Chetan Guleria - DR Senthil Kumar

ESTABLISHMENT OF OPTIMUM ORDER QUANTITIES
FOR VARIOUS RAW MATERIALS
SIP PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS OF THE PGDM PROGRAMME
By: Chetan Guleria

2013082
Supervisors: 1. Mr Binod Kumar Bhutra
2. Dr Senthil Kumar
INSTITUTE OF MANAGEMENT TECHNOLOGY

NAGPUR
(2013 -2015)
Summer Internship Project Report
On
"Establishment of optimum order quantities for various raw materials"
At Teracom Ltd., Goa
Project Time: 14th April - 7th June, 2014
Submitted by,
Chetan Guleria
Roll No. - 2013082
11th July, 2014
Summer Internship Project - Teracom Ltd. Page |2

ACKNOWLEDGEMENT
A summer project is a golden opportunity for learning and self-development. I consider

myself very lucky and honoured to have so many wonderful people lead me through my
completion of this project.
I am grateful to Mr. Binod Kumar Bhutra (Chief Operating Officer of Teracom), who in spite
of being extraordinarily busy with his duties, took time out to hear, guide and keep me on the
correct path. I do not know where I would be without him. A humble 'Thank you' Sir.
I would like to express my gratitude and thanks to Mr. Chandrashekhar Khanna (Senior
Manager OFC Operation) and Mr. Sushil Kumar Singh (Assistant Manager Marketing) for
giving me such attention and time. I choose this moment to acknowledge their contribution
gratefully.
I express my sincere gratitude to Dr Senthil Kumar, for his stimulating guidance, continuous
encouragement and supervision throughout the course of present work. Thank you,
Respected Sir.
Last but not the least I would also like to thank those who shared valuable information that
helped in the successful completion of this project.

TABLE OF CONTENTS
Acknowledgement 3
Completion Certificate 4
Introduction 6
Objective of the study 8
Brief description of the concepts 9
Company Analysis 20
Tabulation and findings 26
Interpretations and conclusion 35
Recommendation 36
Limitations of the study 37
Bibliography 38

INTRODUCTION
Teracom is one of India's fastest growing company with business interests in Telecom and
power cables. The company is incepted in 2002 and the company's turnover has grown to
INR 8 billion with a CAGR of 107%.
Within a 12 years, Teracom has established 5 world class manufacturing factories, spread
over 1.5 million square feet to manufacture Optical Fiber Cable, FRP rods, Broadband CPEs,
optical transmission equipment's, Microwave equipment's, LT/HT power cables and
ACSR/AAAC conductors. Company's EPC division has Pan India Presence with very good
track record of timely completion of many big Telecom Rollouts, FTTH networks, 220
KV/440 KV Transmission Lines, 220 KV Underground Cabling, Substations and Integrated
Security Solutions. They also established a network of over 100 after-sale service centres
spread all over India.
Teracom has put in place Quality Management System and Processes in accordance with ISO
9001 and ISO 14001 international quality standards to ensure continuity and sustainability of
their commitment and continuous improvement in their products to their valued customers.
The major competitors of Teracom are:

Sterlite
Paramount
HFCL
Finolex
Aksh
Sudarsham
UM Cable

The major Domestic Clients of Teracom are:
BSNL
MTNL
AIRTEL
AIRCEL
RELIANCE COMMUNICATIONS
TATA COMMUNICATIONS
INDIAN RAILWAYS
 RAILTEL

OBJECTIVE OF THE STUDY
The objective of the study is to establish optimum order quantities for various raw materials
by maintaining the right amount of inventory, reducing the carrying cost or opportunity cost
as well as holding cost, specifying the right Lead time, Re-order point, Safety stock and then
implementing EOQ model for right amount of order to be placed.
The objectives can be summarised as:
1. To minimize the possibility of disruption in the production schedule of a firm

for want of raw materials, stocks and spares.
2. To keep down capital investment in inventories.

BRIEF DESCRIPTION OF THE CONCEPTS
The concepts used in this study are:
o The economic order quantity (EOQ) which enables determination of optimal size of
order to be placed on the basis of demand or usage of the inventory. o
The technique of safety stocks to overcome problems of uncertainty.
o The order point formula, which tells us, the optimal point at which to reorder a
particular item of inventory.

