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SYNOPSIS

On
“A STUDY ON INVENTORY MANAGEMENT AND COST CONTROL
PROCEDURE AT TOYOTA KIRLOSKAR AUTO PARTS PRIVATE
LIMITED.”

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF

BANGALORE UNIVERSITY

By

YATHISH B

Reg. No: 17KXCMD103

Under the guidance of

Internal Guide: External Guide:


Mrs. Shreelatha H R Mr. Chandrasekhar P
Assistant Professor Manager
Surana College “Toyota Kirloskar Auto Parts Private Limited”

SURANA COLLEGE POST GRADUATE DEPARTMENTS


Kengeri, Satellite Town
Bangalore-560060
2017-2018
“A STUDY ON INVENTORY MANAGEMENT AND COST CONTROL
PROCEDURE AT TOYOTA KIRLOSKAR AUTO PARTS PRIVATE
LIMITED.”

1. Introduction

1.1 Introduction to Dissertation:

This project is carried out in fourth semester for partial fulfillment of the requirement for
the award of the degree of MBA in Bangalore University undertaking this dissertation we
wanted to show the importance of the costs of providing the necessary information to the
management in order to take the best decisions in crisis conditions. We considered the
following objectives that an enterprise should have in the conditions of an unfavorable
economic environment: the importance of the costs with the wages in the cost structure
of the enterprise.

1.2 Topic Chosen for the study:

Researcher has chosen “A Study on Inventory Management and Cost Control Procedure
at Toyota Kirloskar Auto Parts Private Limited.” as the topic for the research.

Inventory management for companies with complex supply chains and manufacturing
processes, balancing the risks of inventory gluts and shortages is especially difficult. To
achieve these balances, firms have developed two major methods for inventory
management: just-in-time and materials requirement planning: just-in-time (JIT) and
materials requirement planning (MRP).

Cost control in building design and construction. A development budget study is


undertaken to determine the total costs and returns expected from the project. .The
purpose of the cost plan is to allocate the budget to the main elements of the project to
provide a basis for cost control.

2 Theoretical Background of the study

2.1 Need of the Study:

An increase in manufacturing costs and reduced sales revenue which has added to
reduced profitability in the Manufacturing sector has produced the need for me to report
the problem through this research.
2.2 Objectives of the study:

1. To study about the ordering levels for the important components of inventory.
2. To evaluate the inventory management practices of “Toyota Kirloskar Auto Parts
Private Limited.”
3. To understand the requirements needed to ensure an effective cost control system.

2.3 Scope of the Study:

Inventory management is very important for “Toyota Kirloskar Auto Parts Private
Limited”. It enables the business to meet or exceed expectations of the customers by
making the products readily available.

The scope of the study includes the ABC Analysis of Raw Materials, work in progress
and finished goods for four financial years.

This study provides insight to the management of high value items and also brings
attention of management towards movement of ‘A’ class items over period of 4 years

2.4 Research Methodology

The data has been collected through interaction and discussions with the executives
working in the division. Some important information has been collected through couple
of unstructured interviews of executive. Annual reports and other magazines published
by the company are used for collecting the essential information.

2.4.1 Sources of Data:

The data on which this study is based were collected from two major sources:

Primary and secondary data. For the primary data, the researcher had to rely on
questionnaire and oral interview. The questionnaire were administered to factory
employees and suppliers.

The necessary secondary source used were relevant textbooks, journals, periodicals,
seminar papers, annual reports, academic and business publications, newspaper, articles
and magazines.
2.5 Literature Review:

 (Khobragade, 2018)Suggested the Inventory Management System is software which


is helpful for the businesses operate hardware stores, where storeowner keeps the
records of sales and purchase. Mismanaged inventory means frustrated customers, too
much cash tied up in warehouses and slower sales. This project removes the paper
work, human faults, manual delay and speed up process.

 (williams, 2012) Suggested the International Journal of Logistics Management


provides a global forum for the exchange of new ideas and practices in the active field
of logistics management and the developing area of supply chain management. Edited
for broad appeal to working managers and researchers as well as to teachers and
students.

