SIP Project RPT

STEEL AUTHORITY OF INDIA LTD.
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A PROJECT REPORT ON A STUDY ON MATERIAL MANAGEMENT SYSTEM AT STEEL AUTHORITY OF INDIA LIMITED I.S.P-BURNPUR
SUBMITTED BY SUBHANKAR SINGHA PGDM - OPERATION MANAGEMENT ROLL NO - 10332
IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT SPECIALISATION OPERATIONS MANAGEMENT INSTITUTE OF INTERNATIONAL BUSINESS & RESEARCH
(2010-2012)
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A PROJECT REPORT ON
A STUDY ON MATERIAL MANAGEMENT SYSTEM AT STEEL AUTHORITY OF INDIA LIMITED I.S.P-BURNPUR SUBMITTED BY SUBHANKAR SINGHA
UNDER THE GUIDANCE OF MR. SAGAR BHADANGE ASST. PROFESSOR I.I.B.R - PUNE MR. Y.S Reddy D.G.M R.M SAIL-I.S.P (BURNPUR)
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF P.G.D.M INSTITUTE OF INTERNATIONAL BUSINESS & RESEARCH
(2010-2012)
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ABSTRACT
Material control means keeping the overall costs associated with having inventory as low as possible without creating problems. Inventories are classified into raw materials, consumables, work in progress and finished goods. When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good".
In this project I have done high valuable items of Canopy. Inventory control, and reduce the carrying and holding cost of the materials.
And the end of my internship session I have reached the suggestion and conclusion.
SUBHANKAR SINGHA Roll No. 10332
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PREFECE
Material has always been a source of money generation and acts as central hub behind mostly all types of production and manufacturing activities in the field of business. I have undertaken this project as part of my course curriculum. The aim of this project is to give corporate exposure and an insight to SAIL, I.S.P Steel Plant. SAIL is Indias largest and one of the leading Steel makers of the world. It has four integrated plants at Durgapur, Bokaro, Bhilai and Rourkela. One subsidiary plant at Burnpur, as well as four alloy steel plant which together have capacity of 12.5 MT (million tons) of crude steel and 3, 70,000 tonnes of special and alloy steel annually. Steel Authority Of India Limited produces a wide range of prime steel products, coal based products and fertilizers.
The secondary products are produced during the production of prime products. Individually marketing is done for the secondary products level at IISCO STEEL PLANT. Thus I tried my level best of using my analytical skills to prepare a project on the study of marketing department of IISCO Steel Plant of Steel Authority Of India Limited as per data collected.
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SELF CERTIFICATE
This is certify that SUBHANKAR SINGHA, student of PGDM of INSTITUTE OF INTERNATIONAL BUSINESS & RESEARCH has successfully accomplished were SUMMER INTERNSHIP PROJECT from 1st June to 20th July 2011 in STEEL AUTHORITY OF INDIA LIMITED IISCO STEEL PLANT under the supervision of me. His efforts were appreciable during the SUMMER INTERNSHIP schedule and achieved the target within stipulated time deadlines provided to him. Hope he gets the best opportunities in future and accomplished all objectives.
THANKING YOU SUBHANKAR SINGHA ROLL NO. 10332
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ACKNOWLEDGMENT
It is my great pleasure to have done PROJECT TRAINING IN MATERIAL DEPARTMENT OF SAIL ISP, BURNPUR. During the project works, I got the opportunity to visit almost every department and meet the following executives, who gave personal attention to me while explaining the functioning of the factory & the organization. As a whole any project is not an outcome of a great experience to learn from them. I would like to express deep gratitude and respect to all for their whole hearted support, without whose help my project would not have been completed.
I would like to thanks from the department of my IISCO STEELPLANT:
1. MR. S.K. PRATIHER D.G.M [H.R.D CENTRE] 2. MR. A.K MONDAL A.G.M [H.R.D CENTRE] 3. MR. KANAD CHATERJEE Jr. Manager [H.R.D CENTRE]
I would also like to express my deepest gratitude to respected
1.
MR. Y.S Reddy [D.G.M - RAW MATERIAL] MR. S. P.BHADANGE [ASST. PROFESSOR, IIBR PUNE]
2.
For his wholehearted support, without his help this report would not have been completed. He guided me through the project and helped in this research process.
Last but not least, I would like to thanks Prof. S.B MATHURE [DIRECTOR], I.I.B.R for allowing me to take up my project through this esteemed institute. THANKING YOU SUBHANKAR SINGHA
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TABLE OF CONTENTS
Chapter No. TITLE Page No.
I.
LIST OF FIGURES
29.
Chapter 1
1.1) 1.2) 1.3) 1.4) 1.5) 1.6) 1.7) 1.8) 1.9) 1.10)
INTRODUCTION
COMPANY PROFILE SAIL MAJOR UNITS CENTRAL UNITS ABOUT SAIL I.S.P FACILITIES AT I.S.P SWOT ANALYSIS OF I.S.P SAIL TODAY TYPES OF ORGANISATION ACTIVITIES MISSION AND VISION OF THE ORGANISATION
1. 2. 5. 6. 7. 9. 10. 12. 13.
14.
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TABLE OF CONTENTS
1.11)
BOARD OF DIRECTORS
15.
Chapter 2 Chapter 3 Chapter 4

