FM - Hanuman Industri (Inventory)

7/27/2019 FM - Hanuman Industri (Inventory)

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A

Project RepotOn

A study on inventory management system

At

Hanuman IndustryNear Ice Factory, Bagashra Road, Amreli-365601, Gujarat - India.

Under the Guidance of (in Company)

Mr. Rajiv L. Yadav

Under the Guidance of (College)

Ms. Arpita Vaghela

Institution

Submitted to

Gujarat Technological University - Ahmedabad

Prepared By:

Hardik A. BhaluM.B.A. Sem. II, Seat No 013891


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Company Certificate


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K. K. Parekh Institute of Management Student Amreli.

Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli.

Ph: (02792) 223509 fax: (02792) 223509E-mail: [email protected]

Web: kkpimsamreli.com

DIRECTORS RECOMMENDATION

TO,

The RegistrarGujarat Technological University

Ahmedabad.

Subject: MBA Summer Training Project Report

Respected Sir,

I am recommending the Summer Training Project entitled- Study On

Inventory Management System prepared by Hardik A. Bhalu at Hanuman

industry, Near Ice Factory, Bagashra Road, Amreli-365601, Gujarat,

India. As the partial fulfillment of the University requirement for the

award of MBA degree of Gujarat Technology University Ahmedabad.

Date: - Thanking You,

Place: - Amreli Yours Faithfully

Director


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STUDENT DECLARATION

I the undersigned student Hardik A.Bhalu of K. K. Parekh Institute of

Management Studies Amreli M.B.A. II Semester, hereby declare that, the

project on Study on Inventory Management System is my own work.

In the partial fulfillment of Master Degree of Business Administration, I had

undergone project work at Hanuman Indusry under the guidance of Ms.

Arpita Vaghela K. K. Parekh Institute of Management Studies Amreli andsubmitted to Gujarat Technological University, Ahmedabad.

This project work is my original work and has not been submitted to any

where earlier.


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PRREFACE

With the dawn of new millennium there is a great consciousness

among the individuals to be knowledgeable. Theoretical approaches cannot

suffice this requirement until they are given practical orientation.

In the emergency global economy, we have to have to build our core

competencies around powerful ideas. With the increasing complexity of

business there is an urgent need for great ideas which can be converted into

effective action. Agriculture product businesses play a very important role to

dilute these complexities and progress in the same place. Its impossible to

ignore the fact that the winds of change are blowing all over the world. Thus

this transformation demands adaptation of new technology, closer interaction

and broad prospective in order to accelerate the momentum of growth andensure success.

As a part of our curriculum, I had an opportunity to visit HANUMAN

INDUSTRIES which was indeed a great learning experience. The visit

assisted me to have a sight of haw Manufacturing concerns function. This

project report is an attempt to present a unified picture of what management is

and how it is applied to various departments of organization. This journey has

given me a great experience from meeting with the people, human behaviors,

and their versatile.

All in all, project work is a perfect medium to bridge the gap between

knowledge and work with ones full effort on the selected area to develop

ones instinct in the field of management.


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ACKNOWLDGEMENT

Inspiration, encouragement and guidance from the back bone to

success so, I would like to express our deep sense of gratitude towards some

important people who have devoted their precious time towards the

completion of our project.

I am thankful to HANUMAN INDUSTRIES. For providing training in

there esteemed organization. I am thankful to Mr. Rajiv L. Yadav Who guides

and enable me to complete the project in time.

I would like to express my sincere gratitude to Dr. A. K. Aggarwal,

who is Vice Chancellor of GUJARAT TECHNOLOGICAL UNIVERSITY, for

providing us an opportunity with professional people in real corporate world. I

am thankful to Ms. Arpita Vaghela my project guide for the training, whose

expert guidance has given my project a value.

I cant refrain my humble to my parents, friends and family members

because of whose love, keen interest and suggestion, I become confident.

I would like to thank persons who have directly or indirectly help me for

completing my project.

EXECUTIVE SUMMARY


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HANUMAN INDUSTRY is very first unit in Amreli in marketing sesame

seeds and raw-cotton.HANUMAN INDUSTRY is a Private Limited company incorporated on

1stApril,2003. Its prime emphasis has been on manufacturing Laser based

Sorting & Packing & Hulling Sesame Seeds for Export Markets.

The company is led by The Director of the concern is Mr. Manojbhai

Vasantlal Sonpal, aged 34 years. He completed his 2nd year B.Com. Even

while joining the Family Business at an early age. He is young, energetic and

has wide experience. He will have full support and co-operation from hisUncle Mr. Bharatbhai N. Sonpal, Director of the company, who is also

having the expertise in this line of activities.

They have been instrumental in sharing of major load in the progress

made by Sonpal Brothers and Thakkar & Co. till December 2000 and of

Avadh Agri. Exports, Hanuman Industries & Shiv Industries thereafter starting

the Hulling business, the Family decided to venture into manufacturing

activities of Laser based sorting & Packing Hulling Sesame Seeds which will

be sold in the international market directly or through Merchant Exporters /

Agents. The existing

Family Business of dealing in Agriculture Products will come in handy

for marketing of Laser based sorting & Packing Hulling Sesame Seeds. The

Sonpals have developed very good rapport in market and have been able to

establish their reputation in the market. With this the promoters of the

company has decided to set the Plant for manufacturing Laser based

sorting & Packing Hulling sesame seeds at an installed capacity of 7200 MT

per annum based on 2 shifts a day & 300 days of operation.

Hanuman industry gives more contribution in a GRWTH of amreli city

and GUJARAT. By doing export agree product buseness

INDEX


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1.1 Introduction


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Exports:-

Export means the transferring of any good from one country to another

country in a legal way for the purpose of trade. Export goods are provided to

the foreign consumers by the domestic producers.

The term "export" is derived from the conceptual meaning as to ship

the goods and services out of the port of a country. The seller of such goods

and services is referred to as an "exporter" who is based in the country of

export whereas the overseas based buyer is referred to as an "importer". In

International Trade, "exports" refers to selling goods and services produced in

home country to other markets.

Why Need to Export?

There are many good reasons for exporting:

The first and the primary reason for export are to earn foreign

exchange. The foreign exchange not only brings profit for the exporter but

also improves the economic condition of the country.

Secondly, companies that export their goods are believed to be more

reliable han their counterpart domestic companies assuming that exporting

company has survive the test in meeting international standards.

Thirdly, free exchange of ideas and cultural knowledge opens up

immense business and trade opportunities for a company.

Fourthly, as one starts visiting customers to sell ones goods, he has

an opportunity to start exploring for newer customers, state-of-the-art

machines and vendors in foreign lands.


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Fifthly, by exporting goods, an exporter also becomes safe from offset

lack of demand for seasonal products.

Lastly, international trade keeps an exporter more competitive and less

vulnerable to the market as the exporter may have a business boom in one

sector while simultaneously witnessing a bust in a different sector.

No doubt that in the age of globalization and liberalizations, Export has

became of the most lucrative business in India. Government of India is also

supporting exporters through various incentives and schemes to promote

Indian export for meeting the much needed requirements for importing

modern technology and adopting new technology from MNCs through Joint

ventures and collaboration.

SOME "DO'S AND DON'TS OF EXPORT PLANNING

DO ensure your key staff members are signed on to the Plan.

DO seek good advice and test your Export Plan with advisers.

DONT create a bulky document that remains static.

DO review the Export Plan regularly with your staff and advisers.

DO assign responsibility to staff for individual tasks.

DONT use unrealistic timelines. Review them regularly they often slip.

DO create scenarios for changed circumstanceslook at the what ifs for

changes in the market environment from minor to major shifts in settings. e.g.

changes of government, new import taxes.

