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Material Management

CHAPTER - 01

INTRODUCTION

Materials Management Meaning:

  Material management involves Planning Programming, Organizing directing,

controlling and coordination the various activities concerning the material.

  Materials management is the branch of logistics that deals with the tangible

components of a supply chain. Specifically, this covers the acquisition of spare parts and

replacements, quality control of purchasing and ordering such parts, and the standards

involved in ordering, shipping, and warehousing the said parts.

Material Management is concerned with control of materials in such a manner 

which ensures maximum return on woring control material management is concerned

with the location ! purchase of needed their storage ! movement. "t also arranges to

eep on account for them .it is also responsible for planning their movement through

manufacturing processes, store rooms and distribution channels.

  Planning and control of the functions supporting the complete cycle #flow$ of 

materials, and the associated flow of information. %hese functions include #&$

"dentification, #'$ (ataloguing, #)$ Standardization, #*$ +eed determination, #$

Scheduling, #-$ Procurement, #$ "nspection, #/$ 0uality control, #1$ Pacaging, #&2$

Storage,#&&$ "nventory control, #&'$ 3istribution, and #&)$ 3isposal also called materials

 planning.

Definition:

  4ccording to 5ailey and 6armer defines the term materials management as

7Management of the flow8 of material into on organization to the point when those

materials one converted into the firm8s end product are finished product,9 Material

management is 7an organizational concept in which a single manager has authority and

responsibility for all activities, principally concerned with the flow of material into an

organization, "t includes purchasing production planning and scheduling, incoming traffic

inventory control, receiving and store9.

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Material Management

Areas of Concentration

oals:-

  %he goal of materials management is to consolidate and efficiently handle core

services. "t creates truc deliveries and service vehicle routes that reduce conflicts for 

vehicles and pedestrians 3elivery sites and loading docs are more effective and reduce

redundancy. (ost is reduced when it comes to solid and hazardous waste removal, storage

and recycling. :tility infrastructure and service equipment relocation can improve

aesthetics.

!"alit# Ass"rance:- 4 large component of materials management is ensuring that

 parts and materials used in the supply chain meet minimum requirements by performing

0uality assurance #04$.;hile most of the writing and discussion about materials

management is on acquisition and standards much of the day to day wor conducted in

materials management deals with 04 issues.

Parts and material are tested, both before purchase orders are placed and during use, to

ensure there are no short or long terms issues that would disrupt the supply chain. %his

aspect of material management is most important in heavily automated industries, since

failure rates due to faulty parts can slow or even stop production lines, throwing off times

tables for production goals.

A$ Im%ortance of Material Management:

  %he importance of materials in organizational performance has been ever increasing

materials one any commodities used directly or indirectly in producing a product or 

service. Such as raw materials component parts assemblies and supplies.

  "n the manufacturing organization, the important inputs one referred to as Ms i.e. Men

#

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Material Management

  %he amount of money spent on materials is higher than other inputs put together #i.e.,

Machinery, labour, energy etc.$

  Materials offer considerable scope for reducing costs and improving profits.

  Since materials is treated as a ma>or part of current 4ssets.

  Materials add value to the product.

  0uality of finished product depends on the quality of materials uses to produce them.

  Material management encompasses areas such as purchasing, storing, "nventory control,

materials handling, transportation, and shipping etc.

  %hane is need for procurement and preservation of scarce materials for future use.

  %here is increasing demand for ensuring safety of environment by using biodegradable

and less toxic materials which do not cause any ?ealth hazard.

%he efficiency of a firm depends upon the availability of right Materials.

  Materials one life blood of development of humanity.

C$ ("nctions of Material Management:

  Materials handling.

  Materials planning and programming.

 

@aw material purchasing

  @eceiving, store eeping and ware housing.

 

"ssue of material

  "nventory control.

 

Aalue engineering and value analysis.

  %ransportation of materials and handling of materials.

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Material Management

  Material accounting

 

Aendor development, vendor evaluation and vendor rating.

  3isposal of scrap and surplus.

 

%raffic management

  ectives can grouped as,

&. Primary ob>ectives

'. Secondary ob>ectives

1$ Primar# O)*ecti+e of materials management:-

Primary ob>ectives that contributes to the achievement of overall company ob>ectives.

%hese are concerned with achieving.