1.1) 1.2)
OBJECTIVES AND IMPORTANCE LIMITATION OF THE STUDY RESEARCH METHODOLOGY

DATA COLLECTION METHODS OF DATA ANALYSIS
16. 18.
20. 21. 22.
Chapter 5
1.1) 1.2) 1.3) 1.4) 1.5)
REVIEW OF LITERATURE
INTRODUCTION OF THE STUDY AREAS OF CONCENTRATION PROMOTING SUSTAINABILITY IMPROVING CIRCULATION INFRASTRUCTURE MATERIAL MANAGEMENT WEEK
23. 24. 26. 27. 28. -
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TABLE OF CONTENTS
Chapter 6
1.1) 1.2) i) ii) iii)
EMPIRICAL ANALYSIS
MM MASTER DATA REPORT MM PROCUREMENT AND STOCK REPORT LOGISTICS INFORMATION REPORT (STOCK) PURCHASING IMFORMATION SYSTEM PURCHASING REPORT
29. 32. 34. 35. 36.
iv) v) vi) 1.3) 1.4) 1.5) 1.6) i) ii)
STOCK REPORT PHYSICAL INVENTORY REPORTS MRP REORDER POINT THE BASIC OF RAW MATERIAL YEAR WISE MATERIAL PROFIT FIGURE YEAR WISE NET MATERIAL PROFIT RM ACCOUNTING SYSTEM BY RAILWAY BY GOODS PECEIPT INSPECTION NOTE
37. 39. 40. 41. 42. 43. 44.
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TABLE OF CONTENTS
1.7
RAW MATERIAL DIVISION
45. 48. 53. 54.
Chapter 7 Chapter 8 Chapter 9
FINDING AND SUGGESTION CONCLUSION REFERENCE
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Chapter 1
INTRODUCTION
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1.1) ABOUT STEELAUTHORITY OF INDIA

Steel Authority of India Limited (SAIL) is one of the largest state-owned steel makers in India. With a turnover of 48,681 crore (US$10.86 billion), the company is among the top five highest profit earning corporate of the country. It is a public sector undertaking which trades publicly in the market is largely owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is C.S Verma. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world. Major plants owned by SAIL are located : at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Units. Besides, it has R&D Centre for Iron & Steel (RDCIS), Centre for Engineering and Technology (CET), Management Training Institute (MTI) and SAIL Safety Organization (SSO) located at Ranchi capital of Jharkhand. History: 1959-1973 SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on January 19, 1954. HSL was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959.
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A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was incorporated in January 1964 to construct and operate the steel plant at Bokaro. Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from 1.58 MT (195960) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.
1973 - Present The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the
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development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry. SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise.
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1.2)
MAJOR UNITS:
SAIL Integrated Steel Plants: Rourkela Steel Plant (RSP) in Orissa set up with German collaboration (The first integrated steel plant in the Public Sector in India, 1959) Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959) Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration (1965) Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how) IISCO Steel Plant (ISP) at Burnpur, West Bengal
Special Steel Plants Steel Authority of India Limited (SAIL), Kanpur, Uttar Pradesh Alloy Steels Plants (ASP), Durgapur, West Bengal Salem Steel Plant (SSP), Tamil Nadu Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka
Subsidiaries
Maharashtra Electro-smelt Limited (MEL) in Maharashtra.
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1.3) Central Units

