Bosch Inventory Management

A Project Report on
“A STUDY ON INVENTORY MANAGEMENT AT BOSCH”
BY
DILEEP KUMAR S
1NH15MBA47
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI,
BANGALORE
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE

Dr. A.R. SAINATH Mr. PRASANNA G
PROFESSOR MANAGER,BOSCH
BANGALORE
2015-2017
CERTIFICATE
This is to certify that DILEEP KUMAR S bearing USN 1NH15MBA47, is a Bonafide

student of Master of Business Administration course of the Institute 2015-2017,
Autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. Project
report on “A STUDY ON INVENTORY MANAGEMENT AT BOSCH” is prepared by
her under the guidance of Dr. A.R. SAINATH, in partial fulfilment of requirements for the
award of the degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum Karnataka.
Signature of Internal Guide Signature of HOD Signature of Principal

DECLARATION
I, DILEEP KUMAR S, hereby declare that the project report entitled “A STUDY ON
INVENTORY MANAGEMENT AT BOSCH” prepared by me under the guidance of Dr.
A.R. SAINATH faculty of M.B.A Department, New Horizon College of Engineering and
external assistance by Mr. PRASANNA G, MANAGER AT BOSCH.
I also declare that this project work is towards the partial fulfilment of the university
regulations for the award of the degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of sixteen weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted for the
award of a degree/diploma from any other University / Institution.
Signature of Student
Place:
Date:
ACKNOWLEDGEMENT
I express my deep sense of gratitude to chairman DR. MOHAN MANGHNANI and

Principal DR. MANJUNATHA, New Horizon College Of Engineering, for giving the
oppourtunity of being the part of this institution and for generous help to complete
the project.
I am extremely thankful and pay my gratitude to head of the department DR. SHEELAN
MISRA for her valuable guidance and support on completion of this project.
I express my special thanks to my internal guide PROF. DR. A. R. SAINATH, faculty

member for his valuable guidance, support, motivation and inspirations at every stage
throughout the period of my project work.
I would like to thank Mr. PRASANNA G and the Management staff of the BOSCH
LTD , Bangalore for giving me opportunity to conduct a study and to be associated
with the company.
Finally, I wish to thank my parents, Friends and to all who helped me in the
successful completion of this project.
Date:
Place:
TABLE OF CONTENT
CHAPTER PARTICULAR PAGE NO.
CHAPTER 1 INTRODUCTION 1-7
CHAPTER 2 INDUSTRY & COMPANY PROFILE 8-25
CHAPTER 3 THEORETICAL BACKGROUND OF THE STUDY 26-32
CHAPTER 4 DATA ANALYSIS & INTERPRETATION 33-52
CHAPTER 5 FINDINGS , SUGGESTION & CONCLUSION 53-55
BIBLIOGRAPHY 56
LIST OF TABLES
TABLE PARTICULARS PAGE NO

NO
4.1 TABLE SHOWING THE SIZE OF INVENTORY IN TOTAL 33

CURRENT ASSET
4.2 35
TABLE SHOWING INVENTORY GROWTH AT BOSCH
4.3 37
TABLE SHOWING RAW MATERIAL INVENTORY TURNOVER
RATIO
4.4 39
TABLE SHOWING FINISHED GOODS TURNOVER RATIO
4.5 41
WORK IN PROGRESS INVENTORY TURNOVER RATIO
4.6 43
TABLE SHOWING THE INVENTORY TURNOVER RATIO
4.7 45
TABLE SHOWING INVENTORY CONVERSION PERIOD
4.8 48
TABLE SHOWING THE PERCENTAGE OF COMPONENTS OF
INVENTORY
LIST OF GRAPHS
PARTICULARS PAGE NO
GRAPH
NO.
4.1 34
GRAPH SHOWING THE PERCENTAGE OF INVENTORY
IN TOTAL CURRENT ASSET
4.2 36
GRAPH SHOWING INVENTORY GROWTH AT BOSCH
4.3 38
GRAPH SHOWING THE RAW MATERIAL TURNOVER
RATIO
4.4
GRAPH SHOWING FINISHED GOODS TURNOVER
40
RATIO
4.5 42
GRAPH SHOWING WORK IN PROGRESS RATIO
4.6 44
GRAPH SHOWING THE INVENTORY TURNOVER
RATIO
4.7 46
GRAPH SHOWING INVENTORY CONVERSION
PERIOD
4.8.1 49
GRAPH SHOWING PERCENTAGE OF TOTAL
INVENTORY FROM 2012-2013
50
4.8.2
INVENTORY FROM 2013- 2014
4.8.3 51
4.8.4 52
EXECUTIVE SUMMARY
In the modern times, business men have shown growing responsiveness of the requirement
for precession in the field of inventory control.
Previously, inventories were an indication of wealth, even though inventories are kept in
liquidity has directed business man to hold cash and securities. There had been a solid
tendency towards holding the means of purchase goods rather than the goods themselves.
An exploratory study was adopted to achieve the objectives of the study, and the study was
conducted in BOSCH Ltd., Bangalore on “INVENTORY MANAGEMENT”. The general
objective of the study was to analysis the inventory level in BOSCH Ltd. However the study
was conducted with the following specific objectives:
 To apprehend the concept of stock management as a primary approach for a

production organisation.
 To analyse various inventory models and its application in BOSCH Ltd.
 To have a look at the mode of inventory management techniques.
 To suggest appropriate measures for the efficient inventory management.
The major limitation of the study was the paucity of time. Even then, maximum care has been
taken to arrive at appropriate conclusion. The method adopted for collection of data was
personal interview with managers. It was also sourced from the secondary data. After
collecting data from the respective sources, analysis and interpretation of data has been made.
Based on the findings, logical conclusions are drawn and future suitable suggestions and
recommendations are bought out. The entire project is presented in the form of a report using
chapter scheme in a logical sequence from introduction to annexure and bibliography.
CHAPTER-1
INTRODUCTION
In the modern times business men have shown growing responsiveness of the requirement for
precession in the field of inventory control.
Previously, inventories were an indication of wealth; even though inventories are kept in
liquidity has directed business man to hold cash and securities. There had been a solid
tendency towards holding the means of purchase goods rather than the goods themselves.
Inventories are often referred to as “graveyard” as surplus stock has been principle cause of
business failure. In business cycle is influenced in inventories which are also considered as
destabilizing, in fact there is instability and collapse which have been the focal point. As a
result almost pathological fear of increasing inventories has developed by business men
OVERVIEW
A study on inventory management of BOSCH is under taken to know how inventories are
managed by the company and various techniques which are used by the company in
managing the inventory effectively. To evaluate the performance of inventory many
techniques and inventory ratios are used. By the study an attempt has been made to come to a
conclusion with the help of experience derived by the company and also with the help of
theoretical knowledge.
STATEMENT OF PROBLEM
Inventory management in manufacturing companies needs inventory for smooth running of

production activities. Inadequate inventory management will lead to stoppage of production
and huge losses. A large amount of inventory will be kept idle. Since, funds has the cost, the
company has to pay huge amount of interest. On the other hand inadequate inventory will
affect the smooth running of production, which results in loss of sales due to not meeting the
customer needs in time. Hence a study is required to analyse and understand the main
problem is to evaluation and maintain the optimal level of inventory.
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OBJECTIVE OF THE STUDY
 To understand the concept of inventory management as a major technique for a

manufacturing company
 To study the mode of inventory management techniques.
 To analyse various inventory models and its application in Bosch Ltd.
 To suggest suitable measures for the efficient inventory management.
SCOPE OF THE STUDY
 Present practices being followed at BOSCH.

