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A study on VED analysis done at SRI IYYAN TEXTILE MILL PVT LTD,

Coimbatore

PROJECT REPORT
Summer project report submitted to BHARATHIAR
UNIVERSITY in partial fulfillment of the requirement of the degree of
bachelor of business management

CONTENTS

Synopsis
1. Introduction to the study
2. Introduction to the industry
3. Introduction to the organization
4. Objectives
5. Limitations
6. Methodology
7. Analysis and interpretation
8. Findings
9. Suggestions
10. Conclusions
Bibliography
Appendix

SYNOPSIS
The project discuss in detail the inventory control in stores department. The
report covers in detail the raw materials, supplier name and material price.
The positive and negative deviations have been highlighted and various
reasons for deviation have been analyzed.

1. INTRODUCTION TO THE STUDY


It is a study about the inventory control in stores department at SRI IYYAN
TEXTILE MILLS PVT LTD. It is about the raw materials usage and need of
raw materials in the store department
Inventory generally refers to the material in stock. It is also called the idle
recourse of an enterprise. Inventories represent those items which are either
stocked for sale or they are in the process of manufacturing or they are in the
form of material which are yet to be utilized.
Inventory control is planned approach of determining what order, when to
order and how much to order and how much to stock so that cost associated
with buying and storing are optimal without interrupting production and
sales.
This research finds the need for material in the stores department.

2. INTRODUCTION TO THE INDUSTRY

The textile industry is a group of related industries which uses a variety of


natural (cotton, wool, etc.) and/or synthetic fibres to produce fabric. It is a
significant contributor to many national economies, encompassing both
small and large-scale operations worldwide. The sequence of the
manufacture of textiles is illustrated in the flow diagram in Figure 1 (see
process description).
Subdivision of the textile industry into its various components can be
approached from several angles. According to reference [10], the classical
method of categorizing the industry involves grouping the manufacturing
plants according to the fibre being processed, that is, cotton, wool, or
synthetics. The modern approach to textile industry categorization, however,
involves grouping the manufacturing plants according to their particular
operation.

Wool Scouring;

Wool Finishing;

Dry Processing;

Woven Fabric Finishing;

Knit Fabric Finishing;

Carpet Manufacture;

Stock and Yarn Dyeing and Finishing.

Traditionally, the textile industry is very energy, water, and chemicalintensive. About 60% of the energy is used by dyeing and finishing
operations [14]. Environmental problems associated with the textile industry
are typically those associated with water pollution. Natural impurities
extracted from the fibre being processed along with the chemicals used for
processing are the two main sources of pollution. Effluents are generally hot,
alkaline, strong smelling and colored by chemicals used in dyeing processes.
Some of the chemicals discharged are toxic. Other environmental issues now
considered equally important and relevant to the textile industry include air
emissions, notably Volatile Organic Compounds (VOC) [10].

COMPANY PROFILE
User id

- sri_iyyan

Name of the firm

- Sri Iyyan Textiles Mills (P) Ltd.

Kind of business

- yarn, Coimbatore

Contact person

- Mr.Joghan

Address

- S.F.NO.414, Mettupalayam road,


N.S.N.palayam(po),
Coimbatore-31

City

- Coimbatore

State

- Tamil Nadu

Phone

- +91-422-2461125,2902555.

Tel fax

- tal-422-2461047

E-mail

- iyyangold@yahoo.com

Website

- admsonline.net

Regd.office

- 67, bharathi park, 7th cross road,


Saibaba colany,
Coimbatore-43

Phone

- +97-422-2435347, +91-422-2443087.

OBJECTIVES
To find out from where the raw materials are procured for the
production
To find out the various materials maintained in stores
To find out the stock level in the stores department.
To determine the VED analysis

LIMITATIONS
Time was a constraining factor
Analysis were done only in the stores department at SRI IYYAN
TEXTILE MILL PVT LTD
The study cannot be generalized to other department or other
companies

RESEARCH METHODOLOGY
It may be understood as a source of studying how research is done
scientifically and steps that are generally adopted by the researcher in
methodology result using research problem along with logic behind them.
Research methodology results in using research methods through which
solutions are arrived for the problem of research.

MEANING OF RESEARCH
A careful investigation or inquiry through search for new facts in any branch
of knowledge.
RESEARCH DESIGN
A research design is the arrangement, of conditions for collection and
analysis of data in a manner that aims combine relevance to the research
purpose with economy in procedure
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and facts finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of
affairs as it exists at present.

ANALYSIS AND INTERPRETATION

VED ANALYSIS:
VED Analysis means, Vital, Essential and Desirable Analysis.It is the
Analysis for monitoring and control of stores and spares inventory by
classifying them into 3 categories viz., Vital, Essential and Desirable. The
mechanics of VED analysis are similar to those of ABC Analysis.

VEDCLASSIFICATION:
While in ABC, classification inventories are classified on the basis of their
consumption value and in HML analysis the unit value is the basis,
criticality of inventories is the basis
for vital, essential and desirable categorization.
The VED analysis is done to determine the criticality of an item and its
effect on production and other services. It is specially used for classification
of spare parts. If a part is vital it is given V classification, if it is essential,
then it is given E classification and if it is not so essential, the part is given
D classification. For V items, a large stock of inventory is generally
maintained, while for D items, minimum stock is enough.

VITAL PRODUCTS :
Vital items are those items the unavialbility of which will stop the
production.
According to the above description for VED, the following classification
was made.