Centre for Engineering and Technology
Research and development centre for iron and steel
Management Training Institute
SAIL safety organization
Raw materials division
Central Marketing Organization
SAIL consultancy organization
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1.4)
ABOUT SAIL IISCO STEEL PLANT (ISP):
IISCO Steel Plant (ISP), an integrated steel plant in Burnpur, has the capacity to produce 4.26 lakh tones of saleable steel and 2.54 lakh tones of pig iron annually. ISP, the erstwhile Indian Iron & Steel Company (IISCO), which was a 100% subsidiary of Steel Authority of India Limited (SAIL), has been amalgamated with the parent company with effect from 16 February 2006. ISP produces a large number of steel structural and special sections as well as pig iron. The plant pioneered the production of center sill Z-section used in the fabrication of wagon and Z-type sheet piling section used in construction of barrages, bridge foundations and other projects and colliery arch section used for roof support in collieries. The plant has also developed slit rolling for small diameter rounds (10 mm and 12 TMT), which are in high demand in the domestic market. The plant is set to undergo modernization-cum-capacity expansion though which its hot metal production capacity will be raised to 2.5 MT by 2011-12. ISP is accredited with ISO 9001:2000 QMS for its Heavy Structural Mill and Merchant & Rod Mill. It has also been awarded ISO 14001:2004 EMS for its entire Rolling Mill Complex.
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LOCATION:
ISP is situated at Burnpur near Asansol in the Burdwan district of West Bengal.
HISTORY:
The origin of ISP can be traced to 1874 when James Erskine founded the Bengal Iron Works and set up a plant at Kulti (in West Bengal) to produce pig iron. In 1918, the erstwhile IISCO, promoted by Burn and Company, came into being after changing hands several times. The manufacture of steel at Burnpur started in 1939. By the middle of the 1960s, the plant, under the chairmanship of industrialist Sir Biren Mukherjee, was producing one million tons a year. On July 4, 1972, the company was taken over by the Government of India. In March 1979, it was made a wholly-owned subsidiary of SAIL.
The erstwhile IISCO was once quoted on the London Stock Exchange, and had the pride of place on the Calcutta Stock Exchange in the early 1960s.
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1.5)
FACILITIES AT ISP
Coke Oven: Two coke oven batteries each of height 4.5 m and capacity 18.6 t of dry coal
BLAST FURNASE: Two blast furnaces each of useful volume 1170 cu m.
Steel Melting Shop (SMS): 1 Twin Hearth Furnace of 2110 t capacity.
Rolling Mills: 32 Soaking Pits; Blooming Mill capacity 0.9 Mtpa Billet Mill capacity 0.8 Mtpa Heavy Structural Mill capacity 0.25 Mtpa Light Structural Mill capacity 0.12 Mtpa Merchant & Rod Mill capacity 0.15 Mtpa
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1.6)
SWOT ANALYSIS OF SAIL IISCO STEEL PLANT (I.S.P)
STRENGTH:
SAIL, ISP was an independent company namely Indian Iron and Steel Company, so it is the oldest plant in our country. It has capacity to produce 4.26 lakh tonnes of saleable steel and 2.54 lakh tonnes of pig iron annually. The plant well connected by the roadways like national highway and railways so the transportation of raw material and finished goods can move here and there easily. The plant situated beside the river Damodar so no problem of water to the plant for its production.
WEAKNESS:
IISCO steel plant is an old plant so there is a lack of new technology and mechanism. Company apply those technologies which is absolute in the market. Company getting high rate of raw materials like Coal and Iron Ore because of the bad quality of local Coal, so the company import the coal from Australia, United States and Canada. It direct effect to the cost of production and it increases accordingly.
OPPORTUNITIES:
It has the great opportunities after the amalgamation with SAIL. Because SAIL is the leading company in production of steel in India. Prime Minister Man Mohan Singh inaugurated the work for an Rs.9, 600 crore modernisation programme at Burnpur on 24 December 2006. It is largest investment in West Bengal in the last ten years.
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THREATS:
SAIL has the 5 plant and total 6 plants are very near to each other like 3 plants in West Bengal, 1 in Jharkhand, 1 in Orissa and last one in Chhattisgarh, so a little mistake will be a big opportunity for the other plant. A huge competition with each other. Minimize the cost of production is a big challenge for the management of IISCO STEEL PLANT.
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1.7) SAIL TODAY

SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export market standa large pool of technical and professional expertise. Today, the accent in SAIL is to continuously adapt to the competitive business environment and excel as a business organization, both within and outside India.
1.8) TYPE OF ORGANISATION

Steel Authority of India' - A Government of India Enterprise and one of the largest and profit making public sector steel products manufacturing company. SAIL produces for both basic and special steels for construction, engineering, power, railway, automotive and defense industries and caters to Indian and International markets. SAIL has 6 steel plants, one subsidiary, three special steel plants, multi marketing units at all regions and nine other specialized units to support growth and development of the Steel Industry in India. Its produces are Blooms, Billets, Slabs, Crane Rails, Bars, Rods & Re-bars, Wire Rods, Coils, Sheets, Plates, CR Coils & Sheets, GC Sheets, GP Sheets and Coils, Tinplates, Electrical Steel, Tubular Products, Pipes, Railway Products, Rails, Wheels, Axles, Wheel Sets.
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1.9)
ACTIVITIES
SAIL production lines are
Hot Rolled Coils, Sheets Cold Rolled Products. Bars and Rods. Semi-Finished Products. Railway Products. Specialty Products. Plates. Structural. Alloy and Stainless Products.
Moreover, Steel Authority of India offers technological services in the following domains
Know-how transfer of technologies developed by its R&D wing. Consultancy services. Specialized testing services. Contract research. Training
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1.10) MISSION OF THE ORGANISATION:

Sustained growth through internal generation of resources is the hallmark of the corporate mission.
VISSION OF THE ORGANISATION:

To be respected world class corporation and the leader in Indian Steel business in Quality, productivity, profitability and customer satisfaction.
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1.11) BOARD OF DIRECTORS

Shri C.S. VERMA Managing Director: 1. Shri S.P. Rao 2. Shri P.K. Bajaj 3. Shri S.N. Singh 4. Shri S.S. Mohanty 5. Shri R. Ramaraju 6. Shri S.P. Patnaik Burnpur Durgapur (D.S.P) Rourkela Bokaro Bhilai Durgapur (A.S.P) Chairman of SAIL
FUNCTIONAL DIRECTORS:
Shri Shoeb Ahmed Y.S Reddy Shri G. Ojha Shri K.K. Khanna Commercial Material Management Personnel Technical
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Chapter 2
OBJECTIVES AND IMPORTANCE
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OBJECTIVES OF THE STUDY

1. To study the difference types of material used for production system. 2. To study the purchasing procedure of purchase departments. 3. To study the documentation procedure used for managing the materials. 4. To find out the difficulties in purchasing.
IMPROTANCE OF THE STUDY

By deciding inventory norms rationally and through control systems. Inventory Turnover can be maximized which in turn will maximize current Assets Turnover and ROI By proper planning and control of Spare parts, capacity utilization can be increased which will increase the turnover of Fixed Assets and consequently increase ROI By developing dependable sources and purchasing quality materials at competitive prices, materials cost per rupee of sales can be brought down which will increase Profit Margin and in turn ROI. By developing proper systems and control on issue of materials, the consumption can be minimized, resulting in reducing the materials cost, which will increase the Profit Margin and also ROI.
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Chapter 3
LIMITATION OF THE STUDY
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LIMITATIONS OF THE STUDY

1. The analysis and interpretation are based on secondary data only. 2. To published the annual reports of SAIL for the study period. 3. Only the purchasing is being considered in the Project 4. The analysis is based on figures presented in the internal record only.
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Chapter 4
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. So, the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study.
RESEARCH DESIGN:
Descriptive research is used in this study because it will ensure the minimization of bias and maximization of reliability of data collected. The researcher had to use fact and information already available through statements of earlier years and analysis these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. From the study, the type of data to be collected and the procedure to be used for this purpose were decided.
1.1) DATA COLLECTION:

