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Project Report Submitted to Dept of M.B.A. Osmania University, Hyderabad, A.P. In partial fulfillment of the requirements for the award of
By
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DECLARATION
I here by declare that the analysis and interpretation of the data and true and firm to the best of my knowledge. The project report entitled INVENTORY MANAGEMENT IN MAHINDRA & MAHINDRA is a study report has been submitted towards the partial fulfillment of the requirement for the award of MASTER OF COMMERCE from Osmania University. Any details pertained of study or the details of this project are not to be used may other from or not to the submitted any institution except to the M & M Ltd., The organization where I did the project and to the college from I am pursing the cource.
By
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ACKNOWLEDGEMENT
I wish to express my appreciation to the various persons that have directly or indirectly helped me in completing my project. I am very much thankful to Mr. P.V.RAO, Vivekananda school of PG studies. College, Osmania University, Hyderabad for permitting me to pursue my project in M & M Ltd., I am grateful to Mrs. T.V.S.K. PRASAD Faculty Finance, for providing her valuable inputs and sharing with the students her vast and practical experiences the field of finance. We are indeed lucky to have such as experienced and healthful person as over faculty. I am grateful to faculty members for their valuable guidance. I wish to express my sincere thanks to Mr. K.P.N. RAO, D.G.M. HR & IR M & M Ltd., kondapur. For giving me a good opportunity for doing project in their organization. I am also thankful to Mr. A. KAMESHWAR RAO, D.G.M. Accounts for his valuable guidance. I extended my sincere thanks to Mr. PATTHABHI RAMA CHARYULU, (Accounts) Mr. SUNIL CHAND, (Supply Module) Mr. SAI PRASAD, (R & D) and Mr. B. SRIKANTH, (HR) for their kind co-operation. I thank all other members of the organization for having given me for their timely support and helped me to successfully complete of my project report.
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CONTENTS
Page. No
: : : : :
INTRODUCTION COMPANY PROFILE THEORATICAL PERSPECTIVE STORES DEPARTMENT TOOLS AND TECHNIQIUES OF INVENTORY MANAGEMENT CONCLUSION AND RECOMMENDATIONS BIBILIOGRAPHY
CHAPTER 6
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CHAPTER 7
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CHAPTER 1
INTRODUCTION
MEANING AND NATURE OF INVENTORY INVENTORY CONTROL OBJECTIVES OF INVENTORY CONTROL NEED FOR INVENTORY MANAGEMENT OBJECTIVE OF THE STUDY METHODOLOGY
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INVENTORY CONTORL
Inventory control is the system devised an adopted for controlling investments in inventory. It involves inventory planning and decision making with regard to the quantity and time of purchase, fixation of stock levels, maintenance of stock records and continuous stock taking.
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METHODOLOGY
To attain the objective of studying the inventory of M & M Ltd. The information has been collected in two ways: 1. 2. Primary data Secondary data
Primary Data :
In Primary data the analysis of purchasing procedure, inventory data, inventory turn over ratio, stock levels, ABC analysis, Twobin system, JIT has made possible by the discussions with various administrative executives and other concerned people of M & M Ltd.
Secondary Data :
The Secondary data has been collected from annual reports of organization, internet (www.mahindraworld.com) and books.
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The topic titled A STUDY ON INVENTORY MANAGEMENT is conducted in Mahindra&Mahindra Ltd. The scope of the study is limited to inventory management and period is limited to five financial years of the company. The analysis was conducted from 2004-2005 to 2008-2009.The tools used for are ratio analysis. The trend analysis is for sales and inventory is conducted. The study is based on the inventory data available from financial statements and internal records of the company and primary data collected through informal interview with the company officials.
LIMITATIONS:
Since the study is based on the inventory management i.e. obtained from the companys finance and production department, the limitations of the inventory management shall be equally applicable. The study is conducted within short period thus it may not be as detailed & fully fledged. The study is conducted with the data available and analysis was made according to it. Lack of additional informations from the company due to confidential matters.
