Submitted to PUNJAB TECHNICAL UNIVERSITY, JALANDHAR Submitted in the partial fulfillment of the Degree requirement towards the

Submitted By: Anu bala MBA –IIIrd Sem. Roll No. 100112243231

Submitted To:

SESSION (2010-2012)


• • • • •

Declaration Certificate from the Organization Certificate of Supervisor (Guide) Acknowledgement Executive Summary
Chapter-1 Introduction

1. 2. 3. 4. 5.

To the topic Overview of the Industry Profile of the Organization Need of the study Objectives of the study

Chapter-2 Research Methodology

1. 2. 3. 4. 5. 6. 7.

Statement of the Problem Research Design Sampling Techniques used Selection of Sample Size Data Collection Statistical Tools Used Limitations of the Study

Chapter-3 Data Analysis and interpretation Chapter-4 Conclusion and Suggestions
o o o

Annexure Questionnaire Bibliography

I Anu bala a student of MBA, 2010-2012 batch, Bhai Gurdas institute of engineering and techonology, here by declare that the project on,” verification of banking transactions” is my original work and it has not previsously formed the basis for the award of any other degree, diploma, fellowship or other similar titles. It has been done under the guidance of A.N Prashar ( external guide)

Anu Bala

Anu bala BGIET sangur MBA3rd sem Date : . Jalandhar.CERTIFICATE This is to certify that the project report entitled verification of banking transactions” is a bonofide work carried out by miss Anu bala d/o SUB Jaimal Singh has been accomplished under guidance and supervision. All sources of information and help have been duly mentioned and acknowledged. This is an original work and has not been submitted by him anywhere else for the award of any degree/diploma. This project is being submitted by her in the partial fulfillment of the requirements for the award of the Master of Business Administration from Bhai gurdas institute of engineering and technology Punjab technical university.

and to the staff of Punjab state power corporation for helping me in completing my project work and making it a great success. I would like to express my deep sense of gratitude to staff of BHAI GURDAS Institute of engineering and technology .A. I sincerely express my gratitude and lot of thanks to Mr. ANU BALA . I would thank all my friends. Sangrur who introduced me to the subject and under whose guidance I am able to complete my project.N Prashar. This report entitled “VERIFICATION OF BANKING TRANSACTIONS" is the outcome of my summer training at Punjab state power corporation limited(head office Patiala). Last but not least.ACKNOWLEDGEMENT I feel immense pleasure to give the credit of my project work not only to one individual as this work is integrated effort of all those who concerned with it. which made my project more appealing and attractive. I want to owe my thanks to all those individuals who guided me to move on the track. faculty members and all respondents who rendered their precious time for contributing their skills and to fill the questionnaire.



understanding. or transfer of cash or property that occurs between two or more parties and establishes a legal obligation. exchange. correctness. 2. . Comparison of two or more items. contract. or truth of the information. Also called booking or reservation.INTRODUCTION verification Definitions 1. and then lending out this money in order to earn a profit. banking Definition In general terms. Transaction Definitions 1. Alternative term for acknowledgment. General: Agreement. or the use of supplementary tests. to ensure the accuracy. the business activity of accepting and safeguarding money owned by other individuals and entities.

Accounting: Event that effects a change in the asset. liability. (2) transfer of title which may or may not be accompanied by a transfer of possession. Banking: Activity affecting a bank account and performed by the account holder or at his or her request. Computing: Event or process (such as an input message) initiated or invoked by a user or computer program. . 5. regarded as a single unit of work and requiring a record to be generated for processing in a database. VERIFICATION OF BANKING TRANSACTION Verification of banking transaction is a process of verifying the amounts. Transactions are recorded first in journal and then posted to a ledger. 3. checks from the ledger of bank with remittance sheet which provides the accuracy. Every transaction has three components: (1) transfer of good/service and money. or net worth account. and (3) transfer of exchange rights. Verification is a alternative term for acknowledgement. 4.2. Commerce: Exchange of goods or services between a buyer and a seller. In a secure transaction (see ACID qualities) such events are regarded as a single unit of work and must either be processed in their totality or rejected as a failed transaction. correctness and truth of the information.

 BANK TRANSACTION The Bank Transactions report contains information about all transactions. you can use this report to research the information that affected those accounts. or if you need assistance in the monthly reconciliation process. including deposits. grouped by bank accounts and by date over a selected time period. CASH CONTROLS CASH  Coins. currency. If you have questions about your bank account. and money on hand or on deposit at a bank or a similar depository. money orders. • . transfers. checks. INTERNAL CONTROL OVER CASH IS IMPERATIVE To safeguard cash and assure the accuracy of the accounting records. checks. and other bank activity.


.INTERNAL CONTROL OVER CASH AND DISBURSEMENTS USE OF A BANK  Bank minimizes the amount of the currency that must be kept in hand  Contributes significantly to good internal control over cash.

RECONCILING THE BANK ACCOUNT Reconciliation:  Is necessary as the balance per bank and balance per books are seldom in agreement due to time lags and errors. BANK STATEMENTS  A bank statement shows: checks paid and other debits charged against the account  Deposits and other credits made to the account  Account balance after each day’s transactions The bank statement is a copy of the bank’s records sent to the customer for review. one by the company. A “double” record of cash is maintained. one by the bank. A bank Reconciliation:  Should be prepared by an employee who has no other responsibilities pertaining to cash. RECONCILING THE BANK ACCOUNT      Steps in preparing a bank reconciliation: Determine deposits in transit Determine outstanding checks Note any error discovered Trace bank memoranda to the records . These two accounts are reconciled.

For example. The purpose of the preparing a Bank Reconciliation Statement is: (a) To ensure that all transactions that effect your bank account have been properly recorded in your accounting system. BANKING RECONCILIATION Bank Reconciliation Banks usually send customers a monthly statement that shows the account's beginning balance (the previous statement's ending balance). the cash payments journal). Bank Reconciliation Statement One of the most important tasks in the monthly Accounting cycle is to prepare a Bank Reconciliation Statement.e. (b) To check that your Bank has not made mistakes. and the account's ending balance. it would be possible that you may write out a cheque but forget to record it in your accounting system (i. all transactions that affect the account's balance during the month. Generally if the mistake is in your favour. you say nothing but if the mistake takes money . A failure to record transactions affecting your bank account would result in you not knowing how much funds you had available. In fact Banks do make mistakes.Each reconciling item used in determining the” adjusted cash balance per books” should be recorded by the depositor.

the Bank Reconciliation statement tests the difference between the Bank Balance on your bank statement and the Bank Balance in your Accounting Systems. There will almost always be a difference.000 interest the account owner earned. Section B is where you list the differences between the transactions appearing on your bank statement and the transactions appearing on your cash journals. What does a Bank Reconciliation Statement look like? The illustration below shows a bank reconciliation statement as having two sections. However. a Bank accidentally deposited $50 million in a private bank account. then you complain to the bank! In one famous case. Wouldn't it be nice! Essentially. . the Bank failed to recover the $58. The Bank discovered its error after one week and took the money bank. Section A is where you calculate what your bank account balance from your own financial database.away from you.