DO develop an integrated timeline that draws together the activities that make

up the Export Plan.

DO make sure that you have the human and financial resources necessary to

execute the Export Plan. Ensure existing customers are not neglected.

1.2 History


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Indian Exports: A History:-

The history of Indian exports is very old. During ancient times India

exported spices to the other parts of the world. India was also famous for its

textiles which were a chief item for export in the 16th century. Textiles and

cotton were exported to the Arab countries from Gujarat. During the Mughal

era India exported various precious stones such as ivory, pearls, tortoise

stones etc. But during the British era, Indian exports declined as the East

India Company took control of foreign trade.

Leading Export Items of India:-

In the past ten years, Indian exports have grown at a rate of nearly

22%. Some commodities have enjoyed faster export growth than others.

Some of India's main export items are cotton, textiles, jute goods, tea, coffee,

cocoa products, rice, wheat, pickles, mango pulp, juices, jams, preservedvegetables etc. India exports its goods to some of the leading countries of the

world such as UK, Belgium, USA, China, Russia etc.

The Opportunity:-

It is very clear that Indian exports have still not achieved their true

potential and there exists immense opportunities for expanding the basket of

Indias exports. With a strategic attention on the new markets that are

evolving due to free trade, India is witnessing a boom in both manufacturing

and services.


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Problems of the Indian Export Sector:-

There are few problems which need to be solved before India makes a

mark for itself in the export sector. The Indian goods have to be of superior

quality. The packaging and branding should be such that countries are

interested to export from India. At the same time India must look for potential

market to sell their goods. The government should frame policies which gives

boost to the exports.


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NESSASITIES FOR EXPORT

Bank Account

IEC code is necessary

EXISE Registration

Customs application for container stuffing

Invoice, packing list, ARE 1 form are sent to custom

Shipping bills are made and verified by customs

Goods are handover to the ship

Mate receipt will get from captain of ship

Shipping company will give bill of lading

Commercial bill, commercial invoice, pacing list, certificate of origin is issued

to chamber of commerce

Bill of lading sent to importer

If insurance than copy of insurance bill paid

For payment company fills form of APPENDIX 22a

1.3 Players


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Artousi Enterprises, New Delhi.

Agrocel Industries, Mandvi-Kachchh, Gujarat.

Suminter India Organics, Mumbai.

Nature Bio-Foods Ltd., New Delhi.

Geo Fresh Organic, Sidhpur.

Umalaxmi Organics Pvt. Ltd, Pali, Rajasthan.

Jain Irrigation Systems Ltd., Jalgaon, Maharashtra.

Viral International Gultekdi, Pune, Maharashtra

Cot Export Pvt. Ltd., Rajkot, Gujarat. H. Bheda & Co., Rajkot, Gujarat.

Raj Foods International, Unjha, Gujarat.

Rapid Overseas, Unava, Gujarat.

Unique Organics Ltd., Sitapura Industrial Area, Rajasthan.


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.1 Introduction

Industrial training is an essential part of our study. So I have visited to

HANUMAN INDUSTRY. Moreover, theoretical knowledge to secure practical

knowledge as per given in our syllabus. Our schedule programme was fixed,

so far this purpose we engaged an industrial training dated on

HUNAMAAN INDUSTRY is very first unit in Amreli in marketing

sesame seeds and raw-cotton, However today many companies have also

been developed in this field. Today the pride of HANUMAN INDUSTRY is that

it largest in Gujarat.

It was founded by Mr. Bharatbhai Sonpal. He has good knowledge of

this field. We have enjoyed this industrial training and got practical experience

from this industry. We are very thankful to Mr. Bharatbhai Sonpal and their

industry members who gave us good support during this training. And our

special thanks to Mr. Rajiv L. Yadav Manager of HANUMAN Industry. Who

gave us whole information about this industry.


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.2 History & Development

HANUMAN INDUSTRY is a Private Limited Company. How it became,

we can see as follows:

BRIEF HISTORY OF THE ORGANISATION AND ITS PROMOTOR

HANUMAN INDUSTRY is a Private Limited company incorporated on

1stApril,2003. Its prime emphasis has been on manufacturing Laser based

Sorting & Packing & Hulling Sesame Seeds for Export Markets.

The company is led by The Director of the concern is Mr. Manojbhai

Vasantlal Sonpal, aged 34 years. He completed his 2nd year B.Com. Even

while joining the Family Business at a early age. He is young, energetic and

has wide experience.

He will have full support and co-operation from his Uncle Mr.

Bharatbhai N. Sonpal, Director of the company, who is also having the

expertise in this line of activities.

They have been instrumental in sharing of major load in the progress

made by Sonpal Brothers and Thakkar & Co. till December 2000 and of

Avadh Agri. Exports, Hanuman Industries & Shiv Industries thereafter starting

the Hulling business, the Family decided to venture into manufacturing

activities of Laser based sorting & Packing Hulling Sesame Seeds which will

be sold in the international market directly or through Merchant Exporters /

Agents.

The existing Family Business of dealing in Agriculture Products will

come in handy for marketing of Laser based sorting & Packing Hulling

Sesame Seeds. The Sonpals have developed very good rapport in marketand have been able to establish their reputation in the market.


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With this the promoters of the company has decided to set the Plant

for manufacturing Laser based sorting & Packing Hulling sesame seeds at an

installed capacity of 7200 MT per annum based on 2 shifts a day & 300 daysof operation.

The Plant and Machinery will be supplied by Bharat Engineering Co.,

Dist. Pali at Rajasthan on Turnkey Basis.

They are highly reputed Designers / Fabricators / Suppliers of

Machinery and Chemical Plants on Turnkey Basis.

Machineries required for cleaning and sorting plant will be supplied by

Bulher (India) Pvt. Ltd. - Mumbai.

They have already delivered the Plant at our Factory and the same is

under installation. Bharat Engineering Co. has also supplied the Plant and

Machinery in our Associate Concerns which is yielding satisfactory results.

The company has decided to install imported "Sortex" electronic

automatic colour sorting machine from Sortex Ltd., Pudding Mill Land, and

London, England.

The Finished Product Hulled Sesame Seeds has a potential demand in

the International Markets and will be exported to Korea, Singapore, Taiwan,

France, Australia, Russia etc.

We are pleased to inform the Bank that the Concern has Confirmed

Orders / Enquiries from its Customers from Korea, Singapore, Taiwan,

France, and Australia, Russia etc. copies of which are enclosed. There are

number of oral enquiries from all over the world. The Promoters are already

enjoying satisfactorily dealing with many Overseas Buyers in their existing

Associate Concerns.


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.3 Form of Business Organization

Since this company is Private Limited, the company is limited by

shares. The shares are not equity, because it is not a public limited company.

The company has 27 share-holders, in which two persons are promoters, as

we have seen earlier. The promoters are

Mr. Manojkumar Sonpal

Mr. Bharatkumar Sonpal

Now, we can see the below mentioned chart for the ownership of the

company, in order to this company.


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.4 Location of The Unit

HANUMAN INDUSTRY has main branch and the main factory at

Amreli, so the location of the Amreli unit for this company is very large.

Land:-

The Plant is located at the Plot number 569 Palika

Jaysinghpara, Nr. Shiv Industries, Nr. Ice Factory, Amreli.

Certified Xerox copy of Sale / Lease Deed :-

The company has intered in to lease agreement with

Manojkumar V. Sonpal, the owner of the plot of land admeasuring 8701

Sq. meters, R. S. No. 569 Palika, bagasara road near ice factory,

Amreli. This plot of Land will be offered to the Bank as Security

Collateral

Area:-

The area of the Land is 8701 square meters The Proposed Unit is

situated near Shiv Industries Bagsara Road, Near Ice Factory, Amreli.

