Mahesh's Project

INVENTORY MANAGEMENT
1.1 INDUSTRY PROFILE INTERIOR DESIGN INDUSTRY INTRODUCTION Interior design concerns itself with more than just the visual or ambient enhancement of an interior space, it seeks to optimize and harmonize the uses to which the interior environment will be put. Many factors come into play in formulating the design solution. There is the space itself--its dimensions and construction--with its potential and its limitations. There is how the space will be used--for work or leisure, entertainment or worship, healing or learning. There is the meaning of the space, what it signifies--be it power, authority, security, wisdom, achievement, playfulness or serenity. There are practical considerations, like ease of access, amount of light, acoustics, seating and places to store or set things down. There are health and safety considerations, attention to special needs and more. Design Designers often specialize in one or more specific types of interior design. Some designers specialize in only residential or commercial (or, contract) projects, but many designers do both residential and commercial projects of various kinds.
KARNATAKA STATE OPEN UNIVERSITY
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Approaches
conversely, many designers approach projects from different perspectives. These approaches to design cut across specialties.
Design Specialties and Approaches Accessible Design Commercial Design Design Web Sites Health & Safely Issues Residential Design Sustainable/Green Design Protecting health, safety and welfare is the professional responsibility of every interior designer. Every decision an interior designer makes in one way or another affects the health, safety and welfare of the public. Those decisions include specifying furniture, fabrics and carpeting that meet or exceed fire codes and space planning that provides proper means of egress. Additionally, designers deal with accessibility issues, ergonomics, lighting, acoustics and design solutions for those with special needs.
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Interior materials play a major part in supporting flames or toxicity. Statistics prove that more people die in fires from inhaling fumes and smoke than the flames themselves. Interior designers are specially trained in interior materials and properties, including flammability and toxicity, and are uniquely qualified to select interior finishes that meet or exceed local, state and national fire codes. They also are charged with establishing and maintaining proper means of egress that meet or exceed code. Trained and qualified interior designers study and implement accessibility codes and guidelines. In space planning, interior detailing and interior specifications, the implementation of accessibility codes and guidelines is essential. The issue of public welfare, within the realm of professional interior design, includes the responsibility of considering the greater whole, which involves, among other things, employing environmentally friendly materials and practices to ensure a sustainable environment for future generations. In addition to designing environments that reduce stress, promote healing and are safe, interior designers need to apply their skills to create spaces that foster self-realization and unleash human potential. Designers also must ensure the ecological soundness of the interior environment and the ripple effect on the external environment.
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Qualified interior designers design workplaces that are ergonomic and functional. An environment that provides the occupant with the ability to adjust his/her space to meet his/her own needs can prevent problems such as repetitive motion strain.
A decorator fashions the "look" of a space and its outward decoration paint, fabric, furnishings, light fixtures and other materials. In addition to enhancing the total visual environment, an interior designer creates a space that is functional, efficient and safe. Among the many areas of expertise a professional designer commands are
Space planning and utilization, including organizational and storage needs Long-term project and lifestyle planning National, state and local building codes Safety and accessibility Ergonomics Design for people with special needs Conservation and green design Historic restoration Interior detailing of background elements, such as wall and ceiling designs Custom design of furniture, drapery and accessories Selection of appliances, plumbing fixtures and flooring materials Acoustics and sound transmission
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Audiovisual and communication technology Construction documents and specifications During the 1830s, interior decorators were responsible for the revival
of interest in Gothic and Rococo styles in England. By the late 19th century, some firms set themselves apart as "art furnishers." Home Dcor Products was founded in November 2000 with the acquisition of Bathopia, a bath and kitchen e-tailer. Bathopia was best known for operating BathClick.com, a high-end bath and kitchen fixtures retailer. Bathopia was relaunched as HomeClick.com, primarily an online retailer of bath and kitchen products, with the purpose of allowing the average consumer to purchase items directly online that were typically only available in various showrooms scattered about the country.
In subsequent years, Home Dcor Products expanded its online presence by launching several other websites to leverage its growing product assortment and cater to more consumer segments. Specialty sites such as Barbecues.com, KnobsandThings.com and Poolclick.com followed the launch of AbsoluteHome.com in 2004. In October 2005, Home Dcor Products made a notable acquisition by buying the brand name of big-box retailer Hechinger, a brand known for pioneering the do-it-yourself DIY) movement. HDPI also acquired the assets of DIY brand Builders Square, relaunching it as a vertical comparison
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shopping engine that exclusively targeted the home & garden market. Specializations SPECIALISATION Interior designers can specialize in a particular interior design discipline, such as residential and commercial design, they can also help with making rooms in the hospital and even work with schools to make offices or another things with some developing expertise within a niche design area such as hospitality, health care and institutional design. In jurisdictions where the profession is regulated by the government, designers must meet broad qualifications and show competency in the entire scope of the profession, not only in a specialty. Designers may elect to obtain specialist certification offered by private organizations. Interior designers who also possess environmental expertise in design solutions for sustainable construction can receive accreditation the specialty areas that involve interior designers are limited only by the imagination and are continually growing and changing. With the increase in the aging population, an increased focus has been placed on developing solutions to improve the living environment of the elderly population, which takes into account health and accessibility issues that can affect the design. Awareness of the ability of interior spaces to create positive changes in people's lives is increasing, so interior design is also becoming relevant to this type of advocacy.
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BLINDS A window blind is a window covering composed of long strips of fabric or rigid material. Examples include shutters, Venetian blinds, roller shades and curtain-like track blinds. In Britain awnings are also considered blinds. A blind limits observation and thus blinds the observer to the view. The main types are slat blinds which can be opened in two ways and solid blinds. Slat blinds have long strips called slats. These can be rotated to open the blind while it is still covering the window. In track blinds the slats hang vertically from one end. In Venetian blinds and mini blinds the slats are suspended horizontally on cords. A slat blind can also be opened so it is no longer covering the window. Solid blinds can only be raised or lowered and are often called shades. In some such as Holland blinds and woven-wood blinds there are small spaces between the slats. In others such as pleated shades there are no spaces because the slats are sewn inside fabric. Window blinds reduce the heat from sunlight. Ancient Egyptian pharaohs had blinds made of reeds. The most inexpensive blinds in the 1800s were home-made roller shades, made of cloth.