The computation is simple. This is where you will work out your Bank Balance at the end of the month.How do you get started? First work out Section A. .

review of objectives. Then take away the payments. Monitoring is therefore to be perceived as a positive and constructive activity supporting the project and helping it to realise its objectives. Both desk and field monitoring have three functions/aspects: Preventive: information on the rules & procedures .Add the receipts for the month to the Bank Balance at the beginning of the month. activities planned • . Project monitoring Monitoring is a necessary core management instrument. With the start of Tempus IV phase a new monitoring approach has been introduced which links strong desk monitoring activities and a reinforced field monitoring policy. priorities. Benefits of monitoring extend beyond a given project. Then what is left should explain the difference between what you say is in your bank account and what the banks says. If you find any differences they must go in Section B. Each project should have embedded internal project monitoring arrangements to check progress / achievement of milestones. to maximise the return on investment of EU funds through the achievement of public policy objectives. This will give you the Bank Balance at the end of the month. The task of preparing a bank reconciliation statement is all about comparing the transactions on your cash payments journal and cash receipts journal with the transactions that appear on the Bank Statement. since lessons can be learnt and principles of best practice disseminated. The general objective of all monitoring activity is to maximise the impact of the programme and. Monitoring is critical to all projects. recognise the need for change / amendment / development and ensure quality. methodology. identify problems. both for projects that might be encountering problems and for projects which are encountering particular success. as importantly. You should neatly tick every transaction that appears in both places (the Bank Statement and the Cash Journals). Then work out Section B.

the sustainability of the activities and programmes set up. the field monitoring concentrates more on the control of the activities. Tempus IV field monitoring policy is based on EACEA Tempus unit staff and National Tempus Offices monitoring to be complemented by external monitoring experts upon request by parent DG.an exercise of field monitoring can already take place at that time and issue recommendations. the multiplier effect. the links between the contents of the interim report and the situation on the ground and makes recommendations for the continuation of the project (period for field monitoring: after receipt of the interim report.period during which the organization and the management of the consortium are set up . the field monitoring will aim to evaluate the results of the projects. when the various activities of the project are deployed. its impact. in the last 6-12 months of the period of eligibility) Step 3: After the completion of the project.Advisory: recommendations on both the content and the financial aspects • • Control: check and assessment of the results There are three specific stages in project monitoring: Step 1: Following the launching of the project . In the . It is the responsibility of the Agency to follow the project cycle and to monitor closely the implementation of the selected proposals. its consequences. the results of which will appear in the interim report (period for field monitoring: 3 to 12 months after the beginning of the period of eligibility) Step 2: Following the interim report. financial management relating to the use of the grant (period for field monitoring: 3 to 15 months after the end of the period of eligibility).

Importance of Bank Documents and Their Verification: The Law of evidence plays a pivotal role in the effective functioning of the judicial system. it can either be by joining a monitoring mission scheduled by an NTO or a specific project on which the local NTO is asked to accompany. Hence the documents and verification of documents are very important and very essential to establish the truth and to bring Justice. to report to the Agency and to propose recommendations. NTOs will mainly focus on: • • • Effectiveness Sustainability Efficiency Field monitoring is taken to be a major task amongst the NTO activities. . EC Delegations will be invited and their involvement is encouraged.framework of their terms of reference. Field monitoring reports prepared by NTOs facilitates desk monitoring operations by EACEA staff and is complementary to EACEA follow up of grant holder and partner activities.” Relevancy of facts is the key to determine the outcome of the judicial process which is based on fair trial without fear or favor and upholding the principles of Natural Justice and Human Rights. Hence the importance of evidence neither be overlooked nor be ignored. NTOs are required to undertake field monitoring of all projects involving HE institutions from their country (based on the monitoring plan approved by EACEA Tempus unit). The proof of evidence comes out of documents and the establishment of relevant evidence is through the verification of documents. When EACEA .Tempus unit undertakes field monitoring. In the field monitoring. In this case the NTO will therefore also participate actively in the field monitoring exercise. “The existence of substantive rights can only be established by relevant and admissible evidence.

The bank customer is entitled to receive the certified copies the aforesaid documents and these constitute the first documents. such documents are called documentary evidence. Banks do not entertain any proposal without a preliminary discussion and if such discussion takes place neither the minutes of the meeting and discussion are recorded nor the gist of the meeting is made either by the bank or by the prospective borrower. There are oral and documentary evidences. If anybody nurses such a belief.Evidence means and includes(a) All statements which the court permits or requires to be made before it by witnesses. then he is wrong particularly for a borrower. 2. The very first day when a potential customer approaches a bank to establish a relationship with the bank through an interaction. Oral evidence need not constitute documentary evidence. After the receipt of the application for bank facilities along with the project . then the bank requests their prospective borrower to submit their application for bank facility containing all relevant information along with the detailed project report of the proposed venture. it becomes a documentary proof. such statements are called oral evidence. 3. (b) All documents including electronic records produced for the inspection of the court. 1. One of the most important aspects of opening the account is the introduction of KYC norms which should be complied with and it is mandatory. Thus an opportunity to create a document is lost for the prospective borrower. What are Bank documents? It is generally believed that the documents signed by any person to avail any facility alone are bank documents. in relation to matters of facts under inquiry. But when minutes of the meetings / discussions are recorded. The bank may also ask the borrower to open their account and start their bank transactions so that the bank can monitor their activities from the very beginning itself. If the discussion bears fruit. the potential document and the proof thereof begins.

It may be noted if any meetings and discussions take place with regard to the proposed project. the borrower executes bank documents with regard to the facilities sanctioned so as to enable the bank to create security documents legally binding the bank and the borrower so that the bank becomes a secured creditor. 6. 5.report. the bank undertakes a technical feasibility and economic viability study in detail. If the borrower belongs to corporate sector. then they will have to create charge on the secured assets in favor of the bank within 30 days from the date of the documents. then a resolution is passed by the borrower company for having accepted the terms and conditions as per the bank’s requirement. then they can make a representation to the bank to reconsider their decision. After the sanction of the facility. then they have to give valid reasons for rejecting the proposal and if the borrower is not satisfied with the reasons. During the course of the study the bank may raise many queries and sometimes further discussion on the project proposal for which the borrower client will have to give convincing and satisfactory replies in writing. verification and satisfaction of the charges created. In case the bank rejects the proposal. All these form important documents. the bank releases the funds for the utilization of released fund for the purpose for which it is released. then they after discussion sanction the facilities and intimate the borrower in writing regarding the sanction with all relevant terms and conditions. If the borrower is a company incorporated as per the Company law. The entire process is carried out through various documents and these constitute very important documents. Subsequently there can be modification. Once the loan is sanctioned. The entire documents and papers and letters exchanged between the bank and the borrower become very important documents. . After fulfilling and complying with all the terms and conditions as stipulated in the sanction letter. the bank conveys their sanction in duplicate with all the terms and conditions to the borrower along with all relevant documents and related papers and get them acknowledged by the borrower for having accepted the terms and conditions. 4. If the bank is satisfied with the replies of the borrower customer. then the minutes of the meeting and discussion should be recorded in detail and duly acknowledged by the borrower and the bank officials.