Power:-

The Unit proposes to install 125 KVA D.G. Set (wit Furnace Oil)

Instead of GEB Power Supply. This has been decided because:-

(i) By using D.G. Set Cost per Unit would be Rs. 4/- Per unit as against

GEBs cost of Rs. 5/- per unit.

(ii) Unit will not be required to give Deposit to GEB Authority.

(iii) Unit would be able to operate the Plant without any Interruption


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Water:-

The Unit's requirement of water is 700 / 1000 Liters Per day which

will be fully available through 3 bore wells of M/s. Shiv Industries. (Sister

Concern). Unit has also built the Water Tank for their purpose.

Even in the extreme case of a bad year of rainfall, water is still

available via Tankers from the nearby Kamnath Dem (1 km) as well as

from Dhari - Khodiyar Dams within a 45 km radius which may be required

for 15-20 days at the most.

Steam:-

The firm is purchasing one Boiler for generation of Steam

Fuel Effluent Treatment Plant:-

The wood will be used for firing the Heater in the Boiler. The

process for manufacture of Hulled Sesame Seeds does not emit anyeffluents. Thus ETP Plant is not envisaged

Labour:-

Available in abundant quantity and at an economic locally from

city of Amreli and nearby villages since it is predominantly agricultural

area.

Transport:-

The Company is located at Amreli, which is we connected

throughout the country through a Fleet c Transporters. Thus, the

Company is availing these services to procure the Raw Materials and

for dispatching the Finished Product.


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Raw Material:-

The basic raw-material for manufacture of "Hulled sesame

seeds" is Natural Sesame Seeds (Tal). Natural Sesame Seeds - basic

Raw Material is available from Agricultural Market Yard of Amreli /

Rajkot / Bhavnagar etc. Or from Farmers or Market Yard in

Maharashtra / UP / Rajasthan etc. through Commission Agents.

Size of the Unit:-

The size of the unit from the point of view to Personnel Management

contains 130 workers. These 130 workers are the employees of the company.

6 supervisors are working in the factory as well.

So, the organization of the employees is as under: 130 workers, 6

supervisors, 7 assistants, 4 machine operators, 2 computer operators at the

factory.

Contribution of the Unit:-

HANUMAN INDUSTRY Gives contribution to both industry as well as

society. The company is very large. So, it provides full of employment to the

nearest villages and also to Amreli city. This is the contribution of the

company to the society. Company is dealing with, any foreign countries, so it

provides its contribution to the industries, too.


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.5 SWOT Analysis

SWOT Analysis process that I use on HANUMAN INDUSTRY Pvt. Ltd.

And Finding following conclusion

SWOT Analysis

Business Mission

Externalenvironment

[Opportunity&

threatanalysis]

Internalenvironment[Strengths &

Weaknesses]

GoalFormulation

Strategy Formulation

ProgramFormulation

Implementation


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SWOT Analysis Conclusion:-

Strengths

Good Brand Image in the Global Market.

Strong Distribution Channel.

Employee and Employer are full of knowledgeable and they

have good experience.

Weakness

Lack of research & development department.

Opportunities

They have opportunities for making new agriculture product

business.

Threats

Coming up of MNCs in the market.


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3. STUDY OF FOURFUNCTIONAL AREAS


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FUNCTIONS

This company deals with many countries or many companies from the

various countries. So, the currency as well as the financial policies of all the

nations would be different. Therefore, the Finance Department of the

company plays very vital role in the company.

The function of this department is generally, to simplify the tasks of all

the accounting and financial deeds of the company either its internal or

external. The other approach that can also be analyzed is the consideration

that finance is concerned with the cash only. So, this department keeps all the

data of the transaction done by the cash through bank or anyway. At the other

extreme, is for the decision-making. The functions of the Finance Department

avails the simplicity of the Cash Management, Capitalization, etc. These

functions contain, Executive Finance Function, Asset Management Policy of

the company, Allocation of Net Profit, Cash Flows, Financial Performance of

the company.

In this company, the Finance Department as well as the Accounting

Department work sincerely to achieve nice performance of the company.


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CAPITALISATION

The term Capitalization is derived from the word Capital.

Capitalization means the total accounting value of the capital stock, surplus,

and long term loans of any corporation.

In short, capitalization means the total amount of capital invested in the

business. In this company, HANUMAN Industry, the capitalization is Rs.30,

35, 46,250/-. This can be said in words as Rupees Thirty Core Thirty Five

Lacks Fourty Six Thousand Two Hundred Fifty Only.

ORGANISATION STRUCTURE

This department contains a special unit called Accounts Unit. The

management is done as follows:

The company has also appointed a Chartered Accountant to observe

all the financial moves of the company.


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Functions of HRD

As the HRM (Human Resources Management) is very important for the

company, the functions of the HR Department are very important.

Human Resources Department is the integrated use of: (a) training and

development, (b) organizational development; and (c) career development, to

improve individual, group and organizational effectiveness.

We will discuss all the topics of the HR Departments functions that are

mentioned below:

1. Learning & Employees welfare

2. Duration of HRD Programme & Contribution in Nature

3. Performance Improvement & Long Term Benefits

4. Multidisciplinary Approach

5. Key Elements in Coping with Problems

6. Career development

7. Organizational Development

8. Development of Team Spirit

9. Integrated use of Subsystems, etc


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About HR Management

The personnel management of the company, which is known as the

Human Resources Management nowadays for the management point of view

plays very vital role to handle the business of the company.

We can define the human resources management as per the words

given by Edwin B. Flippo in his book Principles of Personnel Management,

The personnel function is concerned with the procurement, development,

compensation, integration and maintenance of the personnel of an

organization for the purpose of contributing towards the accomplishment of

major goals or objectives of that particular organization. Therefore, human

resources management is the planning, directing as well as controlling of the

performance of the operative functions as the personnel management

contains the human resources management in it.

Actually, the personnel management is the combination of two terms

concerned to the management sector, which are the human resources

management and the organizational behavior.

Objectives of Personnel Management

The objective of the personnel department is to contribute to the

realization of the organizational goals. They can be highlighted as:

Utilization of Resources

Good Organizational Structures

Maximum benefits to Human Force

To Provide Welfare Facilities

To develop all the individual Groups

To Satisfy Individual Needs

To develop morale of the Employees.


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Promotion Policy:-

This company has the main office and the factory at Amreli only, so

they dont have the ideal transfer policy. They usually transfer the employee to

its sister concern.

The company gives the promotion to the extra ordinary employee to

the upper post. For Illustration, if the Asst. Manager is fit for all the work of the

company and have good managerial skills, he or she would get the promotion

to the Managers post.

Organization Structure

Organization of the Human Resources (Personnel) Department is

generally as follows:


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Here, generally the Chair Man-cum-Managing Director, Mr. ManojSonpal is the Head of all the departments. Also, the General Manager, Mr.

Rajiv and the Assistant Manager Mr. Mukesh Solanki are the Heads of all the

departments. The Manager (Personnel) leads the workers at the office as well

as at the factory. He also works with the dealer companies for the exports

process.

Types of workers & shifts

Workers:-

The company works with the foreign country, so the workers are

classified on the basis of their communication skill. The person who has smart

communication skills can be a tele-caller, thus, the person with good

documentary knowledge can work with the documents, like bills, etc.

Shifts:-

The company has to produce sesame seeds in very much quantity as

per the demand of the dealer companies. So, the factory of the company

works 24 hours. The workers have 3 shifts.