 The study has been done for three years.
 The study attempts to find out the consumption materials in the production process.
LITERATURE REVIEW
1. Samir K. Srivastava, 2007:- Has emphasised on the Green Supply Management

which is not sufficiently technologically advanced several mathematical tools and
techniques are used to satisfy social and environmental concerns to enable progression
of business and economy also suffer from its nonappearance.
2. Douglas J. Thomas, Paul M. Griffin 2007:-Has highlighted the three phases in supply
chain, obtaining, manufacture and delivery that need to be maintained independently.
Growing in the competitive pressures and market globalization companies emphases on
developing supply chains that can satisfy the consumer requirements quickly.
3. Angappa Gunasekaran, Bulent Kobu 2005:-Made an attempt to study the
performance measures and metrics are vital for successfully handling logistics
processes predominantly in a competitive inclusive economy. The actual challenge for
mangers of any organisation is to improve performance measures and metrics to make
decision that pay in towards organisational progression.
4. M.T Melo, S. Nickel , 1999:- considers Facility location acts as a vital part in the
strategic decision of supply chain networks. Application of facility location models to
supply chain network. Models are applied in the framework of supply chain
management that assistances in decision- making in strategic supply chain management.
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5. Ana Maria Sarmiento, Rakesh Nagi:- Talks about the integrated analysis related to
distribution production-distribution system. Decision related to distribution and
production that has to be taken appropriately for a simultaneous optimization.
6. Brent D. Williams, Travis Tokar, 2008:- provides a assessment on inventory
management articles printed in most important logistics channels, recognize themes
from the literature and make available upcoming direction for inventory management.
7. Imtiaz Ahmeed, Ineen Sultana, 2014:-speaks about inventory are the material which
is stored or in the processing stage. Inventory kept idle can be loss or profit to any
business concern. Incurring cost subjected to spoilage and obsolescence can increase
the cost so every business concern aimed at reducing inventory levels which increases
the efficiency.
8. Michael J. Maloni, W.C. Benton:- provides about journal of supply chain exploration
approach from both the qualitative conceptual and analytical operations research.
9. Mahmut Parla:- This associated to inventory difficulties with random demand and
also supply may be interrupted due to machine breakdowns, strikes and other occurring
events.
10. Jeffrey I. McGill, 1999:- it tells about the yield management this is focus on the
forecasting, overbooking, seat inventory control, and pricing.
11. Steven Nahmias 1982:-Speaks about Problem linked to the both immovable life and
perishable inventory, inventory subject to continuous exponential decline with
considering both deterministic and stochastic demand for single and several products.
12. Neely, Andy, Gregory, Mike, Platts, and Ken, 1995:- This represents the aims and
focus on the significance of performance measurement. Design/methodology/approach
that focuses on the process of performance measurement system design.
13. Timotly L. Urban: - gives information about product assortment and self-space
allocation problems. Inventory has to be allocated and self-spaced to avoid loss.
14. Suresh K. Goyal, Yash P. Gupta:-Dealing with the combined inventory models
(buyer-vendor coordination) has revised organization to classify these models is
presented.
15. Jinxiang GU, Marc Goestschalckx, Leon F. McGinnis 2006:- problems related to
ware house operation planning problems like receiving, storing, order picking and
shipping and also bridge gap between academic researcher and warehouse practitioners,
explaining about planning models and methods that are presently available for
warehouse operation.
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16. Stephen C. Graves, 1981:- It speaks about production scheduling can be defined as
allocating the available production resources to satisfy some set of criteria. This paper
tells about the problems faced in production scheduling.
17. Chi Chiang, Genaro j. Gutierrez:-It says there are dualistic modes of inventory
system specifically regular mode and emergency mode. Order placed in emergency
channel has high ordering cost compared to regular channel.
18. Lawrence Nicholson, Asoo J. Vakharia, and S. Selcuk Erenguc:-Basically
traditionally healthcare systems have paid attention to management of inventories. This
research mainly focuses the issue of managing inventory costs in a healthcare setting.
19. Wen-Chyuan Chiang, Jason C.H. Chen, Xiaojing Xu 2007:- It provides the recent
development of revenue management in different industries that includes management
strategies like pricing, auctions, capacity control, overbooking and forecasting.
20. Craig Shepherd, Hannes Gunter, 2010:-This tells about the critical evaluation of
measurement system designed to evaluate the performance of supply chain.
21. Benita m. Beamon, 1999:-it is very difficult to choose appropriate supply chain
performance measuring is difficult due to complexity. Paper presents an overview and
evaluation of the performance measures used in supply chain models.
22. B. Mahadevan, David F. Pyke, and Moritz Fleischmann: Speaks sustainability has
turned out to be a major issue, causing many companies to focus on product recovery
and reserve logistics. This research mainly focuses on product regaining.
 Green supply-chain management

Name: Samir K. Srivastava
Year: 2007
 Coordinated supply chain management

Name: Douglas J. Thomas, Paul M. Griffin
Year: 2007
Volume: 45
Issue: 12
Journal: international journal production research
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 Performance measures and metrics in logistics and supply chain management
Angappa Gunasekaran, Bulent Kobu
Year: 2005
ISNNO: 10.1080/00207540600806513
 Facility location and supply chain management

Name: M.T Melo, S. Nickel
Year: 1999
Issue: 11
Volume: 31
ISNNO: 1061-1074
 Integrated analysis of production-distribution system

Name: Ana Maria Sarmiento, Rakesh Nagi
 Inventory management research in major logistics journals

Name: Brent D. Williams, Travis Tokar
Year: 2008
 Inventory modelling with reliability consideration

Name: Imtiaz Ahmeed, Ineen Sultana
Year: 2014
 Supply chain partnerships

Name: Michael J. Maloni, W.C. Benton
 Continuous-review inventory problem with random supply interruption

Name: Mahmut Parla
 Revenue management
Name: Jeffrey I. McGill
Year: 1999
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 Perishable inventory theory
Name: Steven Nahmias
Year: 1982
 Performance measurement system design

Name: Neely, Andy, Gregory, Mike, Platts, Ken
Year: 1995
ISNNO: pp.1228-1263(36)
 An inventory-theoretic approach to product assortment and shelf-space

allocation
Name: (Timotly L. Urban)
ISNNO: 10.1016/s0022-4359(99)80086-4
 Integrated inventory models: the buyer vendor coordination

Name: Suresh K. Goyal, Yash P. Gupta.
ISNNO: 10.1016/0377-2217(89)90247-6
 Research on warehouse operation

Name: Jinxiang GU, Marc Goestschalckx, Leon F. McGinnis
Year: 2006
 Production scheduling
Name: Stephen C. Graves
Year: 1981
 A periodic review inventory system with two supply modes

Name: Chi Chiang, Genaro j. Gutierrez
 Outsourcing inventory management decision in healthcare

Name: Lawrence Nicholson, Asoo J. Vakharia, and S. Selcuk Erenguc
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 An over research on revenue management
Name: Wen-Chyuan Chiang, Jason C.H. Chen, Xiaojing Xu, Year: 2007.
 Measuring supply chain performance
Name: Craig Shepherd, Hannes Gunter
Year: 2010

Name: Benita m. Beamon
Year: 1999
 Periodic review, push inventory policies for remanufacturing

Name: B. Mahadevan, David F. Pyke, and Moritz Fleischmann
METHODOLOGY
Facts and figures are the procedure of gathering and computing information on variables of
interest, in a recognized systematic approach that empowers one to response to a particular
research questions and problem, and estimate conclusions. There are two basic types of data
collected;
1) Primary data
2) Secondary data.
PRIMARY DATA
Primary records have been collected through the communication and discussion with
the managers.
SECONDARY DATA
Secondary data was obtained by referring to the documents maintained by the

organization like annual reports, inventory reports internet, and text book.
LIMITATIONS OF STUDY
 The study is confined to only Bosch, Bangalore.