(b) Physical control. They are: (a) Quarterly Information System (QIS) Forms I and Form II (b) Half Yearly operating fund flow statement – Form III (c) Annual review. . credit monitoring by the bank begins. (d) Monthly statement of select operational data (MSOD). (c) Financial control. post sanction supervision. diligently. (e) Control at the instance of the bank. control and monitoring of credit may be divided into the following categories. (I) (a) Legal control. (II) Off-site and onsite inspection and supervision. Further it also helps the bank to prevent any slippage by which the account becomes an NPA. The supervision. (IV) Returns / statements submitted to the bank at the instance of Reserve Bank of India. honestly and focusing on the purpose for which the credit was granted. then it can prevent the account becoming NPA and the unit becoming sick. control and monitoring of credit becomes very important. (f) Monthly Stock Statement and yearly stock audit. (III) Off-site supervision by banks. The moment the bank releases the funds.7. Hence if credit monitoring is done judiciously. Since bank credit is purpose oriented.

All the above items constitute yet other important documents more so they contain bank’s observations. 8. Besides, any correspondence exchanged between the borrower and the bank becomes documentary evidence. Hence the communication becomes an important toll which will aid the borrower to establish his credibility. 9. The importance of verification of documents is based on the fact that the contents of the documents may be proved either by primary or secondary evidence. The principle is “best evidence in the possession of power of the party must be produced. What the best evidence is, it must depend upon circumstances. Generally speaking, the original document is the best evidence. This is the general and ordinary rule; the contents can only be proved by the writing itself.” Further, “The contents of every written paper are, according to the ordinary and well established rules of evidence, to be proved by the paper itself, and by that alone, if the paper is in existence.” This tenet of law clearly establishes the need for verification of documents. Besides, the existence of any onerous clause or any distortion in the terms and conditions as laid down in the sanction letter or any breach of contract if any, and any lacuna that exists in the document can be established only by verification of the documents. 10. In the ultimate analysis, communication is the most vital aspect of any dealings particularly so in legal matters. It can make a life or mar a life. GENERAL OBJECTIVES OF THE SUBJECT Establish a rigorous and complete analysis of the different financial products and services currently offered by banking entities (banks, savings banks and credit cooperatives) in their operations. The initial framework encompasses all financial operations and services offered by banking institutions. This is studied from the standpoint of the customer, company or individual demanding the transaction or service in question. All transactions will be valued in money terms, and also according to the cost or effective yield of the transaction, which will be referred to

as the effective return of the transaction. PRACTICALS IN THE COMPUTER CLASSROOM A computer will be used to quantify and simulate the main banking transactions (current accounts, credits, loans, bank discounts, etc.), with a dual objective: firstly, to determine credits and debits generated by each transaction; and secondly, to obtain the cost or effective rate of return of each transaction. METHODOLOGY AND WORK PLAN In order to achieve the abovementioned objectives, in addition to the normal theoretical practical classes, a work programme will be developed based on the quantification of bank transactions by computer. ASSESSMENT SYSTEM. Students attending the courses on a regular basis (examinations in February and July) will be assessed on the basis of continuous work and attendance at computer classes (1 point), the resolution of one practical banking transaction case study on computer (1 ½ points) and the completion of a theoretical-practical examination (7.5 points). In July and September the subject will only be assessed on the basis of completion of the theoretical-practical examination. PROGRAMME TOPIC 1.- BANKING SYSTEM AND BANK INSTITUTION. OBJECTIVES: An explanation will be offered of the functioning of the Spanish financial system and, within this system, the role played by the banking system. 1.1- Concept, function and elements of the financial system. 1.2- Current structure of the Spanish financial system. 1.3- Credit and banking system. 1.4- Banking institutions and banking business. 1.5- Organization of banking activity. 1.6- Banking transactions .






OBJECTIVES: Review the basic concepts that define financial operations and which we will apply in the study of the different banking operations. 2.1- Value of money in time and interest rate. 2.2- Methods for calculating interest. 2.3- Nominal rate and effective interest rate (ERI). 2.4- Cost or effective rate of return of banking transactions. Equivalent annual rate (EAR). 2.5- Valuation dates. 2.6- Effective rate of return (ER). 2.7- Description, analysis and valuation of income. TOPIC 3.- PASSIVE BANKING OPERATIONS. OBJECTIVES: Study the main passive banking transactions in which banks obtain income, with special emphasis on the calculation of the profitability obtained by customers. 3.1- Introduction. 3.2- Current accounts: concept, description and operation. 3.3- Savings accounts 3.4- fixed-term deposits 3.5- Deposit certificates 3.6- Cash and treasury bonds. TOPIC 4.- ACTIVE BANKING OPERATIONS (I). OBJECTIVES: Study the different active bank operations in banking (Loans), calculating the effective cost for customers. 4.1Introduction. 4.2- Differences between credits and loans. 4.3- Credit accounts: description, repayment of interest and cost.

6.Promissory notes 7.4. 6.4. 5.Transfers 7. TOPIC 7. mortgage-based and currency-based 4. Documentary credit. calculating the effective cost for customers.6.1. 6.. with special emphasis on the study of documentary Credit. 5. 7. TOPIC 5.Applying for credit 4. Description. TOPIC 6.Exchange bills.International payment methods.2. 7..2.Cards 7. 7.Banking discount.5.3.Cheques.7.Guarantees.Sale-purchase of currencies and exchange risk. OBJECTIVES: Study the different active bank operations in banking (discount).Financing of imports. exchange rate hedging.2. repayment of interest and cost.Types of loans: Index-linked. OBJECTIVES: The different existing and new banking services are analysed in detail.ACTIVE BANKING OPERATIONS (II) .4.Introduction 7..5. 6.Introduction.Transfer of credit.Confirmed payment .4.1.Financing of exports 6. 6.BANKING SERVICES.INTERNATIONAL BANKING TRANSACTIONS. OBJECTIVES: Analyse different international banking transactions.1.3.5.

2. 9.Life insurance. TOPIC 8.Cash services 7.11.Renting. 9.7. TOPIC 9.16.Commercial reports 7.Direct debiting 7. 7. OBJECTIVES : Students will study other activities developed by financial entities and which have been incorporated banking entities. OVERVIEW OF THE INDUSTRY .9.1. 9. 9.Evaluation process and transfer of risks.14.1.Factoring 7.E-banking.Investment funds.13.Claims Services of the Bank of Spain.Cash transactions and payment and settlement orders 7. savings and retirement plans.10. 8.Financial Leasing.8.3.12.CONTROL OF BANK ACCOUNTS.2.Credit investments and risk analysis..Safes 7. OBJECTIVES: Students will analyse the activities of banking entities and the facilities available to customers who wish to present claims if they are not happy with the performance or service offered by same.4.OTHER FINANCIAL FIGURES AND ENTITIES.General criteria of performance of banking entities.15.Management of the collection of trade bills.5..Night drop box 7. 8.Transactions on marketable securities on the account of issuing entities. 8. 8.Pension plans.3. 7. 9.4.17.

COMPANY OVERVIEW: Punjab state electricity board (PSEB) is a government organization engaged in power generation transmission and distribution. it came into existence with effect from 1st may.366 MW. The company is a statutory body formed in 1959 under the electricity supply. The company has a total installed capacity of 6. In its present form.841. PSEB owns and operates power stations based on various technologies including thermal and hydro. . 1967. The company produces and supplies electricity to the customers of the state of the Punjab. act 1948. PSEB also constructs and maintains its transmission and distribution system for supplying electricity to the various categories of consumers in the state.

