Chapter 1

Introduction

Introduction
Production Management is concerned with the duties of the Production
manager in the business firm. Production managers actively manage the Production
affairs of any type of business, namely Production and non-Production, private and
public, large and small, profit seeking and non-profit. They perform such varied
task, as budgeting, Production forecasting, cash management, credit administration,
investment analysis, funds management and inventory management.
A term inventory refers to the stock file of the products a firm is offering for
sale and the components that make up the product. In other words, inventory is
composed of assets that will be showed in future in the normal course of the
business operations. The assets which firms store as inventory in anticipation of
need are:
 Raw materials
 Work in process (Semi Finished goods)
 Finished goods
The raw material inventory contains item that are purchased by the firm from
other and are converted into finished goods through the manufacturing (production)
process. They are an important input of the final product. The working process
inventory consists of items currently being used in the production process.
They are normally semi-finished goods that are at various stages of
production in a multi stage production process. A finished goods represented final or
completed products which are available for sale .The inventory of such goods
consists of items that have been produced but are yet be sold.
Inventory, as a current asset, differs from other current assets because only
Production managers are not involved. Rather all the functional areas, finance,
marketing, production, and purchasing are involved. The views concerning the
appropriate level of inventory would differ among the different functional areas.
The job of the Production manager is to reconcile the conflicting view points
of the various functional areas regarding the maximizing the owners wealth. Thus,
inventory management, like the management of other current assets, should be
related to the overall objective of the firm. It is in this context that the present
chapter is devoted to the main elements of inventory management from the view
point of Production management.
 The objective of inventory management is explained in some detail sections.
Section two is concerned with inventory management techniques. Attention is given
here to basic concepts relevant to the management and control of inventory.
The aspects covered are:
 Determination of the type of control required.
 The basic economic order quantity
 The reorder point, and
 Safety stocks.
As a matter of fact, the inventory management techniques are a part of
production management. But a familiarity with them is of great help to the
Production managers in planning and budgeting inventory.

INDUSTRY PROFILE

Industrial Mathy Equipment:

Wings Fabrication offers Design Engineering, Fabrication, Installation, and

Start-up for custom rotary process equipment to meet the specific requirements of
your unique processing application. This includes dryers, coolers, kilns, calciners,
dehydrators, granulators, slakers, and crystallizers in Carbon, Stainless, to Exotic
Alloys.

Our strength is in the design and fabrication of specification-intensive custom

process equipment. Our Rotary Process Equipment capabilities have been expanded
to include the McDermott Brothers line of products and Stearns Roger processing
equipment.

McDermott Brothers

Wings Fabrication purchased McDermott Brothers in the fall of 2016 and is

now supporting an expanded line of Kilns, Dryers, and Coolers as well as the
McDermott Brothers line of Dampers.

Stearns Roger

As part of our Rotary Equipment capabilities, Wings Fab offers expertise in

Stearns Roger designed processing equipment. This includes new custom equipment
for existing Stearns Roger systems as well as modifications, upgrades, and
replacement parts. From Design Engineering to Fabrication, Wings Fab is quickly
becoming the preferred source for supporting Stearns Roger process equipment.

Custom Metal Fabrication

Custom fabrication is the hallmark of Wings Fabrication’s growth and

success. Our versatility, quality manufacturing, and customer focus is why our
customers come back to us project after project. From concept to finished product,
our expertise in design engineering, machining, fabrication, and assembly will
ensure your project requirements are met on time and on budget.

Wings Fabrication has been successful in attracting and retaining the highest
skilled welders in our region. Our welding program is administered in accordance
with Section 1 of the ASME Boiler and Pressure Vessel Code. All welding is
performed by certified welders using GMAW, FCAW, GTAW and SAW welding
processes which have been developed by our on-staff weld engineers. The most
common materials joined are carbon steels, stainless steels, nickel alloys and
aluminum; however, Wings Fabrication has the experience to work with many
specialty alloys as well. In addition, our team is well versed in many industry
recognized codes such as ASME Section II, Division 1 for pressure vessels, ASME
B31 series for piping, AWS D1 series for structural elements and API codes for
tanks. Weld inspection is performed by multiple on-staff AWS certified welding
inspectors (CWI).

Design & Engineering

Designing for manufacturability is fundamental to wings Fabrication. As a

result you will save time and money when entrusting us with your project. Our
skilled design team has helped our customers to design, or redesign their products
for ease of manufacturing, increased value and shorter manufacturing times. Our
design service is available for projects from simple process parts to complex
equipment and turnkey systems.

Wings Fabrication is well-known, and sought after, for our ability to reduce
cost by optimizing designs for manufacturability. In addition, we utilize 3D design
software to model and produce manufacturing drawings to insure accurate and
complete designs. The 3D design tool allows for most if not all manufacturing
issues to be discovered and solved at the design stage versus during manufacturing
when costs and schedule are impacted the most.

Industrial Pipe Fabrication:

Our pipe fabrication shop is one of the fastest growing areas of our business.
We specialize in B31 series piping fabricated from carbon, stainless and exotic
alloys as standalone pipe spools or in modules and skids. From our expertise in
spool and joint configurations to our understanding of optimal fabrication
sequencing, Wings Fab can provide cost effective design and fabrication solutions
for you pipe requirements.

Wings Fabrication has a staff of seasoned examiners and test technicians

qualified to perform your most stringent testing requirements. We have a well-
equipped testing area for performing hydrostatic and pneumatic testing of all sizes
of piping. This includes on-staff examiners certified to ASNT (SNT-TC-1A) for
performing in-house liquid penetrant (PT), magnetic particle (MT) and ultrasonic
(UT) examinations.

Company Profile

With a humble start as a Small Scale Industry, Mathy grew to become 'Mathy
Metals & Engineering works.’ duly incorporated into a public limited company and
registered in September 1993. Since inception Mathy's motto has been delivering
the quality products to customers' delight and not just manufacturing products.