1$ 5uying best items at lowest prices

,$ ?igh inventory turnover maintaining the flow and products

$

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Material Management

,$ 4econ5ar# o)*ecti+es of Materials management:

  Secondary ob>ectives that contributes to the achievement over all company ob>ectives

 but indirectly.

1$ @eciprocity

,$  +ew materials and products.

$ Bconomic mae or buy decision

.$ Promotion of standardization

/$ Product improvement

E$ A5+antages or &enefits of Material Management:

Material cost can be lowered.

(ontrolling of the indirect cost.

@is of inventory loss minimizing.

5etter utilization of equipment.

@eduction in loss of time of direct labour.

(ost of material used in different departments ascertained.

(ontrol of manufacturing cycle.

Materials congestion in storage places avoided

"mprovement in delivery of the product.

($ Material Management Conce%t:

Production Planning !

(ontrol

Material (ontrol Material handling "nventory control

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Material Management

  4"%%lier A C"stomer 6

  4"%%lier & C"stomer 7

8IP9 8or in Progress

Material management in an industry can be stated in general terms as management,

flow of materials in a production or manufacturing unit. %he material management

functions included among other controlling or regulating the flow of material in relation

to changes in variable lie demand, price availability, delivery schedules etc. "n actual

 practice this boils down to how much when from whom and how to order and to store.

$ Materials (lo; in a Man"fact"ring Com%an#:

Aendors receive the orders from purchasing department, which in turn Supplies materials

to the concern. %he receiving department of the concern checs the quality quantity of the

materials in laboratory by the quality control officers. %he next step is to weight the

loaded vehicle through weighted machine after :nload the raw materials. "n each bag

tae sample of material. %his will tested by the laboratory #in quality assurance

department$. %here is anything problem arises, the material stored in the store room and if 

any problem re>ection is made to Suppliers. %he suppliers should returns the actual

needed goods within & days from date of the materials received. %he material moves

sequentially from machine %o machine and there may be in process storage in between.

%he finished product finally goes to finished part stores. ;here it will be stored from

Page -

WI

Finished

Product

Raw

Materia

WI

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Material Management

there it will be moved to a shipping department, ultimately, the product goes to the

customers.

H$ Acti+ities t

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Material Management

Ot

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5? Optimizing purchasing quality of materials.

e? 3iversification of product lines.

f? Optimizing time and quality of demand for products.

g? Managing information.

@$ 4co%e of Material Management:

  %homas 6. ;allace and Dohn @. 3ougherty defines Material management as 7%he

grouping of management functions supporting the complete cycle of Material flow, from

the purchase and internal control of production material to the planning and control of 

wor in process to the ware housing shipping and distribution of finished product7.

M$ T

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Material Management

Materials Han5ling

Meaning:

  Material handling is an important activity not only stores, but also in production. "t

includes all movement of materials in manufacturing situation.

Definition:

  Material handling is defined as, 7?andling of material it is system or combination

of methods, facilities, labour and equipment for moving, pacing and storing the

materials to meet specific ob>ectives7.

Accor5ing to Ra#mon5 of >l;ice:-

  Material handling division of 4merican society of mechanical engineers has

approved the following definition, 7Materials handling is the art and science involving,

 pacing and storing of substance in any from9.

1$ Im%ortance of Materials Han5ling:

  Bfficient materials handling is important in industry ."t is as important as efficient

transportation in the location of manufacturing facilities. Materials are to be loaded,unloaded at various points, moved through inspection and production operation to storage

areas and finally to the shipping department. %hese movements do not add value to the

 product but they do add to the cost. Some manufacturing spend between '2 to )2 = of 

their factory on materials cannot be 4voided as it is one of the ma>or functions in

materials management.

,$ O)*ecti+es of Materials Han5ling:

(apacity "ncreases

(ustomer services improvement

;oring conditions improvement

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Material Management

?igher productivity

5etter space utilization

@educe congestion that impedes the movement of materials.

@educe e hazards to personnel.

@educe worers fatigue

"ncrease efficiency of shipping and receiving.

"mprove personnel comfort.

3ecrease damages in handling and shipping.