HISTORY OF PUNJAB STATE ELECTRICITY BOARD STATEMENT SHOWING OBJECTS AND REASONS FOR PLACING ANNUAL FINANCIAL STATEMENT FOR THE YEAR 2008-09 BEFORE THE LEGISLATIVE ASSEMBLY.5279-I&EL(7) 189/67/9563 dated 29. II. transmission and supply of electricity within the state. board is required to submit to the state of govt. of Punjab (I&P Deptt. According to the section 61 of the act.1967. To arrange the supply of electricity within the state and for the transmission & distribution of the same in the most efficient and economical manner. distribution and utilization of electricity within the state as per the provision of the act. in February each year. To prepare and carry out the schemes for establishing generating station and transmission and distribution of power within the state and to operate them etc.4. and use of electricity and to formulate perspective plan for the generation. III.) on first day of may.1948 (hereinafter called the act) vide it notification no. a statement of estimate capital and revenue receipt and expenditure for the ensuring year and the latter shall cause it to be laid on the . To collect data on demand for. Punjab State Electricity Board was constituted by govt. The board is charged with the following general under section 18 of the idbi act:I. IV.1967 under section 5 of the electricity (supply) Act. To exercise control in relation to the generation.

but the said act. 1948. In order to fulfill this statutory requirement the annual financial statement of the board of the financial year 2008-09 as received from the board is placed before the state legislature. As such. The electricity Act-2003 has been enacted.table of the house of the state legislature for discussion. the financial statement has been prepared in compliance to section 61 of the electricity (supply) Act. SWOT ANALYSIS PUNJAB STATE ELECTRICITY BOARD SWOT ANALYSIS STRENGTHS:  Diversified customer base  Vertically integrated operations WEAKNESSES  Delay in unbundling of PSEB  Insufficient infrastructure OPPORTUNITIES  Agreement and contracts  Increasing demand for electricity in Punjab THREATS  Extreme weather conditions  Intense competition KEY COMPETITORS  The Tata power company limited  Uttar Pradesh electricity board . there is no guideline for preparation of annual financial statement and its laying on the table of state legislature.

 Auro energy limited  Maharashtra state electricity board Gujarat state electricity corporation limited PROFILE OF THE ORGANISATION .


• The major objective of the study is to get accuracy of transactions. • The study of banking reconciliation and monitoring provide a accurate record of the transactions. PUNJAB STATE POWER LOCATION VIEW: . • The major objective for a trainee is to learn more about the banking transaction’s verification and its reconciliation. • The need for the study is to know about the overall transactions of the banking and its verification in the monitoring section of the PSPCL(Head Office). a trainee will be able to work well for the organization. OBJECTIVE OF STUDY… The following are the main objective which has been undertaken in the present study . • It gives a proper record of the banking transactions which provides exact knowledge about transactions. From the study I have learned very much. after understanding and collecting information about the organization.NEED OF THE STUDY… The need of the study arises because of the reason that a trainee must understand the company. • This study provides a written record about the transaction of many years. and its services offered. about the company as well as its product named “Verification of banking transaction” which will help me a lot at my future working days. its achievements and tasks. • It helps in removing the defaults. So that.




Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications. what the managerial problem is and the type of information that the research can generate to help the problem before conducting the fieldwork. as it determine precisely. Techniques The problem definition can be said to be the quite essential part of the research process. Census Technique 2. The availability of . Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. It is better to decide upon the method/technique of data collection. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action. The census method is costlier and more time consuming as compared to sampling method but the result are near representatives than sample method. Generally. the action the objectives can be obtained optimally in the context of a given environment. there are two technique of data collection are: 1. Sample Technique or Convenient sampling A census is a complete enumeration of each and every unit of population where as in a sample only a part of the universe is studied and conclusion about the entire universe is drawn about that basis.

Primary Data The primary data was collected to measure the customer satisfaction and their perception regarding ICICI Prudential Life Insurance. newspapers. Data Collection The objectives of the project are such that both primary and secondary data is required to achieve them. books. The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. So both primary and secondary data was used for the project. Data collection is refers to research design. 2. The questionnaire has been designed in such a manner that the consumer’s satisfaction level can be measured and consumer can enter his responses easily. .resources. Primary data. Secondary data. RESEARCH DESIGN… It’s mean to collect data for doing research. & websites etc. There are two types of data collection…. 1. time factor degree of accuracy desire and scope of the problem enable us to apply sample technique. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines.

The method section should provide enough information to allow other researchers to replicate your experiment or study. Secondary data: Secondary data are those which have already been collected by someone else and which have already been passed through the stratified process E. It has been collected through a { Personal meeting with senior} 2.Primary data: Primary data are those which are collected a fresh and the first time happen to be original in character. . You should provide detailed information on the research design. Books. Internet. Secondary Data The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in Life Insurance.g. journals . equipment. participants. materials. The method section of an APA format psychology paper provides the methods and procedures used in a research study or experiment. variables and actions taken by the participants.

Difficulty: Average Time Required: Variable Here's How: Participants: Describe the participants in your experiment. including who they were. 1. For example: Two stories form Sullivan et al. Design and Procedure. how many there were and how they were selected.The method section should utilize subheading to divide up different subsections. equipment or stimuli used in the experiment. This may include testing instruments.'s (1994) second-order false belief . 2. technical equipments. Materials: Describe the materials. images or other materials used in the course of research. These subsections typically include: Participants. For example: We randomly selected 100 children from elementary schools near the University of Arizona. books. Materials. measures.

attribution tasks were used to assess children's understanding of secondorder beliefs. Explain whether your experiment uses a withingroups or between-groups design. The examiner explained to each child that he or she would be told two short stories and that some questions would be asked after each . and the order in which steps occurred. The independent variables were age and understanding of second-order beliefs. For example: The experiment used a 3x2 betweensubjects design. 3. Design: Describe the type of design used in the experiment. how you collected data. Specify the variables as well as the levels of these variables. 4. Procedure: The next part of your method section should detail the procedures used in your experiment. Explain what you had participants do. For example: An examiner interviewed children individually at their school in one session that lasted 20 minutes on average.

story. Methodology can be: define as ealier shown in the diagram: Research Methodology refers to search of knowledge . it was compiled. rules. "The analysis of the principles of methods. classified and tabulated manually and with help of computer. and postulates employed by a discipline". . Then the task of drawing inferences was accomplished with the help of percentage and graphic method.one can also define research methodology as a scientific and systematic search for required information on a specific topic. Analysis and Interpretation After the data collection. All sessions were videotaped so the data could later be coded. The word research methodology comes from the word “advance learner ‘s dictionary meaning of researches a careful investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge. Different suggestions given by me to the Company after analyzing the views of every respondent are also given in the report.

What is a problem statement? In reviewing numerous manuscripts for possible publication in this peerreviewed journal. to understand the reality. Research is a systematized effort to gain new knowledge”. or have been applied within a discipline". the search for knowledge through objective and systematic method of finding solution to a problem/answer to a question is research. and there seems to be continuing confusion as to what comprises a problem statement. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. Truth means the quality of being in agreement with reality or facts. Research is the pursuit of truth with the help of study. comparison and experimentation. store. or summary of the content of the report comprise a problem statement? To add to the confusion. To do research is to get nearer to truth. definitions and explanations of techniques used to collect. 2. research methods textbooks in the social sciences do not clarify the matter. In other words. It also means an established or verified fact. observation. "The systematic study of methods that are. . A documented process for management of projects that contains procedures. can be. analyze and present information as part of a research process in a given discipline. although they may note that research examines problems or that it engages in problem solving. we repeatedly find that problem statements are absent or incomplete. hypothesis. 3.1. The study or description of methods This definition explains that research involves acquisition of knowledge. Are purpose and problem statement synonymous? Does a study objective. as well as reading numerous studies published in other journals. Research means search for truth.

