 days Factory /Place of processing/Mfg.: Place: Date: 1 Date and time of dispatch of finished goods to parent factory/another Manufacturer and entry No and date of receipt in the account in processing factory. 2 Quantity dispatched (Nos, /weight/liter/meter) and entered in account. 3 Nature of processing /Manufacturing Done 4 Quantity of waste material returned to the parent factory or cleared for home consumption Invoice No. and date. Quantum of duty paid(Both figure and words) Place: Date: Name of the factory and Address. Signature Of Processor PART 3 (To be filled by parent factory in duplicate of challan or receipt of goods from processing factory ) For Bosch Chassis Systems India Ltd.
101

Study of Inventory Management

Authorized Signatory Certified that I/We have received the goods removed under the above challan No. FOOT NOTE/REMARKS: ACKNOWLEDGEMENT: Please acknowledge receipt of returning acknowledgement Copy RECEIVED ABOVE MATERIAL IN GOOD CONDITION: Duty signed within seven days of receipt at your end. No complaint will be entertained after seven days.

102