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COMPANY PROFILE
UNIT SCENARIO: The MAHINDARA & MAHINDRA COMPANY is located 110 Kilometer from the State capital of Hyderabad in AP at Zaheerabad it has an area of 350 hectors land including all facilities. In July 1983 HYDERABAD ALLWYN LIMITED (HAL) A State Public Sector undertaking of A.P. Government entered in to a technical and financial assistance agreement with Nissan Motor Company (NMC) Limited of Japan for manufacturing of new generation of light commercial vehicles (LCVS) in India. At the same time the state government was facing a several financial crisis and both the financial and industrial development corporation were facing massive cuts in government finding therefore in order to cover the closing down of units, the state government in difference to the State Industrial Policy decided to sell of Allwyn Nissan Ltd. (ANL) the capable of business houses, in this case preferably an established automobile company. After that an intensive negotiation MAHINDRA & MAHINDRA LTD. The countries leading manufacturing of JEEPS & TRACTORS entered into a memorandum of understanding with H.A.L. on 10th June 1988 and agreed to acquire 26% of share capital in ANL and thereafter take control of the companies management with this transfer of share and management, the joint venture between H.A.L. and NISSAN motor company was terminated and a fresh joint venture agreement was entered into 7th November 1988 by M & M Ltd. With NMC.
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The name of the company was changed to MAHINDRA ALLWYN NISSAN LTD., , M & M Ltd. Finally took entire control of the operation of the plant on 1992.
HISTORY
Mr. J.C. MAHINDRA & Mr. K.C. MAHINDRA established the company in 1945 and named as (MAHINDRA MOHEMMED. LIMITED). Mr. MOHEMMED. Name was included in the name of company as recognition of his enormous help for the establishment of the company. The company renamed as MAHINDRA & MAHINDRA LTD., in 13th Jan 1948. upto Jan 1955 it was continued as private company which covered under the company act 1913. It has become Public Limited Company on 15 th Jan 1955 and shares were listed in BSE in 1956. It was initially formed to manufacture the utility vehicles to Indian people and it was initially assembling and importing WILLY OVER LAND CORPORATION the M & M Ltd. Has started manufacture of utility vehicles firstly the WILLS JEEP in 1954 and later in 1965 it has concentrated on manufacturing the light commercial vehicles by producing Successors. In 1963 export of vehicles started and the company started to export the spare part to YOGOSLAVIA, export also made to Celyon Singapoor, Philippines and Indonesia. In 1995 cab king DI 3150 were introduced and classic vehicles were launched in 1997 Voyager was launched at Zaheerabad Plant in 1998. Complete localization of Cab King model at Zaheerabad.
BOARD OF DIRECTORS
The company is managed by the vice-chairman and managing director and the three executive directors (One for executive directors up to 24th Jan 05) of the company. The Board review and approves strategy and oversees the action result of management to ensure that the long term objectives of enhancing state holder value are met. The company presents the thirteen directors the vice chairman and managing director and the three executive directors and whole time directors the chairman who is a nonexecutive chairman and the vice-chairman and managing director through professional - 14 -
directors in their individual capacities, belong to the companys promoter group. UTI has one nominee director as the board. The remaining eight non-executive directors (Including the nominee director) are independent directors and professionals with expertise and experience in general corporate management finance banking and other allied fields.
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Directors : Non ExecutiveMr. Keshub Mahindra (Chairman) Mr. Deepak S Parekh Mr. N.B. Godrej Mr. M.M. Murugappa Mr. V.K. Chanana (Nominee of UTI) Mr. Narayana Vaghu Mr. A.S. Ganguly Mr. R.K. Kulkarni Mr. Anupam Puri
Executives :
Mr. Anand G. Mahindra (Vice-Chairman & Managing Director) Mr. Bharath Doshi (Executive Director) Mr. Alan E Durante (Executive Director) Mr. A.K. Nanda (Executive Director and Secretary)
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PRODUCT DETAILS
MAHINDRA & MAHINDRA has modern facility at Zaheerabad, near Hyderabad where some of its important products are : 1. Mahindra Cab King 576 2. Mahindra FJ 470 DS4 High Roof Mini Bus 3. Mahindra DI 3200 4. Mahindra FJ Mini Bus 5. Mahindra Tourister 6. Mahindra Cab King 576DI 7. Mahindra Champion 8. Mahindra Champion Alfa 9. Mahindra Champion DX 10. Mahindra Load King DI 11. Mahindra Load King Super 12. Mahidnra Martial 2000 Delux 13. Mahindra Martial DX Royal
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DEPARTMENT OF FINANCE
G.GOPAL W-6
ASIT W-6
K. NAGESH W-6
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FUNCTIONAL PROFILE
The Mahindra & Mahindra Ltd., is headed by General Manager (Operations) who is assisted by Deputy General Managers from product department, quality assurance, finance department, PHRD Department, Supply Module Department, The General Manager (Operations) is also assisted by Senior Managers from Service Department, Administrative Department, Vehicle Engineering.