Hernon and Metoyer (Hernon & Metoyer-Duran. 1. identification of what would be studied. The components of a problem statement More than 30 years ago. over the years. it is important to address the “so what” question and to demonstrate that the research is not trivial). and 9. They discovered nine attributes that respondents associated with problem statements (Hernon & Metoyer-Duran.Dr. 3. clarity and precision (a well-written statement does not make sweeping generalizations and irresponsible statements). pp. one of us while a doctoral student took a course on reflectiveinquiry taught by one of the foremost researchers in higher education at Indiana University. 8. and justification (regardless of the type of Research.More than a decade ago. No use of unnecessary jargon. Identification of key concepts and terms. 1993. Articulation of the study's boundaries or parameters 6. 7. 1993. Furthermore. that conceptualization has gained resounding support from other researchers. 1994) supplied sample problem statements to researchers in library andinformation science and other social science disciplines in an attempt to investigate different attitudes toward the composition of a problem statement. 4. Hisconceptualization of a problem statement actually guides the expectations we have for allpapers submitted for review in Library & Information Science Research. identification of an overarching question and key factors or variables. Some generalizability. Conveyance of more than the mere gathering of descriptive data providing a snapshot. 2. benefits. 5. Conveyance of the study's importance. Metoyer Duran & Hernon. 82–83): 1. David Clark stressed that any problem statement in the social sciences should contain four components: . while avoiding the use of valueladen words and terms.

In teaching students to write good problem statements. explanation of study significance or the benefits to be derived from an investigation of the problem. There is definitely a conflict or problem. require. A mere question. that is. Dr. adding that a statement of purpose indicates what the study will accomplish but does not place that goal or task in the context of a problem. andthe lead-in helps set up the third component and attract a readership. with an identification of what the study would do. Clark viewed a purpose statement as part of the third component. suppose that two people do not get along. distressful. Some researchers. interlocking short sentences: (1) the lead-in. . and 4. 2. prefer to substitute an overarching question or two for a purpose statement. he required them to develop three.g. Clark also reminded his students that a subsequent section of reflective inquiry covers“objectives. Lead-in. For illustrative purposes. vexing. however.” and therefore these components are out of scope for the problem statement. he noted. Indication of the central focus of the study. Declaration of originality (e. the conduct of research.1. or might there be other ways to resolve the conflict? The problem statement must clearly indicate the former. if the intention is to support a research study. mentioning a knowledge void. however. and hypotheses. 3. For example. and (3) a justification. which would be supported by the literature review).. Does the resolution of the problem. research questions. a conflict or something unsettled. perplexing. (2) a statement about originality. and in the need of investigation. Study significance must survive the “so what” question as well as the “how so” question. Dr. does not identify a problem.

does information seeking behavior encompass information dissemination practices? Does the second sentence Narrow and sufficiently clarify the intent of the proposed study? And. The problem statement is the first proposition. so I to accomplish the objective conducted the study. To do so. Third. The purpose is to persuade or gain acceptance of the conclusion. research is like dealing with a set of propositions in a debate or an argument adhering to the principles of logic. it is essential for others to accept the first and all subsequent propositions.Communities? A background section could address such matters. PSEB: The main objectives of research are: OBJECTIVE . finally. Once the problem statement is written. the third sentence will have to result in a paragraph or two that addresses how the data to be gathered will useful for public library service improvement and planning. In a sense. and we need to accept it before considering the next proposition. OBJECTIVES OF THE RESEARCH The company wants to know about the awareness of bank transaction sector. the remaining parts of the research study should flow from it.

Creation of digital map is a step towards building a web enabled GIS for transmission network to know physical identification of its assets.  VISION & VALUE Our vision: Our vision of the head office is to provide the accurate report about the bank transactions by verifying the MT’S of the bank ledger in the monitoring section of the head office PSPCL.The main objective of this Expression of interest (EOI) is to explore the technologies available in this field and to develop a suitable project/ tender document including detailed technical specification after studying the offer. To know about the future plans of people. efficiently and conveniently. building transparency in all our dealings. This we hope to achieve by: • • Understanding the needs of and offering them superior services. The state of art technology would also assist in taking up optimum route survey of future lines and maintaining an accurate map of the network. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders • • And above all. Leveraging technology to service customers quickly. .  To know the scope of as an investment opportunity and to know the priority of people while selecting different Saving Schemes.



Be able to recognize examples of different kinds of . • What is meant by data coding and why is it carried out.e. • Basic meaning of various terms used to characterize the mathematical attributes of different kinds of variables. • By publishing their data and the techniques they used to analyze and interpret that data. i. • Options for data cleaning – range checks. scientists give the community the opportunity to both review the data and use it in future research. • DATA ANALYSIS AND ITS INTERPRETATION • Need to edit data before serious analysis and to catch errors as soon as possible. dichotomous. • Scientists interpret data based on their background knowledge and experience. consistency checks – and what these can (and can not) accomplish.DATA ANALYSIS Data collection is the systematic recording of information. discrete. measurement. categorical. thus different scientists can interpret the same data in different ways. ratio. count. data interpretation involves explaining those patterns and trends.. nominal. interval. data analysis involves working to uncover patterns and trends in datasets. ordinal. continuous.

• What is meant by a “derived” variable and different types of derived variables. meta-analysis. confidence level. Type II error. and interpretation of multiple significance tests are all purely for your edification and enjoyment. Bayesian versus frequentist approaches. Computation of p-values. • • What is a confidence interval and how it can be interpreted.variables and advantages/disadvantages of treating them in different ways. power. asymptotic tests. I encourage a nondogmatic approach to statistics (caveat: I am not a “licensed” statistician!). as far as EPID 168 is concerned. z-tables. • Concepts of Type I error. 2-sided tests. Fisher’s exact test. since after all of the hard work and waiting they get the chance to find out the answers. significance level. 1-sided vs. not for examinations. statistical “power”. ___________________________________________________________ __________________________________ Data analysis and interpretation Epidemiologists often find data analysis the most enjoyable part of carrying out an epidemiologic study. and the relationship among these concepts and sample size. statistical precision. the meaning of the outcomes from such tests. intracluster correlation. Objectives of statistical hypothesis tests (“significance” tests). or sample size will not be asked for on exams. and how to interpret a pvalue. If the data do . In general. confidence intervals.

however. Analysis . from findings and questions from studies reported in the literature. a considerable amount of preparatory work must usually be carried out.major objectives 1. The analyst then turns to address specific questions from the study aims or hypotheses. attempting to collect this reward. So when the new investigator. compare the available study population with the target population) .not provide answers. to explore and gain a “feel” for the data. and from patterns suggested by the descriptive analyses. Describe the study population and its relationship to some presumed source (accounts for all in -scope potential subjects. finds him/herself alone with the dataset and no idea how to proceed. analysis and interpretation of the study should relate to the study objectives and research questions. the feeling may be one more of anxiety than of eager anticipation. though. Data do not. that presents yet another opportunity for creativity! So analyzing the data and interpreting the results are the “reward” for the work of collecting the data. They reveal what the analyst can detect. “speak for themselves”. As with most other aspects of a study. Evaluate and enhance data quality 2. Before analysis begins in earnest. One often-helpful strategy is to begin by imagining or even outlining the manuscript(s) to be written from the data. The usual analysis approach is to begin with descriptive analyses.