$ Princi%le of Materials Han5ling:

Planning Mechanization (ontrolCPrinciple

Systems 4utomation Principle (apacity Principle

Materials flow Bquipment Principle Performance Principle

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Princi%les of materials

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Material Management

Simplification 6lexibility Principle

Eravity 3ead ;eight Principle

Space utilization Motion Principle

Safety Principle "dle time Principle

Obsolescence Principle

.$ Rele+ance of Materials

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Material Management

3amage causes to materials by negligence or use of improper handling box and

equipment8s.

4ccumulation of materials.

(ongestion of floor space near machine and wor centers and near the gang ;ays or 

aisles.

(ongestion of space at receiving store

Materials are ept waiting for a long period.

Material Planning

Meaning:

  Material planning is the scientific way of determining the requirements of raw

materials, components, spans and other items that go into meeting the production need

with in economic investment policies.

  Material planning is a subset of the overall production planning and control system

which has broad prospective. 4 material budgeting is an estimate of expenses to be

incurred in the procurement. Of materials and it helps effective execution and control of 

material plans.

1$ 4ignificance of Material %lanning:

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Material Management

Material planning activity raises the level of the buyer from a mere order placer to a

 purchase executive.

Material planning is aims at motivating people and saves as on effective control device.

Bfficiency material management function cannot be visualized without a sensible or 

efficient materials planning function.

,$ &enefits of Materials %lanning:

Material planning both and quantity and value in terms of rupees each item and overall.

 Material planning helps to get things done efficiently by better forecasting of future

material needs.

  4 well designed material planning system precedes steps for effectively materials

 budgeting follow up of suppliers.

 Purchase planning is based on material planning.

$ (actors infl"encing Material %lanning:

%he various factors influencing the material planning process are classified as,

Macro factors which affect material planning are price trends business cycle, import

 policy of the government, credit policy.

Micro factors affecting material planning include corporate ob>ectives woring capital,

seasonality, delegation of powers and communication system used by the firms.

.$ "i5elines to )e "se5 for effecti+e an5 relia)le material %lanning:

%he planning horizon should cover the longest lead rimes anticipated.

"f the demand fluctuated or shows a seasonal variation, their effect on

the planning must be taen care of.

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Material Management

6or short planning horizons, if more planning periods are considered with in the year,

materials plans will be more reliable. ?owever, quarterly plans are more popular than

monthly or weely plans.

(omputerization of material planning process is advisable because computer are helpful

to handle changes caused by fluctuation in demand and wor out new or revised materials

 plans.

(omputerization of material planning results in saving in time and effort apart from

obtaining accurate functions.

Materials &"5geting:

Meaning:

Once the material requirements have been established and wored out, the Material

 budget is prepared taing into account inventory on order and inventory in transit also

nown as pipeline inventory.

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Material Management

  Material control is the regulator of the function of organization relations to the

 procurements storages and usage of material in such a way as to maintain on even flow of 

 production without excessive investment in material stoc.

Definition:

  %he 4merican production and inventory control society defines Material (ontrol

as 7%he function of maintaining constantly available supply of raw materials Purchased

 parts and supplies that are required for the manufacture of the product9.

4tores an5 In+entor# control:

  %his involves physical control preservation of stores minimization of Obsolescence

and damage through timely disposal and efficient handling. 6or Physical verification of stocs and reconciling them with boo figure.

A$ Material control in Tata 4teel limite5:

%he material control in %ata Steel limited was in ) stages, they are as follows underG

". Purchase Material

"". @eceipt Material

""". "ssues Material

&$ O)*ecti+es of Material Control

&. Bnsure (ontinuity in Supply

'. Purchase @equisite 0ty Of Material

). Bliminate ;astage in

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Material Management

C$ Tec

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  %here should be proper scheduling of materials.

  4 good method of classification and codification of material should be followed.

  %here should be proper inspection of materials when they are received by the receiving

department.

  Standard forms for requisitions, order, and issue, transfer of material from one >ob to the

other and transfer of material from the >ob to the stores should be used.

  %he storage of materials should be wellF planned to avoid losses from theft, (arelessness,

damage , deterioration , evaporation and pilferage,

  4 system of internal chec should be introduced to ensure .that all transactions involving

materials are checed by properly authorized and independent persons.

  Ordering quantity for each type of material should also be fixed to reduce the ordering

costs and. carrying costs of materials.

  4dequate records to control materials during production should be maintained to ensure

that there is minimum possible wastage.