Various types of raw materials used in the manufacturing of the optical fiber are:-
1. Glass fiber
2. Coloring ink
3. PBTB (Polybutylene Terephthalate) 4.
HDPE(High Density Polyethylene)
5. FRP(Fiber Reinforced Plastic)
6. Filling compound (jelly)
7. Flooding compound (jelly)
8. Binder Tape
9. Nylon/Polyester Thread
10. Metal/steel tape
11. Water blocking tape
12. Ripcord
13. Water swell able yarn
14. Glass yarn
Summer Internship Project - Teracom Ltd. P a g e | 10

Description about the raw materials
1. Glass fiber:
a. Fibre Optics is the communications medium that works by sending optical

signals down hair-thin strands of extremely pure glass or plastic fiber. The
light is "guided" down the centre of the fiber called the "core". The core is
surrounded by a optical material called the "cladding" that traps the light in the
core using an optical technique called "total internal reflection." The fiber
itself is coated by a "buffer" as it is made to protect the fiber from moisture
and physical damage. The buffer is what one strips off the fiber for
termination or splicing.
b. Glass fiber is coated with a protective plastic covering called the "primary
buffer coating" that protects it from moisture and other damage. More
protection is provided by the "cable" which has the fibre and strength
members inside an outer protective covering called a "jacket".
Fig 1 (Optical fiber structure)

Generally there are 2 types of glass fiber:
o Single mode optical fiber

o Multi-mode optical fiber
Single mode optical fiber: A single-mode optical fiber (SMF) is an optical

fiber designed to carry light only directly down the fiber - the transverse mode. Modes
are the possible solutions of the Helmholtz equation for waves, which is obtained by
combining Maxwell's equations and the boundary conditions. These modes define the
way the wave travels through space, i.e. how the wave is distributed in space. Waves
can have the same mode but have different frequencies. This is the case in single-
mode fibers, where we can have waves with different frequencies, but of the same
mode, which means that they are distributed in space in the same way, and that gives
us a single ray of light.
Single mode optical fiber is further classified on the basis of cladding diameter and
attenuation such as:
o TYPE-1 (G.652 B)
o TYPE-2 (G.655)
o TYPE-3 (G.652 D)
o TYPE-4 (656)
o TYPE-5 (G.657 A) o
TYPE-6 (G.657 B)
Fig 2 (Different types of multimode and single mode optical fiber)

Multimode optical fiber: Multi-mode optical fiber is a type of optical fiber mostly
used for communication over short distances, such as within a building or on a
campus. Typical multimode links have data rates of 10 Mbit/s to 10 G-bit/s over link
lengths of up to 600 meters (2000 feet) more than sufficient for the majority of
premises applications.
2. Coloring ink:
a) To color code optical fibers, a ultraviolet light curable ink is mixed with a
carrier fluid. The mixture is then applied to a horizontally moving optical fiber
by an ink applicator using a rigid applicator die. The fiber then passes through a
convection oven to evaporate the carrier fluid and an ultraviolet light radiator to
cure the ultraviolet light curable ink.
b) Coloring ink is used for coloring the glass fiber.
c) It is available in different colors such as: red, green, yellow, purple, pink, green
etc.
d) This coloring is the first coating which is done on the glass fiber so to
differentiate between the fibers.
3. PBTB (Polybutylene Tereaphytalate):
It is act as the secondary coating of the fiber.
Fast crystallization, easy to mold.

oC, high deflection tempera ion.
-enforced, good mechanical strength

Properties:-
1. Density(gm/cc) :- 1.30 - 1.33 2.
Melting Point(°c) :- 220 - 227 3.
Water Absorption(%) :- < 0.5
4. HDPE (High Density Polyethene):
This element is used in the sheathing process in which we form the final cable.
done.
Fig 3 (HDPE coating on the optical fiber)
- It should be smooth and even.

- Resist from cracking and swelling.
- Should have antioxidant properties.
- Density (gm/cc) :- 0.94 - 0.958
- Carbon black dispersion should be uniform -
Tensile strength : >= 2 kg/nm

5. FRP (Fiber Reinforced Plastic):
It is generally used for providing strength to the optical fiber cable.
It is made up of electrically insulated non-alkaline glass.
Fig 4 (FRP rods used in manufacturing of optical fiber cable)
It is coated with Ethylene Arcylic acid.
Rod should have smooth and even surface.
hazards.
6. Filling compound (Jelly):
led in the loose tube during the buffering process.

1. Highly purified
2. Air bubble free.
3. Odorless
4. Can able to block the water
5. Non- melting point
6. Temp range in degree Celsius :- -30 to 80
7. Flooding Compound (Jelly):
It is used for interspatial flooding and water blocking.