All data collection activities are monitored to ensure adherence to the data collection protocol and to prompt actions to minimize and resolve missing and questionable data. Monitoring procedures are instituted at the outset and maintained throughout the study. Estimate measures of frequency and extent (prevalence. the data collection plan. Evaluate impact or importance Preparatory work – Data editing In a well-executed study. nonresponse.3. there is often the need to “edit” data. Nevertheless. since the faster irregularities can be detected. including procedures. Before forms are keyed (unless the data are entered into the computer at the time of collection.g..g. the greater the likelihood that they can be resolved in a satisfactory manner and the sooner preventive measures can be instituted. Assess the degree of uncertainty from random noise (“chance”) 7. instruments. e. refusal. comparison groups) 4.. means. Estimate measures of strength of association or effect 6. Seek further insight into the relationships observed or not observed 9. both before and after they are computerized. . incidence. The first step is “manual” or “visual editing”. is designed and pretested to maximize accuracy. and attrition. Assess potential for bias (e. through CATI – computer-assisted telephone interviewing) the forms are reviewed to spot irregularities and problems that escaped notice or correction during monitoring. medians) 5. Control and examine effects of other relevant factors 8. and forms.

usually need to be coded. written comments from the participant or data collector. inconsistent or out of range responses) at this stage. if there are any.. Range checks compare each data item to the set of usual and permissible values for that variable. and other situations that arise. have numbers or letters corresponding to each response choice).. (Coding will be discussed in greater detail below.g.) It is possible to detect data problems (e. Even forms with only closed-end questions having precoded responses choices may require coding for such situations as unclear or ambiguous responses. Visual editing also provides the opportunity to get a sense for how well the forms were filled out and how often certain types of problems have arisen. Preparatory work – Data cleaning Once the data are computerized and verified (key-verified by double-keying or sight-verified) they are subjected to a series of computer checks to “clean” them. Range checks are used to: • Detect and correct invalid values • Note and investigate unusual values Note outliers (even if correct their presence may have a bearing on which statistical methods to use) • .Open-ended questions. multiple responses to a single item. Codes for keying may also be needed for closed-end questions unless the response choices are “precoded” (i.e. but these are often more systematically handled at or following the time of computerization.

the approach used to handle inconsistency can have a noticeable impact on estimates and can alter comparisons across groups. All types of data (e. For example. so this consistency check is “soft”.• Check reasonableness of distributions and also note their form.. 2000).. since that will also affect choice of statistical procedures Consistency checks Consistency checks examine each pair (occasionally more) of related data items in relation to the set of usual and permissible values for the variables as a pair. Consistency checks are used to: • Detect and correct impermissible combinations • Note and investigate unusual combinations • • Check consistency of denominators and “missing” and “not applicable” values (i.. laboratory tests) must be coded. College students are generally at least 18 years of age (though exceptions can occur. verify that skip patterns have been followed) Check reasonableness of joint distributions (e. males should not have had a hysterectomy. in scatterplots) In situations where there are a lot of inconsistent responses.g. Authors should describe the decision rules used to deal with inconsistency and how the procedures affect the results (Bauer and Johnson. not “hard”). questionnaires. Preparatory work – Data coding Data coding means translating information into values suitable for computer entry and statistical analysis.g. medical records.e. though in some cases the .

so that consistency can be achieved and the inevitable questions (“How did we deal with that situation?”) answered. attempting to represent the “essential” . Mathematically. The following Types of variables . with an eye towards their analysis. in principle. A continuous variable (sometimes called a “measurement variable”) can be used in answer to the question “how much”. and blood pressure can. but these can be regarded as points on a continuum. What information exists? 2. so that for any two allowable values there are other allowable values in between. of course. be represented by continuous variables and are frequently treated as such in statistical analysis. Analytic techniques depend upon variable types Variables can be classified in various ways. The objective is to create variables from information. In practice. A continuous variable takes on all values within its permissible range. the instruments used to measure these and other phenomena and the precision with which values are recorded allow only a finite number of values. What information is relevant? 3. a discrete Variables summarize and reduce data. height.levels or scales of measurement Constructs or factors being studied are represented by “variables”. How is it likely to be analyzed? It is important to document how coding was done and how issues were resolved. questions underlie coding decisions: 1. Variables (also sometimes called “factors”) have “values” or “levels”. Measurements such as weight.coding has been worked out in advance. information.

9 could all be used in place of 1.2. gender) or polytomous (more than two categories).g. events. 4. 2.g.5.. Identification – a variable that simply names each observation (e. If the values of a variable can be placed in order. or some other countable phenomenon. ethnicity). ABO blood group. with no inherent ordering. and the analyst’s judgment about interpretability.4. 3.g. for which the question “how many” is relevant (e.3). clinic number. 1.22. Nominal variables can be dichotomous (two categories.Examples are injury severity and socioeconomic status. Nominal – a categorization or classification. a study identifying number) and which is not used in statistical analysis.g.2... parity.69.g. 6. Discrete variables that can take any of a large number of values are often treated as if they were continuous. 6. number of siblings). Ordinal – a classification in which values can be ordered or ranked.. Types of discrete variables 1.g. 3.2. then whether the analyst elects to treat it as discrete and/or continuous depends on the variable’s distribution.variable can take only certain values between its maximum and minimum values. the requirements of available analytic procedures. since the coded values need only reflect the ranking they can be replaced by any others with the same relative ranking (e. Count – the number of entities. e. to substitute other numbers for the variable’s value . the set of all rational numbers is countable though unlimited in number).. even if there is no limit to the number of such values (e.5. the values or the variable are completely arbitrary and could be replaced by any others without affecting the results (e..

That is. . After either transformation. anxiety. especially if the range is large. Scale scores can also be multiplied by a constant. There is a non- arbitrary zero point. the scale can be shifted: 11-88 could be translated into 0-77 by subtracting 11.g. count variables are often treated as continuous.would change its meaning. so values of the scores have meaning only in relation to each other.g. with a mean of 40. but subject A’s score is no longer 1. a change of units) will distort the relationships of the values of a variable measured on the ratio scale. Psychological scales (e. subject A’s score is still twice as far from the mean as is subject B’s.. Types of continuous variables 1. Without loss of information. Ratio – both differences and ratios are meaningful. 2. but ratios of values are not. if the variable takes on the values 1188. Any transformation other than multiplying by a constant (e.5 times the mean score. But it is not meaningful to say that subject A’s score is “1. Interval – differences (intervals) between values are meaningful. The reason is that the zero point for the scale is arbitrary. so it is meaningful to characterize a value as “x” times the mean value. Kelvin or absolute temperature is a ratio scale measure.. In epidemiologic data analysis. Physiological parameters such as blood pressure or cholesterol are ratio measures.5 times the mean”. it is meaningful to state that subject A’s score of 60 is “twice as far from the mean” as subject B’s score of 50. depression) often have this level of measurement. An example from physics is temperature measured on the Fahrenheit or Celsius scale.