7am to 3pm

3pm to 11pm

11pm to 7am

The office work can be done at the office time, so the shift time for

office is:

9am to 1:30pm & 4:30pm to 9pm


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Training Management:-

The employees of the company must have good communication skills

as well as a very wide range of knowledge in Forex Market and the currencies

of all the countries and its values concerning to the US Dollar. Thats why; the

experienced persons of the company are the trainers, who give training to the

employees of the company.

Wages & Salary

Wages & Salary Administration is done in the company by the

Accountants. Salaries for the workers are given to them by cheque. They are

paid salaries Rs.4000/- to Rs.6000/-. Managers of all the departments are

paid round about Rs.10000/- to Rs.12000/-. The Asst. Manager and the

Manager are paid Rs.20000/- to Rs.25000/-. These salaries are generally

made to the permanent employees of the company. For the labors of the

company, the company pays wages to them for their particular works.

The wages are paid as follows:

For loading the full container (truck) Rs.50 per metric ton

For unloading the full container Rs.30 per metric ton

For packing the product into bags Rs.20 per metric ton, etc.


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Exports & Tele-Caller

Exports:-

The company HANUMAN Industry has main work to export all the

produced products. They exports the products in foreign countries like, North

America, South America, Western Europe, Eastern Europe, Eastern Asia,

Southeast Asia, Mid East Africa and Oceania. All the countries have their own

different rules of importing products. Thats why; company has departed a

department named Exports Department. They mainly work with all the

imports law for different countries. The manager Mr. Rajiv, himself is the

Manager (Exports), since he has very good knowledge of Forex Market.

Tele-Caller:-

The actual work of this group is generally to call all the dealers of the

company. As the company deals with the foreign, the persons in this group

must have good communication skills, good command over English language

and also quite good knowledge about the rates of currencies of both the

countries, especially their values related to the Us Dollar.


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General Evaluation

The Human Resources Department of the company, Shiv Industry is

working very hard with the discipline of the company. The employees of the

company are very particular as well as regular in their job. The company has

very intelligent and ethical managers, who are very sincere to the company.

The company thus has very good employees, so the directors of the

company established a department in the company for more work. This is The

Consultation Department. The main work of this department is to appraisal the

employee for the development of them.

This department also gives suggestions to the employees in whole

year as well as it advises and provides guidance for the employees to

promote them. They also make programmes that can increase the skills of the

employees.

Thats the way; the company has very nice and ideal struc ture of its

Human Resources Department.


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About Product

In our daily life, we buy different kind of products from the market. In

this way, we can say product is one that has the capacity to satisfy our needs

or wants. Thats why; the product is at times defined as the bundle of potential

utility. According to Dr. S.R.Davar, A product may be regarded from the

marketing point of view as the bundle of benefit that is being offered to

consumers.

In the words of Philip Kotler, A Product is a bundle of physical service

and symbolic particulars expected to yield satisfaction or benefits to the

buyer.

According to Alderson, A Product is a bundle of utilities consisting of

various product features and accompanying services.

A Product has the below mentioned characteristics:

I. Tangible Attributes

II. Intangible Attributes

III. Exchange Value

IV. Utility/Benefits

V. Differential Features

VI. Consumer Satisfaction

VII. Business Need Satisfaction

Here, in this company, the products, which are manufactured by

the company, are generally, all the types of sesame seeds and row-cottons,

as we have discussed before.


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Product Line

Product line is a group of different product items that are concerned

closely to each other. All the brands of the same product are product line.

In the above mentioned statement, the words Product Item defines a

scientific product of certain specification and may be distinguished with other

product, or brand. A particular brand of the product can be said the product

item. Thus, we can also say that its clear that a single product item having

same specifications like colour, size, utility, etc. is a product item. All the

product items in the large group are collectively known as product line.

Here, in this company, the product is only sesame seeds and row-

cotton. Thats why; the product line is also only sesame seeds and row-cotton.

Because both the products have the same demand as they both are

agricultural products.

Product Mix

One major management aspect involved in product policy is the

decision concerning Product Mix. The product mix is one of the elements in

the product policy. Since most of the manufacturers are diversifying their

products, this element of the product policy is more important nowadays in the

criteria of business production.

After all the discussions we can define the product Mix, as its the list of all

products, which are offered for sale by a company or any business unit.

Here, in this company, the products are generally the sesame seeds

and row-cotton. Thats why; the expected product mixes for this company are

these both products as we stated above, the sesame seeds and the row-

cotton, obviously.


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Types of Raw-Material

Generally, this company produces two products as we have discussed

earlier that are sesame seeds and row-cotton. Among the both the product

sesame seeds are the main product.

To make or to produce sesame seeds purely, the raw-material used is

obviously harvested sesame seeds. The harvested sesame seeds are

produced in the farm by the farmers. They take care of the sesame seeds

during the growing time of these seeds. Then at the right time or we can say

when the time comes properly, they harvest the sesame seeds, which are in

the farm.

First of all, they collect the sesame seeds directly from the land, which

is known as pre-harvested sesame seeds. They are not pure, but after some

purification they make it harvested seeds, which are about 45%-50% pure. If

the purification process is done clearly, this figure can be earned up to 55%.

This process is done by human-being. Its not done by any machine.

If we consider the harvested sesame seeds are 50% pure, the pure sesame

seeds in it are 40%, 10% in it are admixtures, about 10% is of water, dust also

contains 25% of it, and some other minerals are round about 15%. Here, 40%

are pure seeds, 10% admixtures with it are containing destroyed or bad types

of sesame seeds. 10% water, 25% dust, where as 15% other mineral contains

the fertilizers, some other seeds, anticides, some organic chemicals, etc.

So, this type of sesame seeds is called harvested sesame seeds,

which are brought to the purification at the factory/refinery.

The other by-product of the company is row-cotton. For production of

this item, the raw-material to be used is harvested cotton seeds. Cotton seeds

are generally measured in candy. The unit of its measurement is Candy.


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As we discussed about the harvested sesame seeds, the harvested

cotton seeds also have the same contents. The purity of the cotton seeds are

round about 50%. Thats the way; these both type of raw-material are broughtto the refinery for the purification process. We will discuss this process in the

Production Process in details. For further information, theres also a flow chart

of the production process is prepared.

The sources of raw-material can be classified as follows:

Natural Sesame Seeds:-

Natural sesame seeds are the basic raw materials and are available from themarket of adequate quality of the following varieties :-

White

Kashmiri

Purbia

Black

The White Sesame Seeds are of the best quality and grown locally in

Saurashtra, specifically in Amreli District.

Bulk of our processing for cleaning and crushing will be done on White

sesame Seeds.

Cleaning and processing is a 12 months activity since though White Seeds

are grown every year only in a single crop (of 90 days cycle from sowing to

harvesting) and the harvesting is done by October end / November start, the

same is available at a nominal price variation throughout the year. The

storage property of Natural Sesame Seeds at atmospheric conditions without

spoilage makes this eminently possible.


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The sourcing of Sesame Seeds is as per the following pattern:-

% of

Sourcing

Available from Characteristic

95% Saurashtra (of which Amreli

Dist. has major share)

Bright in colour with about 100 gm.

mud / bag.

4% Rest of Gujarat Baroda,

Jambusar, Nadiad, Kathlal.

Kapadvanj.

Dull with 1.5 - 2 kg. Mud / bag.

1% U.P.

Agra, Jhansi, Kanpur Small seeds and Brownish. Get

washed away while hulling with 2.5 - 3

kg. Mud / bag.

M.P.

Indore, Bhopal, Ujain Higher sand and stone content up to 3

to 3.5 kg. Mud / bag.

