Inventory Management
Inventory Management
Inventory Management
“INVENTORY MANAGEMENT”
With reference to
VISAKHAPATNAM
Regd.No.15331E0046
Under the Esteemed Guidance of
Dr.K.RAKESH MBA,Ph.D
PLACE: VISAKHAPATNAM.
DATE:08/03/17
CH.V.S.R.SANJEEVA RAO,
MANAGER FINANCE,
VISAKHAPATNAM
DECLARATION
Place : VISAKHAPATNAM
Date:08/03/17
(JAMPANA RENUKA)
Regd No : 15331E0046
ACKNOWLEDGEMENT
A successful project can never be prepared by single effort or the person
to whom the project is assigned, but it also demand the help and guardianship of
some conversant persons who helps in the undersigned actively or passively in
the completion of successful project.
(JAMPANA RENUKA)
Regd No:15331E0046
CONTENTS
CHAPTER –I
Introduction
Need for the study
Scope of the study
Objectives of the study
Methodology
Limitations
CHAPTER –II
Industry Profile
Company Profile
CHAPTER- III
Theoretical Framework of Inventory Management Analysis
CHAPTER- IV
Data Analysis & Interpretation of Financial Statement in Coromandel
International Limited
CHAPTER-V
Findings, Suggestion and Conclusion
Bibliography
CHAPTER –1
INTRODUCTION
Introduction
Finance is regarded as the life blood of business enterprise. Finance is one of the basic
foundations of all kinds of economic activities. Finance is one of the important and
indispensable resources and without financial support no business activity can be pursued. It
is guide for regulating investment divisions and expenditure. The financial management
studies about the process of procuring and optimum utilization of financial resources with a
view to maximize the value of the firm there by the value of the owners i.e., equity
shareholder.
Definitions
Finance comes from a Latin word Finis. Finance is the process of organizing the flow of
funds so that a business can carry out its objectives in the most efficient manner and meet
its obligations as they fall due.
Finance plays an important role in any organization. The dictionary meaning of finance is
money affairs or the art of managing or administrating the public money. The function of
finance is not only arranging funds for the business organization but also it includes
planning, forecasting of cash flow, both receipts and payments, raising the funds, allocation
of funds and financial control.
Financial management is broadly concerned with the acquisition and use of funds by a
business firm. The scope of financial management can be defined the terms of following
questions.
How large should be the firm and how fast should it grow?
What should be composition of firm’s assets?
What should be the composition of firm’s financing?
Financial statements are prepared primarily for decision-making. They play a
dominant role in setting the framework of managerial decisions. The term ‘financial
analysis’, also known as analysis and interpretation of financial statements, refers to the
process of determining financial strengths and weaknesses of the firm by establishing
strategic relationship between the items of the balance sheet, profit and loss account and
other operative data.
The term ‘financial statement analysis’ include both ‘analysis’ and ‘interpretation’. A
distinction should, therefore, be made between the two terms. While the term ‘analysis’ is
used to mean the simplification of financial data by methodical classification of the data
given in the financial statements, ‘interpretation’ means, ‘explaining the meaning and
significance of the data so simplified. However, both ‘analysis and interpretation’ are
interlinked and complimentary to each other Analysis is useless without interpretation and
interpretation without analysis is difficult or even impossible.
Need for the study:
Financial statement analysis helps in decision making activity, whether it may be long term
or short-term decisions. Long–term decisions are related to the investment and dividend
policies and short-term are related to working capital policies. It also helps in planning &
controlling activities as a part of might. This would provide a basis for the sales forecasting,
project planning, capital investing & various budget programs.
To obtain the materials and suppliers in the required quantity at the Lower cost at the
proper time and to meet the continuous production program.
To keep the inventories as low as possible, consistent with the market Conditions.
Forecast market and economic conditions of supply and availability of Materials.
Work with the potential suppliers for finding new materials.
Product research and development.
Participation in the make or buy decision of the company.
Maintain proper records.
Ensure a continuous supply of materials to facilitate uninterrupted Production.
Minimize the company cost and time.
OBJECTIVES OF THE STUDY:
Primary data:
It is the information collected directly without any references. In this Study it is to gather
through interviews with concerned officers and staff, either individually or collectively. Some
of the information were verified and Supplemented through personal observation.
The data collection includes:
Conducting personal interviews with the concerned officers of finance department of
Coromandel International Limited.
Secondary data:
This study has been done by gathering information from various sources. Such as
1. Annual Accounts, Reports, Magazines, Journals.
2. Manuals and statutory codes.
3. Administrative Reports
4. Internally available files and other documents of Coromandel Fertilizers
Limited
5. Paper clippings, etc.
Indian fertilizer industry is one of the efficient industries. The industry relies heavily
on imports for its requirement of raw material. Hence any devaluation of the rupee could
inflate its import bill. Since the Nitrogen based fertilizers are protected by the retention price
system (so far), the increased costs will affect phosphorus and potassium fertilizer
manufacturers.
Glauber developed the first complete mineral fertilizer, which was a mixture of
saltpeter, lime, phosphoric acid, nitrogen, and potash. As scientific chemical theories
developed, the chemical needs of plants were discovered, which led to improved fertilizer
compositions.
Background:
Fertilizer is a substance added to soil to improve plants growth and yield. First used
by ancient farmers, fertilizer technology developed significantly as the chemical needs of
growing plants were discovered. Modern synthetic fertilizers are composed mainly of
nitrogen, phosphorous, and potassium compounds with secondary nutrients added. The use of
synthetic fertilizers has significantly improved the quality and quantity of the food available
today, although their long-term use is debated by environmentalists.
Like all living organisms, plants are made up of cells. Within these cells occur
numerous metabolic chemical reactions that are responsible for growth and reproduction.
Since plants do not eat food like animals, they depend on nutrients in the soil to provide the
basic chemicals for these metabolic reactions. The supply of these components in soil is
limited, however, plants are harvested, it dwindles, causing a reduction in the quality and
yield of plants.
Fertilizers replace the chemical components that are taken from the soil by growing
plants. However, they are also designed to improve the growing potential of soil and
fertilizers can create a better growing environment than natural soil. They can also be tailored
to suit the type of crop that is being grown. Typically, fertilizers are composed of nitrogen,
phosphorus, and potassium compounds. They also contain trace elements that improve the
growth of plants.
The primary components in fertilizers are nutrients which are vital for plant growth.
Plants use nitrogen in the synthesis of proteins, nucleic acids, and hormones. When plants are
nitrogen deficient, they are marked by reduced growth and yellowing of leaves. Plants also
need phosphorus, a component of nucleic acids, phospholipids, and several proteins. It is also
necessary to provide the energy to drive metabolic chemical reactions. Without enough
phosphorus, plant growth is reduced. Potassium is another major substance that plants get
from the soil. It is used in protein synthesis and other key plant processes. Yellowing, spots
of dead tissue, and weak stems and roots are all indicative of plants that lack enough
potassium.
Calcium, magnesium, and sulfur are also important materials in plant growth. They
are only included in fertilizers in small amounts, however, since most soils naturally contain
enough of these components. Other materials are needed in relatively small amounts for plant
growth. These micronutrients include iron, chlorine, copper, manganese, zinc, molybdenum,
and boron, which primarily function as cofactors in enzymatic reactions. While they may be
present in small amounts, these compounds are no less important to growth, and without them
plants can die.
Many different substances are used to provide the essential nutrients needed for
effective fertilizers. These compounds can be mined or isolated from naturally occurring
sources. Examples include sodium nitrate, seaweed, bones, guano, potash, and phosphate
rock. Compounds can also be chemically synthesized from basic raw materials.
1995-99:
Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I) Limited in
1995, followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority shareholding in
COROMANDEL INTERNATIONAL LIMITED, making it a part of the Murugappa Group,
a highly reputed industrial conglomerate.
2000:
COROMANDEL INTERNATIONAL LIMITED’s growth over the years has been
punctuated with several path-breaking modernizations / up gradation programmes. Begun in
1975, the programme gathered momentum in 1992-95, when the Sulphuric Acid, Phosphoric
Acid and Complex Granulation plants were debottlenecked. Production capacity wends up
from the original 247,000 MT to 400,000 MT. On September 29, Mr. N Chandrababu Naidu,
the then Chief Minister of Andhra Pradesh, inaugurated a new complex granulation train.
This further augmented capacity to 600,000 MT, a boon to the entire farming community.
2003 :
On July 12, COROMANDEL INTERNATIONAL LIMITED consolidated its
business by acquiring controlling stake in Godavari Fertilizers & Chemicals Limited
(GFCL). To optimize synergy of operations in the Group, the Farm Inputs Division of E.I.D
Parry (I) Limited was merged with COROMANDEL INTERNATIONAL LIMITED on
December 1.
2004:
Mr. V. Ravichandran took over as precedent & WTD on January 22. Mr. A.
Vellayan took over as a chairman on September 1. Other directors on the board Mr. J.
Jayaram, Mr. M.M Murugappan, Mr. T. M. M. Nambiar, Mr. M.k. Tandon. The first post
merger AGM of the company was held on July 15.
2005 :
COROMANDEL INTERNATIONAL LIMITED signs a Business Assistance
Agreement with Foskor Limited, South Africa Coromandel linked a business Assistance
Agreement with Foskor Pty. Ltd., South Africa, to provide managerial and technical
assistance to Foskor.
A joint venture agreement was signed between Coromandel, Group ChimiqueTunisien,
Tunisia and Gujarat state Fertilizer Corporation.
2006:
Plant Protection Business expands Coromandel acquired FICOM Organics Ltd.,
2007:
Innovation in Retail Marketing Coromandel launched its retail business to serve the
rural markets. Today , Coromandel has a chain of over 400 outlets in rural Andhra Pradesh.
2008:
Product Innovation: Coromandel’s Specialty Nutrient range including Micro-
Nutrients and water Soluble products were launched a new line of organic fertilizers.
2009:
JV with Sociedad Quimicay Minera (SQM) A JV was signed on May 26 with
Soquimich European Holdings, B.V., the Netherlands ( a Subsidiary of SQM, Chile) a World
leader in Specialty Plant Nutrition business to set up a manufacturing facility at Kakinada to
produce WSF NPK grades. The 50:50 JV Company, Coromandel SQM (India) Pvt. Ltd. was
incorporated on 09-10-2009.New brand Identity and Logo: 25th of August the name of the
Company was changed to Coromandel International Limted and the new logo unveiled.
2011:
On May30,2011 Coromandel sign a definitive share purchase agreement to acquire
promoters stake in sebero Organics Gujarat Ltd. Sebero Ltd established manufacture
headquarter in Mumbai. The Turnover of the company is 413 Crore in FY 2011 out of
export contribute about 220 Crore .Sebero Organic have four Subsidiaries in
Brazil,Argebtina,Australia and Europe boasts about 240 registration for key products.
ORGANISATION - PROFILE:
Coromandel International Limited (CIL), a leading manufacturer of farm inputs
comprising of phosphatic fertilizers and pesticides, is a constituent of the Murugappa Group
and is a subsidiary of EID Parry (India) Limited (EIDP), which holds 69.05% of the equity
of COROMANDEL INTERNATIONAL LIMITED.
During the year 2006-07, the Company acquired Ficom Organics Limited, a
technical grade Pesticides manufacturing Company based at Ankaleswar, Gujarat and the
same has been merged with COROMANDEL INTERNATIONAL LIMITED effective April
1, 2006 with necessary statutory approvals as required.
The Company's Farm Inputs Business comprise of three main divisions viz.
– Phosphatic Fertilizers’;
– Pesticides; and
– Specialty Nutrients.
Major achievements of COROMANDEL INTERNATIONAL LIMITED:
FAI award received from Fertilizer Association of India for “Improvement of overall
performance of a fertilizers unit” for the year 1994-95.
FAI award for the Best overall performance of an operation phosphoric acid plant”
1995-96.
FAI award for “Environment protection in NP / NPK fertilizer plant category” 1995-
96
Commendation memento from IMC global USA for achieving 3 million man hour
safe working without any lost time accident, consecutively for the 3rd times in
September 1995.
Wartsila memento 1995 to commemorate generation of 100 million units with 12v, 32
Wartsila diesel engines.
Runner up award in the national convention energy conservation and management by
Andhra Pradesh productivity council in 1995.
FAI award for ‘Environmental Protection in NP/NPK Fertilizer Plant Category’ for
1995-96.
British Council ‘Five Star’ rating for Safety Management System in 1998.