Data collection can be done in two ways: 1) 2) Primary Data Secondary Data.
1) Primary Data
The Data was collected through the Finance department, Materials department, Purchase Department and Store department. Interview and Observation is the main source of collecting primary data.
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2.
Secondary Data The Secondary data has been collected from companys recorded files. The hard copy gave detailed data of the Material status in the organization. Secondary data is taken by the researcher from secondary sources, internal or external
2.1)
METHODS OF DATA ANALYSIS:
The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are:
ANALYTICAL TOOLS APPLIED: The study the following analytical tools
1. Materials Editor 2. Loading Materials 3. Restoring Default Materials 4. Replace.
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Chapter 5
REVIEW OF LITERATURE
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1.1)
INTRODUCTION OF THE STUDY
Materials Management System (MMS) - a real-time fleet-wide inventory and consumables management system available both at an individual shipboard level and at a cruise lines headquarters, across a fleet of vessels, enabling complete and constant central control of all consumables. Materials Management System provides minute-by-minute tracking of sales and stocks and offers significant opportunities to raise procurement efficiency.
Features and Functions
Uses weights and volume of individual units to calculate the volume of a package Multiple quantities of measures of items including catch weight, pallets, bricks, bales, totes, tank cars
Product attributes searching and matching at order entry Tracks variations in chemical and physical properties of a product without changing numbers
Available-to-promise (ATP) reflects the realities of inventory coming out of inspection and shelf life expiration
Ability to pack multiple items into a single package for sale Hard and soft allocation Quality specification matching for order fulfilment Tolls and exchanges (the chemical industry co-petition practice)
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Issues containerized receipts for the use and return of specialized containers Pre-assigned lot/serial numbers to items during order creation Actual cost and receiving date maintenance for lot and serial controlled items Upward and downward lot/serial traceability (cradle-to-grave) System handles equivalent products, locations, and packages Sub-lots with their own unique attributes Potency units of measure Converts items from volume, weight, and units, automatically Creates status codes used to monitor quality, or potency/grade deterioration in lots Product attribute (for example, pH level) tracking from batch to batch Converts unit values of a containers, such as barrel, bag, or box to unit volume weight, of mass
The system caters for proactive, forward, and backward heat traceability Ability to plan and schedule predictive maintenance Concurrent materials and capacity, non-iterative finite planning and scheduling Multiple sources/sites of supply (supply sourcing tables) Plan and prioritize materials in bulk System handles flow rates from feedstocks to bulk (rail, cars and barges) Pipeline versus "on-hand" inventory management Production wheel--dynamic versus static analysis of production requirements planning Distribution requirements planning (DRP)-distribution network-wide inventory
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visibility

Distribution network and warehouse locator availability Transport load planning by weight, volume, and number of containers In-transit tracking and confirmation Push surplus perishable raw material supply through the entire supply chain
Materials Management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.
1.2) Areas of Concentration
Goals: The goal of materials management is to consolidate and efficiently handle core services. It creates truck deliveries and service vehicle routes that reduce conflicts for vehicles and pedestrians. Delivery sites and loading docks are more effective and reduce redundancy. Cost is reduced when it comes to solid and hazardous waste removal, storage, and recycling. Utility infrastructure and service equipment relocation can improve aesthetics. Quality Assurance: A large component of materials management is ensuring that parts and materials used in the supply chain meet minimum requirements by performing quality assurance (QA). While most of the writing and discussion about materials management is on acquisition and standards, much of the day to day work conducted in materials management deals with QA issues. Parts
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and material are tested, both before purchase orders are placed and during use, to ensure there are no short or long term issues that would disrupt the supply chain. This aspect of material management is most important in heavily automated industries, since failure rates due to faulty parts can slow or even stop production lines, throwing off timetables for production goals. Standards: The other major component of materials management will be gradual movement toward compliance. There are standards that are followed in supply chain management that are important to a supply chain's function. For example, a supply chain that uses just-in-time or lean replenishment requires clarity. In the shipping of parts and material from purchasing agent to warehouse to place of destination. Systems reliant on vendor-managed inventories. May begin to acquire up-to-date computerized inventories and begin to explore robust ordering systems for outlying vendors to place orders on.
1.3) Promoting Sustainability