STORES
ENGINE SHOP
FRAME SHOP
AXLE SHOP
BODY SHOP
TRIM SHOP
PAINT SHOP
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DEPARTMENTALISATION
In Mahindra & Mahindra Ltd., the departmentalization is divided into : I. II. Direct Department. Indirect Department.
Director Department :
The department which directly involves in the production process comes under this category. The core departments are as follows : Production Planning & Control Department. Vehicle Engineering Department (VED). Paint Shop.
Indirect Departments :
The departments which are not directly involves in the production process and gives more assistance come under this category. The core departments are as follows :
Administrative Department. Finance Department. Personnel and HRD Department. Service Center. Material Control Department of ancillary development department. Vehicle Engineering Department. Industrial Engineering Department. Maintenance Stores Department.
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Introduction
Material Control
1) 2) 3) 4) Definition of Material Control Objectives of Material Control Deference between Materials Control and Inventory Control Material Purchasing and Purchasing Procedure.
INTRODUCTION
The Primary Objective of cost accounting is cost control. This is achieved by exercising effective control over element of cost of the three elements of costs, i.e., material cost, wage cost and expenses, direct material cost is the largest single item of expenditure and substantial proportion of the costs of an organization. The term materials includes physical commodities used to make the final end product. The raw materials and supplies are equivalent to cash and they make up and important part of cost of manufacturing in many cases.
MATERIAL CONTROL
Material Control refers to managerial functions which are directed to ensure that required quantity and quality of material is provided at the proper time with the minimum amount of capital. Material Control is effected by co-ordination and control activities related to Related to Material Planning. Related to Material Sourcing. Related to Material Purchasing. Related to Stores and Material Handling.
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Other than these two objectives the other objectives are as follows : 1. 2. 3. 4. 5. 6. To effect purchases of materials of the right quantity consistent with the standards prescribed in respect of the finished products. To make available assured supply of materials so as to keep the cycle of production going without any interruption. To Procure materials on the most favorable terms with a due to effect maximum economy in the cost of buying. To ensure effective utilization of materials. To prevent over stocking of materials and consequent locking up of working capital. To prevent losses during up of storage of materials. - 23 -
Every Enterprise needs inventory for smooth working activities. Inventory serves as a link between production and distribution process of any organization. Generally a time lag between the recognition of a need and its fulfillment. The greater the time lag the higher the requirement for inventory. The fluctuations in demand and supply of goods also necessitate the need for inventory. In large companies inventory plays a most significant part of the current assets. The average business has about 15-30% of total inventories in total assets. The main purposes of inventory management is to ensure availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. A systemized inventory management will determine a. b. c. d. e. What to purchase When to purchase How to purchase Size of purchase and From where to purchase (Vendors) - 24 -
PURCHASE PROCEDURE
Purchasing procedure start with the initiation of purchase requisitions and ends with the receipt of materials in the stores.
CENTERIZED PURCHASING
It is most important and relevant to large organizations operating deferent plants may or may not be located at different places. For a single place organization decentralization might be feasible on a very limited place. But where as M & M Ltd., is a multiple plants operating organization. In Mahindra and Mahindra Centralized purchasing procedure is following to purchase of materials. Centralized purchasing avoids duplications of efforts and working at cross purpose from one plant to another. Centralized purchasing permits consolidation of order of materials commonly used for two or more plants. The ultimately results in greater buying power, favorable contracts and trade agreements. Easier to maintain the quality of purchased parts / items through centralized testing and inspection. It is also possible to conduct testing and inspection facilities. Centralized purchasing permits to avail facilities like quantity discounts and cash discounts thus its helps to reduce cost. It is beneficial to vendor also in case the size of order constituted major proportion of his total production capacity. - 25 -
SL. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9.