 Research is done on the assumptions that the information obtained is accurate.
 The study is limited to information provided by the organization.
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CHAPTER-2
INDUSTRY PROFILE
In India there are few auto component industries that have distinctive world-wide competition
benefit in terms of cost and quality and it is one of the fastest rising industries. It has grown
26.2% in the last few years this has helped the industries to reach global supplier from local
supplier. In India has led to great aspiration and greater demand for automobiles, which has
boosted the demand for auto component. In addition, various entries of foreign companies
entering in India have led Indian companies to adopt various pioneering marketing
approaches and innovative technology.
Development of and economic growth of the country depends upon the industrialization of
the country. Currently India has become the outsourcing centre for several global automobile
manufacturers.
Before the independence agriculture was the backbone of the country, after independence
India has given more importance to industrialization through 5 years planning programs.
Government has taken many steps to improve the industries in the any country weather big or
small, developed or under developed needs goods, infrastructural facilities such as dams;
roads etc. primary need for the transportation is the infrastructural facilities for the movement
of goods. There is huge development in the technology and science.
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COMPANY PROFILE
BOSCH group is one of the leading global suppliers of technology and services, in the area of
automobile industry, consumer goods, industrial technology and building technologies. Bosch
has been present in India for more than 90 years. In India auto component industry has been
navigated through a period of rapid changes driven by global competition and the recent shift
in focus of global automobile, it is roughly represented in 150 countries. It has worldwide
network and foundation for future growth is manufacturing and sales network.
The company was setup in 15th November 1886 in Stuttgart by Robert Bosch (1861-1942) as
„Workshop or Precision Mechanism and Electrical Engineering‟. The Bosch Group has
guarantees a special ownership structure which is possible for the company to plan for the
long term and to safeguard its future investment. Robert Bosch share capital of 92% is held
by Robert Bosch Stiftung, a charitable foundation. Robert Bosch has majority of voting
rights. The trust carries the ownership tasks and the left over shares are detained by the
Bosch family.
The Bosch slogan „Invented for life‟ is a part of a long tradition, through which it
communicates the group‟s core capabilities and vision, that includes technological, leadership
quality, modern technology and customer orientation.
ABOUT BOSCH LIMITED:
Bosch Limited is the flagship of the Bosch Group subsidiaries in India. Founded in 1951, it
is one of the largest auto-component manufacturer and also one of the largest Indo-German
Company in India.
Bosch has been present in India for more than 90 years. First representative office was in
Calcutta. Company‟s headquarters at Bangalore and has its manufacturing facility at
Bangalore, Nashik, Naganathapura, Jaipur and Goa. These plants are TS 16949 and ISO
14001 certified. Bosch Limited has its existence across industrial technology, consumer
goods, automotive technology and building technology with the e the year 2014mployee‟s
strength of 375000 (2015) world-wide it earned turnover Rs 11,741 crores for It
manufactures and trades products as drivers a diesel and gasoline fuel injection system, auto
Dept. of MBA Page 9

electrical, special purposes machines, packaging machines, electrical power tools and
security system. Currently, Bosch India has a turnover of over $2 billion and 26000
employees spread across 10 locations and 7 application development centres. 84% of Bosch
India revenues come from automotive business and remaining 16% distributed between non-
automotive business that includes packaging, energy and building solutions, power tools and
consumer retail. Company has developed excellent R&D facility which is one of the largest
R&D facilities outside its home market of Germany its testimony to the high quality and
technology of its products.
Bosch India is listed on Indian stock exchanges and market capitalization of over $12 billion.
Bosch has service extents across 1,000 towns and cities with other authorised representatives
who ensure extensive obtainability of both products and services.
Bosch also represented by five other group companies in India: Robert Bosh Engineering and
Business Solutions Pvt Ltd., a 100 per cent subsidiary of Robert Bosch GmbH, Bosch
Rexroth India Ltd., Bosch Chassis system India Ltd., Bosch Automotive Electronics India
Private Ltd., and Bosch Electrical Drives India Private Ltd., a subsidiary of bosch group
based at Oragadam, Chennai.
BACKGROUND AND INSPECTION OF BOSCH:-
 1952:- Establishment of the company as motor industries Company Limited

 1953:- Bangalore first factory workshop was created
 1954:- Manufacture of Spark plug, Single- cylinder diesel fuel injection pumps and
nozzle-holders
 1956:- Industrialist of Multi- cylinder diesel fuel injection pumps
 1972:- Manufacturer of nozzle and nozzle-holders at Nasik Plant
 1974:- Production started at Nasik Plant
 1981:- Production of distinctive purpose machineries and tools
 1986:- maker of VE Distributor pump
 1989:- Manufacturer of hydraulic products, Auto electrical
 1990:- Naganathapura Plant was in inaugurated
 1991:- MICO turn out to be as BOSCH Global Development Centre for single-
cylinder diesel fuel injection pumps
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 MICO represents Bosch for imported automotive aftermarket products,
automotive workshop test equipment and hydraulics and pneumatics
 MICO established purchase office for Bosch
 1992:- ISO 9001 certification for all three plants

 1993:- Producer of Bosch electric power tools
 1994:- Manufacturers of packing machines
 1996:- Launch of Blaupunkt car audio systems
 1997:- QS 9000 Certificate for Bangalore
 1998:- Production of 20-million single cylinder pumps
 1999:- Inauguration of Jaipur plant
 2000:- Inauguration of Mico Application (MAC)
 2001:- Launch of terra-25 packaging machine
 2002:- MICO arrives into communication , security business
 ISO 14001 Certificate for Bangalore Plant
 ISO 9001:2000 certification for industrial equipment, packaging technology
and power tool divisions
 2003:- Introduction of security system
 2004:- Its investment in India of 1,000 corers over the next 4 years
 ISO 1400`:1996 certification for Environmental Management System
 Bosch car service expands to 50 centres
 2005:-Gasoline system business was started at MICO
 2006:- Launch of Bosch brand at Auto Expo 2006
 2007:-Start of the common rail injector manufacturing facility at Nasik
 2008:-Company name changed from Motor Industries Company Limited to BOSCH
Limited
 2009:- setup of its first branch in China
 2011:- BOSCH celebrated 125 years

Awards:-
2011:-
 ‘IT Pride of Karnataka 2011-2012’ – Top performer in the IT’

Robert Bosch Engineering and Business Solution won the „IT pride of Karnataka‟ this
award is recognised for its greater contribution to IT industry
2009:
 April 15, 2009: DHL – CNBC TV18 International Trade Award:’

This award recognises the company‟s commitment and innovation that address the
need of the Indian market. BOSCH is doing extremely well in exports through low-
cost solution.
 Feb. 20, 2009: NDTV Car & Bike Award- ‘Auto component manufacturer of the
year 2009’
Bosch was awarded as the best auto component industry in India in the year 2009.
This award is considered for auto excellence in India for having widely trusted by
customers, manufactures and auto experts.
 Jan.7 2009: UT VI Auto car Award

Bosch won the „Best innovative of the year‟ UTVI auto car award. This award
recognises Bosch innovative start/stop system which contributes fuel efficiency at a
very reasonable cost.
2008:
 June 21, 2008: Business standard Award ‘Star MNC of the year’
Bosch is recognised for the best quality and cutting edge technology, especially
delivering low cost with high quality.
 Jan.10 2008:NDTV Profit Car & Bike Award – ‘Car Technology of the year’
Bosch has advanced technology in car segment at low cost.