The purchases from Saurashtra are from the Market Yards of Amreli,

Rajkot Bhavnagar, Mahuva, Rajula and Savarkundla or directly from large

farmers from the villages of Chalala, Igorala, Mota Aakadia, Barvala, Lathi,

Amrapur, Bagasara, Munjhiasar, Mithapur and Bhalgam of Amreli District.

Harvest season of sesame in major states is depicted below

States Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Gujarat

West Bengal

Rajasthan

Tamil Nadu

Andhra Pradesh

Madhya Pradesh

Maharashtra


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Production process

Production means of Creating Utility

Utilities Are.

Form Utility.

Place Utility.

Time Utility.

Possession Utility.

Service Utility.

Knowledge Utility.

Production process of the company is very important thing. As we have

seen earlier that harvested sesame seeds are brought to purify them are 50%

pure. When the raw-material comes to the refinery, first of all the purification

process is done handmade. It contains about 50% pure sesame seeds.

After all the process, the seeds are checked by the supervisor. Then

after they are brought to factory for further purification by machine. The

machinery of the factory vacant very much space. The machinery is totally

handled by a computer operator, because the machine is totally concerned

with the master computer. The main machine is called the Huller, as this

process of purification is called hulling process. The machine at the first was

imported from London, England was costed less, and the purity of the final

product was 95%. But, now the company has imported an expensive huller

from Japan, which gives the purity up to 99.5%.


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It means the final product in the first one was95% pure, while 4% was

admixtures and 1% part was of the water. Where as in the latest machine, the

pure sesame seeds can be achieved are 99.5% and 0.5% is of admixtures.There is not a single part of water because, in this process, the final result of

the product is dried in the drier machine. Sometimes the purity can be earned

up to 100%.

We can define the general process like below:

Cleaned and pre-sorted natural and hulled sesame seeds are bought

from the open market. They are put Into "Sortex Machine" where they are

pushed by compressed air through multiple channels wherein they are sorted

through optical sensors using laser technology. All discolored kernels, peck

defects, foreign material and insects etc. are removed automatically through

ejectors so that the finished product attains purity of 99.5% plus.

Processing same seeds twice through the sortex machine cycle can

achieve up to 100% purity also.

Packing of sorted / purified seeds is done in various pack sizes of 10 to

50 kg. In jute / PP bags as per Customers requirements.

The packed bags are dispatched by road to the appropriate port where

they are loaded into ship after SGS Inspection etc.

This machine has been successfully tried in the country with

acceptable and better results. We can also understand from the flowchart as

well.

Thats the way; the final product is demanded in the foreign countries.


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About Market

Market is the basic term to understand the Marketing Management of

any company. To do all the marketing activities, the Market is the center. A

market, in general, may be described as the place where goods and/or

services are offered to for sale. We can also explain the term market as where

sellers and buyers meet and the title to goods is transferred.

The term market is derived from a Latin word Mercatus which means

To trade. At the end we can define the market place as: A place where

market is held, An assembly of people-buyers and sellers, An area of

operation, An organization, which facilitates exchange of commodities or

buying and selling of goods, An act of buying and selling, A course of

commercial activity.

In this company we will see about the market in this marketing

department segmentation.

About Marketing

We have studied the term Market. Now we will see the term Marketing.

Market is the place where all marketing activities are done. So, in this

sense, Marketing is human activity directed as satisfying needs and wantsthrough exchange process. The marketing may be done by either exchanging

goods or the same by services. These both are marketing.

The American Marketing Association has published the term marketing as:

Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods and services to create exchanges

that satisfy individual and organizational objectives.


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Here in this companys point of view, the marketing can be defined as the

promotion of the product sesame seeds. We will see in details of this term in

this segmentation.

Functions of marketing

We can understand the general functions of the marketing department

as from the definitions of market and marketing.

Here in this company, the marketing department is working differently

than any other companies, because of its product and business. HANUMAN

Industry mainly sells its product to the other foreign countries. Thats why; the

marketing policy of the company is very different than all other companies.

Generally, the employees who work in the marketing department do

the international marketing rather than to do the normal one.

HANUMAN industry is dealing with 12 to 15 countries. This EX-IM

(Export-Import) work needs a large investment for the company. So, the

company who is the buyer of the product of this company must pay the

advanced amount to deal. These international trade transactions are done by

the marketing department. This department also survey the market and

products performance, etc.


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Organization

Organization of the Marketing Department is generally to be organized

as follows:

As we know, generally the Chair Man-cum-Managing Director, Mr.

Manoj Sonpal is the Head of all the departments. Also, the General Manager,

Mr. Rajiv and the Assistant Manager, Mr. Ajay Bosmiya are the Heads of all

the departments. The Manager (Marketing) leads the workers at the office. He

also deals with the foreign buyers of the product. He also takes the workers

active in the think panel for more and more ideas for the marketing and Forex.

Thats the way here, the departments marketing has also included of

the Think Panel. This think panel is concerned with the Marketing department

indirectly.

The main work of this department is to have focus upon the

performance of the product in the market. They take decision of the

advertisement or any other sales promotion.

GeneralManager

Asst. Manager

Manager(Marketing)

Workers(Marketing)

Project InCharge(Think

Panel)

Workers (ThinkPanel)


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Marketing strategy

The base of the strategy and analysis in this company is generally,

product planning. The reason for the strategy and analysis is to promote the

product and to sale out the product in more and more quantity.

For increase in the sales of the product of the company, the company

must apply these two factors: strategy and analysis. For this, the company

must follow the theory of product planning.

For this work, the company also makes different the market in the

segments. The segmentation of market is necessary to serve better to the

target market.

With the help of segmentation of the market, the company plans of the

product. This work is majorly done by the marketing department. This

department has also a forecasting committee which has knowledge about the

commodity market.

As the prices of the commodities are changed 3 to 4 times in a year, as

per the seasons, the department plans for the product 3 to 4 times. Its

depended upon the season. If a season is changed, the plan must be done for

the product.

The decision making for the product planning is depended upon the

below mentioned activities:

1. Marketing Survey

2. Innovation

3. Market Research

4. Study of Competitors Products

5. Marketing testing


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Product line & product mix

We have discussed about the Product Line and Product Mix earlier in

the Production Department.

So, as we know, this company manufactures generally two products,

Sesame Seeds and Row-cotton, among which the Sesame seeds is the main

product. Therefore, the sesame seeds can be taken as the Product Line as

well as Product Mix for this companys point of view.

Chanel of distribution

The channel of distribution or we can say, the marketing channel can

be defined as the marketing institutions serial, which facilitates transfer of the

title to a product as it move from the producer to ultimate consumer or an

industrial user.

We can say the distribution of channel like this, the route taken by the

title to the product as it moves from the producer to the ultimate consumer or

any industrial user.

Thats the way; the channel of distribution in the sense of marketing or

management is an important media (medium) to reach the product at every

corner of the market. Therefore, the consumer can get the product easily from

anywhere.

In the industrial product, it has direct contact to the marketing officer. This

type of officer mainly contacts the consumers. But, in the other way of

thinking, if the customer is new in the market and he/she doesnt have the

knowledge to contact the marketing officer, can try to follow the following link

for the reference:


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Distribution Channels are as follows:-(1) Channels without middleman - Direct sales

(2) Channel with one middleman - Through Agent andRetailers

(3) Channel with two middleman - Through wholesalerAnd Retailers

(4) Channel with three middlemen - Through wholesalers, Semi

wholesalers

Market research

The systematic gathering, recording and analyzing of data about

problems related with the marketing of goods and services is called Marketing

Research. Thats why; this is a very important term to know.