Variables created during coding attempt to faithfully reflect the original data (e.e. For example. Variable values are often collapsed into a small number of categories for some analyses and used in their original form for others. nominal with two levels) – case vs. It is necessary to ask such question as: “Is ‘more’ really more?” and “Are thresholds or discontinuities involved?” Again.Many variables of importance in epidemiology are dichotomous (i.g.. In general: • Simpler is better . the underlying reality (or. unexposed. For an apparently ordinal or continuous variable.g. the construct overweight is often represented by a variable derived from the values for height and weight. but it is also often necessary to create additional variables to represent constructs of interest. collapsing six possible values to a smaller number) and deriving compound variables (e. weight). exposed vs. Data reduction includes simplifying individual variables (e. our conceptual model of it) determines the approach to quantification. height.. Often these variables can be used directly for analysis. Preparatory work – Data reduction Data reduction seeks to reduce the number of variables for analysis by combining single variables into compound variables that better quantify the construct. rather. the phenomenon itself may not warrant treatment as such.noncase.. “socioeconomic status” derived from education and occupation).g.

and other nonlinearities • • • • • Categorize based on the nature of the phenomenon (e. Types of derived variables • Scales . a study of pregnancy rates will require a finer breakdown below 30 years and even below 20 years). Inspect detail before relying on summaries Verify accuracy of derived variables and recodes by examining cross tabulations between the original and derived variables. Cronbach’s alpha gives the . then the only differences in their values should be due to random errors of measurement... Take into account threshold effects. self-esteem) all of the items are intended as individual measures of the same construct. depression. If the items did indeed measure the same construct in the same way and were indeed answered in an identical manner. The scale score is usually the sum of the response values for the items.g. The purpose of deriving a scale score by having multiple items is to obtain a more reliable measure of the construct than is possible from a single item. a study of Down’s syndrome can collapse all age categories below 30 years.• Avoid extraneous detail Create additional variables. “I feel happy” in a depression scale) must be inverted. saturation phenomena. Scale reliability (internal consistency) is typically assessed by using Cronbach’s coefficient alpha. which can be thought of as the average of all of the inter-item correlations.g.In a pure scale (e.g. rather than destroy the original ones (never overwrite the raw data!).. though items with negative valence (e.

g. When the scale consists of separate subscales. were measured. internal consistency may be more relevant for the individual subscales than for the scale as a whole. • number of close friends). Examples of derived from several variables include socioeconomic status (e. “effective” . Values of 0. education. major depressive disorder. neighborhood).g. Here.g.An index consists of a group of items that are combined (usually summed) to give a measure of a multidimensional construct. each of the items measures a different aspect or dimension.80 or greater are considered adequate for a scale that will be used to analyze associations (if the scale is used as a clinical instrument for individual patients. types of partners. use Items may have different weights. e.A procedure that uses a set of criteria according to specific rules or considerations. of condoms. so that internal consistency measures like Cronbach’s alpha are either not indexes relevant or require a different interpretation.. income. between each item and the remaining items (item-remainder correlation). Psychometrics). anal intercourse). its alpha should be at least 0.90 – see Nunally’s textbook.proportion of the total variation of the scale scores that is not attributable to random error.. and among groups of items (factor analysis) are standard methods of analyzing item performance. Analyses of relationships between individual items (inter-item correlation or agreement). • Indexes . social support (e. marital status.. occupation. between each item and the total scale (item-scale correlation). depending upon their relative importance and the scale on which they Algorithms . number of close family members. sexual risk behavior (number of partners.

an analysis involving 10 variables. skewness. percentage above a cut-point Dispersion -standard deviation. measurement) Location . For one. quantiles. which can be confusing and tiresome to explain. • • • Look for relationships in data Look within important subgroups Note proportion of missing values Preparatory work – Missing values Missing data are a nuisance and can be a problem. analyses that involve multiple variables (e. could result in excluding as much as 50% of the dataset (if there is no overlap among the missing responses)! Moreover. missing responses mean that the denominators for many analyses differ. Do the patterns make sense? Are they believable? • Observe shape – symmetry vs.Mean median. Thus.g. ordinal. unless data are missing . Also. Preparatory work – Exploring the data Try to get a “feel” for the data – inspect the distribution of each variable. even if each has only 5% missing values.contraception (I have not seen this term used to designate a type of variable before. Examine bivariate scatterplots and cross classifications. discontinuities • Select summary statistics appropriate to the distribution and variable type (nominal. coefficient alpha.. but I am not aware of any other term for this concept). crosstabulations. regression models) generally exclude an entire observation if it is missing a value for any variable in the analysis (this method is called listwise deletion).

preventive fraction). prevalence) and extent (means. especially of the latter. Evaluation of hypotheses After the descriptive analyses comes evaluation of the study hypotheses. and impact (attributable fraction.completely at random (MCAR– equivalent to a pattern of missing data that would result from deleting data values throughout the dataset without any pattern or predilection whatever). survival time). other forms of bias. etc. to which we will now turn. follow-up time. Much of the field of statistics has grown up to deal with this aspect. One aspect of both descriptive analysis and hypothesis testing. potential alternative explanations for what has been observed. because certain subgroups will be underrepresented in the available data (a form of selection bias) Descriptive analyses Exploration of the data at some point becomes descriptive analysis. Concept of hypothesis testing (tests of significance) . association (differences and ratios). Here there will be a more formal evaluation of potential confounding. to examine and then to report measures of frequency (incidence. is the assessment of the likely influence of random variability (“chance”) on the data. then an analysis that makes no adjustment for the missing data will be biased. These measures will be computed for important subgroups and probably for the entire study population. if the study has identified any. Standardization or other adjustment procedures may be needed to take account of differences in age and other risk factor distributions.

incorrectly.Since we have a decision between two alternatives (H0 and HA) we can make two kinds of errors: Type I error: Erroneously reject H0 (i. the Type I error probability has received more attention and is referred to as the “significance level” of the test.. that data are not consistent with the model) Type II error: Erroneously fail to reject H0 (i. conclude.e. incorrectly. and “efficiency”) Traditionally. conclude. “power”. “precision”. . that data are consistent with the model) (The originator of these terms must have been more prosaic than the originators of the terms “significance”.e..

The inventory stocked less than the demand may lead to the business out of the market. This is probably true about all branches of knowledge and specially true for inventory management area.The inventory stocked in excess of demand may lead to drastic price cuts. With rather tight monetary market. along with the transmission and distribution system. the uninterrupted supply of electrical power adequately as and when required ensuring the quality.Analytical Study of Inventory Management In Punjab State Electricity Board* INVENTORIES ARE VIEWED by most of the business world as a large potential role and not as a measure of wealth as was prevalent in old days . There is a constant fear in the minds of businessmen because of uncertainty in the market situations. The material function in power Industry has a distinct importance as every power plant. Widening gulf between theory and practice has become remarkable phenomena in this age of science and technology. the practice is lagging far behind. so as to be saleable before it becomes worthless because of obsolescence. whether to stock or not to stock. is committed to provide the consumers at his premises. When the frontiers of knowledge are widening and the theory is developing at fast rate. optimisation of resources through proper inventory control becomes one of the major challenges for the material managers in every organization. The entire power system is one line process and failure of any vital component in the process results into partial or total outage of the Industry. Problems Studied . reliability and economy of supply at the same time with emphasis on overall economy. Inventories play essential and pervasive role in the power sector.

