Professional Documents
Culture Documents
Cost Reduction and Control": A Project Report ON
Cost Reduction and Control": A Project Report ON
PROJECT REPORT
ON
2018-2019
1
BHUPAL NOBELS’ UNIVERSITY, UDAIPUR
PREFACE
It is very easy to give solution to the problem while sitting in an office but
difficulties arise when they are practically implemented in the market training thus
aims at giving the student a practical exposure of the highest level and the student
in acquiring the same.
The project aims at making the student aware of the market condition and
how the functional parts work in the organization. Training is an integral part of
B.B.A. and every student has to undergo the training for 45 days in company and
then prepare a project report on the same after the completion of the training.
During the whole training, we get lot of experience and come to know about
that real business differs from the theory and learnt many new things, practically. I
undertook the project on "COST REDUCTION AND CONTROL" at Pyrotech
Electronics Pvt Ltd.
2
ACKNOWLEDGEMENT
The successful completion of any project requires guideline and help
from a number people. I therefore, take this opportunity to express my
profound sense of gratitude to all those who extend their wholehearted help
and support to me carrying out the project work.
At the onset, I would like to thank Pyrotech Electronics Pvt. Ltd for
giving me the approval to this project in the such a prestigious and professional
organization and also for their immense contribution towards execution and
completion of this project, I am grateful to Ms. Surabhi Soni (Executive-
FINANCE & TRAINING) Pyrotech Electronics Pvt. Ltd. for the moral
support, encouragement and generous assistance.
VAISHALI KHURANA
2. COMPANY PROFILE 15
4
SOURCES OF INFORMATION 31
LIMITATION OF THE STUDY 32
5. PRODUCTION PLANNING & CONTROL 33
6. MARKETING FUNCTION 45
7. BUSINESS POLICY 69
INTRODUCTION
CHAPTER: 1
5
INDUSTRY PROFILE
> INDUSTRY VEIW
> OVERVIEW OF PYROTECH ELECTRONICS PVT.
LTD.
> MILESTONES
INDUSTRY VEIW
Pyrotech
Electronics Pvt.
Ltd. Unit II
Pyrotech Tempsens
ISO - 9001 : Pyrotech
Electronics Instrument India
2008 Marketing
Pvt. Ltd. Unit I Pvt. Ltd.
EMS 14001 : & Projects
ISO 9001:2000 ISO 9001:2000
2004 Pvt. Ltd.
(Electricals & (Temprature
OHSAS : 18001 : (Marketing)
Electronics) Sensors)
2007
(Control &
Instrumentation)
7
Annuniciator Bar Services,
Thermocouple
Graphindicator Industrial Marketing
Resistance
Transducer Automation PLC
Thermometers(RTD's)
Scanner Projects
www.pyrotechindia.comwww.peplelectronics.com www.tempsensindia
8
elimination of all customs duties on IT hardware by 2005. In the subsequent
years, a number of companies turned sick and had to be closed down. At the
same time companies like Moser Baer, Samtel Colour, Celetronix etc. have
made a mark globally.
Current Scenario
In recent years the electronic industry is growing at a brisk pace. It is
currently worth $10 Billion but according to estimates, has the potential to
reach $ 60 billion by 2018. The largest segment is the consumer electronics
segment. While is largest export segment is of components.
In the journey of over 2 decades & more, we have expanded to match
global vision & progressed steadilythrough up gradation of technology,
quality and skills. Today, we are one of the India's leading manufacturers
of automation & control equipment.
Pyrotech has an exceptional multi-disciplinary array of products -
Panels, Enclosures, LVS, LIR/LIE, Computer Consoles, Electronic products
and Office-Industrial furniture. To reap advantages of Global Integrated
Chain, we collaborated with companies like Synelec (LVS), Subklew (Mosaic
Tile System), & Weigel Meters (Meters). In every true sense of the word, we
have become, “The Control Room Solutions Provider.”
Approved by major consultants and working with large OEMs, we
are in position to cater to the needs of a Varity of industries, ranging from
Power to Petrochemicals, Metering to Railways, Material Handling to
Process Control, Cement to Defense and many more.