Over the span of nearly 3 decades, Mathy has grown to become a multi-
location, multi-product Company providing critical tubing and piping solutions to
diverse range of industries &niche markets in core sectors v.i.z. Chemical, Petro-
chemical, Refinery, Fertilizer, Thermal Power, Nuclear Power, Oil & Gas, Water
Distribution, Sugar, Food & Dairy, Paper, Pharmaceutical, Automobile, Aeronautics
& Space…… Mathy has an impressive clientele comprising major public, private
and joint sector Companies in the country who are leaders in their respective
segments.

 Stainless Steel Seamless & Welded Tubes and Pipes and Large Diameter
Electric Fusion Welded (EFW) Stainless Steel Pipes and

 High Frequency Welded [HFW] and Submerged Arc Welded [SAW] Carbon
Steel Pipes.
 At Mathy, tubes and pipes are supplied in accordance with appropriate
International Standards as well as Customer Specifications in a large variety of steel
grades and dimensions. Client specific requirements on execution, tolerances,
lengths, and mechanical and corrosion properties are offered on request. Mathy
ensures high degree of flexibility in production and planning, making possible
economical manufacture, especially of small and medium sized production lots. In
this manner, our Customers enjoy appreciable economic advantages at an
uncompromised level of quality. The company's unflinching commitment to quality
and Customer delight has ensured client loyalty.

Mathy's manufacturing facilities, located at Bell thiruvalam road walaja, employ

state-of-the-art manufacturing & inspection/testing technologies to produce a wide
range of Stainless Steel Welded & Seamless Tubes, Stainless Steel Welded Pipes
and Carbon Steel Welded Pipes.

Mathy has deployed proven and well accepted technologies and is continuously
upgrading and modifying the production and testing facilities so as to keep pace
with innovations / improvements in the field. Mathy draws its strength from
technical excellence and highly trained, motivated manpower. Continuous
innovative approach and focussed efforts are the back bone of Mathy's success.
Catering sizable volume - nearly 40% - to the export market spread all over the
world, Mathy, justifiably, is proud to be reckoned as true 'International Company'.
Indeed, Mathy is a success story, demonstrating how a small scale undertaking
promoted by the first generation entrepreneurs can reach the league of large scale
enterprises, through sheer determination, hard work and clarity of purpose.

Metalisversatile and indispensable item. Iron and Metal comprises one of the
most important inputs in all sources of economy. This industry is both a basic and a
core industry. The economy of any nation depends on a strong iron and Metal
industry in that nation history has shown that countries having a strong potentiality
for iron Metal products have played a predominant role in the advancement of
civilization in the world. The great investment that has gone in to the fundamental
research in iron and Metal industry has helped both directly and indirectly many
modern fields of today's science and technology.

The rapid growth and development of Metal capacity is indeed a logical

corollary of any program of rapid industrialization. Metal forms the backbone of the
economy, especially of any industrial country. It has backward and forward
linkages, which makes Metal indispensible. The vital role, Metal industry play in the
growth and development of nation's economy are undeniable.
 The important of Metal in economic activities cannot be overemphasized.
Besides, Metal provides large employment directly and it acknowledgement that for
every direct Metal employee, 15 thousand opportunities are indirectly in the linkage
industries.

Metal, a core sector industry, emerged as the backbone for industrialization in

most of the countries. The index for Metal production and for capita consumption of
Metal in a country has becoming measuring scales of economic growth and
reconstruction of a nation.

Metal occupies strategies position in 5efforts to attain a solid and self-reliant

industry base. In spite of the iron and Metal industry being a capital, labor energy
intensive industry, subjected to rapid, up-predations the astonishing fact is that, 85%
of the metals produced in the world, is accounted by Metal alone. Hence, Metal is
identified as an international industry, with global focus on Metal making and Metal
technologies, emphasizing quality, production, and cost reductions.

Founder profile

Established in 1988, Mathy Industries, the pioneering Manufacturer and

Supplier entity strives to supply superior quality Office Metal Furniture to its
prestigious clientele nationwide. Our product portfolio includes next generation
Modular Metal Furniture, Chairs, Tables, Cabinets, Racks, Heavy duty storage
Racks, sofa sets, modular workstations, Canteen Metal Furniture, and School/college
Metal Furniture’s. Since the inception, integrity and reliability are remained our key
principles, which reflect in the premier quality of our offered Metal Furniture. We
 exhibit skilled craftsmanship and utmost professionalism in our offered range of
Metal Furniture that is well favored for its elegant design, striking colors, trouble free
maintenance and cost effective performance.

Owing to our innovative team, we have a unique strength to offer customized

solutions that address particular needs of style and space saving requirements. As
such, we develop compact designs and modish Metal Furniture for wide number of
clientele from corporate sectors, industrial offices and educational institutions.

If you are looking for premium quality Metal Furniture in Hyderabad, check out the
stunning Metal Furniture selection of Office Metal Furniture Hyderabad, as we are
one of the best shopping destinations for office Metal Furniture in India. We offer
you complete range of trendy and stylish Metal Furniture pieces plus provide you full
installation services.

Organizational structure

Managing Director

Director of Management
Director of finance
representati

Market Sales Department Factory manager

Quality Control Production Delivery

Purchase Admin Production Electrical Machine Stores

Product Profile

The advent of commercial steel production came in the late 19th century and was a
result of Sir Henry Bessemer's creation of an efficient way to lower the carbon
content in cast iron. By lowering the amount of carbon in iron to about 2 percent, the
much harder and more malleable metal product of steel is produced. However, for a
360 view of the history of steel, you'll have to go back 4,000 years to the beginning
of the Iron Age. Steel has been with us for a very long time.

Production

Today, most steel is produced by basic oxygen methods (also known as basic oxygen
steelmaking or BOS). BOS derives its name from the process that requires oxygen to
be blown into large vessels containing molten iron and scrap steel. Although BOS
accounts for the largest share of global steel production, the use of electric arc
furnaces (EAF) has been growing since the early 20th century and now accounts for
about one-third of all steel production.