E$ A5+antages of Material Control

%he advantages of material control are as underG

  %o effect purchases of materials of the right quantity consistent with standards prescribed

in respect of the finished product.

%o process materials with acceptable commercial terms with a view to effecting

maximum economy in the cost of buyingJ

  %o mae available on assured supply of materials, so as to eep the cycles of production

going without any interruption.

%o ensure effective utilization of materials.

  %o prevent overstocing of materials and the consequent locing of woring (apital.

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Material Management

CHAPTER - 0,

COMPAN7 PRO(I@E

Conce%t"al (rame 8or of Tata 4teel @t5-8ire Di+ision

INTRODUCTION AND HI4TOR7 O( TATA 4TEE@ @IMITED

%4%4 S%BB< ust a process, but also a way of life. %he determination to

move up the value chain in processes, products and performance has resulted in %ata steel

 being acnowledged for its excellence. %he numerous awards conferred on %ata Steel

stand testimony to this.

%he company was incorporated in the year &1/ as a private limited company for the

manufacture of wires and got into the business of maing umbrella ! rib wires. %he plant

was set up at 5orivali, Mumbai. %he company went to public in &1-& and subsequently

too up manufacturing of many other wires, which were being imported at that time. %he

company set up another wire plant at %arapur in Maharashtra for production of Motor 

%yre 5ead wire in &1-.

(ompany has five plants #%.;.P. F &, %.;.P. F ', S.S.P, ;.@.M ! 3;P$ at %arapur,

Maharashtra and other plants at +avasari, Sisodra ! 5anglore, and Eu>arat. (ompanyLs

corporate office is located at 5orivali, Mumbai. "n addition, there are regional sales

offices at 3elhi, (hennai ! (alcutta and sales offices at

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Material Management

%ata steel was established in &12,

as 4sia8s first and "ndiaLs largest integrated private sector steel company. ;ith its captive

iron ore and coal mines and one of the world8s most modern steel maing and finishing

facilities at Damshedpur in eastern "ndia, which includes a state of the art cold rolling mill

complex. %ata steel limited is among the lowest cost producer of steel in the world.

%he * million tonne Damshedpur plant, which produces both flat and long product, is

undergoing a million tonne capacity expansion to be completed by September '22. %he

company intends to raise its capacity to l million tonnes per annum by '2&' organic

growth and acquisition.

%he Damshedpur capacity will produce * million tonnes and the balance capacity will be

 put up or acquired elsewhere in "ndia and overseas.

%ata steel recently announced its first ma>or overseas investments in +4% S%BB

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Material Management

"t also awarded 4sia8s most admired nowledge enterprise award F'22) by %eleos, an

independent nowledge management company of South orea.

@OCATION:

T

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Material Management

.$O&=ECTIE4 O( THE TATA 4TET@ @IMITED- 8IRE DII4ION

T

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Material Management

6irst compliance F//=.

Eross yield F1.&=.

(ost #plant cost$ F &&,'-@SCton.

OBB of M%5

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Material Management

ENERA@ IN(ORMATION A&OUT TATA 4TEE@ @IMITED B8IRE DII4I0N:

NAME O( THE COMPAN7 TATA 4TEE@ @IMITED

B8IRE DII4ION@OCATION OR ADDRE44 P@OT NO$,2FC >IAD&

INDU4TRTA@ E4TATE

DODDA&A@@APUR

&ANA@ORE RURA@ DITRICT

COMPAN7 O8NER4HIP @IMITED COMPAN7

7EAR O( E4TA&@I4HED ,00/

PRODUCT4 MANU(ATURED

AND PRODUCTION

CAPACIT7

MT& 8ire -/ MTF Per Mont<

4RIN 4TEE@ -12 MTFPer Mont<

HC 4PO>E -0 MTFPer Mont<

H& -1/ MTFPer Mont<

NO$ O( EMP@O7EE4 1/0

COMPAN7 CERTI(ICATION I4O-T4 3001:,000

OPERATION4 DURIN 7EAR 

A$ 8OR>IN DA74 PER 7EAR 

&$ 8OR>TIN PER 8EE> 

C$ NUM&ER O( 8OR>IN 4HI(T4

/ DA74

DA74

THREE 4HI(T4 Ro"n5 t4PC& APPROA@4 CON4ENT (OR E6PAN4ION

UNDER AIR ACT

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Trusteeship

Integrity

Respectthe

Indiigual

Credi!ility

"#cellence

Material Management

CORE A@UE4 O( TATA 4TEE@ @IMITED B8IRE DII4ION

ENER7 PO@IC7 O( TATA 4TEE@ @IMITED B8IRE DII4ION

%ata steel real firms its commitment to be a part of a national mission for mitigating

climate change issues by efficient use of energy and shall endeavors to (omply with

national and international regulations

4dopt the best available technology to enhance energy efficiency

"mplement world class operating practices so as to conserve energy and natural resources

(onduct regular energy audit for continued improvement.

