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Project report On MATERIALS MANAGEMENT AT BHILAI STEEL PLANT
Submitted in the partial fulfillment for the Award of Degree of
BACHELOR OF BUSINESS ADMINISTRATION
FROM ST.THOMAS COLLEGE RUABANDHA BHILAI AFFILIATED TO PT.RAVISHANKAR UNIVERSITY, RAIPUR
GUIDED BY SUBMITED BY
NAMDEO BARANGE SALGOTRA (TRAINING COORDINATOR
BBA 6TH SEMESTER ST.THOMAS COLLEGE HRD, BSP)
Project report On MATERIALS MANAGEMENT AT BHILAI STEEL PLANT
Submitted in the partial fulfillment for the Award of Degree of
BACHELOR OF BUSINESS ADMINISTRATION
FROM ST.THOMAS COLLEGE RUABANDHA BHILAI AFFILIATED TO PT.RAVISHANKAR UNIVERSITY, RAIPUR
GUIDED BY SUBMITED BY
MR.ANIL MALIK SALGOTRA
(SENIOR MANAGER MATERIALS MGT.,BSP) COLLEGE
6TH SEM ST.THOMAS
A Project report On MATERIALS MANAGEMENT WITH REFERENCE TO BSP Submitted in the partial fulfillment for the Award of Degree of
BACHELOR OF BUSINESS ADMINISTRATION
From PT. RAVISHANKAR SHUKLA UNIVERSITY RAIPUR (C.G.)
Session 2007-08 (Guided by) Mr. MANOJ VERGHESE (Submitted by) SONAM SALGOTRA
St. Thomas College, Bhilai Affiliated to Pt. Ravi Shankar Shukla University Raipur (C.G.)
Mr. SONAM SALGOTRA under my supervision.CERTIFICATE This is to certify that the project on “MATERIALS MANAGEMENT WITH REFERENCE TO BSP” submitted in the partial fulfillment for the award of degree of BBA in St. Management department Dr. Reny George Principal (St.O. Ravi Shankar Shukla University. Thomas College Bhilai) . Thomas College affiliated to Pt. Mariam Jacob H. Manoj Verghese Project Guide Mrs. Raipur is a genuine work done by Miss.D.
All the information collected is authentic & to the best of my knowledge. (----------------------) SONAM SALGOTRA .DECLARATION I. the undersigned hereby solemnly declare that this project entitled MATERIALS MANAGEMENT OF BSP is a genuine profound work done by me under the auspice of my project guide & other concerned executives.
MANOJ VERGHESE ( FACULTY OF COLLEGE. NAMDEO BARANGE .MR. It is outcomes of constant encouragement an d in valuable guidance of my project guide.ACKNOWLEDGEMENT I would like to acknowledge my deep sense of gratitude to MR. MR. (SONAM SALGOTRA) . I would like to express my deep sense of gratitude to all who have shared their in valuable time & helped me directly & indirectly in the preparation of this project.G. MR.N.MANAGER (MM) . ANIL SHARMA D. TRAINING COORDINATOR HRD BSP AND MR. S.THOMAS BHILAI) . ANIL MALIK SR.SINGH GM(HRD) . Lastly.M(HRD) . ST.
Statement of limitation Chapter – 3 3:1 – Justification of study 3:2 .2.CONTENT Chapter -1 1.1.Statement of objective 2.1- Introduction of Materials Management * Function & Importance.2.About the company * Introduction of company * History of BSP * Feature of BSP Chapter – 2 2.Research Methodology Chapter – 4 4:1 Data analysis and interpretation . 1.
1.Material Planning & programming.Stock verification 5:1:5 .Issue of stores 5:1:6-Security and Fire Prevention 5:1:7 .Store keeping Chapter – 6 6.Materials Management of BSP 5:1:1.3 CONCLUSIONS Chapter – 7 7.Classification 5:1:10 .Chapter – 5 5.Objective and purchase 5:1:3 – Material budget 5:1:4 .Disposal procedure 5:1:8 – Standardization 5:1:9 .Codification 5:1:11 – Inventory Control 5:1:12 .Inspection of stores 5:1:13 .1 FINDINGS 6.1 Bibliography . 5:1:2.2 SUGGESTIONS 6.
.Chapter -1 1.1- Introduction of Material Management.
sourcing. moving. Functions of Materials Management . transportation and storage costs. movement and timing of the various commodities used in and produced by the industrial enterprise”. “Materials Management is the function responsible for the co-ordination of planning. amount.) constitute “Material Management is a term used to connote controlling the kind. wastage and obsolescence costs etc. insurance.1. and controlling. storing. handling cost. purchasing. location.1 INTRODUCTION OF MATERIAL MANAGEMENT Materials Management Meaning In recent years the concept of materials management is being widely accepted by industrially advanced countries for more effective coordination and control over material because materials costs (including investment in materials. Materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost”. “Materials Management is essentially an activity of an enterprise for the procurement and use of materials distinctly separate from the process of procurement and the use of human skills and labour for the ultimate deployment to attain some predetermined objectives”.
It facilitates the procurement of material at Proper time for manufacturing purpose. quality. 3) Inventory control : It ensures the provision of the required quantity of inventories of Required quality at the required time with the minimum amount of Capital investment. 6) Transportation – internal and external : Transport and traffic department in a big manufacturing concern Plays a significant role in the movement of materials to the best advantage of the concern transportation. design. cost effectiveness. methods of manufacture consumption aspect etc. 7) Disposal of scrap and surplus a) Obsolete b) Surplus c) Scrap Importance of Material Management . 2) Purchasing of raw material and capital goods : Management’s next function is to purchase materials such as quantity. 5) Value engineering and value analysis : Value analysis is a study of character – wise cost of an item such as Quality. 4) Receiving storekeeping and warehousing : The next function of materials management is to receive materials to keep in stores and ware house.1) Materials Planning and programming : Material planning and programming is the main function of Materials management.
1) Lowering cost content : If effective materials management is done the cost content may be kept at the lowest level. cost of materials used in different department or job may be determined very easily. 6) Perpetual inventory system : Preparation of accurate reports meant for management can only Be possible through perpetual inventory system and availability of other inventory records. 5) Cost records of material are made feasible : By materials management. 3) Minimum inventory loss: Though an efficient materials management we can reduce the risk of loss from fraud and theft. 4) Full utilization of tools and equipments : Tools and equipments are effectively utilized provided there is an execution of good materials management. 7) Ensuring receipt of right materials : Material department duty is to see what is being supplied against his orders and to ensure that he receives the correct material for the money paid. . 2) Direct and Indirect method : The cost of materials and indirect cost remain within control limit.
