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Project Report
On
MATERIAL MANAGEMENT AT
HOSPET STEELS LTD
Certificate
DECLARATION
ACKNOWLEDGEMENT
CHAPTER I
RATIONALE FOR THE STUDY
INTRODUCTION ON PRODUCTION
CHAPTER III
COMPANY PROFILE
ORIGIN AND DEVELOPMENT OF HOSPET STEELS LTD
leading firms i.e. Mukund Ltd- Bombay and Kalyani Ltd Pune.
set up by M/S Praxair India Ltd and the power is being taken from
Kalyani shares - 42 %
Mukund Shares - 58 %
Organization structure
CEO
Vice President
General Manager
Executives
Engineers
Junior Engineers
Staff
Technicians
INSTITUTE OF MANAGEMENT STUDIES Hubli. 12
Project Report on Material Management at HSL
PRODUCT PROFILE
Spring steels.
Production department
technicians or operations.
COMMERCIAL DEPARTMENT
looks into the purchase of raw material and quality assurance. This
S.K. Vakkalad.
Release of enquiries
Receipt of quotations
Receipt of material
Store functions
Gate entry.
Receipt of material
Marketing department
finished goods.
Finance department
maintains the data of four different companies – KFIL, ML, DSL and
A
HSL they collect the information form different areas of organization
Materials
through network-spread 2 km around
In line sample Yesthe company. The
Stocked ininformation
inspection slow cooling
or report to the management is MIS. Box
Maintenance department
Is slow cooling
required?
The maintenance department is one of the most impartment
No
Materials
departments. handledlined
It is directly to with the production department
finishing
without this, thedepartment
production cannot function properly.
INSTITUTE OF Stocking
MANAGEMENT STUDIES Hubli. 17
Dispatch
Project Report on Material Management at HSL
MANUFACTURING PROCESS:
Production:
different stages.
Customers needs.
Ferrous Ltd owns it. The general manager of this division is Mr. R.
Sampath Kumar.
Coke
Limestone Fluxes
Dolomite
Manganese ore
BHQ
Here the iron ore, coke and fluxes are brought to the furnace
through conveyer belts. There they have separate bunkers and are
monoxide which acts as a reducing agent and covert iron ore to pig
iron. The coke burns at 12000, cold water is needed for circulation
to maintain the temperature the impurities in iron ore and coke are
fluxed with limestone and dolomite to form slag. Both the hot metal
and slag. Both the hot metal and slag is collected in the hearth and
tapped put from the furnace. The hot metal collected in cradles
tones per day. The total output per day is 1000 metric tones.
Products of MBF:
PIG IRON
SLAG
M.O.Gupta.
The Pig Iron from MBF is the raw materials used here. The
A mixture of 20% scrap and 80% hot metal is poured into the
The hot metal is poured into the ladle from the EOF and is
brought of LRF. After the metal is poured into the ladle furnace, the
type tundish from top and the solid bass of metal cones come out
The molten metal from the ladle is poured into tundish. Then
Billet caster
160 X 160 mm
Bloom caster
Caster: 240 X 280 mm, 160 mm, 200 mm, and 220 mm.
the steel is moulded into different shapes and sizes. After rolling,
the products will be transferred to hot saw for cutting into length
Spring steels
Major suppliers
Major competitors
Coke - china
before
tax (PBT)
Provision 13,75,000 27,50,000 70,73,000
s for
taxation
Profits 1,40,23,849 5,00,72,199 8,01,97,302
after tax
(PAT)
Current 2.89 2.43 2.39
ratio
Interpretation:
this trend is very good from the point of view of the company.
villages.
Chapter IV
INTRODUCTION:
groups of buyers.
(a) Consumers
(b) Middlemen
(d) Manufacturers
products.
Definition:
Meaning:
Importance of purchasing:
goods.
A C
D
E
F
G
H
foreign exchange.
industrial projects.
Heavy competition.
importance of purchasing.
Objectives of purchases:
Purchasing chain:
1. Recognition of need
2. Description of need.
has to be developed.