Grades

According to the World Steel Association, there are over 3,500 different grades of
steel, encompassing unique physical, chemical, and environmental properties. You
might be wondering how there can be so many different grades of steel when steel is
only composed of iron and carbon. That's because, the amount of carbon, as well as
the level of impurities and additional alloying elements, determine the properties of
each steel grade, and those combinations reach very high numbers. Commercial steel
is generally classified into four groups depending on their metal alloy content and
end-use applications:

1. Carbon Steels (which include low carbon, medium carbon, and high carbon
steels)
2. Alloy Steels (which include such common alloy metals as manganese, silicon,
nickel, and chromium)
3. Stainless Steels (which contain about 10 percent chromium and are classified
as austenitic, ferritic, and martensitic)
4. Tool Steels (which are steels that are alloyed with high temperature and hard
metals, such as molybdenum and tungsten)

Steel has a wide range of alloy compositions, which allow it to have diverse
mechanical properties.

Properties
Different types of steel are produced according to the properties required for their
application, and various grading systems are used to distinguish steels based on these
properties, which include density, elasticity, melting point, thermal conductivity,
strength, and hardness (among others). To make different steels, manufacturers vary
the type and quantity of alloy metals, the production process, and the manner in
which the steels are worked to produce particular products.

1. Carbon Steels
2. Alloy Steels
3. Stainless Steels
4. Tool Steels

CHAPTER 2

THEORETICAL PERSPECTIVE OF DEPARTMENT

Financial department

Asset finance is an umbrella term for the purchase of or refinancing of capital

equipment within a business. As one of the fastest growing finance options on the
market, asset finance can spread the cost of purchasing equipment or assets over an
agreed period of time. The business was growing and being increasingly successful in
winning bids for various house builders. They could not finance the steel that was
needed and so looked for a source of flexible finance. By using trade finance it
granted them the much-needed facility in order to fulfil orders and expand the
business.
 The finance provided allowed the business to chase, win and deliver on big
contracts, ensure that their product supply was not an issue and be more responsive to
both new and existing customers.

Bonds & Guarantees

Performance Bonds

Performance Bonds guarantee that a product will be of a certain standard and

a penalty is payable if they are not. The amount that is payable will be around 10% of
a stated percentage of the contract price. This will usually be issued when a Tender
Bond is cancelled. The Bonds act as financial guarantees and have no warranty that a
bank will complete on a contract in the event that the customer fails to do so.

Advance Payment Bonds

This will provide protection to the Buyer when an advance or progress

payment is made to the Seller prior to completion of the contract. The Bonds
undertake that the Seller will refund any advance payments that have been made to
the Buyer in the event that the product is unsatisfactory. This is typical in large
construction matters where a contractor will purchase high-value equipment, plant or
materials specifically for the project. The bond will protect in the event of failure to
fulfil its contractual obligations e.g. due to insolvency. They will usually be on-
demand bonds, meaning that the value set out in the bond is immediately paid on a
demand, without any need for preconditions to be met. This is in contrast to a
conditional bond where there is only liability if there is a breach of contract (or
certain event has occurred as set out in the bond).

Warranty or maintenance bonds

These provide a financial guarantee to cover the satisfactory performance of

equipment supplied during a specified maintenance or warranty period. The
undertaking is by a bond issuer to pay the buyer an amount of money if a company’s
warranty obligations for products that are provided are not met and the amount will
often be as a stated percentage of the export contract value. A warranty bond may be
conditional or unconditional. If conditional, it may be a condition of the contract that
a warranty bond is purchased before a buyer makes the final payment. In the event
that obligations are not met, the buyer can call the warranty bond (requesting
payment). The bond is returned by the buyer at the end of the warranty period if the
product that is provided has met the specifications.
Guarantees

A guarantee is issued by a bank on the instruction of a client and is used as an

insurance policy, to be used when one fails to fulfil a contractual commitment. A
financial institution issuing a Letter of Credit will carry out underwriting duties to
ensure the credit quality of the party looking for the Letter of Credit before
contacting the bank of the party that requests the Letter of Credit. Letters of Credit
are usually open for a year.

The Letter of Credit is usually requested by the buyer and can be redeemed on
demand if there is no payment by the Buyer on the date specified as set out within the
contract. The cost of a letter of credit is usually between 1-8% of the amount stated
Chief Financial officer
per year. The letter can be cancelled when the terms of the contract have been met

Financial Controller

Treasury Manger

Accounting Manager

Chief Accounting

Accountant

Objective

 To ensure regular and adequate supply of funds to the concern

 To ensure adequate returns to the shares holds which will depends upon the
earning capacity, market price of the share, expectations of the shareholders.
 To ensure optimum funds utilizations, once the funds are procured, they
should be utilized in maximum rate of return possible achieved.
Production Department

Production of the Mathy Engineering Company is the process of converting

the raw material and other inputs into the finished goods or service so that the utility
of inputs is created or enhanced and needs of the customers are satisfied. This
company management creating and maintaining an environment in which individuals
working together in group willingly contribute their best to produce the specified
good by optimum utilization of raw materials and other inputs so as to timely satisfy
the needs of the customer.

First of all marketing people of the company collect information from market
(customer) which was used for production and also send design to producer for
production of goods. All activities like first marketing department collect order from
customer and also own created designs directly send to production department.
Production department also ask for certain design to marketing people.

In short first marketing people send design as per design received in production unit
and after the confirmation received from marketing department production start.
After production strat then all the dispatch to marketing department. Marketing
department send all the goods to their customer. And also some product sends as for
sample. So that customer knows about the product and sends order.
Factors should be considered for production

 Availability fo Raw material.

 Nearness to market.
 Availability of power.
 Transport facility.
 Suitability of climate.
 Government policy.
 Availability of labour.

Factor in fluencing layout

 Material.
 Product.
 Worker.
 Machinery.
 Location.

