Professional Documents
Culture Documents
Materials Management in Essar Steel PDF
Materials Management in Essar Steel PDF
MANAGEMENT
ESSAR STEEL ORISSA LIMITED
PARADEEP, ORISSA
8 MTPA INTEGRATED IRON ORE PELLET PLANT
UNDER THE GUIDANCE OF
Session 2009-11
1|Page
Acknowledgement
This project report in its present form and state is the outcome of the
study of the MATERIALS MANAGEMENT IN ESSAR STEEL,
Paradeep, to understand the process of materials management, as part
of our summer training.
I would like to thank Mrs. Raj Laxmi, HR manager who gave me this
opportunity to do my project in ESSAR STEEL.
I would like to thank all the members of ESSAR STEEL, Paradeep who
gave their valuable time and helped us in completing my project in due
time.
I would also like to thank Mr. Sashi Bhusan Mohanty who helped me to
do my project in a company like ESSAR STEEL.
2|Page
CERTIFICATE
This is to certify that Mr. Sayed Munir Noor bearing roll no
.RMC-MBA 028/09-11, a first year student of Ravenshaw
Management Centre, Cuttack has successfully completed
summer internship report on the project titled, MATERIALS
MANAGEMENT IN ESSAR STEEL at ESOL Paradeep, for partial
fulfilment of the award of MBA degree under my guidance.
To the best of my knowledge and belief, the work has not been
submitted anywhere else for the award of any degree or
discipline.
Date:
Ravindra Moharana
Place: Paradeep
Snr.Manager (stores)
3|Page
ESSAR STEEL
DECLARATION
Place :
4|Page
Date :
Noor
Sayed Munir
5|Page
Contents
ESSAR AT A GLANCE...................................................Error! Bookmark not defined.
Genesis and evolution.....................................................Error! Bookmark not defined.
Corporate profile.............................................................Error! Bookmark not defined.
Project.............................................................................Error! Bookmark not defined.
Essar Projects Limited drives our businesses in the construction sector. We own one of
Asias largest banks of sophisticated construction equipment........Error! Bookmark not
defined.
Power..............................................................................Error! Bookmark not defined.
Communications..............................................................Error! Bookmark not defined.
Shipping ports & logistics................................................Error! Bookmark not defined.
Current status........................................................................Error! Bookmark not defined.
layout of ESSAR paradeep
plant...........................................................................................17
MATERIALS MANAGEMENT.................................................Error! Bookmark not defined.
Areas of Concentration.......................................................Error! Bookmark not defined.
Goals...............................................................................Error! Bookmark not defined.
Quality Assurance...........................................................Error! Bookmark not defined.
Standards........................................................................Error! Bookmark not defined.
Promoting Sustainability..................................................Error! Bookmark not defined.
Improving circulation infrastructure..................................Error! Bookmark not defined.
Benefits...........................................................................Error! Bookmark not defined.
FUNCTIONS AND DUTIES OF STORES DEPARTMENT:-.......Error! Bookmark not defined.
standard operating
procedure................................................................................................27
Safety measures.................................................................Error! Bookmark not defined.
Perpetual Inventory.........................................................Error! Bookmark not defined.
A monthly stock count procedure would involve a complete stock count i.e. counting the
entire inventory. A weekly perpetual inventory system on the other hand would involve
6|Page
counting some of the quantity on a weekly basis such that the entire stocks are counted
at least twice a year or once every quarter. Inventory Schedule...Error! Bookmark not
defined.
Inventory Count Sheets...................................................Error! Bookmark not defined.
Cut Off Procedures..........................................................Error! Bookmark not defined.
Third Party Stocks...........................................................Error! Bookmark not defined.
Comparison with System Stock.......................................Error! Bookmark not defined.
Variance Analysis............................................................Error! Bookmark not defined.
physical verification of capital
goods .....................................................................................41
inventory of
steel....................................................................................................................54
figures....................................................................................................................................5
6
physical verification of steel..................................................................................................58
inventory of cement..............................................................................................................60
stacking procedure of cement............................................................................................61
inventory of diesel...............................................................................................................64
stacking procedure of diesel...............................................................................................64
problems.............................................................................................................................65
suggestions.........................................................................................................................65
stores credit to management..............................................................................................66
references.........................................................................................................................67
7|Page
ESSAR AT A GLANCE
8|Page
VISION
we will be a respected global entrepreneur, through the power of positive action.
MISSION
We are committed to innovative growth, through our personal passion, reinforced by
a professional mindset, creating value for all those we touch.
Spirit
The Essar Group has changed significantly in recent years and continues to evolve, to keep
pace with the changing times. We have undertaken a sustainable journey of transformation
by foraying into new international markets, and exploring new business areas in a bid to
keep our entrepreneurial spirit alive, and to continue growing.
To mark the phenomenal growth witnessed over the last four decades, the Group recently
unveiled its new brand identity marking a very important milestone in its journey and
reflecting a new beginning for the Group. A new brand identity reinforces all the positives to
fulfil our vision to be a global entrepreneur through the power of positive action.
We aim to have a robust value system comprising positive attitude, positive action and
positive achievement.
We endeavour to create enduring value for customers and stakeholders in core
manufacturing and service businesses, through world-class operating standards, state-ofthe-art technology and the positive attitude of our people.
Privately owned and professionally managed, the Group is judiciously invested in the
9|Page
commodity, annuity and services businesses. Forward and backward integration, the use of
state-of-the-art technology, in-house research and innovation have made Essar Global a
force to reckon with in each of its businesses.
Finally, the Essar way is all about keeping its entrepreneurial spirit alive, and to keep
growing with a passion to progress and the power to succeed with a renewed strength of
purpose and commitment.
Corporate profile
Moving beyond Indian frontiers, the Essar Group continues to grow internationally through
focused strategies
The Essar Group is a multinational conglomerate and a leading player
in the sectors of Steel, Oil & Gas, Power, Communications, Shipping
Ports & Logistics, Construction and Minerals. With operations in more
than 20 countries across five continents, the group employs 60,000
people, with revenues of about USD 15 billion.
Essar began as a construction company in 1969 and diversified into
manufacturing, services and retail. Over the last decade, it has grown
through strategic global acquisitions and partnerships, or through Greenfield and Brownfield
development projects, capturing new markets and discovering new raw material sources.