It is generally filled during the binding process of the loose tubes (x-z
arrangement).
Nature of jelly:
- Should be highly purified
- Soft
- Non-toxic
- Hydrophobic gel
- Should be manufactured from high quality solvent
- Temperature range in degree Celsius :- -30 to 80
8. Binder Tape:

9. Nylon/Polyster Thread:
1. Properties: Should be a multi flament nylon yarn.

2. Should be uniform in diameter.
3. Breaking load(kg) :- 7 kg 4.
Elongation: 15% max.
5. Shrinkage at 190° c  5 %
10. Water Blocking Tape:
Should fill up spaces in cable to stop water immersion.

Suitable for pure water, ocean water & diluted oceanic water solution.
11. Metal/Steel Tape:
It is co-polymer coated
Used for armoring of optical fiber to make the cable hard and termite proof.
The tape can be in the metal such as iron or in steel metal.
Thickness :- 0.125mm (min.)
Elongation :- 40%
Composition of steel tape:
- Carbon :- 0.08%(max)
- Maganese :- 2.00%(max)
- Phosphorus :- 0.045%(max) -
Sulphur :- 0.03%(max)
- Chromium :- 18% to 20%
- Nickel :- 8 to 10.5%
- Silica :- 0.75%

12. Ripcord:
damaging other delicate substances.

is placed under the jacket of cable.
Unique PF coating delivers excellent resistance to abrasion during cable field
accessing
Flat version available

-wicking finish to prevent water penetration
-
- Single ply :- low strength
- Double ply :- more strength -
Tera ply :- high strength
- Linear density 20 kg

Fig 4
Fig 5

COMPANY ANALYSIS
Teracom is one of the leading private sector companies in India contributing enormously to
the growth of the Telecom and Power Infrastructure Sectors of the world. The company
excels in its supply of high quality and cost competitive products and Turnkey Services. With
significant business interests in two exponentially growing Business Sectors - Telecom and
Power, Teracom caters its fully integrated products and services to a prestigious list of
clients. Telecom was formed in 2002. Teracom have ISO 9001 and ISO 14001 certification,
which shows their commitment, quality and environmental friendly system. We have worked
with superior brands like Siemens, Nokia, Ericsson, Alcatel, Nortel, Motorola, Airtel,
Reliance, IDEA, ITI, MTNL, etc.
Teracom efficient corporate strategies has resulted effectively into company's low cost
manufacturing using latest technology, effective supply chain management and wider reach
through multiple service centres. Teracom's highly skilled manpower with superior
technology absorption skills has helped accomplish its goal of excellent service to its
customers. We have set-up Projects and Systems Integration Units to provide optimal
solutions, interconnectivity and compatibility of our products to customers' existing systems.
Teracom's consistent effort and innovations in the field of Telecom and Power has resulted in
acquiring National Telecom Award for 'Emerging Manufacturer in India'.
We have set up world-class manufacturing centres in Goa and Uttarakhand to cater to the
diversified needs of the customers. We have also established a network of after-sale service
centers to ensure timely service to our valuable customers. Our main products include optical
fiber cables, telecom optical products and solutions, telecom turnkey projects, power cables
and Power turnkey projects.
Teracom Limited is a renowned fastest growing telecom equipment manufacturer in India run
by experienced professionals. In 2002 a state-of-art plant was set up at Goa for manufacturing
all kind of Optical Fiber Cables (OFC) with accessories and Telecommunication
Transmission equipment. The facility is spread over a covered area of 37,381 Sq. mtr. The
plant, strategically located at Kundaim, an industrial suburb of Goa, at a distance of 30 km
from the capital of Goa (Panjim), is a cutting-edge manufacturing facility in India.