Promote energy conservation through mass awareness.

!UA@IT7 PO@TC7

%he 0uality Policy of the %ata Steel limited wire division wasG

Q(onsistent with the group purpose %ata Steel constantly strives to improve the quality of 

life of the communities it serves through excellence in all facets of its activities.

;e are committed to create value for all our customers and ey staeholders by

continually standardizing, improving and innovating our offerings, systems and process

involving all our employees.

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Core

$alue

 

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Material Management

%his policy shall form the basis of establishing and reviewing the business ob>ectives and

strategies and shall be communicated across the organization. %he policy will be

reviewed to align with business direction and to comply with all the requirements of

%0M Principles.9

4A(ET7 PRINCIP@E4 J OCCUPATIONA@ HEA@TH PO@IC7

%he safety principle of %ata Steel limited wire division wasG

%ata SteelLs safety and occupational health responsibilities are driven by our commitment

to ensure zero harm to people we wor with and society at large and are integral to the

way we do business.

4afet# Princi%les

• Safety is a line management responsibility.

• 4ll in>uries can be prevented.

• 6elt concern and care for the employee on Q'* ?ours Safety9 shall be demonstrated by

leaders.

• Bmployees shall be trained to wor safety.

•  ;oring safety shall be condition of employment.

• Bvery >ob shall be assessed for the ris involved and shall be carried out as per authorized

 proceduresCcheclistCnecessary wor permit and using necessary personal protective

equipment.

8e are committe5 to contin"al im%ro+ement in o"r 4 J OH %erformance$

• ;e shall set obe>ectiveFtargets,develop,implement and maintain management standards

and systems,and go beyond compliance of the relevant industry standards,legal and other@equirements.

ENIRONMENTA@ PO@IC7 TATA 4TEE@ @TD B8IRE DII4ION

%he Bnvironmental Policy of %ata Steel limited wire division wasG

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Material Management

%ata SteelLs environmental responsibilities are driven by our commitment to preserve the

environment and are integral to the way we do business.

1$ ;e are committed to deal proactively with climate change issue by efficient use of 

natural resources ! energyJ reducing and preventing pollutionG promoting wasteavoidance and recycling measuresG and product stewardship.

• ;e shall identify, assess and manage our environment impact

• ;e shall regularly monitor, review and report publicly our environment performance.

• ;e shall develop ! rehabilitate abandoned sites through afforestation and landscaping

and shall protect and preserve the biodiversity in the areas of our operations.

• ;e shall enhance awareness, sill and competence of our employees and contractors so

as to enable them to demonstrate their involvement, responsibility and accountability for

sound environment performance

,$ ;e are committed to continual improvement in our environmental performance.

• ;e shall set ob>ectiveFtargets, develop, implement and maintain management standards

and systems, and go beyond compliance of the relevant industry standards, legal and

other requirements

• ;e will truly succeed when we sustain our environmental achievement and are valued by

the communities in which we wor.

MI44ION AND I4ION O( TATA 4TEE@ @IMITED B8IRE DII4ION

%he mission and vision of %ata Steel limited was as followsGF

;e aspire to be the global steel industry benchmar for value creation and corporate

citizenship.

;e mae the difference throughG

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Material Management

• O:@ PBOP

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Material Management

%rusted (ustomer @elationship

/ Cs of &RAND PROMI4E O( THE TATA 4TEE@ @TD B8IRE DII4ION

%he (s 5rand Promise of the %ata Steel

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Material Management

?@ focus

Maret dominance

8EA>NE44:

Slow pace of decision with respect to investment

OPPORTUNIT7:

 +ew products lie tyrecord.

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Material Management

M$T$&$

Motor T#re &ea5 ;ire?