First prize for safety, among the 162 fertilizer companies in the International Fertilizer
Industries Sectional Contest.
Andhra Pradesh Pollution Control Board’s award for ‘waste Minimization at Source
and Adopting Cleaner Technologies’ for 2001-02.
FAI award for best production performance of an operating phosphoric acid plant for
2003-04 and commendation award for leadership & Excellence in SHE performance
from CII, southern region.
National ancon award 2006 from union ministry of power for avocation utilization of
energy.
9th consecutive the FAI Best Production Performance Award-2006 for the Phosphoric
Acid Plant at Vizag.
British Council ‘Five Star’ rating for Safety Management System in 1998.
First prize for safety, among the 162 fertilizer companies in the International Fertilizer
Industries Sectional Contest.
Andhra Pradesh Pollution Control Board’s award for ‘waste Minimization at Source
and Adopting Cleaner Technologies’ for 2001-02.
FAI award for best production performance of an operating phosphoric acid plant for
2003-04 and commendation award for leadership & Excellence in SHE performance
from CII, southern region.
National ancon award 2006 from union ministry of power for avocation utilization of
energy.
9th consecutive the FAI Best Production Performance Award-2006 for the Phosphoric
Acid Plant at Vizag.
National Award (1st prize) for House Journal – 2006 from The Public Relations
Society of India, New Delhi, received for ‘The Voice’ (House Journal) for the 2 nd
consecutive year.
National Award (2nd Prize) for Video Film – 2006 form The Public Relations Society
of India, New Delhi, received by Marketing Department (Fertilizers) for the firm
“Cheyutha” (Helping Hand).
Adjudged one of the 'Ten Greenest Companies in India' by a joint survey of Tata
Energy Research Institute and Business Today magazine.
Several other awards from the Central and State Government and other institutions
like AP Pollution Control Board, Jawaharlal Nehru Award for Pollution Control and
Energy Conservation.
Certificate of Merit for the Kakinada Plant at the National Energy Conservation
Awards, 2008 in Fertilizer Sector.
DMA - Erehwon National Award for Innovation in Human Resources.
Fertilizer Association of India Award for Best Video Film on Gromor NPK 19:19:19
Water Soluble Fertilizers.
Visakhapatnam, Kakinada and Ennore Plants received the commendation from CII for
its strong commitment to excel in the CII-Exim Bank Business Excellence Award
Recently won awards:
For the ninth time the FAI Best Production Performance Award for 2006, to the
phosphoric acid plant in Vizag
Award for Best Energy Conservation in the Fertiliser sector for 2005-06, received
by Vizag Plant on 14 December 2006, National Energy Conservation Day
'National Energy Conservation Award for 2006' from the Ministry of Power, New
Delhi, in appreciation of efforts in energy conservation in the fertiliser sector — won
for the third time
Received certificate of merit for fertilizers sector for the year 2002-2003 in the
national ENCON Award contest conducted by Bureau of Energy Efficiency.
Received the National ENCON Award for 2004 from the Ministry of power.
Received F AI award for best Phosphatic acid production performance for the year
2004.
Received commendation award from CII for leadership and excellence in SHE
practices for 2004.
First prize for safety, among 162 fertiliser companies in the International Fertiliser
Industries Sectional Contest
Andhra Pradesh Pollution Control Board's award for 'Waste Minimisation at Source
and Adopting Cleaner Technologies' for 2001-02
FAI award for 'Environmental Protection in NP / NPK Fertiliser Plant Category' for
1995-96.
The Visakhapatnam Plant was awarded ISO 14001:1996 first in 2002 and again in
2004. The company is also the recipient of OHSAS 18001:1999 certificate. from
Ministry of Labour, Govt. of A.P.
Vision:
To be the leader in the phospatic fertilizer industry, producing high quality fertilizers
at low cost and giving satisfaction to all stakeholders.
Philosophy:
The fundamental principle of economic activity is that no man you transact with will lose
then you shall not.
To be one of the leaders in fertilizers industry with an all India presence it has to go
through:
Responsibility:
We are responsible to corporate citizens. We believe we can help to make a difference
to our environment to change live Coromandel extranet.
Partners & Subsidiaries:
Coromandel has a strategic partnership with the leading companies across the globe. It
includes
Technical assistance agreement with Foskor (pty) ltd. Of south Africa, one of the largest
phosphoric acid producing companies, for extending Coromandel’s technical assistance.
A joint venture agreement with GroupeChimiqueTunisien (GCT) and CPG of Tunisia to set
up a phosphoric acid plant at La Skhira, Tunisia, at an estimated cost of US$180 million.
Location:
Coromandel's Corporate Office is located at Secunderabad in Andhra Pradesh. The
Company's manufacturing facilities and marketing branches are spread across India.
Products:
Gromor 14-35-14:
Contains nitrogen phosphate and potash.
Highest total nutrients content (63%)
N&P ratio same as DAP. But 14-35-14 has extra 14% potash.
Highest in phosphate (35%)
Best for cotton, groundnut, chilly, Soya beans, potato etc.,
Not suitable for tobacco and grapes.
Gromor 28-28-0:
Complex with highest N&P in 1:1 ratio
Unique granulation by coating prilled urea with
Ammonium phosphate layer.
Such granule configuration ensures efficient utilization for nutrients.
Highly suitable for paddy, wheat.
Gromor 20-20-0-15:
Ammonium phosphate sulphate with N&P in 1:1 ratio.
Its special feature is 13% sulphur which is not available in most other
fertilizers.
The response to the sulphur has been very encouraging in many crops,
particularly oil seeds in sulphur deficient soil.
Gromor 10-26-26:
A high analysis complex fertilizer containing all three major nutrients –
Nitrogen, Phosphate and Potash, was launched by COROMANDEL
INTERNATIONAL LIMITED in March 2003.
This complex contains Phosphate and Potash in the ration of 1:1, the highest
among the NPK fertilizers. Its unique features being:
PARAMFOS 16-20-0-13:
Ammonium Phosphate Sulphate containing Nitrogen, Phosphate and Sulphur.
It is the most preferred fertilizer in drill-sown areas.
PARRY GOLD:
Ammonium Phosphate Sulphate containing Nitrogen and Phosphate in 1:1 ration.
It is an ideal fertilizer for all corps grown in Sulphur deficient soils.
Manufacturing process:
Sulphuric acid plant:
We are operating 1700 tons per day capacity Sulphuric acid plant designed and constructed
by Miss. Simon carves (India). Sulphuric acid is used as in acidulated in the phosphoric acid
plan and is therefore only an intermediate production. Solid Sulphur is melted and filtered
then sent to the combustion chamber where it reacts with oxygen in the air. In the combustion
chamber Sulphur.Dioxide is formed from where hot gases are converter containing four beds
of vanadium pent oxide (v20s) catalyst. The euphoric dioxide is observed is converted to
sulphur trioxide is observed in the water in the final absorption tower to give sulphuric acid at
a concentration of 93%. The sulphuric acid generated in the inter absorption tower and final
absorption tower is routed to the sulphuric acid storage tanks from where it is frawn for the
use in the manufacture of phosphoric acid
The off gases from evaporation section are subscribed in fluorine recovery plant to
produce 13mt per day of hydrofluoric acid. The effluents from the reactor and evaporation
stages are treated in an effluent treatment plant. Reduce the fluorine phosphorus levels to
appropriate low values as foxed by the central pollution control board.
Complex plant:
The plant was designed and constructed by M/s. Wellman lord company USA. The
complex plant utilizes ammonia and phosphoric acid and urea to make urea ammonium
phosphate 28-28-0.whereas for manufacturing complex NPK 14-35-14, ammonia and
phosphoric acid are used along with potash, which is a ought out raw material. Mixed with
other feed stocks in the complex plant. In case of manufacturer of 16-20-0, 20-20-0,
Ammonia phosphoric acid and sulphuric acid are used as feeds.
Ammonia and phosphoric acid are first reacted in a reacted. The wet granules from
the granulator are then drid in a rotary drier using hot air derived from a furnace. The drier
output is a screened the proper size of granules is recovered as product. the product granules
are cooled in a cooling drum and sent to the product storage area or to the bagging plant .the
product material is a bagged in 50kg bags and are dispatched by rail/road to various parts in
India.
Accounting policies:
The accounts have been prepared primarily on the historical cost convention and in
accordance with the mandatory accounting standards. The significant accounting policies
followed by the company are stated below.
1. Fixed Assets: Fixed Assets are shown at cost or valuation less depreciation. Cost
comprises the purchases price and other attribute expenses. Fixed assets other than
leasehold land/improvement. Office equipment, furniture fitting, certain vehicles and
roads had been revalued on 31st March 1991, based on a valuation by an approved
value. The indices, if any used are not stated in the valuation.
2. Depreciation on Fixed Assets: Depreciation has been provided on straight-line
method. Depreciation on all assets (except those revalued and certain and vehicle and
equipment) has been provided over the useful lives of the assets derived from the rates
prescribed in schedule –XIV of the companies act, 1956 or at the rates given in the
schedule. Certain vehicles and equipment are depreciated at 20% per in certain
equipment (incl. material handling equipment) or depreciated at 12.5% or 20% per
annum. Depreciation on assets revalued as at 31st March 2008 is provided on the
basis of the residual technical life as ascertained by the value. Leasehold hold is being
amortized over the lease period.
3. Foreign Currency Transactions: Transactions made during the years in foreign
currency are recorded at the exchange rate prevailing at the time of transactions.
Assets and Liabilities related to foreign currency transactions remaining unsettled at
the year end are translated at contract rates, when covered by foreign exchange
contracts and at year end rates in other assets.
4. Investments: Investments are valued at cost of acquisition and related expenses.
5. Inventories: Stores and spares are valued at monthly weighed average cost. Other
inventories are valued at lower of cost and net realized value. The method of
determination of cost of various categories of inventory is as follows:
a. Raw Material – First in first out method. Cost includes purchase cost and attributable
expenses.
b. Finished goods and work – in – process – Weighted average cost of production which
comprises of direct material costs, direct wages and appropriate overheads.
c. Goods for resale – Weighted average cost.
6. Sundry Debtors and Advances: Specific debts and advances identified as irrecoverable
and doubtful are written off or provided for respectively.
7. Revenue Recognition:
a. Sale of goods recognized at the point dispatch to customers. Sales exclude amount
recovered excise duty and sales tax.
b. Dividend income from investments is accounted for when declared.
c. Subsidies: Credit for Government subsidies has been taken on the basis actual sales
made by the company.
Safety measures:
Our company as a responsible corporate citizen has always ensured that “safety” is
given foremost priority. As a policy, the company aims at achieving high standards of
personal safety, makes every effort to create a healthy work environment for its employees
and neighboring communities, and ensures protection to the company’s property from loss or
accidents. Coromandel has never compromised on safety awareness and safety
consciousness at all times-24 hours a day and 365 days. Our safety record are mo mean a
achievement.
As on April 17th 2009, best safety methods are of two they are;-
a) Accident free working days :456
Previous best method days: 2160
b) Accident free man hours: 1.40 millions
Precious best method: 8.30 millions
One million safe man hours : 37 times
Two million safe man hours : 11 times
Three million safe man hours : 5 times
Four million safe man hours : 2 times
Safety policy:
It is the policy of COROMANDEL FERTILIZERS LTD to conduct its activities in
manner which ensure health work Environment and safety to its employees.
Management has the responsibilities to ensure that all process, equipment and
facilities are designed, constructed, operated and maintained in safe condition. Cost
considerations or the demands of production and operations must not overshadow safety
considerations. It is the obligation of every employee to KNOW and FOLLOW our safety
rules and procedures; to TEACH what we know to others to REPORT promptly hazardous or
unsafe practices and conditions to concerned department head; to protect the company
properly from the loss or accident and to PERFORM his or her tasks to ensure the health and
safety of themselves, fellow employees and the neighboring communities
At one time plant secured the first place on the International fertilizer industries
sectional contest among 162 participating companies. In June 1998 COROMANDEL
INTERNATIONAL LIMITED won a five star rating from the British safety council for its
safety management systems for year 1995-96 COROMANDEL INTERNATIONAL
LIMITED won the “BEST PERFORMANCE OF A PHOSPHORIC ACID PLANT” and
“BEST ENVIRONMENT PROTECTION AMONG PHOSPHERIC FERTILIZER PLANT”
ABC Analysis:
All the spares and stores other than the construction meant for specific construction
activities are subjected to consumption analysis covering specific periods. Items Constituting
70% of the total annual consumption by value are classified as ‘A’ class items. Items
constituting the next 20% of the annual consumption value are classified as ‘B’ class items.