12) Quality control is maintained: Quality control is a technique of scientific management which has the object of improving industrial efficiency by concentrating on better standards of quality. material and machine reduces the length of Manufacturing cycle. 11) Reduction length of manufacturing cycle: Effective use of men. 9) Selection of suppliers: In selecting suppliers. consideration should be given not only to price but also to quality and delivery time. . 10) Negotiation: Negotiation work is effectively done by material management.8) Good seller and buyer relationship: Good buyer and seller relationship is very essential in an effective material management.
1.About the company * Company profile * Introduction of company * History of BSP * FACILITY .2.
The plant is the sole supplier of the country's longest rail tracks of 260 meters. The Plant is accredited with SA: 8000 certification for social accountability and the OHSAS18001 certification for Occupational health and safety. Bhilai Steel Plant (BSP) is India’s sole producer of rails and heavy steel plates and major producer of structural. Township and Dali Mines and it is the only steel plant to get certification in all these areas. These internationally recognized certifications adds value to Bhilai’s products and helps create a place among the best organizations in the steel industry . With an annual production capacity of 3. At Bhilai IS0:14001 has been awarded for Environment Management System in the Plant. the plant also specializes in other products such as wire rods and merchant products.153 MT of saleable steel.COMPANY PROFILE Seven . all saleable products of Bhilai Steel Plant come under the ISO umbrella.time winner of Prime Minister’s Trophy for best Integrated Steel Plant in the country. Since BSP is accredited with ISO 9001:2000 Quality Management System Standard.
. and began production in 1959. In addition.000 permanent workers on its direct pay-roll.000 contract workers employed by the plant and the township.4. and a significant proportion of the contract labour force.400 in 1987. This compares with a regular workforce of 63.COMPANY INTODUCTION The Bhilai Steel Plant .a public sector undertaking run by the Steel Authority of India . and for the purpose-built BSP township.was built with Soviet co-operation and technology.000 employed by the mines. It was deliberately located in what was then regarded as a remote and "backward" rural area. of whom approximately three-fifths work inside the 17 square kilometer plant and the remainder for its associated mines and quarries. Though a handful of managers. all of the regular BSP workers assigned to duties inside the plant are men.500 . BSP currently has nearly 55. and a further 3. are women. on any one day there are at present something in the region of 8. profits being secondary to employment in the planning priorities of the time.
Nandini Mines 3. SMS – l l . Dalli. Coke Ovens 6. SP-3) …. Iron Ore Mines ….Source of Raw Materials: 1. Sinter (SP-2. Lime Stone …. Sintering Plants 5. Coke (Coke sorting plants) …. Manganese …. Converter Slag …. Balaghat Mines 4. Rajahara 2.
459 Kg Lime Stone ….Requirements for producing of one ton of Hot Metal (Specific Consumption) Iron Ore …. 800 Kg(50% in Sinter …. 30kg . 08 Kg Converter Slag …. 35 Kg Coke …. 850 Kg(Depending on Sinter Usage) Manganese burden) ….
425 MT of steel 1.425 MT of steel 2.N Department o 1 Coke oven Unit 8 Batteries of 65 ovens & 4.71 MT of Hot 3 furnace of 1033 cum metal 1 furnace of 1033 cum 4 5 6 7 SMS-1 SMS-2 Contt casting Blooming & Billet Mills 4 twin hearth furnace 3 BOF of100/130 T 3 single strand & 1 continuous caster 1150 MM blooming Mill 1000/700/500 mm cc mill 2.S.3 million ton of BF coke 2 Sinter Plant 3 Machines of 50 Sq M 8.0 M high Capacity 3.5 MT of steel 1.3 M high 2 Batteries of 67 ovens & 7.15 of blooms 8 Rail & Structural Mill 950/800 2 high reversing mill 75 MT .3 MT of hearth area sinter 3 Machines of 70 Sq M hearth area 1 machines of320 Sq M hearth area 3 Blast Furnace 3 furnace of 1033 cum 4.
May 6.June 4. 1955 Commencement of work at site --------------------.S no.Feb 2.1959 --------------------.M. 1959 --------------------.Feb 4.1956 --------------------.Oct 1.1956 --------------------.Nov Commissioning of blast furnace Commissioning of power plant Commissioning of S.MAJOR LANDMARKS OF BSP Signing agreement for setting up the plant --------------------.1959 .1 Commissioning of Blooming mill 12.
1967 --------------------.Dec Commissioning of Rail & structural mill --------------------.Commissioning of Billet mill 24.July3.1 29.Sep 1.Oct 27.1961 --------------------.1961 --------------------.1 Commissioning of wire rod mill --------------------.1986 ----------------------------------------- Commissioning of Blast furnace no.July Commissioning of converter no.June Commissioning of third twin hearth 29.1990 --------------------.Jan1.1981 Commissioning of continuous casting shop--------------------July24.1959 --------------------.7 Aug30.1984 Commissioning of 1st twin heart Sep12.1960 Commissioning of Merchant mill Commissioning of Sintering plant no.Feb 2.) .9 --------------------.Mar31.1992 Major suppliers Apollo industrial corporation Ashok Leyland ----(Mumbai) (Chennai state – in.1988 Commissioning of second twin hearth --------------------.1987 Commissioning of coke oven battery no.
Simplex castings ltd. Birla corporation ltd. Siemens ltd. Dunlop India ltd. -------------- (Bhopal.t ltd.Bhel Bharat petroleum gas ltd. H. Cimmco Birla ltd.m. Mumbai) (Nagpur) (Kolkata) (New Delhi) (Kolkata) (Mumbai) (Raipur) (Ranchi) Chapter – 2 .
2.Statement of limitation 2.Statement of objective 2.Statement of objective 1) To study about procurement of materials in BSP .2.1.1.
2) To know about the inventory control methods. 5) To study about the quality used in standardization of materials. 4) To know about the codification process used in BSP. 3) To study about the store-keeping procedure of BSP. .Statement of limitation 1) Due to lack of time the researcher were unable to study aspects in detail of purchase deptt of BSP. 6)To make comparison of data of stock and spares 2.2.
5) Then was high security avengement in BSP as it is a public sector 6) The attitude of employees was not good towards the researchers. 3) Managers were reluctant to disclose facts & data of BSP.2) Limitation time also restricted the extend of the survey. They were lacking of subject knowledge so they were reluctant to Give date to the researcher. . 4) BSP is situated in vast area. The researcher was unable to visit Each & every seasons of materials Department.
Research Methodology 3:1 – Justification of study The project work which is done by me on the topic Material Management of BSP is the record of the original work done by me & matter/ data which are collected by me is the full of real ideas &.Chapter – 3 3:1 – Justification of study 3:2 . real thinking & the real perception of company that the what is the Material .
The Material function is the real justification of my study i. I have used companies statement & their Material management document for getting true & real information through going there & asking from the manager.e. RESEARCH METHODOLOGY .function in their company justify my project. the project work is done by me is the genuine & sincere work & the matters enclosed has not been submitted for the award of any other degree or diploma in the university.
