A PROJECT REPORT ON “INVENTORY, PURCHASE & PRODUCTION MANAGEMENT” AT VICTRANS ENGINEERS PVT. LTD. SUBMITTED TO UNIVERSITY OF PUNE PGDMLM (2009-2010) SUBMITTED BY:- ABHINIT KUMAR VERMA UNDER THE GUIDANCE OF PROF. MANGALGOURI DESHMUKH. SINHGAD INSTITUTE OF MANAGEMENT 1
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A
PROJECT REPORT ON
“INVENTORY, PURCHASE & PRODUCTION MANAGEMENT”
AT
VICTRANS ENGINEERS PVT. LTD.
SUBMITTED TO UNIVERSITY OF PUNE
PGDMLM (2009-2010)
SUBMITTED BY:-
ABHINIT KUMAR VERMA
UNDER THE GUIDANCE OF
PROF. MANGALGOURI DESHMUKH.
SINHGAD INSTITUTE OF MANAGEMENT
PUNE-411041
1
CERTIFICATE
This is to certify that project report title “Inventory, Purchase & Production
Management" at Victrans Engineers Pvt. Ltd. is a bonafied work carried
out by Mr. ABHINIT KUMAR VERMA of Post Graduate Diploma in
Material and Logistics Management, of Singhad Institute of Management
for fulfillment of PGDMLM Diploma of Pune University. He worked under
our guidance and direction.
Dr. Daniel J. Penkar Prof. Mangalgouri Deshmukh.
(Director) (Project Guide)
Place: Pune.
Date:
2
ACKNOWLEDGEMENT
This project bears imprint of all those who have directly or
indirectly helped and extended their kind support in completing
this project. At the time of making this project I express my
sincere gratitude to all of them.
I express my profound gratitude to my project guide Prof.
Mangalgouri Deshmukh, my College Director Dr. Daniel J.
Penkar for their constant guidance and encouragement and my
course Coordinator Ms. Gopa Das for her very kind support and
valuable guidance in completing my project.
I express my deep sense of gratitude, indebtedness and regard to
Mr. Sanjay Mahale, Mr. A.M.Takale & a special thanks to Mr.
S.K.Dutta for their cooperation in this project.
At this moment I also thank almighty, my Parents and God for the
blessings showed upon me and also my Friends for their valuable
suggestions.
ABHINIT KUMAR VERMA
PGDMLM “B”
3
DECLERATION
I, the undersigned, hereby declare that the Project Report entitled
“INVENTORY, PURCHASE & PRODUCTION MANAGEMENT” at
“Victrans Engineers Pvt. Ltd.” written and submitted by me to the
UNIVERSITY OF PUNE, in partial fulfillment of the requirements of
the award of Post Graduate Diploma in Material & Logistics
Management (PGDMLM) under the guidance of Prof. Mangalgouri
Deshmukh is my original work and the conclusion drawn therein
based on the material collected by myself.
Place: Pune Abhinit Kumar Verma
Date: PGDMLM (B)
4
PREFACE
“To manage a business well is to manage its future & to manage the future is to manage
information” an aspect of management education is to undergo winter training in the
corporate world and then make a revolution of it. This training is offered at the completion of
first semester PGDM and prior to commencement of the second semester PGDM the
companies offer the winter trainee’s wide varieties of interesting and challenging project.
Winter training requires that the student attains practical experience in an industrial
organization for a period of four weeks. The winter project investigates some significant
aspect or problem of an organization. It gives students an opportunity to observe the business
organization in operation and sharpen their skills by putting then to use.
Winter training enables the students to undergo research work or an on the job training .This
training enables individuals to make a better informed carrier choice regarding both
functional specializations and type of organization.
Yet it is sufficient for the student to apply the management concept to the real life situations
and at the same time also be it their independent judgments and creativity.
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CONTENTS
SR.NO. PARTICULARS PAGE
NO.
1. EXECUTIVE SUMMARY 7
2. INTRODUCTION 9
3. RESEARCH METHODOLOGY 12
4. OBJECTIVE OF STUDY 16
5. COMPANY PROFILE 18
6. ANALYSIS & INTERPETATION 26
7. FINDINGS & SUGGESTIONS 50
8. CONCLUSION 53
9. BIBLIOGRAPHY 55
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CHAPTER -1
EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
“VICTRANS ENGINEERS PVT.LTD.” precisely forms a part of “ELECTRICAL
INDUSTRY” where in the customers satisfaction is the most important thing which is to be
taken into consideration. This company works on the basis of “First in First out” (FIFO)
principle, but due to the various technical and working parameters as well.
During the project with “VICTRANS ENGINEERS PVT.LTD.”, I got an opportunity to
understand the purchase of raw material, its storage and the production part of the company.
The main problem regarding the matter of production is that, the raw material flow is slow, so
the company has to keep stock of raw material in good numbers. This is the ideal strategy
adopted by the manufacturing companies.
Now considering all these difficulties there was a need to develop a perfect inventory
management system.
The project also constitutes the study of documentation procedures that are followed in the
industry, like preparation of job order, generation of delivery challan cum invoice,
reconciliation of quantity, settlement of claims, etc.
The work that has been done in this project has given some important clues to the
management about the areas which thought were doing good and not only this it has also tried
to throw some light on the possible changes that can be made in order to achieve more and
more efficiency.
The main purpose of selecting this project is to study the aspects involved in purchase,
production & inventory management and the several documentation processes that are
involved in the working of the company.