Vision for Tomorrow Our work is focused on creating and
continuously improving a sensitive organization capable of reacting promptly
to market requirements and customer’s need. We will continue to earn
customer's trust with highest quality of services.
WE RESEARCH, PLAN, DESIGN AND INVEST FOR FUTURE.
9
MILESTONES
11
2011 Compact sub station as a new product line has been introduced in
product category which can be used as airports, malls, major
industries, complexes and remote locations.
2012-13 HT kiosk (indoor & outdoor) upto 11 KV/shelters, streetlights, &
CCTV mounting poles has been added in product portfolio which
tooks high growth in 1st year of there launch. Installation
of a new lean manufacturing unit of CNC machined and nano
technologies process by HENKEL (Germany) & powder coating
plant (Huali,china).
2017-18 It has taken a step towards contributing in make in India Mission
Honourable Prime Minister Shree Narendra Modi by Making
India First LED lid-DLP video wall.
12
good training, technical knowledge and experience for their assigned
functions.
Our team work has resulted in successful development of the products,
the system, the approach, the services and above all, the confidence of our
customers.
TECHNOLOGY
1. ALCOSY
2. FECOSY
13
CHAPTER-2
COMPANY INTRODUCTION
15
• 1986-Landmark year as BHEL Bangalore started using
ALCOSY technology. Large orders executed for IL Bokaro
steel power plant for marshalling panels.
• 1990- HZL Chanderia instrumentation work commenced and
completed in November 1991.
• 1991- High performances 19” racks developed for defense,
supplies to army for missile launch. National excellence awards
in CL & IE, R&D ELCINA award.
• 1993-Major power projects executed fro PSEB Bhatinda;
Panipat with Swiss Mosaic tiles. LSE supplies for NTPC,
Korba.
• 1996- Tie-up with Siemens AG for PAI series of products, Dr.
Thiedig for SWAS, Synelec France for video wall. Unit-1&2
attains the ISO 9001 Statys abd Tempsens accredited with ISO
9002. Honored with Rajiv Gandhi National Quality Award.
• 1999-Executed orders for submarine program for navy, new
concepts for Indian market of control room design.
• 2000 –Major projects executed for mega power house. NTPC,
Simhadari, UPSEBM, and BSES, etc. Now designs develop in
consoles and Fecosy panels.
• 2001- Tie-up with AMS, Germany for oxygen and Zirconium
analyzers. New area offices at Hyderabad, Tricky, Kota,
Haridwar. Indiginous technology for active mosaic tiles
developed for Delhi metro rail Corporation.
• 2003- Unit-2 attains ISO 9001:2000 industrial furniture range
introduced with major approvals from NTPC, BHEL AND Tisco.
• 2005 – Unit-2 attains ISO 9001-2000 from DNV Netherland,
Total turnkey control room solution for 1000 MW Jindal super
Thermal Power plant. Area – 10000 sq. ft..
• Aquila and Vectra CNC machines introduced.
• Expansion of conveyorised plan proposed ISO 14000:2004
(EMS).
16
VISION OF TOMORROW:
“Our work is focused on creating and constantly improving an
organization capable of reacting promptly to market requirement and
customer need. We will continue to earn customer’s trust with highest
quality of services.”
Creating a vision is nothing but aligning the minds of all the individuals
that make up an organization in a particular direction so that their
cumulative energies lend a special energy to the organization as a
whole, rather than these energies getting dissipated by their random and
often conflicting application.
To achieve global dominance in control room solutions through
continuous product and technical innovation, customer oriented and a
focus on cost effectiveness.
A world class company which stresses (focus) on customer delight by
constantly exceeding their expectation in terms of quality, service,
value and safety.
Pyrotech, a customer oriented company emphasizes on customer
satisfaction by keeping balance between cost efficiency and
productivity. Quality, safety and environmental preservation are the
base line for their value added production activity.