Today, the Group continues to expand its global footprint, focusing on markets in Asia,
Africa, Europe, the Americas and Australia. Essar invests significantly in the latest
technology to drive forward and backward integration in its businesses, and on leveraging
synergies between these businesses. It also focuses on in-house research and innovation
to be a low-cost manufacturer with high quality products and innovative customer offerings.
Alongside its ambitious business pursuits, Essar has been committed to its social
responsibility. The Group runs community outreach initiatives in all its plant locations, with a
focus on education, healthcare, environmental and agricultural development, and selfemployment.
Essar is committed to sustainable business practices. Our HSE (Health, Safety and
Environment) management system is on par with global standards. We are also taking
climate change initiatives to reduce our carbon footprint. This includes several CDM (Clean
Development Mechanism) projects that can earn the company CER (Certified Emission
Reduction) credits. A growing number of our businesses with new businesses joining the list
every year are certified to international environment standards, like ISO 9001 / 14001, and
health and safety standards, like OHSAS 18001.
The Essar Group is widely regarded as a responsible and conscientious global employer. It
has experience in managing businesses in different geographies with a culturally diverse
workforce. This is why its people practices are sensitive to cross-cultural nuances. The
Groups people strategy is focused on promoting a learning culture that continually
enhances the professional skills of its employees.
10 | P a g e
Board of directors
Listed here are the promoter directors of the Essar Group. Each company under the Group
is independently run by a team of professionals
promoter Directors
Mr Shashi Ruia
Chairman
Essar Group
Mr Ravi Ruia
Vice Chairman
Essar Group
Mr Prashant Ruia
Group Chief Executive
Essar Group
11 | P a g e
Mr Anshuman Ruia
Promoter Director
Essar Group
Ms Smiti Kanodia
Promoter Director
Essar Group
Mr Rewant Ruia
Promoter Director
Essar Group
Management team
12 | P a g e
13 | P a g e
Project
Essar Projects Limited drives our businesses in the construction sector. We own one of
Asias largest banks of sophisticated construction equipment
With over 5,000 people, we are a global engineering, procurement
and construction (EPC) company headquartered in Dubai, with
offices in India, China and the Czech Republic.
We honed our skills in the construction of industrial plants and
infrastructure as the turnkey EPC Company for most of the Essar
Groups world-class projects and supporting infrastructure. Marine
construction is one of our special strengths. Indeed, the very origin of
the Essar Group was in specialized marine construction.
We have built 320,000 bpd of refining capacity and developed over 10 million tons of steel
capacity. We have laid more than 5,000 km of pipelines and developed 1,200 MW of power
projects, and are developing another 4,800 MW.
Our offshore EPCI capabilities currently execute a USD 220 million project for ONGC. We
own over 3,000 nos. construction equipment worth over USD 250 million.
We have 12,000tpa (tons per annum) of fabrication facility with waterfront load-out facility
and also have a dedicated Engineering Centre specializing in Engineering and Design for
the Process and Industrial sectors, with over 1,200 engineers. With over USD 6 billion
procurement capability, we have global procurement support in the Middle East and China.
The ISO 9001:2000 certified pipeline division of our construction business unit is a specialist
in onshore, offshore and cross-country pipelines, from construction to commissioning. The
pipeline division holds the distinction of building the worlds second longest slurry pipeline
Essar Steels 267km Bailadilla-Vizag slurry pipeline.
Our customers can rely on our skilled, engineering team, large bank of the latest
construction equipments, and our talent for scouting the globe to procure the best materials
and equipment at competitive prices.
Our long and impressive list of clients includes most major Indian ports,
the National Highway Authority of India, the Gujarat Water Supply and
Sewerage Board, the Gas Authority of India, Hindustan Petroleum and
ONGC. Our expertise is also internationally recognized, whether for the
pipelines we laid in Qatar or the cold rolling mill we built in Indonesia.
We have won contracts from government agencies through local and
international competitive bidding, meeting the stringent requirements of
the World Bank and the Asian Development Bank.
With four decades of project management expertise, Essar Projects Limited is strategically
placed to support the infrastructure explosion in India and abroad
14 | P a g e
Essar Oil operates a fully integrated oil company of international size and scale in India
Essar Oil's assets include developmental rights in proven exploration
blocks, a 10.5 mtpa refinery on the west coast of India and over 1,300
Essar-branded oil retail outlets across India. Plans are under way to
increase its exploration acreage in various parts of the globe, expand
its refinery capacity to 36 mtpa, and open 3,000 outlets countrywide.
Our global portfolio of onshore and offshore oil and gas blocks, with
about 70,000 sq km is available for exploration. We have over 300,000
bpd (barrels per day) of crude refining capacity that is being expanded to 750,000 bpd, with
a goal to reach a global refining capacity of 1 million bpd. We have a 50 percent stake in
Kenya Petroleum Refineries Ltd., which operates a refinery in Mombasa, Kenya, with a
capacity of 80,000 bpd.
Our Exploration and Production (E&P) business has participating interests in several
hydrocarbon blocks for exploration and production of oil and gas. This includes the Ratna
and R-Series blocks on Bombay High, and an E&P block in Mehsana, Gujarat, which has
currently started commercial production. It has also been awarded a Coal Bed Methane
(CBM) block at Raniganj in West Bengal, and two more E&P blocks in Assam, India. The
overseas E&P assets include three onshore oil and gas blocks in Madagascar, Africa, and
one offshore block each in Vietnam and Nigeria.
We have a 10.5 mtpa refinery at Vadinar in Gujarat, which started commercial production on
May 1, 2008. It has been built with state-of-the-art technology and has the capability to
produce petrol and diesel suitable for use in India as well as advanced international
markets.
It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine Fuel (ATF) and
kerosene. The refinery has been designed to handle a diverse range of crude from sweet
to sour and light to heavy. It is supported by an end-to-end infrastructure setup including
SBM (Single Buoy Mooring), crude oil tankage, water intake facilities, a captive power plant
(currently 120 MW, being expanded to 1,010 MW), product jetty and dispatch facilities by
both rail and road.
The refinery is strategically located in Vadinar, a natural all-weather,
deep-draft port that can accommodate Very Large Crude Carriers
(VLCCs). Vadinar also receives almost 70 percent of Indias crude
imports. Post its expansion to 36 mtpa, the refinery will run at a Nelson
Complexity of 12.8. This means it will be able to refine all varieties of
crude, producing Euro 5 grade fuels. It will also be among the largest
single location refineries in the world thus leveraging on economies of
scale.
.