Since then Teracom has become an established Optical Fiber Cable manufacturer in India.
The company signed MOU with Hyundai Curitel Inc. Korea & Huawei Technologies Co.,
Ltd, and China for supply of CDMA 2000 1x Hand Held Terminals (HHT) and Integrated
Fixed Wireless Terminals (IFWT) to Bharat Sanchar Nigam Limited (BSNL).
The Wireless & Transmission Division of the company is in the forefront of Design &
Manufacturing, supplying and installation of modern telecom equipment's in India and
Overseas networks. TERACOM stands as a pioneer in the fraternity of Indian Private Sector
companies, being the first one to provide a complete After Sales Service to Bharat Sanchar
Nigam Limited (BSNL) with support network of service centers all over India.
Over the years, TERACOM has transformed itself from a production-based operation to a
product and solution based company, with strong emphasis in design and development.
TERACOM is the only company in India has supplied Approx 800K phones by partnering
with key international giants. TERACOM is continuously expanding its product offering in
view of the constantly increasing telecom needs in Indian market. With its expanded range of
capabilities, it develops its own products and solutions. With its infrastructure, product range
and expertise, TERACOM delivers innovative, customized and turnkey solutions for
networking and transmission systems, solutions in telecom products and commercial market
segment. Within a short span of Eight Years Teracom has established 5 world class
manufacturing factories, spread over 1.5 Million square feet to manufacture Optical Fiber
Cable, FRP Rods, Broadband CPEs, Optical Transmission Equipment's, Microwave
Equipment's, LT/HT Power Cables and ACSR/AAAC Conductors. Our EPC Division has
Pan India Presence with very good track record of timely completion of many big Telecom
Rollouts, FTTH Networks, 220 KV/400KV Transmission Lines, 220KV Underground
Cabling, Substations and Integrated Security Solutions. To ensure timely after sale service of
our manufactured Telecom Products, we have also established a network of over 100 after-
sale service centers spread all over India.
To ensure continuity & sustainability of our commitment & continuous improvement in our
products to our valued customers, Teracom has put in place Quality Management Systems &
Processes in accordance with ISO 9001 & ISO 14001 international quality standards.
As a long-time leader, Teracom has achieved numerous industry "firsts", including the first in
India to commercially supply 3G USB Data card of 3.6 & 7.2 Mbps, the first company in

India to develop Wimax CPE, First Company in India to be selected for Integrated Security
System.
Teracom always work on the futuristic products & services and every product which we
supplied has its own significance. Teracom has been pioneer to envisage new ideas and
successfully convert these ideas into a profitable business segment, Teracom growth chart
itself tells the rest. Some of the innovation, which were among the first as far as Indian
Telecom industry is concerned and unique when thing about manufacturing in particular.
COMPANY HIGHLIGHTS
One of the largest privately-held companies in manufacturing of optical fiber.

More than 50 different types of tested optical fiber cables.
MISSION: Products & services to our customers and a dynamic working environment for
our employees.
VISION: To be one of the main independent suppliers of telecom products and to provide
products & solutions to our customers from the design stage to mass production.
TERACOM'S CORPORATE
For all Teracom members, teamwork is the key to success. The workforce is a team of dedicated,
down-to-earth professionals who shares common principles of honesty, tenacity, passion and
creativity. The continuous challenge to grow and improve has been a constant engine for
evolution since the company first began. The excellent results achieved throughout its history
testify to the success of Teracom policy of recognizing the value of the people that make up the
company above all else. Teracom heterogeneous workforce is an indication of the company's
belief in equality for all and its recognition of honesty, ability and the desire to improve as key
personal characteristics. The average age of employees is around 27 and all employees share a
common commitment to the Teracom Projects.

Conscious of the needs of the social and natural environment,Teracom actively supports actions
to benefit the community, humanitarian programs, and projects that bring access to new
technologies closer to everyone.
QUALITY POLICY
"Teracom is committed to satisfy the customers in respect of quality, performance & delivery
schedule and strive for continuous improvement by involving all employees through
teamwork."
TERACOM COMMITMENT TO QUALITY
The Company's quality assurance systems are geared towards customer service from initial
customer contact through product development to delivery of product and after sales support.
Teracom is ISO 9001 and 14001 certified. Continuous improvement is the foundation of
Teracom working policy.
Teracom is committed to delivering the highest quality products to its customers, out of our
ISO 9001 and 14001 certified Manufacturing facilities to our outstanding engineering
Validation process. All of Teracom products undergo rigorous testing as well as restricted
reliability testing to ensure they operate at peak performance levels throughout the product's
lifetime.
Quality is the core of our organization. ISO 9001, ISO 14001 certified manufacturing
processes stand testimony to the world-class quality that we maintain. Quality commitment,
continuous innovation and customer satisfaction are the key elements, which constitutes the
framework of Teracom Quality policy.
The world-class quality gets reflected in our products, processes and our work environment.
All the products supplied to the Clients are meticulously tested using the most modern
equipment's.