• M@6

• (B4%

• 4PPO

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Material Management

MOTOR T7RE &EAD 8IRE:

%yre bead wire is a copperC bronze coated wire which is used for the reinforcement of 

virtually all types of pneumatic tyres such as trucs, buses, cars, motorcycles etc. %he

main function of the tyre bead wire is to act as reinforcement and it helps to get a proper 

grip of the tyre on the rim. %he type of tyre and structure of bead rings used, determine

the size of bead wire.

Pro%erties of M$T$&:

&. :niform winding.

'. :niform surface finish.

). 4dhesion characteristic of wire to rubber.

*. (lose combination of high strength ! ductility.

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4%ring 4teel 8ire LMotor C#cle

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Material Management

M$T$&$ L MANU(ACTURIN PROCE44

(ig"re1$: M$T$&$ - Man"fact"ring Process

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Material Management

(ig"re1$: Man"fact"ring Process (lo; Cor product lines at 5angalore wire plant is (upper coated high tensile steel

wire used in automobile tyres. 5ead wire typically constitutes = of the tyre weight

#approx. &.-g in a car tyre ! .-g in a truc tyre$. %yre bead wires are used for the

manufacture of virtually all types of pneumatics tyres such as %rucs, 5uses, (ars, Deeps,

Motorcycles, Scooters, etc. %he main function of tyre bead wire is to act as reinforcement

and help to get a proper grip of tyre on the rim.

%he size of the wire varies depending on the application. %ata steel ltd. is in a position to

meet the entire size range of wire from 2./mm to &.&-mm required by the tyre

industries.

%he manufacture of tyre bead wire starts with the selection of wire rods free from piping

segregation and other defects for the wire drawing. 3ifferent types of pacing are given

as per specific requirement of domestic and international marets.

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Material Management

%he approximately linear density that is weight per unit length of the wire is .gmCm.

%he breaing load necessary to the nature of the wire specimen is not less than &)'g.

%he test is conducted on a tensile testing machine at a specified speed.

PRE L DRA8IN

(ig"re1$2: Pre-Dra;ing MFC Pa# Off 

%he requirement of finish wire size diameter of different customers is normally 2.1-mm.

%he raw material available with us after picling is of size .mm in diameter. 5ut we

cannot draw wire directly from .mm to 2.1-mm because during drawing operation

high stresses are induced in the wire which leads to wire breaage. ?ence the drawing is

 performed in two stages with intermediate patenting process to relieve those stresses.

 "n 3oddaballapura ;ire Plant there are One mCcLs 2& in the pre K drawing section to

reduce the wire diameter from .mm to an intermediate diameter of ).&mm in passes.

%he reduction through the dies should not be more than &/ to '*=. %he wire coils after 

 picling are loaded onto the pay K offLs of 2& mCcLs from where they are carried onto the

drums.

%here are six drums and six dies in a row while the final die is @.3.?. #@otary 3rum

?orizontal$. %he drum or bloc is generally used for cooling the wire as it gets heated up

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Material Management

during the drawing operation. %he drum is given internal cooling with the help of water 

 >et. 4t the base, the drum is provided with a special profile, which avoids over lapping of 

wire during the operation. 5ut sometimes due to grove formation overlapping still occurs.

?ence the drum is made such that the drum diameter gets reduced as we move upwards,

to avoid overlapping as the wires slip on the drum. %he max speed of the drum in 2& mCc

is . mCs.

PATENTIN

(ig"re1$3: Patenting ("rnace

%he cages filled with wires from Pre F drawing mCcLs are loaded onto the pay K offLs with

the help of overhead cranes from where the wires start uncoiling ! are first heated to a

temperature >ust above the critical temperature i.e. &2/2°( in the furnace and then

quenched in the lead bath maintained in the temperature range of 1 to -&°(. %he

furnace is divided into * zones ! the lead bath into two zones. %he lead is in the form of 

liquid and can easily form its oxide i.e.

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Material Management

 +ow the wires are quenched in cold water to remove the residual lead. %he wires are next

 passed through ?ydrochloric acid #?(

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Material Management

should not be eccentric in motion. Soap powder used for lubrication helps in easy

drawing of the wires ! is generally +a and (a based. ;ire must be fully submerged in

the soap powder ! the powder should be mixed on a regular basis to avoid >amming. %he

 powder should also be free from contaminants for effective results.