The remaining moving items constituting 10% of the consumption value are classified ‘C’
class items. Very large number of items by numbers falls under this classification whose
consumption value will be very low.
ABC analysis helps in classification of items in stores in A, B & C class.
XYZ Analysis:
Inventory holding of each project will also be analyzed with reference to value of the
holding against each item. It is found that about 70% of the total holding would be covered
by very small percentage of items by number, which will be around 10%. This category will
be classified as ‘X’ class items. Similarly items accounting for the remaining 20%
contributing will be categorized as ‘Y’ class items and the remaining items will be listed in
‘Z’ class. This analysis is usually done for the annual stock review.
In ABC analysis consumption value of items for a particular time span is considered.
In XYZ analysis inventory value of item on a particular day will be considered.
All steps in ABC analysis are followed in XYZ analysis.
VED Analysis: Vital Essential Desirable.
Vital:
It is not ready to available in market.
Essential :
Can be replaced immediately
Lead time for procurement is 1-2 month
Desirable :
The item is available at market
Lead time at procurement by low level
Cost will not much
VED analysis is generally useful for spares parts inventory for company’s plant & Machinery
Stores Management - CFL is having central stores for receiving and storing of
all incoming equipments, spares and stores till these are issued and disposed. These
stores are under the control of appropriate level officers reporting to head of the
materials managements department of the project.
Receipt section.
Custody / Issue section.
Responsibilities Of Receipt And Issue Sections :
Receipt Section :
Receipt of dispatch of documents and proper recording of details.
Taking delivery of the incoming consignments from the carriers.
Ensuring proper receipt of door delivery consignment.
Transportation of materials from carriers to receipt section.
Linking of the incoming consignments with purchase orders.
Preparation of receipt vouchers.
Custody of incoming consignments till handed over to custody section.
Handling over the accepted material to the custody section.
Taking claim action regarding rejected / short received / not received
materials with the carriers and suppliers and underwriters.
Lodging and follow up of the claims with carriers, underwriters and suppliers.
Checking of freight bills.
Reconciliation of store in transit.
Material coverage of transit insurance for incoming / outgoing consignments.
Coverage of fire insurance policy for store, important installations / capital
items.
Maintaining the receipt voucher register / outgoing register.
A card known as Kardex card is also prepared for each and every item in which
number of receipts and number of issues are noted down with transaction dates ( after
implementing SAP, these details are filled in Materials master). Does it provides the exact
available of the stock. It also provides the storage place of that particular item which enables
store keepers for convenient issues to the user department.
All transaction of receipts and issues are to be done by duly preparing. The receipt
vouchers and issue vouchers. The issue vouchers would be department indicating the items,
quantities demanded, code numbers, cost central numbers etc duly signed by the authorized
officer. The store keeper concerned while issuing would indicate his serial number reference
of the voucher on all copies along with the quantities issued and the balance after positing of
the issue. The same will be recorded in the issue the same will be recorded in the issue
control register. The issue voucher will also be signed by the store in charge, along with
concerned storekeeper.
Fire Prevention: As lot of inflammable materials will be stored in the central
stores, CFL takes necessary preventions to avoid any fire hazards.
Some of the precautionary actions are :
Store go down, store – yard and storage area around Petrol, Diesel tanks,
Lubricants are declared as no smoking zone, Prominent boards with no
smoking painted there upon are displayed at all such places.
Adequate number of and types of fire extinguishers are provided at proper
places to combat general fires, oil fires and electrical fires.
Adequate number of fire buckets with sand some water are kept in the stands
duly filled to be used in case of any eventuality of fire.
Fire alarm bell is mounted on the fire bucket stands to sound fire alarms.
Drainage arrangements with adequate slope are provided in place of the
storage of the lubricants, plants, varnishes etc. so that any leakage may drain
off from the storage area.
Cotton wastes, paints and other inflammable materials are stored separately.
During night times when store is closed it is ensured that the main switch of
store is switched off to vaid any electrical short – circuiting and consequent
fire hazards.
Collection of Scrap and Used Materials:
The indenting department after using the issue materials would return the corresponding
scrap or old spares to the stores for custody and disposal. Such materials will be accounted in
separate ledgers and are segment according to the nature of the materials. All such scrap
items will be listed and got surveyed by the survey committee before offering the same for
disposal by tender or auction
Literature Review:
Brent D. Williams and Travis Tokar, (2008) in their study “A review of inventory
management research in major logistics journals: Themes and future directions",discussed
that logistics researchers have focused considerable attention on integrating traditional
logistics decisions, such as transportation and warehousing, with inventory management
decisions, using traditional inventory control models.
Logistics researchers have more recently focused on examining inventory management
through collaborative models.
B.J. Grablowsky, (2005) in his paper “Financial management of inventory” surveyed small
business inventory management practices and compared with techniques commonly
employed by large corporations. It appears that smaller firms rely on simple controls. Large
businesses rely more on quantitative techniques, such as EOQ and linear programming, to
provide additional information for decision-making, while small firms are more likely to use
management judgment without the quantitative back-up. Of those small firms which did not
use quantitative methods for determining inventory order and stock levels, the most common
qualitative methods were "past experience" and "executive judgment,".
S. M. Disney and D. R. Towill (2003) in their research “The effect of vendor managed
inventory (VMI) dynamics on the Bullwhip Effect in supply chain”compares the expected
performance of a vendor managed inventory (VMI) supply chain with a traditional “serially
linked” supply chain. The emphasis of this investigation is the impact these two alternative
structures have on the “Bullwhip Effect” generated in the supply chain. We pay particular
attention to the manufacturer's production ordering activities via a simulation model based on
difference equations. VMI is thereby shown to be significantly better at responding to volatile
changes in demand such as those due to discounted ordering or price variations. Inventory
recovery as measured by the integral of time×absolute error performance metric is also
substantially improved via VMI. Noise bandwidth, that is a measure of capacity
requirements, is then used to estimate the order rate variance in response to random customer
demand. Finally, the paper simulates the VMI and traditional supply chain response to a
representative retail sales pattern. The results are in accordance with “rich picture”
performance predictions made from deterministic inputs.
Julius A. Sharma, Dinesh K. Sharma, Hari P (2004) discussed Supply Chain (SC), which
involves the configuration, coordination, and improvement of sequentially related set of
operations in establishments, integrates technology and human resource capacity for optimal
management of operations to reduce inventory requirements and provide support to
enterprises in pursuance of a competitive advantage in the marketplace. This paper addresses
the structures of supply chain management (SCM) and the activities involved in SCM
decisions that help promote profound improvement in efficiency and effectiveness in
business operations. In broader context, the paper examines the types of activities involved in
SCM `decisions; the dynamics of the traditional SCM, the complementarities of technology
in achieving effective management of operations through enablers of electronic data
interchange (EDI) and quick response (QR) disciplines to implement Just-in-Time (JIT)
management techniques; and integrated SC and inventory control as it relates to capacity
imbalances and transaction costs
CHAPTER – 4
DATA ANALYSIS &INTERPRETATION
ABC ANALYSIS
For the year 2011-12:
Table -1:
Segment Group Material Description Usage Value
A p02 Chemicals 74499925
A p03 Fuels 55485646
A m43 iron and steel 20435473
A m41 Lubricants 8802925
A m08 Conveyors 7867812
B me02 Bearings 6359657
B mi01 Filters 6324803
B c200 Building 5486710
B m30 Pumps 5293910
B m22 Mechanics 5084541
B g05 safety items 5036182
B me01 Welding 3282546
B m34 Screens 3083142
B m13 Fastener 2639775
B m11 Gases 2366373
B p01 Catalyst 2247652
B m28 Pipes 2099862
B m44 Packings 1831009
C m27 pipe fittings 1709575
C m40 Valves 1672088
C m06 Chains 1591554
C m33 rubber lined pipes 1065980
C m45 Automobile 1013716
C me03 Drier 597441
C m16 Gears 10396.21
Table -1(a):
SEGMENT No. of total usage value in
GROUP Items Items % segment Usage %
A segment 7 28% 174826143 79.61%
B segment 8 32% 29545870.7 13.47%
C segment 10 40% 15210128.1 6.92%
Total 25 100% 219582142 100%
Graph -1:
Interpretation:- During the year 2011-12, 28% of the items with 79.61 % of value have been
classified as A class items which requires tight control and strict monitoring. 32% of items
with 13.47% of value under B category which requires only medium control and the
remaining items of 40 % with 6.92 % value are under C category which requires least control.
Table – 2 (a):
Total usage value in
segment
A segment 7 28% 383923471.3 87.05%
B segment 8 32% 39254674.54 8.90%
C segment 10 40% 17848773.35 4.05%
Total 25 100% 441026919.1 100%
Graph -2:
Interpretation:- During the year 2012-13, 28% of the items with 87.05 % of value have been
classified as A class items which requires tight control and strict monitoring. 32% of items
with 8.9 % of value under B category which requires only medium control and the
remaining items of 40% with 4.05 % value are under C category which requires least control.
Graph-3:
2013-14
120.00%
100.00%
% of Consumption
80.00%
60.00%
40.00%
20.00%
0.00%
% of Items
Interpretation:- During the year 2013-14, 71 % of value have been classified as A class
items which requires tight control and strict monitoring. 19.88 % of value under B category
which requires only medium control and the remaining items of 9.12 % value are under C
category which requires least control.