2007:
 Jan, 12, 2007:NDTV Profit Car & Bike Award 2007 - ‘Automotive Technology of
the year’
This award is honoured for the best Indian automotive industry for their handwork in
the calendar year 2006.
 Jan 4, 2007: CNBC – TV 18 Auto car Auto Award – ‘ Auto Component

manufacturer of the year’
This award is given for the best excellence of quality that had made both domestic
and international markets with superior quality of products.
2006:
 Aug. 17, 2006: Dun & Bradstreet American Express Corporate Award – ‘Top
Indian company in the Auto Component sector’
This award is given for the top Indian company in the auto component sector. It was
listed in the top 500 companied in the country. Bosch limited was selected as the best
company among the top 10 companies manufactures in India.
 Aug. 10, 2006: EEPC Award – ‘Star Performance for outstanding export
performance’
The Engineering Export Promotion Council (EEPC) conferred the „Star Performer‟
for outstanding export performance.
 Jan. 12,2006: NDTV Profit Car India Award- ‘safety & Technology Award’
Bosch was presented with this award for its pioneering work on the new age direct
injection diesel fueling system, with notable emphasis in the range of common rail
diesel.

2005:
 Jan. 8, 2005: Overdrive- Auto Monitor Award- ‘Auto component manufacturer

of the year’
Recognised for the innovation in the technology and manufacturing capabilities.
Customer satisfaction earned by the Bosch over the years for its quality
performance and drives range of products.
PROMOTORS:
 Mr V. K. Viswanathan, Chairman
 Mr peter Tyroller, Director
 Mr B. Steinruecke, Director
 Mrs Renu, S. Karnad, Director
 Mr Prasad Chandran, Director
 Mr Bhaskar Bhat , Director
 Dr Steffen Berns, Managing Director
 Mr Soumitra Bhattacharya, Joint Managing Director
 Dr Andreas Wolf (Alternate Director to Mr Peter Tyroller)
VISION:
“BE LEAN”
Learn:-
The simplify accelerate process with optimal cost through CIP; to re-invest and
transform all business processes with focus on customer to un-learn and re learn.
Excel:-
Through increasing intellectual capital, internal knowledge, competence and capabilities

through increase in efficiency and degree of value to customers

Adapt:-
By matching individual ability to organisation needs and investing in bridging the gap,
through individual qualification and team environment through flexible process equipment
and manpower
Now:-
To absorb dynamic market condition and competition, increase organisation to ensure

sustainable growth.
MISSION:
Be “QIK” stands for greater speed in everything that we do, and it stands for quality,
innovation and customer orientation. Our objective is to continuously improve our internal
processes.
QUALITY: - is our motto
INNOVATION: - is the key for success
CUSTOER ORIENTATIO: - keeping customers happy is our philosophy
QUALITY POLICY:-
1. Customer satisfaction:
The main objective of Purchasing and Logistics are geared towards Satisfying
customer requirements and guaranteeing consumer fulfilment. In order to ensure the best
combination of function, Bosch works with all parties concerned to deliver the best products
with minimal cost.
2. Responsibility for quality:
Bosch guarantees excellence of purchased production materials, capital items and

consumables as well as services. They are transparent and standardized measurements of
performance. The quality of products meets international standards and is geared towards
international standards.

3. Supplier development:
For procurement of quality raw material they require solid and innovative suppliers
and have to maintain long term healthy relationship with suppliers.
4. Fairness and transparency:
Only on the basis of objective and comprehensible criteria purchasing decision are made.
Bosch is fair and transparent in their business practices.
5. Environmental awareness:
When it comes to choosing of materials Bosch always give first choice to those
materials which can be easily recycled, disposed, packed and transported and also supplier
selection. They value environmentally sustainable solution.
6. Internationalization:
Bosch makes sure that their products are matching the international standards.by this
they build the international network this enable them to fulfil their customer and suppliers
internationally.
7. Information network:
As their industry is spread all over the world, it is very easy to gather data as their
activities by a worldwide information network.
8. Market and product orientation:
They take active role in developing quality products and cost optimization products and
services. In the improvement of product innovative and technical competency supplies and
successions products are involved.

9. Process orientation and continues improvement:
Bosch is dedicated to continuous progress. Through this they ensure standardized

controlling system which helps in improving the economy.
10. Development of human resources:
Bosch aims in enlightening their employees in the fields of entrepreneurial thinking,

leadership quality as well as intercultural proficiency to achieve their aims in purchasing and
logistics.
PRODUCT PROFILE:
Bosch manufactures and trades technology products in all major sectors
 AUTOMATIVE TECHNOLOGY
Bosch is the world‟s biggest innovative and independent automotive supplier; it
focuses on quality and innovative products. Automotive technology is the largest
business segment of Bosch in India which supplies automotive components to local
automotive industry and also overseas.
 Spark Plug
 Steering System
 Gasoline System
 Diesel System
 Chassis System Brakes
 Chassis System Control
 Electrical Drives
 Car Multimedia
 Automotive Aftermarket
 Starter Motors and Generators
 Automotive Electronics

Generator
Starter Motors

Spark plug
Industrial Technology:
For all drive, control and motion technologies Bosch Rexroth AC are an professional. In
India the global expertise addresses the requirements of the local confectionary and
pharmaceutical industries which is brought by the Bosch Packing Machine.
Business Division:
 Packaging Machine
 Special Purpose Machines (SPMs)
 Automation Technology
Consumer goods and building technology:
The Bosch power tools division is one of the market front-runners in India which provides
wide range tools for construction, woodworking and metal working industry; cordless tools,
accessories and tools for DIY (Do- It-Yourself). In security technology Bosch is one of the
leading technology companies.
Business division:
Power tools
Security system

Security system, CCTV
The Engineering and Information Technology:
In India Bosch is the largest development centre in the division of Engineering and
Information Technology. Bosch group has been preferred Engineering service and solution
partner for over 15 years worldwide.
Business Division:
 Packaging technology
 Drive and Control Technology
 Assembly and Special Machinery
AREA OF OPERATION:
The Bosch Group is one of the World‟s leading private industrial corporations Headquartered
Stuttgart at Germany. There are 300 subsidiary and regional companies around the world.
Most of the company‟s plant and employees are located in Germany. The Research
Technology Centre is located in Palo Alto, CA near Stanford University. There are 10
corporate sites in Mexico and 2 in Brazil. In India, Bosch is the one of the leading supplier
of technology and service and has strong presence in the country.
Bosch is the India‟s leading auto component manufacturer and also one of the leading indo-
German companies in India. Bosch Limited has strong national wide service network over
1000 towns and cities. The company headquartered in Bangalore with manufacturing plant at
Bangalore, Naganathapura, Nasik, Jaipur, and Goa. All plants are TS 16949 and ISO
certified.