15 | P a g e
Power
Essar Power operates four power plants with a combined capacity of 1,220 MW in three
locations across India
Essar Power has two gas-based plants, of 500MW and 515MW
capacities in Bhander and Hazira respectively, a 120MW co-generation
plant in Vadinar and an 85MW plant in Algoma.
Work is currently under way to expand the current generation capacity
of 1,220MW to 6,100MW by 2012, with a target to reach 11,470MW in
the near future. The company will set up three coal-based plants of
1,200MW each in Gujarat, Madhya Pradesh and Jharkhand,
aggregating 3,600 MW. An additional 1,280MW is also under construction 1160 MW in
Gujarat and 120MW in Orissa to supply power and steam to the expanded refinery.
An additional 5,370 MW is under development.
As the first private company with a license to enter the transmission and power trading
segments, we are now a fully integrated, end-to-end player in the power sector. By using the
latest technology and equipment, we generate and supply power at very competitive price
points. Essar currently has complete fuel linkages secured for all projects under execution.
We also have the capability to execute power projects for other companies.
Essar power is exploring opportunities for new projects based on thermal, wind and hydro
energy. We are also committed to reducing emissions from our plants and earning carbon
credits. The 500MW combined cycle power plant at Hazira is eligible for Certified Emission
Reductions (CERs) under the Kyoto Protocol's Clean Development Mechanism (CDM).
The investments made towards the projects under execution are over USD 4 billion
16 | P a g e
Communications
Essar Telecom Infrastructure is one of the largest independent telecom infrastructure
service provisioning companies in the country.
Vodafone-Essar is a joint venture of Essar Communication Holdings Ltd and the UK-based
Vodafone Group. It is one of Indias largest cellular service companies. We have over 100
million telecom subscribers in India and Kenya. We have majority stake in the telecom
assets of the Dhabi Group in Uganda and the Republic of Congo.
We operate integrated IT enabled services through the Aegis brand name, with a presence
in interaction services, back office services and value-added services. Aegis operates in 40
locations and employs over 40,000 employees in India and the US, with expertise in the
telecom, insurance, banking and healthcare domains.
We have launched India's first countrywide chain of multi-brand and
multi-service outlets in the telecom retail space. The MobileStore Ltd
currently runs 1,300 outlets, branded The MobileStore. In the next
two years, over 2,500 outlets will come up across 650 cities.
Essar Telecom Infrastructure is one of the largest independent telecom
infrastructure service provisioning companies in the country. It builds
telecom tower infrastructure and shares it with several telecom
operators in India. It has a pan-India presence in telecom tower infrastructure with more
than 4,500 telecom towers operational. Essar has a 14 per cent stake in Indus Towers,
Indias largest tower company, which has over 100,000 towers.
Essar Communications Holdings Limited acquired a 49 per cent stake in Econet Wireless
International Limited by subscribing to fresh capital in the company. EWI has a 70 per cent
shareholding in Econet Wireless Kenya. Essar and Econet Wireless Kenya have launched
'yu' Kenyas third mobile cellular network. This is a GSM-based mobile services network
in Kenya with close to a million subscribers.
17 | P a g e
STEEL
Essar Steel is a global producer of steel with a footprint in India, Canada, USA, the Middle
East and Asia
We are a fully integrated flat carbon steel manufacturer from iron ore to ready-to-market
products with a current capacity of 8.6 million tonnes per annum (MTPA). With our
aggressive expansion plans in India, as well as Asia and the Americas, we aim to achieve a
capacity of 14 MTPA by 2011-12. Our products find wide acceptance in highly discerning
consumer sectors, such as automotive, white goods, construction, engineering and
shipbuilding.
Essar Steel is one of India's largest exporters of flat products,
exporting to the highly demanding US and European markets, and to
the growing markets of South East Asia and the Middle East.
A number of major client companies have approved our steel for their
use, including Caterpillar, Hyundai, Swaraj Mazda, the Konkan
Railway, and Maruti Suzuki. Essar Steel has acquired extensive quality
accreditations. Our lean team gives us one of the highest productivities
and lowest manpower costs among steel plants internationally
Seamless integration
A major strategic advantage is our high level of forward and backward integration. We are
totally integrated - from raw material to finished products, adding value at every stage of the
manufacturing process.
Bailadilla facility: Iron ore beneficiation
At Bailadilla, where some of the world's richest and finest ore is available, we have set up a
beneficiation plant of 8 MTPA capacities, which ensures the highest quality iron ore. The
iron ore slurry is pumped through a 267 km pipeline (the second longest in the world) to the
pellet plant, yielding advantages in quality, cost and real time inventory management.
Visakhapatnam facility: Pelletisation
The slurry is received at our pellet plant at Visakhapatnam, which has a capacity of 8 MTPA,
providing vital raw material for the steel plant at Hazira.
Hazira facility
Our steel complex at Hazira, Gujarat, houses a 5.0 MTPA sponge iron
19 | P a g e
plant, the world's largest gas-based sponge iron plant in single location. The plant provides
raw materials for our state-of-the-art 4.6 MTPA hot rolled coil (HRC) plant, the first and
largest of India's new generation steel mills. This plant is fed with inputs from four electric
arc furnaces and three casters. The complex's sophisticated infrastructure includes
independent water supply and power, oxygen and lime plants, a township and a captive port
capable of handling up to 8 MTPA of cargo with modern handling equipment like barges and
floating cranes
Hazira Pipe Mill
Hazira Pipe Mill is located at Hazira, Gujarat has a combined capacity of 0.6 MTPA of
helical submerged arc welded (HSAW) and longitudinal submerged arc welded (LSAW)
steel pipes along with internal and external coating facilities of up to 2mn square meters
annually. This pipe making facility is backed by external and internal anti corrosion coating
facilities.
Cold rolling complex
At the other end of the value chain, our downstream facilities include a 1.4 MTPA cold
rolling complex, which adds further muscle to our steel making facilities. The complex
comprises two pickling lines of 1.4 MTPA capacity, a reversing mill and a 1.2 MTPA tandem
mill, two galvanizing lines of an aggregate capacity of 0.5 MTPA, a batch annealing furnace
of 0.7 MTPA, and a skin pass mill of 1.0 MTPA. This enables us to get into the genre of
products that are tailor-made for the automotive, white goods, shipbuilding, agriculture and
construction industries - segments that had been the exclusive domain of a few international
manufacturers. Essar now holds the leadership position in the cold rolling, galvanizing and
pre-coated segments.