%he main difference between Pre F drawing and finish wire drawing is that the final

finished wire is collected in spools rather than in the cages. ;eight of spools is Max

*2g for && to &* mCcLs ! *2g.;inding #max$ speed of mCc does vary from &/mCs

to '2mCs.

P@ATIN @I NE

(ig"re ,$1: Co%%er Plating

"n this process stress is relieved and cooper coating is provided on the wires according to

the requirement. %he weight of copper coating on the wire is 2.* to 2.gmsCg of wire.

%he whole line has got many intermediate vipers #air, rubber, bristle, cotton, etc.$ !

 pressurized rinsing tans for cleaning purposes. %he wires are first unwound and passed

to the molten lead bath for relieving internal stresses in the wire and to burn the lubricant

coating on the wire. %he temperature of the lead bath is maintained in the range of *22 to

*2°(. 4fter passing through the lead bath the wires are passed through the alaline bath

to clean the wires from residual lead. ;ires are then passed through ?(l tan for better 

cleaning.

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Material Management

%hese wires are then passed through the (ooper Sulphate #(uSO*$ tans, which are

maintained at selected concentration as per the requirement of the coating on wires. %he

wires are then cleaned in cold water followed by in hot water. %he hot water is having

temperature of about 1°(. %hen the wires are dried in drying oven maintained at a

temperature of &/2 to '22°( to get the wires free from water particles. %he dried wire is

then given a thin coating of (umbers and @esin to protect its surface from corrosion.

RE8INDIN

(ig"re ,$,: Re;in5ing MFC

%he main purpose of the rewinding section is to give the wires straight illing which is

the requirement of the customers. %he rewinding process is done in the dehumidified area

onlyJ so as to protect the material from dampness and also this area restricts formation of 

copper oxide on the material. %he tae F up units of rewinding section can tae )* wires

at a time after which the loaded spools from it are taen to the rewinding mCc for straight

illing purpose. "n these mCcLs the wire is passed through a set of horizontal and vertical

illing rollers to mae the wires straight, as it is the requirement of the customers. 4fter illing process of the wires, they are passed for winding them on the collapsible spools

for further pacing.

3uring the operation the tension of the wire is maintained constant with the help of the

dancer arm. %he tension is in between )gs to gs.%he wire gets wound on the spool

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Material Management

with the help of pneumatic arrangement. "f there is breaage of wire due to any reason,

then with the help of brae both the spools are stopped automatically. %he speed of the

rewinding mCc is &'mCsec.

PAC>IN 4TORAE J DI4PATCH

(ig"re ,$: 4torage J Dis%atc< 4ection

5efore passing any finished product for the customerJ inspection is done by 0uality(ontrol 3epartment ! only after this inspection step procedure of pacing is started. %he

weight of the spools with coil loaded on it is about 2.M%. %hen on the spool stamping

station the spool no, weight, etc. is labeled onto it. %hen they are taen to the tilting

 platform. ?ere the flange of the spool is removed with the help of pneumatic spanner to

save the time of pacing.

4 wooden pallet is placed on the conveyer with a corrugated sheet and plastic bags. %he

coils are placed into the plastic bags by a lifter. %he second coil is placed on the first coilwith a wax paper in between them to avoid rubbing. %his wax paper is used for corrosion

resistance. 4gain the wax paper is placed on the upper coil and then it is paced with the

cello tape.

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Material Management

4 small bag of silica gel is placed inside the coils to absorb the moisture. %he (@(4

sheet is rounded around the coils and it is strapped at two points. 4 plywood top is placed

on the coils and then it is strapped at three points. %he wooden corners are fixed to the

 pallets restricting any movement of the coils. 6inally it is labelled with coil no, size,

weight and customers name. %hen they are passed to dispatch section and then

transported.

INTRODUCTION:

%ata Steel

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Material Management

HI4TOR7 O( TATA 4TEE@ @IMITED:

%"S(O was established by D4MSB%D" %4%4 in year &12."n year of &1)1, it had largest

steel plant in the 5ritish Bmpire. 4 modernization and expansion program was launched

in year &1&.

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Material Management

ii. (reation of 5'5 portal called metal>unction.com in collaboration with S4"< and alyani

Steel.

 

,001

;orld Steel 3ynamics rans %ata Steel as "ndia8s only ;orldFclass steel maer.