 (Kokate, 2018)Concluded the for high rise structure first of all to calculate the cost
required from drawings. The cost required for structure is more that time need to
decreases the cost by using various methods and techniques. In this research the cost
of structure of domestic building is reduced by using alternate material as well as to
reducing the reactive accident which is reduces the cost of project work.

 (Atnafu, 2018)Concluded the study aimed to empirically examine the impact of


inventory management practice on firms’ attractiveness and structural performance.
Data for the study were collected from 188 micro and small enterprises (MSEs)
operating in the industrial sub-sector and the relationships and suggestion proposed in
the abstract context were tested using structural equation modelling (SEM).

 (Siyanbola, 2013)Concluded the cost control is of utmost importance in every


business concern the negligence of which will affect the incomes at any point of time.
In controlling costs, wastage is removed during the course of production and even
during the administrative, selling and distribution activities. A good system of cost
control begins with the behavior of workers in the organization as workers are
instrumental to the achievement of organizational goals.
 (Tummala, 2016)Concluded the present a novel approach of mixing failure mode and
effect analysis (FMEA) with a supply chain risk management process (SCRMP).
Focusing on the challenging task to assess and manage supply-side risks in global
supply chains, the approach developed offers an effective and affordable way for
firms to provide decision support for the selection of their most appropriate supply
chain design.

 (Akeem, 2017)Suggested the any organization, the major objective is to maximize


profit, but the main constraints facing them are the rise in cost of operation. Due to
this, the cost of production increases and could lead to certain cost control and cost
reduction which make it complex for many organizations to operate as well organized
cost limit of knowledge. The study aims to critically examine and evaluate the
application of cost control and cost reduction in organizational performance and also
to review the budget as an effective tool of cost control and cost reduction.

 (Wanke, 2016)Suggested the evaluates the premise of demand adherence to normal


distribution in inventory management models, showing that this can lead to important
lies, mainly to stock control of very low and low consumption items. The article thus
proposes a framework to help managers control the best stock policy to be accepted
given product demand characteristics.

2.6 Limitations of the Study:

1. Some of the information was kept confidential by the stories department.


2. Detail study about all the material was not possible because of time limit.
3. Study was confined only to the selected components in the stores department.
Capitalization Scheme
Chapter1: Introduction: This chapter deals with an introduction to the Title of the topic
chosen to the subject of organization.
Chapter2: Theoretical background of the study: This chapter explains the research
objectives methodology used for the study.
Chapter3: Analysis and Interpretation: under this chapter the data analysis will be
carried out and interpretation will be presented.
Chapter 4: Findings, and suggestion and conclusion: In this chapter finding,
suggestion, and conclusion will be provided.
Chapter 5: Recommendation and learning outcomes: In this chapter recommendation
will be provided.
References
Akeem, L. B. (2017, 06 26). Effect of Cost Control and Cost Reduction Techniques in
Organizational performance. CscanadaInternational Business and Management, 14, 19-
26.

Atnafu, D. (2018, 06 23). The impact of inventory management practice on. Atnafu &
Balda, Cogent Business & Management, 05, 325.

Khobragade, P. (2018, 04 04). Research paper on Inventory management system.


International Research Journal of Engineering and Technology (IRJET), 05, 252.

Kokate, M. P. (2018, 06 06). Cost Control Techniques for Construction Project.


International Research Journal of Engineering and Technology, 05, 186.

Siyanbola, T. T. (2013, 04 02). The Impact of Cost Control on Manufacturing Industries


profitability. International Journal of Management and Social Sciences Research, 02,
388.

Tummala, V. M. (2016, 07 23). INTEGRATING FMEA WITH THE SUPPLY CHAIN


RISK MANAGEMENT PROCESS TO FACILITATE SUPPLY CHAIN DESIGN
DECISIONS. PRODUCTION AND INVENTORY MANAGEMENT JOURNAL, 19-35.

Wanke, P. (2016). A CONCEPTUAL FRAMEWORK FOR INVENTORY


MANAGEMENT. PRODUCTION AND INVENTORY MANAGEMENT JOURNAL, 123-
145.

williams, B. D. (2012, 08 24). A Review of Inventory Management Research in Major


Logistics Journals. The International Journal of Logistics Management , 365.

Signature of the Student Signature of the Guide