For the year 2014-15:
Table -4:
Sl. No Segment Material Usage Value Cum. Value
1 P02 Chemical-Bulk&Proces 785,65,719.77 785,65,719.77
2 P03 Fuels 586,76,903.83 1372,42,623.60
3 P01 Catalysts 238,92,480.00 1611,35,103.60
4 M08 Convyrs,Belts&Rollrs 127,45,249.48 1738,80,353.08
5 M43 Iron & Steel 95,71,975.47 1834,52,328.55
6 A M27 Pipe fittings-non RL 84,04,899.44 1918,57,227.99
7 M22 Mech Misc., Spares 82,37,055.76 2000,94,283.75
8 MI01 Filters&Accessories 80,12,883.20 2081,07,166.95
9 M41 Lubricants&Greases 78,19,529.23 2159,26,696.18
10 ME02 Bearings 60,28,581.97 2219,55,278.15
11 M09 Coolng Towers Spares 56,20,927.37 2275,76,205.52
12 M30 Pumps & Pump Spares 56,07,154.41 2331,83,359.93
13 C200 Building Material 45,73,213.98 2377,56,573.91
14 M44 Packings & Gaskets 39,69,188.52 2417,25,762.43
15 M13 Fasteners 34,66,881.40 2451,92,643.83
16 G06 Welfare items 33,34,810.36 2485,27,454.19
17 M40 Valves & Spares 31,19,860.09 2516,47,314.28
18 MC01 Refractry&Insul Matl 30,89,199.51 2547,36,513.79
19 E02 Electr Spares (Misc) 29,86,908.20 2577,23,421.99
20 ME01 Welding Eqp,Electrod 28,25,773.41 2605,49,195.40
21 M15 Gantry items 27,06,698.67 2632,55,894.07
22 G05 Safety Items 27,01,584.48 2659,57,478.55
B
23 M25 Paints,Addtves&brush 25,72,164.40 2685,29,642.95
24 P04 Lab Chem&Apparatus 25,14,185.25 2710,43,828.20
25 A001 Ammonia 24,99,602.05 2735,43,430.25
26 M16 Gears,Gear box&Spare 24,35,738.37 2759,79,168.62
27 M06 Chains - Drive 24,31,765.84 2784,10,934.46
28 MEI05 Compressors & Spares 22,89,830.57 2807,00,765.03
29 MEI02 DG Set Spares 22,00,417.26 2829,01,182.29
30 M34 Screens & Graders 21,63,968.35 2850,65,150.64
31 CIH Transmitters 17,86,945.20 2868,52,095.84
32 M28 Pipes (non RL) 17,01,503.88 2885,53,599.72
33 M33 Rubber lined pipes 14,77,007.89 2900,30,607.61
34 CIU Miscellaneous 14,50,447.69 2914,81,055.30
35 M11 Gases 14,32,175.41 2929,13,230.71
36 M32 Rubber lined fitting 14,04,816.20 2943,18,046.91
37 G03 Office & Admin items 13,58,096.21 2956,76,143.12
38 C CIK Control Valves 13,00,484.83 2969,76,627.95
39 E06 Motors&Drive spares 12,20,457.65 2981,97,085.60
40 E04 Luminar&Wiring Matl 10,82,209.75 2992,79,295.35
41 EI04 Cables & Wires 10,43,812.35 3003,23,107.70
42 M38 Tools & Jigs 9,92,602.75 3013,15,710.45
43 M03 Bearing Accessories 9,64,947.00 3022,80,657.45
44 M45 Automobile-Heavy Sp 9,54,001.43 3032,34,658.88
45 EI05 CB,Contctr,Rely&Coil 9,49,151.85 3041,83,810.73
46 CIE Sensors 9,21,263.65 3051,05,074.38
47 CIP Weighing Eqpt 8,28,214.49 3059,33,288.87
48 CIM Cylnder/Lubricat/reg 8,04,690.31 3067,37,979.18
MEI04 Baggng&Packg M/c
49 Sp 7,21,726.88 3074,59,706.06
50 I05 Instrumt Misc,Spares 6,77,029.54 3081,36,735.60
51 P08 Raw material 6,71,616.85 3088,08,352.45
52 M10 Couplings-Drive 6,70,401.67 3094,78,754.12
53 CIN Cables 6,69,614.92 3101,48,369.04
54 E08 Refrigeratn&A/C item 6,63,498.67 3108,11,867.71
55 G02 General Miscellan. 6,30,808.75 3114,42,676.46
56 M39 V Belts & Pulleys 5,61,520.00 3120,04,196.46
COROMANDEL
INTERNATIONAL LIMITED
57 Safety Valves 5,01,388.89 3125,05,585.35
58 ME03 Drier/Granulators 4,29,013.35 3129,34,598.70
59 M18 Heat Exchgrs&spares 4,25,630.42 3133,60,229.12
60 CIT Electronics 4,19,701.64 3137,79,930.76
61 CIA Front Panel Instrume 4,05,035.12 3141,84,965.88
62 CIO tubes&tube fittings 3,30,061.10 3145,15,026.98
63 CIG Gauges/Rotometer/wat 3,25,059.08 3148,40,086.06
64 M17 Grinding med&Abrasvs 3,14,158.83 3151,54,244.89
65 CIJ PH/Conducty analyser 2,96,953.39 3154,51,198.28
66 MI02 Tubing & hoses 2,69,539.04 3157,20,737.32
67 CII Solenoid&Puse Valves 2,63,507.16 3159,84,244.48
68 M35 Sprayers 2,50,400.00 3162,34,644.48
69 M42 Non-Ferrous Matl-Gen 2,25,461.02 3164,60,105.50
70 M24 O Rings & Oil Seals 1,99,307.30 3166,59,412.80
71 M04 Blowers & Fan Spares 1,97,977.13 3168,57,389.93
72 M01 Agitators&Mixing Eqp 1,87,964.97 3170,45,354.90
73 EI03 Cable Skts,connect 1,80,267.35 3172,25,622.25
74 CIS Measurg&calibrat eqp 1,75,552.77 3174,01,175.02
75 G08 Staionery/Periph-IT 1,74,149.00 3175,75,324.02
76 P06 Packing material 1,54,708.54 3177,30,032.56
77 M12 Elevators & Spares 1,25,281.55 3178,55,314.11
78 G04 Fire Items 1,22,089.36 3179,77,403.47
79 E07 Transformers&Spares 1,21,919.05 3180,99,322.52
80 CIF Swithces 1,18,016.20 3182,17,338.72
81 E03 Fuse switches 1,09,521.12 3183,26,859.84
82 M21 M/C Tools & Spares 1,09,083.56 3184,35,943.40
83 CIQ Equipment Spares 1,01,080.60 3185,37,024.00
84 E01 Alternators & Spares 93,297.60 3186,30,321.60
85 CIC PLC/DCS Spares 93,181.29 3187,23,502.89
86 MEI01 Boilers & Spares 76,053.77 3187,99,556.66
87 MEI06 Turbines & spares 53,256.09 3188,52,812.75
88 M46 Automobile-Light Sp 47,017.50 3188,99,830.25
89 MECH Pipes&Fittings 44,505.47 3189,44,335.72
90 CIR Communication Eqpt 31,328.00 3189,75,663.72
91 I08 Transmttrs,Controllr 29,502.14 3190,05,165.86
92 M02 Ball Mill&Crusher Sp 28,919.65 3190,34,085.51
93 EI02 Fuses, Dist Boards 16,037.07 3190,50,122.58
94 CIB Inside Panel Instrum 14,553.11 3190,64,675.69
95 E05 Meters - Elec 6,666.44 3190,71,342.13
96 M19 Heaters & Coolers 808.29 3190,72,150.42
97 MEIC01 Kiln & Furnaces 0 3190,72,150.42
98 M48 Scrubber&Accessories 0 3190,72,150.42
99 M37 Sprockets 0 3190,72,150.42
100 M29 Plastics 0 3190,72,150.42
101 M26 Pans 0 3190,72,150.42
102 I09 Weighing Eqp,spares 0 3190,72,150.42
103 I07 Sensors-TC,DP sensor 0 3190,72,150.42
104 I06 Recorders & meters 0 3190,72,150.42
105 I04 Gauges & Sight glass 0 3190,72,150.42
106 I03 DCS Spares & Cards 0 3190,72,150.42
107 I02 Control Panels 0 3190,72,150.42
108 I01 Control&Safety Valve 0 3190,72,150.42
109 EI01 Electronics(Misc.,) 0 3190,72,150.42
110 CID Feeder Spares 0 3190,72,150.42
Table – 4(a):
Segmen
t No. Of items % of Items Total Usage value % of usage value
A 11 10.00% 2275,76,205.52 71.32%
B 22 20.00% 624,54,402.09 19.57%
C 77 70.00% 290,41,542.81 9.10%
Total 110 100.00% 3190,72,150.42 100%
Graph-4:
2014-15
120.00%
100.00%
% of Total Usage Vaue
80.00%
60.00%
40.00%
20.00%
0.00%
10.00% 20.00% 70.00% 100.00%
% of Items
Interpretation:- During the year 2014-15, 71.32 % of value have been classified as A
class items which requires tight control and strict monitoring. 19.57 % of value under B
category which requires only medium control and the remaining items of 9.10 % value are
under C category which requires least control.
CUMMILATIVE
S.N SEGME MATERIAL MATERIAL USAGE
USAGE
O NT GROUP DESCRIPTION VALUE
VALUE
Chemical- 65,211,090.9
1 P02 65,211,090.99
Bulk&Proces 9
31,628,264.1
2 P01 Catalysts 96,839,355.10
1
3 A P03 Fuels
29,240,500.5
2
126,079,855.62
13,777,903.5
4 M43 Iron & Steel 139,857,759.13
1
Convyrs,Belts&Rol 11,076,404.8
5 M08 150,934,163.99
lrs 6
Pumps & Pump 10,431,739.3
6 M30 161,365,903.38
Spares 9
7 M22 Mech Misc., 9,572,115.44 170,938,018.82
Spares
Lubricants&Greas
8 M41 7,079,521.72 178,017,540.54
es
9 ME02 Bearings 7,065,293.15 185,082,833.69
Filters&Accessorie
10 MI01 6,744,024.45 191,826,858.14
s
11 G05 Safety Items 5,262,327.76 197,089,185.90
12 C200 Building Material 4,581,299.96 201,670,485.86
13 M40 Valves & Spares 4,467,076.51 206,137,562.37
Pipe fittings-non
14 M27 4,415,121.52 210,552,683.89
RL
Heat
15 M18 3,866,200.45 214,418,884.34
Exchgrs&spares
Packings &
16 M44 3,796,970.47 218,215,854.81
Gaskets
17 M06 Chains - Drive 3,580,642.05 221,796,496.86
Paints,Addtves&br
18 M25 3,420,482.92 225,216,979.78
ush
19 M13 Fasteners 3,247,292.05 228,464,271.83
Refractry&Insul
20 MC01 3,117,931.21 231,582,203.04
Matl
Screens &
21 M34 2,893,325.55 234,475,528.59
Graders
22 M15 Gantry items 2,544,660.67 237,020,189.26
23 M28 Pipes (non RL) 2,439,119.16 239,459,308.42
Lab
24 P04 2,320,760.58 241,780,069.00
B Chem&Apparatus
Automobile-Heavy
25 M45 2,291,892.78 244,071,961.78
Sp
Welding
26 ME01 2,115,284.04 246,187,245.82
Eqp,Electrod
Gears,Gear
27 M16 1,854,400.72 248,041,646.54
box&Spare
28 G06 Welfare items 1,788,927.65 249,830,574.19
29 M38 Tools & Jigs 1,641,060.62 251,471,634.81
30 M11 Gases 1,598,323.67 253,069,958.48
31 M33 Rubber lined pipes 1,530,191.76 254,600,150.24
32 M32 Rubber lined fitting 1,472,551.83 256,072,702.07
33 A001 Ammonia 1,471,189.86 257,543,891.93
Grinding
34 M17 1,454,113.60 258,998,005.53
med&Abrasvs
Office & Admin
35 G03 1,416,202.76 260,414,208.29
items
36 MEI02 DG Set Spares 1,391,786.07 261,805,994.36
CB,Contctr,Rely&
37 EI05 1,378,078.61 263,184,072.97
Coil
Staionery/Periph-
38 G08 1,256,778.08 264,440,851.05
C IT
Electr Spares
39 E02 1,206,409.73 265,647,260.78
(Misc)
Baggng&Packg
40 MEI04 1,131,765.78 266,779,026.56
M/c Sp
41 EI04 Cables & Wires 1,128,021.30 267,907,047.86
42 E04 Luminar&Wiring 1,079,624.39 268,986,672.25
Matl
43 MEI05 Compressors & 1,009,367.45 269,996,039.70
Spares
44 G02 General Miscellan. 918,952.65 270,914,992.35
45 M10 Couplings-Drive 894,716.34 271,809,708.69
Motors&Drive
46 E06 834,690.64 272,644,399.33
spares
Bearing
47 M03 779,854.23 273,424,253.56
Accessories
Coolng Towers
48 M09 717,604.33 274,141,857.89
Spares
PH/Conducty
49 CIJ 692,788.64 274,834,646.53
analyser
50 ME03 Drier/Granulators 666,112.59 275,500,759.12
51 CIH Transmitters 615,993.97 276,116,753.09
52 M39 V Belts & Pulleys 531,693.68 276,648,446.77
53 CIL Safety Valves 524,398.42 277,172,845.19
54 CIE Sensors 518,077.91 277,690,923.10
Cylnder/Lubricat/r
55 CIM 387,851.86 278,078,774.96
eg
56 CIP Weighing Eqpt 357,540.99 278,436,315.95
57 CIU Miscellaneous 320,824.14 278,757,140.09
Cable
58 EI03 287,356.37 279,044,496.46
Skts,connect
Blowers & Fan
59 M04 278,611.62 279,323,108.08
Spares
M/C Tools &
60 M21 271,901.11 279,595,009.19
Spares
61 CIK Control Valves 244,036.02 279,839,045.21
62 CIT Electronics 234,649.34 280,073,694.55
Elevators &
63 M12 233,745.70 280,307,440.25
Spares
64 MI02 Tubing & hoses 209,836.12 280,517,276.37
Refrigeratn&A/C
65 E08 207,907.74 280,725,184.11
item
Gauges/Rotomete
66 CIG 172,501.31 280,897,685.42
r/wat
67 G04 Fire Items 168,458.62 281,066,144.04
68 E03 Fuse switches 162,660.51 281,228,804.55
69 P06 Packing material 161,850.00 281,390,654.55
70 CIO tubes&tube fittings 157,633.84 281,548,288.39
71 M35 Sprayers 147,900.00 281,696,188.39
Non-Ferrous Matl-
72 M42 145,269.63 281,841,458.02
Gen
Solenoid&Puse
73 CII 139,111.05 281,980,569.07
Valves
74 MEI06 Turbines & spares 125,276.03 282,105,845.10
O Rings & Oil
75 M24 114,935.49 282,220,780.59
Seals
Front Panel
76 CIA 97,169.78 282,317,950.37
Instrume
77 CIN Cables 95,727.00 282,413,677.37
78 MEI01 Boilers & Spares 72,610.20 282,486,287.57
79 CIF Swithces 57,154.33 282,543,441.90
80 EI01 Electronics(Misc.,) 49,306.12 282,592,748.02
Automobile-Light
81 M46 48,567.70 282,641,315.72
Sp
82 CIC PLC/DCS Spares 47,783.80 282,689,099.52
83 M37 Sprockets 47,687.04 282,736,786.56
Measurg&calibrat
84 CIS 47,165.30 282,783,951.86
eqp
Communication
85 CIR 38,719.32 282,822,671.18
Eqpt
Ball Mill&Crusher
86 M02 31,952.12 282,854,623.30
Sp
87 E05 Meters - Elec 30,673.10 282,885,296.40
Transformers&Spa
88 E07 24,048.00 282,909,344.40
res
89 M19 Heaters & Coolers 22,236.56 282,931,580.96
Alternators &
90 E01 9,680.00 282,941,260.96
Spares
Inside Panel
91 CIB 9,549.12 282,950,810.08
Instrum
Fuses, Dist
92 EI02 1,008.00 282,951,818.08
Boards
93 P08 Raw material 0 282,951,818.08
94 MEIC01 Kiln & Furnaces 0 282,951,818.08
95 M48 Scrubber&Access
0 282,951,818.08
ories
96 M29 Plastics 0 282,951,818.08
97 M26 Pans 0 282,951,818.08
Agitators&Mixing
98 M01 0 282,951,818.08
Eqp
Weighing
99 I09 0 282,951,818.08
Eqp,spares
Transmttrs,Control
100 I08 0 282,951,818.08
lr
Sensors-TC,DP
101 I07 0 282,951,818.08
sensor
Recorders &
102 I06 0 282,951,818.08
meters
Instrumt
103 I05 0 282,951,818.08
Misc,Spares
Gauges & Sight
104 I04 0 282,951,818.08
glass
DCS Spares &
105 I03 0 282,951,818.08
Cards
106 I02 Control Panels 0 282,951,818.08
Control&Safety
107 I01 0 282,951,818.08
Valve
108 CIQ Equipment Spares 0 282,951,818.08
109 CID Feeder Spares 0 282,951,818.08
Table – 5(a):
Segmen No. Of items % of Items Total Usage value % of usage value
t
A 11 10.10% 197,089,185.90 69.65%
B 20 18.35% 57,510,964.34 20.32%
C 78 71.55% 28,351,667.84 10.02%
Total 109 100.00% 282,951,818.08 100%
Graph-5:
2015-16
120.00%
100.00%
% of Total usage Value
80.00%
60.00%
40.00%
20.00%
0.00%
10% 20% 70% 100%
% of items
Interpretation :- During the year 2015-16, 69.65% of value have been classified as A
class items which requires tight control and strict monitoring. 20.32 % of value under B
category which requires only medium control and the remaining items of 10.02 % value are
under C category which requires least control.