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[
CHAPTER -2
INTRODUCTION
9
Production can be defined as the manufacturing of goods and services, in production
management different things should be kept in mind which is determination of production
requirement, manufacturing process, order priority &right quality.
Inventories are the stock of raw materials of any kind that are stored for future use, mainly in
production process. Inventory management is the forecasting of analysis and modeling,
inventory stimulation. Inventories are materials or resources of any kind having some
economic value and management of these are called inventory management. There are
different types of inventories which are as follows:-
Raw material inventory.
In process inventory.
M R O inventory.
Finished goods inventory.
In transit inventories.
Lot sized inventories.
These are the types of inventories which are to be managed which are called Inventory
management.
Purchase management consists of management of all purchasing or procuring activity of the
organization in terms of raw material and semi finished material for further production
activity.
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Purchasing management done by different organizations through using different methods
which are as follows:-
According to requirement buying.
Schedule buying.
Forward buying.
Speculative buying.
Contract buying.
Blanket orders.
Tender buying.
There is a vital need for integration so that customers can achieve their transportation
requirements while maximizing the value of money spent in getting their goods to market.
They require better use of existing assets and industry cooperation, and greater competition.
Companies aiming to be an integrated solutions provider have to tackle this by extending
their supply chain capabilities.
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CHAPTER -3
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. Why a research study
has been undertaken, how the research problem has been defined, in what way and why the
hypothesis has been formulated, and what data have been collected and what particular
method has been adopted, why particular technique of analyzing data has been used and a
host of similar other questions are usually answered when we talk of research methodology
concerning a research problem or study.
Research design:-
A research design serves as a bridge between what has been established (the research
objectives ) and what is to be done , in the conduct of the study. In this project the research
done is of conclusive nature. Conclusive research provides information that helps in making a
rational decision.
Descriptive design was choose to measure the satisfaction level of production on the basis of
different parameters such as working of machines, quality, skilled workers, Technology,
Intensive to workers etc. This design ensured complete clarity and accuracy it also insured
minimum bias in collection of data and reduced error in data interpretation. Statistical method
was followed in this research because the data was descriptive nature and is also enabled
accurate generalization.
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SOURCES OF DATA
Primary Data
Prime data are those which are collected a fresh and for the first time, and thus happen to be
original in character it was collected through following ways
1) Interview
2) Observation.
Secondary Data
Secondary data are those which have already been collected by someone else and which have
already been passed through the statically process the data were collected in the form in
company profile and produce profile through following ways
1) Internet
2) Newspapers
3) Journals
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RESEARCH INSTRUMENTS:
Industrial visit were used as it helped to prepare this project. Collecting data through
questionnaire was very time saving and personal observations was very time saving and cost
factor was also reduced. The respective departments and the net was also helpful in collecting
data.
SAMPLE DESCRIPTION:
SAMPLE DESIGN
The universe: - This consist the workers, employees and the production department.
SAMPLE METHOD
The sampling method used for the selection of the workers and employees is expert
judgmental sampling.
SAMPLE SIZE
The number of respondents interviewed 20.
METHOD OF COLLECTION:-
Data was collected through questionnaire, industrial visit and from departments. Questions
were of both types open ended and close ended. In these Questionnaire were not self
administered, I asked questions from various people in the logistic unit and then I noted all
the answers of questions.
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CHAPTER-4
OBJECTIVE OF STUDY
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OBJECTIVES OF THE STUDY
This being a part of the Electrical and Technology sector so the most important thing in this
sector is the quality product & prompt delivery of the materials. In this regard the production,
purchase & inventory department of any organization plays the most important role.
Therefore, the main objective of the study is to know how purchase, production &storage of
products and the information related to the product takes place in the company.
The Objectives, behind the study are as under:-
1. To study the existing production strategy, adopted by Victrans Engineers Pvt. Ltd.
2. To examine the strength and weakness of existing strategies.
3. To understand the effectiveness of logistics strategic in the market.
4. To suggest the measures to overcome the weakness from the existing strategies.
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CHAPTER-5
COMPANY PROFILE
18
COMPANY PROFILE
Victrans Engineers Pvt. Ltd. was founded in1989 by Mr. S. K. Dutta in Nagpur with an
objective of making instrument transformers. Victrans Engineers Pvt. Ltd. produces current
transformers and potential transformers. It not only produces these products but also provides
services for these products. Victrans Engineers Pvt. Ltd. is located in an industrial area of
Nagpur called Hingna, MIDC, which is 14 kms from zero mile, Nagpur. The product ranges
of the company are as follows:
33kv Single Phase outdoor type current transformers.
66kv Single Phase outdoor type current transformers.
110kv Single Phase outdoor type current transformers.
132kv Single Phase outdoor type current transformers.
220kv Single Phase outdoor type current transformers.
33kv Single Phase outdoor type potential transformers.
66kv Single Phase outdoor type potential transformers.
110kv Single Phase outdoor type potential transformers.
132kv Single Phase outdoor type potential transformers.
220kv Single Phase outdoor type potential transformers.
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INTRODUCTION OF VICTRANS ENGINEERS PVT. LTD.
Victrans Engineers Pvt. Ltd. manufactures current and potential transformers and also
provides services for these products. It manufactures these products in the required
specifications and standards. VEPL produces transformers which are used in different public
and private sector organizations like Maharashtra State Electricity Transmission Co. Ltd.,