For the accurate information about the market and marketing, it is

necessary to make useful decision about the price, production, advertisement,

promotional measures, etc. This information may be obtained from internal as

well as external sources like market survey, product performance search, etc.

activities are necessary to collect information about the market position.

In the case this company, HANUMAN Industry, it is not any separate

marketing research department. But, it gets the information from the

consumer countries directly. This work is done by the marketing department

of the company for the development of the new product or production

process, machinery, improvement in the products quality, new analytical

methods, waste reduction, etc.

And thus, the research and development (R & D) are continuously

carried out by the company.


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Advertisement

The promotional policy of the product is used to increase its sales, so it

is also called as the Sales Promotion. The term Sales Promotion consists of

those activities, which are designed to bring a companys goods to the

favorable intention of the consumers.

So, the Promotional Policy of the Product is an important activity being

performed by the marketing department of the company to increase the sales

volume. It uses some goods criteria for sales promotion.

Here, in this company, the sales promotion is done by advertisement.

These advertisements are not for ordinary people, its for companies in the

foreign countries. The advertisement is the medium by which a company can

aware the consumers about the product. The company advertises for the

product only on the internet.

Pricingpolicy

First of all the price is the term which is used to exchange the values

against the product or the service. Now, in this sense, the pricing policy is to

set the price for any particular product or service.

In HANUMAN Industry, the pricing policy of sesame seeds is designed

or set on the base of seasons, as the product is a commodity. This work is

done by the Head Office of the company. Finally, the set price for the sesame

seeds is signed by the Director.

The structure of the price of the sesame seeds is generally calculated

by the below mentioned link:

Production Cost + Administrative Cost + Depreciation + Taxes + Profit

Margin = Total Cost of the Product.


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The Pricing Policy thus, is a very challenging process, as its a

segmentation of classes. They have to standardize the price normally they fixprice big then they give discount as follows. Thus, the company also gives

some discount. Then the payment is made by the net banking by the

consumer company.

General evaluation

The Marketing Management of the company is very nicely going on

because of the Marketing department of the company. This department works

for the company round the clock. That we can say, because Mr. Mukesh

Solanki, the Asst. Manager of the company is himself a very knowledgeable

person of the Marketing and Market of the commodity product. He is never

free in the company. If his work is over, he works for the promotional policies

of the product. The Manager Mr. Rajiv himself is the master of Information

Technology field. So, designs the websites for the company and also deals

with the customer countries online. Thats the way; the Marketing Department

of this company is very ideal one.


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4.1 Introduction

Demand of the Product, Customer Satisfaction, Inventory Decision,

Market survey should be conducted properly because that helps the top

management in decision making. A research gives the best result only when

the studies are properly conducted. In fact research is an art of scientific

investigation research is the systematic & intensive study directed towards a

more complete knowledge of subject study and if start due to some specific

question or problem.

Researchmeans search again &again

Research methodology defines what the activity of research is, how to

proceed how to measure progress, and what constitutes success.

Research is essentially an investigation a recording & analysis of evidence

for the purpose of gaining knowledge.

Without Research mordan business can not making best for his business


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4.2 Define the Problem

In my SIP I Know that system of inventory management at

hanuman industry Amreli gives a satisfaction or not. I also found

that which the problem for unsatisfaction is.


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4.3 Literature reviewing of Study

Introduction

A Study on Inventory Management System

Inventories constitute the most significant part of the current assets of a

large majority of companies in India.

On an average, inventories are approximately 60% of current assets in

public limited companies in India.

Without any adverse effect on production and sales,By using simple

inventory planning and control techniques The reduction in excessive

inventories carries a favorable impact on a companys profitability.

What is inventory?

Despite its importance to the supply chain, inventory is not universally

well understood. It is variously characterized, both positively and negatively,

as an economic asset to a non-income-producing use of capital funds. Only

when considered in light of all quality, client service and economic factors

from the viewpoints of purchasing, manufacturing, sales and financedoes

the whole picture of inventory become clear. No matter the viewpoint,

effective inventory management is essential to supply chain competitiveness.

Inventory is a list for goods and materials, or those goods and

materials themselves, held available in stock by a business. Inventory are

held in order to manage and hide from the customer the fact that

manufacture/supply delay is longer than delivery delay, and also to ease the

effect of imperfections in the manufacturing process that lower production

efficiencies if production capacity stands idle for lack of materials.


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In other words, Inventory is a quantity or store of goods that is held for

some purpose or use (the term may also be used as a verb, meaning to takeinventory or to count all goods held in inventory). Inventory may be kept "in-

house," meaning on the premises or nearby for immediate use; or it may be

held in a distant warehouse or distribution center for future use. With the

exception of firms utilizing just-in time methods, more often than not, the term

"inventory" implies a stored quantity of goods that exceeds what is needed for

the firm to function at the current time (e.g., within the next few hours)

Various forms of inventories

Raw

materials

Work -in-

progress

Finished

good's

Stores &

Spares

Forms ofInventories


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Why keep inventory?

1). Transactions motive.

Emphasizes the need to maintain inventories to facilitate smooth

production and sales operations

2).Precautionary motive.

Necessitates holding of inventories to guard against the risk of

unpredictable changes in demand and supply forces and other factors.

3).Speculative motive.

Influences the decision to increase for reduces inventory leveis to

take advantage of price fluctuation.

Function of inventory

One reason organization s maintain inventory is that it is rarely possible

to predict sales levels

Production levels

Demand and usage patent exactly.

In such situations, Inventory serves as a buffer against uncertain and

fluctuating demand keeps a supply of item available in cash items are needed

by the organization or its customer.

The many functions that inventories perform can be summarized as follows

Smoothing out irregularities in supply.

Buying or prod using in lots or batches.

To meet seasonal or cyclical demand.

To take advantage of price discounts while buying items.

To maintain continuity to operation in processes.


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Inventory cost

There are two type of Inventory cost associated with inventory

namely.

A) Cost associated with the parches of inventory item.

I.e., cost of materials purchased.

B) Cost on materials consisting of three basic costs namely.

i. Ordering cost or acquisition cost

ii. Caring or Holding cost

iii. Shortage cost

Techniques and software of Inventory management

Inventory management is the active control program which allows the

management of sales, purchases and payments. Inventory Management and

Inventory Control must be designed to meet the dictates of the marketplace

and support the company's strategic plan. The many changes in market

demand, new opportunities due to worldwide marketing, global sourcing of

materials, and new manufacturing technology, means many companies need

to change their Inventory Management approach and change the process for

Inventory Control.

Despite the many changes that companies go through, the basic

principles of Inventory Management and Inventory Control remain the same.

Some of the new approaches and techniques are wrapped in new

terminology, but the underlying principles for accomplishing good Inventory

Management and Inventory activities have not changed.

The Inventory Management system and the Inventory Control Process

provides information to efficiently manage the flow of materials, effectively

utilize people and equipment, coordinate internal activities, and communicatewith customers.


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Inventory Management and the activities of Inventory Control do not

make decisions or manage operations; they provide the information toManagers who make more accurate and timely decisions to manage their

operations.

The basic building blocks for the Inventory Management system and

Inventory Control activities are:

Sales Forecasting or Demand Management

Sales and Operations Planning

Production Planning

Material Requirements Planning

Inventory Reduction

Inventory management software helps create invoices, purchase

orders, receiving lists, payment receipts and can print bar coded labels. An

inventory management software system configured to your warehouse, retail

or product line will help to create revenue for your company. The Inventory

Management will control operating costs and provide better understanding.