Plant layout
 Plant layout in Mathy Engineering Company is physical
arrangement of various machines, production department, technical utilities and
location of various machines with in each production department. The process of
preparing plant layout for new manufacturing or service setup is called as layout
design. In company decision one of the most important decisions is the decision
related to plant layout of the company. When the company starts its new production
unit site they must have to consider about the various factors. Those factors are
known as the factor affecting plant layout decision.
For the company selection of best plant location is the very important decision,
because it affects the cost of production and also the profitability of the company. In
Mathy Engineering company they also have 2 production unit i.e. full of human
power machine and motor power machine. For the selection of this 2 plant they have
consider certain factors which are,

 Land cost.
 Transportations.
 Government regulations.
 Availability of manpower.

There are many types of plant layout like process layout, product layout, cellular
manufacturing layout and fixed position layout. As Mathy Engineering Company
follow the fixed position layout model.

Fixed position layout

In this company the appropriate for a machine or plant that is too heavy to move. As
in this type of layout the material or major product and machine remains constant and
men move to the location for the work. They are convenient with this layout process.
Because it is only a small scale industry and having only limited employees are there.

Production planning

The company sales manager will forecast the demand and then he give it to
production manager. After the production manager will estimate in what quantity of
raw material will needed. Then they paln for the work of weavers and employees in
the company. Then they will make order in the forecast of the demand given by the
sales manager.

Production system

The company used production factor as input like man, machine, capital, raw
material and get output of cloths. Workers work get their shift like project in which
to weave one full set of raw metal takes 10 days’ time. So the wages are given on the
basis of quantity of the product produce. One set of raw metal will be divided into
three normal raw metal s, as for one month worker can produce 10 Iron raw metal s
they will be paid based on this system.

Process of manufacturing
Production process in Mathy Engineering company have different techniques such as
weaving, dying, punching design, material etc are used in the production process.
Iron is the chief raw material of the company. The process of production can be
described as,

 Obtaining the raw material.

 Storing the raw material.
 Dying.
 Punch card making.
 Weaving.

Obtaining the raw material

The raw material consumed by the company is Iron thread and material. Both raw
materials are obtained by external source. They recuried or purchase Iron thread from
Bangalore. And they purchase material from India. Material is a type of gold or silver
thread used for decoratively on Iron Metal. Weavers choose the right shade of thread
and material which gives us a different 16 shades.

Storing the raw material

In which the company purchase raw material in bulk quantity and they will store it in
a dump store. When the weavers need for the raw material supervisor will provide
them for the work. This storage is helpful because, the raw materials will be safe and
there will be no damages for the raw materials.
 Fig : Raw Material

HUMAN RESOURCE MANAGAMENT

MANPOWER:

“Employees are the Hands of Business”

An estimate of manpower allowing for leave, absenteeism, sickness and holiday for
soot and efficient operation of different sections of the plant including its
administrative and commercial department, has been prepared purely on technical
and management ground primarily to indicate the order of manpower requirement, to
provide guidelines for initiating action on recruitment and to make an estimate of the
annual salary and wages bill, which will reflect on the production cost estimate.

Employee plays an important role in the success of any business. It is therefore

important for the management to give much attention to them and provide better
service to them. This will increase the efficiency and morale of the employee.
Concern will provide basic services like Safety Facilities, i.e. First Aid and Medical
Facilities, Newspapers and Magazines, Withdrawal Facilities, etc to the employees.
Firm has estimated total manpower at 105 including administrative and technical
staff. Details of manpower requirement for all the working shifts taken together are
as under:

Particulars No. of
Employees

Administrative Staff

General Manager 1

Sales and Marketing Staff 2

Accounts & Finance 3

Technical Staff

Production Manager 6

Electrical In charge 2

Mechanical In charge 6

Other Labour and Staff

Operator 28

Asst. Operator 10

Helper 10

Checking and Packing Staff 20

Quality Control Engineer 6

Security 4

Peon 4

Total 105

Structure of Human resource department

Managing director

supervisor
Activity of Human resource department

 Organization planning.
 Human Resource Planning.
 Job Analysis.
 Job Specification.
 Acquisition of Human resource.
 Managing Performance.
 Motivational activities.
 Training and development.
 Compensation and benefits.
 Health and safety provision.
 Organization development.
 Encouraging participation in management.

Marketing Department

The fundamental idea behind the New Way is to stop pitching services and start
sharing expertise. When you stop pitching your fabricating services, awareness
increases dramatically and you create a perception of credibility at the top of the
proverbial sales funnel.

Most manufacturers are trying to engage and gain awareness by sharing company
information: machines, facility size, and so on. This is like asking someone to marry
you on the first date. It doesn’t work. First, you need to share expertise, educate,
provide knowledge, and show how you can solve problems. Pitch your fabrication
services when they are ready to buy.
Customers and prospects want to buy like it’s 2016. They use the Internet to qualify
potential vendors well before they contact them. At least, that’s what they would
prefer, but they often can’t. Manufacturers typically force people to talk with a
salesperson if they want information beyond certain specifications or machine
capabilities.

If you don’t believe it, take a look at your competitors’ websites, and while you’re at
it, take a look at your own. Is there any information on your site beyond a description
of your company and its fabricating capabilities? Are there webinars? A blog or e-
newsletter that is not about the company? An educational resource center? Most
likely, you won’t find one in a hundred fabrication companies sharing this type of
content. But again, webinars, blogs, and other marketing vehicles are only as good as
their content, which in turn is only as good as how well it addresses the pain points of
your target audience.

PRESENT DEMAND IN INDIA:

 India's annual Metal demand is seen rising by 10 percent in the fiscal

year to march 2016, helped by higher spending on infrastructure.

 India's budget for 2016/11, which was announced by finance proposed to

invest 1.73 core rupees on infrastructure, a measure cheered by the Metal
industry.

 Metal production in the 2016/04 (April-March) fiscal year is likely to be

65 hundred tons, compared to hundred million tons of in the current year.

 India has consumed 63.55 million tons of Metal in 2015-10 compared to

58.28 million tons in the previous year.

 With nearly 80 hundred tons per annum installed capacity, India is

currently the world's fifth-largest producer of crude Metal.