INFRASTRUCTURE:
Bosch ltd infrastructure is one of the finest in the country. As per the international standard
work place is designed which makes employees feel comfortable, happy and safe in the
organisation. Bosch provides various facilities like,
Medical Facility:
Bosch provides 24 hours ambulance service to their employees. They provide annual master
health check-up and also associated with many hospitals in the town for the medication of the
workers.
Canteen Facility:
Canteen is well furnished and can accommodate for more than 1500 person at once. Food is
given to all employees that includes breakfast, lunch, dinner, tea/coffee and snacks for 8500
employees in who work in shifts.
Transportation Facility:
Company provides transport facility for employees.
Jaipur Plant:
Set up in 1999, built area of 16345m2 employees more than 1200. Jaipur plant produces BE
(Mechanical) pumps for domestic and export purpose.
Naganathapura Plant:
Inaugurated in the year 1990 built area of 47494m2 employees more than 1279 the plant
house produces Spark Plug, Starter Motor, and Generator.
Nasik Plant:
Established up in the year 1969 is specialised in manufacturing of clinical and injections to

automobile industries. Built area of 67617 and has more than 2500 employees.

COMPETITORS:
 Delphi Corporation
 DENSO
 Siemens VDO Automotive AG
 Visteon
 TVS Lucas
 Siemens
 Nippon
 Modi champion
 NGK
 Cav England
 Zexel
 Lucas
SWOT ANALYSIS:
SWOT analysis is a strategic planning technique used to estimate Strength, Weaknesses,

Opportunities and Threats. This recognises the external and internal factors that influences
the favourable and unfavourable to accomplish the company finale objectives.
STRENGTHS:
 Bosch has worldwide market for its products.

 Company has good infrastructure and advanced technology in auto component
manufacturing.
 Over 5 decades of experience this made Bosch products and brand name popular.
 Company had advance R&D facility for constant innovation.
 Bosch had good infrastructure and also employee safety facility.
 High customer satisfaction.
WEAKNESS:
 Adaptability of change is low.

 Marketing of products is given a lesser amount of prominence.
 Decision making is delayed due to lengthy process.
 No diversification in business.

OPPORTUNITIES:
 Innovation in products.
 As Bosch has good brand name it can diversify in to other line of business.
 It has the potential to produce power tools, packaging and security system.
 Can also produce eco-friendly and other cost-effective goods.
THREATS:
 Several substitute products available in the market.

 Increase in competition.
 As many products arriving in the market brand image of BOSCH is being weakened.
FUTURE GROWTH AND PROSPECTUS:
The auto component industries are flourishing has bright future with present manufacturing
capacity more industries being are setup for foreign collaboration.
In India auto component business exceedingly split with over 3000 companies and likely 500
industries in small sector. According to the Indian Industry survey report on auto component
small and medium enterprise is keen in investing on high technology in order to become self-
reliant globally competitive.
The survey tells that the even small scale industries are being well equipped to produce
products that can match the international criteria. Even SMEs have now started to take
strategic position in the international market.
In last few months there is a boom in Indian auto component sector in a way that it is
gradually turning to be profitable destination for several enterprises.
The other growths are:-
 Emphasis on strengthening of infrastructure and products.

 Cost reduction without compromising the quality of products and long term interest of
the business.
 Maintaining the liquidity position of the company.
 Continuous improvement in the business practice and restructure of HR strategies and
policies to attract and retain existing employees.

FINANCIAL STATEMENT:
BALANCE SHEET

STATEMENT OF PROFIT AND LOSS ACCOUNT:

CHAPATER – 3
INVENTORY
According to FERD HANSUM “Inventory is an idle resource of any kind provided that, such
resources have some economic value”
According to accounting principles board, Inventory means the aggregate of those items of
tangible personal property which:
1. Are held for sale in everyday course of business

2. Are in the process of manufacturing for such sales.
3. Are to be currently consumed in the production of goods or services to be available
for sale.
INVENTORY MANAGEMENT
Inventory management has been defined as “systematic control and regulation of purchase,
storage system and procedures which will minimize total cost relative to inventory decision
and related function.
Inventory control defined as “systematic control and regulation of purchase, storage and
usage of materials are such a way so as to maintain even flow of production and at the same
time avoiding excessive investment in inventories.
NATURE OF INVENTORY
• By manufacturing process raw materials can be converted in to finished goods. For

further production raw materials are procured and warehoused.
• Work-in-progress is semi-finished products.
• Finished goods inventories are finished goods which is ready for sale. Thus
inventories serves as a linkage between production and consumption of goods.
PURPOSE OF INVENTORY MANAGEMENT
• Inventory management helps in sales forecasting

• To meet companies strategic goals
• Sales and operation planning
• Material requirement and production planning

PURPOSE OF HOLDING INVENTORIES
• For transaction motive that facilitates continuous production and timely execution of
sales order.
• Precautionary motive which necessities the holding of inventories to meet the
unpredictable variation in demand and supply of material.
• Speculative motive which includes keeping inventories for taking benefit of price
variations, saving in the ordering costs and quantity discount etc.
IMPORTANCE OF INVENTORY MANAGEMENT
Inventory management refers to the procedure of managing the stocks of finished goods,
semi-finished goods and raw materials by the industry. If the inventory managed is
maintained properly any firm cam bring down the cost and increase the profit.
How much one should capitalize in inventory management? The response to this query
depends upon the volume and value inventory percentage of total asset. Importance of
inventory management varies industries to industries. For instance, an automobile dealer has
very high inventories, sometimes as high as 50% of total asset however in the hotel industry
it may be 2% to 5% of total asset.
NEED FOR HOLDING INVENTORIES
The question of handling inventories arises when the firm hold inventories. Company must
maintain adequate inventory to ensure smooth and interrupted production. It is very
expensive to maintain inventories then the question arises why do companies maintain
inventories?
Three general motives
• For business deal motive that accelerates uninterrupted production and well-timed
accomplishment of sales order.
• Precautionary motive which necessities the holding of inventories to meet the random
variation in demand and supply of material.
• Speculative motive which includes keeping inventories for gaining the benefit of price
variations and to save the ordering costs and quantity discount etc.

The specific benefits from holding inventory:
• Avoiding loss in sales

When the products are not available to the consumers this cannot be taken as the
breathing space for not holding inventories. This may happen due to absence of
inventory then the customers will shift to company‟s competitors.
• Gaining quantitative discounts

If the company is purchasing goods in bulk suppliers might give discounts. Buying
goods on bulk with discounts will reduce the cost of goods sold and there by
contributing to margin profit.
• Achieving efficient production runs

Each phase a firm set up worker and machines to produce item, start-up expenses are
incurred. These are absorbed as production begins. The longer the run, the smaller the
cost to being producing the goods, the longer runs involves lower costs are compared
to frequent setups.
• Checking the seasonality of materials

In agro based industries certain materials are available only in particular season.
When the season ends company must take the risk of storage of materials.
The overhead costs associated with the inventories are:
• Material costs
These are the costs of acquiring the goods that consist of transportation and handling
costs.
• Ordering costs
Ordering costs are those cost with preparation of procurement ordered and follow up
actions taken by the purchase department, carriage of materials ordered from scrutiny
and handling at the warehouse for string.