• INTRODUCTION • DEFINING THE RESEARCH PROBLEM • RESEARCH PROCESS • RESEARCH DESIGNS • DATA COLLECTION • RESEARCH HYPOTHESIS • PREPARATION OF THE RESEARCH REPORT INTRODUCTION Today is changing dynamic field to functional area of management of increasingly important as compared to other fields. which keeps the . Information in life is important as any research report.
DEFINITION 1) “Research is a point of view.” P. organizing & evaluating data. collecting. verifiable & contribution to knowledge in the field studies. formulating hypothesis or suggested solutions. making deduction & reaching conclusions to determine whether they the formulating the hypothesis. intelligent searching for facts and their meanings or implication with reference to a given problem. exhaustive. The term research contains of two words Re+ Search. one finds many theories of learning due to the observation from different dimensions. research means to observes the phenomena again & again from different dimensions. “Research is a systematic & objectives for analysis of information relevant to the identification & solution of any problem in any field. an attitude of inquiry or frame of mind”. R. This is clear by the following:- COLLECTION OF DATA PERSON PHENOMENA CONCLUSION AGAIN & AGAIN ANALYSIS OF DATA Thus. COOK OBSERVES .management in minimizing the risk & uncertainty through systematic decision-making.RAOK 2) “Research is and be honest. Research seeks answers to certain questions which have not been answered so far & which depend upon human efforts. The product or findings of a given pieces of research should be as authentic.M. Research is devoted to find the condition under which a certain phenomena occur & the conditions under which it dose not occur in similar circumstances. It seeks to only those questions of which the answer can be given based on this data. For example. Thus. research is the process of which a person observes the phenomena again & again collects the data & based on data he draws conclusion. “Re” means again & “Search” means to find out something new.” Research comprises defining & redefining problems.
It is rigid & formal. Descriptive research includes survey & facts finding enquires of different kinds. users of a product with different age. etc. It estimates the proportion of people in a specified population. education. iv) To test a hypothesis of a causal relationship between variables. i) ii) To gain familiarity with a phenomenon or to achieve new insights into it. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.OBJECTIVES OF RESEARCH METHODOLOGY The purpose of research is to discover answers to questions through the application of scientific procedures. iii) To determine the frequency with which something occurs or with which it is associated with something else. situation or a group. Two basic types of research design used in descriptive research are. But it is generally used for collecting cases . The descriptive study is typically concerned with determining frequency with which something occurs or how two variables vary together. It describes the characteristic of certain groups. To portray accurately the characteristics of a particular individual. TYPES OF RESEARCH 1) DESCRIPTIVE RESEARCH Descriptive research design is also called explanatory design. The major purpose of descriptive research is descriptive of the state of affairs as it exits at present. a) Case research design It can be carried out in the areas such as a survey consumer attitude toward a new product concept or it may be conducted in a library by the survey of available secondary data. sex. e.g.
establishing priorities. gathering information. It reflects an attempt to get all available information from the people who have some particular knowledge of subject under investigation. The exploratory study may also be used to clarify concept. A case study is characterized . government documents. trade journals. increasing the analyst’s familiarity with the problem. More useful sources of such information are books. In some instances.b) Statistical design The statistical method involves study of a few factors in a larger number of cases. newspapers. detailed & intensive case analysis of a few Selected individual or organization may particularly be helpful in gaining ideas about possible relationship. knowledge. 2) EXPLORATORY RESEARCH In this research. wholesalers. Exploratory study is characterized by flexibility & by flexibility & informality. It is formulating a problem for more precise. Three basic types of research design used in exploratory research are- a) Literature surveys One of the most economical & quickest ways to discover hypothesis is the work of others through a literature search. the major emphasis is on the discovery of ideas & insights. Such people include top executives. professional journals & so on. b) Experience surveys Individuals with expertise. It is helpful in breaking broad & vague problem into smaller. retailers etc. c) Analysis of selected cases The arbitrary selection of a few extreme examples and through analyses of these. & ideas about research subject may be questioned. sales mangers. other relevant people of the company in question & companies making similar products salesman.
RESEARCH METHODS VERSES METHODOLOGY It seems appropriate at this juncture to explain the different between research methods and research methodology. 5) EMPIRICAL RESEARCH Empirical research relies on experience or observation alone. This research is important in the behavioral sciences where the aim is to discover the underlying emotions of human behavior. Since the object of research. often without due regard for system & theory. particularly the applied research. These methods will be used where the . phenomena relating to or involving quality or kind. Keeping this in view.e. 4) APPLIED RESEARCH Applied research aims at finding a solution for an immediate problem facing a society & industrial/ business organization.by intensive study. Research methods may be understood as all those methods/techniques that are used for conduction of research. Empirical research is appropriate when program is sought that certain variable affects other variables in some ways. 3) QUALITATIVE RESEARCH Qualitative research is concerned with qualitative phenomena i. All those methods which are used by the researcher during the course of studying his research problem are termed as research methods. is to arrive at a solution for a given problem. the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. research methods can be put into the following three groups: i) In the first group we include those methods which are concerned with the collection of data.
For e. iii) The third group consists of those methods which are used to evaluate the accuracy of the results obtained. . In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them.e. i. Research Methodology is a way to systematically solve the research problem. who designs a building. has to consciously evaluate the basis of his decisions. he has to evaluate why and on what basis he selects particular size. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also. windows and ventilators. It may be understood as a science of studying how research is done scientifically. uses particular materials and not others and the like. Thus. when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. : an architect.data already available are not sufficient to arrive at the required solution..g. number and location of doors. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. ii) The second group consists of those statistical techniques which are used for establishing relationships between the data and the unknowns.
iii) The knowledge of Research Methodology provides tools to look at things in life objectively. ii) The knowledge of research methodology is helpful in various fields such as government or business administration. The researcher’s problems in her project as follows . iv) The knowledge of Research Methodology helps the consumer of research results to evaluate them and enables him to take rational decisions. DEFINING THE RESEARCH PROBLEM In research process. the first & foremost step happens to be that of selecting & properly defining a research problem.IMPORTANCE OF KNOWING HOW METHODOLOGY OF RESEARCH IS DONE? Importance of knowing the methodology of research or how research is done stems from the following considerations: i) The knowledge of methodology provides good training especially to the new research worker and enables him to do better research. A researcher must find the problem & formulate it so that it becomes susceptible to research. community development and social work where persons are increasingly called upon to evaluate and use research results for action.
