CERTIFICATE

This is to certify that MAHERA MEHMOOD assigned the Research project on

“FINANCIAL PERFORMANCE OF PARLE-G”. He has submitted this project

report in accordance with the guide lines. To the best of my knowledge this is his

original work and not submitted elsewhere for reward of any other degree or any

diploma.

MR PRATEEK GABA (PROJECT HEAD)

ACKNOWLEDGEMENT

An individual cannot do project of this scale. I take this opportunity to express my

acknowledgement and deep sense of gratitude to the individuals for rendering

valuable assistance and gratitude to me. Firstly, I would like to express my gratitude

to our guide for providing me such an interesting topic for my school project and

their by supporting co-operating with me during my project. Their inputs have played

a vital role in success of this project. Then I express my sincere thanks to my teacher.

I take this opportunity to thank all dealers, customers who spared their precious time

to provide me with valuable inputs for project without which it would have not been

possible. I firmly believe that there is always a scope of improvement. I welcome any

suggestions for further enriching the quality of this project.

MAHERA MEHMOOD MBA IIIRD SEM

MAHIPAL

BBA IV SEM

PREFACEIn order to get the practical insight of various business problems related to the

project. It is necessary to include this project into the management course.

Keeping in view the above requirement the present “FINANCIAL

PERFORMANCE OF PARLE-GMARKET ANALYSIS OF REALTY

ADVISORS COMPANY FOR SELLING HOMES, FLATS & PLOTS” is

conducted to collect the information regarding the market performance of industry.

For conducting the study the following instrument is used.

MAHERA MEHMOOD MBA IIIRD SEM

DECLARATION

This is to certify that this Dissertation entitled “FINANCIAL PERFORMANCE

OF PARLE-GMARKET ANALYSIS OF REALTY ADVISORS COMPANY

FOR SELLING HOMES, FLATS & PLOTS” is based on my own individual and

original research work. My indebtedness to other works and publications has been

duly acknowledged at the relevant places in the Dissertation. Further, it has not been

submitted in part/full for any diploma or degree programme of any university.

MAHERA MEHMOOD MBA IIIRD SEM

CONTENTS

1.OBJECTIVE & SCOPE OF STUDY

2.RESEARCH METHODOLOGY

3.LIMITATION OF STUDY

4.HISTORICAL BACKGROUND

a.INDUSTRY PROFILE

b.COMPANY PROFILE

c.BRAND STRENGTH OF PARLE

5.ABOUT PARLE PRODUCTS PVT. LTD., PANTNAGAR

6.FUNCTION-WISE STUDY OF PLANT

7.INTRODUCTION TO INVENTORYFINANCIAL MANAGEMENT

8.DATA INTERPRETATION-

a.CHARTS / GRAPHS

9.SWOT ANALYSIS

10. CONCLUSION

11. RECOMMENDATION

12. BIBLIOGRAPHY

13. APPENDIX

a.QUESTIONNAIRE

OBJECTIVE & SCOPE OF STUDY

InventoryFinancial is as old as man. Inventories are held to

facilitate product display and services to customers, batching in

production in order to take advantage of longer production runs

and provide flexibility in production schedule.

The objectives of InventoryFinancial management are as follows: -

1. To satisfy the expected level of activities of the firm.

2. To provide a cushion in case the actual level of activity is

different than anticipation.

3. To carry a certain level of inventoryFinancial to meet a

contractual agreement.

4. To obtain a reasonable utilization of people and equipment.

5. To reduce dependencies of one another, and second, to

enable each organization schedule its operations

independently of another.

InventoryFinancial is an idle source having economic values. Optimum

inventoryFinancial means optimum investment. At the same time,

shortage must be avoided at any cost for preventing the stoppage of

production & consequent loss of goodwill & revenue.

Proper inventoryFinancial management sustains a satisfactory level of

supply of goods & services. The scope of inventoryFinancial

management, therefore, is to ensure the supply of right quantity of

materials at the right time with the right quality, at the right prices

from the right sources.

PREFACE

A long time ago, when the British ruled India a small factory was set up in the

suburbs of Mumbai city, to manufacture sweets and toffees. The year was

1929 and the market was dominated by famous international brands that were

imported freely. Despite the odds and unequal competition, this company

called PARLE PRODUCTS, survived and succeeded, by adhering to high quality

and improving from time to time.

A decade later, in 1939, PARLE PRODUCTS began manufacturing biscuits, in

addition to sweets and toffees. Having already established a reputation for

quality, the PARLE brand name grew in strength with this diversification. PARLE

GLUCOSE and PARLE MONACO were the first brands of biscuits to be

introduced, which later went on to become leading names for great taste and

quality.

HOW PARLE FOUGHT TO MAKE BISCUITS AFFORDABLE TO ALL?

Biscuits were very much a luxury food in India, when PARLE began production

in 1939. A part from GLUCOSE AND MONACO biscuits, PARLE did offer wide

variety of brands.

However, during the Second World War. All domestic biscuit production was

diverted to assist the Indian soldiers in India and the Far East. Apart from this,

the shortage of wheat in those days, made PARLE decide to concentrate on the

more popular brands, so that people could enjoy the price benefits.

Thankfully today, there’s no dearth of ingredients and the demand for more

premium brands is on the rise. That’s why; they now have a wide range of

biscuits and mouthwatering confectionaries to offer.

SUMMERY

This project “InventoryFinancial Management” has been undertaken

through the training programme at PARLE BISCUITS PVT. LTD. PANTNAGAR.

This project provides the knowledge and information about how the

inventoryFinancial is managed and also the study of the entire department

working in co-ordination with each other simply to achieve the organization’s

common goal.

Introduction part consists of the Introduction of the company viz.,

Company Profile, Quality Commitment, Vision, Mission Statement, Marketing

Strength, Customer Confidence and The Brand Strength.

Parle Biscuits Ltd. was established in 1939 at Mumbai (the mother unit).

Parle Biscuits Ltd, Pantnagar was established in 4th May, 2004. Its head office is

situated at Parle Products Pvt. Ltd., Ville Parle (east), Mumbai.

RESEARCH METHODOLOGY

Research methodology is a plan & procedure for carrying out the research.

Research methodology is the way of systematically solved the research

problem. This is the methodology adopted, while doing the project: -

TYPE OF RESEARCH DESIGN:

The research design is chosen as operational type.

STEPS IN RESEARCH:

Seven steps are followed in order to conduct the whole project.

SELECTION OF THE TOPIC

THEORY FOR THE TOPIC

SELETED RESEARCH DESIGN

DATA COLLECTED FROM THE COMPANY

ORGANIZING & ANALYZING THE DATA

DATA IS EVALUATED

CONCLUSION

SOURCRS OF DATA COLLECTION:

For collection of data both primary as well as secondary sources are

used.

Primary data:

Data collection design:

Questionnaire: A questionnaire was developed which gave me answers to all

questions (research objective) and it was approved for enquiry of workmen.

Secondary Data:

Secondary data are those that are already been collected by others. These are

available in journals, periodicals details, research publications, official records

etc.

Data presented here have been also taken from the official records of the

company.

DURATION OF THE PROJECT:

The project work has been done from 13th June, 2007 to 13th August, 2007 i.e. 4

weeks.

SAMPLE SIZE:

A sample of 25 workers was taken. They were chosen from different

departments. The past two years a record were taken and on the basis of this

record study was done.

It was found that for production batching system was adopted and process

layout was adopted.

Research Methodology

This chapter aims to understand the research methodology establishing a framework of evaluation

and revaluation of primary and secondary research. The techniques and concepts used during

primary research in order to arrive at findings; which are also dealt with and lead to a logical

deduction towards the analysis and results.

Research methodology has its special significant in solving operational & planning of industries to

gaining new knowledge relative problems.

Research design

The research design applied here was descriptive research & exploratory research design.

In case of descriptive research, we know the problem, we just have to find the solution to the

problem. Generally descriptive research design is applied after exploratory research design.

Methods of Descriptive Research Design

1. Survey

2. Interviews

3. Questionnaires

4. Other observations

DATA COLLECTION

This report is based primary and secondary data. Primary Data is collected by survey and personal

interviews.