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Window blinds can be manually drawn or automated through motorization, controlled from a wall switch or keypad, remote control, or a personal computer, thus eliminating the hazard of dangling cords. Materials A window blind is a means of screening a window, achieving similar results to those obtained by fitting curtains. Blinds are typically the same width and height as the window itself or slightly wider and taller - depending on whether they are fixed inside or outside the windows reveal (i.e. the wall recess within which the window itself is fixed). Window blinds have varying thermal effects: they can block unwanted heat of the summer sun and they can keep in heat in cold weather. But in both of these applications, they also reduce light to varying degrees, depending on the design. Many kinds of blinds attempt varying balances of privacy and shade. Blinds can be made of a number of different materials and manufactured in a number of different ways. This usually determines the name by which the blind is commonly known. Fabric Blinds made of fabric can either roll up around a metal batten (roller blinds), fold up thanks to a thin cord and small horizontal slats (Roman blind), folding blinds with no horizontal slats create a less structured look (Austrian blinds).
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Wood Wooden blinds are generally known as Venetian blinds. A number of horizontal wooden slats are joined together by corded pulleys which can either gather all the slats at the top of the window to reveal the view or simply angle the slats while allowing some light to travel through the blind yet retaining some level of privacy. Wooden blinds come in a number of finishes (determined by the type of wood used, which ranges from painted to most types of solid oak varieties) and sizes (determined by the width of each slat which is usually available in one of three widths - 25 mm, 35 mm or 50 mm). Wooden Venetian blinds are also available as vertical blinds. These are usually made up of wider slats and operate in virtually the same way as their horizontal counterparts (i.e. instead of being drawn upwards to reveal the window, the draw to one side gathering in a vertical bunch). Pinoleum blinds are made up of small wooden twigs laid horizontally which are joined together by vertical threading. The resulting weave is, as a result, only flexible vertically and can be drawn upwards once manufactured as a roller blind or in a similar fashion to a Venetian blind. Conservatory blinds are often made with Pinoleum. Drawings in ancient Egyptian tombs of reed blinds have been reported and a common window blind during the 1800s is said to have been the home-made roller shade. Other materials Venetial blinds, both horizontal and vertical, are available in a number of man-made materials (either resembling wood or metal or simply plastic).
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These are better suite to areas where moisture or direct contact with water is likely to cause a problem, such as bathrooms and kitchens. These blinds are often available with micro slats (as small as 16 mm or less). The result of smaller slats is that more have to be used to obscure the window completely. Conservatory blinds (i.e. ceiling fixed via a number of horizontal pulleys) are often made of man-made materials. WINDOW SCREENS A window screen, insect screen or bug screen is a metal wire, fiberglass, or other synthetic fiber mesh, stretched in a frame of wood or metal, designed to cover the opening of an open window. Its primary purpose is to keep insects, leaves, debris, birds, and other animals from entering a building or a screened structure such as a porch, while permitting fresh air-flow. Most houses in Australia, the United States and Canada have screens on all operable windows, which are most useful in areas that have large mosquito populations. Screens in North America were traditionally replaced with glass "storm windows" in cold climates to insulate the window during the winter, but frames combining both storm and screen panels have become the most common type of screen currently used in cold climates. The most common materials used for insect screening material are aluminum and fiberglass. Aluminum is generally available in natural aluminium or in an applied charcoal color. The charcoal is much less visible and should be preferred where the view through the screens as well as the external appearance of the windows is important considerations. Fiberglass is available in light gray as well as charcoal colors, the charcoal again
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offering better viewing and appearance. Fiberglass is less expensive, and has the advantage of not "denting" when hit or pushed. However, the fiberglass mesh is somewhat more opaque than aluminium mesh, which darkens the external appearance of the window and reduces the amount of light transmitted from outside. For applications requiring greater strength, such as screened doors, nylon, and polyester screening is also available. The premier material for insect screening is bronze. Bronze will give much longer service than either aluminium or fiberglass. When first installed, it has an unattractive gold color which weathers to an unobtrusive dark charcoal within a year or less. Bronze is somewhat more resistant to denting than aluminium. The very high cost of bronze screening explains why it is not more commonly used. Less common screen fabrics include copper, brass, stainless steel and galvanized steel.
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1.2 COMPANY PROFILE BACKGROUND AND INCEPTION OF THE COMPANY The history of Swril Infotech Pvt Ltd is the history of window blinds production in South India. It all began in 1986 when Mr. George started a small window matts production unit in Bangalore. His aim was to manufacture and export high quality window matts and market them at reasonable price. Swril Infotech is a market challenger in the state of Karnataka. Swril Infotech specialize in window blinds .SWRIL INFOTECH Blinds have become a powerful Brand name in Wooden/Bamboo/Reed/Exterior Blinds and they have established a national presence through their trade partners. Swril Infotechoffer countless designs including the one you have in mind .They are importing raw materials from Malaysia (Bamboo blinds),Netherland(Roller fabrics),Germany(Mosquito items),and U S A(Mesh).The main suppliers of mesh are Jindal Aluminium, plamotec etc. NATURE OF THE BUSINESS CARRIED SWRIL INFOTECH Blinds match your lifestyle perfectly. They can transform your interiors like nothing else can .They are made using only
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quality material treated and polished with the superior coats from the best in the industry. They would make any room look a shade more elegant, naturally. These blinds are available in so many designs that you will wish your home had as many windows. They are so acquisitively designed and finely fabricated that they lend the right amount of elegance and sophistication to homes, corporate offices, hotels resorts and hospitals. We understand that wooden blinds are currently a range world over pioneered them in the country. SWRIL Roller insect screen system yet another product from mattscorner ensure that you bid bye to insects keeping intact the aesthetics of your home .It helps to retrieve 100%natural light and fresh air .Of course it protects your family from the insects .The SWRIL roller insect screen system is supported with the worlds one of the best fiberglass mesh from Hanover Wire cloth, U.S.A.The system is engineered with the best quality materials and is user friendly. It is available in colours suiting your interior .The system is unique in its product segment. SWRIL ins-frame system again a product pioneered by Mattscorner with sleek aluminum channels, Hanover fiberglass and aluminum mesh, caters to the middle income and upper middle income household. The clientele list of our above products is so huge that they installed them across the breadth and length of the country and across all sections of
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households. They have again exported their insects screen accessories to Colombo and exploring other Asian countries also.
VISION, MISSION AND QUALITY POLICY VISION The major vision of Swril Infotech is to is to make it known worldwide in such a way that when it comes to deciding on window blinds, the first name that should come to the mind of the customer is SWRIL CORNER MISSION The mission is to give customers the best products and extend prompt after sales service. The customers requirements are reviewed for adequacy before taking up any job customer satisfaction is monitored regularly to meet the Quality policy .Customer requirements are documented on order form and communicated to process owners to ensure to meet the customer requirements QUALITY POLICY Mattscorner manufactures of vertical blinds and insects screen will strive to continue to be one of the leading suppliers by deriving customer satisfaction through on time delivering supply of quality products at competitive pricing and continually improving our quality management system
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It is our policy to manufacture and market goods which comply with the customers requirements. We consider customer satisfaction as the basic philosophy of the organization.