We are your source for inventory management information, inventory

management software and tools

Some Inventory Management Softwares Are :

AdvancePro by AdvancewareTechnologies,EverestAdvanced by Everest Software ,NTSWMS by National

Technology Services etc...


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Other Lot-Sizing Techniques:

There are a number of other lot-sizing techniques available in

addition to the facts stated above. These include the fixed-order

quantity, fixed-order-interval model, the single-period model, and part-

period balancing.

Fixed-order-interval model.

The fixed-order-interval model is used when

orders have to be placed at fixed time intervals such

as weekly, biweekly, or monthly. The lot size is

dependent upon how much inventory is needed from

the time of order until the next order must be placed

(order cycle). This system requires periodic checks of

inventory levels and is used by many retail firms such

as drug stores and small grocery stores.

Single-period model.

The single-period model is used in ordering

perishables, such as food and flowers, and items with

a limited life, such as newspapers. Unsold or unused

goods are not typically carried over from one period to

another and there may even be some disposal costs

involved. This model tries to balance the cost of lost

customer goodwill and opportunity cost that is

incurred from not having enough inventory, with the

cost of having excess inventory left at the end of a

period.


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Fixed-order-quantity model.

EOQ is an example of the fixed-order-

quantity model since the same quantity is orderedevery time an order is placed. A firm might also

use a fixed-order quantity when it is captive to

packaging situations. If you were to walk into an

office supply store and ask to buy 22 paper clips,

chances are you would walk out with 100 paper

clips.

You were captive to the packaging

requirements of paper clips, i.e., they come 100 to

a box and you cannot purchase a partial box. It

works the same way for other purchasing

situations. A supplier may package their goods in

certain quantities so that their customers must buy

that quantity or a multiple of that quantity.


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Just-in-time (jit).

Just-in-time (JIT) is a philosophy that

advocates the lowest possible levels of inventory.JIT espouses that firms need only keep inventory

in the right quantity at the right time with the right

quality. The ideal lot size for JIT is one, even

though one hears the term "zero inventory" used.

Steps to Effective Inventory Management

There are two different approaches organizations can make with

regard to inventory. They can assume it is just a necessary evil and start a

special inventory reduction program whenever cash gets tight. Or they can

make strategic decisions on the level to carry, put an inventory management

process in place to actively manage inventory and continually improve thebusiness results.


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4.4 Objective of study

To study and understand as to what exactly is Inventory management

system

To study the operational feasibility and utility of Inventory Management

System

To know functioning of profational in inventory management system at

hanuman industry.

To forcast challenges for inventory management system.

To aware about technology adopted for inventory management system

at hanuman industry.


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4.5 Rationale of the study

The study is to find out and help to know about inventory

management system.

The main rational of the research to aware about inventory

management system at Hanuman Industry and how it work?

And which types of steps we adopt that help to the employee for

understand about inventory significant in the industry.

Formalized studies are typically structured with clearly states

investigative question. Most of the social research comes under

this category.

The simplest study concerns a univarite question in which we

ask about the size of the inventory, forms, awareness, or

adoption. and forecasting


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4.6 Limitation of the study

Time limit:

The time span for the research is less, , so I have collected data

through secondary sources.

Lack of Knowledge:An employee has no more information related to inventory management

system, so i not get accurate results.

Lack of expertise:

There is chance of lack of expertise knowledge in the particular field.

Limited no of employee:

The industry has less no of employee, so I have limited mind for tools

answer.


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4.7 Data collection

For my research primary method of data collection was appropriate so

data was collected though questionnaires.

Data collection has two methods. Which are as under:

Primary Data:

The primary data are original data which are collected for the first time

for specific purpose. Such data are published by authorities who themselves

are responsible for their collection, And in these project to collect as a

questionnaire.

Secondary Data:

The secondary data are those which have already been processed.

Sales analysis summaries and investor annual reports would be examples of

secondary source as they are compiled from a variety of primary source. And

in these project to collect departmental data as a secondary data.

Primary Data

Secondary Data


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Sampling Design:

1. Probability: This is based on the concept of random selection a

controlled procedure that assures that each population element is given a

know nonzero chance of selection.

2. Nonprobability: This is arbitrary and subjective studies.And also

each member of the population does not have a known chance of being

included.

3. Sampling Unit: It should be based on worker who worked in the

company .So that its sample unit is 350.It is denoted by N .

4. Sample Size: Is the based on no. of worker who help for gives

information regarding the company. It is denoted by n . And that is only 30.

Instrument:

In this project, in the survey method to prepare a questionnaire and

formulated the data analysis and interpretation


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4.8 Data Analysis & interpretation

1. Are you aware about Inventory Management System?

Yes ------------------------------------------85.70%

No------------------------------------------- 0%

Do not know/ Can not say ------------- 14.30%

Interpretation:

The awareness level among the company officials regarding the

existence, functioning and applicability of inventory management system is

high that is85.70percent, as per the result of the study.

yes

No

Do not know/ Can not say


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2. Do you know that your company has an inventory management

system?

Yes---------------------------------------------- 92.85% No------------------------------------------------ 0%

Do not know/ Can not say -------------------- 7.15%

Interpretation:

The company officials are aware about their company having an

inventory management system. 92.85 per cent of the respondents do have

this awareness as against 0 per cent0 per cent of the respondent.

Yes

No



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3. Do you agree that there should be an inventory management

system in place in any organisation / company?

Agree ------------------------------------------------ 71.40% Disagree--------------------------------------------- 0%

Do not know/ Can notsay ------------------------- 28.60%

Interpretation:

According to the response to the above question, it appears that every

Company/organization should have a system or mechanism in place for

managing their inventory.

Yes

No



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4. For what reasons do you feel that there should be an inventory

management system?

To smoothen operational requirement---------------------85.71% To save time---------------------------------------------------- 14.29%

To maintain accountability and transparency----------------0%

Other reasons--------------------------------------------------- 0%

Do not know/ Can not say------------------------------------ 0%

Interpretation:

To everyones surprise, 85.71%of the respondents feel that it is for

smoothen operational requirement pupose that inventory records are

maintained and hence the need for an inventory management system. This is

followed by the need for saving time and the maintain accountability and

transparency.

To smoothen operational

requirement

To save time

To maintain accountability and

transparency

Other reasons



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5. Do you agree that the inventory management system in your

company has fulfilled the needs for which it was evolved?

Strongly Agree -------------------------------------- 78.57 Agree------------------------------------------------- 14.28%

Disagree----------------------------------------------- 7.15%

Strongly Disagree ------------------------------------- 0%

Do not know/ Can not say---------------------------- 0%

Interpretation:

From the above response, it appears that the inventory management

system has more or less achieved its objectives for which it was in place. This

is evident from the 92.85% of the respondents opinion who have either

agreed or strongly agreed in favour of this proposition. However the response

of 7.15% of the respondents who think otherwise also speaks something.

Strongly Agree

Agree

Disagree

Strongly Disagree



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6. What according to you is the major benefit of going for an

inventory management system by your company?

It has made storage and retrieval of material easier ------ 14.28% Improved Sales Effectiveness-------------------------------28.57%

Reduced Operational Cost-----------------------------------50%

OtherBenefits ----------------------------------------------- 7.15%

Do not know/ Can not say------------------------------------ 0%

Interpretation:

As regards the benefits of having an inventory management system by

the company, the respondents are of the opinion that the major benifit lies in

Reduced Operational Cost . This is followed by increasing sales effectiveness

and made storage and retrieval of material easier. However, all these benifits

are interlinked and the sedation between them is more analytical than

anything else.

It has made storage and

retrieval of material easier

Improved Sales Effectiveness

Reduced Operational Cost

Other Benifits



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7. Do you have skilled professionals in your company for inventory

management?