RESEARCH PROCESS In the research. customer service or sales. the following order concerning various steps provides as useful procedural guidelines regarding the research process. the senior management team can then take an overview of the data collected to determine strategic response to be addressed across the company as a whole (c). However. cycle there is atypical truncation & integration between the company & the customer (a) The customer is interviewed about the truncation (b) The interviewed is processed (c) Than passed to a researcher (d) He reports the findings to the client researcher (e) From there the information is passed to through the management team (f) To the line managers & (g) Then to the front line who takes the necessary action (h) The front line can include those responsible for the communication. • Formulating the research problem. & problems of material function. (b). product design. Information from the customer passes directly to the front line in the first instance. The previous chart shown about research process consists of a number of closely related activities as shown through I to VII. problem relating to procurement of materials. (a) The front line can then acts & modify behavior can based on their specific information. . Problem relating to design & specification. They are as follows: Research process consists of series actions or step necessary to effectively carryout research & the designed sequencing of these steps.Problem of researcher’s project is to know the material planning. there are four major benefits to this approach for the general research. Line managers can collect & collate the information from the front line to the identify trends & exceptions to assist & ensure that corrective action is taken.
a brief summary of it should be written down. Determining sample design.e. those which relate to states of nature & those which relate to relationship between the variables. Prevention of the Results. The preparation of such a design facilities research to be as efficient as possible yielding maximal information. Preparation of the research. At the function of research should undeclared executive literature survey connected with the problem. 4) Preparing The Research Design The research problem having been formulated in clear-cut terms. Interpretation. he will have to state conceptual structure with in research would be conducted. understanding the problem thoroughly & rephrasing the same in to meaningful terms in analytical point of view. Analysis of the data. Collecting the data. Preparing the research design. Hypothesis testing. . the research will be liquated to prepare design i. 2) Extensive Literature Survey Once the problem is formulated. Execution of the project. In development of working plays on important role.e.• • • • • • • • • • Extensive literature survey. 1) Formulating the Research problem There are two types of research problem. 3) Development Of Working Hypothesis After extensive literature survey. At every outset the research must sign out the problem he wants to study i. he must decide the general are of interest or aspect of a two steps are involved in formulating the research. Hypothesis should be very specific & limited to the piece of research in hand because it has to be listed. research should state in clear them the working hypothesis or hypothesis.
• • • • • By observations Through personal interview Through telephone interview By mailing of questionnaire Through schedule 7) ANALYSING DATA . But in practice this may not be true.5) DETERMINIG SAMPLE DESIGN All the items under consideration in any field of inquiry constitute a universe or population. time & other resources at the disposals of the researcher. A complete enumeration of all the items in the population is known as a census inquiry. It can be presented that in such on inquiry when all the items are covered no elements of chance is left & highest accuracy is obtained. There are ways of collecting appropriate data. which differ considerably in contest of many costs. Some of the important Sampling design isSIMPLE RANDOM SAMPLING CONVENIENCE SAMPLING JUDGEMENT SAMPLING SYSTEMATIC SAMPLING STRATIFED SAMPLING QUOTA SAMPLING CLUSTER SAMPLING AREA SAMPLING MULTISTAGE SAMPLING SEQUENTIAL SAMPLING The researchers used sampling method in his project as follows 6) COLLECTING THE DATA In dealing with any real life problem. But in the case of survey any one or more of the following ways can collect data. it is often found that data at hand are inadequate.
ii) Structure & iii) Strategy (i) The plan is an outline of the research scheme on which the researcher is to work. The analysis of data required no closely related operation such as establishment of categories. how much. where. DEFINITIONS: . and strategy of investigation conceived so as to obtain answers to research questions and to control variance. structure. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.After the data have been collected. tabulating & then drawing statistical inferences RESAEARCH DESIGN Introduction of Research Design : Decisions regarding what. (iii) The Strategy shows how the research. measurement and analysis of data. the researcher turn to the task of analyzing them. it constitutes the blueprint for the collection. when. The research design consists of three important terms:i) Plan. Research design is the plan. (ii) The structure of the research is a more specific outline or the scheme. by what means concerning an inquiry or a research study constitute a research design. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data. the application of these categories to raw data through coding. The research design is the conceptual structure within which research is conducted.
According to Green and Tull. “A research design is the specification of methods and procedures for acquiring the information needed. measurement and analysis of data.” According to Bernard Phillips “The blueprint for the collection.” FEATURES OF RESEARCH DESIGN i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) Identifying the management problem Translating the problem Collecting information Reporting information Analyzing information Specification of procedure Information has a value accuracy of information Generation of information Data collection method Measurement approach Object to be measured Data to be analyzed Supportive decision making Importance of research design: i) ii) iii) iv) v) Dependent and independent variables Extraneous variable Control Confounded relationship Research hypothesis .
The researcher should keep in mind two types of data collection are used:- PRIMARY DATA These data are those data which are collected for the first time. COLLECTION OF DATA The task of data collection begins after a research problem has been defined & research designs process. Secondary data may either be published data. which are received by the researcher for social purpose from the actual field of study & for the first time. reports & publication. Usually published data are available in books.vi) vii) viii) ix) x) Experimental and non-experimental hypothesis testing research Experimental and control groups Treatments Experiment Experimental units. & thus happen to be original in character. SOURCES OF DATA . Primary data are the actual information. SECONDARY DATA Secondary data are those which have already been collected by someone else & which have already been passed through the statistical process. There are several methods for collecting primary data. magazines.
with them & this course of discussion is gathered fact. In this observation. language. the researchers meet people & discuss his social problems. behavior. the observer should be absolutely detached & objective in gathering facts. • Questionnaire Under this method. The researchers used sample size in his project as follows The researcher has not used the primary data. which is to be filled by the respondents. which is replied by the researcher himself by questions asked to the informers. • Interview In an interview. which includes questions concerning different aspects of the subject of study. festivals.SOURCE OF PRIMARY DATA • Direct Observation This method requires that the researcher should personally & directly observe the conditions & incidents of his field of study. conduct. Direct observation is the reliable method for gathering informative concerning the life. information is gathered through questionnaire. status. customs & traditions etc. • Schedule These are particular type of questionnaire. SOURCE OF SECONDARY DATA .
• Semi govt.N.govt. death rate. • Reports of communities & committees Various communities & committees of enquiry collect data that can be use by these who are investigating on the related subjects. that can be used for investigation. These institutions also conduct enquiry & publishes their report through which data can be used for investigation. universe.O. literacy rate etc. • Unpublished sources . publishes data for their use that are very much accurate & reliable. publishes a number of journal & periodic.• Published sources International publication U. publication Many semi. letters to the editor (of newspaper & magazines both) are published that can be used. • Newspaper. • Commercial research. • Government publication The state govt. organizations etc. magazines& letter to editors Newspapers & magazines also provides data for investigation. publications like municipal corporation board etc. publish data pertaining to birth rate. educational institutions. which are the best source of secondary data.
• Other sources Many other sources like film. which are important source of data collection for researcher. memories etc. public speeches etc. radio. According I have define my project as followsAs secondary data.Personals rewards like bibliography. • Official records Most of the organization maintains records of important information. form an important source of valid information in social research as a personal document. television. the researcher has used magazines & officials records Of “BSP”. Research hypothesis . letters. are some of the important source of information. diaries.