Pune, Maharashtra
We have a 0.6 MTPA cold rolling plant, a 0.5 MTPA galvanising plant, a 0.4 MTPA colour
coating plant, and a 0.7 MTPA pickling line.
Distribution outlets
Essar Steel is the first steel company to set up an end user distribution chain for steel
products under the brand name Essar Hypermart. It has a strong network of over 474 steel
retail outlets. These outlets are conveniently located across the length and breadth of the
country to cater to the customized requirements of small and medium enterprises.
The hypermarts offer a comprehensive range of flat steel products for a variety of
applications. Other product lines, like longs, structural, and tubular, are also being
developed to make Essar Hypermart a one-stop-shop for steel products.
Services (across India)
Largest Steel Service Centre facilities in India with an annual capacity of 2.6 million tonnes
located in Pune (Maharashtra), Hazira (Gujarat), Bahadurgarh (National Capital Region),
and Chennai (Tamil Nadu).
Canada facility: Essar Steel Algoma
Established in 1901, Essar Steel Algoma is an integrated steel producer based in Sault Ste.
Marie, Ontario, and Canada. The plant's current production capacity is 4 MTPA. Some of
20 | P a g e
the key equipment at the plant includes a low-cost, technologically advanced Direct Strip
Production Complex (DSPC), a slab caster, a 106-inch strip mill (one of the widest in North
America), a 166-inch plate mill, a cold mill and blanking facility that helps produce steel
customized for client requirements, and a welded beam division.
Indonesia facility: PT Essar Indonesia
PT Essar is Indonesia's largest private sector flat products company, with a domestic
market share of 35 percent and a history of process and product innovation. After a major
expansion drive, its CR capacity has been enhanced to 0.4 MTPA and its newly set up
galvanizing capacity is 0.15 MTP
Current status
Algoma currently is the third largest steel producer in Canada (behind Dofasco and Stelco)
both of which proved stronger corporate entities than Algoma. It remains the largest
employer in Sault Ste. Marie and currently has 3500 employees at the main plant. Algoma
now produces steel strip (i.e. plate and sheet type) which forms its main money maker along
with its blanking operations and welded beams.
Essar Steel is a worldwide producer of steel selling to countries such as India, Canada,
United States and Asia. It is a fully integrated steel producer with a raw steel production
capacity of approximately 2.8 million tons per year. Many of its products are sold in
consumer sectors, such as automotive, white goods, construction, engineering and
shipbuilding. [4] The plant's current production capacity is 4 million tonnes per annum
(MTPA). Some of the key equipment at the plant includes a low-cost, technologically
advanced Direct Strip Production Complex (DSPC), a slab caster, a 106-inch strip mill (one
of the widest in North America), a 166-inch plate mill, a cold mill and blanking facility that
helps produce steel customized for client requirements, and a welded beam division.
Revenues are primarily derived from the manufacture and sale of hot and cold rolled sheet
and plate. Algoma's products are used in the automotive, construction, energy,
manufacturing, pipe and tube, and steel distribution industries. [1] The Direct Stripe
Production Complex is a new addition to Essar Steel. DSPC is the newest thin slab caster
coupled with direct hot rolling in North America. The Heat-Treated Plate facility provides
heat treated products for abrasion resistant, ballistic and other specialty plate applications.
First stage configured blanks and large profile welded shapes and profiles are also made. [4]
Essar Steel Algoma confirmed June 15, 2009 they have successfully started up a new, 70
MW Cogeneration Facility. A final performance test on Saturday, June 13 confirmed the
facility meets all necessary operating standards as required by the Ontario Power Authority.
The cogeneration facility converts by-product fuels from the coke making and iron making
processes into electricity and steam for the steelworks. [3]
It features two 375,000 lb/hr boilers and a 105MW turbine combined with other related
components such as a generator, a blast furnace gas holder, condensate and feed-water
systems, a water treatment plant, a cooling tower, a transformer, and a distributed control
system. Essar has set a precedent as the first integrated steel manufacturer in Canada to
construct a cogeneration facility fuelled with by-product gas from the operation. [3]
21 | P a g e
Essar Steel is the biggest employer in Sault Ste. Marie, Ontario, and Canada. They currently
employ around 3,500 workers and have a major effect in the economy.
ESSAR ORISSA:
The Essar group plans to invest Rs.15,000 crores for its upcoming steel plant in Orissa, with
works for the plant set to start in January, a senior official said.
The 6 million tonne integrated steel plant will be commissioned in 2011, B K Panda, project
director of Essar Steel Orissa Ltd (ESOL), told reporters.
The project would need some 2,000 acres of land. The company is negotiating with local
landowners for acquiring some 1,100 acres of land.
The Orissa government has given it 103 acres of land and the company expects some 200
acres from the government, Panda said.
ESOL general manager Bikram Mohanty said local people have welcomed the plant. The
state government and the district administration are also supportive, he said.
Panda said the company plans to have socio-economic development programs in the region
to help the living standard of the people. Essar also will follow the government guidelines in
the rehabilitation of the people.
The company would function in an eco-friendly fashion using even low grade iron ore for
making pellets, which would be fed in blast furnaces. Currently, steel makers in the country
dump low-grade iron ore, which can cause environmental pollution.
23 | P a g e
24 | P a g e
MATERIALS MANAGEMENT
Big text Materials management is the branch of logistics that deals with the tangible
components of a supply chain. Specifically, this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts.
Areas of Concentration
Goals
The goal of materials management is to consolidate and efficiently handle core services. It
creates truck deliveries and service vehicle routes that reduce conflicts for vehicles and
pedestrians. Delivery sites and loading docks are more effective and reduce redundancy.
Cost is reduced when it comes to solid and hazardous waste removal, storage, and
recycling. Utility infrastructure and service equipment relocation can improve aesthetics.
Quality Assurance
A large component of materials management is ensuring that parts and materials used in
the supply chain meet minimum requirements by performing quality assurance (QA). While
most of the writing and discussion about materials management is on acquisition and
standards, much of the day to day work conducted in materials management deals with QA
issues. Parts and material are tested, both before purchase orders are placed and during
use, to ensure there are no short or long term issues that would disrupt the supply
chain. This aspect of material management is most important in heavily automated
industries, since failure rates due to faulty parts can slow or even stop production lines,
throwing off timetables for production goals.