At Pyrotech, strategic alliances are build with world leaders, to provide
unparalleled products and services, in the shape of innovative, control
room solutions to the global market place. Universal values will inspire
a humane and vibrant work environment where all will strive constantly
to improve the level of customer care along with the quality, service and
value for money and safety.
Pyrotech maintains a future vision that will make the company, partners
in customer’s success.
MISSION:
Today the company is well positioned to respond to the unique and
changing needs of the market place, and to tailor products to new and
17
specific requirements. And through a commitment to continuous
improvement in performance and reliability, as well as research into
new technologies.
18
To establish nationwide marketing base with establishment in major
metropolitan cities and dealer network in other cities.
Increasing production base by induction and training of professional
manpower and adopting state of art technology for manufacturing.
Important of sophisticated electronic instruments while offering
commissioning support and sales services.
Manufacturing micro processor/micro controller base instruments with
foreign tie-up and export market.
ORGANIZATIONAL POLICY:
The organization policy is to manufacture defect free panels, control
desks, process control system, and industrial enclosures to provide
value for money and customer satisfaction. The organization wants to
create zero defect working cut by continually improving quality
technology and skills.
ACHIEVEMENTS:
The company’s objectives have been achieved by producing high
quality goods, which satisfies customer’s needs. The goods have been
successfully field-tested and production used and are highly reliable,
accurate and intrinsically safe. The research and development unit,
which is recognized by the department of science and technology,
government of India has contributed a lot towards the development of
products and ultimately the achievement of company’s objectives. The
company is committed to employ expert personnel, provide quality
products to the customer nationwide and maintain its reputation for
future prospect. Its future is bright.
1. November 1993-Department of electronics was awarded
“EXCELLENCE IN ELECTRONICS”
19
• The company has received the R & D
August, 93
• The company has also been awarded ELCINA [llnd prize] for R &
D in September`94.
DEPARTMENTS OF PYROTECH
Following are the strong hands of us:-
1. Marketing
2. Commercial
3. Stores
4. Design
5. CNC
6. Fabrication
7. Painting
8. Internal Tubing
9. Wiring
10. Quality assurance
11. Packing
12. Dispatch
13. Finance
14. Personnel and HRD
PRODUCT RANGE
1. Control Panel
20
2. Processor Panel
3. Electronic Panel
4. Instrument Panel
5. Mosaic mimics Panel
6. Junction Box
7. Calibration Box
8. Purge Panel
9. Analyzer Panel
10. Pneumic Panel
11. LIE &LIR
12. Large Video Screens
13. Control room design
14. Test Bench
15. 19” Rack Enclosures
16. Swas Panel
17. Computer consoles and CRT Desks
18. Centralized control desks
19. Relay Pane &Gas analyzer /shelter
21
CHAPTER-3
CONCEPTUAL FRAMEWORK:
22
Cost reduction & control according to various authors;-
“Mead, Mellot and Field”: focus on the control of cost & reduction of
product in business.
“J.S.Mill”: Cost Control is a technique which provides the
necessary information to the management that actual costs are
aligned with the budgeted costs or not
“G.W.Grestenberg”: “Cost control is the practice of identifying and
reducing business expenses to increase profits and it starts with the
budgeting process. A business owner compares actual results with the
budgeted expectations and if actual costs are higher than
planned, management takes action.”
23
CONCEPT OF COST REDUCTION & CONTROL:
Cost reduction is a planned positive approach to reduce expenditure.
It is a corrective function by continuous process of analysis of costs,
functions, etc. for further economy in application of factors of
production.
24
1.Automation
Doing things automatically with information technology,
machines androbots.
2.Productivity
Improving the productivity of workers. For example, a decision
supporttool may allow workers to make better decisions faster.
3.Efficiency
Improving the efficiency of equipment and processes. For
example, replacing a slow computer with a faster model that
uses less power.
4.Outsourcing
Focusing on your core competencies and outsourcing things in
areas where you aren't particular productive. For example, a small
businessthat manufacturers bicycles may outsource tax preparation
to an accounting firm.