Many business and institutional campuses have cluttered, noisy, and oftentimes inefficient service environments. Delivery truck competes with pedestrians, loading docks are in plain sight, trash dumpsters sprout up, and lobbies, hallways, and stairwells are cluttered with unplanned storage. With forethought and creativity, these systems can reduce energy use and carbon emissions, minimize traffic congestion, streamline operational flows, and enhance esthetics.
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1.4) Improving Circulation Infrastructure

Redundancy can be reduced and effectiveness is increased when service points are clustered to reduce the amount of redundancy. An effective materials management program can also resolve island approaches to shipping, receiving, and vehicle movement. Solutions can include creating a new central loading location, as well consolidating service areas and docks from separate buildings into one. Developing better campus circulation infrastructure also means re-evaluating truck delivery and service vehicle routes. Vehicle type, size, and schedules are studied to make these more compatible with surrounding neighborhoods. This will reduce truck traffic, creating a safer environment for pedestrians and a more attractive environment for other uses.
1.5) Materials Management Week

Each year, an entire week is dedicated to celebrating resource and materials management professionals for their outstanding contributions to healthcare and the overall success of the supply chain. Sponsored by the Association for Healthcare Resource & Materials Management (AHRMM), National Healthcare Resource & Materials Management Week (MM Week) provides an opportunity to recognize the integral role materials management professionals play in delivering high-quality patient care throughout the health care industry. In 2010 Material Management Week is October 4-10 October.
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Chapter 6
EMPIRICAL ANALYSIS
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LIST OF FIGURES:
Experiment Requirements Documents (ERD):
Flow Diagram
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Material Procurement System (M.P.S):
Flow Diagram
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1.1)
SAIL MATERIAL MANAGEMENT REPORTS
Materials Management: Master Data Reports
Master Data MM03 MK03 MK04 XK03 XK04 ME1L ME1M ME1P ME1E ME13 ME14 ME03 ME04 MEQ3 MEQ4 MKVZ MKVG MSC3N Display Material Master Display Vendor Purchasing Purchasing Vendor Changes Display Vendor Central Central Vendor Changes Info Records by Vendor Info Records by Material Purchase Order Price History Quotation Price History Display Info Record Display Info Record Changes Display Source List Display Source List Changes Display Quota Arrangement Display Quota Arrangement Changes Display Purchasing Vendor List Display Vendor Condition Groups Display Batch
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MEKA
Display Purchasing Conditions Display Message Condition RFQ
MN06 MN09 MN12 MM60
Display Message Condition Purchase Order Display Message Condition Scheduling Ag. Display Message Condition Delivery Shed. Display Materials List
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1.2)
Materials Management: Procurement and Stock Reports
i)
Logistics Information Reports (STOCK) MCBA MCBC MCBE MCBR MC.9 MC.A MC.B MC.1 MC.2 MC.3 MC.5 MC.6 Plant Storage Location Material Batches Material Stock Material Receipts / Issues Inventory Turnover Material Plant Stock Plant Receipts / Issues Plant Inventory Turnover Stock Storage Location Storage Location Receipts / Issues Storage Location Inventory Turnover
MC.7
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ii)
Purchasing Information System MCE1 MCE3 MCE5 MCE7 MC$G MCSI MCSO MCS4 MC$6 MC$: MC$0 MC$2 MC$< Purchase Group Analysis Vendor Analysis Material Groups Analysis Material Analysis Material Purchasing Values Material Purchasing Quantities Material Frequencies Vendor Purchasing Values Vendor Purchasing Quantities Vendor Frequencies Purchasing Group Values Purchasing Group Frequencies Material Group Purchasing Values Material Group Purchasing Quantities Material Group Frequencies
MC$> MC$E
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iii)
Purchasing Reports General Analysis of Purchasing Documents Analysis of Order Values Display Purchase Order Display Purchase Requisition List Display Of Requisitions Display Scheduling Agreement Display Delivery Schedule Display RFQ List RFQ by Vendor List RFQ by Material List RFQ by Collective Number Display Quotation Purchasing Documents per Vendor Purchasing Documents per Material Purchasing Documents by Account Assignment Purchasing Document by Supplying Plant Expected Goods Receipts Display Planned Order Single Display Planned Order Collective
ME80FN ME81N ME23N ME53N ME5A ME33L ME39 ME43 ME4L ME4M ME4S ME48 ME2L ME2M
ME2K
ME2W ME2V MD13 MD16
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iv)
Stock Reports MMBE MB51 MB03 MB54 CO09 MB5C Stock Overview Material Document List Display Material Document Vendor consignment stocks Material Availability Batch Where Used Pick Up List
v)
Physical Inventory Reports Physical Inventory Document material Physical Inventory Data material Physical Inventory Overview Display Physical Inventory Document Display Count Document
MI22 MI23 MIDO
MI03 MI06
vi)
M.R.P Reorder Point MD21 Display Planning File Entries Planning File Entries Consistency Report
MDRE
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MD04 MD05 MD06 MD07
Stock Requirements List MRP List Material Display MRP List Collective Display Stock Requirements List Collective
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1.3) The Basic Raw Materials