Standards
The other major component of materials management will be gradual movement toward
compliance. There are standards that are followed in supply chain management that are
important to a supply chain's function. For example, a supply chain that uses just-in-time or
lean replenishment requires clarity. in the shipping of parts and material from purchasing
25 | P a g e
Promoting Sustainability
Many business and institutional campuses have cluttered, noisy, and oftentimes inefficient
service environments. Delivery trucks compete with pedestrians, loading docks are in plain
sight, trash dumpsters sprout up, and lobbies, hallways, and stairwells are cluttered with
unplanned storage. With forethought and creativity, these systems can reduce energy use
and carbon emissions, minimize traffic congestion, streamline operational flows, and
enhance aesthetics.
Benefits
An effective materials management plan builds from and enhances an institutional master
plan by filling in the gaps and producing an environmentally responsible and efficient
outcome. An institutional campus, office, or housing complex can expect a myriad of
benefits from an effective materials management plan. For starters, there are long-term cost
savings, as consolidating, reconfiguring, and better managing a campus core infrastructure
reduces annual operating costs. An institutional campus, office, or housing complex will also
get the highest and best use out of campus real estate.
An effective materials management plan also means a more holistic approach to managing
vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As
a result, this means a greener, more sustainable environment and a manifestation of the
many demands today for institutions to become more environmentally friendly. In fact,
26 | P a g e
where they are housed for safekeeping, and from which they will be issued as required in
only a tiny minority of cases are sales made directly from Stores, and even in such cases
those sales are merely a subsidiary activity, and are not the primary functions of the
Stores, as given in our definition. The various items and materials received into, housed in
and issued from Stores are commonly referred to collectively as being stock or
inventory, hence the use of the term stock control.
RECEIVING SECTION
TOOL STORES
GENERAL STORES
COMPLEX
AND
THEREIN
LIES
THE
At this stage, the following serve as a few examples to introduce the need
for Stores to us:Retail shops such as the footwear shop (or store), need Stores to house reserves of
goods for sale to customers and from which to replace those sold.
Wholesale businesses (often called simply wholesalers) purchase goods in large
quantities from the producers or manufacturers of them, so they need Stores in
which to hold the goods until they are required for supply in smaller quantities to
retailers.
A manufacturing concern, for example a steel industry, must hold stocks of all
the items (materials and components) which are used in making the different
types of steel.
An office is likely to need stocks of printed and plain paper, envelopes, pins, clips
and other items.
Even an enterprise which provides a service, like a garage for example, must hold
stocks: of spare parts for vehicles, consumables like oil, and, of course, tools for
use by its mechanics. In many cases the Store might be quite small, perhaps no
more than a stock cupboard in a small service concern, such as an estate agency,
or a small office. Other enterprises, however, require huge Stores to hold the vast
stocks of items, of many different kinds and sizes, which they must have available
if they are to be able to run efficiently and successfully. In between the two
extremes, there is an enormous range of different enterprises with Stores of
28 | P a g e
different sizes. Whatever the situation, you will find that the Stores of most
enterprises fall within the definition we have given you. A Store might be a
department or section of an enterprise, and be its Stores Department; often
that name is shortened simply to Stores (with a final letter s). For example, a
person might work in the Stores.
Stocks
The range of items and materials - stocks - which might be held in Stores is huge. The
variety and quantity of items and materials held in the Store of a particular enterprise will
depend on its size and on its range of activities. Broadly speaking, the various activities of
different enterprises can be divided according to the three main groups of enterprises:-
What is involved in Storekeeping:The term storekeeping covers the actual handling of the items or materials received into,
held in and issued from the Store. The work involves:
receiving items and materials, including the inspection of them
storing the various stock items in the most appropriate fashion, binning and/or
racking them by the best methods, and placing them in such a way that any item
or material in the Store can be located quickly and easily when it is required;
ensuring the safety of all items and materials whilst in the Store - that is,
protecting them from pilfering, theft, damage and deterioration; Ensuring, when
necessary, that items issued from the Store are so packed that they will not be
damaged or caused to deteriorate whilst in transit to their destinations.
29 | P a g e
ensuring that the correct stock levels of the various items are set and are
maintained, that orders and reorders are made (or requested to be made) in good
time, and that what is ordered is received;
checking, counting or otherwise measuring stock to ensure that records are
accurate and that no losses are occurring due to pilfering, theft, damage or poor
storage;
pricing and valuing the items in the Store
In an enterprise with a small quantity of stock, one person might be placed in charge of it, if
the owner/manager does not look after it himself. Where the volume of stock is too large to
be handled on a part-time basis, one or more storekeepers will be required. Enterprises
with large quantities of stock must employ trained stores personnel (storekeepers, clerks,
etc) under the control of a Stores Manager (who might go by the designation of Head or
Chief Storekeeper, Stock Controller, stores administrator).
It is impossible to state at what stage a Stores Manager will be appointed by a particular
enterprise, as circumstances and sizes vary so greatly. But whatever its size and the
volume of its stocks, the success of the enterprise can depend to a large extent on the
efficient management of its Store and stocks.
on lighting and power, etc. and the enterprise must receive a return from its
expenditure, in terms of efficiency, particularly as its Stores is non-productive
FUNCTIONS AND DUTIES OF STORES DEPARTMENT:You will have noted that earlier I stated that the Stores Department has a non-productive
Function. I can now explain what I meant.
Departments of an enterprise such as its Sales Department and/or its Production
department are directly involved in the primary or revenue-earning functions of that
enterprise. Their functions - or activities - are designed to bring money into the enterprise
as the result of producing and/or selling goods or services.
For example, if an enterprise has a Production Department, its function is to make or
manufacture goods or other items which will be sold to bring in money. The whole
function of the Sales department of an enterprise is to sell goods or other items (whether
produced internally or purchased for resale from other enterprises) and/or services, in return
for which customers will pay money to the enterprise.
In contrast, the Stores Department of an enterprise does NOT make or - in general - sell
goods or services to customers.
Its function is to:
Provide a SERVICE to the rest of the enterprise of which it is part.
The SERVICE provided by the Stores Department is ESSENTIAL to all other parts of the
enterprise, because it is basically intended to ensure that all other sections or departments
of the enterprise are furnished, when required, with the correct items, in the correct
quantities and of the correct qualities. As I explained earlier, the standard of the service
provided by the Stores Department will affect the efficiency and profitability of the entire
enterprise of which it is a part. Obviously, the Stores Department cannot be expected to
provide the best service unless it receives adequate information from other departments.