RECOGNITION OF NEED
of materials.
purchase requests.
Description of requirement
Selection of sources:
After the need has recognized, the purchasing
department proceeds to select a source of supply. In most of
the cases, the purchase department would know from where
the material could be bought. The purchasing department
often maintains a regular list of suppliers it becomes necessary
to advertise in the press inviting tenders from suppliers.
ways for standard items, vendor’s catalogues and price list are
available and for such items, the buyer needs to check current
third method.
Order acknowledgement
Follow up:
care.
payment.
Purchase function
available in and around factory area. Iron ore is the main raw
INDENT SUPPLIER
IDENTIFICATION
RECEIPT OF
ENQUIRY QUOTATION/OFFER
QUANTITY MAINTENANCE OF
INSPECTION RECORDS
PAYMENT OF INVOICE
Department:
No
Date :
Hospet steels
Ginibera : indent
Supplier identification:
price trends.
material required.
Dear Sir,
Yours faithfully
For HOSPET STEEL LTD
( )
PURCHASE MANAGER
When the company has sent the enquiry letter to the supplier,
Basic Price
Discount
Total
Packing & Forwarding
Excise Duty
Kist’s
Insurance
Any Levies/ Entry Tax
Freight
Other Charges
Gross Landed Cost
Less Exise Rebate
Net Landed Cost
Less Cost Of Cash Basis
Delivery Schedule
Terms Of Payment
order.
as under:
department.
PIN CODE
PLEASE SUPPLY THE GOODS IN ACCORDANCE WITH THE TERMS & CONDITIONS STIPULATED IN THIS ORDER
SHEET NO.
PLEASE ISSUE ORDER ACCEPTANCE CONFIRMING PRICE SCHDULE & OTHER TERMS & CONDITIONS OF THIS
PURCHASE ORDER
Ltd
specifications.
account.
in writing.
company.
Receipt of materials:
Fax no._______
Phone _______
Date _______
Payment of invoice
paid as per the agreed terms, the quality inform to the order
Maintenance of records
purchases are repeat order & hence the post records serve as
a good source for further actions. They are very useful for
source of supply.
Enclosures:
A) PO/LOI No.:
Date_____________
B) Invoice No/Performa invoice No.
Date_____________
C) Other administrative/ pre operative items
O As advance O As payment
Bank Guarantee required Yes/ No
Enclosed__________
Special Instructions:
__________ __________________
Requisitioned Sanctioning Authority
MUKUND LIMITED
HOSPET DIVISION
department
1.1 Introduction
department
responsibilities
STORAGE
with a view to, Saving them from all kinds of damages and
losses and
received.
a) Centralized stores.
b) Decentralized stores.
free low of materials with minimum costs and does not hinder
STORES LAYOUT
any part of the factory, and also as near to the road, railway
DISADVANTAGES:-
factory
central store.
SUB-DIVISION OF STORES
mechanized accounting.
codification:
CODIFICATION SYSTEMS
be kept in mind.
1. Simplicity.
2. Flexibility.
3. Conciseness, definiteness
4. Clarity and
5. Minimum expenditure
1. Alphabetical
2. Numerical
ALPHABETICAL SYSTEM:
Numerical system
Example:-
Numerical codification
Replishment of stock
the production departments. The inflow and the out flow of the
honoured in future.
purchased and stocked neither less nor more, the stock keeper
technique.
techniques.
1. Maximum level
2. Minimum level
3. Re-order level
4. Danger level.
1. Maximum Level:
b) Availability of funds.
material waste.
following formula,
2. Minimum level:
account.
a) Re-Order level
Formula:
reorder period]
3. Re-Ordering Level/Point: -
reorder level.
Formula:
4. Danger level:
and stage where immediate steps are taken for getting stock
production stopped.
order size that minimizes annual order costs and holding costs.
simple formula.
EOQ = 2AS
one lot.
year.
period.
5. Lead-time is certain.
Stores ledger
initiated.
under.