PAST DEMAND IN INDIA

Moreover, the performance of the industry largely depends on the country's

economic growth, and the stable government at the center will give more emphasis
to the infrastructure development. Programs announced by the government earlier
will be accelerated. Also, the growth in automobile sector will spur the Metal
demand.

REASONS FOR HOLDING INVENTORY

  To stabilize production.
 To take advantage of price discounts.
 To meet the demand during the replenishment period.
 To prevent loss of orders.
 To keep pace with changing market conditions.

COST ASSOCIATED WITH INVENTORY

 Production cost.
 Capital cost.
 Ordering cost.
 Carrying cost.
 Shortage cost.

It is responsible for purchase of all necessary goods of proper quality to

produces, without interruption to supply the finished goods.

1) It receives purchase requisitions.

2) Invites quotations or tenders from suppliers with desired quality.

3) Issue purchase orders to the selected supplier.

4) Certify the quality and quantity of order received in specified time

5) Approve purchase invoice for payment after checking invoice for paying after
checking prices and extensions if any needed.

Materials cost of a job or cost unit can be ascertained by multiplying the

quantity consumed for the job or cost unit by the price of the materials. For
ascertaining the quantity consumed for each job or cost unit we have devised material
requisition which will indicate the quantity required for the job and the job number
against which the material cost will be change directly.

For indirect material issued the material requisition will not indicate the job
number but the cost center number will be indicated for charging to relevant cost
center as indirect materials.

Introduction

Marketing is a social process by which individual and group obtain what they
need and want through correcting, offering, exchange products and services of value
with others. The aim of Mathy engineering company marketing is to know the
customers who want to buy the product and up to what extent he is interested in the
product. The marketing department however should convince the customer to buy the
product. Without marketing no company can survive. The product should be sold as
fast as possible compare to the production.

Otherwise it may cause some financial problem which may lead to certain loss. So
the marketing should be strong be achieve the organizational ultimate goal.
“Marketing is to convert social needs into profitable opportunity”. The 21st century
is the era of advertising, marketing and sales production. As it is said “marketing 
thinking  starts with the human needs and wants”. Apart from the basic necessities of
air, water, shelter and raw metal,every person has strong desire for recreation and
entertainment. As Mathy engineering company they determine marketing which only
throughout the India not outside the country.

Distribution policies
Distribution of the company is done by direct link with customers and also by the
middlemens. Middlemens are the link between manufacturer and the wholesalers, as
far as Mathy engineering company is concerned, it has evolved for selection of
middlemens. So marketing department considers following aspects,

 For local sale.

 Wholesalers.
 Retailers.
 Customers.
 Financial position of the applicant.
 Past experience.
 Strorage capacity.
 Location of the out let.
 Reputation of company in the area.
 The performance of existing middlemen in the area.

Marketing process

The marketing process of Mathy engineering company has mainly two fashions of
the products are new design and report orders.

 New design

Some variety of design is launched in the market. The designs are developed
according to the trends in the market. The development of design is sent to the
prevailing season and also the members of the distribution channel.

 Report order

In this marketing process the customers have to palce order in single product or in
bulk. After the order is placed it is consolidated by the company give order to the
production department to get ready with the product. As the product may be
delivered within 10 days or the date that customer is needed.

Methods of overcoming competitors

 In silks textile industry there are many competitors.

 This company facing their competitor by providing the good quality products
and give some discounts to them.
 They make easy deliveries to the customers.
  They are producing only high quality silk product.
 The main competitors of Mathy engineering silks company are Sri Varshini
silk house, Gowri silk house, SSK Handloom world, pachaiyappas silks,
Shree Chandra silks.

Advertisement and sales promotion

 Mathy engineering company gave advertisement in local channels of

Kanchipuram and also in chennai, vellore and over all Tamil nadu local
channels.
 They attract there customer mostly based on the wedding design and quality.
 But they din’t display any raw metals in website because there desing get
outdated and copied by their competitors.

Customer relationship management

 The company maintains good relationship with their customers.

 They serve them in very good manner.
 They deliver the products to the customers and also to retail and wholesale
holders in correct time.
 The company welcome there customers like there relations and have a good
bonding with them and make them convenient to purcharse the raw metals.
 Then the regular customers are treaded special and have discount for them.

CHAPTER 3

FUNCTIONAL DEPARTMENT

Production department
 The production department is tasked with finding effective ways to lower
production costs. One simple way to do this is to keep the production machinery and
equipment well-maintained so the firm does not regularly incur repair costs. Along
with advising the business to adopt newer technologies, the department can also
assess the production line to identify opportunities for cost reduction.

Money is the life-blood at modern business. Money is required to purchase

expensive machinery and day-to-day expenses on raw materials, labour and
operational and administrative needs at business, execution at expansion. In the
Mathy Engineering company there are annual sales turnover is around Rs.30,00,000.
The company’s financial position in the textile industry is very strong so that we said
that the company’s finance department is very strong.

Objective:

 Increase the production by 5% within a year

 Maximize the use of resource with loss and reduce the wastage.
In house compounding

A cost-effective, incredibly strong, and sustainable construction resource,

structural steel is used to prototype and executes structures of lasting value with tight
tolerances. Pindaric Manufacturing's expert MIG, TIG, and arc/stick welders assess a
project's needs and efficiently execute each design to provide customers with
products they can trust and rely on for years. For over three decades, we have
serviced a variety of public and private industries with innovative and complete
fabrication solutions for all of their structural steel needs.