CERTIFICATES
Fig 6 (Certificates of TERACOM)

QUALITY
Quality is a key part of Teracom's working philosophy and built into the products from initial
design conception, through production and after sales service.
The company operates a quality management system that complies with the requirement of
ISO 9001: 2000 standards. Certificate Number: I2445.02
Teracom is also accredited by ISO 14001.
TERACOM AWARDS
May 2008.
For Industrial Development from Indian Economic Development & Research Association
on 11' Aug 2008.
Delhi on 21' Aug 2008

TABULATION AND FINDINGS
The process involved in manufacturing of OFC are described below and what are the raw
materials used in it. As well as the amount of raw material required for the 24F METAL
FREE OPTICAL FIBRE CABLE (G 652 D FIBRE) with double HDPE Sheath. also with it
the amount of raw material which is already in inventory and what to order and how to
minimize the amount of raw material which is to be purchased without hampering the
production process.
1. COLORING OF GLASS FIBER
s process we apply color the glass fiber by the help of coloring machine.
done so to differentiate between the fibers.

the fiber increases and thus
attenuation of the fiber is also increased.
that the fiber is passed through the coloring ink and then the colored fiber is passed
through the UV LAMP so that the color applied to it get dries up and after that the
colored fiber is rolled on the drum placed on the other side of the machine.
2. BUFFERING PROCESS
This is the second process which is done in series to make optical fiber cable.
different no. of fibers are packed.
fiber from damage and from water.
1. PBTB
2. Filling jelly
3. Colored glass Fiber.

3. BINDING OF LOOSE TUBES
-z manner.
Binding of tubes is done by the help of binder tape which helps in making the
surface even and smooth.
1. Binder tape
2. Loose tube
3. Flooding jelly
4. Fillers
5. Nylon thread
4. FIRST COATING OF HDPE COMPOUND (Sheathing Process)
even form after that the loose tube is passed through the die which forms the coating
of HDPE around the loose tube.
Fig 7 (Inner sheathing process of OFC)

1. HDPE
2. Ripcord
3. Bounded loose tubes
5. SECOND COATING OF HDPE COMPOUND (Sheathing Process)
coated cable.
process.
Fig 8 (Outer sheathing process of OFC)
1. HDPE
2. Glass yarn

6. PRINTING AND MEASUREMENT PROCESS
on the cable.
Following things are printed on the cable:
1. Company logo
2. Type of fiber
3. No. of fibers in the cable
4. Year of manufacture
5. User's identification
6. Cable ID
7. Marking of length after every meter
Fig 9 (Printing and Measurement process)

7. WINDING ON THE DRUM
In this process we will wrap the formed optical fiber cable around the wooden drum.
- The value of the tension applied on the cable should be two kg

- Printing done on the cable should be accurate and clearly visible.
RM STATUS FOR BBNL 24F DOUBLE SHEATH DUCT

RM Status for BBNL 24F DOUBLE SHEATH DUCT
Required Raw Balance to be
Raw Material Source Grade BOM / KM Unit Remarks
material for 693 km Available Procured
M/s Sterlite Technologies
FIBERG652D Limited,Aurangabad G652D 25.20 Kms 17463.6 5000 12464 Approved source can not be changed.
BLUE 0.06 Kg 38 14 24
s
COLOURINGINK N /A ORANGE 0.06 38 13 25
Kg
GREEN 0.06 38 9 29
s
PBTP M/s E I DUPONT LTD. CRASTIN 6129 10.76 7457 3000 4457 Approved source can not be changed.
BLUE 0.04 Kg 25.0 17 8
ORANGE 0.04 s 25.0 27 -2
GREEN 0.04 Kg 25.0 50 -25 -
MASTERBATCHPBTP N /A
BROWN 0.04 s 25.0 57 32
GREY/SLATE 0.04 Kg 25.0 147 -122
WHITE 0.04 s 25.0 92 -67
M/s ITCO INDUSTRIES LIMITED,HOSUR Kg
FILLINGJELLY ITCOGELT-250 8.36 5793 0 5793 Approved source can not be changed.
s
FRP M/s TERACOM LIMITED, GOA 2MM 1.03 714 204 510 Approved source can not be changed.
Kg
M/s ITCO INDUSTRIES LIMITED,HOSUR
s
FLOODINGJELLY ITCOGEL C-480 7.90 5474.7 180 5295 Approved source can not be changed.
Kg
s
Kg
s
Kg
s
Kg
s
Kms
Kg
s
(Type - D, Non -
GLASS YARN 1260Tex INDORE COMPOSITEPVT. LTD., Water Blocking Type) 22.28 Kg 15440 0 15440 Approved source can not be changed.
PITHAMPUR Green Coloured s
M/s SANKHLAPOLYMERS PVT. LTD., HDP 333 UV & HDP