Cone bag
Cops bag
Cut pices
Tieyarn
Diesel
Guide ring
Round nipple
RSB top rollers
Bearings
Contactor
Simens eimenta
Reeling index wheel
Connector coll
Fork bearing
Stripping fillet
Lam connecting puller and bolt
Relay sprocher
Combi controller
MSB box hager
Pressure hook for 3rd row
Pressure pin

ESSENTIAL PRODUCTS :

Essential items are those items where stock out costs are very high.
Belt(V)
1.Timing belt
2.Flat belt
Grease RR3
Grease AB3
Oil :
System 220
System 150
Servo 68
Hp 90
EE10
Distal water
Gearing wheel
emery sheet
Motor pulley
Apron
Spindle tap
Super glow
Ring travellor
Safety valve
Strapping role
Strapping clip
M seal
Insulation tap

DESIRABLE PRODUCT :
Desirable items will not cause any immediate production
stoppages and their stock out costs are nominal.

Tube light(choke)
Push button
Nailon press
Fusk unit
OHTC guide roller wheel
OHTC half guide wheel
OHTC drive wheel
Safety valve
Rust lick 631
Control adaptor
Tension fork
Greese slipple
Spindle breaker
Separator
Solenoide valve
Pressure gauge
One way switch 6A
Motor cooling fan

5 pin sock cut


3 pin tap

SUPPLIER AND PRICE DETAILS:


ITEM NAME

SUPPLIER NAME

PRICE (per
piece)

Guide ring

SWA Industries

Rs. 42.00

(Coimbatore)
SHEEL

Oil seal

Rs.75.00

(Coimbatore)
Pressure
for

hook KBR Industries


(coimbatore)

3rd row
Pressure pin

ERSA Industries

Bearings
Regulator

Rs.18.50

(Coimbatore)
VISAKA Industries

Rs.72.00

(Coimbatore)
KTR Industries

Rs.23.50

(Coimbatore)
KMC Engineering
(Coimbatore)

Limit switch

Rs.22.00

(Coimbatore)
SWITA Industries

RSB top rollers

Rs.15.00

(Coimbatore)
SWITA Industries

Round nipple

Rs.37.00

Rs.15.00

ITEM NAME

Contactor coll

SUPPLIER NAME

PRICE (per piece)

RMB Industries

Rs.20.00

(Coimbatore)
Cone bag

ESWARI

Industries Rs.17.00

(Coimbatore)
Cops bag

ESWARI

Industries Rs.38.00

(Coimbatore)
Cut pieces

Sandhamani industries

Rs.17.00

(Coimbatore)
Emery sheet

KMC engineering

Rs.7.50

(Coimbatore)
Apron
Spindle tap
Super glow

TVR Industries
(Coimbatore)
HINDUSTAN spinners
HINDUSTAN spinners

Rs.45.00

(Coimbatore)
Rs.75.00

(Coimbatore)
Narasimha industries

Taflon tap

Rs.15.00

(Coimbatore)

HINDUSTAN spinners
Strapping clip

Rs.25.00

(Coimbatore)

HINDUSTAN spinners
Strapping roll

Rs.15.00

Rs.32.00

(Coimbatore)
VISAKA Industries

Rs.42.00

Guide ring

(Coimbatore)
ERSA Industries

Insulation tap

(Coimbatore)

Nailon press

SWITA Industries

Rs.27.00

Rs.47.50

(Coimbatore)
OHTC
guide

half KMBR Industries


(Coimbatore)

Rs.83.50

KMC engineering

Rs.22.50

Wheel
Safety
valve(4/3inch)
Control adaptor
Spindle breaker
Separator
Tieyarn

(Coimbatore)
KK Industries

Rs.62.00

(Coimbatore)
HINDUSTAN spinners

Rs.57.00

(Coimbatore)
TVR Industries

Rs.31.00

(Coimbatore)
Sandhamani industries

Rs.45.00

(Coimbatore)
Sandhamani industries

Rs.75.50

(Coimbatore)
Grease

KK Industries
(Coimbatore)

Gear wheel

Rs.110.00

Cone bag
Cops bag
Cut pieces
Tieyarn
Belt(V)
1. Timing belt
2. Flat belt
Bearing
Grease RR3
Grease AB3
Oil:
System 220
System 150
Servo 68
Hp 90
EE 10
Distal water
Oil seal
Gear wheel
Emery sheet
Motor pulley
Apron
Spindle tap
Super glow
Ring travellor
Sutly
Strapping role
Strapping clip
M seal
Insulation tap

MATERIALS THAT ARE USED REGULARLY:

Bush button
Nailon press
Fusk unit
OHTC guide roller wheel
OHTC half guide wheel
OHTC drive wheel
Safety valve(4/3inch)
Rust lick 631
Control adaptor
Tension fork
Greese slipple
Spindle breaker
Separator
Solenoide valve
Pressure gauge
One way switch 6A
Motor cooling fan
5 pin sock cut
3 pin tap
Taflon tap
Guide ring
Tube light(chock)

FINDINGS
The cost of material for the production range from rs. 7.50 to 110(per
piece).
Most of the suppliers of the raw materials are in Coimbatore, so the
supply of raw materials do not interrupt the production.
By using VED analysis we can conclude quantity level of raw
materials based on
1. vital items are costlier than comparative other but it most
wanted for the regular production
2. In essential items comparative with the vital items comparative
with that must of important but it also required for the
uninterrupted production.
3. records of the goods coming into the company and going out
are being noted.

SUGGESSTIONS
The company should improve its technology in stores for reducing
the idle items of machines
The company should concentrate more on the arranging the
materials in the stores for avoiding the confusions.

CONCLUSION
This project report has enabled me to get a clear insight on the inventory
control in stores department and supplier name details of the company. This
report will be very helpful to the management because they must be
conscious of the inventory in the stores department. By the VED analysis
have analyzed the important raw materials. So we can maintain the raw
materials by using VED analysis. It may reduce idle time of machines and
workers. Thus this study will be helpful in maintaining raw materials
correctly.