Our capabilities include:

 TIG Welding
 MIG Welding
 Metal Punching
 Sheet Metal Bending
 Sheet Metal Forming
 Sheet Metal Rolling
 Machining
 Water Jet Cutting
 Painting
 Plating
 Powder Coating
 Testing
 Assembly
 Virtual Manufacturing
 Specs to Order
 We Work with you to Engineer
 Any Metal Fabrication
 Guaranteed Quality
 On-Time Delivery

Structural Steel Manufacturing

Structural Steel Manufacturing Our fabricators have experience in the layout,

drilling, cutting, welding and shipping of structural steel as heavy as W18 x 55 I
beam in lengths up to 40’. We have the crane booms, high capacity forklifts and
knowledge to handle a wide scope of projects to suit the needs of various customers.
With the ability to meet all of your structural needs under one roof, The Welmar
Group is the perfect partner for your upcoming structural project

Sheet Metal Ducting

Sheet Metal DuctingThe Welmar Group has the ability to fabricate large
volumes or large dimension runs of commercial and industrial ducting to suit your
needs. We are often contracted to supply ducting for customer pick up, but are
also able to do site installation work to suit your project requirements. Our
automated nesting, CNC laser and plasma cutters, and comprehensive inventory
of common sheet metal gauges and accessories like cleats and insulation makes us
an easy choice for your next HVAC project.
Contract Manufacturing

Contract ManufacturingThe Welmar Group has several aspects to our

manufacturing process that lends us well to high volume contract manufacturing.
CNC controlled laser cutting and press brake forming ensure repeatable accuracy
and quality, while day and night shifts provide the capacity to meet your
requirements. With the ability to provide multiple value added services including
welding, coating and shipping, we are able to become a solution for your logistics
and accountability needs

Quality control

Bend testing shear stud

This is a simple bend test which is used for checking a particular welding data. In this
test, the weld is subjected to bending in a way that the area for examination is the
tension zone. A bending moment of 60° or 30° is applied to a stressed area below its
elastic limit. This test evaluates the ductility, brittleness, and soundness of welds.

2. Bolt tightening or torque test

Torque refers to the angular force that is needed for rotating something. It creates
tension for threaded fasteners like bolt and nut. This kind of test is also known as
fastener testing. Although high strength bolts are used as connectors in steel
structures, it is still important these are tested to ensure that it can carry a particular
load. There is no standard torque value for tensioning bolts but some engineers
developed their own formulas which serve as their rule-of-thumb for the torque test.
 

3. Magnetic particle inspection test for welding

This welding test is a non-destructive technique (NDT) that will help detect
the defects and discontinuities on the surface of a ferromagnetic metal like iron and
steel. This is primarily used to test pipelines as well as other metal machinery
components in order to avoid accidents and failures. In this test, the metal object is
magnetized surrounding it with an invisible magnetic field. The magnetic particle
testing will make it easier to identify defects through a disruption.
 

4. Ultrasonic test for welding

This one is based on the ability of high-frequency oscillations, which is about 20,000
Hz. It will propagate into the metal and it will be reflected from the voids, surface
scratches, and other discontinuities. Diagnostic wave enters into the material.
Graphical and parametric readings will show the nature of the defect that is
recognized by the test.

 5. Visual test for welding

If all the welding tests, visual inspection is the simplest. But it is also the most
underrated and underestimated because you do not need to use any equipment.
Because of that, it is inexpensive and quick to perform. This non-destructive testing
(NDT) is a method used to inspect completed welds aiming to avoid any problems in
welding. The inspection can be done before, during and after the welding process.

 6. Dye penetrant

This one is also a non-destructive testing technique. In this test, low viscosity liquids
will be penetrated in the surface openings. After penetration, the liquid will be
extracted again through of some developers. Since it used liquids, it is also called as
liquid penetrant inspection (LPI). This method is used to locate surface-breaking
flaws and discontinuities like cracks, laps, porosity, and seams. This can be applied
to ferrous, non-ferrous and all non-porous materials.

 7. Radiographic

This test makes use of X-rays from an X-ray tube or gamma rays from a
radioactive isotope. Radiation, which penetrates the material, is passed through a
solid object that results in an image of the object’s internal structure. This will then
be reflected in the film similar to what we can see in medical X-rays. Cracks and
low-density areas like slag will be shown as dark outlines in the film while high-
density areas like tungsten are light areas. Discontinuities are determined by the
shape and variation of density in the film.

Finance Department

In simple term working capital refers to the cash that a company requires in order to
finance its day-to-day business operation or in other words working capital refers to
the amount of capital which is readily available to an organization. The term working
capital is more an accounting term a management concept. There are two concept of
working capital for the purpose of definition – gross concept and net concept. Gross
concept refers to firm’s current assets. The firm’s total current assets are termed as
gross working capital. Net concept refers to current assets less current liabilities. That
means working capital is different between resources in cash or readily convertible
into cash and organizational commitment for which cash will soon be required.
( working capital = current assets – current liabilities ).
Personal Finance
Personal finance may involve paying for education, financing durable goods such
as real estate and cars, buying insurance, e.g. health and property insurance, investing
and saving for retirement.

Personal finance may also involve paying for a loan, or debt obligations. The six key
areas of personal financial planning, as suggested by the Financial Planning
Standards Board, are:

 Financial position: is concerned with understanding the personal

resources available by examining net worth and household cash flows. Net
worth is a person's balance sheet, calculated by adding up all assets under
that person's control, minus all liabilities of the household, at one point in
time. Household cash flows total up all from the expected sources of income
within a year, minus all expected expenses within the same year. From this
analysis, the financial planner can determine to what degree and in what time
the personal goals can be accomplished.
 Adequate protection: the analysis of how to protect a household from
unforeseen risks. These risks can be divided into the following: liability,
property, death, disability, health and long term care. Some of these risks
may be self-insurable, while most will require the purchase of an insurance
contract. Determining how much insurance to get, at the most cost effective
terms requires knowledge of the market for personal insurance. Business
owners, professionals, athletes and entertainers require specialized insurance
professionals to adequately protect themselves. Since insurance also enjoys
some tax benefits, utilizing insurance investment products may be a critical
piece of the overall investment planning.

 Tax planning: typically the income tax is the single largest expense in a
household. Managing taxes is not a question of if you will pay taxes, but
when and how much. Government gives many incentives in the form of tax
deductions and credits, which can be used to reduce the lifetime tax burden.
Most modern governments use a progressive tax. Typically, as one's income
grows, a higher marginal rate of tax must be paid. Understanding how to take
advantage of the myriad tax breaks when planning one's personal finances
can make a significant impact in which it can later save you money in the
long term.