Secondary data is collected by the study of various reports. The reports studied under secondary

data.

THE DATA SOURCE The data has been taken from two sources

Primary data source

The primary data source has been collected through questionnaire by

Personally interviewing each respondent on a number of queries structured

in a questionnaire.

Secondary data source

Secondary data was collected from following sources

Prior research reports

Websites

Books

Personal consultation

THE AREA OF WORK

The investigation is around 100km. of Bareilly city. The reason for choosing this design is to get

responses from the industries.

The report is the result of a survey which was undertaken

around 100 Km. from Bareilly city. The objectives of the project have been fulfilled by getting

response from industries about the HR policies through a personal Interview in the form of a

questionnaire.

Another objective of this project has been to getting responses of employees about

their HR policies through questionnaire.

The responses available through the questionnaires are used to evaluate the HR

policies of the industries and to know the employees opinion about their HR policies. Parle is

willingness to analysis the internal and external environment of the industries.

The project also covers an analysis the job satisfaction of the employees.

]

THE SAMPLE SIZE

The sample size consists of 10 units of the industries around the 100 km. from Bareilly. The list of following companies is mention below under:-

1. L.H. Sugar Factories Ltd.

2. DABER INDIA LTD.

3. BRITANNIA

4. Nestlé

5. CENTURY PULA & PAPER

6. Perfetti Van Melle India Pvt. Ltd.

7. B.L. Agro. (P) Ltd.

8. Marcury Delicious Food Products (P) Ltd.

9. Ashok Leyland.

10. Bajaj Auto Ltd.

10 employees of each company were randomly selected and their opinion about their human resources policies was taken up.

LIMITATION OF STUDY

1-This project is based on the method of HR policies and due to constraint of time is not

possible to work on all tools and techniques of HR policies.

2- The data collection is also limited.

3- This project report is based on my own perception and finding so it can not use for

generalizing purpose.

4-Data are extracted from various employees and secondary sources so any error in the

statement will subsequent affect the company R&S process.

Data Analysis

For Employer

Ques: - what is the sector of this industry?1) Private Sector

2) Public Sector

3) Joint Sector

Conclusion:- By this question, I come to know that 60% industries are private sector , 30% in

public sector and 10% in joint sector.

Ques: - What is scale this industry?1) Large Scale

2) Medium Scale

3) Small Scale

Conclusion:- Answering this question is industries having 70% in large scale , 20% in

medium scale and 10% in small

Ques:- What is the number of manpower in your organization?1) Staff

2) Company roll

3) Contract based

4) Casual based

Conclusion:- Answering this question 20% employees are in staff, 35% employees are in

company roll, 25% employees are in contract based and 20% employees are in casual based.

Ques: - What are the methods adopted to improve productivity?1) Productivity improvement

2) Quality improvement

3) TPM

4) Other methods

Conclusion:- Answering this question 30% industries are adopting productivity improvement

method, 30% industries are adopting quality improvement method, 30% industries are adopting

TPM method and 10% industries are adopting others improvement methods.

Ques:- Do you have medical reimbursement scheme?1) Yes

2) No

Conclusion:- Answering this question 90% industries are having medical reimbursement

scheme.

Ques:- Are you providing canteen facilities?1) Yes

2) No

Conclusion:- Answering this question 90% industries are having the canteen facilities.

Ques:- What is the age of retirement of employees of this industry? 1) 56- 58 Years

2) 58–60 Years

3) 60- 62 Years

Conclusion:- Answering this question 20% industries are having employees retirement age 56-

58 years, 50% industries are having employees retirement age 58-60 years and 30% industries are

having employees retirement age 60-62 years.

Ques:- Do you have career plan for employees?1) Yes

2) No

Conclusion:- Answering this question 90% industries are having career plan for their

employees.

Ques:- Do you have services gifts scheme?1) Yes

2) No

Conclusion:- Answering this question 80% industries are having services gifts scheme.

Ques:- Do you have your own transport facilities?1) Yes

2) No

Conclusion:- Answering the question 90% industries are having own transport facilities.

Ques:- How much amount is deducted from transport Facilities?1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Conclusion:- Answering this question 10% industries are deducted 200-400 rs , 20%

industries are having 400-600rs, 40% industries are having 600-800rs and 30% industries are

deducted more than 800 rs.

Ques:- How much conveyance allowance is given to employees? 1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Conclusion:- Answering this question 20% industries are given 200-400rs conveyance

allowance, 30% industries are given 400-600rs, 30% industries are given 600-800rs and 20%

industries are given more than 800rs.

Ques:- Do you have house rent allowance?1) Yes

2) No

Conclusion:- Answering this question 90% industries are having house rent allowance.

Ques:- How much amount is deducted from house rent allowance?1) 200-500 Rs.

2) 500-800 Rs.

3) 800-1100 Rs.

4) More than 1100 Rs.

Conclusion:- Answering this question 20% industries are deducting 200-500rs from house rent

allowance, 30% industries are deducted 500-800rs, 40% industries are deducted 800-1100rs and

10% industries are deducted more than 1100rs .

Ques:- Do you have overtime facilities?1) Yes

2) No

Conclusion:- The result of this question came as 90% industries are having overtime facilities

for their employees.

Ques:- Do you have children’s allowance?1) Yes

2) No

Conclusion:- The result of this question came as 80% industries are having children allowance

for employees.

Ques:- Are you providing Bonus?1) Yes

2) No

Conclusion:- By this question 90% industries are providing bonus for their

employees.

Ques:- What is the method of calculation of Bonus?1) As per HR policy

2) As per Govt. norms

3) Both of these

Conclusion:- By this question 70% industries are adopting both methods i.e. as per HR policy

and as per govt. norms.

‘

Ques:- Do you have incentive schemes?1) Yes

2) No

Conclusion:- Answering this question 90% industries are having incentive schemes.

Ques:- Do you have any Awards?1) incentive

2) Attendance Award

3) Star of the month

4) Quality control Award

5) All of these

Conclusion:- Answering this question 90% industries are having all of these awards relative to

the industries.

For Employees

Ques:- What is your age?1) 20 – 35 Years

2) 35- 50 Years

3) 50 – 65 Years

Conclusion:- Answering this question 40% employees are 20-35 years, 50% employees are 35-

50 years and 10% employees are 50-65 years.

Ques:- Do you agree with your training programs? 1) Yes

2) No

Conclusion:- Answering this question 90% employees are agree with your training programs.

Ques:- Are you satisfied your canteen facilities?1) Yes

2) No

Conclusion:- Answering this question 90% employees are satisfied your canteen facilities.

Ques:- Are you agree with your medical facilities?1) Yes

2) No

Conclusion:- Answering this question 90% employees are agree with your medical facilities.

Ques:- Are you satisfied your health scheme policy?1) Yes

2) No

Conclusion:- Answering this question 70% employees are satisfied with your health

facilities.

Ques:- Are you satisfied your welfare programs?1) Yes

2) No

Conclusion:- Answering this question 80% employees are satisfied with your welfare programs.

Ques:- Are you having house rent allowance?1) Yes

2) No

Conclusion:- Answering this question 80% employees are having house rent allowances.

Ques:- Are you satisfied your Grievance handing procedure?1) Yes

2) No

Conclusion:- Answering this question 90% employees are satisfying with your grievance

handing procedure.

Ques:-Are you agree your promotion policy?1) Yes

2) No

Conclusion:- Answering this question 90% employees are agree with your promotion policy,

LIMITATION OF STUDY

Management of InventoryFinancial has some benefits as well as some

limitations also. Proper inventoryFinancial management is important to

the financial health of the corporation; being out of stock forces

customers to turn to competitors or results in a loss of sales. Excessive

level of inventoryFinancial, however, results in large inventoryFinancial

carrying costs, including the cost of the capital tied up in

inventoryFinancial warehouse fees, insurance etc.

The major problem with managing inventoryFinancial is that the demand

for a corporation’s product is to a degree uncertain and the supply of raw

materials used in its product is also some what uncertain. The

corporation’s own production process is somewhat uncertain due to

possible equipment breakdowns and labour difficulties.