Yes---------------------------------------------- 92.85% No-------------------------------------------------- 0%

Do not know/ Can not say---------------------- 7.15%

Interpretation:

A industry has an 92.85% gives answer yes that means company has

an more skilled professionals in your company for inventory management

Yes

NO



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8. What category of professionals is managing your company

inventory?

Skilled and trained---------------------------------78.55% Only skilled but not trained----------------------- 7.15%

Non skilled but trained professionals-------------- 7.15%

Non skilled and non trained professionals--------- 0%

Others--------------------------------------------------- 7.15%

Interpretation:

As already stated above in the earlier question, availability of trained

and skilled professionals for inventory management needs serious attention of

the company.

Skilled and trained

Only skilled but not trained

Non skilled but trainedprofessionals

Non skilled and non trained

professionals

Others


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9. Do you agree that your company gives more emphasis on

software than skilled manpower with regard to inventory

management? Strongly Agree-------------------------------------- 28.57%

Agree------------------------------------------------- 64.28%

Disagree----------------------------------------------- 7.15%

Strongly Disagree------------------------------------- 0%

Do not know/ Cannot say ---------------------------- 0%

Interpretation:

The above response gives an impression that the company puts

greater emphasis on software than skilled manpower for inventory details

management.

Strongly Agree

Agree

Disagree

Strongly Disagree



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10. Do you think that the software used by your company is

according to the design and needs of the system?

Yes-------------------------------------------------- 92.85% No---------------------------------------------------- 7.15%

Do not know/ Can not say------------------------- 0%

Interpretation:

The company appears to be using the software according to the

system requirement and design and according to the customers needs.

Yes

NO



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11. What is the prime challenge before yor company with rehard to

inventory management?

Lack of trained professionls ------------------------------- 21.43% Maintenance cost-------------------------------------------- 50%

Changing requirements of customers---------------------- 21.43%

Other problems---------------------------------------------- 7.15%

Do not know/ Can not say ------------------------------------- 0%

Interpretation:

Maintenance cost with Lack of availability of trained professionls

coupled and changing needs of the customers are perceived to be the

inventory challenges before the company.

Lack of trained professionls

Maintenance cost

Changing requirements of

customers

Other problems



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12. What is the future of inventory management system in your company?

Will continue as a successful mechanism--------------------- 0%

May change accoeding to time-------------------------------- 85.70% Shall collapse--------------------------------------------------- 0%

Do not know/ Can not say-------------------------------------- 14.30%

Interpretation:

The future of inventory management system at a Hanuma Industries

pvt lt appear to May change according to time by the response of our study.

Will continue as a successful

mechanism

May change accoeding to time

Shall collapse



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4.9 Findings

Primary data analysis (Bio profile of the Respondents):-

No Percent Age Group/Sex/

graduates

1 35.71 35 To 50

2 28.57 21 To 24

3 35.72 above 50

4 98.85 Male

5 7.15 Femalel

6 28.57 Graduates

The future of inventory management system at a Hanuma Industries

pvt lt appear to May change according to time by the response of our study.

The company appears to be using the software according to the systemrequirement and design and according to the customers needs.

Maintenance cost with Lack of availability of trained professionls

coupled and changing needs of the customers are perceived to be the

inventory challenges before the company. The above response gives an

impression that the company puts greater emphasis on software than skilled

manpower for inventory details management.

As already stated above in the earlier question, availability of trained

and skilled professionals for inventory management needs serious attention of

the company. Recruitment of skilled professionls well vesed with latest

inventory management technology, particulary in chemicals and paint industry

is a concern for the company as it appers that it lacks in this domain.


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As regards the benefits of having an inventory management

system by the company, the respondents are of the opinion that the major

benifit lies in Reduced Operational Cost . This is followed by increasing saleseffectiveness and made storage and retrieval of material easier. However, all

these benifits are interlinked and the sedation between them is more

analytical than anything else.


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4.10 Recommendations & Suggestions

Recommendations & Suggestions can be use by the firm for the

betterment of the firm. I would like to recommend and suggest few points

based on my research in the organization.

1. Company should provide training to the employees for better inventory

management

2. Company should arrange workshop to train employees about the

importance of inventory management control system.

3. Company should reduce the inventory holding period to reduce the

inventory cost

4. Company should develop new and modern Management Information

System to management its inventory

5. Company should develop policy to check inventory on weekly basis

rather than monthly basis.


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4.11 Conclusion

The following are strength that we found during my SIP

Strengths

Good Brand Image in the Global Market is the most

significant for hanuman indusry.

Hanuman industry has Strong Distribution Channel.

Employee and Employer are full of knowledgeable and they

have good experience.

Above strengths aer shows that and I also faund that Hanuman Industry PvtLtd Amreli has an Good Brand Image in the Global Market t have StrongDistribution Channel. And Employee and Employer are full of knowledgeable.if industry make mordant inventory management system so industry enhancehis competative advantages.

The systems should also be integrated into systems used forpatient management, materiels management, resourcemanagement, billing and scheduling. Adherence to standards orthe ability to use standards-based practices is also necessary.When this is taken into account, Hanuman Industry sfacility canmanage its inventory in a manner thats financially, legally andmedically sound.


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4.12 Bibliography

Books

Bhatt Shridhara K, Production and Material

Management, Himalaya Publication House, Second

Edition 2005, Page No :566 To 615

Pandey I M, Financial management, Vikas Publication

House pvt ltd, Ninth Edition, Page No :624 To 635

Bhattacharyya Dipak Kumar , Research Methodology,

Excel Book, Second Edition

search


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Person al Interview to ol : -

A STUDY ON INVENTORY MANAGEMENT SYSTEM ATHANUMAN INDUSTRY

By:- Hardik A. Bhalu

General Information: Date: - / /2010

Name: ________________________________________________________

Designation: ________________ Qualifications: __________________

Age: _____________ Experience: ____________________

Sex: _________________________ Others: _______________________

Study Questions:

1. Are you aware about Inventory Management System?YesNoDo not know/ Can not say2. Do you know that your company has an inventory management system?YesNoDo not know/ Can not say3. Do you agree that there should be an inventory management system in place inany organisation / company?AgreeDisagreeDo not know/ Can not say4. For what reasons do you feel that there should be an inventory managementsystem?To smoothen operational requirementTo save timeTo maintain accountability and transparencyOther reasonsDo not know/ Can not say


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5. Do you agree that the inventory management system in your company hasfulfilled the needs for which it was evolved?

Strongly AgreeAgree

DisagreeStrongly DisagreeDo not know/ Can not say

6. What according to you is the major benefit of going for an inventorymanagement system by your company?It has made storage and retrieval of material easierImproved Sales EffectivenessReduced Operational CostOther benefitsDo not know/ Can not say7. Do you have skilled professionals in your company for inventory management?YesNoDo not know/ Can not say8. What category of professionals are managing your company inventory?

Skilled and trainedOnly skilled but not trainedNon skilled but trained professionalsNon skilled and non trained professionalsOthers9. Do you agree that your company gives more emphasis on software than skilledmanpower with regard to inventory management?Strongly AgreeAgreeDisagreeStrongly DisagreeDo not know/ Can not say10. Do you think that the software used by your company is according to thedesign and needs of the system?YesNoDo not know/ Can not say


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11. What is the prime challenge before your company with regard to inventorymanagement?Lack of trained professionals

Maintenance costChanging requirements of customers

Other problemsDo not know/ Can not say12. What is the future of inventory management system in your company?Will continue as a successful mechanismMay change according to timeShall collapseDo not know/ Can not say


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FM - Hanuman Industri (Inventory)

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