Their Quality Objectives: To maintain an effective management system through an active involvement of all employees to ensure timely delivery of goods to reflect the quality in all our activities 1. Aim for 100% delivery performance 2. Aim for zero customer complaints 3. Aim for 85% customer satisfaction PRODUCT PROFILE Matts products cater in to A.BLINDS 1. Bamboo blinds 2. Printed bamboo blinds 3. PVC blind 4. Vertical blinds 5. Venetian blinds 6. Roller fabric blinds B.INS SCREEN 1. INS Frame for window and door 2. Roller system vertical for window 3. Roller system horizontal for door
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4. Slow drive system 5. Plisee system 6. Barrier system HANOVER FIBRE GLASS MESH NEWYORK WIRE MESH SWRIL ROLLER INSECT SCREEN PRODUCT PROFILE BLINDS
SWRIL-Y01
SWRIL-Y02
SWRIL-Y03
SWRIL-Y04
SWRIL-500
SWRIL-502
SWRIL-503
SWRIL-504
Polymer Blinds S.No Products 1 2 3 4 EX 700 EX 701 EX 702 EX 703
Color
Make
Model
Size
Max/Width Mounting Recess / Surface Recess / Surface Recess / Surface Recess / Surface
Deep Polymer Roman/Roller Customized 183 cms Orange Coffee Polymer Roman/Roller Customized 183 cms Brown Dark Polymer Roman/Roller Customized 183 cms Green Tan Polymer Roman/Roller Customized 183 cms Brown
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INVENTORY MANAGEMENT Creamy Polymer Roman/Roller Customized 183 cms Ivory Recess / Surface Recess / Surface
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EX 704
Creamy EX 705 Ivory Polymer Roman/Roller Customized 183 cms (B)
INSECT SCREENS Fibre Glass Mesh S.No Products 1 Fibre Glass Insect Screens 2 3 4 5 6 Color BLACK GREY WHITE BROWN IVORY DECOR Width 3' / 4' / 5' / 6' 3' / 4' / 5' / 6' 3' / 4' / 5' / 6' 3' / 4' / 5' / 6' 3' / 4' / 5' 3' / 4' / 5' Length 30.4/100 30.4/100 30.4/100 30.4/100 30.4/100 30.4/100 Unit mtr/ft mtr/ft mtr/ft mtr/ft mtr/ft mtr/ft Package 1 Roll 1 Roll 1 Roll 1 Roll 1 Roll 1 Roll
Horizontal retractable single door
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Spring loaded retractable system, Convenient, easy to install, easy to operate. Offers complete protection from insects, and is very easy to maintain. Retrieves 100% natural light and fresh air. Specifications Cassette Size : 40mm x 50mm Side Guides : 18.5mm x 35mm Net Size Range : 1600mm width x 2500mm height max. Typical cross-section of a roll screen assembly using Ultrafab USA New Angle Pile (holds screen in place) Standard : Installation : Surface or recess mounting Fiberglass Mesh : Colours - Grey, Black, White and Brown Frame Colours : Off-white, Black, Brown (powder coated) Special Colours on request Width adjustable
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SUN SCREENS Sun screens BASDEN 2000 SERIES
Products Series
2000 Series 30% Polyester, 70% Vinyl Composition on Polyester Roll Length (m) 30 Standard Width (m) 1.83/2.50 Yarn Diameter (in.) 0.013 Warp. 0.013 Fill Thickness(mm) 0.60 Mesh/in. 48 Warp. 48 Fill Openness Factor (%) Appr. 5% UV Blockage Appr. 95% Mesh Weight (g/m2) 410 Breaking Strength (LB/5cm) 330x330 (ATSM D5035) Abrasion Resistance >10000 (ASTM D4966) NFPA701 & Grade B1 Flame Retardant (GB8624-1997)
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Harmful Soluble Lead Substances (mg/m3)
2002 (White/Beige)
2005 (White/Pearl Grey)
2101 (Light Grey/Light Grey)
Sun screens BASDEN 4200 SERIES
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Products Series
4200 Series 30% Polyester, 75% Vinyl Composition on Polyester Roll Length (m) 30 Standard Width (m) 1.83/2.50 Yarn Diameter (in.) 0.013 Warp. 0.013 Fill Thickness(mm) 0.80 Mesh/in. 38 Warp. 38 Fill Openness Factor(%) Appr. 8% UV Blockage Appr. 92% Mesh Weight (g/m2) 520 Breaking Strength (LB/5cm) 330x330 (ATSM D5035) Abrasion Rasistance >10000 (ASTM D4966) NFPA701 & Grade B1 Flame Retardant (GB8624-1997) Choroethylene Monomer 0 Harmful (mg/kg) Substances
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INVENTORY MANAGEMENT 4201 (White/White)
4202(White/Beige)
4205 (White/Pearl Grey)
4211(Black/Brown)
AREAS OF OPERATION They distribute their products in Regionally, Nationally, and globally 1. Mannal Delhi 2. Global marketing Coimbatore 3. Veeva enterprises Chennai 4. Shalini marketing Hyderabad 5. Srilanka. COMPETITOR INFORMATION 1. Spectra 2. Satkal 3. Mantharalayam
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4. Garden fencing 5. Alembie OWNERSHIP PATTERN 1. Mr. George Mathew 2. Mrs. Regha George
WORKFLOW MODE
Stage 1. Stage2.
Selecting the raw materials as per customer needs
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Height cutting
Stage 4. Stage 3. Width cutting Cord locking process
Stage 5 Measurement checking
Stage 6 Quality checking
Stage 7. 9. Labeling
Stage 8.
Stage
Sealing
Packing
Stage 10
Dispatching INFRASTRUCTURAL FACILITIES
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SWRIL seeks to provide a safe and environment friendly work atmosphere. They are providing good canteen facility to the workers in the company. Managing director is responsible for providing good house keeping and such facilities like wooden/plastic containers and handling equipments required to protect product quality the employees are trained to keep their work place clean. ORGANISATION STRUCTURE Organisation structure of the Swril Infotech Pvt Ltd.
Managing Director
Directors
Human Resource
Finance
Purchase
Production
Marketing
Accounts
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ACHIEVEMENTS AND AWARDS IF ANY Inside outside Mega Show 2008 1.1st price-CHENNAI 2.2nd price-HYDERABAD FUTURE GROWTH AND PROSPECTUS The first and the foremost objective of the firm is to maintain the quality of product...To be the leader in the Window blind industry, this is the major goal of Mattscorner India pvt ltd. To expand operations to foreign countries To acquire the North Indian market To maintain the quality of products To maintain good relations with suppliers To maintain a healthy competition with the competitors To regulate production process without damages/defects
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1.3 INTRODUCTION INVENTORY MANAGEMENT
MEANING OF INVENTORIES: The term inventory refers to materials lying in store. Inventory may be defined as the raw-materials , work in progress or finished goods held for ultimate use in manufacturing process or for resale purpose. For manufacturing concern, inventories may consists of raw materials, semifinished products store and spares materials such as cotton, waste, lubricants oil, brush etc. whereas trading concerns inventory includes goods for ultimate resale. Inventory constitutes most significant part of current asset of a large majority of the cost in India. On the average, inventories are approximately 60% of the current assets in public companies in India. Because the large size of inventories maintained by firms a considerable amount of fund is required to be committed in them. Inventories can be reviewed as idle source of any kind having an economic value they are these goods which are procured stored and used for the day to day functioning of an organization.
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Different managers view inventories in different angles: Production manager: he like to have adequate stock of raw materials and would like to produce economic batches of size. So that production line is not idle and optimum capacity is utilized. Purchase manager: He would like to order in charge valume as it involves lesser number of order and consequently lesser work and cost. Finance manager; He would invest insist on low inventories, because for him goods are working capital and cash flow gets affected by large inventory. However high inventories mean lesser profits and these days no company can afford high inventories. The reduction of excessive inventories carries a favorable impact on the companys profitability. COMMON CHARACTERSTICS OF INVENTORIES: Inventories shares the following characteristics 1. Inventories represent a financial investment for the company. 2. Inventories become part of the cost of goods sold and are therefore a business expenses. 3. Inventories use storage space, require handling, incur tax, require insurance and sometimes deteriorate, become absolute or get lost or stolen.
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4. The availability of the right items at the right time is necessary for operating any production process or satisfies a demand by customers for a finished products. 5. Inventories are not self-correcting. They must be managed and effective management requires appropriate measures of performance. All profit oriented organization carries inventories with these characteristics. NATURE OF INVENTORIES: Inventories are the stock of the product of a company is manufacturing for sale and components that make up the products. The various forms in which inventories exists in a manufacturing company are, A) Raw Material B) Work in progress C) Finished goods D) Store and supply A ) Raw material : Raw material are those basic inputs that are converted into finished product through the manufacturing process. Raw material inventories are those units which have purchased and stored for future productions. B)Work in progress:
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Work in progress inventories are semi manufactured products they represent products that need more before they become finished goods. C)Finished goods: Finished goods inventories are those completely manufactured products which are ready for sale. Stock of raw material and work in process facilities production, while stock of finished goods are required to smooth marketing operation thus inventories serve link between production and consumption of goods. D)Spares and parts: Firm also maintains a forth kind of inventories, suppliers stores or stores and spares. Supplies include office and plant cleaning, materials like soap brooms, oil, light and bulbs etc. NEED TO HOLD INVENTORIES: The questioning of managing the inventories arises only when the company holds inventories. Maintaining inventories involve typing up the companys funds and incurrence of string and handling costs. If it is expensive to maintain inventories why do companies hold inventories? There are three motives for thr holding of inventories: Transaction motive emphasis need to maintain inventories to facilitate smooth production and sales operations.
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Precautionary motive necessitates holding of inventories to guard against the risk of unpredictable changes in demand and supply forces and other factors. Speculative motive influences the decision to increase or decrease inventory level to take advantage of price fluctuations.
Objectives: The main objectives of the inventory management are as follows To maintain a large size of inventory for efficient and smooth production and sales operation. To maintain a minimum investment in inventory to maximize the profitability. The objective of inventory management should be to determine and maintain optimum level of inventory investment. The objectives of inventory management are as follows: To ensure the timely supply of raw material finished products and other spares in required quantity for production purpose and to meet frequent varying demands of the customers. To utilize available storage capacity economically by fixing the stock level. To minimize as for as possible investment in inventories inventory carrying cost and likely obsolescence loss.
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To eliminate possible losses due to pilferage carless handling theft deterioration in quality etc. To obtain economies of large scale buying. To know the comparative cost and consumption of materials over different periods. To achieve wealth maximization objectives.
COST ASSOCIATED WITH INVENTORIES Carrying cost: Cost of capital tied up Storage and handling costs Insurance Property tax Depreciation and obsolescences. Ordering shipping and receiving cost: Cost of placing order, include production and set up costs. Shipping and Handling costs. Cost of running stock/stock output Loss of sales varies Loss of customer go will varies Disruption of production varies. ACQUISITION COSTS:
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Acquisition cost encompass cost incurred in requisitioning purchase ordering setting up, tracking receiving and storage placement. The more frequently acquisition inventory are made the higher firms acquisition cost will be relatively small. So acquisition cost decrease with increasing inventory size other thing being equal.
SCOPE OF INVENTORY MANAGEMENT: Inventory constitutes one of important current assets to a firm holds. Inventories establish link between production and sale of products. Larger inventories give flexibility in operation. Holding of adequate of raw material, finished goods, spare parts etc., ensure smooth and unrestricted flow of production as well as selling activities. If the inventory is inadequate then It may hamper the production activities during the period of scarcity. Trading firm may forego the possible anticipated profit if, it does not hold sufficient quantity of goods in stock to meet the increasing demand of the customers. If the inventory is more then, Increased total cost incurred Storage and Handling cost will also increase. Required return on capital being tied up in the inventory. Therefore,
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A perfect balance should be struck between investment made on the inventory and benefits to be obtained there from. Inventory management includes the determination of quantity of inventory to be carried, fixing timing schedules, determining minimum stock levels, procuring, disbursing, storing material, assigning inventory control responsibilities and supervision. Thus, inventory management is concerned with proper planning and controlling of raw materials, finished goods, and store materials in stock for efficient production or ultimate selling purpose.
Finance managers Role in Inventory Management: For a majority of the companies, the inventory represents a substantial investment. The inventory program , is part of the planning budget which often falls within the financial area. As management becomes increasingly aware of the necessity of inventory control, ultimate responsibility is placed more and more in the hand of the financial manager who playing increasingly important role in determine the nature of control involved exercised the methods of balancing the relative cost involved and measurement of performance of inventory control. He may be having supervisory authority in this area or he may be a member of policy committee with board responsibilities. In smaller firm, he often participates even more directly in the management of inventories.
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Though the corporate financial officer may not be directly concerned with inventory policies. The inventory policies have a direct and important bearing on the financial need of the firm. The financial officer can do good job of anticipating change in the need for funds if he thoroughly understands the implication of changing inventory policies where financier are a limiting factor. TECHNIQUES OF INVENTORY ABC Technique Organization can classify inventories on the basis of amount spent on purchasing various items. The comparatively costlier items can be kept in one class and moderate cost items can be put into another. Comparatively cheaper items forming the bulk of inventories can be designated as A Class with moderately costly items as B class and cheaper items in C class. This is the simple ABC technique of managing inventories. The procedure of ABC classification ia as follows Classify the inventories determine the expected use in units and the price per unit for each items. Determine the total value of each item by multiplying the expected units by its unit price. Rank the items in accordance with the total value giving first rank to the item with the highest total value and so on.
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Compute the ratio of number of units of each item to total value of all items. Combine items on the basis of their relative value to form categories A,B and C.
For Example, ITEMS CATEGORY A B C TOTAL TOTAL INVENTORY VALUE 70% 20% 10% 100%
Table showing features of ABC analysis Pareto analysis: Pareto analysis (some times referred as 80/20 rule and as ABC analysis) is a method of classifying items, events, or activities according to their relative importance. It is frequently used in inventory management where it is used to classify stock items into groups based on the annual expenditure for, or total stock holding cost of each item. Organization can
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concentrate on the high VALUE/ IMPORTANT items. Pareto analysis is used to arrive at this prioritization. Taking inventory as an example, the first step in the analysis is to identify those criteria which make a significant level of control important for any item. Two possible factors are the usage rate for any item and its unit value. VED Technique: This will be made on the principle of classification, which classifies the inventory items depending on whether an item is vital, Essential and desirable (VED) for the business activities. The items identified as vital require more attention. FSN Technique: F-S-N analysis is based on the consumption figures of the items. The items under this analysis are classified into three groups: Fast moving(F), Slow moving(S) and Non moving(N). To conduct the analysis, the last date of receipt or the last date of issue whichever is later is taken into account and the period, usually in terms of number of months, that has elapsed since the last movement is recorded. Such an analysis helps to identify: Active items which require to be reviewed regularly Surplus items whose stocks are higher than their rate of consumption; and Non moving items which are not being consumed.