InventoryFinancial is difficult to manage because it carries so many lines

of responsibility. Poor inventoryFinancial management results in an

illiquid corporation.

Funding Agency UN Industrial Organization CFIB Tamilnadu Industries Department DFC Delhi HP Financial Corporation Rabobank - Corporate Solutions

Equipments and   Suppliers

Apple International Eng. Pvt Ltd. Dong Yang Food Machinery Co Ltd KDR Industries India Multipack Pvt Ltd. VDI Exports Mechtech Designers & Engineers pvt. Ltd. Sun Beam Machines Biscuit Making Machinery Automatic wafer machinery Shri Dashmesh Castings Cream Biscuit Sandwiching Machines

Manufacturers in India WIBISCO

Britannia Industries

Parle Biscuits

Kabisco biscuit industry

Maxwellinc co.

sumo biscuits

 Real Bakers Pvt Ltd.

Cremica foods

Global Companies Griffins Biscuit Company

Kambly, Switzerland

Ceylon Biscuits Ltd

Arnotts Biscuit

INDUSTRY PROFILE

About FBMI (Federation of Biscuit Manufacturers of India)

Established in 1950, from gathering of CEOs of small, medium and large Biscuit

manufacturing organizations in the country’s capital city, the Federation of

Biscuit Manufacturers of India, popularly known as FBMI has come to stay as

the premier forum of the organized segment the biscuit industry in India, by

virtue of its effective servicing and result oriented activities, with the prime

objective of protecting and promoting the interests and development of the

Biscuit industry.

During the five and a half decades of post-independent India, the biscuit

industry in the country has achieved a position of pre-eminence as the third

largest producer of Biscuits in the world, after the USA and China.

BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60%

of the total production, the balance 40% being contributed by the

unorganized bakeries. The industry consists of two large scale

manufacturers, around 50 medium scale brands and small scale units

ranging up to 2500 units in the country, as at 2000-01. The

unorganized sector is estimated to have approximately 30,000 small &

tiny bakeries across the country.

The annual turnover of the organized sector of the biscuit

manufacturers (as at 2001-02) is Rs. 4,350 crores.

In terms of volume biscuit production by the organized segment in

2001-02 is estimated at 1.30 million tonnes. The major Brands of

biscuits are - Brittania, Parle Bakeman, Priya Gold,Elite,Cremica,

Dukes, Anupam, Horlicks, Craze, Nezone, besides various

regional/State brands.

Biscuit industry which was till then reserved in the SSI Sector, was

unreserved in 1997-98, in accordance with the Govt Policy, based on

the recommendations of the Abid Hussain Committee.

Though dereservation resulted in a few MNCs, i.e. Sara Lee,

Kellogs SmithKline Beecham, Heinz etc entering the biscuit

industry in India, most of them, with the exception of SmithKline

Beecham (Horlicks Biscuits), have ceased production in the country.

Biscuit is a hygienically packaged nutritious snack food available at

very competitive prices, volumes and different tastes. According to the

NCAER Study, biscuit is predominantly consumed by people from the

lower strata of society, particularly children in both rural and urban

areas with an average monthly income of Rs. 750.00.

Biscuit can he broadly categorized into the following segments (Based

on productions of 2000-01):

Glucose 44%

Marie 13%

Cream 10%

Crackers 13%

Milk 12%

Others 8%.

As regards the consumption pattern is concerned. surveys and

estimates by industry from time to time indicate the average

consumption scenario in the four Zones have been more or less close

to each other, as below:

Northern States: 28%

Southern States: 24%

Western States: 25%

Eastern States: 23%

Biscuit manufacturing as well as other bakery products like Bread etc

are agro based industries, with the major inputs - wheat flour/atta

sugar, milk vanaspati/vegetable oil etc all being agriculture produces.

Biscuit Production

According to the production figures of members available upto the

calendar year 2003, the total production was 625000 tonnes as against

475000 tonnes in the previous year. The production of biscuit for the last

11 years is as under:

1993 - 167750            1994 - 180526

1995 - 202567            1996 - 222371

1997 - 362000        1998 - 400000

1999 - 425000            2000 - 450000

2001 - 465000            2002 - 475000

2003 - 625000

ASSOCIATE BODIES

All India Bread Manufacturers’ Association Suite No. 23, Second FloorIndra Palace, H-Block (Middle Circle) Connaught Place, New Delhi – 110 001

Shri Vinod TiwariPresident

Shri K P MohandasSecretary

Tel : 23327421, 23328784

Telefax : 23310760Email : fbmi@rediffmail.com phdcci@del2.vsnl.net.in

Confederation of Indian Food Trade & IndustryFederation HouseTansen MargNew Delhi – 110 001

Ms. Parna DasguptaDirector

Tel : 23738760-71Fax : 23320714, 23721504

Email : cifti@ficci.com

Confederation of Indian Industries23, Institutional Area Lodhi RoadNew Delhi – 110 003

Shri Dilip ChenoyDy. Secretary General

Shri D S ChadhaTechnical Advisor

Tel : 24629994-7Fax : 24626149, 24633168/246

Email : ciico@ciionline.org

website : www.ciionline.org

PHD Chamber of Commerce and IndustryPHD House, 4/2 Siri Institutional AreaAugust Kranti MargNew Delhi – 110 016

Shri Ravi WigPresident

Dr B P DhakaSecretary General

Tel : 26863801-04Fax : 26863135Email: phdcci@del2.vsnl.net.in

website : www.phdcci.org

Society of Indian Bakers’F-1, Jyoti Building 16-A/19, Ajmal Khan RoadKarol Bagh, New Delhi – 110 005

Shri Jai Prakash President

Tel : 25728771Fax : 25728771

Wheat Products Promotion SocietyAssocom-India, A-416, Ansal Chamber-I3, Bhikaji Cama PlaceNew Delhi 110 066

Shri R P JainPresident

Tel : 26185872Telefax : 26185878Email : info@wpps.org

COMPANY PROFILEABOUT THE COMPANY UNIT IN RDR:

BHOOMIPUJAN - 4 TH MAY 2004

MACHINE ERECTION ACTIVITY- 21 ST SEP. 2004

FOUNDED BY - MR. NAROTAM CHAUHAN

PRODUCT PROFILE IN PANTNAGAR PLANT:

PARLE – G BISCUITS

QHOLE COMPANY BRANDS:

PARLE – G

KRACKJACK

MONACO

MARIE CHOICE

HIDE SEEK

FUN CENTER

CHEESLINGS

JEFFS

SIXER

HUMAN RESOURCES:

PEOPLE PERSPECTIVE IS IMPORTANT

EMPLOYEE ORIENTED

CONTINUOUSLY MOTIVATE

TRAIN & DEVELOP THE WORKFORCE

EMPLOYEE PROFILE:

TOTAL NO. OF WORKERS - 900

STAFF MEMBERS - 62

Parle Products Pvt Ltd. Bombay promotes the company, which is Holding

company of the Parle Biscuits Pvt Ltd. The Directors of M/s Parle Products Pvt

Limited are:

BOARD OF DIRECTORS:

MR. ATUL K. SHAH

MR. R. S. NEVATIA

MR. BRAJESH K. TRIPATHI

MR. S. N. VERMA

AUDITORS:

DELLOIT HARSHSKIN & SONS

INTERNAL AUDITORS:

BOHARIWALA & COMPANKER

BANKERS:

UTI

HDFC

BANK OF PUNJAB

MOTHER UNIT:

PARLE PRODUCTS PVT. LTD.

NORTH LEVEL CROSSING

VILE PARLE (East)

MUMBAI

CORPORATE OFFICE:

NIRLON HOUSE

A.B. ROAD

MUMBAI

THE BISCUIT BASKET

Parle-G: The taste, energy and nourishment Parle-G offers, along with

its quality and value-for-money, contribute to making it an unchallenged

success. Apart from being India’s largest selling biscuits, Parle-G is the

winner of 8 Gold and 11 Silver awards at the Monde Selection.