XYZ ANALYSIS:
Table – 2(a):
Y 48.358 938
Z 24.434 3005
TOTAL 249.71 4573
Graph – 1:
Y, 48.358 X
Y
Z
INTERPRETATION: X, 176.92
During the year of the study 2011-12, X value items have considerably increased to
176 Lakhs where as Y & Z category items have come down to 48 Lakhs & 24 Lakhs
respectively.
% on
Class Value value Items
Graph – 2:
INTERPRETATION:
During the last year of the study 2012-13 X value items have considerably increased
whereas Y & Z category items have also increased respectively.
Stock items for the year 2013-14:
Table – 3:
Sl. NO Material Group Stock Rate ValStockValue
1 P03 Fuels 4 46,73,047.02 186,92,188.06
2 M30 Pumps & Items 407 40,227.33 163,72,522.08
3 M15 Gantry i 32 4,52,965.90 144,94,908.83
4 M08 Convyrs, 80 1,39,342.48 111,47,398.78
5 MI01 Filters& 55 1,38,699.81 76,28,489.78
6 M27 Pipe fit 406 15,270.55 61,99,844.64
7 P02 Chemical 13 4,71,680.89 61,31,851.57
8 M16 Gears,Ge 64 90,636.39 58,00,728.88
9 M43 Iron & S 75 75,867.30 56,90,047.77
10 E06 Motors&D 63 77,312.74 48,70,702.67
11 M04 Blowers 15 3,05,034.71 45,75,520.71
12 E02 Electr S 73 62,304.95 45,48,261.17
13 M32 Rubber l 78 54,660.04 42,63,483.14
14 EI01 Electron 33 1,27,440.11 42,05,523.77
15 M40 Valves & 71 58,106.45 41,25,558.03
16 ME02 Bearings 182 22,439.42 40,83,974.43
17 MEI02 DG Set S 208 18,690.28 38,87,577.40
18 M22 Mech Mis 119 28,680.76 34,13,010.07
19 A001 Ammonia 57 56,733.02 32,33,782.18
20 EI05 CB,Contc 83 38,726.64 32,14,311.13
21 M45 Automobi 295 10,138.85 29,90,959.76
22 M41 Lubrican 28 1,01,821.90 28,51,013.30
23 M33 Rubber l 32 80,808.72 25,85,878.95
24 MC01 Refractr 17 1,48,508.35 25,24,641.94
25 M34 Screens 18 1,17,768.91 21,19,840.30
26 CIH Transmit 27 78,493.41 21,19,322.01
27 M44 Packings 122 16,034.91 19,56,259.57
28 MEI04 Baggng&P 280 6,942.91 19,44,015.45
29 G05 Safety I 57 32,256.18 18,38,602.10
30 M06 Chains - 30 57,137.86 17,14,135.75
31 MEI05 Compress 84 20,232.84 16,99,558.41
32 ME03 Drier/Gr 5 3,31,753.72 16,58,768.59
33 M38 Tools & 155 10,079.85 15,62,376.74
34 I06 Recorder 46 33,377.42 15,35,361.36
35 C200 Building 24 63,826.86 15,31,844.52
36 M25 Paints,A 24 57,299.52 13,75,188.54
37 M03 Bearing 74 18,274.28 13,52,296.63
38 M10 Coupling 81 15,807.52 12,80,408.79
39 M12 Elevator 21 55,095.07 11,56,996.46
40 COROMANDEL 10 1,14,159.61 11,41,596.08
INTERNATIONAL LIMITED
Safety V
41 ME01 Welding 48 22,849.51 10,96,776.41
42 M13 Fastener 188 5,796.46 10,89,735.31
43 CIK Control 33 30,548.62 10,08,104.44
44 M28 Pipes ( 29 34,694.68 10,06,145.79
45 MEI06 Turbines 35 28,687.56 10,04,064.56
46 E04 Luminar& 46 17,082.25 7,85,783.71
47 M24 O Rings 81 9,368.59 7,58,855.63
48 CIP Weighing 11 66,843.09 7,35,274.01
49 M09 Coolng T 7 98,327.79 6,88,294.50
50 CIM Cylnder/ 60 11,136.23 6,68,173.62
51 EI04 Cables & 7 93,265.26 6,52,856.80
52 I05 Instrumt 66 9,536.37 6,29,400.16
53 M42 Non-Ferr 11 55,706.62 6,12,772.80
54 I08 Transmtt 16 38,012.58 6,08,201.27
55 M18 Heat Exc 4 1,51,518.58 6,06,074.31
56 CIE Sensors 34 17,771.01 6,04,214.40
57 G04 Fire Ite 24 23,466.92 5,63,206.06
58 M39 V Belts 64 8,555.94 5,47,580.35
59 CIJ PH/Condu 3 1,76,053.48 5,28,160.45
60 CIN Cables 2 2,42,674.56 4,85,349.12
61 I07 Sensors- 20 20,667.02 4,13,340.30
62 I01 Control& 15 27,309.86 4,09,647.90
63 CII Solenoid 27 14,887.92 4,01,973.81
64 CIA Front Pa 10 40,061.52 4,00,615.24
65 CIG Gauges/R 47 7,704.53 3,62,112.96
66 CIU Miscella 21 17,010.12 3,57,212.61
67 M21 M/C Tool 16 19,498.27 3,11,972.28
68 CIC PLC/DCS 6 48,125.18 2,88,751.06
69 CIQ Equipmen 5 49,670.68 2,48,353.42
70 M17 Grinding 7 34,488.85 2,41,421.97
71 G06 Welfare 3 75,728.28 2,27,184.84
72 EI02 Fuses, D 19 11,352.09 2,15,689.73
73 E08 Refriger 28 7,515.09 2,10,422.49
74 MEI01 Boilers 23 8,585.07 1,97,456.65
75 CIO tubes&tu 46 3,232.39 1,48,689.74
76 P04 Lab Chem 3 44,919.34 1,34,758.01
77 M19 Heaters 6 22,235.88 1,33,415.27
78 EI03 Cable Sk 30 4,274.37 1,28,231.16
79 CIS Measurg& 3 39,842.86 1,19,528.58
80 G02 General 3 38,853.47 1,16,560.40
81 I04 Gauges & 8 14,126.22 1,13,009.73
82 E03 Fuse swi 18 6,252.27 1,12,540.78
83 E07 Transfor 9 11,664.33 1,04,978.94
84 CIF Swithces 8 12,834.12 1,02,672.96
85 M37 Sprocket 5 19,615.41 98,077.03
86 M35 Sprayers 1 70,200.00 70,200.00
87 G03 Office & 3 21,462.56 64,387.69
88 M11 Gases 6 10,051.53 60,309.17
89 MI02 Tubing & 3 11,150.08 33,450.24
90 I03 DCS Spar 3 6,458.67 19,376.00
91 M02 Ball Mil 2 9,105.03 18,210.06
92 CIB Inside P 5 3,441.97 17,209.86
93 M46 Automobi 6 2,290.97 13,745.79
94 P06 Packing 1 12,565.86 12,565.86
95 I09 Weighing 5 2,479.63 12,398.16
96 M01 Agitator 1 11,489.19 11,489.19
97 CID Feeder S 2 4,232.00 8,464.00
98 CIT Electron 7 232.86 1,630.00
99 CIR Communic 1 350.00 350.00
Table – 3(a):
Class Value (In Lakhs) Stock
X 1,358.98 475
Y 388.28 950
Z 194.14 3324
Graph-3:
XYZ analysis for the year 2013-14
Value of items in Lakhs
X
Y
Z
INTERPRETATION:
During the year of the study 2013-14, X value items have considerably increased to
1,358 Lakhs where as Y & Z category items have come down to 388 Lakhs & 194 Lakhs
respectively.
X 1,254.94 628.2
Y 358.56 1256.4
Z 179.28 4397.4
Graph-4:
X
Y
Z
INTERPRETATION:
During the year of the study 2014-15, X value items have considerably increased to
1,254 Lakhs where as Y & Z category items have come down to 358 Lakhs & 179 Lakhs
respectively.