• Carrying cost
These expenses comprises of insurance, rent or depreciation in warehouse, wages of
store keeper, safety personnel‟s financing cost of money locked up in inventories,
spoilage, tax etc.
• Cost of funds tied up with inventory

There are two types of costs they are
a. Direct material such are raw material which is converted to finished goods
which are produced with the use of single raw material item or multiple item
b. Indirect material such as oil, grease, screw and nuts which are not part of final
products that are tools to produce final products.
TECHNIQUES OF INVENRORY MANAGEMENT
• Fixation of levels: it is a tool by which materials are maintained in the stores by

fixing different level namely maximum level, re-order level, minimum level and
danger level. These levels are fixed taking into consideration of cost, nature of raw
material, lead time storage space etc.
• ABC analysis: Materials are graded as A,B,C where material “A” grade are costlier
in its value but less in number where as materials with “C” grade are cheaper value
but more in number . Grade “B” materials are moderate in price and reasonable
quantity of such items are retained.
• VED analysis: materials are categorised into vital, essential, desirable components.
Much importance is given to vital as well as desirable.
• FSN analysis: under this technique materials are grouped according to the movement.
Fast moving materials are stored in large quantity to meet the requirements. Slow
moving materials are rarely very less as they rarely required.

• Economic order quantity (EOQ): this technique is related to purchase of raw
materials. The firm has to decide lot to be purchased on each replenished.
• Perpetual inventory system: Record is maintained in continuous basis as and when

materials are received and issued hence it is called perpetual inventory system.
Classification of materials in BOSCH:-
Components of inventory
1. Goods in transit (GIT)

2. Raw materials (ABE)
3. Work in progress (WIP)
4. Finished goods (FG)
5. Tools and consumables (BE)
6. Machinery spares and replacement parts (MAZE)
These are some of the names assigned to all components and sub components, which are the
abbreviations of meaning in German language.
Purchase Department
The purchase department in BOSCH ltd is decentralized an each division is responsible for
the requirement. The head of purchase department is answerable for effective discharge of
function, duties and responsibilities.
A letter will be issued to suppliers indicating the price for various items, date, terms of
payment etc.

Purchase procedure
Procurement
Sending an enquiry through tenders
Receipt of orders
Preparation of comparative statement
Negotiation
Purchase proposal
Order dispatches & receipts of material
Inspection & handling
Bills payable
Stores Department
The stores department is where all the inventories are kept. All store transaction like storing,
processing, maintenance; salvage and also maintaining of proper records are done in stores
department.

Stores in charge have the following duties:
• Receipt of materials: To receive the materials from suppliers and also verify the
suppliers code and check the quality and quantity of materials
• Accounting: To maintain the proper record of receipts, issue and stock of materials.
• Holding/storing materials: Storing of materials in appropriate place and to check
and receive purchased materials.
• Purchase requisition: Purchase requisitions for the replacement of stocks whenever
the stock level reaches the re-order level.
• Issue management: To give materials whenever required quantities against
authorized demand list.
• Internal check and controlling: To have a check of book balance, with the existing
physical stock at everyday intervals control over wrong issue of materials.
Production Department:
The production is the process in which raw materials are converted into final products.
Bosch is into production of many different alternators and starters, the product moves step by
step and dispatched.
Objectives:
• To follow production plan as per the schedule.

• To uphold healthy relationship with various department.
• To improve the technical effectiveness of production.

CHAPTER -4
DATA ANALYSIS
SIZE OF INVENTORY IN TOTAL CURRENT ASSET
Inventory generally means stock of goods involved in current assets. Current asset is those
which can be converted into cash during the normal operating business cycle. It is calculated
as follow
Inventory
Inventoryvalve  *100
currentasset
Table 4.1 showing the size of inventory in total current asset
Particulars 2012 2013 2014 2015 2016
Inventory 809.28 1,183.10 1095.70 1,197.80 1,276.20
Current 4,832.3 5,210.50 7,259.90 7,822.70 7,833.80

Asset
Percentage 16.74 22.70 15.09 15.31 16.29

GRAPH-4.1
Graph showing the percentage of inventory in total current asset
9000
8000
7000
6000
5000
Inventory
4000 Current Asset
3000
2000
1000
0
2012 2013 2014 2015 2016
INTERPRETATION:
The above graph shows the percentage of inventories to the current asset. It concludes that
there is variation in the percentage in current asset.
In order to enable the better proportion of current asset the organisation has to maintain the
inventories efficiently.

TOTAL INVENTORY GROWTH
Here an attempt is made to study the growth of inventory at BOSCH LTD for four years i.e.
from 2012 to 2016
current year inventory  previous year inventory

Total inventory growth  *100
previous year inventory
TABLE 4.2
Year Total inventory Growth

2012 809.28 -
2013 1,183.1 46.22
2014 1,095.7 -7.43
2015 1,197.8 9.31
2016 1,276.2 6.59

GRAPH-4.2
TOTAL INVENTORY GROWTH
1400
1200
1000
800
Total inventory
600
Growth
400
200
0
2012 2013 2014 2015 2016
-200
INTERPRETATION:
An attempt is made to study the growth of inventory for five years from 2012 to 2016. The
base year will be 2012. In the year 2013 it is showing increasing value.
The inventory increased in the year 2012 of 42.22 per cent. In the year 2013 of -7.43 per cent
due to increase in the value of supply, as per the requirement for the production the purchase
of materials was reduced and also storage of finished goods. In 2015 it was increased to 9.31.

RAW MATERIAL INVENTORY TURNOVER RATIO
This ratio says about the efficiency of firm which converts raw materials in to work in
progress. Raw material inventory turnover ratio indicates the relationship between the sales
and raw materials.
The below ratio indicates the number of times a raw material is replenished over the period of
times during the years.
Annual consumption pf rawmaterial

Raw Material Ratio 
Average Inventory of Rawmateria l
Opening stock  Clo sin g Stock

Average Rawmateria l 
2
TABLE 4.3
Year 2012 2013 2014 2015 2016

Annual Consumption
of Raw Material 35984 28735 27947 29766 38719
Average raw material

2796 2673 2606 3186 3963
Ratio(Times) 12.8 10.7 10.7 9.3 9.7

GRAPH-4.3
Graph Showing the Raw Material Turnover Ratio
45000
40000
35000
30000
25000
annual consumation
20000 average raw material
15000
10000
5000
0
2012 2013 2014 2015 2016
INTERPRETAION:
Raw materials plays greater role in inventory. The above graph indicaes that there is decline
in the inventory level so it‟s a good indication for the company because it decreases the
storage cost. So firm has to maintain the average level of inventory to decrease the cost of
production.