Krackjack: A little sweet-A little salty…. That’s what makes Krackjack

very, very delicious! This delightful biscuit is acclaimed in India and

across the world for its controversial sweet and salty taste. Krackjack has

won 11 Gold, 3 Silver and 1 Bronze award at the “Monde Selection”.

Monaco: This original “O” shaped salted biscuit makes people exclaim

‘Oh, Monaco’. Whether plain or with toppings, Monaco is delicious. An

ideal party time delicacy one can create more scrumptious snacks by

combining Monaco with a choice of toppings. Light, crisp and fresh, it’s

no wonder that Monaco is India’s largest selling salted biscuits. Variants

include onion, methi, zeera and nimkin.

Marie Choice: “Solid Milk, Solid Taste”- this summarizes the qualities of

this delicious biscuit.

Hide & Seek: This cookie biscuit is made up of large quantity of

chocolate chips. Crunch into it or let it melt in the mouth to seek out the

real taste of chocolate.

Fun Center : Parle’s Fun Center range has the highest cream content

amongst biscuits in the category. Best of all, one gets a choice of

delicious, creamy flavors, such as, orange, elaichi (cardamom), and

chocolate cream.

Jeffs: Rectangular shaped, salted biscuit, flavored with cumin seed

(Zeera) fir that delicious, crunchy taste. The high-count of cumin seed

makes Jeffs a more scrumptious savory-an absolute must, for munching

just about anytime.

Sixer: This six-sided, salted delighted is one hard-to-resist savory.

Whatever the occasion, Sixer makes for a great salty snack. Be it a

picnic, a party, or just any snack time, Sixer gives that crunchy, munchy

delicious, salty taste that leaves one wanting for more!

EMERGING TRENDS OF THE BRAND

Since its inception in the 30’s, Parle biscuits have prided itself in offering

quality products that are affordable to the common man. The marketing mix

has evolved with the times………..

THE PRODUCT

Parle biscuits have a range of variants in its product portfolio. The popular

brands Parle- G, Krackjack, Monaco and its variants (Zeera, onion and Methi)

are available in packets of various convenient sizes. New products like hide &

seek are a foray in to the premium segment.

THE PRICING STRATEGY

The biscuit major has not bothered to raise the price of its flagship brand

“Parle-G” foe the past 6-8 years and has always tried to provide its offering at

nearly 33% discount as compared to other competitive brands.

THE PROMOTION POLICY

The consumer is the focus of all activities at Parle. Maximizing value to

consumer and forging enduring customer relationships are the core endeavors

at Parle. Parle-G “My Dream Come True contest “– was one of its biggest

promotional ventures (2.5 crore) which gave contestants a chance to fulfill

their dreams. Discounts, gift offer schemes are other popular promotional

offerings.

THE PLACE

The well-entrenched distribution system (the company covers 12-15 lakh

outlets across the country), with 39 depots at strategy points all over the

country. From the depots, the biscuit are sold to wholesalers and further to

retailers.

THE PACKAGING

Biscuit has under gone a swift transformation. From the earlier waxed-paper

packing, Parle’s BOPP offering is not only stylish and enticing but also

increases the shelf life of the biscuits.

PARLE PRODUCTS PVT. LTD. PANTNAGAR

The operations at Pantnagar unit started in 4th May, 2004 with two plants for

Parle-G. This unit has a capacity to produce 200-250 tones/day. The company

works in co-ordination with Parle Product Limited – Mumbai, Banglore,

Bhuj, Parle Biscuits Ltd. – Neemrana, Bahadurgarh, the forty CMU’s & the

thirty four depots. The factory operates in three shifts of eight hours each. At

present there is only one line operating – Parle-G.

Departments:

Purchase

Finance & Accounts

Quality Assurance

Production

Packaging

Dispatch

Stores

The organization follows a Flat Structure with less hierarical level. The

head of the department reports to the general manager through direct

communication. The working atmosphere is not stressful with enough work-

flexibility given to staff and managers.

The factory also has an Auditorium & Viewing gallery which is used during

the visit of school children and visitors.

FUNCTION-WISE STUDY OF

DEPARTMENTS AT PLANT

PURCHASE DEPARTMENT

Purchase is necessary to fulfill the need for raw material, packing material

and machinery. Raw material purchases are done through a tender system

wherein quotations are received from the suppliers and send for verification

to Bombay where maximum prices are fixed. The hence maintaining a

minimum inventoryFinancial of three days. The purchase order is placed

based on the aspects of

Price

Quality

Service (Delivery)

Orders are given in the following intervals:

Raw Materials 07 days

Packing Material 15 days

Chemicals 15 days

Engineering items 30 days

The MATERIAL INWARD NOTE (M.I.N.) is an essential document in the

purchase of goods and is necessary for payments. For replacement purposes

though there is no need for a new M.I.N.

Packing Materials, which include films for wrappers, inks, chemicals,

corrugated boxes, poly-bags, complaint slips, is ordered according to

production requirements and from reliable suppliers. Lead-time of a month is

given for packing materials.

In case of engineering items, “indents” are prepared according to the

requirements of the engineering department, stock verification takes place,

and if needed purchase orders are placed.

Following procedure is adopted for purchasing the

materials:

Purchase order given to the supplier based on the price and quality offered

by them.

Gate entry to stores

Sample testing (by quality assurance dept.)

Approval and unloading of stock to stores

M-I-N (Material Inward Note) prepared by stores

Crosschecking the bills (the order rate the quantity) with that of the purchase

order and rectification if necessary.

Payment of bills by the accounts dept. using the M-I-N.

FINANCE AND ACCOUNTS DEPARTMENT

Financial activities mainly include the following:

1. PAYMENTS & COLLECTIONS

2. BANKING TRANSACTIONS

3. CASH TRANSACTIONS

1. PAYMENTS:

Payment aspects include payments of bills of the Bahadurgarh factory as well

of the six contract-manufacturing units (CMU) under it. The payment of raw

materials is within a week except for sugar, which is an advance payment.

For engineering items it is done within a month. Payment includes the

following:

A. Payment to suppliers (of raw materials, packing, stores and

spares).

B. Payment of excise advance.

C. Payment of interim advance.

D. Processing charges.

E. Payment of depot and freight expense.

1. A) PAYMENTS TO SUPPLIERS:

Receive the M-I-N from stores.

Verification of the MIN from stores with the purchase order so as to cross check

actual rate with the supplier’s bill. MIN consists of quantity of raw material

accepted and shortage amounts.

Passing of the bills through the PURCHASE VOUCHER and updating of the

following ledgers:

Purchase book.

Supplier Ledger.

General Ledger.

Stock Ledger.

ACCOUNTING ENTRY: Purchases A/c Dr.

Cenvat A/c Dr.

To supplier A/c

PAYMENT TO SUPPLIERS OF CMU’S:

The payment to the suppliers at the CMU’s is done via Bombay, which verifies

the MIN, Bill rates according to the purchase order. The original copy is sent by

courier and also sent by email. The systems dept. downloads the data and

transfers it to the finance dept. for payment. Thereafter the supplier is firstly

credited by passing the PJV (purchase journal voucher) and then debited by

making the bank payment.

B) PAYMENT OF DEPOT AND FREIGHT EXPENSES:

The depot expenses from the Bahadurgarh factory are paid at the end of the

month. Schedules are compared with the actual payments and adjusted if

there are changes in rent etc… to be paid to the depot.

1. Depot Expenses include the following :

Godown rent.

Miscellaneous expenses.

Service charges.

Establishment expenses.

2. Computer Stationery

3. Secondary Freight

4. Incentives

5. Service TAX (10%)

2. BANKING TRANSACTIONS (FOR COLLECTIONS AND PAYMENTS):

These are a routine at Parle Biscuits Pvt. Ltd.

BANKS:

UTI

BANK OF PUNJAB

PUNJAB NATIONAL BANK

The daily balance and recent transactions at these banks are received through

fax, phone, and through the telebanking system. UTI send their bank balances

through telebanking system, whereas the balances at Bank of Punjab are

received by Phone. Daily balances are necessary to prepare the DAILY

LIQUIDITY REPORT.

This report is essential for:

FUND MONITORING

TO AVOID OVERDRAFT PROBLEMS.