The Various Raw Materials Used in the Production Of steel Are as Follows:

COKING COAL IRON ORE MANGANESE ORE LIM STONE DOLOMITE ALLUMINIUM SULPHURIC ACID STEEL SCRAP FERRO MANGANESE.
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1.4)
CHART SHOWING SCALE

Chart No.1:
45000 40000 35000 30000 25000 20000 16233 15502 15000 10000 5000 0 2001 2002 2003 2004 2005 2006 2007
Fig - Year Wise Materials Profit Figures
39189 31805 32280 24178 19207
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1.5) CHART SHOWING SCALE

Chart No.2:
8000 7000
Profit in Rs. Crores
6817 6202
6000 5000 4000 3000 2000 1000 0 -1000 -2000 -3000 years 2001 2002 2003 2004 2005 2006 2007 -729 -1707 -304 2512 4013
Fig - Chart Showing Year Wise Net Material Profit
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1.6)
RAW MATERIAL ACCOUNTING SYSTEM
Various departments involve in this section are:
Raw material purchase Material department Consumer department Finance department Bill Section
The raw materials that are being used are:
Iron ore Coal 1. Wash Coal Prime 2. Indian Coal 3. Imported Coal (Australia, U.S, Canada) etc.
Manganese ore Lime stone : Low and High Silica Dolomite Ferro Manganese Ferrosilicon Silicon Manganese Copper
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Aluminium Dolofet Petroleum Coke H2SO4 Acid Quartzite Billets Scraps
The raw material is also done in two ways 1.1) BY RAILWAY Maximum imported materials are done by railways. It consists of two parts: The actual weight The chargeable weight.
Fright is not calculated on the actual weight. It is calculated on the chargeable weight. Chargeable weight is always greater than the actual weight.
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1.2)
BY GOODS RECEIPT INSPECTION NOTE Goods receipt note is prepared by the store and warehouse department for accounting the receipt of goods. Purchase from suppliers. When receipt is prepared in software, inventory is updated with quantity and value. It will also update the materials records.
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1.7) RAW MATERIAL DIVISION