PROCESS MATERIAL PROCUREMENT PROCESS TRANSPORT BILL PASSING VENDOR AIDED MATERIAL RECEIVED AND DISPATCHED VENDOR AIDED RECONCILIATION PROCESS REJECTION PRE-EN PROCESS NON MOVING IDENTIFICATION AND DISPOSAL STATIONARY PURCHASING MANAGEMENT INFORMATION SYSTEM LOGISTICS
SUB ACTIVITY Ordering Execution Closing SAP Bill Entering Bill Passing SAP Material Transfer Document Entering SAP Reconciliation SAP Vendor Aid Material Transfer Debit Receiving Document Security Meetings and Closures Identification through Non moving EN finalized and disposal approve from finance and dispatch Identifying quotation comparison information record and P.O. Information gather compilation schedule updation Material collection and dispatch
In M & M Ltd., the materials as purchased on monthly basis from the various vendors. Schedule made on monthly basis, for every month the suppliers list is prepared and purchase the require quantity of materials from the selected vendors. In further purchasing procedure process, i.e., for next month material management department look after previous month performance of vendors the performance like, time of delivery, quantity discounts, term of payment, mode of delivery, quantity of materials and good will of the suppliers in the market. On the basis of these factors vendors list is prepared VENDORS (OR) STORES SUPPLIERS OF M & M - ZHB (MARCH 2006) - 26 -
SL. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. 16. 17. 18. 19. 20.
NAME OF VENDOR M.G. AUTOMATIVES PVT. LTD. MUNGI BROTHERS ALF ENGINEERING COMPANY TATA IRON AND STEEL COMPANY SURENDERA FORGINGS PVT. LTD. MAHINDRA INTER TRADE LTD. GKN DRIVE LINE (INDIA) LTD. M.R.F. LTD. BREAKS INDIA LTD. LUCAS TVS LTD. RANE (MADRAS) LTD. WHEELS INDIA LTD. PUNE DIVISION. TATA TOYO RADIOTORS LTD. SPICER INDIA LTD. FAIR FIELD ATLAS LTD. APPOLLO TYRES GREAVES COTTON LTD. GURUNANAK AUTO ENTERPRICE LTD. BHUSHAN STEEL AND STRIPS LTD. MAKE SPIRING PVT. LTD.
PLACE ZAHEERABAD ZAHEERABAD ZAHEERABAD MUMBAI MUMBAI MUMBAI DELHI CHENNAI CHENNAI CHENNAI CHENNAI PUNE PUNE PUNE KOLHAPUR WAJODIA DIST. RANIPET GORAYA SAHIBABAD THANE.
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When the vendors list is prepared for a particular month purchase order placed before the vendor for purchasing of the materials. After the purchase of the supplies from the different vendors inventory is checked, the damaged or spoiled materials segregated vendors vise from their the materials are packed, through transport the rejected materials sent back to the respective vendors. Other than the rejected materials are kept in the stores 1, 2, 3 ------- on the basis of classification of materials. From the stores department stores are sent to the production plant, in production plant the raw materials are converted into finished products, the produced finished products dispatched from the organization to the market.
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STORES DEPARTMENT
Efficient store-keeping and inventory control in dispensable to the control of material cost. Goods are received into the stores after inspection and they are held and issued to production as and when required. The store department rendering service departments and the accounts departments.
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CLASSIFICATION OF INVENTORY.
Classification of inventory is of two kinds : a. Made to stock b. Made to order In M & M Ltd., made to stock procedure is following for the classification of inventory.
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Under the ABC analysis M & M using a special concept is XYZ analysis where ABC represents The value of materials XYZ represents The consumption of materials
XYZ CLASSIFICATIONS
X (Runner Model) :Y (Repeater Model) :Z (Stranger Model) :Which is presently manufacturing. It is used in the manufacturing of vehicles. Which are consumed less.
AX ITEMS Daily Consumption AY ITEMS Time taken for 2 to 3 days for consumption AZ ITEMS By taking as per order. - 32 -
ABC analysis helps to concentrate more efforts on A since greatest monetary advantages will come by controlling these items. A category materials. An attention should be paid in estimation requirements, purchasing, maintaining safety stocks and properly storing of These items are kept under a constant review so that a substantial material cost may be controlled. The control of C items may be relaxed and these stocks may be purchased for the year. A little more attention should be given towards B category items and their purchased should be understood quarterly of half yearly intervals. M & M following classification of inventory in ABC, XYZ analysis to maintain a proper stock level according to the flow of the day to day inventory in the organization. By giving course to the ABC classified inventory it is easy to identify the inventory from the stores department. It helps to save the time to choose from the stores department, in selection of the vendors, material holding cost, estimation in expenditure of working capital, determining in inventory levels and so on.