2) EOQ method is used for controlling the inventory.1) The flow of production used in BSP in to purchase material at a right quality & at a comparative lower prize. 6) Procurement of materials used by tender basis. 4) KODAK digit codification process is used in BSP 5) The best quality control process is used for materials. 3) LIFO. FIFO method is used for store-keeping. PREPARATION OF THE REPORT .
b) MAIN TEXT OF THE REPORT • INTRODUCTION It should contain a clear statement of the objectives of the research & an explanation of the methodology adopted in accomplishing the research. Writing of report must be done with great care keeping in view the following:The layout of the report should be as follows a) PRELIMINARY PAGES In this. Then there should be a table of contents followed by a list of tables & a list of graphs & if any. given in the report. the report should carry title & data followed by acknowledgement.Finally. the researcher has to prepare the report of what has been done by him. researcher should again put down the results of his research clearly & precisely. c) AT THE END OF THE REPORT .technical language. • MAIN REPORT The report should be presented in logical sequence & broken down into readily identifiable section. CONCLUSION Towards the end of the main text. • SUMMARY OF FINDINGS After introduction there would appear a statement of findings & recommendations in non.
journals. . the data is presented in a systematically typed or printed form. d) REPORT WRITING After analysis & interpretation. Bibliography i. specific style & simple language. consulted. 3) Charts & illustration in the main report should be used only if they present the information more clearly & forcibly. 2) Report should be in a concise. 4) Calculated confidence limits must be mentioned & the various constraints experienced in concluding research report operations may as well as stated. list of books.e. reports etc.Appendix should be prepared in respect of all the technical data. should be given in the end:1) Index should also be given specially in a published research report.
Chapter – 4 4.1 Data analysis and Interpretation .
IN CRORES RS.STORES& SPARES B. 6 40 5 4 63 2.INC 2 0 S R 5 20 0 10 5 10 0 5 0 0 S O E &S A E T RS P RS .IN CRORES 2007-2008 RS.84 395.NO.IN CRORES 2006-2007 RS. 2 3 50 9.07 5.IN CRORES 315.29 426.32 5. 7 40 0 30 5 3 57 1.This is the comparative study of stores & spares for the four financial years .24 5. 5 30 0 R .13 2 0 -2 0 04 05 2 0 -2 0 05 06 2 0 -2 0 06 07 2 0 -2 0 07 08 50 0 4 54 5. Table 1 PARTICULARS A.12 455. OF MONTHS OF CONSUMPTION 2004-2005 2005-2006 RS.75 4.
1 MATERIALS MANAGEMENT OF BSP .CHAPTER-5 5.
General: In order to ensure that optimum inventory levels are maintained at all times. Material Planning.5. Programming.1.1. it is necessary to plan and regulate the inflow of materials. components spares and other items that go into meeting the production needs within economic investment policies. For this purpose forecasting of future requirements has to be as accurate as possible. the indents are to be correctly prepared taking into consideration the stock and dues in and the deliveries from suppliers are to be so regulated that both excessive holding of stock and stock outs of material are avoided. System of Material Planning: A) Plant machinery and other items for capital works b) Iron and steel . & Indenting Material Planning: Material planning is the scientific way of determining the requirements of raw material.
(b) Adequate time for purchase department to arrange commencement of supply. (d) Proper timing of purchase of different types of stores to obtain maximum benefits. incorporate time schedules for actions by various users and purchase department. (a) Even distribution of procurement work throughout the year for all concerned. The time schedules constitute programmers of action to ensure the following. .C) D) Pipes Coal tubs E) Winding and guide ropes F) G) Power/trailing cables Cement and ac sheets Material Programming: The system to be followed for planning the procurement of different types of stores as explained above. (c) Effective control on material costs. (e) Adequate time for general manages and controlling offers of various stores.
b) Emergent Indents: Emergent indents will be submitted on pink coloured indent forms only in those cases where procurement under normal circumstances cannot be awaited due to an emergency/ breakdown. c) Local Purchase Indents: indents for procurement by local purchase will be submitted on yellow coloured indent forms where the . (g) Correct assessment of amount required for purchase well in advance to enable accounts department to make available required funds in time. actual purchase action will be taken only on receipt of two copies of formal indents on indent form as shown in annexure 54 by the purchasing agency from the indenters.(f) Even load of receipts spread over the whole year to enable proper checking. Types of Indents a) Normal Indents: It is to be forwarded to purchase department for capital items & centralized/deferred revenue items and to purchase cell of respective area for decentralized and rate contract items. inspection and timely issues by stores depots. Material Indenting : While material budgets dully concurred by financial authorities act as authority for purchase action.
Flowchart of B S P .requirement for a particular centrally procured item could not be anticipated and its purchase becomes urgent or inescapable. programming & indenting are integrated functions of material management involving most of the departments of the subsidiaries and CIL headquarters. Timely actions by all concerned & coordination at different levels will ensure optimum utilization of inputs. problems of overstocking and stockouts cannot be tackled successfully. resulting in reduction in costs and efficiency all round. Unless every officer/section/department carries out their respective functions in time and with company objectives in mind. CONCLUSION: M aterial planning.
efficiency etc. (c) Developing effective and on-going vendor relationships to ensure fair play and equity. in time. (b) Ensuring that items purchased are most economical. The Materials Obtained Shall Be: (a) Of right quality: (b) In right quantity: (c) At the right time: (d) At right prices: (e) From right sources: . taking into account their quality. spares and other stores and material required by indenters with a view to: production by correct (a) Helping and maintaining continuity of supplies as per user’s requirement.1. durability.2Objective and purchase The primary objective is to procure plant and equipment .5.
which may consist of the head of the purchase department. y. 3) Those which will be decided by the management or jointly by the tender committee and the management.(A) Tender Tender is the process of ascertaining the availability & prices of material in sealed covers which are opened & scrutinized at a predetermined time by a tender committee. 2) Those decided by a tender committee. The boxes are kept locked & all the tenders received are deposited in the appropriate tender boxes by the tenders themselves if delivered by hand or the purchased section if received through post. Tender Committee: 1) Those decided directly by the head of the purchasing department. materials are being procured. They will be marked x. . z & are distinguished by different colors. Types of Tender: 1) 2) 3) 4) Single Tender Limited Tender Open Or Advertised Tender Global Tender Tender Box: Separate tender box are kept for different groups of tenders. It is implied that the materials covered by the tender should give scope for competition. a representative from the accounts & department head against whose purchase requisition.
authorized dealers or sole agents can be considered for registration under special circumstances like for vehicle spares.(B) Registration of Suppliers: In order to have dependable sources of supply of stores. capable of producing Materials of the required standard shall be registered. (c) For indigenous items. in the opinion of the inspecting officers. where the manufactures do not directly market their products. This list should be circulated once in a year in the month of April. suppliers will be registered after ascertaining certain basic facilities available with them. Procedure for Registration: (a) Indigenous manufactures who own factory/workshop of their own and Are. spares and equipment of right quality at the appropriate time. The name of suppliers added/deleted to/from lists should be circulated to all the subsidiary companies. (b) Sole agent/distributors in the case of imported stores and stockiest in case Of imported stores and stockiest in case there are no agents/ distributors In the country for any particular type or class of goods shall also be Registered. Each company will maintain the following two lists: (1) Suppliers priority list indicating the items (2) Items priority list indicating the name (s) of suppliers Each subsidiary company will circulate the up-to-date list of registered suppliers together with the list of items for which they are registered to all other subsidiary companies and coal India limited for their information and guidance. . distributors. Performance of such registered suppliers shall be reviewed from time to time. The list of registered suppliers shall be kept up-to-date by each company by including any additions in the list or removing names of such firms whose performance are not found up to the mark.