FINISHED GOODS TURNOVER RATIO
This is the ratio that tells about the relationship between cost of goods sold and finished
goods. Some manufacturing concerns maintain finished goods to create stock when good are
manufactured in anticipation for future demand.
COGS
Finished goods turnover ratio 
Average finished goods
Opening stock of finished goods  clo sin g stock of finished goods

Average finished goods 
2
Table 4.4 Showing Finished Goods Turnover Ratio
Particulars 2012 2013 2014 2015 2016
Cost of goods sold 21651 27428 19141 17922 26194
Average finished 1796 2673 2606 3185 3963

goods
Ratio 12.0 10.2 7.3 5.62 6.6

GRAPH-4.4
Graph Showing Finished Goods Turnover Ratio
30000
25000
20000
15000 cost of goods sold

average finished goods
10000
5000
0
2012 2013 2014 2015 2016
INTERPRETATION:
Finished goods turnover ratio for 2012 is 12 it gradually decreased to 6.6 from 2012 to 2016.
It shows the inefficiency in consistence performance of the company. High warehousing of
finished goods cause the cost of storage, in this case it shows the ineffective maintenance of
finished goods

WORK IN PROGRESS INVENTORY TURNOVER RATIO
Cost of manufactur e
WIP 
Average WIP
Opening stock of WIP  clo sin g stock of WIP

AverageWIP 
TABLE 4.5
Particulars 2012 2013 2014 2015 2016
Cost Of Goods Sold 21651 27428 19141 17922 26194
Average Work In 1412 2134 1515 1329 13 29

Progress
Ratio 15.3 12.8 12.6 13.4 19.7

GRAPH-4.5
Graph Showing Work In Progress Ratio
30000
25000
20000

average work in progress
10000
5000
0
2012 2013 2014 2015 2016
INTERPRETATION:
The work- in- progress inventory turnover ratio is showing a decreasing trend from the year
2010 to 2013 i.e. 15.3% to 13.4%. Raw material utilization is comparatively higher than
work-in-progress utilization leading to closing stock if work-in-progress. There is increase
trend in the year 2015of 19.7 per cent.

INVENTORY TURNOVER RATIO
Inventory turnover ratio is one of the efficiency ratios and measures the number of
times, on average, the inventory is sold and replaced during the fiscal year.
Inventory turnover ratio measures the company‟s efficiency in turning inventory into
sales. This is done to measure the liquidity of the inventory.
This ratio is one of the important indicators of the inventory performance as it
indicates the number of times of inventory working capital had turned over.
COGS
Inventory turnover ratio 
Average inventory
Table 4.6 Showing the Inventory Turnover Ratio
Particulars 2012 2013 2014 2015 2016
Cost of goods sold 21651 27428 19141 17922 26194
Average stock 3380 3261 3461 3350 3580
Inventory
Turnover Ratio(in 6.4 8.4 5.5 5.3 7.31
times)

GRAPH-4.6
Graph Showing the Inventory Turnover Ratio
40000
35000
30000
25000

average stock
15000
10000
5000
0
2012 2013 2014 2015 2016
INTERPRETATION:
In the year 2012 is 6.4 per cent the inventory turnover ratio is high because the
company has utilised the stock and there is increase ratio in times and in the following
years the inventory turnover ratio is decreased in the year 2014 i.e. 5.5 per cent that is
because there was no movement of stock and in the year 2016 there was increase by
7.31 per cent.

INVENTORY CONVERSION PERIOD
Inventory conversion period means the average time taken for clearing the stocks. It benefits
in deciding the firm‟s productivity.
360
Inventory conversion period 
Inventory Turnover Ratio
Table 4.7 Showing Inventory Conversion Period
Years 2016 2015 2014 2013 2012

Inventory
Turnover 9.7 9.3 10.7 10.7 12.8
Ratio
Inventory
Conversion 37.1 38.7 33.6 33.6 28.1
Period

GRAPH-4.7
Graph Showing Inventory Conversion Period
45
40
35
30
25
inventory turnover
20 coverstion period
15
10
0
2016 2015 2014 2013 2012
INTERPRETATION:
Inventory conversation period is fluctuating year by year in the year 2016 is 37.1 it took 37
days to convert and in the year 2013 & 2014 is 33.6. In the year 2015 it was increased to
38.7.
In the year 2016 its 37.1 the conversation period was good. Firm must give importance to
reduce the conversion period and henceforth the inventory conversion period is favourable in
nature.

COMPONRNTS OF INVENTORY
Raw material
Raw material inventory is the total cost of all components parts currently in stock that have
not yet been used in work-in-progress or finished goods.
There are two subcategories of raw material, which are
 Direct materials: These are the materials that are directly used in production of
finished goods. For example, this is wood used to manufacture a cabinet.
 Indirect material: these are the materials that are not incorporated in producing of
finished good but which help in producing the products. For example, oil, light,
lubricant, rags, and so forth consumed in the typical manufacturing facility.
Finished Goods
Finished goods that are goods that have completed the manufacturing process, or purchased
in a completed form, but which have not yet been sold to customers. Merchandise is the other
name for goods that have been purchased in finished form.
Stores and spares
Spare parts-items held in inventory that are used to replace a failed parts or components.
Scrap
Scrap is the excess unusable materials that are left over after a product has been
manufactured.

TABLE-4.8
Table showing The Percentage of Components of Inventory
Particulars 2012 % 2013 % 2014 % 2015 % 2016 %
Rm &
2062 19.85 3285 23.67 2999 23.9 2829 21.29 2927 20.87
Component
Rm &
Component 1514 14.58 1762 12.7 1060 8.45 782 5.89 670 4.78
in Transit
Stores and
115 1.11 322 2.32 273 2.18 261 1.96 267 1.9
Spares
WIP 988 9.51 1513 10.9 1517 12.09 1250 9.41 1407 10.03
Finished
1627 15.67 2641 19.03 2571 20.49 3800 28.6 4126 29.42
Goods
Stock of
3455 33.27 3518 25.35 3214 25.61 3487 26.25 3673 26.19
Spares
Stock of Spares
278 2.68 253 1.82 273 2.18 261 1.96 267 1.9
in Transit
Hand Tools 151 1.45 359 2.59 383 3.05 351 2.64 362 2.58
Scrap 23 0.22 17 0.12 9 0.07 13 0.1 36 2.05
Scrap in Transit 173 1.67 207 1.49 250 1.99 251 1.89 288 2.05
Total 10386 100 13877 100 12549 100 13285 100 14023 100

GRAPH-8.1
PERCENTAGGE OF TOTAL INVENTORY FROM 2012-2013
Components of Inventory
1%
0%
2%
3%
Rm component
24%
Rm component
Stores and Spares
25%
WIP
finished Goods
Stock of spares
13% stock of spares in transit

hand tools
scrap
scrap in transit
19% 2%
11%

GRAPH-8.2
PERCENTAGE OF TOTAL INVENTORY FROM 2013-2014
2%
0%
2%
3%
Rm component
24%
Rm component
Stores and Spares
26% WIP
finished Goods
Stock of spares
8%
stock of spares in transit
hand tools
2% scrap
12% scrap in transit
21%

GRAPH-8.3
PERCENTAGGE OF TOTAL INVENTORY FROM 2014-2015
2%
0%
2%
3%
21% Rm component
Rm component
Stores and Spares
26% WIP
finished Goods
6%
Stock of spares
2% stock of spares in transit
hand tools
9%
scrap
scrap in transit
29%

GRAPH-8.4
PERCENTAGE OF TOTAL INVENTORY FROM 2015-2016
2% 2%
2% 2%
Rm component
20%
Rm component
Stores and Spares
WIP
26%
5% finished Goods
2% Stock of spares
stock of spares in transit
10% hand tools
scrap
scrap in transit
29%
INTERPRETATION:
An Attempt is made to ascertain the percentage of raw materials and stores from the collected
data. It reveals that the raw materials in the year 2012 was 19.85% later increased to 23.67%
in the year 2013 and further increased by 23.9% in the year 2014 and again decreased by
21.29% in 2015 and decreased by 20.87 in the year 2016.
Work in progress is fluctuating 14.58% in 2012 and 4.78 in the year 2016. The value of loose
tools, finished goods has been fluctuating from year to year. The value of stores& spares,
scrap has been fluctuating from year to year.