HDPE 89.63 62213 184 62029 Approved source can not be changed.
SILVASSA 333 UV AT
Kg
Width:28 mm s
Nominal
POLYFILM M/s. Rainbow Plastic 1.45 1004.85 88 917 Approved source can not be changed.
Thick: 36micron
Nominal Kg
3PLYPOLYESTERRIP s
M/s. Sunrise spin tex 3000 DN Wax Coated 1.25 866 0 866 Approved source can not be changed.
CORD(SUNRIES)
LOW Shrink Binder (1680
M/s. Sunrise spin tex 1680 DN 0.93 Kg 644.5 290 354 Approved source can not be changed.
s
Kg
s
DSUNRISE)
EMBOSSINGTAPE N /A WHITE 1.025 Nos. 710.33 250 460
WOODEN DRUM N /A 1050MM 0.5 Nos. 346.5 0 347
TABLE 1
EOQ MODEL:
Number Total Cost

Lead Time RaRequairedial EO
Q
dAnnuald
Raw Material Raw Material Raw Material w m ter eman of Orders per year
for 693 km
in days (for 1 month) (Rounded (Rounded (Rounded (Rounded
off) off) off) off)
M/s Sterlite
FIBER G652D Technologies G652D 5 17463.6 209563 14476 14 144763
Limited,Aurangabad
BLU 3 38 457 676 1 6763

E
COLOURING INK N /A 3 38 457 676 1 6763
ORANGE
3 38 457 676 1 6763
GREEN
PBTP M/s E I DUPONT LTD. 6 7457 89480 9459 9 94594
CRASTIN 6129
6 25.0 299 547 1 5472
BLU
E 6 25.0 299 547 1 5472
ORANGE 6 25.0 299 547 1 5472
MASTER BATCH N /A 6 25.0
PBTP GREEN 299 547 1 5472
BROWN 6 25.0 299 547 1 5472
GREY/SLATE 6 25.0 299 547 1 5472
WHITE
M/s ITCO INDUSTRIES 5 5793 69516 8338 8 83376
FILLING JELLY LIMITED,HOSUR
ITCOGELT-250
M/s TERACOM LIMITED,
2 714 8565 2927 3 29267
FRP GO
A 2MM
M/s ITCO INDUSTRIES
FLOODING JELLY LIMITED,HOSUR ITCOGEL C-480 5 5474.7 65696 8105 8 81053
(Type - D, Non -
GLASS YARN INDORE COMPOSITE
Water Blocking Type) 7 15440 185280 13612 14 136118
1260Tex PVT. LTD., PITHAMPUR
Green Coloured
M/s SANKHLA
HDP 333 UV & HDP
HDPE POLYMERS PVT. LTD., 5 62213 746556 27323 27 273232
333 UV AT
SILVASSA
Width:28 mm
Nominal
POLYFILM M/s. Rainbow Plastic 3 1004.85 12058 3472 3 34725
Thick: 36micron
Nominal
3PLYPOLYESTER RIP
M/s. Sunrise spin tex 3000 DN Wax Coated 4 866 10395 3224 3 32241
CORD (SUNRIES)
LOW Shrink Binder

M/s. Sunrise spin tex 1680 DN 4 644.5 7734 2781 3 27810
(1680 D SUNRISE)
EMBOSSING TAPE N /A WHITE 2 710.33 8524 2920 3 29196
WOODEN DRUM N /A 1050MM 2 346.5 4158 2039 2 20391
TABLE 2
RE-ORDER POINT
i
Raw Material Raw Material Raw Material
Lead Time (in days) Daolynddeemaonfd Re-
oOrnddeerdPoifnt
(r u d) (r u o)
M/s Sterlite
FIBER G652 D Technologies G652D 5
748
Limited,Aurangabad 3742
BLU 3
COLOURING INK N /A E 3
2
ORANGE 3 5
PBTP M/s E I DUPONT LTD. GREEN 6
320
CRASTIN 6129 6 1917
BLU 6
1
E 6 6
MASTERBATCHPBTP N /A
ORANGE 6
1
GREEN 6 6
BROWN 6
GREY / SLATE
WHITE
M/s ITCO
1
FILLINGJELLY INDUSTRIES 5 6
ITCOGEL T-250
LIMITED,HOSUR
M/s TERACOM
FR 2MM 2
P LIMITED, GOA
M/s ITCO INDUSTRIES
LIMITED,HOSUR
31 61
FLOODINGJELLY ITCOGEL C-480 5
INDORE COMPOSITE (Type - D, Non -