. Payment from CIL. Payment for agency commission.(C) Payment to the Suppliers: Payment against the supply orders placed either by the subsidiary company or by CIL shall be arranged by the subsidiary companies. Wherever order is placed by CIL on any foreign supplier involving requirement of more than one subsidiary company. Payment Should Be Made: Payment authorities. involved. payment shall be arranged by CIL normally through letter of credit. if any.). if not specified otherwise. even though order is placed against the requirements of one subsidiary company by CIL (h. by the CIL management. The name of the Indian agent with their full address and the quantum of agent commission. if felt necessary. may also be considered.q. Payment for spare parts & other consumable items. subject to compliance of the government of India guidelines issued from time to time. Payment against trail orders. Payment against supply of equipment. may be considered in case of necessity. Payment through bank.
(f) To develop plan for the consumption of materials by different departments. policies and goals of an enterprise for a definite period in the future.3 – Material Budget Budget is an expression of a firms plan in the financial form for a period of time in future. 1) The past rate of consumption and . covering some or all of the activities of an enterprise for definite period of time”. The Purpose of Material Budget: (a) To plan the purchase (b) To determine the financial need for the budgeted purchases. “Budget is an estimate of future needs arranged according to an orderly basis. (i) To suggest ways and means for improvement in the next period budget. In other words. (h) To consider production schedule at the time of preparing planning and controlling the consumption of materials.1. it is a statement in numerical/ quantitative term expressing the plans. its ratio with production 2) 3) 4) The financial burden and investment pattern. (g) To detect the deviations. The demand and supply curve. trace the defect and apply correctives. (d) To establish control on purchase (e) To make arrangement of finance as per requirements. The cost of materials. . (c) To establish control on the consumption of the materials. Factors Governing a Material Budget.5.
.5. Responsibility: Accounts department (internal audit) will be responsible for stock verification of stores. spare parts for mining and earth moving machinery and drilling equipment and all charged off stores held in colliery/consumers units. B) The actual balances agree with the balances recorded in the stock cards / Ledgers. Object of Stock Verification: A) Stores and materials held tally with the descriptions and Specifications. C) The discrepancies noticed are investigated and adjusted. medicines and medical stores. proper accountable proper issue of stores.4 Stock Verification. The discrepancies detected if any. Types of Stores to Be Verified: All items of plant & machinery. will be investigated promptly and adjustment action taken at the earliest. general and consumable stores. D) Proper arrangements exist for the safe custody. material. It will be carried out departmentally under instructions from the chief materials manager by the stores personal of the stores depots / units independently. General: Stock verification is the process of physically counting/ weighing/ measuring all items of stores held in the stores depots and colliery stores and to compare the physical balances with stores recorded in the stock cards/ numerical ledgers.1. plant and machinery. storage.
. adequate staff is positioned in all the areas and other places for stock verification. D) To carry out test check in the items verified by the stock verifiers. 3) To test check the postings on the receipt and Issue side in the bin cards for The items verified by him to ensure that the receipt and issue side Postings are genuine. b) Plant and machinery in stores . B) To prepare 3 copies of annual stock verification Programmed.- Duties : A) To ensure that before commencement of the financial Year. and c) Plant and machinery deployed in projects. E) To ensure that the reconciliation of discrepancies is carried out within a specified period. Stock Verifier: 1) To carry out routine verification of stock comprising of any of the following: a) Stores in the custody of stores depots/units. C) To obtain progress report on stock verification periodically. 2) To carry out surprise verification of stocks wherever ordered by higher Authorities.
an additional bill of material Can be issued by competent authority 3) Internal audit of issues: All issues should be audited. If necessary. . Any excess/shortfall in issues should be Explained and accounted for. While Issuing Material Following Points Should Be Kept In Mind: 1) Planning of material requirement: All requirements of material should be thoroughly planned. soap. 5) Issue of sundry items: Certain stores are required in various departments. 2) Requisition of material: Based on the quantities mentioned in the bill of Materials should not be issued in excess of standards.1.Issue of Materials The term issue hereby means supply of materials from stores to the various workshops or departments of an organization. 4) Control of waste: Actual wastage should not exceed the standard Wastage fixed. Materials such as cotton waste. The bill of Material gives estimates of different items of stores required. Raw material and finished components are delivered to work point either by the progress department or stores. emery paper. Wastages Should be examined and any variance should be reported.5. Generally.5 . tools are issued to workers at the stores counter. are collected from the stores either by workmen or foremen. Either the Requirements can be budgeted or orders can be Placed strictly on the basis of requirements. etc.
d) Visitors.6. e) Opening and closing of sheds. f) General precautions. while opening the store.Security And Fire Prevention. .1. c) Every day.. the depot officer will ensure that the seals on locks are in order. c) In and out register. Routine Steps for Security: a) Security of stores is ensured by the security department through their vigilance. Some Important Points In Security Of Stores Is: a) Responsibility & functions of assistant / security officer.5. b) The depot officer and other personnel will ensure that necessary precautions are taken to prevent loss by theft / fraud. b) Store gate passes.
Suitability. ignorance and lack of discipline and failure to observe regulations . Majority of fires which effect materials.Fire Prevention: Fire is a great destructive natural force. serviceability and most important the training in the use of this equipment are equally important for effective control of fires in their initial stages. Some Important Points to Prevent Fire: a) b) c) d) e) f) g) h) i) j) k) Smoking Inflammable Materials Grass and undergrowth Stacking Spontaneous Combustion Storage Of Petroleum Oil and Lubricants Storage of gas cylinders Storage of rubber Electricity fire fighting equipment Fire practice Water supply Conclusion: All fires have small beginning and can be effectively tackled at this stage.. Most fires can be prevented by common sense and good discipline and it is vitally important that the highest possible standard of fire prevention is achieved and maintained so that losses by fire may be reduced to minimum. The prevention of fire is of vital importance and must be the concern of all. Fire fighting equipment is readily available. equipment and property are attributable to carelessness. The persons selected to man fire fighting organizations should be carefully selected and properly trained in the use and maintenance of the fire fighting equipments. .