Current account facilities all over India are provided by UTI, Bank of Punjab,

Corporation Bank, and standard chartered. Collections from all the other banks

get transferred to Bank of Punjab, which is the main bank of Parle

4.CASH TRANSACTIONS:

These are also essential for the following purposes:

Medical and conveyance reimbursement to staff and workers.

Small purchases of stores.

Fir travel which includes hotel payment, tel. and D.A. – the sum

varies with the category of Staff.

Day to day expenses for stationary and Freight Charges in few

cases.

There is a Mediclaim scheme provided for senior management staff, which can

be availed by them during the year. Daily cash transactions are about Rs.

20000 or so. Monthly wages and salaries, leave travel concessions are given

through the Bank of Punjab using respective accounts.

QUALITY ASSURANCE / CONTROL DEPARTMENT

In concurrence with the trademark of quality that Parle stands for the Quality

Assurance department seeks to control and maintain quality in three stages:

1.QUALITY CHECKING.

2.PROCESS CHECKING.

3.QUALITY PACKING.

1. Quality Checking:

It is necessary to use standard inputs for a quality consumable product such as

Biscuits. All the raw materials used, need to be quality tested and approved

before consumption. Therefore sample testing is done and the test report is

sent to the store mentioning the date after issuing a batch no. the following

tests are done for some of the raw materials :

Wheat Flour:

Spreading factor test.

Moisture %

WAP (water absorbency power)

Gluten %

Sedimentation value

Ghee:

Moisture %.

FFA (free fatty acids).

Peroxide value

Iodine value.

Rancidity Test.

Chemicals:

Purity Tests.

Moisture % .

A testing report register is maintained (authorization by stores and QC dept.)

which contains details of the supplier, the item and the quantity accepted.

2. Process Checking :

Issue of raw material from “stores” to the mixing section

involves:

1. Checking the request of the mixing section.

2. Issuing raw materials as per FIFO SYSTEM (First in First Out).

3. Maintenance of good storage conditions for all raw materials.

4. Checking the stock of raw materials (daily / shift basis).

Weighing of the raw materials:

Weighting of raw materials as per batch requirement (by the mixing

section).

Mixing of the raw materials & checking the quality of batch

prepared:

1. Checking the mixing period.

2. Checking the presence of all raw materials as per formula.

3. Fermentation time and room temp.

Weighing of raw biscuits after molding / cutting :

This is necessary for controlling the final weight of biscuits as per

requirement.

Testing of biscuits after Baking for :

1. Weight, Taste & Colour.

2. Stack weight/length and width.

3. Quality packing:

This section is automated and the following quality measures are undertaken

during packaging.

1. Aesthetic value of the packet (checking the printing shades of

wrapper).

2. Positioning of the packet on the machine and proper sealing of

pakets (lengthwise and crosswise).

3. Mentioning the source of manufacture, Pkd., MRP, bar code,

ingredients, weight and slug length.

4. Checking the no. of biscuits and Moisture % of biscuits (when

packed).

5. Checking presence of broken biscuits during packaging.

6. Proper polypack sealing & Coupons in poly bags with proper

batch and Pkd. no.

7. Proper taping of corrugated boxes (mentioning the batch and

Pkd. no.).

8. Proper palletizing and loading of the boxes.

PRODUCTION DEPARTMENTThe sales team in the market estimates the requirements at the wholesalers

end and reports to the head office at Mumbai. The allotted product

requirements are dispatched to all the production units, where the monthly

production schedule is prepared by the production team.

The factory has Two plant producing Parle-G. The total capacities of the

plants (tone/month) etc.

PARLE-G CONTENTS

Parle-G is the soft dough variety of biscuit. Around 75 batches of Parle-G are

produced per shift.

Standard Requirements Packaging Standards

Moisture % 2-2.5 Net wt. 100

Protein 6.5 No. of Biscuits 16

Energy 450 Kcal. No. of packets in a poly

bag 24

Ca 50 m No. of poly bags in a c-

box

6

Fe 2 m

MANUFACTURING PROCESS: It describes the products manufacturing process. Description of the manufacturing process (Include a diagrammatic scheme):

Sugar is ground

Wheat flour, ground sugar, chemicals are passed through separate sieves and discharged into a high speed mixer other ingredients i.e. vegetable fat,

skimmed milk powder, water,

Chemicals are flavors are separately discharged into the same mixer

The ingredients are mixed in the mixer for a prefixed time to form the dough

The dough is discharged to a hopper & passed through a metal detector & dough is removed if metal piece is found

The dough is transffered to a rotary moulding die to form biscuits in the desired shape. The biscuits are transferred to a wire band on which the biscuits

travel in the baking oven.

Baked biscuits are checked for proper baking and colour.

Baked biscuit are cooled on a conveyor.

Baked biscuits are again passed through a metal detector and biscuits are automatically removed if a metal piece is present

The baked biscuits are checked for dimensions and weight before wrapping.

The biscuits are wrapped on an automatic wrapping m/c.

Wrapped biscuits are first packed in poly bags and then in corrugated boxes.

PROCESS FLOW DIAGRAM FOR BISCUITS:

Receiving of Raw Materials

Insepction and testing

Storage of raw materials in different stores as per required storage conditions

Preparation of various raw materials for Batch preparation and weighing

Wheat Flour sieving Sugar grinding sieving of chemicals

Other additives

Mixing of all ingredients

Dough transfer to hopper and then to conveyor belt

Metal detector

Moulding

Baking

Final inspection

Cooling

Automatic Packing

Storage

Dispatch

INVENTORY FINANCIAL MANAGEMENT

WHAT IS INVENTORYFINANCIAL?An inventoryFinancial is a stock or store of goods. The term inventoryFinancial

includes the following categories of items:-

1. Production Inventories: - Raw Materials, parts and components which

enter the firm’s product in the production process.

2. MRO Inventories: - Maintenance, Repair and Operating supplies which

are consumed in the production process, but, which do not become part

of the product.

3. In-Process Inventories: - Semi-finished products found at various

stages in the production operation.

4. Finished Goods Inventories: - Completed products ready for

shipment,

INVENTORYFINANCIAL COSTS:

Inventories cost money. The cost factor must be considered while taking any

decision regarding inventories. InventoryFinancial cost includes ordering

cost, carrying cost, out of stock or storage cost and capacity cost. The

elements of each of the cost are the following:

1. Ordering Costs

A. Cost of placing an order with a vendor of materials:

a) Preparing a purchase order

b) Processing payments

c) Receiving and inspecting the material.

B. Ordering from the plant:

a) Machine set-up.

b) Start-up scrap generated from getting a production run

started.

2. Carrying Costs

A. Costs connected directly with materials:

a) Obsolescence.

b) Deterioration.

c) Pilferage.

B. Financial Costs:

a) Taxes.

b) Insurance.

c) Storage.

d) Interest.

3. Out-of –Stock Costs

A. Back ordering

B. Lost sales

4. Capacity Costs

A. Overtime payments when capacity is too much.

B. Lay-offs and idle time when capacity is too large.

INVENTORYFINANCIAL MANAGEMENT &

CONTROL:Because of high costs involved in inventories, their proper management and

control assume considerable importance. InventoryFinancial management

involves the “development and administration of policies, systems and

procedure, which will minimize total costs relative to inventoryFinancial

decisions and related functions such as customer service requirements,

production scheduling, purchasing and traffic.”

On the other hand, InventoryFinancial control is defined in a narrower

sense that inventoryFinancial management and pertains primarily to the

administration of established policies, systems and procedures. For Example,

the actual steps taken to maintain the stock levels or stock records refer to

inventoryFinancial control.

Benefits of InventoryFinancial Management &

Control:

The benefits of InventoryFinancial Management & Control are as follows:

InventoryFinancial control ensures an adequate supply of materials and

stores, minimizes stock of inputs and storage and avoids costly

interruptions in operations.

It keeps down investment in inventories, inventoryFinancial carrying

costs and obsolescence losses up to the minimum.

It facilitates purchasing economies through the measurement of

requirement basis of recorded experience.

It permits a better utilization of available stocks by facilitating inter-

department within a company.