Furthermore, it must work closely in co-operation and co-ordination with those other
departments. The departments with which the Stores will have contact will, of course,
depend on the activities in which an enterprise is engaged. However, we now look briefly at
some of the major departments with which close contact by Stores Departments might be
necessary.
The complete control on the materials is vested in the Stores Department. The field of
materials Management covers the following functions.
THE FOLLOWING ARE THE PRINCIPAL FUNCTIONS OF A STORE;
31 | P a g e
ENSURE THAT GOODS INWARD NOTES (GIN) ARE RAISED AND DISTRIBUTED WITHOUT
DELAY
ENSURE THAT ALL DOCUMENTS RELATING TO RECEIPTS AND ISSUE ARE SENT TO
STOCK CONTROL, ACCOUNTS AND OTHER CONCERNED DEPARTMENTS.
qualities (and possibly even colours). Stores might also have responsibility for quality control
and for inspection (although these might be the responsibility of a separate department
which, again, must work closely with the Stores).
The relationship between the Stores and Production Departments
STORE
S
RAW MATERIALS
COMPONENTS,
Dept
PRODUCTION
DEPT
TOOLS ETC.
SCRAP AND
BY PRODUCTS
FINISHED PRODUCTS
REJECT AND DAMAGED
PRODUCTS
QUALITY
CONTROL
INSPECTION
33 | P a g e
Part of the activity list of such changes should be to update the related SOP. SOPs should
be in place for all quality systems plus the specific operational activities on site. The
structure of an SOP System and the total amount of individual SOPs should be carefully
taken into consideration too many SOPs could lead to a collapse of the SOP System.
System SOPs should not be mixed up to keep systems and interaction between quality
systems easy.
ISO 22000 essentially requires the documentation of all procedures used in any
manufacturing process that could affect the quality of the product.
Document
checking
WAREHOUS
E
Material
weighment
Final
weighment
GRN(USING)
SAP
FREE
VENDOR
34 | P a g e
CHRG
NO
IS MIN AVAILABLE
DEPARTME
NT
ISSUED
YES
PHYSICAL
AGEING
VERIFICATION
WEEKL
SLOW
MOVING
QUATER
SELF LIFE
ITEMS
RECONCILATION WITH
VENDORS
Layout of ESSAR
SOP,LAYOUT.docx
SALES
REPORT
RECONCILATION
STATEMENT
Safety measures
Safety measures are activities and precautions taken to improve safety, i.e. reduce risk
related to human health. Common safety measures include:
Root cause analysis to identify causes of a system failure and correct deficiencies.
Chemical analysis
X-ray analysis to see inside a sealed object such as a weld, a cement wall or an
airplane outer skin.
Stress testing subjects a person or product to stresses in excess of those the person or
product is designed to handle, to determining the "breaking point".
36 | P a g e
Geological surveys to determine whether land or water sources are polluted, how firm
the ground is at a potential building site, etc
SAFETY COMPLIANCE
1. THE SERVICE PROVIDER AND HIS MEN SHOULD COMPLY WITH PPE REQUIREMENT
DECIDED BY THE ORGANIZATION SAFETY DEPARTMENT LIKE CUT RESISTANT HAND
GLOVES, SAFETY HELMETS AND SAFETY SHOES..
2. ALL THE PPES MUST BE WORN WHILE WORKING ON JOB.
3. THE SERVICE PROVIDER SHOULD BE COMPETENT ENOUGH TO SUPERVISE HISMEN.
JOB DESCRIPTION
1. THE SUPERVISOR HAS TO ENSURE PROPER PLANNING OF COMPETENT MANPOWER AS
DESIRED BY THE ORGANIZATION.
2. PLANNING OF COIL ON SADDLE AS PER PLAN RECEIVED FROM THE ORGANIZATION.
3. ISSUING AND SHIFTING OF WOODEN PALLETS FROM THE ORGANIZATION AS PER SIZE.
4. SEGMENT REMOVAL AND FIXING AS PER COIL I/D.
5. SHEAR GAP SETTING AS PER THICKNESS.
6. UNLOADING OF PACKETS FROM THE STACKER THROUGH EOT CRANE.
37 | P a g e
12. Service Provider must keep safe distance to the coils & packs while packing.
13. Service Provider must not modify any tools or equipments.
14. Service Provider must not touch any movable parts.
15. Service Provider must riggers must be alert while pack stacking procedure in yard.
16. Extra care to taken while packing with fork lifter. The signal should be given to fork lifter
driver by standing at least one meter away from pack.
17. Service Provider must keep the packs stack height maximum 6 feet and must not stack
the packs more than 6 feet height.
18. Rigger must ensure as coil properly gripped in sling-gofer/c-hook than after give the
signal to the crane operator.
19. Service Provider must not put wooden blocks for packing while the crane is moving with
load.
20. Service Provider must maintain good housekeeping standards and keep Yellow
pathway should be neat & clean.
21. Housekeeping is mandatory at each packing area. All loose wooden logs, straps etc to
be removed from site in frequent intervals.
22. Ensure sling offer should be locked with bolt in main hoist of crane.
23. Service Provider must not pack the packs very near to the rollers on the floor area in
flying shear line. There may be a chance of slipping & falling down.
24. Service Provider must ensure all hooks are properly hooked with chains while lifting
with spreader beams. The lifting signal to crane operator to be given after counter checking
the hooks position. There may be chance of hooks slipped off from chain.
25. Service Provider must not work near the stacker area in flying shear line.
i. To ensure the health, safety and well being of all workmen and compliance to applicable
legislative requirements.
ii. To include all resource requirements for accident prevention during preparation of
estimates.
iii. To ensure proper briefing to workmen.
iv. Not to do wilfully any act which may cause injury to himself or to others.
v. Not to interfere unless duly authorized, remove or interfere with any moving/ stationary
machine/ equipment or facility.
vi. To use only the authorized means of access provided in the site.
vii. The bidder / service Provider shall have full responsibility and accountability of safe
execution of job at work place / site and safety of the personnel conducted inside the
premises of ESSAR, Hazira.
viii. To maintain up-to-date list of employed workman at the work site and maintain identity
cards.
ix. To undertake immediate action to correct all unsafe conditions/ practices as identified/
reported.
x. To ensure that all sub - service providers are provided the necessary documentation, ISI
approved or equivalent standards PPE and informed of their obligations.
xi. To issue standing instructions for prohibition of drugs and alcohol/ fighting/
gambling/horse play or keeping weapons at various worksite (any violation will result in
disciplinary action).
xii. Not to employ workmen with epilepsy/ deafness/ color blindness/ night blindness in any
site activities. All personnel deployed at their site shall have medical fitness certificate
issued by registered medical practitioner.
xiii. Ensure that employees are provided with appropriate ISI approved or equivalent
standards personal protective equipment PPEs and these should be at no cost to the
employees. These PPEs should be used in accordance with job requirements and replaced
as necessary.