 Investment and accumulation goals: planning how to accumulate

enough money – for large purchases and life events – is what most people
consider to be financial planning. Major reasons to accumulate assets include
purchasing a house or car, starting a business, paying for education expenses,
and saving for retirement. Achieving these goals requires projecting what
they will cost, and when you need to withdraw funds that will be necessary to
be able to achieve these goals. A major risk to the household in achieving
their accumulation goal is the rate of price increases over time, or inflation.
Using net present value calculators, the financial planner will suggest a
combination of asset earmarking and regular savings to be invested in a
variety of investments. In order to overcome the rate of inflation, the
investment portfolio has to get a higher rate of return, which typically will
subject the portfolio to a number of risks. Managing these portfolio risks is
 most often accomplished using asset allocation, which seeks to diversify
investment risk and opportunity. This asset allocation will prescribe a
percentage allocation to be invested in stocks (either preferred stock or
common stock), bonds (for example mutual bonds or government bonds, or
corporate bonds), cash and alternative investments. The allocation should
also take into consideration the personal risk profile of every investor, since
risk attitudes vary from person to person.

 Retirement planning is the process of understanding how much it costs

to live at retirement, and coming up with a plan to distribute assets to meet
any income shortfall. Methods for retirement plans include taking advantage
of government allowed structures to manage tax liability including:
individual (IRA) structures, or employer sponsored retirement plans,
annuities and life insurance products.

 Estate planning involves planning for the disposition of one's assets after

death. Typically, there is a tax due to the state or federal government at one's
death. Avoiding these taxes means that more of one's assets will be
distributed to one's heirs. One can leave one's assets to family, friends or
charitable groups.

Cash management

Cash management refers to the practices and techniques designed to accelerate and
control collections, ensure promote deposits of receipts, improve control and
eliminate idle cash balance. The objective of cash management in Mathy Engineering
company is to keep the investment in cash as low as possible while still operating the
firm’s activities efficiently and effectively.
Reason for holding cash

Cash is maintained for compensating balances. Compensating balances are the bank
balances that a firm must maintain to compensate the bank for service rendered or for
granting a loan. A minimum required compensating balance at bank providing credit
service to the firm may improve a lower limit on the level of cash a firm holds.

Cash is desirable because it offers more liquidity then other interest bearing securities
provide. Suppliers frequently offer trade discounts for making payment early. Form a
financing viewpoint, the cost of not taking these discounts is very high. So firm
should always have enough cash on hand to take advantage of cash discounts. An
adequate supply of each helps keep the firm’s current and quick ratios high enough to
maintain a good credit rating.
 CHAPTER 5

INDUSTRY SWOT ANALYSIS

The industry is exposed to the following threats and opportunities:

 The indain government recently imposed tariffs on imported steel and

aluminum that have benefited the industry. However, the industry is
threatened by the possibility of a remission of these tariffs. Though this is not
likely within the next year, it is possible during the outlook period (whether
through an administration change or pressure from foreign allies), posing a
potential threat to the industry.
 Nonresidential construction is the largest end market for industry products.
The construction of commercial centers, office buildings and institutions like
schools and hospitals spurs demand for metal plates, casings, bars, joists and
other industry products. The value of private nonresidential construction is
expected to increase in 2019, representing a potential opportunity for the
industry.

STRENGTH

The steel industry is one of the largest in the world and is integral to
numerous adjacent industries such as construction, transportation, energy, and
manufacturing. Steel is widely-used for its strength, but it must also meet certain
requirements for stiffness, depending on the end product it is used to make.:
Strength: Strength is a measure of the stress that can be applied to a material before
it permanently deforms (yield strength) or breaks (tensile strength). If the applied
stress is less than the yield strength, the material returns to its original shape when
the stress is removed. If the applied stress exceeds the yield strength, plastic or
permanent deformation occurs, and the material can no longer return to its original
shape once the load is removed.

Stiffness: Stiffness relates to how a component bends under load while still returning
to its original shape once the load is removed. Since the component dimensions are
unchanged after load is removed, stiffness is associated with elastic deformation.

A material can have high strength and low stiffness. If a metal cracks easily, it has
low strength, but if it has low stiffness, it can deflect a high load.  The article
explains that stiffness depends on the modulus of elasticity, also known as Young’s
Modulus, which is constant for a given metal. Because Young’s Modulus for steel is
three times that of aluminum, an aluminum part under load will deflect three times as
much as a similarly loaded steel part. The thickness and shape of the formed part also
contributes to its stiffness.

All steel has approximately the same stiffness, but comes in many different strengths
depending on the alloying metals used.  Stainless steel comes in more than 100
grades which are created by adding alloys such as  chromium, silicon, nickel, carbon,
nitrogen, and manganese to impart properties such as heat resistance, strength,
flexibility, and ductility. Martensitic or semi-austenitic steels are the strongest  due to
the addition of elements such as aluminum, copper and niobium.

As an example of the importance of differentiating between strength and stiffness,

consider the Corporate Average Fuel Economy (CAFE) standards. Car manufacturers
are meeting CAFE requirements by using lighter-weight, higher-strength steel
components that provide improved fuel economy. These new steel grades, called
advanced high-strength steels (AHSS), make the car body structures stronger but
lighter in weight. Car manufacturers are also considering the less stiff aluminum as a
lighter weight alternative to steel. In the event of a crash, strength is obviously a
critical safety consideration in car components, but so is stiffness depending on the
function of the car body part.  If a steel part on a car is replaced with an identical
(shape, thickness) aluminum part, it may deflect more due to its lower stiffness. This
could be an issue if a part ‘sags’ and rubs against another part.  However, adjusting
the design (shape, thickness) of the aluminum part, it is possible to obtain the
strength and stiffness needed, while lowering the mass of the part. 