Second hand empties Scrap Some Important Points of Disposal Of Stores: a) Surplus equipment b) Surplus stores c) Moveable and dead surplus d) Surplus second hand empties e) Unserviceable and scrap f) Declaration of surpluses and unserviceable equipment and stores for disposal. g) Survey committee h) Survey report i) Formation of lots . It is Therefore.7Disposal of Stores Disposal is a function of liquidating unnecessary Holdings in return for a price. with due regard to economy and administrative convenience. stores and spare parts. machinery and equipment. It releases valuable storage space and locked up investment. Old and unserviceable plant . Unwanted Holdings: a) b) c) d) Surplus serviceable equipment.1.5. necessary to resort to disposal of unwanted holdings.
. d) Standardizations facilitate the inter-changeability of parts and components. based on reduction of Varieties to a controlled workable minimum. e) Standardizations facilitate performance evaluation. b) Standardizations lead to specifications and variety reduction.8 Standardization Standardization is a process of systematization of stores. Advantage of Standardization: a) Standardizations lead to simplifications. without a corresponding reduction in stock cover. b) To ensure maximum convenience by simplification Rationalization to Increase productivity c) To adopt best possible solutions to recurring problems consistent with economy & convenience. d) To define requisite levels of quality so that practical Evaluation of quality and its attainment are made conveniently and economically.5. Standardization is rationalized store keeping and it has great importance in Inventory control as it leads directly to lower holdings and thereby secure a reduction in material cost. human effort and conservation of essential & scarce material. Aims of Standardization: a) To achieve economy in terms of cost.1. leading to economy and efficiency. c) Standardizations go a long way in ascertaining the best possible use of material.
purchased from the market and or used in completing a manufacturing process are called components. other than above. so that easy handling of inventory may be possible. parts and Subassembles which the company purchases from outside sources. The operating Staff. 2) Purchased components : These materials. according to their nature use & service . 1) Raw material : These are the raw materials and other supplies. meticulous handling and storing without exposing them any risk of damage . The person in charge of materials department is also responsible for classifying the material before they are sent for inspection . 3) Work-in-progress : An inventory not finally produced but still to go to manufacturing process is called Work in progress or semi-finished goods.f) Standardizations lead to easier. Several items carried into a store are generally divided into the following major types. Classification Of Materials It is essential for the employees of the material department to know about the important materials being put to use in the organization. particularly the storekeeper is required to make a close study of the Material during the process of storage. Namely suppliers. These products Have been manufactured or assembled from production and in . since he is responsible for their safe custody . 4) Finished goods inventories : These are complete finished products ready for sale. These items are to be purchased and kept in stock before and during production of goods.9. 5. fire or pilferage. Therefore there is a essential requirement to make the broad classification of material . entered into the stock ledger and kept in different bins. dealers or manufactures . cheaper and quality procurement of materials.1.
9) Chemical : Items like carbide.process inventories. . 7) Inflammables : Those items which are highly susceptible to fire. kerosene . paper etc. films . paints . etc can be classified under this category. such as petrol diesel . repairs and operating supplies which are consumed During the production process and generally do not form part of The product itself are known as MRO inventories. fall under this category. 6) Spares : These are also called feed stocks . acids. 10) General Stores: This category contains all those materials / items which do not Fall under any of the categories of stores. 5) MRO Inventories : Maintenance. 8) Packing materials : These includes all types of packing materials such as paper wood carvings . straw etc. saw dust .These are important inventories. The spares are governed by special policies and their problems are of special nature.
Sometimes the location and suppliers name are also included in the codification process. and the dimension of the item. . there should be some means of identifying them.1. have developed their own system of codification. codification is a process of representing each item by a number. Several departments use the same item by different names and store them in different places. Codification is the process of representing each item by a number or alphabet. Therefore.10 CODIFICATION Any business organization stores a large number of items. Code for SL.no of the items of general consumables. often running into thousands or lakhs. Code for equipment Code for spare Code for check digit Major class code of general consumables Code for minor class and detail class of general consumables. the subordinate. Many organizations in the government. the digit of which indicates the group.5. public and private sectors. Thus. The digits of which indicate the group. the type. the sub-group. the type and the dimension of the item.
Codification Methodology and Systems: 1) Alphabetical system of codification.Advantage Of Codification : 1) Facilities in avoiding long and unwieldy description. 2) Helps in providing accurate and logical identification. 5) Reduces the varieties. 7) Helps in making efficient recording and accounting. 3) Decimal system of codification. 6) Makes purchasing department more efficient. 9) Facilitates the pricing and costing. 2) Numerical system of codification. . 10) Assured production as planned and as required. 3) Prevents duplication. 6) Brisch system of codification. 4) Combined alphabetical & numerical system. 5) Kodak system of codification. 4) Makes standardizations of items. 8) Facilitates the mechanical recording.
Essentials Of A Good Inventory Control System : 1) Classification & identification of inventories: The inventory includes stock of raw materials. then. semi-finished goods. the functions of inventory control are to obtain the maximum inventory turnover with sufficient stock to meet all requirements. Finished goods and components etc.Inventory Control: Inventory control is a system which ensures the provision of the required quantity of inventories of required quality at the required time with the minimum amount of capital investment.1.11 . 4) Setting different levels & reorder points: Just to avoid the chances of over and under investment as well as running short of an item during the course of production.5. ordering costs and carrying costs should be balanced. . 2) Standardizations & simplification of inventory: For proper inventory control standardizations of material products as well as simplification of the production is necessary. Thus. 3) Adequate storage facilities: Adequate and well organized warehouse facilities with well equipped Proper handling facilities must be there. concerned with the control of the quantities or Monetary values of these items at predetermined level or within Safe limit”. 5) Fixing economic reorder quantity: In determining the economic order quantity (EOQ). the two opportunity costs. “Inventory control is.
reordering points.O. . safety level etc. 4) To allow flexibility in production scheduling : The maintenance of higher level of finished goods inventory relieves the pressure on production system and gives them scheduling flexibility.6) Adequate inventory records & reports: Information about quantity in hand or in transit or on plants location. and sales department. E.Q. 2) To ensure that the value of material consumed is minimum : The inventory control has to ensure provision of the required quantity of Material of the required quality at the required time with the minimum amount of capital. 3) To meet demand fluctuations: Flucations in demand are a rule rather than an exception in real life Situation. should designed in such a way that the clerical cost of maintaining these records must be kept at minimum. Objectives of Inventory Control: 1) To minimize the financial investment in inventories: The main objective of a system of inventory control is to minimize the capital blocked in the inventories. production . 7) Experienced personnel: The last but not the least important requirement of a successful inventory Control system is the appointment of intelligent and experienced personnel in purchasing .