40 | P a g e
i. Lifting and shifting of big vessel/pipes/gear boxes/big armature/motors etc. where chain
pulley blocks, cranes, winch machines, loaders etc are used.
ii. Activities/works being carried out at critical heights like crane girder levels, false ceiling
& roof jobs.
iii. Activities/works being carried out at environment having health and/or fire hazards.
iv. Activities/works being carried out in confined space/vessel entry/locations.
v. Activities being carried out on gas line/oil cellars/hydraulic stations/cable tunnels/cable
galleries/conveyors.
41 | P a g e
42 | P a g e
following i. Equipments should work for 20 hours in a day/as per requirements & availability for each
equipment must be there accordingly.
ii. Deduction on pro-rata basis shall be made for breakdown hours or for non-availability of
equipment.
iii. Copy of a current and valid P.U.C. certificate for the equipment should be provided by
Service Provider and operators should have valid driving license.
43 | P a g e
iv. Service Provider shall keep and have all valid documents as per Motor Vehicle Act as
applicable in the state/region.
v. The above mentioned documents/certificates must be available at all times.
vi. Head light, tail light, reverse horn and rear view mirror of the equipment should be in
working condition for safe operation.
vii. If Service Provider are replacing any regular equipment deployed then Service Provider
shall inform the user department in writing.
Service Provider shall keep proper supervision round the clock for optimum
utilisation.
Inside the plant premises, the speed of the vehicle should not exceed 20 KM per
hour/the limits defined at various places in the plant.
Service Provider shall comply with the following:Housekeeping/cleaning of the area including cleaning/removing the debris/scrap/waste and
shifting the same/surplus materials to the location specified/shown by the engineer-in
charge shall be carried out by Service Provider. Disposal of these should not be done to
areas which will create environment hazards and the disposal should not create damage to
environment land, water, air presently or in future. Service Provider shall dispose off waste
or scrap generated /dust only to designated areas and ensure that these are not disposed
off at any area.
Minimize pollution at source through environment-friendly processes,
techniques and processes
Reduce fugitive emission from loading/unloading and transportation of
materials (where applicable).
Develop/encourage adequate greenbelt in and around the plant.
Educate and develop an environmentally aware contractual workforce at all
levels.
ESSAR celebrates this year as the accident free year as no life lost
during the commencement of the project and bags the safety
award.
SAP IN ESSAR
Mill Products
The Essar group is one of Indias largest business houses with an asset base of
US $ 3 billion and interests in core industries like Steel, Shipping, Oil and Gas,
44 | P a g e
Power, Telecom and Finance. Essar entered the Iron and Steel business in 1989
by setting up a 1.76 million tonnes per annum facility to produce Hot Briquetted
Iron (HBI). This plant is the largest in the world. Essar has also set up a 2 million
tonne flat products steel plant. Simultaneously, a backward integration project in
the shape of a 3.3 million tpa iron ore pelletisation plant has been set up to
manufacture and supply high quality iron ore pellets. Essar has emerged as the
largest fully integrated manufacturer of high-quality flat products in the western
region of India . the hub of industrial activity in the country. Essar needed a fully
integrated IT system to manage this huge set up.
The right data at the right place
According to Anil Kastuar, C.I.O. Steel Business, Essar had a non-integrated
system focused solely on finance. .It was not linked to Production Planning,
Materials Management or Sales & Distribution Management. This is not an era
when decisions can be taken based on standalone solutions. They must be
based on inputs from other business areas. We needed a solution and we looked
at SAP.s R/3, which fulfilled our objective.
Integration is of the essence in a
Complicated industry
To produce high-quality steel with the best ingredients, accuracy in the product
mix was crucial. To enable this there was a need for an integrated and live
information system. Dr P Bhattacharya, Chief Operations Officer, explains: .We
deal with complex products, sizes, 10 grades. The wrong slab in the wrong
furnace could create havoc. We needed a system to manage all this. We also
had to track everything from raw material to production and finally its shipment.
The transportation by road of say, 250 tonnes of steel a day, is dependent on a
powerful information system. Essar selected SAP.s R/3 based on the strengths of
the system and on its success elsewhere. .Our corporate culture is driven by
respect for the best available in the market. SAP.s R/3 turned out to be the most
powerful, proven software that could run a complicated business such as ours..
.SAP is able to provide solutions for a variety of industries. It is not an
industry-specific solution. It is not a hardware-specific solution. It is an
enterprise-wide solution with industry specific components for
businesses like ours.
45 | P a g e
.What I like about the SAP R/3 solution is that it binds every individual
and every department with one objective- Efficiency. There can be no
conflict of data. If there is a problem it surfaces the same day.
Implementation with a Big Bang
Anil Kastuar explains why Essar chose to unfold the entire R/3 suite in one goes
calling it their Big Bang approach. .Our steel plant was close to being
commissioned and we needed to take care of each business process. Which is
why we decided to go for the Big Bang approach? Arun K Tiwary, GM Information
Technology, explains further: .Our modules included: Finance, AssetManagement, Product Planning, Plant Maintenance, Sales and Distribution,
Quality Management, Controlling, Commitment Accounting.. The first 12 months
saw the implementation of 3 modules: Finance, Material Management and
Controlling. All the production related modules went live in the 2nd phase, 3
months later.
.SAP Indias support is fantastic. Sometimes I wonder whether they.re
a part of Essar Steel or SAP India..
Essar had the help of their respected business managers in the implementation
stages. They also had the assistance of a team of IT professionals and
implementation consultants from Coopers & Lybrand. Avers D Ashok, Executive
Director, Coopers & Lybrand (India), .We believe this Big Bang implementation
was successful, primarily because of the client.s confidence in jointly taking a
seeming risk. Our well qualified, dedicated and experienced consultants with
guidance from C&L.s global SAP Centre of Excellence . Hamburg, were able to
meet the stringent deadline because of team spirit and dedicated client users
and IT professionals..
.SAP were supportive and responsive. For example when we had a problem with
our Commitment Accounting, they flew down a consultant from Singapore to
help..
We can promise much shorter deliveries..