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CODIFICATION OF INVENTORY
After the classifying all items of stores, it becomes necessary to allot code numbers to the classified items. The object of classification of only to allot a symbol or code number to every item to facilitate easy location and handling. In Mahindra & Mahindra Limited the codification of materials done by allotting the number and alphabets.
X
First Group
XX
Second Group
XXXX
Third Group
X
Fourth Group
First Group
The first group will be alphabet (Range A to Z) indicates types of standards
Second Group
This will be a two digit numeric and will be in line with existing part numbering system and the two digits are the first two digits indicating the vehicles and associated systems / sub systems.
Third Group
Third Group will be a four digit numerical and will be running serial number for the type of standard applicable
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Fourth Group
This will be a one alphabet will indicate the revision status of the standard.
For Example :-
Where :
08 02 B A 069 0 N is is is is is is is Clutch system Sub-System (Sub System) External Controls Mechanical General Running Serial Number M & M Design Colour Code
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JIT purchasing include savings in factory space, large quantity discount and reduced paper work arising from issuing blanket long term orders to fewer suppliers instead of purchase orders. Direct Online (DOL) method is following in JIT system. In JIT A Class items are purchasing and the time between the purchase of these items are 1 to 2 days.
It is a new type of inventory classification using by M & M. Milk Run Concept is a day-to-day purchasing concept. Here the buyer will purchase the material according the production, which is for the next one day. The buyer will first know the safety control stock and then he tells to the suppliers the estimated trigger value. In milk run concept only quality certified stock will be delivered the purchaser should estimated the lead time and it is compulsory so as to have the control over the lead time. It is direct online system there will be inspection so as to save time and inventory handling cost. A and B class items are considered under the milk run concept.
Advantages : Economical transportable lot (minimum transportation cost per piece) No inventory carrying cost at plant and at warehouse. It is direct online system (DOL) Quality certified stock will be delivered and so no inspection is required.
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The material inventory is physically separated into two bins. The quantity contained in the first is used between the time on order is received and the next order is placed. During the lead time the quantity contained in the second bin is made use of the second bin contains enough stock to cover the usage between ordering and delivery plus additional units into the second bin to restore the original quantity and the remaining quantity is put in the first bin. This method is most suited to the controlling of low value items i.e., C category items. Under Two Bin system in M & M Ltd., KANBAN Cards system is following. C class items are storing in the bins under KANBAN system.
KAN BAN TYPE PART NO :DESCRIPTION :STORAGE LOCATION :SCHEDULE TO RECEIPT TIME IN DAYS KAN BAN CARD NO. :M & M MAS, ZHB - VSM
BUYER
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KAN BAN CARD SCHEDULE OF LOAD KING VEH ASSY (NEF PRTPE 25 STR)
SL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
PART DISCRIPTION RUBBER RADIATOR RUB CAB MTG CLAMP BUSH SPHERICAL WASHER PLAIN CLIP P.R. HOLDER BEARING SEAL OIL FR COVER BALL STEEL SPRING IDLER FORK COVER DUST BALL STEEL PIN RETAINER PIN INTER LOCK CHECK BALL PIN SNAP RING SNAP E TYPE RING SNAP E CLAMP CLAMP GASKET EXHAUST O RING PINDART EL SILENCER SILENCER VINPLATE SPACER MAHINDRA LOGO ASSY BATTERY CABLE CLIP CLIP COMMON TO RUBBER MTG RUBBER EXT MTGA CABLE EARTH PIVOT W/D LEVER RUBBER EXT MTGB CLAMP STAY MUD GUARD DUST COVER GASTEK BREAK O RING INSUL BODY MTG 2ND U ASSIT GRIP ASSY - 38 -
PART NO. A 97214002 95154T8001 36458T8008 3446261000 3441461500 270422002 3051466300 3211386401 3272014600 3238486400 3238286401 3272036900 3280C0400 3281586400 3282926700 0092310610 0092251210 007540500P 0062151 0062141 0903BA0191N 005110010P 046510818P A97743003 A97743004 A93969006 A95572002 A93769004 A97241008 24210T8000 24045T8000 21491T8000 2013685001 24085T9001 211200402T 20137B5001 2404558011 A93781003 A93361005 4628375121 1734218000 95520T8000 S93739001
I-BIN QUANTITY IN UNITS 250 700 300 1500 5000 300 2000 3000 1000 2000 250 1000 2500 1000 20000 5000 2500 5000 2500 7500 1000 250 3000 180 210 5500 497 300 861 600 300 600 800 200 1000 800 300 150 4000 3000 250 400 300
Lead-Time :
A purchasing firm requires some time to process the order and time is also required by the supplying firm to execute the order. The time taken processing the order and the executing it is known as lead-time. It is essential to maintain some inventory during this period.