It serves as a means for the location and disposition of inactive and

obsolescence stores.

Perpetual inventoryFinancial values provide a consistent and reliable

basis for preparing statements.

Process of InventoryFinancial Management &

Control:

InventoryFinancial Management & Control refers to the planning for quantities

of materials at all stages in the production cycle and evolving techniques

which ensure the availability of planned inventories. Four steps are involved in

the process:

A. Determination of optimum inventoryFinancial levels and

procedures of their records and adjustments.

B. Determination of the degree of control that is required for best

results.

C. Planning and design of the inventoryFinancial control systems and

D. Planning of the inventoryFinancial control organization.

Inventory Financial Control Techniques

InventoryFinancial control techniques are employed by the inventoryFinancial

control organizational framework of one of the basic inventoryFinancial

models, viz., fixed order quantity, re-order period system. InventoryFinancial

control techniques represent the operational framework to management and

help realize the objectives of inventoryFinancial management and control.

Several techniques of inventoryFinancial control are in use and it

depends on the policy of the firm to adopt any of the techniques. The

techniques most commonly used are the following:

Always better control (ABC) classification.

High, medium and low (HML) classification.

Vital, essential and desirable (VED) classification.

Scarce, difficult and easy to obtain (SDE).

Fast moving, slow moving and non-moving (FSN).

Economic Order Quantity (EOQ).

Two bin system.

Material Requirement Planning.

Just-in-time.

Max-Minimum System.

ABC Analysis:

One of the widely used techniques for control of inventories is the ABC

(Always Better control) analysis. The objective of ABC control is to vary the

expenses associated with the maintaining appropriate control according to

the potential savings associated with a proper control. For example, an item

having an inventoryFinancial cost of Rs. 1,00,000/- has a much greater

potential for saving expenses related to maintaining inventories on an item

with a cost of Rs. 100/-. The ABC approach is a means of categorizing

inventoryFinancial items into three classes “A”, “B” and “C”, according to

the potential amount to be controlled.

Once the inventoryFinancial is classified, we have a firm base for

deciding where we will put our control. Logically, we expect to maintain

strong controls over the “A”, items taking whatever social actions needed to

maintain availability of these items and hold stocks at the lowest visible

levels consistent with meeting demands. With the “C” group, we may

maintain somewhat higher safety stocks, order more months of supply,

expect lower levels of customer service, or all the three. Due to this

selective approach, the ABC analysis is often called the Selective

InventoryFinancial control Method (SIM).

The inspiration behind the ABC analysis has been drawn from Vilfredo

Pareto, an Italian economist and sociologist (1842-1923). Pareto’s principle

was brought to the attention of people concerned with inventoryFinancial

management by H. Ford Dickie, who applied Pareto’s law to

inventoryFinancial and developed the general concept of ABC analysis.

The following procedure is suggested for developing an ABC analysis:

1. List each item carried in inventoryFinancial by number or some other

designation.

2. Determine the annual volume of usage and rupee value of each item.

3. Multiply each item’s annual volume of usage by its rupee value.

4. Compute each item’s percentage of the total inventoryFinancial in terms

of annual usage in rupees.

5. Select the top 10 % of all items which have the highest rupee

percentages and classify them as “A” items.

6. Select the top 20 % of all items with the next highest rupee percentages

and classify them as “B” items.

7. Rest of the items is classified as “C” items.

The following Table illustrates the above procedure:

Example of ABC InventoryFinancial Analysis

InventoryFinancial Items

Annual use in Rs. % of total inventoryFinancial

usage in Rs.101

B102103104105

A106107108109

A110111

3000400002000100005000

400000700090008000

3000001000

0.3%4.0%B0.2%1.0%.05%

40.0%A0.7%0.9%0.8%

30.0%A0.1%

B112113

B114B115

50000150002000090000

5.0%B1.5%

2.0%B9.0%B

TOTAL 20 ITEMS Rs. 10,00,000 100.0%

Items “A” Items “B” Items “C”10611010% of 20 items10% of Rs. 1,00,000

102112114115

20% of 20 items20% of Rs. 1,00,000

All 9 remaining items.70% of 20 items

70% of Rs. 1,00,000

Economic Order Quantity Technique:

Economic Order Quantity (EOQ) is the technique which solves the problem

related to the size of the order. EOQ or Opt. Q (Optimum Quantity) is the order

size at which the comprising ordering costs plus carrying costs is the least.

Ordering Costs are the costs of placing a separate order multiplied by the

number of separate orders placed in the period.

Ordering Cost = (D/Q)S

Carrying Costs can be calculated based on the assumption that annual cost

of carrying a particular stock item on average, half the stock is on hand all the

time in addition to the safety or buffer stock.

Carrying Cost = (Q/2)H

Where,

Q = Order Quantity

D = Demand

S = Ordering Cost

H = Holding Cost

The following figure explains it graphically:

Graphing the two costs, viz., Holding Costs and Ordering Costs show exactly,

where the total cost curve is at its lowest point. An examination of the two

curves reveals that the carrying cost curve is linear i.e., the more the

inventoryFinancial held in any period, greater will be the cost of holding it. On

the other hand, Ordering cost curve is different. Ordering in small quantities

means more acquisition and higher ordering costs. The ordering costs

decrease with increase in the order size.

EOQ can be calculated with the help of a mathematical formula. Following

assumptions are implied in the calculation: -

1. Demand for the product is constant and uniform throughout the period.

2. Lead time (time from ordering to receipt) is constant.

3. Price per unit of product is constant.

4. InventoryFinancial holding cost is based on average inventoryFinancial.

5. Order costs are constant, and

6. All demands for the product will be satisfied.

EOQ = 2DS/H

Where,

D = Annual Demand

S = Cost of placing an order

H = Holding Cost per unit

EOQ Technique is highly useful in as much as it answers the question i.e., how

much to order and in so doing, establishes the frequency with which, orders

are applicable both to single items and to any group of stock items with simple

procurement costs. Its use causes the sum of the two costs to be lower than

the system of replenishment.

Just-in-Time Technique:

Just-in-Time (JIT) technique is highly used in recent management circles these

days. The concept is alternatively known as ZIPS (Zero InventoryFinancial

Production System), MAN (Materials As Needed), NOT (Nick Of Time) or ZIN

(Zero INventoryFinancial).

As a concept, JIT means that virtually no inventories are held at any stage of

production and that the exact number of units is brought to each successive

stages of production at the right time.

The JIT concept originated from the Motomachi plant of Toyota in Japan, where

system has been perfected and results achieved. The plant has a long line of

trucks outside with full loads of automotive parts and components for the

assembly line. As one truck comes out at one end of the plant, another gets

inside. There is no warehouse for the parts. Upholstered seats, for example,

are fed to the production line directly to the back of the truck.

Xerox, Maruti Udyog Ltd., and FSL (Food Specialities Ltd.) are the example of

such companies that are using JIT concept to catch up with the Japanese

standards of efficiency.

COMPONENTS OF THE INVENTORY FINANCIAL CONTROL SYSTEM

Adequate records are a must in any control system, but too many records can

have adjustor’s effect. No. one inventoryFinancial control system will work in

all plants. Each system must be developed to fill specific requirements.

Practically every system, however, makes use of certain forms that have

proved to be essential to good inventoryFinancial control. These include (1)

stores requisitions, (2) receiving reports, (3) balance-of-stores records, and (4)

material requisition forms.

Stores requisitions: The stores requisitions are a request from stores or

inventoryFinancial control to purchasing, giving the purchasing department

authority to buy the quantity and type of material specified. Stores requisitions

are used to obtain initial supplies and to replenish stocks.

Receiving reports: The form is usually executed in triplicate, with the original

going to purchase, one copy retained in stores and one sent to traffic or

receiving for use in expediting the order.

Balance-of-stores form: This is the most important inventoryFinancial

control record. Also called the perpetual inventoryFinancial card or a stock

record card, the balance of stores from is maintained for each

inventoryFinancial account. It usually contains information on materials

specification and description, quantity in hand, ordered, and in process and its

total value; economic order quantity; unit price; usage rate; recorder point;

processment interval and the minimum and maximum inventoryFinancial level.