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EOQ Technique: Economic order quantity(EOQ) is that size of the order which gives maximum economy in purchasing any material and ultimately contributes towards maintaining the materials at the optimum level and at the minimum cost. In other words, the economic order quantity(EOQ) is the amount of inventory to be ordered at one time for purpose of minimizing annual inventory cost. The quantity to order at a given time must be determined by balancing two factors: (1) the cost of possessing or carrying materials and (2) the cost of acquiring or ordering materials. Purchasing larger quantities may decrease the unit cost of acquisition, but this savings may not be more than offset by the cost of carrying materials in stock for a longer period of time. The carrying cost of inventory may include: Interest in investment of working capital Property tax and insurance Storage cost, Handling cost Deterioration and shrinkage of stocks. Formula for EOQ: The different formulas have been developed for the calculation of of economic order quantity (EOQ). The following formula is usually used for the calculation EOQ.
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EOQ= A=Demand for the year Cp= Cost to place a single order
where,
Ch= cost to hold one unit of inventory for a year JIT Technique: JIT focuses on ordering inventories as and when the need arises. It focuses on reduction in investment in inventories carrying cost. It improves return on investment as the amount blocked in inventories is minimized. However, the success of JIT depends in faster communication with suppliers and the seat lead time of various items. This technique is successful when the organization has easy geographical approach and is near to the sources of inputs materials. LEVELS OF INVENTORY: Minimum stock level Maximum stock level Re-order level Danger level
Minimum stock level:
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This represents the minimum quantity of stock that should be maintained in a firm; stock level is normally not allowed below this level. This level of stock is a buffer stock during emergencies. fall of stock level below minimum level will indicate potential danger to this business. Thus extra efforts have to be taken to expedite the supply. Maximum stock level: Maximum level indicates maximum quantity of an item of material. This is the level above which stocks are not allowed to rise. Maximum level can be calculated as Maximum level = Re-order level + ( Re-ordered quantity minimum consumption * minimum re-order period) The factors to be considered to maintain minimum requirement stock level are: Maximizing requirement of the stock for production at any point of time Storage space available Storage and investment costs Availability and insurance cost Price advantage arising out of bulk purchases Economic ordered quantity also affects the maximum level Government restriction on import Possibility of price fluctuation Re-ordered quantity (EOQ): It refers to the quantity to purchase in a single purchase order. It is nothing but Economic ordered quantity.
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Danger level: This level is fixed usually below the minimum level, emergent purchase action are initiated if stock falls below danger level. Danger Level= average consumption*maximum re-order period for emergency purchase LIMITATIONS: A detailed analysis of the inventory management by considering each items of materials could not be done due to lack of item. Secondary regarding the data provided by the company mostly secondary i.e. it may have been audited by the organization. The firm does not allow the project training into the stores about the inventory stores because it is company policy.
INVENTORY VALUATION: Many methods of materials costing and inventory has come into use among the more common methods of costing materials and valuing inventories are: First in First out(FIFO) Last in first out(LIFO) Weighted average method(WAM)
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FIRST IN FIRST OUT (FIFO): Here the earliest acquired stock is measured to be used first. The stock which is bought first is issued first in order words the principle is that the materials are issued in this order and at the price of their original purchase. This method is claimed to accurate for the reason that the materials are charged into production at annual cost in the order of receipt. The closing inventories are valued at most recent prices. If the closing inventory balance include materials at several different prices the problems of considerable clerical work is involved. It is a method which materials are issued according to their incoming time i.e. whichever is come first that should be issued to manufacturing department first. This method is very reliable to the company for full and efficient utilization of materials. And some are remained lastly without issuing they are known as SHELF LIFE ITEMS. LAST IN FIRST OUT (LIFO): Not withstanding its deferred tax advantage, a LIFO inventory system can lead to LIFO liquidation, a situation where in the absence of new replacement inventory or a search for increased profits, older inventory is increasingly liquidated (or sold). If prices have been rising, for example through inflation, this older inventory will have a lower cost, and its liquidation leads to recognition of higher net income and the payment of
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higher taxes, thus reversing the deferred tax advantage that initially encouraged the adoption of a LIFO system. WEIGHTED AVERAGE COST METHOD: Under this method issues are priced at the weighted average cost of materials in stock to get an into data weighted average cost figures a new weighted average cost is calculated each times a delivery is received.
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1.4 REVIEW OF LITERATURE
Are You Communicating Purchasing's Benefits? Because it can be difficult to gain "buy-in" from functional departments when trying to get them to accept Purchasing's involvement, it is important to have a list of reasons why it will benefit them to work with Purchasing. So I encourage you to develop such a list - a Purchasing Manifesto, if you will - to aid in your efforts to "sell" the value of working with Purchasing. Here is an example of four points you can include in your Purchasing Manifesto. 1. Purchasing's Involvement Allows You To Focus On Your Core Competency. You have a very important role in the organization. Your expertise in your function makes you valuable. With Purchasing handling your procurement activities, you'll be able to spend more of your time on what you do best.
2. Purchasing's Involvement Helps You Avoid Last Minute Crises. Your department is very busy with many competing priorities. In many departments that meet that same description, procurement
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activities are often put off until the last minute. This results in failure to find the best value in the market, paying expediting shipping charges, or, worst of all, not obtaining goods and services on-time. Purchasing can help you avoid these headaches.
3. Purchasing's Involvement Gets The Most Out Of Your Budget. Unless your department invests in negotiation training for its staff and gives them the daily opportunity to negotiate with suppliers, suppliers may have an advantage in bargaining. Because the purchasing staff regularly receives negotiation training, negotiates daily, and keeps up to date with the latest cost saving techniques, Purchasing can help save your department money and alleviate some of your budget constraints.
4. Purchasing's Involvement Can Uncover Unforeseen Obstacles. Whether it be seeing the warning signs of a supplier in financial trouble, identifying a material in short supply, or just knowing the typical timelines associated in getting the goods or services you need, Purchasing reduces risks to your department's operations.
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1.5 STATEMENT OF PROBLEM TITLE OF THE STUDY: Inventory Management in Swril Infotech Pvt Ltd. One of the most important areas in the day-to-day management of the firm is the management of the inventory. Inventory management is the functional area of finance that covers the efficiency of a manufacturing firm. It is concerned with the management of inventories as well as efficiency in cost reduction. The study helps in evaluating efficiency of inventory management of Swril Infotech Pvt Ltd.
1.6 OBJECTIVES OF STUDY The main objectives of the study are, 1. To understand the various techniques of inventory management and its control. 2. To understand the effectiveness of inventory management through various techniques. 3. To analyze the function, procedures in inventory management. 4. To study the control measures in inventory management. 5. To make a comparative study of inventory management in the last three years.