GLASS YARN 1260Tex PVT. LTD., Water Blocking Type) 7
PITHAMPUR Green Coloured
662 4632
M/s SANKHLA
HDP 333 UV & HDP
HDP POLYMERS PVT. LTD., 5
E 333 UV AT
SILVASSA
Width:28 mm
Nominal
M/s. Rainbow Plastic 3
POLYFILM Thick: 36micron
Nominal 43 129
3PLY POLYESTER RIP M/s. Sunrise spin tex 3000 DN Wax Coated 4
CORD ( SUNRIES)
LOW Shrink Binder M/s. Sunrise spin tex 1680 DN 4
(1680 D SUNRISE) 28 110
EMBOSSINGTAPE N /A WHITE 2
WOODEN DRUM N /A 1050MM 2 15 30
TABLE 3
The speed of the individual machine in the manufacturing plant of optical fibre cable.
S.No. Machine/Line Make Quantity Average

speed(MPM)
1 Fiber Colouring Heathway 1 Not working
Machine -1
2 Fiber Colouring Technical 1 Not working
Machine -2 development
corporation
3 Fiber Colouring Yupin, ZTT 1 900
Machine -3
4 Secondary Coating Nokia Maillefer 1 150
Line -1
5 Secondary Coating Mossberg Fiber 1 150
Line -2 Optic Cabler Incl.
6 Secondary Coating Techno Park Inc. 1 150
Line -3
7 Secondary Coating Conductix, 1 350
Line -4 Delachaux
8 Stranding Line -1 Frisch, SZ 300 1 50
10 Sheathing and Supermac 1 50
Jecketing Line -1
11 Pe Sheathing Line - Nokia Maillefer 1 50
2
12 Pe Sheathing Line - S.C. Meredith & 1 50
3 Son(Engineers) Ltd.
13 Sheathing and Joyoti Engineering 1 50
Jecketing Line -4
TABLE 4

The speed at which machines should operate:-
S.No. Machine/Line Make Quantity Average

speed(MPM)
1 Fiber Colouring Heathway 1 700
Machine -1
2 Fiber Colouring Technical 1 1000
Machine -2 development
corporation
3 Fiber Colouring Yupin, ZTT 1 1200
Machine -3
4 Secondary Coating Nokia Maillefer 1 150
Line -1
5 Secondary Coating Mossberg Fiber 1 150
Line -2 Optic Cabler Incl.
6 Secondary Coating Techno Park Inc. 1 150
Line -3
7 Secondary Coating Conductix, 1 350
Line -4 Delachaux
10 Sheathing and Supermac 1 50
Jecketing Line -1
11 Pe Sheathing Line - Nokia Maillefer 1 50
2
12 Pe Sheathing Line - S.C. Meredith & 1 50
3 Son(Engineers) Ltd.
13 S & J Line -4 Joyoti Engin 1 50
TABLE 5
There is also a shortage of operators and helpers to run all the machines simultaneously. And
there is also a problem in maintain the external environment. So there is so problems in the
maintenance department.

INTERPRETATIONS AND CONCLUSION
1. The inventory cost is not only interest on stocks but also cost of store building for
storage, insurance and obsolesce and movement of inputs from place of storage to the
factory where the materials have to be finally used to convert them into finished
goods.
2. Raw materials and packing materials is very high and many items become junk or
obsolete causing heavy loss to the enterprise
3. There is a lack of planning department. Planning is not proper in the manufacturing

plant. It also decreases the efficiency of manufacturing plant.
4. Man-power in the company is not sufficient. There are only four operators for running
all the machines in the manufacturing plant. It is not possible to run all the machines
simultaneously with all the man-power available at a time.
5. Toolbox of the machines are not properly managed. Some tools are missing when it is
required. Then the labours find it and then use it. It increases the lead time of
manufacturing of the cable.

RECOMMENDATIONS
1. Efforts should be made to minimize the stock of inputs and outputs by proper
planning and forecasting of demand of various inputs and producing only that much
quantity which can be sold in the market.
2. In japan industries have adopted concept of JIT (Just in Time) and components,
materials are received when required for which detailed instructions are given to
suppliers
3. In case of raw materials the first requirement is to study lead time between the date of
order and receipt in the factory
4. Efforts should be made to place orders at the right time with the right source to
purchase the right quantity at the right price and quality.
5. Effective management should:
Maintain sufficient stock of raw material in the period of short supply and
anticipate price changes.
Ensure a continuous supply of material to production department facilitating
uninterrupted production.
Minimize the carrying cost and time.
Maintain sufficient stock of finished goods for smooth sales operations.
Ensure that materials are available for use in production and production
services as and when required.
Ensure that finished goods are available for delivery to customers to fulfil
orders, smooth sales operation and efficient customer service.
Minimize investment in inventories and minimize the carrying cost and time.
Protect the inventory against deterioration, obsolescence and unauthorized use.
Maintain sufficient stock of raw material in period of short supply and
anticipate price changes.
Control investment in inventories and keep it at an optimum level.