Stock items for the year 2015-16:
Table-5:
Sl.No. Material Group stock Rate ValStockValue
1 M30 Pumps & Pump
Spares 2,140 8677.98 18,570,872.53
2 M27 Pipe fittings-non RL 5,219 2315.35 12,082,879.02
3 M15 Gantry items 618 18193.48 11,234,474.72
4 P03 Fuels 21,517 352.48 7,584,123.22
5 M16 Gears,Gear
box&Spare 164 42825.81 7,002,020.48
6 M08 Convyrs,Belts&Rollrs 3,689 1818.08 6,705,987.30
7 P02 Chemical-Bulk&Proces 48,125 127.57 6,139,140.54
8 E06 Motors&Drive spares 801 7563.86 6,058,651.59
9 MI01 Filters&Accessories 54,007 111.17 6,003,925.31
10 M04 Blowers & Fan Spares 61 86090.88 5,251,543.88
11 MC01 Refractry&Insul Matl 57,031 76.46 4,360,529.54
12 EI01 Electronics(Misc.,) 44 96433.35 4,243,067.31
13 E02 Electr Spares (Misc) 2,053 2028.42 4,164,760.39
14 M43 Iron & Steel 27,941 143.52 4,010,247.12
15 EI05 CB,Contctr,Rely&Coil 487 7301.60 3,555,881.33
16 MEI02 DG Set Spares 1,184 3000.85 3,552,257.19
17 ME02 Bearings 1,016 3416.32 3,469,272.54
18 M40 Valves & Spares 370 8923.51 3,301,698.77
19 M22 Mech Misc., Spares 7,352 446.65 3,283,722.17
20 M45 Automobile-Heavy Sp 1,790 1800.41 3,222,728.73
21 M32 Rubber lined fitting 184 17459.60 3,203,837.01
22 CIH Transmitters 282 10018.11 2,825,106.07
23 MEI04 Baggng&Packg M/c
Sp 5,070 526.09 2,667,291.94
24 MEI05 Compressors &
Spares 767 3158.80 2,422,802.30
25 M34 Screens & Graders 572 3983.67 2,277,581.29
26 M33 Rubber lined pipes 125 18115.37 2,264,421.57
27 CIK Control Valves 346 6096.80 2,109,491.50
28 M28 Pipes (non RL) 2,745 739.05 2,028,443.99
29 M41 Lubricants&Greases 10,669 183.12 1,953,692.68
30 M03 Bearing Accessories 398 4893.43 1,947,584.16
31 A001 Ammonia 4,985 351.88 1,754,304.89
32 CIL Safety Valves 22 75928.38 1,670,424.35
33 M06 Chains – Drive 1,744 957.84 1,669,986.44
34 M18 Heat Exchgrs&spares 23 72307.48 1,663,072.08
35 M10 Couplings-Drive 442 3754.16 1,659,339.69
36 CII Solenoid&Puse Valves 148 10841.41 1,604,527.98
37 M44 Packings & Gaskets 4,547 348.37 1,583,931.68
38 ME03 Drier/Granulators 43 34853.86 1,498,715.84
39 P01 Catalysts 8,000 183.60 1,468,800.00
40 M38 Tools & Jigs 3,339 424.38 1,416,989.63
41 G05 Safety Items 10,143 136.05 1,379,915.57
42 I06 Recorders & meters 4 307748.34 1,230,993.36
43 M13 Fasteners 110,257 10.68 1,177,316.78
44 M12 Elevators & Spares 343 3241.54 1,111,848.53
45 EI04 Cables & Wires 2,718 405.03 1,100,877.37
46 MEI06 Turbines & spares 269 3888.66 1,044,104.06
47 C200 Building Material 34,139 29.95 1,022,330.92
48 ME01 Welding Eqp,Electrod 84,739 9.51 806,044.64
49 CIP Weighing Eqpt 45 17653.47 794,406.24
50 M17 Grinding med&Abrasvs 1,831 424.51 777,200.66
51 M24 O Rings & Oil Seals 666 1060.08 706,014.32
52 M39 V Belts & Pulleys 565 1244.45 703,115.19
53 CIE Sensors 136 4416.73 600,674.88
54 CIG Gauges/Rotometer/wat 138 4311.39 594,972.01
55 M42 Non-Ferrous Matl-Gen 91 6274.34 569,083.00
56 CIU Miscellaneous 6,278 87.31 548,149.96
57 CIM Cylnder/Lubricat/reg 657 811.50 533,155.86
58 CIJ PH/Conducty analyser 12 44016.18 528,194.20
59 E04 Luminar&Wiring Matl 1,816 275.14 499,649.66
60 M25 Paints,Addtves&brush 5,001 96.32 481,710.98
61 G04 Fire Items 398 1089.27 433,529.17
62 M09 Coolng Towers Spares 45 9264.83 416,917.22
63 E08 Refrigeratn&A/C item 539 727.78 392,276.01
64 CIC PLC/DCS Spares 20 18208.00 364,160.03
65 CIA Front Panel Instrume 67 5280.43 353,788.87
66 EI02 Fuses, Dist Boards 364 788.24 286,918.46
67 MEI01 Boilers & Spares 133 2034.32 270,565.10
68 M21 M/C Tools & Spares 54 4701.00 253,854.18
69 CIQ Equipment Spares 7 33231.48 232,620.35
70 I05 Instrumt Misc,Spares 97 2165.81 210,083.10
71 I01 Control&Safety Valve 3 69094.55 207,283.66
72 P04 Lab Chem&Apparatus 3,228 61.94 199,928.48
73 E03 Fuse switches 225 761.17 171,264.07
74 I07 Sensors-TC,DP sensor 2 76280.14 152,560.27
75 CIO tubes&tube fittings 1,501 96.48 144,812.85
76 M19 Heaters & Coolers 190 719.09 136,627.22
77 EI03 Cable Skts,connect 2,832 39.70 112,417.73
78 M37 Sprockets 21 5200.74 109,215.63
79 E07 Transformers&Spares 28 3457.43 96,807.99
80 CIS Measurg&calibrat eqp 15 6156.51 92,347.58
81 CIF Swithces 95 832.23 79,062.29
82 G02 General Miscellan. 9,383 8.38 78,656.25
83 M35 Sprayers 9 8700.00 78,300.00
84 CIT Electronics 13 6002.59 78,033.67
85 CIN Cables 1,114 62.91 70,083.35
86 P06 Packing material 1,550 42.00 65,100.00
87 CIB Inside Panel Instrum 264 234.46 61,898.46
88 CIR Communication Eqpt 41 1351.77 55,422.64
89 M11 Gases 855 60.43 51,639.91
90 M02 Ball Mill&Crusher Sp 89 490.09 43,618.14
91 G03 Office & Admin items 707 61.62 43,588.33
92 E01 Alternators & Spares 10 2855.00 28,550.00
93 MI02 Tubing & hoses 179 151.56 27,129.75
94 I04 Gauges & Sight glass 108 182.20 19,678.10
95 G08 Staionery/Periph-IT 53 307.81 16,314.00
96 M46 Automobile-Light Sp 28 445.65 12,478.29
97 CID Feeder Spares 1 8464.00 8,464.00
98 I08 Transmttrs,Controllr 1 5753.50 5,753.50
99 E05 Meters – Elec 10 409.80 4,098.00
100 P08 Raw material 0 0.00 0
101 MEIC01 Kiln & Furnaces 0 0.00 0
102 M48 Scrubber&Accessories 0 0.00 0
103 M29 Plastics 0 0.00 0
104 M26 Pans 0 0.00 0
105 M01 Agitators&Mixing Eqp 0 0.00 0
106 I09 Weighing Eqp,spares 0 0.00 0
107 I03 DCS Spares & Cards 0 0.00 0
108 I02 Control Panels 0 0.00 0
109 G06 Welfare items 0 0.00 0
Table-5(a):
X 1298.26 236073
Y 362.72 54131
Z 190.64 273980
Graph-5:
XYZ analysis for year 2015-16
value of items in lakhs
Z; 190.64; 10%
X Y
Y; 362.72; 20%
X; 1298.26;
70%
INTERPRETATION:
During the year of the study 2015-16, X value items have considerably increased to 1,298
Lakhs where as Y & Z category items have come down to 362 Lakhs & 190 Lakhs
respectively
VED ANALYSIS:
Stock items for the year 2013-14:
Table-1:
Stock UO Stoc
No. Description M k Rate Value
400699
3 BEARING SHELL GA1508S SET 1 26616.6 26,616.60
400699 43373.4
4 BEARING SHELL DIS MODEL HDA 100/5GA1508S SET 1 4 43,373.44
400699 11758.9
6 SHAFT SLEEVE PROTECTION SUC FOR GA1508S NO 1 2 11,758.92
400699 11758.9
7 SHAFT SLEEVE PROTECTION DISCHARGEGA1508S NO 1 2 11,758.92
400702
9 SHAFT WITH KEY 210 GA1521C KSB PUMP NO 1 63076.2 63,076.20
400707 151050.
8 CASING CD4MCU KISHOR PUMP GA652 NO 1 9 1,51,050.91
400713 93316.0
7 IMPELLER CVC5188-7 GA501A&B NO 2 4 1,86,632.08
400714 71748.8
1 ELBOW DISCHARGE 8J 84" CVC1891 GA501A&B NO 1 6 71,748.86
400714
4 SHAFT A20 CVC2589 GA501A NO 1 421838 4,21,838.00
400717 102444.
5 ADAPTER VOLUTE BEARING GA501C NO 2 2 2,04,888.40
400718 786189. 15,72,379.5
0 IMPELLER ITEM 16 J 87" GA501C NO 2 8 5
400731
2 ELEMENT AIR CLEANER FOR DIESEL GENERATOR NO 1 1353.58 1,353.58
400738 267910.
2 ELBOW SUCTION CVD 6748 GA614N NO 2 9 5,35,821.89
400738 19789.9
7 CONE IDLE END VACCUM PUMP KVM 600 GB627 NO 1 7 19,789.97
400738 19789.9
8 CONE DRIVE END VACCUM PUMP KVM 600 GB627 NO 1 7 19,789.97
400740 353132.
3 IMPELLER KYNAR WILFLEY PUMP FOR GA670 NO 2 5 7,06,264.95
400771
6 STEEL BELLOW PN. NS 150 DG 1,2,3 NO 2 31717.5 63,435.00
400779
1 FO PIPE P/N 350016 DG 123 NO 5 8971 44,855.00
400785
1 INJECTION PUMP TAPPET PN 165133 DG 123 NO 2 65360.4 1,30,720.80
400798
6 GASKET PN 0007 1944 750 WESTFALIA NO 8 43.63 349.04
400799
0 GASKET PN 0007 2334 750 WESTFALIA NO 8 290.7 2,325.60
400800
1 GASKET PN0007 2211 750 WESTFALIA NO 6 905.83 5,434.98
400800
3 GASKET PN0007 5316 740 WESTFALIA NO 3 251.74 755.22
400800
4 GASKET HOLDER PN0018 4844 010 WESTFALIA NO 4 343.62 1,374.48
400800
5 GASKET PN0018 4844 750 WESTFALIA NO 4 475.51 1,902.04
400800
6 WEAR LINER PN2178 6492 000 WESTFALIA NO 1 37606.3 37,606.30
400801 49939.6
2 WORM WHEEL SHAFT PN2178 3400 000 WESTFAL NO 1 6 49,939.66
400801 BOTTOM BRG THREAD PIECE P/N 0010 6202 00 NO 1 17230.1 17,230.12
5 2
400830 1941.19
7 BAFFLE OIL EXHAUST CVB4361-1 GA1508 PAA 3.5 4 6,794.18
400830 12066.6
8 BEARING EXHAUST END CVD1707 GA1508 NO 2 6 24,133.32
400830 23371.9
9 BEARING STEAM END CVD1708-2 GA1508 NO 2 5 46,743.89
400897 3013.56
0 INJECTOR SL 1 REPLACEMENT REF 29 PA606 NO 4 3 12,054.25
400897
7 PLUNGER FOR INJECTOR FOR PA606 NO 1 7101.38 7,101.38
400897 11890.5
8 KIT REPAIR PUMP FOR PA606 SET 1 9 11,890.59
400918 121938.
1 BEVEL GEAR & PINION SET GD602A CVD4849 SET 3 9 3,65,816.70
400920 71462.6
8 GEAR CVD-5048 FOR GD 602 G NO 1 8 71,462.68
400920 54836.7
9 PINION CVD-5048 FOR GD 602 G NO 1 1 54,836.71
400946 510570.
7 SHAFT PINION DRYER GEAR BOX FF 701&702 NO 1 2 5,10,570.18
400946 443872.
8 SHAFT PINION FINAL DRYER GEAR BOX FF 701 NO 1 4 4,43,872.38
400946 513840.
9 WHEEL 1 REDUCTION DRYER GEAR BOX FF 701 NO 1 8 5,13,840.81
400947 145161.
0 WHEEL I REDUCTION FOR FF 701&702 NO 1 1 1,45,161.12
400947
1 WHEEL FINAL REDUCTION FOR FF 701&702 NO 1 337288 3,37,287.97
400955
9 SPROCKET DRIVEN CVC1665-2 DC702/3 NO 1 34320 34,320.00
401016 25052.2
0 KIT CLUTCH FREE WHEEL P/N6838481 NO 2 5 50,104.50
401064
9 CYLINDER P/N UT/SK0261 DIESEL LOCO NO 1 10433.9 10,433.90
401066
3 RING COMPRESSION PLAIN PEP 0992 DH LOCO NO 10 332.8 3,328.00
401067
4 VALVE RELAY B2 PES 0104 DH LOCO NO 1 5595.2 5,595.20
401068 53916.4
0 CYLINDER HEAD ASSY AR 96862 CUMMINS NO 3 9 1,61,749.48
401068
1 HEAD GASKET KIT 3880383 FOR OEPL LOCO NO 1 11521 11,521.00
401084
4 CONTACTOR 3TF30,9A, 230V COIL NO 3 695.4 2,086.20
401094
4 BOX BARRIER NO 1 7457.1 7,457.10
401124
6 MOVABLE ARCING CONTACT NO 2 3873.55 7,747.10
401171
3 BUSHING FRONT 0962C0733 C0001 NO 1 1407 1,407.00
401171
4 BUSHING REAR 09620C733 C002 NO 1 1899.45 1,899.45
401171
5 BUSHING LT FOR 750KVA TRANFORMER NO 1 9500 9,500.00
401171
7 RELAY OVERLOAD CIR124 C4FOR STARTERS NO 2 2964.12 5,928.24
401174
1 COIL MAGNETIC FOR PN&PN1 240V NO 2 163.5 327
401183 117955.