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6. To introduce stock levels for the proper management of the department. 1.7 NEED FOR STUDY Inventory Management must be designed to meet the dictates of market place and support the companys Strategic Plan. The many changes in the market demand, new opportunities due to worldwide marketing, global sourcing of materials and new manufacturing technology means many companies need to change their Inventory Management approach and change the process for Inventory Control. This system provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with customers. Inventory Management does not make decisions or manage operations; they provide the information to managers who make more accurate and timely decisions to manage their operations. To know the effectiveness of inventory management in the company. To know the importance of inventory management. How to maintain average inventory level in an organisation. For finding the inventory conversion period. To study the overall inventory transactions done in a company.
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1.8 SCOPE OF THE STUDY The first step in developing a system for materials management is to choose the right type of classification for the materials and then apply appropriate techniques such as: The economic order quantity (EOQ) formula Bulk ordering with time phased delivery A fixed order quantity system A fixed order period system A probability based trade off matrix Speculative consideration All these controls are applicable to inventory management in all industry, but since the time allowed for this project is limited. The assessments are included under the heading analysis and interpretation of the data 1.9 RESEARCH METHODOLOGY Research methodology simply refers to a methodical study in order to prove a hypothesis or answer a specific question. Finding a definitive answer is the central goal of any experimental process.
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RESEARCH DESIGN Research design means a search of facts, answers to question and solution to the problems. It is a prospective investigation. Research is a systematical logical study of an issue or problem through scientific method. It is a systematic and objective analysis and recording of controlled observation that may lead to the development of generalization, principles, resulting in prediction ultimate control of events. Research design is the arrangement of conditions for the collection and analysis of data in manner that aims to combine relevance to the research purpose with relevance to economy. There are various designs, which are descriptive and helpful for analytical research. In brief a research design contains A clear statement of the research problem. A specification of data required Procedure and techniques to be adopted for data collection. A method of processing and analysis of data. Identifying the statement of the problem. Collection of the companys specific literature i.e., annual reports for the study period and the profile of the company.
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Scanning through standard books to understand the theory behind the financial performance evaluation Collection of information from various journals to understand the industrial background of the study. Sources of data: There are two sources of data. They are as follows 1. Primary data 2. Secondary data 3. Primary data This data was collected through discussion with concerned officers by sitting with them in free time. Secondary data It is reviewing of relevant information, which is already collected and making inferences based on the information collected The secondary data used in the study are 1. Annual Report of the company 2. Financial records of the company 3. By viewing how they place order Tools and Techniques:
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A financial analyst can adopt the following tools for analysis of the financial statements. These are also termed as methods of Financial Analysis. The tool and techniques used in the study are following 1. Inventory analysis and interpretation. 2. current ratio and quick ratio analysis. 3. statistical techniques. 1.10 LIMITATIONS OF THE STUDY 1. Time constraint. 2. All the informations required could not be made public by the organization. 3. A thorough discussion with all officials was not possible due to their busy schedules. 4. The study covered a wide concept and owing to the above constraints, wide collection and coverage of information was not possible. 5. Financial statements are essentially interim reports: 6. Influence of personal judgment.
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CHAPTER-2 ANALYSIS AND INTERPRETATION Plan of Analysis The data collected through primary and secondary sources were processed and presented in the chapter. Data analysis by charts in respect of stock of raw materials, sales, inventory control procedures and thus to draw conclusion from the analysis done. Data Analysis Evolution of Primary Data: Data collected through discussion with top management and other departments like, Accounts, stores etc. From the discussion, I came to know that the Swril Infotechhas both types of inventories.ie, Physical and value based inventories. The inventory system here is fully computerized. Purchasing department is supplying the raw materials required by the production or service unit. The company is following Determination of stock level inventory management technique. It Includes: 1. Maximum Level.
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2. Minimum Level. 3. Re-order Level. 4. Danger Level.
Inventory turn over ratio: Concept: This ratio indicates the speed at which the inventory is converted into sales, which contributed, to the profit of the organization. Higher the ratio better will be the efficiency. Inventory turn over ratio = cost of sales / Average inventory Table showing cost of sales, average inventory and inventory turn over ratio. Table-2.1 Inventory Turn Over Ratio.
Average Year Cost of Sales Inventory Inventory Turn Over Ratio
2009-2010
9689186
543222
17.83651251
2010-2011
7564020
478765
15.79902457
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2011-2012
8041837
497557
16.16264468 Source: Annual Report
Chart-2.1
Inventory Turn Over Ratio
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Analysis Inventory turn over ratio in 2009-10 is 17.83 and it decreased to 15.79 in 2010-11 and in the year 2011-12 it increased to 16.16. Interpretation The inventory turn over ratio is 39.00 times on an average. This is because the cost of sales increases more proportionately than the average inventory. The higher the ratio better will be the efficiency; company should try to reduce average inventory and increase sales.
Inventory Conversion Period
Concept: This ratio indicates the number of days taken to convert the inventory. This ratio is very useful in deciding the organizations efficiency. This ratio helps the organization in knowing its own efficiency to improve and also to show the financing institutions about its capacity and its utilization, to obtain finance from the institutions mainly from banks. Inventory Conversion Period = 365 days/Inventory turn over ratio.
Table Showing the Inventory Conversion Period. Table-2.2 Inventory Conversion Period
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Year
No Of Days
Inventory Turn Over Ratio
20092010
365
17.83651251
20.46364163
20102011
365
15.79902457
23.10269209
20112012
365
16.16264468
22.5866337
Source: Annual Report
Chart-2.2
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Analysis Inventory conversion period during the year 2009-10 was 20 days while it increased to 23 days in 2010-11 and it decreased to 22days in 2011-12. Interpretation The inventory conversion period increased because of less inventory turn over ratio in the year 2010-11, which is favourable to the company.
Raw Material Turn Over Ratio:
Concept: Raw material turn over ratio is the velocity at which the raw materials are converted in to goods ready for sales. If the raw material turn over ratio is high then the company is efficiently converting the raw materials in to finished goods. [Raw material turn over ratio = Cost of goods sold / Average raw material] Table showing cost of sales, average raw material and raw material turn over
ratio. Table-2.3 Raw Material Turn Over Ratio
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Year
Cost of Sales
Average Raw Material
Raw Material Turn Over Ratio
20092010
9689186
736127
13.16238366
20102011
7564020
885069
8.546248937
20112012
8041837
1177717
6.828327179 Source: Annual Report
Chart-2.3
Raw Material Turn Over Ratio
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Analysis: Raw material turn over ratio in the year 2009-10, 13.16:1 Times, which decreased to 8.54:1 Times in the year 2010-11 and it decreased to 6.82:1 Times in the year 2011-12. Interpretation The raw material turn over ratio is high in initial year then it has gradually decreased in the next year due to gradually increase in average raw material and decrease in the cost of sales which indicates an unfavorable raw material turn over ratio.