LIMITATIONS OF THE STUDY
1. The data availability is proprietary and not readily shared for dissemination.
2. The staff although is very helpful but are not able to give much of their time due to
their own job constraints.
3. The study is not very exhaustive and many concepts could not be covered as they are
not approachable.
4. The data is used in the study is secondary which can lead to some kind of
discrepancy, anomaly or biasness in the study.
5. The study is being done keeping in mind the policies of the whole firm and Head
Office.
6. Due to the on-going process of globalization and increasing competition, no one

model or method will suffice over a long period of time and constant up gradation will
be required.

BIBLIOGRAPHY
1. http://en.wikipedia.org/wiki/Optical_fiber_cable
2. http://en.wikipedia.org/wiki/Optical_fiber
3. http://www.webopedia.com/TERM/F/fiber_optics.html
4. http://www.thefoa.org/tech/fibr-mfg.htm
5. http://www.madehow.com/Volume-1/Optical-Fiber.html
6. http://www.thefoa.org/tech/ref/basic/test.html 7.
http://teracom.in/index.php/teracom-in-power
8. http://teracom.in/index.php/telecom
9. http://www.doc.ic.ac.uk/~nd/surprise_97/journal/vol4/sm27/adv.html
10. http://bboxblog.wordpress.com/2011/12/08/8-advantages-to-choosing-fiber-over-
copper-cable/
11. http://services.eng.uts.edu.au/~akadi/ite/major_assignments/barber/advdisad.htm
12. http://en.wikipedia.org/wiki/Optical_fiber_connector

Chetan Guleria - DR Senthil Kumar

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ESTABLISHMENT OF OPTIMUM ORDER QUANTITIES

FOR VARIOUS RAW MATERIALS

SIP PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

By: Chetan Guleria

Supervisors: 1. Mr Binod Kumar Bhutra

INSTITUTE OF MANAGEMENT TECHNOLOGY

"Establishment of optimum order quantities for various raw materials"

At Teracom Ltd., Goa

Project Time: 14th April - 7th June, 2014

Roll No. - 2013082

11th July, 2014

Summer Internship Project - Teracom Ltd. Page |2

A summer project is a golden opportunity for learning and self-development. I consider

Summer Internship Project - Teracom Ltd. Page |3

Objective of the study 8

Brief description of the concepts 9

Tabulation and findings 26

Interpretations and conclusion 35

Limitations of the study 37

Summer Internship Project - Teracom Ltd. Page |5

The major competitors of Teracom are:

Summer Internship Project - Teracom Ltd. Page |6

Summer Internship Project - Teracom Ltd. Page |7

The objectives can be summarised as:

1. To minimize the possibility of disruption in the production schedule of a firm

2. To keep down capital investment in inventories.

Summer Internship Project - Teracom Ltd. Page |8

The concepts used in this study are:

Summer Internship Project - Teracom Ltd. Page |9

Summer Internship Project - Teracom Ltd. P a g e | 10

a. Fibre Optics is the communications medium that works by sending optical

Fig 1 (Optical fiber structure)

Summer Internship Project - Teracom Ltd. P a g e | 11

o Single mode optical fiber

Single mode optical fiber: A single-mode optical fiber (SMF) is an optical

Fig 2 (Different types of multimode and single mode optical fiber)

Summer Internship Project - Teracom Ltd. P a g e | 12

3. PBTB (Polybutylene Tereaphytalate):

It is act as the secondary coating of the fiber.

Fast crystallization, easy to mold.

Summer Internship Project - Teracom Ltd. P a g e | 13

4. HDPE (High Density Polyethene):

Fig 3 (HDPE coating on the optical fiber)

- It should be smooth and even.

Summer Internship Project - Teracom Ltd. P a g e | 14

It is generally used for providing strength to the optical fiber cable.

It is made up of electrically insulated non-alkaline glass.

Fig 4 (FRP rods used in manufacturing of optical fiber cable)

It is coated with Ethylene Arcylic acid.

Rod should have smooth and even surface.

6. Filling compound (Jelly):

led in the loose tube during the buffering process.

Summer Internship Project - Teracom Ltd. P a g e | 15

7. Flooding Compound (Jelly):

It is used for interspatial flooding and water blocking.

Summer Internship Project - Teracom Ltd. P a g e | 16

1. Properties: Should be a multi flament nylon yarn.

10. Water Blocking Tape:

Should fill up spaces in cable to stop water immersion.

11. Metal/Steel Tape:

Summer Internship Project - Teracom Ltd. P a g e | 17

damaging other delicate substances.

Flat version available