5.Waste
Removing waste in processes such as unnecessary transportation,
inventory, activities or waiting. For example, a restaurant that
makes its own bread doesn't need to overstock bread or drive
across town to a bakery to pick up fresh bread each morning.
6.Quality Control
Identifying quality problems as early as possible to reduce the cost
of poor quality. For example, identifying a quality problem on
theproduction line is cheaper than shipping it all the way to the
customer and having them complain and ship it back to you.
7.Reliability
Improving the reliability of systems, equipment and processes. For
example, a system crash can cause a great deal of waste as workers
wait for the system to come back up or implement time-
consumingworkarounds.
25
SOURCES OF COST REDUCTION
Potential Sources of Future Wind Energy Cost Reductions:-
RESEARCH METHODOLOGY
29
RESEARCH METHODOLOGY
Duration Of Study:
Project was accomplished within 45 days of its
commencement
• OBJECTIVES OF RESEARCH:
Every research inquiry has certain well define objective for tracking on right
path and right direction. Objectives provide useful guidance for programming
and its evaluation. Thus, in the absence of clear cut objectives the study can’t
take right direction.
Therefore the study under taken deals with the following objectives:-
1. To know the efficiency with which the working capital is being utilized.
2. To analyze the position of the company through working capital ratios.
3. To find out the operating cycle.To make some recommendations.
• DATA COLLECTION
The most important and essential thing of a research is data. Inaccurate data
may spoil our objective. There are several ways of collecting appropriate data
which differ considerably in the context of money, cost, time and other
resources at the disposal of the researcher.
There are two types of data via:
Primary data
Secondary data
30
1 Primary data: These can be collected either through experiment or through
survey. These data are collected afresh and for the first time, and thus happen
to be original in character.
2 Secondary data: These data have already been collected by someone else
which has already been passed through the statistical process.
I have used secondary data in this research. With The help of company’s
annual reports and other data,this research has done.
SOURCES OF INFORMATION
• Reference books and journals related with working capital and financial
statement analysis.
31
2. Comparison is not possible if different company adopts different
accounting policies.
3. It becomes less effective due to continuous changes in price
level.
4. A single ratio will not be able to convey much information.
5. Result may be misleading in the absence of absolute data.
6. It ignores qualitative factors, as ratios are tools of quantitative
analysis only.
7. It is difficult to forecast future, as it is mainly based on past
trends and financial data.
8. The research work relied on certain data andthe information provided
by the unit.
CHAPTER-5
32
PRODUCTION PLANNING &
CONTROL
INTRODUCTION
The whole process should be carried out in a best possible way and
at the lowest cost. Production Manager will have to see that the
things proceed as per the plans. This is a control function and has
to be carried as meticulously as planning. Both planning and
control of production are necessary to produce better goods at
reasonable prices and in a most systematic manner.
Goldon B. Carson:
33
“Production planning and control involves generally the
organization and planning of the manufacturing process.
Specifically, it consists of the planning of the routing, scheduling,
dispatching and inspection, co-ordination and the control of
materials, methods, machines, tooling and operating times. The
ultimate objective is the organization of the supply and movement
of materials and labour, machine utilization and related activities,
in order to bring about the desired manufacturing results in terms
of quantity, time and place.”
Charles A. Koepke:
“Production planning and control is the coordination of a series of
functions according to a plan which will economically utilize the
plant facilities and regulate the orderly movement of goods through
the entire manufacturing cycle, from the procurement of all
materials to the shipping of finished goods at a predetermined
rate”.
34
1. It is the planning and control of manufacturing process in an
enterprise. The questions like—What is to be manufactured?
When it is to be manufactured? How to keep the schedule of
production etc.? —are decided and acted upon for getting good
results.
35
The following details will bring out the objectives of production
planning and production control:
Production Planning:
1. To determine the requirements for men, materials and
equipment.
Production Control:
1. Making efforts to adhere to the production schedules.
36
4. To ensure that various inputs are made available in right
quantity and at proper time.