Work In Progress Turn Over Ratio: Concept Work-in-progress turn over ratio indicates the speed at which the work-in-progress is converted into the finished goods. This helps the organization to know the working capital requirement of the organization that helps in planning. Work-in-progress turn over ratio = Cost of goods sold / Average work in progress.
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INVENTORY MANAGEMENT Table-2.4 Work-In-Progress Turn Over Ratio
Year
Cost of Sales
Average work -inprogress
Work in progress turn over ratio
2009-2010
9689186
475667
20.36968299
2010-2011
7564020
354355
21.34588195
2011-2012
8041837
343654
23.40097016
Source: Annual Report Chart-2.4 Work-In-Progress Turn Over Ratio
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Analysis: Here it is revealed that work in progress turn over ratio in 2009-10 was 20.36 and is increased to 21.34 in the next year,and again increased to 23.40 in the last year 2011-12. Interpretation: Work in progress turn over ratio has increased gradually in all the years because of the proportionate change in the cost of goods sold.
Duration Of Work-in-Progress Stage: Concept:
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This indicates the number of days taken to convert the work in progress stock into finished goods; this helps the organization to know the current requirement of stock of other items like consumable for the further process in the production. Duration of Work-in-Progress Stage = 365 / work in progress turn over ratio The table showing work in progress turn over ratio and its duration.
Table-2.5 Duration Of Work-in-Progress Stage
Year
No Of Days in a year
Work in progress turn over ratio
Days
2009-2010
365
20.36968299 17.91879
2010-2011
365
21.34588195 17.09932
2011-2012
365
23.40097016 15.59764 Source: Annual Report
Chart-2.5
Duration Of Work-in-Progress Stage
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Analysis: The duration of converting work in progress to finished in 2009-10 was 17days and in next year also 17 days were in 2011-12 it decreased to 15 days. Interpretation: There is a gradual decreased in work in progress turn over ratio conversion period because of increase in work in progress turn over ratio
Inventory to Current Asset Ratio
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Inventory to current assets ratio indicates the relationship between the inventory and current assets; it shows the percentage of inventory to current assets, which helps the organization in deciding the current asset policy, which also affect the liquidity position of the organization. Inventory to current asset ratio = Inventory/ current assets Table showing current assets, inventory and percentage of inventory to current assets.
Table-2.6 Inventory to Current Asset Ratio.
Year
Inventory
Current Assets
Percentage
20092010 2430704 5959565 0.40786601
20102011 3099915 8565154 0.361921689
20112012 8259400 14520339 0.568815921
. Chart-2.6 Inventory to Current Asset Ratio
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Analysis The inventory to current asset ratio in the year 2009-10 was 0.407% and it decreased to 0.361% in the year 2010-11.And in 2011-12 it is 0.568% and is high compare to previous years. Interpretation This ratio indicates the inventory components in the current assets. The inventory component in 2010-11 was least which shows less funds blocked in current assets in form of stock. But in next year it started increasing which clearly indicates that more portion of the inventory has blocked in current asset, at present is much higher in these period.
Inventory to Total Assets (Percentage of total assets):
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Concept: Inventory to total assets indicates the relationship between the inventory and total assets. The significance of this ratio is it reflects the portion of the inventory as a percentage of the total assets, which helps the management in deciding the utilization of remaining resources profitably. Since the inventory will lock up the huge funds and reduces the profitability of the organization. Inventory to total assets = (Inventory / total assets) x 100 Table showing inventory, Total assets and its percentages.
Table-2.7
Inventory To Total Assets
Year
Inventory
Total Assets
Percentage
20092010 2430704 12265929 19.81671343
20102011 3099915 15840910 19.56904622
20112012 8259400 22257003 37.10921906
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INVENTORY MANAGEMENT Chart-2.7 Inventory To Total Assets
Analysis: During the year 2009-10the ratio of inventory total assets was 1/5 th and a slight decrease in the year 2010-11. In 2011-12 it increased to more than 1/3rd which is a high increase in total asset. Interpretation: The inventory to total assets ratio indicates that what percentage of inventory is involved in the total stock. It was least in the year 2010-11.And the high increase in 2011-12 is because of increase in inventory in the total asset.
Inventory to total capital employed:
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Concept This ratio indicates the relationship between the total capital employed and inventories; it shows how much capital utilized to invest in the inventories other than the other assets. Inventory to capital employed ratio = Inventory / capital employed. Capital employed = share capital + preference shares + reserves and surplus + long term debt. Table-6 Table showing inventory and total capital employed and its ratio. Table-2.8 Inventory to total capital employed:
Capital Year Inventory Employed(In lacs.) Ratio {In Times}
2009-2010
2430704
1908333
1.273731576
2010-2011
3099915
2597732
1.193315939
2011-2012
8259400
4930399 Source: Annual Report
1.675199107
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INVENTORY MANAGEMENT Chart-2.8 Inventory to capital Employed Ratio
Analysis In the year 2009-10 the inventory to capital employed was 1.27 times, the ratio is decreased in next year and a high increase in the year 2011-12 to 1.67 times. Interpretation The increase in capital employed shows that capital utilised for the stocks have increased. Hence more portion of capital employed is invested in inventory which be clearly shown in the chart.
Inventory to working capital Ratio
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Concept: The relationship between inventory to working capital indicates the amount of inventory included in the working capital. And it also shows the efficiency of inventory management. Inventory to working capital ratio = Inventory / working Capital Table Showing inventory, working capital and its ratio . Table-2.9 Inventory To Working Capital Ratio
Working Year Inventory Capital Ratio {In Times}
2009-2010
2430704
583607
4.164967178
2010-2011
3099915
1212814
2.555969011
2011-2012
8259400
7709709
1.071298541
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Chart-2.9
Inventory to working capital
Analysis The companys inventory to working capital ratio was 4.16 times in the year 2009-10 then it decreased in the next two years respectively. Interpretation The inventory to working capital ratio has decreased in these periods which indicate that working capital is involves less in inventory. So non-liquid assets are less than liquid assets.
Current Ratio:
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Concept: Current ratio is a more dependable indication of solvency than working capital. It is the difference between current assets and current liabilities. Current Ratio = current asset / current liability Table showing current ratio of the company. Table-2.10 Current Ratio
Current Year Current Assets Liabilities Ratio {In Times}
2009-2010
8959565
8375958
1.069676448
2010-2011
8565154
7352340
1.164956191
2011-2012
14520339
6810630
2.132011136
Chart-2.10
Current Ratio
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Analysis The current ratio of the company has increased from 1.06 to 2.13 in the periods 2009 to 2012. Interpretation The current ratio of the company is high in these periods which mean that the current position of the company is good with respect to current liabilities.
Inventory To Sales Ratio:
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Concept Inventory to Sales indicates the relationship between the inventory and sales. It shows how much of the inventories should be sold in a year with regarding to total inventory, it shows companies sales of inventory. Inventory to sales ratio = (Inventory / Sales) x 100 Table Showing Inventory, Sales and Inventory to sales Ratio
Table-1.11 Inventory To Sales Ratio
Year 20092010 20102011 20112012
Inventory
Sales
Inventory to sales ratio
2430704
5468867
44.44620796
3099915
5858555
52.91262094
8259400
10774733 Source: Annual Report
76.65526375
Chart-1.11
Inventory To Sales Ratio