Company name
Stores Ledger
statements.
considered.
into account.
considered.
industry.
a. Standard price
b. Inflated price
c. Replacement price.
specific job and for which separate cost records have been
identifiable.
made.
medium value and low value. The first 10% are called A items,
and next 20% are B items and the remaining 70% are C
items. The ABC classification has its basis on proved “ vital few
and trivial many” idea. ‘A’ items are vital few. ‘B’ items are
rupee investment and the bottom 10% is the lest shown in the
following table.
ABC analysis
value of
items
A (High 40 10 70000 70 1750
value)
B 80 20 20000 20 250
(Medium
value)
C ( low 280 70 10000 10 360
value)
400 100 100000 100 2560
used: -
usefully applied when the stress is laid upon the relative usage
HSL
1.1 Introduction
from inspection.
FUNCTIONS OF STORES
Preservation of
goods
Codification
system
Issue of materials
when required
Maintenance of
records
methods.
Issue of materials
materials is possible.
STORES LAYOUT
any part of the factory and also near to road and railway
siding.
returned by process.
systems.
code number.
mechanized accounting.
Codification system
kept in mind.
a) Simplicity
b) Flexibility
c) Conciseness (definiteness)
d) Clarity
e) Minimum expenditure
Replenishment of stock: -
production departments.
further.
techniques.
Ltd.) are: -
1) Maximum level
2) Minimum level
3) Re-order level
Consumables
sealer
ii) Sedset black paints 040 500 200 Liters
iii) Gray paints 040 500 200 Liters
iv) Zinc chromite green 40 500 200 Liters
v) Thinner 20 1500 500 Liters
5 Resin coated sand 01 30 10 Liters
6 Sulphur 50 1000 500 Tones
7 Tin metal 10 300 100 Kgs
8 Mold wash 0.02 03 10 Kgs
9 Bentomite 08 250 150 Tones
10 Coat dust 04 30 20 Tones
List of consumables:
bricks
6 High speed 30 05 09 Liters
diesel
gem
9 Red, mati: SS 12 06 06 Kgs
304
10 M.S. barrel 30 20 25 Number
Nipple
11 Ball bearing 06 04 05 Number
Stores Record
Bin card
the bin card is kept showing all the details of receipts and
issues.
Bin card
stores
ledger
Stores ledger
statements
deferent dates.
adopted.
Chapter 5.
RESEARCH METHODOLOGY
Methodology of the study refers to the methods used to
collect the required data for project work. The research is
exploratory in nature. The data required has been collected
from the following.
Primary Sources:
Those data which are collected at first hand by researcher
especially for the purpose of the study. The following point is
used to consider for collecting primary data.
1. Discussions with the management
2. Interviews with the concerned officer
Secondary sources:
Any data which has been gathered earlier for some other
purpose are secondary data in the hand of researcher. The
following points are used to consider for collecting secondary
data.
1. Records of the company: This helped me to get details,
regarding the history of the company.
2. Library Research.
3. A number of books on international business were
referred to collect theoretical back ground relating to
material management.
FINDINGS
SUGGESTIONS
be verified frequently
coke etc.
CHAPTER 8.
LIMITATIONS
CHAPTER 9
EXPECTED CONTRIBUTION FROM THE
STUDY
Material occupies a significant place in an industry
labor.
they place the order. HSL has very good relationship with all
their suppliers
and prepare (GRN) goods received note and place the material
PRODUSTION PROCESS
IRON ORE
IRON
PROCESSER BLAST FURNACE
LD 1
STEEL PROCESSER
LD 2
OUT PUT
Bibliography
www.google.com
www.sal.com
www.hospetsteels.com
PIN CODE
PLEASE SUPPLY THE GOODS IN ACCORDANCE WITH THE TERMS & CONDITIONS STIPULATED IN THIS ORDER
SHEET NO.
PLEASE ISSUE ORDER ACCEPTANCE CONFIRMING PRICE SCHDULE & OTHER TERMS & CONDITIONS OF THIS
PURCHASE ORDER