If properly maintained, the balance of stores forms permits easy checking of

stock levels at all times, regardless of where the material is physically stored.

Material requisition form: This form authorises the storekeeper to issue a

specified quantity of a certain item for use in manufacture of specific order.

The material requisitions from may be initiated by production control or a

foreman. One copy of the form is forwarded to inventoryFinancial control for

entry on the balance of stores card and one copy is sent to accounting as the

basis for charges against the specified production order or the using

department. Another copy of the for usually accompanies the material as

identification and to indicate the destination of the stock.

Biscuits manufacturing requires a process layout and in this process

lay out batching system is adopted. Standard raw material in a batch

is as follows.

BATCHING SYSTEM

INGREDIENTS UNITMOISTURE

% INPUT QUANTITY

WHEAT FLOUR Kg. 12.5 100SUGAR (SYRUP) Kg. 0.1 42.13VANASPATI Kg. NIL 21.8SMP Kg. 3.5 0.9AMMONIA Kg. 100 0.35CITRIC ACID Kg. 7.5 0.008SODA Kg. 50 0.28SALT Kg. 3 1.1SMBS Kg. 30 0.02SOYA LECTHINE Kg. NIL 0.2PARLE FLAVOUR MIX Lt. 35 0.2

  TOTAL   166.988

12.5

0.1

0 3.5

100

7.5

50

3

30

0

35

100

42.1

3

21.8

0.9

0.35

0.00

8

0.28

1.1

0.02

0.2

0.2

0102030405060708090

100110

Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.

WHEATFLOUR

SUGAR(SYRUP)

VANASPATI SMP AMMONIA CITRIC ACID SODA SALT SMBS SOYALECTHINE

PARLEFLAVOUR

MIX

MOISTURE % INPUT QUANTITY

In Parle Biscuits are manufactured according to batching system. One batch

takes around two to three minutes to complete. One batch contains raw

materials & chemicals according to the quantity shown in above table.

STANDARD OF PARLE BISCUIT LIMITED, PANTNAGAR

STANDARD OF PARLE-G PER BATCHINGREDIENTS UNIT QUANTIT

YMOISTURE OUTPU

T

BATCH % (Dry Wt.)

Wheat Flour Kg. 100 12.5 87.5Sugar (Including Syrup on Dry basis)

  42.13 0.1 42.09

Vanaspati Kg. 21.8 - 21.8SMP Kg. 0.9 3.5 0.87Ammonia Bi Carbonate Kg. 0.35 100 0Citric Acid Kg. 0.008 7.5 0.01Soda Kg. 0.28 50 0.14Salt Kg. 1.1 3 1.07SMBS Kg. 0.02 30 0.01Soya Lecthine Kg. 0.15 - 0.15Parle Flavour Mix Lt. 0.2 35 0.13

100

42.1

3

21.8

0.9

0.35

0.00

8

0.28

1.1

0.02

0.15

0.2

12.5

0.1

0 3.5

100

7.5

50

3

30

0

35

87.5

42.0

9

21.8

0.87

0 0.01

0.14

1.07

0.01

0.15

0.13

0102030405060708090

100110

Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.

WheatFlour

Sugar(IncludingSyrup on

Vanaspati SMP AmmoniaBi

Carbonate

CitricAcid

Soda Salt SMBS SoyaLecthine

ParleFlavour

Mix

STANDARD OF PARLE-G PER BATCH QUANTITY BATCH STANDARD OF PARLE-G PER BATCH MOISTURE %

STANDARD OF PARLE-G PER BATCH OUTPUT (Dry Wt.)

Like raw material there is also a standard of Packing material which is shown as below: -

STANDARD FOR PACKING MATERIAL FOR ONE BOX OF

PARLE-G (144 Pkts. x 100 GM.)  

Description Units Qty/BoxesWrapper Ks. 0.166C-Boxes Nos. 1Poly Bags Nos. 6BOPP Tape Nos. 0.002Complains Coupons Nos. 6

STANDARD FOR MANUFACTURING ONE C-BOX

C- Box manufacturing is an in-house procedure in Parle Pantnagar and for this

there is a separate plant for manufacturing of C- Boxes. Standard Qty. for

producing a C-Box is as below: -

S. NO. ITEM NAME UNIT STD. PER BOX

1 Kraft Paper Kg. 0.420

2 Black Ink Kg. 0.001

3 Starch Powder Kg. 0.014

4 G.I. Stitching Wire Kg. 0.002

CONSUMPTION OF RAW MATERIAL & CHEMICALS ON ONE

MONTH PRODUCTION

Daily Consumption data of all kinds of Raw & Packing material was taken on an

average basis and average consumption of raw material & chemicals was as

below:-

CONSUMPTION OF RAM MATERIAL AT PBPL, PANTNAGAR(ONE-MONTH PRODUCTION)

SL. NO. ITEM NAME UNIT DAILY REQ. QTY.

1. Maida Kg. 3830000

2. Sugar Kg. 1615000

3. Vanaspati Kg. 837000

4. S.M.P. Kg. 34000

5. Ammonium (A.B.C.) Kg. 13000

6. Citric Acid Kg. 234

7. Soda Bi Carbonate Kg. 10660

8. Salt Kg. 42000

9. SMBS Kg. 390

10. Soya Lacethine Kg. 5200

11. PFM Lt. 7500

DAILY REQ. QTY.

3830000

1615000

837000

34000 13000 234 10660 42000 390 5200 75000

50000010000001500000200000025000003000000350000040000004500000

Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.

Maida Sugar Vanaspati S.M.P. Ammonium(A.B.C.)

Citric Acid Soda BiCarbonate

Salt SMBS SoyaLacethine

PFM

DAILY REQ. QTY.

C-BOXES RAW MATERIAL CONSUMPTION

Like raw material & chemicals ,Packing material issuance data was also taken

from stores department and one week consumption of packing material is as

below:-

DAILY REQUIRED QTY. OF PACKING MATERIAL PBPL, PANTNAGAR ON MONTHLY PRODUCTION

SL. NO. ITEM NAME UNIT DAILY REQ. QTY.

1. C. Boxes Nos. 416000

2. Wrapper Kg. 70000

3. Ploy Bags Kg. 16000

4. Coupons Nos. 2500000

5. BOPP Tape Roll 936

POWER & FUEL CONSUMPTION

Propane gas is used as fuel (to heat oven) & H.S.D electricity both are used as power at Parle

Pantnagar .Propane & H.S.D. consumption on an average basis is as below:

DAILY REQUIRED QTY. OF POWER & FUEL AT PBPL, PANTNAGAR ON MONTHLY PRODUCTION

SL. NO. ITEM NAME UNIT DAILY REQ. QTY.

1. Propane Kg. 156000

2. H.S.D. Lt. 72800

DAILY-REQUIRED QTY. FOR MANUFACTURING ONE-MONTH C-BOXES

DAILY-REQUIRED QTY. OF C. BOXES RAW MATERIAL

DAILY PRODUCTIONSL. NO. ITEM NAME UNIT DAILY REQ.

QTY.1. Stitching Wire Kg. 910

2. Kraft Paper Kg. 169000

3. Powder Gum Kg. 7000

4. Black Ink Kg. 500

MINIMUM & MAXIMUM STOCK LEVEL OF R.M.

AVERAGE & MINI-MAX LEVEL OF RAW MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION

SI.NO.

ITEM NAME UNITDAILY

AVERAGE QTY.

MINIMUM LEVEL

MAXIMUM LEVEL

1. Maida Kg. 300000 200000 400000

2. Sugar Kg. 450000 300000 500000

3. Vanaspati Kg. 90000 60000 120000

4. S.M.P. Kg. 12000 9000 15000

5. Ammonium (A.B.C.) Kg. 3500 2000 5000

6. Citric Acid Kg. 200 50 350

7. Soda Bi Carbonate Kg. 2500 2000 3000

8. Salt Kg. 8000 2000 6000

9. SMBS Kg 200 150 250

10. Soya Lacthine Kg. 2000 1000 3000

11. PFM Lt. 2000 500 3500

3000

00

4500

00

9000

0

1200

0

3500

200

2500

8000

200

2000

2000

2000

00

3000

00

6000

0

9000

2000

50 2000

2000

150

1000

500

4000

00

5000

00

1200

00

1500

0

5000

350

3000

6000

250

3000

3500

0

25000

50000

75000

100000

125000

150000

175000

200000

225000

250000

275000

300000

325000

350000

375000

400000

425000

450000

475000

500000

525000

Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg Kg. Lt.