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Analysis: In the above table it shows in 2009-10 the inventory to sales ratio was 44.44 % and in the next two years it is increasing to 52.91% and 76.65% respectively. Interpretation: Here it is the increasing of inventory to sales because of increase in inventory.Its is best for more inventory more sales and high will be the return.
Purchase to Inventory Ratio:
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Concept: Purchase to inventory shows the relationship between purchase and inventory. The formula to find purchase to inventory ratio is, Purchase to inventory ratio = purchase / inventory Table Showing purchase, Inventory and purchase to inventory ratio.
Table-2.12 Purchase To Inventory Ratio
year
Purchase
Inventory
Purchase to inventory ratio
2009-2010
7257446
2430704
2.985738288
2010-2011
7644266
3099915
2.465959873
2011-2012
8757648
8259400
1.060324963
Chart-2.12
Purchase To Inventory Ratio
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Analysis: It is the purchase to inventory ratio in 2009-10 as 2.98%, which decreased to 2.46% in 2010-11, which again decreased to 1.06% in 2011-12. Interpretation: The decrease in the purchase to inventory ratio shows the decrease in profit.
SUMMARY AND FINDINGS
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1. It is noted that Inventory turn over ratio in 2009-10 is 17.83 and it decreased to 14.37 in 2010-11 and in the year 2011-12 it increased to 16.16. 2. Inventory conversion period during the year 2009-10 was 20 days while it increased to 25 days in 2010-11 and it decreased to 22days in 2011-12. 3. About 3/4th of the customers are thinks that processing time and processing cost of the company is reasonable, but some customers hints that processing time is high. 4. Here the raw material turn over ratio in the year 2009-10, 13.16:1 Times, which decreased to 1.76:1 Times in the year 2010-11 and it increased to6.82:1 Times in the year 2011-12. 5. It can be seen that majority feels that there is a friendly approach from the employee towards the customers, but still considerable number of customers feels that employee approach is unfriendly. 6. The inventory to current asset ratio in the year 2009-10 was 0.407% and it decreased to 0.361% in the year 2010-11.And in 2011-12 it is 0.568% and is high compare to previous years. 7. During the year 2009-10 the ratio of inventory total assets was 19.81% and a slight decrease to19.56% in the year 2010-11. In 2011-12 it increased to 37.10% which is a high increase in total asset.
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8. In the year 2009-10 the inventory to capital employed was 1.27 times, the ratio is decreased in next year and a high increase in the year 2011-12 to 1.67 times. 9. Working capital turnover ratio indicates that the company does not have an efficient control over the working capital.
10.The companys inventory to working capital ratio was 4.16 times in the year 2009-10 then it decreased in the next two years respectively. 11.The current ratio of the company has increased from 1.06 to 2.13 in the periods 2009 to 2012. 12.For more than half of the respondents quality seems to be the factor that attracted the public to purchase the brand they are experienced. 13. Majority of respondents holds the view that TV is an effective medium for advertisements.
A sincere effort has been made by the researcher to know the position of inventory. The inventory position thus known from this helps the manager to take good decision in the organization. Suggestions have also been given for the betterment of the company.
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SUGGESTIONS The major finding of the study paves a way for the researcher to provide the following suggestions to improve and develop inventory management in Swril Infotech Pvt Ltd. 1. As the inventory turnover rate is low, the inventory is high. The efficiency of utilizing the inventory can be enhancing by reducing the stock levels to the required level only. 2. Inventory to total capital employed increased shows that much of the capital is utilized in inventories. The company can try to maintain a low ratio in this regard. 3. As the raw material turnover ratio is high it indicates excessive raw material stock lying idle, this can be reduced by purchasing the raw material when it is required. 4. The material can be purchased from the suppliers as and when required to avoid unnecessary blockage of funds in idle stock. 5. Proper training to be given to workers for increasing efficiency in production process. 6. The bin card system should be monitored to ensure the availability of right quantity materials at the right time.
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7. Current ratio of the company is increasing and needs to maintain it that the liquidity position of the firm can be maintained. 8. In order to improve the brand awareness various activities like sponsorships etc should be undertaken or should be continued. 9. A frequent audit should be made with the team by the management. 10. Special consideration should be given for employees
who work in extra time.
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3.1 CONCLUSION Finally it can be concluded that on whole the inventory position in Swril Infotech Pvt Ltd is improving over the years. But still it has to concentrate on the reduction of raw material holding period and inventory conversion period which is the main cause of blockage of funds. So apart from this the inventory control techniques and procedures followed are satisfactory. A period of one month is taken for the study. For the particular study a simple survey was conducted at an initial stage. After analyzing the data the study has further shown the significance of media advertisements as a factor influencing upon the customer buying decisions. The study has brought out that any few improvement steps on the part of management can bring a lot of
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benefits to the product in the coming future, since the target market for the product is quite high. 3.2 ANNEXURES Over the years, Swril Infotechrealized that people are as different as they are similar. Different needs, different lives, different needs. With the depth of knowledge Matts corner, today, is poised to fulfill the hopes and aspirations of people across the length and breadth of the economy.
BIBLIOGRAPHY 1. Kothari. C.R. ,Research Methodology Methods and Techniques, Wishwa Prakashan, 2e,2002
2. Khan. M. Y & Jain. P. K.,Financial Management, Tata Swril InfotechGraw Hill, 4e, 2004.
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3. K. Aswathappa & K. Sridhar Bhatt,Production and Operations Management 9th Edition, 2007.
WEBSITES 1. www.swrilinfotech.net 2. www.swrilmatts.in 3. www.google.com 4. www.wikipedia.com
WEEKLY REPORT I got permission to do a project in Swril Infotech Pvt Ltd. Later I informed the research topic and went through the overview of the company. I referred the research methodology books for reference. Second week
First week
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Third week
This week I collected secondary data related to inventory analysis. Collected company balance sheet and P&L a/c (for 3 years). This week I started analyzing data using financial tools such as tables graphs and chart of the analyzed data and interpreting the data, with the help of tables and chart. I approached my guide for his opinion and guidance for drawing conclusion. I took the soft copy and showed it to the external guide.
Fourth week
Fifth week
Sixth week
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INVENTORY MANAGEMENT

KARNATAKA STATE OPEN UNIVERSITY

KARNATAKA STATE OPEN UNIVERSITY

KARNATAKA STATE OPEN UNIVERSITY

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Polymer Blinds S.No Products 1 2 3 4 EX 700 EX 701 EX 702 EX 703

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Creamy EX 705 Ivory Polymer Roman/Roller Customized 183 cms (B)

Horizontal retractable single door

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SUN SCREENS Sun screens BASDEN 2000 SERIES

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Harmful Soluble Lead Substances (mg/m3)

2005 (White/Pearl Grey)

2101 (Light Grey/Light Grey)

Sun screens BASDEN 4200 SERIES

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INVENTORY MANAGEMENT 4201 (White/White)

4205 (White/Pearl Grey)

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Selecting the raw materials as per customer needs

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Stage 4. Stage 3. Width cutting Cord locking process

Stage 5 Measurement checking

Stage 6 Quality checking

Dispatching INFRASTRUCTURAL FACILITIES

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1.3 INTRODUCTION INVENTORY MANAGEMENT

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Minimum stock level:

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1.4 REVIEW OF LITERATURE

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