SAIL has the second largest mining outfit in the country. The mines of SAIL started their operations as captive sources of raw materials for its integrated steel plants. Major portion of its mining activities is managed by Raw Materials Division (RMD). Other mines are the Bhilai group of mines and the mines of VISL. The Raw Materials Division (RMD) was formed in 1989 with the avowed purpose of creating synergy of all the SAIL mines in the eastern sector, to rationalize supply of basic raw materials to the steel plants so as to achieve self-sufficiency in quality iron ore. Presently RMD, with its headquarters at Kolkata, manages 7 Iron Ore Mines and 3 operating flux mines, salient features of which are given below :
SL. NO
MINES
STATE
YEAR OF COMMISSIONING
RATED CAPACITY ( IN MT)
Iron ore
1.
KIRIBURU
JHARKHAND
1964
4.25
2. 3.
MEGHAHATUBURU BOLANI
JHARKHAND ORISSA
1985 1960
4.30 4.20
4.
BARSUA
ORISSA
1960
2.01
5.
KALTA
ORISSA
1966
1.10
6.
GUA
JHARKHAND
1919
2.4
7.
MANOHARPUR (Chiria)
JHARKHAND
1907
0.7
Flux
6.
Kuteshwar (Limestone)
MADHYA PRADESH
1974
1.10
7.
Bhawanathpur (Limestone)
JHARKHAND
1979
0.80
8.
Tulsidamar (Dolomite)
JHARKHAND
1970
0.34
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In tune with the corporate plan 2012 of SAIL, various capacity expansion projects have been taken up at the RMD mines so as to cope up with the enhanced requirement of iron ore and limes stone of desired quality. The major projects cover the Expansion of capacity of Bolani Ore Mines, Development of Central Block at Meghahatuburu Iron Ore Mine, Development of South Block at Kiriburu Iron Ore Mine, Mechanization and development of Chiria Mines, Development of Taldih Block, and Opening a new mine at Thakurani. RMD also has a centralized workshop at Bolani for repair/overhauling of engines & transmission of heavy earthmoving machinery operating at the mines. Besides the above, RMD has three Customer Services Offices (CSO) at Rourkela, Durgapur & Bokaro and three Liaison offices at New Delhi, Bhubaneswar, and Ranchi for liaison and better coordination with various government agencies as well as different statutory agencies.
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Chapter 7
FINDING AND SUGGESTION
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FINDINGS:
1. List of Material Studied As Per P.R : Iron Ore Coal Manganese Ore Dolomite Ferro Manganese Ferro Silicon Silicon Manganese Copper Aluminium Dolofet Petroleum Coke
2. Purchasing Procedure Delay & Problems: It is difficult to find out new suppliers for a non regular item of material. If the material are not available to regular supplier, then it face difficulties because, it required finding out the new suppliers and then whole procurement process need to be followed from the beginning, which takes lots of time and it may hampered the production process.
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3. Difficulties In Purchasing: Indent is receiving from the various departments where material is required. Stamp.
Date of received of indent is recorded.
Indent is check by the H.O.D and it is distributed accordingly to as per the respective job allocated for purchasing material.
Inquiry Process.
Sending inquiry to the suppliers.
Quotation / Offer are received in the purchase department by the distributer of the material.
The distributer who sending less price offer of this item. They get the order.
Place the order to the supplier reported the lowest price.
The whole process is taken the much more time.
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2. SUGGESTION:
i.
Research and development department of SAIL I.S.P should look for the problem and invent or discover a new process for procuring the Materials. This is beneficial for the company.
ii.
The company should have well prepared plans for procurement, so that any delay should not hamper the production system.
iii.
Procurement process should be compact and more flexible to avoid errors and delay.
iv.
Since SAIL I.S.P is yet to implement SAP and ERP system. They should work towards the integration of the systems into the Material procurement process.
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Chapter 8
CONCLUSION
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CONCLUSION
Material Management System is the life blood of every business. Without effective Material Management a company cannot in this competitive world. SAIL assigning the experienced employee in the production department and they are with the highly instructed to proper handling of the raw material, so the process take less input for the more output. There is every possibility that SAIL would establish for itself a permanent and unshakable position in the industrial map of India and also in the emerging international market for steel.
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Chapter 9
REFERENCE
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REFERENCE
The Books, journals and websites referred are as follows: 1. BOOKS: a. J.R. Tony Arnold and Stephen N Chapman, Introduction to Materials Management, Fifth Edition, Himalaya Publication.
b. Pro. L.C. Jhamb, Production planning and Control, Everest publishing house 12th edition: 2005.
c. J. R. Tony Arnold; Stephen N. Chapman; Lloyd M. Clive Introduction to Materials Management, Sixth Edition Publisher: Prentice Hall Copyright year: 2008
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2. WEBSITES:
a) http://www.sail.co.in
b) http://www.sail.co.in/pnu.php?tag=others_unit_raw_material
c) http://www.sail.co.in/pnu.php?tag=others_unit_RnD_center
d) http://www.sail.co.in/pnu.php?tag=iisco
e) http://en.wikipedia.org/wiki/Materials Management
f) http://en.wikipedia.org/wiki/Production_Material_Management system
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