According to Dr Bhattacharya the cycle of customer enquiry to delivery has been
reduced. Essar truck turnaround time is reducing. The ERP facility that SAP
offers as a part of its production planning module is used extensively. .We are
able to accurately plan our procurement of spares and goods, raw materials and
stocks. Accounting has become totally decentralised. Every transaction that
takes place in the plant updates the book of accounts automatically...For the
first time we are likely to close the first half of our balance sheets within 25 days
of our closing
46 | P a g e
INVENTORIES OF ESSAR
Since the ESSAR ORISSA STEEL LTD (ESOL) is in project state the inventories are
huge. The inventory basically consists of capital goods, steel items (like bars,
angle, beams, channel, and plate), cement and diesel. These items are used for
the purpose of the construction of the plant. The inventories are of A category,
the capital goods lying in the helipad, crs building, mrs building, balli building,
store yard, store shed worth more than 400crores.the steel items like bar, angle
channel, plate also worth in crores. Steel items are stacked near crs building,
Weigh Bridge, near chimney, etc. Stores department is responsible for the
stacking, handling and maintaining this high value items.
annually. Given below are steps which can be used to design the physical verification of
inventory process. These need to be fine tuned according to the nature of industry.
Perpetual Inventory
Medium to large organizations having high quantity of stocks must design a perpetual
inventory count system. Physical verification of inventory on a perpetual basis helps to
monitor and control the stocks effectively. A perpetual inventory system can be either
weekly or monthly. An annual verification of stocks during year end audits can reveal
differences between physical and book quantities which would be difficult to identify and a
rectification at that stage may not be possible leading to an excessive write off.
weekly stock take procedure needs to be carried out on the day of the week when the
operations are expected to be at a minimum i.e. here is minimum movement of inventory.
Monthly physical verification needs to be carried out on the last day of the month after all the
invoices have been recorded and the inventory is dispatched
A monthly stock count procedure would involve a complete stock count i.e. counting the
entire inventory. A weekly perpetual inventory system on the other hand would involve
counting some of the quantity on a weekly basis such that the entire stocks are counted at
least twice a year or once every quarter.
Inventory Schedule
The inventory schedule must be prepared prior to the stock count. It must specify the date
and time of the count and the staff who will be participating in the stock count. The schedule
must be communicated to the staff involved in the stock take.
48 | P a g e
49 | P a g e
QUANTITY OF BEAM
QUANTITY OF CHANNEL
STEEL INVENTORY.xlsx
50 | P a g e
LOCATION
QUANTITY
GODOWN NO 4
1583 BAGS
BALLING
BUILDING
2703 BAGS
GOWODN NO 3
1810 BAGS
GOWODN NO 2
1060 BAGS
ISSUED
400 BAGS
TOTAL
6756 BAGS
be such that no dampness or moisture is allowed to reach cement either from the ground,
walls or from the environment. This becomes particularly important during the humid season
and in coastal regions when atmospheric air contains higher amount of moisture in it.
CEMENT GODOWN AT SITE
In most construction projects godowns are constructed at site for storage of a few days
requirement of cement. Even though such godowns are temporary in nature, they must
conform to the following requirement.
The floor must be raised by atleast 80 cm above the ground level to prevent any
inflow of water. The flooring may consist of a 15 cm thick layer of dry bricks laid in
two courses over a layer of earth consolidated to a thickness of 15cm above the
ground level.
For further protection, cement bags should be stacked at least 10-20 cm clear above
the floor by providing wooden battens and planking arrangement. For saving timber
concrete may be used.
If any windows are provided , these should be few and small and normally kept
tightly closed to prevent entry of atmospheric moisture from outside.
A newly constructed godown should not be used for storage of cement unless its
interior is thoroughly dry.
52 | P a g e
sheet closing on the top of the pile. Care should be taken to ensure that the polythene sheet is
not damaged any time while in use.
TEMPORARY STORAGE AT SITE
Sometimes cement requirement of a day or two may have to be stored at site in the open. In
such cases cement bags should be laid on a dry platform made of wooden planks resting over
brick-masonry concrete, dry sand agregates raised about 15 cms above the ground level.
The stack must be kept fully covered with tarpaulin or polythene sheet and protected against
atmospheric moisture. The covering sheets must overlap each other properly. Temporary
storage on open storage should not be adopted in wet weather.
PROPER METHOD FOR REMOVAL OF CEMENT BAGS
When removing bags from storage, cement bags should be removed from upto two or three
tiers on the backside rather than only from one tier on the front as shown in the figure. If the
rows are thus stepped back, there is less chance of over-turning of bags.
50% on application as compared to that of freshly produced cement. The loss of strength
characteristic of cement at different interval of times is as given below in the table.
Age of cement
3Months
20-30
6Months
30-40
12 Months
40-50
Do not store in a building where walls, roof and floor are not completely weather
proof.
Do not store in a new warehouse until the interior is thoroughly dried out.
Do not make contact with a badly fitted windows and doors and see that they are kept
closed.
Do not stack against the wall. Always pile on the floor on wooden planks.
Do not pile more than 15 bags high and arrange the bags in header and stretcher
fashion.
Do not take cement from one tier. Step back to three or four tiers.
Do not keep bags on the grounds for temporary storage at work site. Pile on raised
dry platform and cover with tarpaulin or Polythene sheets.
ISSUED-2708 LTRS
TOTAL-4682 LTRS
55 | P a g e
STORES CREDIT TO MANAGEMENT: Complete inventory visibility the most Himalayan task for the
management.
Judicious use of the inventory.
FIFO model used.
Its a cyclone prone area still then stores department is efficient
in material management.
Packing and stacking of material is done periodically.
Reallocation plan is always happening.
24 hr service to facilitate uninterrupted work to drive optimal
internal customer satisfaction.
Prevention of revenue leakage in term of astringent source of
revenue.
Satisfying external financial audit
Bring in transparent material management practice
Helps in knowing obsolete items.
Helps in procurement, demand forecasting.
Curving practise of inferior suppliers
Claim management.
Reconciliation with vendors and suppliers.
Goods receipt note (GRN) preparation against the actual receipt.
57 | P a g e
REFERENCES:WEBSITE- WWW.ESSAR.COM
BOOKS
.
Price lists and vocabulary of stationery stores and forms issued by the
Department of Stationery and Printing, Govt. of India.
Books on materials management, Inventory Control by famous authors
including publications of National Productivity Council, New Delhi.
Introduction to Materials Management
58 | P a g e
59 | P a g e