3) Advantage of production of buying in large quantity. 9) To standardize information on stock level: Inventory control standardizes and centralists and centralizes information on stock levels & progress of stock issue. theft.5) To reduce surplus stock: Reduction of surplus stock is one of the essential requirements of effective inventory control. 4) Hedge against long or uncertain lead time . 2) Product availability. 8) To provide scientific base: Inventory control provide scientific base for short-term and large-range planning of inventory requirements. 7) To protect from various types of losses: Inventory control protects the inventories from pilferage. damages and unauthorized use . 6) To maintain the stock within the desired limit: Inventory control facilitates in maintaining timely records of inventories of all items. Reasons of Carrying Inventories: 1) Smooth production. waste loss.
Objectives of Inspection: 1) To get the materials and stores of right quality.1. A qualitative product should have the following: Shape Colour Dimension and weight Composition Strength Workmanship of finish. 2) To procure the right quantity of materials. Where there is no separate inspection Department or where that department deals only with a limited number of items of stores .5. 4) To use the money fruitfully 5) To keep the purchase and store staff always Watchful in order to avoid Irregularity.12. . the storekeeper may be required to undertake the Examination of goods for quality as well as sum total of the number of related characteristics or properties. 3) To make the suppliers careful while supplying the materials to the stores Department. Inspection Of Stores Inspection is an essential tool of quality control of all goods and materials Purchased and received in the stores. etc.
the use of quality materials is ensure this facilitates manufacture of quality products. . 2) Increase of goodwill: The goodwill of the business concern is enhanced due to high quality production .Advantages of Inspection: 1) Use of quality goods / materials: Through inspection. 5) Achievements of various savings: Various Savings are bought because of lower cost curve. 4) Production of standardization goods: An industrial concern which uses inspection of raw material becomes capable to manufacture standardized goods . 3) Cuts down repair and renewal costs: Supplying production department with standardized items reduces the cost of depreciation and cuts down repairs & cost. 6) Increase in profitability and employment: Inspection of materials raises profitability and increases production which leads to greater opportunities of employment.
He acts as a trustee of store house. Objectives of Storekeeping: 1) Minimizing cost of production : The main objective of store keeping function is to minimize the costs involved. cost of capital. 2) Providing efficient services to various department : Receiving stores from the purchase department and checking with The proper document and bring them on charge. inspection. .1. handling storage. Cost include storage cost. the possibility of their being stolen or damaged due to fire or any other cause is reduced and material can be easily located.5. 3) Establishing coordination : The stores department is required to establish very good co-ordination with the materials control department . Materials is kept in storehouse in such a manner so that . Airy. replenishment . fire. 5) Preservation of stores : In order to preserve the materials and goods. etc. there should be bright. 4) Advising the management : The advice of stores manager relating with physical verification. disposal of scraps. obsolescence .13 Store Keeping Storekeeping means to make safe custody of all the items of material stocked in the storehouse the person looks after the storekeeping is know as the storekeeper.proof and cross – ventilated storeroom in which materials could be kept in safe custody .
2) Storage and preservation of material : The store keeper is responsible for placing the materials in their appropriate places inside to store and for ensuring that they are maintained in good condition . . the storekeeper proceeds to check the quantity of materials. 4) Issuing material : The last function of storekeeping is to issue correct materials against demand under proper authority .6) Regular review of stores : It is important to carry out a regular review of the physical existence of stores in hand. 7) Complete record : The storekeeper duty is to maintain proper records of material received and issued to production department. Functions of Storekeeping: 1) Receipt of material : The receipt of the materials and making necessary entries in the material receipt book and daily receipt voucher . 3) Maintaining stores record : Proper maintenance of records assists the management in minimizing the cost of storage.
Chapter – 6 6.3 CONCLUSIONS .2 SUGGESTIONS 6.1 Findings 6.
As the main objective of this project is to know about the material management and its functions in BSP through effective material management the organization may achieve their target. I have find out in this project that the effective inventory control minimize the financial investment in inventories because the capital requires carrying inventories cost money & holding assets in the form of inventories results in decreased liquidity through inventory control to meet its demand. I have find out that the efficient store keeping minimize cost of production, providing efficient services to various departments, establishing co-ordination & advising the management. The BSP has used the KODAK system for codification which is very useful for the identifying the materials. In BSP the material is purchased from the different vendors. The company give notice & issue the tender & the who supplier fulfill the terms & condition of the tender given to them. Tender issue in 1 to 5 bid option acoording to requirement.
On the basis of my survey. I discovered few points that if considered will add up to its profit & goodwill. Following are some suggestion with the best of my knowledge. 1) As we know BSP use inspection at the time of production only, I suggest they should provide inspection after production also 2 To maintain the flow of production, the BSP should purchase materials at a right quality, in a right quantity, at a comparative lower price & to ensure a uniform flow of materials. 3) The BSP should adopt the best method of inspection & the inspection Officer or inspector must be qualified & honest person for maintaining the quality. 4) The company should store their materials in a proper manner. The possibility of their being stolen or damaged due to fire or any other cause is reduced & materials can be easily located & issued as when required by production department. Material Management is a service function & having a great importance to other section. By material management the company gets many benefits like lowering cost content, to classified the materials, to codification of materials etc. and to adopt this material management function the company will achieve their target.
Material management as name suggest management of materials. As we know the cost of materials for any of the industry in the world is approximately 64% to 65 % if the cost of material is reduce for the industry then any of company in the world can make unbelievable profit. The main motive of this sentence is to elaborate the value of material at the industry like Bhilai steel plant. Where almost 1 lakh to 1.5 lakh materials are required to run plant, everyday.If these are used properly without miss use and with proper management then definitely can be maximized. Bhilai steel plant is a fully integrated plant, they have good purchasing facility,they have well store system and also good inventory control. In Bhilai steel plant all the functionality of material management is integrated system like purchasing, store, inspection, inventory control and also finance. MMIS is the department which is working for integrating of plant. Material management increases the profit, since the best quality of product can be made at lowest possible cost. It makes good buyers & seller by providing qualitative produce at reasonable price. Tools and equipments are effectively provided there is an execution of good material management.
In an industrial organization the materials manager is required to keep the wheel of the industry moving. However lot of crises is arising before the materials managers now days are being pushed to tight corner. Many problems are faced by the materials management like material planning. Design & specification, procurement & obsolescence are the main problem in material management.
Chapter – 7 7.1 Bibliography
NET c) WWW.. M.INWWW. ‘WHAT IS MATERIAL MANAGEMENT’. ‘MATERIAL MANAGEMENT’. NEW DELHI: KITAB MAHAL PUBLISHERS.C. 3) AGARWAL. C.1) VARMA. NEW DELHI: FORWARD BOOK DEPOT EDUCATIONAL PUBLISHERS.CO.SAIL.. GOOGLE. 4) INTERNET: a) WWW. P.SAIL.COM b) WWW.WIKIPEDIA.) (1984) ‘MATERIAL MANAGEMENT’. (EDS. 2) SHARMA. NEW DELHI: SULTAN CHAND & SONS EDUCATIONAL PUBLISHERS.M.B.COM ..
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