7 MAGNETIC FLOW METER 1" NO 1 5 1,17,955.51
401185 113488.
6 MAGNETIC FLOW METER 4" NO 1 5 1,13,488.51
401186 126813.
1 MAGNETIC FLOW METER 3" NO 1 5 1,26,813.54
401290 197292.
1 CHAMBER BOTTOM LIQUOR CVD 6995-0 NO 1 5 1,97,292.48
401347 17432.7
7 VALVE GATE CS 4" X 300# RF NO 1 6 17,432.76
401360 67591.3
3 VALVE SAFETY RELIEF AMMONIA UNLOADING LI NO 1 5 67,591.35
401436
8 BOLT EN8 1/2" DIA 2" LONG NF FT NO 88 2.9 255.2
401600
6 INSERT THREADED TG NO 1 9858.56 9,858.56
401603
0 BRUSHES FOR CHARGE 845000 NO 6 2853.4 17,120.40
401617 59238.2
9 WORM WHEEL P.NO.526700-80 TG NO 1 1 59,238.21
401680 297456.
5 THRUST PAD SET GB501S BLOWER SET 2 5 5,94,912.91
401680 BEARING JOURNAL ASSY GB501S BLOWER NDE NO 1 1304663 13,04,662.9
9 6
401681 10,82,826.2
0 BEARING JOURNAL ASSY GB501S BLOWER DE NO 1 1082826 1
401718
3 RELAY P/NO IC2820A102F NO 4 13444.4 53,777.60
401720 146201.
1 RECODER YOKOGAWA 180 MM NO 1 7 1,46,201.70
404215 319009.
2 THRUST PAD SET FOR GB501S BLOWER EA 2 5 6,38,019.06
404215 130988.
6 CASING CD4MCU CVB7072 FOR GA614N EA 1 2 1,30,988.16
404292 55853.8
5 PRESSURE SEAL 10"PN.XS 937 AMMO.UNLG ARM NO 1 2 55,853.82
404292 63692.9
6 PRESSURE SEAL 12"PN.XS 938 AMMO.UNLG ARM NO 1 5 63,692.95
406775 263108.
0 GEAR BOX HELICAL SZ SCH 180F 25:1 JD1408 NO 1 2 2,63,108.21
408094
1 OILSEAL CR/SEALJET200X230X15MM PA606 LS NO 10 980.579 9,805.79
408122 96435.8
1 SEAL HOUSING NO3 TG DEBRIS FILTER FD507 NO 1 2 96,435.82
408246
0 V BELT SPC 4250 SET OF 4 BELTS NO 12 1199.52 14,394.24
408526
1 WHEEL CYLINDER ASSEMBLY PN 8390578 TIL NO 5 19737 98,685.00
408581
6 SEAL KIT ROTARY COLUMN 8341778 TIL PD105 NO 1 49526.1 49,526.10
408748 69337.4
9 VALVE SOLENOID LOADING/UNLOADING - AAST NO 1 5 69,337.45
408915 55713.6
2 PINION & GEAR FMG GEAR BOX SDN320 FF801C NO 1 4 55,713.64
408918 227214.
9 COUPLING FLUID SDFC580 PE580 FF701 NO 1 2 2,27,214.18
409090 353812.
0 MASS FLOW METER LIQ.AMMONIA 1.5"DX300# NO 2 5 7,07,625.00
409129 139424.
3 END POINT SWITCH STROMAG FOR BMH S/UL NO 1 2 1,39,424.20
409140
6 SOFT STARTER132/160 P/N.ATS48C32Q BMH/SU NO 1 94400 94,400.00
409144 21955.5
2 SLEWING PRESSURE REDUCING VALVE BMH S/UL NO 1 5 21,955.55
409144 321222.
3 PROPORATIONATE VALVE BMH S/UL NO 1 8 3,21,222.80
409144 98509.2
5 HOIST CAM SWITCH UP,DOWN DGS-3 OF BMH/SU NO 1 5 98,509.25
409144 130526.
9 ELECTRIC VALVE FOR INLET DEVICE BMH/SU NO 1 1 1,30,526.11
409145
0 CABLE REELING DRUM BRUSHES FOR BMH/SU NO 1 41585.9 41,585.90
409145
1 CABLE REELING DRUM SLIP RING FOR BMH/SU NO 1 29065.4 29,065.40
409145 16187.1
3 MC3000 RUBBER COVERING JOY STICK BMH/SU NO 2 5 32,374.30
409145
4 MC3000 RUBBER COVERING TOGGLE OF BMH/SU NO 5 1743.93 8,719.65
412591 21,52,123.4
0 MOTOR 700 KW NO 1 2152123 5
412626 517362.
5 CATHODE ASSEMBLY SERIAL NO:86-912 NO 1 7 5,17,362.67
412626 515330.
8 CATHODE ASSEMBLY SERIAL NO:86-913 NO 1 2 5,15,330.22
412627 515330.
0 CATHODE ASSEMBLY SERIAL NO:92-189 NO 1 2 5,15,330.22
412627 22345.8
1 CATHODE ROD PART NO:591-403-1 FT 27.5 7 6,14,511.55
412627 133804.
5 CATHODE ADAPTER PART NO:591-403-3 NO 1 5 1,33,804.49
412627 251347.
6 MAIN CATHODE SHEATH PART NO:591-404-1 NO 1 1 2,51,347.06
412627 142047.
7 REFERENCE ELECTRODE PART NO:77040 NO 2 5 2,84,095.05
412629
7 EMBEDDED CONT (PLC)-(9734-0) NO 1 153364 1,53,364.02
412634 11799.3
4 BEARING SHAFT 37754-1 FOR BMH H.CONVEYOR NO 10 4 1,17,993.35
412634 6651.72
6 BEARING SHAFT 38135-1 FOR BMH V.CONVEYOR NO 12 8 79,820.73
412634
8 BEARING SHAFT #322045-A BOTTOM FOR BMH NO 1 281191 2,81,191.00
412634 74596.8
9 BEARING BUSH HALF #42798-A FOR BMH NO 2 9 1,49,193.78
412636 BEARING COVER # 14797-A FOR BMH NO 30 5606.17 1,68,185.25
3 5
412636 21,42,396.0
9 3 WING ASSY FRO FEEDER VST-490 FOR BMH NO 1 2142396 0
412824 184160.
8 MOTOR 90KW NO 1 7 1,84,160.69
412824 268118.
9 MOTOR 132KW NO 1 6 2,68,118.58
413371
7 FAN COOLING TOWER ASSY GB905 NO 1 67308 67,308.00
413371 157458.
9 COUPLING FOR GB901 EUROFLEX NO 1 5 1,57,458.50
413376
1 TRUNION FOR DRYER FF702 NO 2 183000 3,66,000.00
413376
2 TRUNION SHAFT FOR DRYER FF702 NO 2 89000 1,78,000.00
413376
3 TRUNION FOR GRANULATOR DC702 NO 1 211000 2,11,000.00
413376
6 ROTOR SG IRON VACUUM PUMP KVM600 GB627 NO 1 172763 1,72,763.00
414480 155.467
4 SERVO TORQUE 10 FOR OEPL LOCO L 210 3 32,648.13
415205
4 HORIZ.SCREW 324301-A(3RD FROM GB) BMH NO 1 574306 5,74,306.00
416350
0 BELT RETURN ROLLER DIA 418MM NO 1 275035 2,75,034.98
416399 329884.
1 INLET FEEDER CHARGE HYDRULIC PUMP BMH NO 1 7 3,29,884.65
416559
5 ANALOG AMC 80 CARD NO 1 61878.3 61,878.30
416684
6 MCCB 3P220A WITH STR 22ME FOR BMH UNLOAD NO 1 17533.8 17,533.80
416684 186189.
7 ACB 3P,1600A,WITH UV&SHUNT FOR BMH U/L NO 1 4 1,86,189.37
416684 38886.4
8 MCCB 3P 800A FOR BMH UNLOADER NO 1 8 38,886.48
416684 23877.1
9 MCCB 3P400A WITH STR 43ME FOR BMH UNLOAD NO 1 8 23,877.18
416693
0 MCCB 3P50A WITH STR 22ME FOR BMH UNLOAD NO 1 8904.6 8,904.60
416693
1 INDUCTIVE PROXIMITY SWITCH FOR BMH U/L NO 1 3982.28 3,982.28
416693
2 SPEED GUARD FOR BMH UNLOADER NO 1 8318.92 8,318.92
416888
5 COOLER AND DEDUST FAN ROTOR FOR GB803 NO 1 165450 1,65,450.00
416919 175180.
4 PILOT VALVE FOR AMMONIA SERVICE NO 1 3 1,75,180.28
416942 243387.
8 STATIC EXITATION SYSTEM TG 69203PY2AA NO 3 5 7,30,162.47
416942 19126.0
9 MDL CE69111070 TG STATIC EXITATION SYST. NO 1 2 19,126.02
416943 27001.4
0 MDL CE69138840 TG STATIC EXITATION SYST. NO 1 4 27,001.44
416943 25876.3
1 MDL CE69138930 TG STATIC EXITATION SYST. NO 1 8 25,876.38
416943
2 MDL CE69143350 TG STATIC EXITATION SYST. NO 1 22501.2 22,501.20
416943 25876.3
4 MDL69203DU1AA STATIC EXITATION SYSTEM NO 1 8 25,876.38
416943 24751.3
5 MDL 69203GB1AA TG STATIC EXITATION SYST. NO 1 2 24,751.32
416943
6 MDL 692031A1AA TG STATIC EXITATION SYST. NO 1 39377.1 39,377.10
416943 94207.1
7 STATIC EXITATION SYSTEM TG 692301334A IO NO 1 2 94,207.12
416943 56730.5
8 STATIC EXITATION SYSTEM TG 692301351A IO NO 1 6 56,730.56
416943 29814.0
9 MDL 69203NA1AA TG STATIC EXITATION SYST. NO 1 9 29,814.09
416944 29251.5
0 MDL 69203NB1AA TG STATIC EXITATION SYST. NO 1 6 29,251.56
416944 15,02,385.7
1 GEODE PLASTIC DPU4F FOR TG STATIC EXITAT NO 1 1502386 8
416944 211106.
2 STATIC EXITATION SYSTEM TG 692301330B NO 1 5 2,11,106.46
416944
4 BRIDGE DIODE TG STATIC EXCITATION SYTEM NO 1 9283.18 9,283.18
417274 109789.
3 CLOTH SENSOR SUB ASSEMBLY FOR HBF NO 1 7 1,09,789.70
417291
0 VALVE BUTTERFLY CS 1525MM DIA NO 1 195849 1,95,849.00
417323 PART NO 693447-1 FOR GB501S TURBINE NO 1 7150.2 7,150.20
4
417323
5 PART NO 693448-1 FOR GB501S TURBINE NO 1 13530.3 13,530.30
417323
6 PART NO 645953-1 FOR GB501S TURBINE NO 1 4574.7 4,574.70
417323
8 PART NO 696575-1 FOR GB501S TURBINE NO 1 10113.3 10,113.30
417323
9 PART NO 647629-1 FOR GB501S TURBINE NO 1 5431.5 5,431.50
417434 79707.9
3 ELEMENT ASSY GB901 EUROFLEX COUPLING SET 1 3 79,707.93
417556
7 SHAFT PROPELLER REAR 8842111 FOR TIL CRA NO 1 59396 59,396.00
417556
8 RETAINER BEARING 235091 FOR TIL CRANE NO 1 10197 10,197.00
417558
2 FORK SHIFT 231821 FOR TIL CRANE NO 1 9121 9,121.00
417689
6 SEAT SPRING SGP0054 FOR VENTRA LOCO NO 2 3320.03 6,640.06
417699
9 SEAT SPRING FOR OEPL LOCO NO 1 8121.55 8,121.55
417758 107802.
2 BEARING 22248 CCW/33 SKF NO 1 5 1,07,802.46
417805 414640.
6 COUPLING FOR GB501S EUROFLEX SET 1 7 4,14,640.70
417805 237920.