Maida Sugar Vanaspati S.M.P. Ammonium(A.B.C.)

Citric Acid Soda BiCarbonate

Salt SMBS SoyaLacthine

PFM

DAILY AVERAGE QTY. MINIMUM LEVEL MAXIMUM LEVEL

MINIMUM & MAXIMUM STOCK LEVEL OF PACKING MATERIAL

AVERAGE & MINI-MAX LEVEL OF PACKING MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION

SI.NO.

ITEM NAME UNIT DAILYAVERAGE

QTY.

MINIMUM LEVEL

MAXIMUM LEVEL

1. C. Boxes Nos. 52000 32000 72000

2. Wrapper Kg. 6000 2000 4000

3. Poly Bags Kg. 4500 1500 3500

4. Coupons Nos. 1000000 500000 1500000

5. BOPP Tape Roll 500 100 400

MINIMUM & MAXIMUM STOCK LEVEL OF POWER & FUEL

AVERAGE & MINI-MAX LEVEL OF POWER &FUEL AT PBPL, PANTNAGAR ON DAILY PRODUCTION

SI.NO.

ITEM NAME UNIT DAILYAVERAGE

QTY.

MINIMUM LEVEL

MAXIMUM LEVEL

1. Propane Kg. 20000 10000 30000

2. H.S.D. Lt. 15000 8000 22000

MINIMUM & MAXIMUM STOCK LEVEL OF C-BOX RAW MATERIAL

AVERAGE & MINI-MAX LEVEL OF C. BOXES RAW MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION OF C. BOXES

SI.NO.

ITEM NAME UNIT DAILYAVERAGE

QTY.

MINIMUM LEVEL

MAXIMUM LEVEL

1. Stitching Wire Kg. 500 200 800

2. Kraft Paper Kg. 45000 15000 75000

3. Powder Gum Kg. 1200 600 1800

4. Black Ink Kg. 250 50 450

PRODUCTION LEVEL OF BISCUITS

AT PBPL, PANTNAGAR

(FOR THE YEAR 2005-06, 2006-07 & 2007-08)

MONTH

PRODUCTION IN MT

2007-08 2006-07 2005-06

PG CREAM

APR 4,000 - 4,200 -

MAY 4,300 - 4,300 35

JUN 5,000 - 4,800 600

JULY 5,000 - 5,500 1,500

AUG 4,800 40 5,200 2,000

SEP 5,300 2,400

OCT. 4,300 2,500

NOV 4,900 2,300

DEC 4,700 2,800

JAN 4,900 2,500

FEB 5,000 2,600

MAR 4,500 2,800

23,100 40.0 57,600 22,035

CONCLUSION

InventoryFinancial is as old as man. The primitive man’s inventoryFinancial

consisted of a few tools; as a shepherd, man had to tend his flocks and herds’;

later, he has his granaries and ware houses; today with industrialization, his

inventories cover a very wide range. As man has progressed and his needs and

activities multiplied, the range of inventoryFinancial has become larger and

more diversified.

Now a days, Inventories are held to facilitate product display and service to

customers, batching in production in order to take advantage of longer

production runs and provide flexibility in production scheduling.

Hence, to achieve the desire goal of an organization more efficiently and

effectively, organization has to make proper inventoryFinancial levels with the

help of InventoryFinancial Management and Control.

RECOMMENDATION

InventoryFinancial management and control refers to the planning for

optimum quantities of materials at all stages in the production cycle and

evolving techniques which would ensure the availability of planned

inventories

For proper determination of inventoryFinancial, the trend of sales must

be watched closely and inventories adjusted in advance of the change in

rate of production as determined by actual sales.

Proper inventoryFinancial system must provide follows up to unable the

answering of such questions: Has the vendor received the order? Has it

been shipped? Are the items correct? Are the procedures established for

re-ordering or returning undesirable merchandise?

BIBLIOGRAPHY

Education and knowledge within industry.

BOOKS: -

o Financial Management, Gupta K. Shashi, 2000, Kalyani

Publishers.

o Financial Management, Kishore M. Ravi, 2005, Taxmann Allied

Services Pvt. Ltd.

o Production and Operation Management, Aswathapa K. 2006,

Himalaya Publishers.

o Production and Operation Management, Nair N. G., 2002, Tata

Mcgraw-Hill Publishing Company Ltd..

o Research Methodology, Kothari C. R., 2003, Wishwa

Prakashan

SEARCH ENGINE: -

o www.parle-g.com

o www.google.com

o www.yahoo.com

o www. wikepedia.com

ANNEXURE

QUESTIONNAIRE

For employer

Name and address of the company:-

Name and Telephone no. and destination of the person to be contacted for clarification:-

Ques 1:- what is the sector of this industry?

1) Private Sector

2) Public Sector

3) Joint Sector

Ques 2:- What is scale of this industry?

1) Large Scale

2) Medium Scale

3) Small Scale

Ques 4:- What is average age of employees in your industry?

1) 20 – 35 Years

2) 35 – 50 Years

3) 50 – 65 Years

Ques 5:- What is an average service of employees in this industry?

1) 5 – 10 Years

2)10 – 15 Years

3) 15- 20 Years

Ques6:- What is the number of manpower in your organization?

5) Staff

6) Company roll

7) Contract based

8) Casual based

Ques10: - What are the methods adopted to improve productivity?

5) Productivity improvement

6) Quality improvement

7) TPM

8) Other methods

Ques11:- Do you have medical reimbursement scheme?

1) Yes

2) No

Ques12:- Are you providing canteen facilities?

1) Yes

2) No

Ques14:- What is the age of retirement of employees of this industry?

1) 56- 58 Years

2) 58–60 Years

3) 60- 62 Years

Ques16:- Do you have career plan for employees?

1) Yes

2) No

Ques17:- Do you have services gifts scheme?

1) Yes

2) No

Ques19:- Do you have your own transport facilities?

1) Yes

2) No

Ques20:- How much amount is deducted from transport Facilities?

1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Ques21:- How much amount is the conveyance allowance given to employees?

1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Ques22:- Do you have house rent allowance?

1) Yes

2) No

Ques23:- How much amount is deducted from house rent allowance?

1) 200-500 Rs.

2) 500-800 Rs.

3) 800-1100 Rs.

4) More than 1100 Rs.

Ques24:- What is the timing of shift for working employees?

1) 6 AM - 2 PM

2) 2 PM – 10 PM

3) 10 PM – 6 AM

4) 8 AM – 5 PM

5) All of these

Ques25:- Do you have overtime facilities?

1) Yes

2) No

Ques26:- Do you have children’s education allowance?

1) Yes

2) No

Ques27:- Are you providing Bonus?

1) Yes

2) No

Ques28:- What is the method of calculation of Bonus?

1) As per HR policy

2) As per Govt. norms

3) Both of these

Ques29:- Do you have incentive schemes?

1) Yes

2) No

Ques30:- Do you have any Awards?

1) incentive

2) Attendance Award

3) Star of the month

4) Quality control Award

5) All of these

For Employees

Ques1:- What is your age?

1) 20 – 35 Years

2) 35- 50 Years

3) 50 – 65 Years

Ques2:- Are you agree with your training programs?

1) Yes

2) No

Ques3:- Are you satisfy your canteen facilities?

1) Yes

2) No

Ques4:- Do you agree with your medical facilities?

1) Yes

2) No

Ques5:- Are you satisfied your health scheme policy?

1) Yes

2) No

Ques6:- Are you satisfied your welfare programs?

1) Yes

2) No

Ques:- Are you having house rent allowance?1) Yes

2) No

Ques:- Are you satisfied your Grievance handing procedure?1) Yes

2) No

Ques:-Are you agree your promotion policy?1) Yes

2) No