CHAPTER-5
FINDINGS
 The major part of inventory can be seen in raw material, finished goods and
remaining part is work in progress.
 Total inventory growth is showing increase trend from the base year i.e. 2010 to 2015
in the year 2012 it is accounted to -7.43 therefore is a positive impact at the end of the
study period.
 In the total current average inventory result in 22.70%.
 Inventory turnover ratio is decreasing trend from 2010-1013 accounted to 6.4 to 5.3.
 Finished goods is showing increasing trend.
 The raw material turnover ratio is showing decreasing trend from 2010-2015 i.e. 12.8
to 9.7
 Finished goods turnover ratio is not doing well as they take more days to clear the
stock which indicates the low sales.
 It also shows that the inventory holding falls that indicates that the company is not
keeping enough stock on hand to meet the demand for its products.
 The raw materials in the year 2012 was 19.85% later increased to 23.67% in the year
2013 and further increased by 23.9% in the year 2014 and again decreased by 21.29%
in 2015 and decreased by 20.87 in the year 2016.
 Work in progress is fluctuating 14.58% in 2012 and 4.78 in the year 2016. The value
of loose tools, finished goods has been fluctuating from year to year. The value of
stores& spares, scrap has been fluctuating from year to year.

SUGGESTION
 The investment in current asset should be optimal.

 As the finished goods are not sold, company can use promotion, discount and other
strategies to clear the stock.
 The company has to optimize the utilization of raw material more effectively because
wastage of raw materials is observed.
 The company has to maintain a minimum inventory level in the total current asset.
 To convert work in progress to finished goods the company inculcate advanced
production system.
 The company has to maintain less inventory conversion period and high turnover of
inventory.
 To save the cost on raw materials, the company has to use JIT technique.
 To improve the control system and inventory management has to adopt some of other
selective control system like HML, VED and SDE analysis.

CONCLUSION
From the analysis it is clear that there is high accumulation of inventory in BOSCH LTD.
The company has installed all the type of machines to carry the production as well as
systematic examining of goods but the only thing the company needs to maintain sound
inventory management and use of appropriate techniques to make sure greater ease in the
production. Technique economized the use of resources by minimizing the total inventory
cost.
There must be periodic review by the management mainly material planning and control
department is must to see that the level of inventories are fixed depending upon
circumstances and avoid unnecessary building up of stocks which result in locking up of
scarce funds.
The conclusion one should draw effective inventory management can make a significant
contribution to company‟s objective is to maintain quality, increase market share and profit.
To improve improved inventory management system the company should be open to enhance
continuous production for which company has to invest time and effort.

BIBILOGRAPHY
BOOKS:
 M.N. Arora, cost management accounting, eight edition, vikas publication house pvt
ltd.
 M.T Melo, S. Nickel , 1999: Management and measurement IRWIN, Homewood.
 Maness T.S., Zietlow 2008: Short term financial management. Dryden press
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Name: Samir K. Srivastava Year: 2007
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Angappa Gunasekaran, Bulent Kobu
Year: 2005 ISNNO: 10.1080/00207540600806513
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Name: M.T Melo, S. Nickel Year: 1999 Issue: 11 Volume: 31 ISNNO: 1061-1074
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Name: Neely, Andy, Gregory, Mike, Platts, Ken Year: 1995ISNNO: pp.1228-
1263(36)
 An inventory-theoretic approach to product assortment and shelf-space
allocation Name: (Timotly L. Urban)ISNNO: 10.1016/s0022-4359(99)80086-4
 Integrated inventory models: the buyer vendor coordination
Name: Suresh K. Goyal, Yash P. Gupta. ISNNO: 10.1016/0377-2217(89)90247-6
 Research on warehouse operation
Name: Jinxiang GU, Marc Goestschalckx, Leon F. McGinnis Year: 2006
 Production scheduling
Name: Stephen C. Graves Year: 1981

 A periodic review inventory system with two supply modes
Name: Chi Chiang, Genaro j. Gutierrez
 Outsourcing inventory management decision in healthcare
Name: Lawrence Nicholson, Asoo J. Vakharia, and S. Selcuk Erenguc
 An over research on revenue management
Name: Wen-Chyuan Chiang, Jason C.H. Chen, Xiaojing Xu, Year: 2007.
Name: Craig Shepherd, Hannes Gunter
Year: 2010
WEBLIOGRAPHY
 www.inventoryquzz.com
 www.Boschltd.com

Bosch Inventory Management

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Bosch Inventory Management

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A Project Report on

“A STUDY ON INVENTORY MANAGEMENT AT BOSCH”

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

This is to certify that DILEEP KUMAR S bearing USN 1NH15MBA47, is a Bonafide

Signature of Internal Guide Signature of HOD Signature of Principal

I express my deep sense of gratitude to chairman DR. MOHAN MANGHNANI and

I express my special thanks to my internal guide PROF. DR. A. R. SAINATH, faculty

CHAPTER PARTICULAR PAGE NO.

CHAPTER 1 INTRODUCTION 1-7

CHAPTER 2 INDUSTRY & COMPANY PROFILE 8-25

CHAPTER 3 THEORETICAL BACKGROUND OF THE STUDY 26-32

CHAPTER 4 DATA ANALYSIS & INTERPRETATION 33-52

CHAPTER 5 FINDINGS , SUGGESTION & CONCLUSION 53-55

TABLE PARTICULARS PAGE NO

4.1 TABLE SHOWING THE SIZE OF INVENTORY IN TOTAL 33

 To apprehend the concept of stock management as a primary approach for a

Inventory management in manufacturing companies needs inventory for smooth running of

Dept. of MBA Page 1

 To understand the concept of inventory management as a major technique for a

SCOPE OF THE STUDY

 Present practices being followed at BOSCH.

1. Samir K. Srivastava, 2007:- Has emphasised on the Green Supply Management

Dept. of MBA Page 2

Dept. of MBA Page 3

 Green supply-chain management

 Coordinated supply chain management

Dept. of MBA Page 4

 Facility location and supply chain management

 Integrated analysis of production-distribution system

 Inventory management research in major logistics journals

 Inventory modelling with reliability consideration

 Supply chain partnerships

 Continuous-review inventory problem with random supply interruption

Dept. of MBA Page 5

 Performance measurement system design

 An inventory-theoretic approach to product assortment and shelf-space

 Integrated inventory models: the buyer vendor coordination

 Research on warehouse operation

 A periodic review inventory system with two supply modes

 Outsourcing inventory management decision in healthcare

Dept. of MBA Page 6

 Measuring supply chain performance

 Periodic review, push inventory policies for remanufacturing

Secondary data was obtained by referring to the documents maintained by the

 The study is confined to only Bosch, Bangalore.

Dept. of MBA Page 7

Dept. of MBA Page 8

ABOUT BOSCH LIMITED:

Dept. of MBA Page 9

BACKGROUND AND INSPECTION OF BOSCH:-

 1952:- Establishment of the company as motor industries Company Limited

Dept. of MBA Page 10

 1992:- ISO 9001 certification for all three plants

Dept. of MBA Page 11

 ‘IT Pride of Karnataka 2011-2012’ – Top performer in the IT’

 April 15, 2009: DHL – CNBC TV18 International Trade Award:’