Reorder Level :
Reorder level is fixed between the minimum and maximum levels. When stock of a material reaches at this point, the store keeper should initiate action for the purchase of material. The reorder level is slightly more than minimum stock level to guard against a. Abnormal usage b. Abnormal delay in supply
Reorder level = Maximum consumption during the period X Maximum period required for delivery
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DANGER LEVEL :
This is generally fixed below the minimum stock level. Normal stock should not be below the minimum level. If it reaches the danger level at any point of time, urgent action for replenishment of stock must be taken to prevent stock out.
Calculated of the load king vehicle as 500 units. Normal Daily consumption = 700 units Normal Reorder period Reorder level Minimum usage = 4.5 weeks = 4500 units = 500 units
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Inventory turnover in number of days = YEARS Opening Inventory (Rs. In Lakhs) Closing Inventory (Rs. In Lakhs) 2009 75983 78670 2008 49970 75983
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YEARS
March 2009 March 2008 March 2007 March 2006 March 2005 March 2004
459537.10
335286.52
250021.84
211723.1
235858.13
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5 0
4.41 4.1 6 45
5.389
7.895
5 0
4.41 4.1 6 45
5.389
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1 00
90
88.05 82.65
80
70
67.73
60
50
52.21
50.027
46.23
40
30
20
10
2006 2003
Years
2007 2004
100 80 60 40 20 0
82.65
88.05
67.73 52.21
50.027
46.23
2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006
Years
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A high turnover ratio indicates that the material in question is a fast moving one and also a low amount of stocks are replacing stocks in large number of installments. In the year 2003, 2004, 2005 the stock turnover ratio is gradually decreasing and the inventory turnover in number of days are in high level. This indicates the inventory faced a bad position in these three years. And from 2006, 2007, 2008 the stock turnover ratio continuously increased from 5.38 to 7.296 & the inventory in number of days is low level. This position indicates that the stocks are fast moving and get converted into sales quickly.
YEAR MARCH 31ST 2007 MARCH 31ST 2008 MARCH 31ST 2009
The inflow of raw materials and dispatch of finished goods from the organization is in good position. In march 31st 2006 the difference between the vehicle production and - 46 -
dispatched is 381 and in march 31st 2007 the close stock in the go down is also dispatched from the organization and as well as in the year 2007 31st march the stored vehicles are dispatched from the company. This indicates that the consuming storage cost is very low and risk related to preservation of the stock is very less.
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SUGGESTIONS:
Always in stock to keep production process continuous. For smooth production should provide adequate supply of items. This inturn will lead to timely delivery of goods to customers. They should always make verification of inventory holding cost for the better control of inventory in the organization and to increase the profitability. They should maintain the safety stock, so that they can use it when there is need of the inventory. The total cost of inventory should be compared with the total benefits arising out of inventory for determining its optimum level.
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CONCLUSIONS
1.From the various calculations and figures relating to inventory management it is clear that the inventory classification of A items are maintain for 1 3 days, as a result it reduce investment in raw material, reducing the lead time and also the large quantity discount because the stock are kept for 1 3 days. 2.Class A & B items are consider under the just in time philosophy as the procurement time has been reduced up to greater extent by the proper co-ordination of buyer and supplier. 3.There is great improvement in the inventory turnover ratio from 3 years. and get converted into sales quickly in M & M Ltd., 4.Finally we conclude that MAHINDRA AND MAHINDRA plant the inventory system is very good with high Japanese techniques. It is
increased from 5.38 to 7.895% this position indicates that the stocks are fast moving
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Book value per share is calculated after reducing Intangible Assets, Miscellaneous Expenditure not written off and Revaluation Reserve from Net Worth.
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BIBILOGRAPHY :
Cost Accounting
* * *
R.P. Thrivadi
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