8 ELEMENT ASSY GB501S EUROFLEX COUPLING SET 1 9 2,37,920.87
418091 82858.9
9 JOY STICK ANALOG X/Y FOR BMH U/L P2 CABL NO 1 2 82,858.92
418107 433485.
5 GEAR WHEEL 4-58428 BMH UNLOADER PA1302 NO 1 6 4,33,485.55
418107
8 RING DISTANCE 4-50098 BMH UNLOADERPA1302 NO 1 8326.25 8,326.25
418181 123953.
8 FAN ASSEMBLY DWG FD5602 FOR GB511 COOLIN SET 1 5 1,23,953.49
418203 137430.
9 PINION HIGH SPEED FLENDER SDN500 FF802 NO 1 6 1,37,430.60
418301 325657.
1 FEED DAM ROLLER 445 MM DIA FOR HBF NO 1 3 3,25,657.28
418377 607998.
6 PINION HS WITH SHAFT & BEARINGS FLENDER SET 1 9 6,07,998.87
418511
6 VARIABLE FREQUENCY DRIVE 132KW 296A VFD NO 1 373065 3,73,065.00
418536
0 MAGNETIC FLOW METER 8" NO 1 177412 1,77,411.95
418536 247551.
1 MAGNETIC FLOW METER 10" NO 1 6 2,47,551.55
418609 128474.
2 THERMO COUPLE INPUT MODULE (15 CH ) NO 1 7 1,28,474.67
418628 386111.
9 INDUSTRIAL PC FOR STATIC EXCITATION SYS NO 1 7 3,86,111.66
418631 70598.0
0 CUBICALE FAN FOR STATIC EXCITATION SYS NO 1 4 70,598.04
418631 3094.39
1 RELAY 24VDC FOR STATIC EXCITATION SYSTEM NO 2 5 6,188.79
418631 24869.7
2 SMPS FOR STATIC EXCITATION SYSTEM NO 1 6 24,869.76
418631 52719.3
3 TRANCEDUCER FOR STATIC EXCITATION SYS NO 1 1 52,719.31
418631 43779.9
4 TRANCEDUCER STATIC EXCITATION SYSTEM NO 1 5 43,779.95
418631 50197.9
5 DC VOLT FOR STATIC EXCITATION SYSTEM NO 1 5 50,197.95
418631
6 TRANCEDUCER FOR STATIC EXCITATION SYSTEM NO 1 54094.6 54,094.60
418631 53636.1
7 TRANCEDUCER FOR STATIC EXCITATION SYSTEM NO 1 7 53,636.17
418631 53636.1
8 TRANSEDUCER FOR STATIC EXCITATION SYSTEM NO 1 7 53,636.17
418631 52948.5
9 TRANCEDUCER FOR STATIC EXCITATION SYSTEM NO 1 3 52,948.53
418632 49510.3
0 TRANCEDUCER FOR STATIC EXCITATION SYSTEM NO 1 1 49,510.31
418632 52948.5
1 TRANCEDUCER FOR STATIC EXCITATION SYSTEM NO 1 3 52,948.53
418632
2 AIR FLOW FOR STATIC EXCITATION SYSTEM NO 1 49281.1 49,281.10
418632
3 RELAY SA660V FOR STATIC EXCITATION SYS NO 2 4125.86 8,251.72
418632
4 RELAY 660V FOR STATIC EXCITATION SYSTEM NO 2 4469.68 8,939.36
418674 COUPLING TRANS SB-0822 FOR OEPL LOCO NO 1 127764. 1,27,764.70
2 7
418800
7 FILTER H STATIC INLINE BOBCAT 6661022 NO 4 2244 8,976.00
418800
8 FILTER HYDRAULIC 6661248 BOBCAT LOADER NO 3 2624 7,872.00
418800
9 FILTER FUEL 6667352 FOR BOBCAT LOADER NO 7 864 6,048.00
418801
0 FILTER ENGINE OIL 6675517 BOBCAT LOADER NO 6 828 4,968.00
418866 14,85,554.7
0 BOX FEEDING HST-700910204-A BMH SHIP UNL NO 1 1485555 5
418866 21,52,151.7
1 OUT LET HST-700910182-D BMH SHIP UNLOADE NO 1 2152152 3
418899 170804.
4 RADIO MODULE (MC-PLL-440-C) FOR BMH S/UL NO 1 7 1,70,804.66
418917 24796.1
3 LOADCELL S TYPE 100 KG INTERFACE MAKE NO 1 5 24,796.15
418962
4 GEAR CHANGE ASSEMBLY 8389187 FOR TIL NO 1 33206.1 33,206.10
418977
9 BEARING HOUSING 900768A FOR BMH NO 3 54514 1,63,542.00
419015 508053.
7 MASS FLOW METER 2"X300# FOR LIQ.AMMONIA NO 1 4 5,08,053.36
419018
0 SHRINK DISC COUPLING FOR FD 680 NO 1 173900 1,73,900.00
419088 32816.0
5 PINION INPUT FOR NORD GEAR BOX BMH NO 2 5 65,632.10
419097 63747.6
2 SENSOR MEASURING VIBRATION FOR AMMONIA NO 1 6 63,747.66
419167
8 AXLE UJ KIT 8626388CB FOR TIL640 CRANE NO 2 39326.1 78,652.20
419167
9 CAP SCREW 8390027 FOR TIL640 CRANE NO 7 402.9 2,820.30
419170
1 BUSHING AXLE 8768114 FOR TIL640 CRANE NO 2 3320.1 6,640.20
419170 882.808
2 OIL SEAL AXLE 8768177 FOR TIL640 CRANE NO 6 3 5,296.85
419170
3 PROPELLER SHAFT UJ KIT 8730910 TIL CRANE NO 1 21855.8 21,855.80
419170
4 PROPELLER SHAFT UJ KIT 8767181 TIL CRANE NO 1 21855.8 21,855.80
419195
3 W-TYPE INPUT SK9282AFB BMH H. GEARBOX NO 1 215564 2,15,563.95
419195
4 BEARING NUP 317E SKF FOR BMH HORIZANTAL NO 1 33095.2 33,095.20
419195 442.170
5 TUBE SEAMLESS 38MM OD FOR BMH HYDRAULICS M 59.5 1 26,309.12
419227 1353.69
9 RING BACK UP PTFE 275X285X 1.7 MM BMH NO 4 5 5,414.78
419236 166180.
4 VARIABLE FREQUENCY DRIVE 415V AC VFD BMH NO 1 4 1,66,180.44
419292 117909.
6 GEAR BOX 25:1 GREAVES MAKE FOR GD714 NO 1 1 1,17,909.10
419293 348105.
2 REDUCER E MIST SEPERATOR CVB8528 NO 1 6 3,48,105.60
419307 162382.
8 VALVE BALL 10"X12" STEAM JACKETED NO 1 5 1,62,382.54
419310
4 AXLE CAP 8390049 FOR TIL640 CRANE NO 1 69926.1 69,926.10
419362
3 LIFT FEED PUMP FOR TIL640 CRANE MICO NO 1 2041 2,041.00
419622
2 ENG.OIL SAFETY SWITCH FOR OEPL LOCO NO 6 950 5,700.00
419639
1 FLYWHEEL RING 4851 FOR VENTRA LOCO PD110 NO 1 3553 3,553.00
419661
3 HYDRAULIC COOLING FAN MOTOR ASSY TIL640 NO 1 3773 3,773.00
419680 131864.
8 MAGNETIC FLOW METER 2" X 300 # NO 1 4 1,31,864.42
419746
4 SELF MOTOR FH001100 FOR TIL620 CRANE NO 1 23225.4 23,225.40
420064 772624.
7 GEAR BOX HORIZANTAL 1:8.64 FOR BMH NORD NO 1 4 7,72,624.44
420064 227950.
8 GEAR OUTPUT 201 FOR BMH NORD H. GEAR BOX NO 1 2 2,27,950.21
420064 97093.8
9 PINION OUTPUT 202 FOR BMH NORD H. GEAR NO 1 7 97,093.87
420066 51977.1
0 GEAR INPUT 205 FOR BMH NORD H. GEAR BOX NO 1 2 51,977.12
420066 221759.
3 GEAR BOX HELICAL SZ SCH 160F 25:1 JD1456 NO 1 5 2,21,759.50
420122 HARNESS LOWER CHASSIS 8389175 TIL640 NO 1 49526.1 49,526.10
5
420244
4 REGULATOR 1900071012 ATLAS COPCO FD750 NO 1 79611.1 79,611.10
420290 149.565
0 FILTER FOR BAG OPEN SUCKER BAGGING NO 79 6 11,815.68
420474 187488.
8 VALVE BUTTERFLY CF8M FOR AAST XV25103 NO 1 2 1,87,488.21
420600 471728.
4 VALVE SAFETY SV25104/ SV25504 FOR AAST NO 1 2 4,71,728.15
420600 471728.
5 VALVE SAFETY SV25105/ SV25505 FOR AAST NO 1 2 4,71,728.15
420630
8 IR RELAY FOR SAP TRANSFORMER GB901 NO 1 222615 2,22,615.00
420896 193730.
2 IGBT UNIT FOR SAP2 MAIN BLOWER VFD ABB M NO 1 5 1,93,730.49
420896 194889.
3 DSSB CARD FOR SAP2 MAIN BLOWER VFD ABB NO 1 3 1,94,889.27
Interpretation: During the years 2013-14, 2014-15 and 2015-16, Inventory will be
identified and monitored for every 15 days. Specifically items viz., Lube oils, v belts,
bearings etc.., will be monitored weekly. Keeping aside stock for one month then they would
place an order. C category items shall be orderd on annual rate contract basis.
ECONOMIC ORDER QUANTITY
Reorder Point:
Hand Gloves:
Plant delivery time = 85 days
Goods receipt (GR) processing time = 5 days
Stock = 15070 units
Min stock level =10000units
Max stock level per day = 85.7
Reorder level = minimum level + consumption during time required to get fresh deliveries
=10000+(90 *85.7)
=17713
Minimum stock level =reorder level –( maximum consumption * max reorder period)
=17713 –(85.7 * 90)
=10000
Maximum stock level =reorder level + reorder quantity – (maximum consumption * min
reorder period)
=17713+ 7713 –(85.7 * 85)
= 18141.5
Average stock level = ½ ( minimum stock level + maximum stock level)
= ½ (10000 + 18141 )
= 14070
CHAPTER-5
FINDINGS, SUGGESTIONS & CONCLUSION
FINDINGS:
Company is right now using only four inventory management techniques such as ABC
analysis, XYZ analysis, EOQ.
E.O.Q method is followed by the company only on few inventories.
All the inventories are not included in ABC & XYZ analysis.
Large size of inventories are maintained by the company under XYZ & ABC analysis in
order to reduce the ordering cost.
The carrying cost incurred by the company for maintaining the given level of inventory is
increasing every year.
The equipments& spares in general stores are also maintained as an inventory which requires
huge investment.
SUGGESTIONS:
Company should maintain an optimum level of inventory to ensure efficient and
smooth production.
The company is investing huge amount on A class and X category items on which the
company would loose opportunity cost. Therefore company shall reduce size of inventories
on these categories.
The categories under XYZ & ABC have to be continuously monitored and reviewed.
The company can maintain only minimum investment in order to maintain efficiently.
E.O.Q method of inventory management can be extended to other items of
inventory.
Company should make an effort to reduce carrying cost by maintaining expensive
inventories less in number.
The other techniques like P.V.A analysis etc. can also be used applied by the
company to manage the inventories.
The firm should estimate the cost, return and risk factor also in establishing its
inventory policies.
Instead of maintaining huge size of inventory, the company can maintain safety
stock in all the items.
The Re-order point has to be calculated by the company in – order to avoid
excess inventory and to reduce lead time.
CONCLUSION:
Inventory management is the process of managing all the raw materials and the
equipments in the company optimally without any wastage or excess usage of resources
available in the plant in order to manage those resources the company is using different
techniques like ABC analysis , economic order quantity and reorder level for optimum
utilization of resources effectively.ABC analysis is the technique used to control the items in
the plant based on their importance of their classified category .economic order quantity is
used to determine the quantity to order and reorder level is used to calculate the stock level at
which the stock order has to be placed in this way the company is using several techniques
for the smooth functioning of the machinery without any disturbance in production.
BIBLIOGRAPHY:
Financial Management : I.M.PANDEY
Financial Management : KHAN & JAIN
Operations Management : B.S.GOEL
Management Accounting : SHARMA& GUPTA
WEBSITE : www.coromandel.biz