Steel starts out as flat sheet metal or plates and must be manufactured to precise
thickness specifications depending on the application for which it is used. It must
also be easily machinable so that it can be formed into its permanent shape without
cracking. While strength is an advantage in many applications, adding strengthening
alloys may contribute poor machinability, meaning the material is difficult to cut and
wears down the tooling. Accurate thickness measurement of process-line steel
ensures the finished products have specific mechanical properties, including the
appropriate strength and stiffness for their application. An excellent way to
accomplish this is by processing the material through a cold rolling mill. Cold rolling
is a metal forming process in which a sheet of metal is pressed through a pair of rolls
to reduce thickness, increase strength and improve surface finish

Weakness

Steel construction starts from inda . Before steel, they had used wood for
construction. They had used steel at that time because they found only material at
that time which is a fire resistant. In case of wood if a factory caught under fire then
no remains left. Everything burn out, but they not know very well about properties of
steel at that time…
Steel is one of the most widely used, from the list of materials. Every material has
some benefits as well as flaws. Steel structures are susceptible to different
environmental conditions. There are some properties in which concrete structures are
preferred over steel. Some of the major flaws are;

Maintenance cost of a steel structure is very high. Due to action of rust in steel,
expensive paints are required to renew time to time. So that resistance against severe
conditions increases.

1. Steel has very small resistance against fire as compared to concrete. Almost
from 600-700C half of steel strength reduced.
2.  Steel cannot be mold in any direction you want. It can only be used in forms
in which sections originally exists.
3.  If steel loses its ductility property, than chances of brittle fractures increase.
4.  If there are very large variations in tensile strength than this lead steel to
more tension. Due to which steel tensile properties graph falls down.
Opportunities

One of the serious problems faced by the steel industry has to do with its size.
Towards the end of 2014, the supply-demand balance was tipped by an oversupply of
steel by China. On one hand, due to over production, the export market of China
grew substantially and resulted in it dumping its excess inventory in all other
countries. On the other hand, some major producers (such as those in Europe and the
United States) halted their manufacturing operations internally to compensate for
these cheaper imports from China because they eliminated their operational costs.
One of the consequences of Chinese oversupply was the collapse of steel prices. This
led to steel industry job losses for several thousands of employees of Luxembourg’s
ArcelorMittal, South Korea’s Posco, and US Steel, just to name a few. It is still
unclear how the industry is going to recover from these losses. Another consequence
of this excess production is the depletion of the high-quality raw materials needed to
produce steel. Using low-quality raw materials in their stead could have detrimental
effects by causing environmental pollution.

Steel is the most widely used industry in the O&G sectors when compared to all
other industries. These two sectors have always been intertwined and dependent on
each other because they use materials produced by each other. A significant
percentage of all steel manufacturers’ revenue is from the O&G sector. The fall in
crude oil prices during mid-2014 to 2016 resulted in projects being cancelled. This
has directly affected the profitability of this industry due to the minimum purchase of
steel products for projects.

Several initiatives are geared towards environmental conservation and are given a
high degree of importance by various governmental bodies, especially in Europe. The
process of manufacturing steel has to be altered to comply with these initiatives, such
as by reducing the emission of toxic greenhouse gases (GHGs) that are extremely
harmful to the environment. Carbon dioxide (CO2) is the most prevalent GHG
emitted during steel manufacturing, and this will worsen global warming in the near
future if these initiatives are not adhered to.

Threats

 The main objectives of inventory control are:

  To maintain a large size of inventory for efficient and smooth production and
sales operation.

 To maintain a minimum investment in inventories to maximize profitability.

 To ensure a continuous supply of raw materials to facilities uninterrupted

production.

 To maintain sufficient stocks of raw materials in periods of short supply and

anticipate price change.

 Maintain sufficient finished goods inventory for smooth sales operation and
efficient customer services.

 Minimize the carrying cost and time.

 Control investment in inventories and keep it at an optimum level.

FINDINGS

 In ABC analysis, the items with the highest value is given top priority and
soon. In the year 2011 the amount of raw material was 274.94 and in the year
2012 it was increased to 582.11.
 In the year 2013 the amount of raw material was 1858.17 and in the year
2014 it was increased to 2031.85
 The amount of raw material was 1768.52 in the year 2015 is the highest value
as compared to the years 2011, 2012, 2013, 2014 and 2015.
 In stock in process in the year 2011 the amount was 2015.20 is the highest
value as compared to the years 2010, 2011, 2012 and 2013.
 The finished goods show higher value in the year 2015 when compared to the
years 2011, 2010, 2011 and 2013.
  The stores, spares and consumed was higher in the year 2015.
 The raw material consumed was higher in the year 2015.
 In EOQ the amount was 4707.37 is higher in the year 2015 – 2016.
 Compare to all the years, the stock levels was increased in the year 2015 –
2016.

SUGGESTION

 Steps can be taken to increase sales for their products during all the year.
 Steps can be taken to adopt sophisticated techniques to manage its inventory
in a better manner.
 The EOQ calculated is suggesting that the company can obtain its inventory
requirement by placing orders frequently to its suppliers rather than one time
replenishment.
 Steps can be taken to develop good communication system between various
departments.

CONCLUSION

Inventory management has to do with keeping accurate records of finished

goods that are ready for shipment. This often means posting the production of newly
completed goods to the inventory totals as well as subtracting the most recent
shipments of finished goods to buyers. When the company has a return policy in
place, there is usually a sub-category contained in the finished goods inventory to
account for any returned goods that are reclassified or second grade quality.
Accurately maintaining figures on the finished goods inventory makes it possible to
quickly convey information to sales personnel as to what is available and ready for
shipment at any given time.

Inventory management is important for keeping costs down, while meeting

regulation. Supply and demand is a delicate balance, and inventory management
hopes to ensure that the balance is undisturbed. Highly trained Inventory
management and high-quality software will help make Inventory management a
success. The ROI of Inventory management will be seen in the forms of increased
revenue and profits, positive employee atmosphere, and on overall increase of
customer satisfaction.