37
MARKETING FUNCTION
1. Economies of scale:
Economies of scale are obtained as a result of manufacturing
additional products with the same or only slightly higher fixed costs,
so that, in practice, for every additional product produced, the unit
cost reduces. This is a slight oversimplification of the situation as,
for example, installation of new plant might in the short term
increase unit costs during the period when the plant is running at
below its economic capacity. Whilst in domestic markets, the
benefits from economies of scale follow directly, in international
markets, these economies must more than off-set savings achieved
by having local plants, which result in reduced transport costs and
the avoidance of import tariffs.
40
CHAPTER-7
BUSINESS POLICY
1. Implement Telecommuting
Allowing your employees to telecommute rather than work in the
office or on-premises can cut back business spending in a variety
of ways. Telecommuting may allow you to cut the lease or rent
payment you make each month because you require a smaller
space to operate the business when some or most of your
employees telecommute to work. With fewer employees in the
office, this can also cut back your spending on utilities, such as
electricity and water.
2. Alter Workweek
Switching full-time workers to part-time status reduces your
payroll expenses. Closing the office one or two additional days a
week can also cut back on the wages you pay employees, as well as
operational costs, such as electric and water. After the downturn in
the economy that began in 2007, many U.S. companies went to a
four-day workweek to cut back on expenses without having to lay
off employees or close the business altogether.
3. Reduce Salaries
If you are one of the owners of the business, you and any
additional owners may also consider taking a reduced salary.
Reducing your salary allows you to cut back on business expenses.
Money that once went to paying your salary can cover other costs
or go into a savings account to cover future business expenses.
41
CHAPTER-8
RECOMMENDATION AND
CONCLUSIONS
43
major constitute of current assets are inventory while cash
/bank acquire a nominal amount.
7. Current ratio varies between 2 to 3 during 5 years .This shows
better liquidity position of the company as compared to
theoretical standard.
8. The receivable turnover ratio was of fluctuating nature .This
shows that the company has no fixed credit policy.
9. Average collection period shows the liberal collection policy
of the company and more funds being locked up in debtors
which needs to be improved.
10. Since raw material, work in progress & finished goods
are taking more time to be converted into sales .Therefore the
working capital requirement will also be more.
11. Company has increased its finished goods holding period
due to a conscious policy decision to avoid stock out situation
and carry more finished goods inventory to expand sales.
44
CHAPTER-9
APPENDIX
45
Following is a list of notable staff reductions taken across the non-academic units. Please note that
this list is demonstrative and not comprehensive: Enrollment Management eliminated two full-time
positions in Marketing as well as a position in• the Registrar’s Office the President’s Office eliminated two
Public Safety Officer positions• Technology Services eliminated three service desk positions as well as
additional positions in• hardware and applications Facilities eliminated overtime in Custodial Services and
significantly reduced overtime across the• board for other areas Student Affairs eliminated a learning
specialist position in Disability Support Services, two• positions in residence life, and one position in
housing. University Advancement eliminated two Advancement Services specialist positions and delayed•
the hiring of several senior positions crucial to the future success of the Capital Campaign Significant
reductions have been made to non-salary related expenditures as well. Enrollment Management has been
forced to reduce digital print advertising, travel, and to produce fewer printed materials for prospective
students. University Advancement has restricted travel and entertainment budgets which impact donor
relations. Student Affairs eliminated Family Weekend, reduced dining hours and operations, and reduced
support for Orientation, Residence Life programming, and Athletics. Facilities and Technology services
have reduced equipment, supplies, and services budgets which impacts the level of support which they can
provide the campus community. Since a significant focus of cost reduction efforts has been to non-salary
related expenses, it is important to examine the overall impact of these efforts across the university.
Expenses in the related categories of materials and supplies, travel, and other expenses were reduced by
5.1% (from $23.2M to $22.0M) between FY2016 and FY2017. Expenses in these categories are projected to
reduce by 18.6% (from $22.0M to $17.9M) by the end of FY2018. The following graph depicts this change.
46
47
CHAPTER-10
48
BIBLIOGRAPHY
To obtain more information regarding the present study and to substantiate it with theoretical proof,the
following references were made:
49
50