Treatment given to wastages. spoilage and dead inventory by the stores were taken. New Inventory control technique applied to improve the efficiency of material management department and to reduce cost of inventory. Inventories held in the stores. 4. For this purpose. detailed research has been conducted as follows : 1. were studied. Existing purchase system of the Board was observed. Detail organization structure of stores of Controller of Stores Deptt. 5. issuing procedures. Existing system of inventory control adopted by the board was studied. record relating to purchases were analysed. techniques of stores control adopted by the board were analysed. purchase policies. In which organization structure of procurement deptt.. . 3. 2..In the study. efforts have been made to conduct a detailed analysis of inventory management functions in the PSEB. their receiving.

Then introduction of PSEB is explained. Moreover the boards’ thermal power plant. . Major Findings of the Research The study has been divided in 7 chapters. An attempt has been made to summarise and present the theories and important concepts of inventory management. This helped together actual prevailing conditions of purchasing. Second chapter is titled as ‘Literary Survey of Inventory Management Techniques’. level employees of the material management deptt. After explaining the need and importance of inventory management techniques. was also visited many times to study the inventory management systems in Ropar thermal power plant.Research Methodology The relevant data and information have been collected from primary as well as from secondary sources. of the board. some of the inventory management techniques have been explained. First chapter is related with ‘Introduction’.E. of the P. For collection of information detailed questionnaires pertaining to raw-material management general and purchase control as well as stores control specifically were drafted and got filled up from all the senior personnel and some from supdt.S. In this chapter. overall position of electricity in India has been mentioned. maintaining and controlling of materials/components.B. Direct interviews were also conducted from the concerned deptt..

Some of these are. are mentioned like receipts. fixation of delivery schedules etc. issues. purchasing records. suppliers performance and Rating. preparation of records.Name of the third chapter is ‘Procurement System in PSEB’. purchase research and purchase ethics. transfer.414 Finance India Evaluation of performance of Purchase activities. Then store procedures followed in the stores of controller of stores deptt. security measures adopted in the stores. there are other many activities which are to be performed in purchase deptt. reporting system adopted by the stores. the procurement system followed by the board has been explained. damages etc. receipt and issue of materials. In the beginning of the chapter. Theoretical concepts of purchasing have been discussed in the beginning of the chapter. Then. 35 questions relating to purchase activities were asked. A seven point scale was used for the purpose of evaluation of store activities. if performed. maintenance of material. then not adequately in the CPO. training to the employees. theoretical concepts of store keeping have been discussed. Buyer seller Relations (Suppliers Goodwill). It is concluded that store employees are stressing mainly on routine/ordinary types of activities in their respective stores like. inter-store transfer. a detailed questionnaire was prepared and circulated among the employees of Central Purchase Organization (CPO). CPO has adopted standardised purchase procedure and the employees of CPO are following these procedures like making comparative statements. . For the purpose of analyzing purchase activities. Name of the Fourth Chapter is ‘Stores and Stores Control in PSEB’. preparing purchase order and forwarding it to suppliers. However. Purchase Budgeting. persuing legal matters with supplier in the court. But these are not performed. preparing routine reports and records including shortages.

Efforts are also made to calculate storage cost of inventory. standardization. store wise replenishment of stock etc. So these techniques are suggested for better control in the stores of COS deptt. 1 crore approximately. maintaining various levels of inventories. There are so many store control techniques which can be used for managing stores efficiently. replenishment of stocks in stores. Here efforts are made to apply some more Inventory control techniques for efficient management of purchase and store activities in material management department.Inventory Turnover Ratio of 25 Major items of COS deptt were calculated for the years of 1988-89. 1989-90 and 1990-91 respectively.Whereas more activities are required for running stores efficiently e. Only store verification activities are done seriously by store employees and stock verifiers appointed by the department of Material Service. ABC analysis. By comparing different years Inventory turnover ratio of each item. Mechanical handling is done only for bulky material. Some of these are. Fifth chapter is framed for analyzing inventory management techniques in PSEB. Total wages paid to these employees are Rs. There are 597 number of work charge/Daily wage workers for material handling in the stores.g. cost reduction programmes. Some of these activities we are discussing here.6% approximately. inventory turnover ratio. measuring efficiency of stores. Efforts should be made to handle the materials mechanically so that cost of handling can be reduced. it is concluded that the stock level of each item is not maintained properly in different years by COS deptt. Inventory Turnover Ratio:. care has not been taken properly on above mentioned activities in store department. training to the store employees. Is coming 34. making in the stores. The carrying cost of COS deptt. levels of inventory. Major material handling activities are performed manually in controller of store Department (COS). Abstract of Doctoral Dissertations 415 . efficient material handling.

So details’ regarding procurement.Economic Order Quantity: .00 (approx) by applying EOQ technique. This chapter has started with some salient features of RTP.00 and carrying cost is 34. & C category. 8. Efforts are made to classify store items into A. issue and handling of coal and oils in the RTP has been written. The sixth chapter is named as ‘Inventory Management in Thermal Power Plant’ in the study. Different problems faced by the RTP relating to coal have been highlighted. Store of RTP. procurement system used in the RTP was studied. material handling systems followed and store control techniques used in the stores were discussed. is coming Rs. Various records prepared by the RTP relating to these inputs has also been mentioned in the chapter. EOQ of 25 major items. it was analyzed that only few items are coming under A & B category.(EOQ) The CPO is procuring items worth Rs. As we know coal and oils are the main inputs of the Thermal power plants.53.6%. activities performed in stores.900.36. in which.B. After that. Order cost per order calculated is coming Rs. 1. Chapter seventh concludes our study.00. have been calculated. So strict policies can be developed and implemented for controlling A & B category of items. 5.000. In the study.94. 14 items out of 1374 are in A category.00 (approx). Then the organization structure of entire plant has been explained. The employees of the CPO are procuring these items on the basis of their past experience. This chapter integrates the finding and recommendations of the study . Ropar were visited and store activities were analyzed. 56 are in B category. There will be saving of more than Rs.4 ‘Crores’ in a year if items are purchased through EOQ system. 100 crores every year.00. different policies are developed for A. Whereas total inventory cost as per PSEB’s purchase procedure for 25 major items. Ropar. maintenance. Ropar Thermal Power Plant is covered under the study. Total inventory cost of 25 major items of COS is coming Rs.B & C category of items respectively so that the store items can be controlled properly.

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Delhi. “Marketing Management” (Prentice Hall India. 1999) • Kotler.com . Lesis Publishers. Boca Raton.. Biostatistics for epidemiologists.N. Philip.BIBLIOGRAPHY Books • Mishra..in.com/quicksearch director-opac@psebindia. Anders. June 16.in www. 2004) Magazines and Journal • • • The Charted Accountant Journal.. Web sites • • • • www.Chand & Co. Florida.tendertiger. “Insurance Principles and Practices” (S.org Connect. 1993. 2006 Financial express Ahlbom.pspcl. M. 214 pp.


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