  ,00

i. %he (ompany launches its first branded cold rolled steel product called %ata Steelium

ii. %he (ompany celebrates years of industrial harmony.

  ,00.

i. %he (ompany8s biggest blast furnace completes production of &*million tones of hot

metal which is the highest production achieved by a blast furnace in T"ndia in its first

campaign.

ii. %he (ompany files a corporate sustainability report where the (ompany was rated as

"ndia8s %op @eporter by :nited +ations Bnvironment program and Standard and Poor8s.

  ,00/

i. %he (ompany acquires +atSteel 4sia in Singapore.

ii. %he company launches steel Dunction which is "ndia8s first organized retail store for steel

 products.

iii. %he (ompany is raned as the ;orld8s 5est Steel Maer by ;orld Steel 3ynamics.

  ,00-,00

i. %he (ompany8s steel wors at Damshedpur crosses million tonne mar in crude. Steel

 production.

ii. %he (ompany is raned again as the worldLs best steel maer by world steel 3ynamics

Page *)

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Material Management

iii. %he (ompany acquires (orus, which maes the company the sixth largest steel maer in

terms actual crude steel production.

  ,002-,003

i. &./ Mtpa capacity expansion at Damshedpur becomes operational, bringing total crude

steel production capacity to -./ Mtpa.

ii. Prime Minister 3r. Man Mohan Singh unveiled the centenary postage stamp to

commemorate the (ompanyLs centenary year.

iii. %he company was conferred the 5est Bstablishment 4ward by the President of "ndia.

iv. %he (ompany was awarded the 3emining 4pplication Prize

v. %he (ompany was awarded the %B@" (orporate 4ward of. "t is ?"A C 4"3S initiative...

,003-,010

i. %he (ompany issued Elobal 3epository @eceipts worth :S 22 million.

ii. %he (ompany was awarded the (S@ Bxcellence 4ward '2&2 by the 4ssociated

(hambers of (ommerce and "ndustry.

iii. %he (ompany was awarded the 6BFBA" Ereen 5usiness

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Material Management

"n '221F'2&2, the ;ire 3ivision in "ndia restructured itself by relocating its operations

from Mumbai to %arapur and to "ndian Steel ! ;ire products (o. Damshedpur. %he

3ivision was the first to brand its galvanized wires for the retail segment under the %4%4

;iron brand.

%he ;ire 3ivision has been the sole supplier of preFstressed concrete strands used in the

construction of precast segments for the *. ms, /FlaneF catrleFstayed 5andraF;orli Sea

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Material Management

(oating Machines.

Bngraving Machines.

Magnesia (arbon

@are Barth Magnet.

Stainless Steel ;ire.

Straightening Machines.

Vinc ingots.

Other (opper.

Other ingots.

Other Square 5illets.

TOP &RAND4 O( TATA 4TEE@ @IMITED:

%he %ata Steel Eroup8s 5rand building endeavours have always been directed at building

assurance, reliability and superior product quality in segment. Outstanding performance

 by the (ompany8s different divisions have surpassed their own brand standards and

created higher quality parameters for each other.

"n an attempt to 8discommodities8 steel, the (ompany has introduced several branded steel

 products to meet growing maret demands. Some of the 5rands produced and mareted

 by the different 3ivisions and 5usiness :nits of %ata Steel areG

Ealvanor%M

%ata 4grico

%ata 5earings

%ata Pipes

%ata Shatee

%ata Steelium

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Material Management

%ata Structura

%ata %iscon

%ata ;iron

OER4EA4 AC!UI4ITION O( TATA 4TEE@ @IMITED:

Cor"s

• On '2 October '22-, %"S(O signed a deal with 4ngloF3utch company, (orus

• On &1 +ovember '22-, the 5razilian steel company (ompanhia Siderurgica +acional

#(S+$ launched a counter offer for (orus at * pence per share, valuing it at W*.1 billion

• On && 3ecember '22-, %ata preFemptively upped the offer to 22 pence, which was

within hours trumped by (S+8s offer of & pence per share, valuing the deal at W*.1

 billion. %he (orus board promptly recommended both the revised offers to its

shareholders.

OTHER AC!U4ITION:

• "n 4ugust '22*, %ata Steel entered into definitive agreements with Singapore based

 +atSteel

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Material Management

DS; steel

S4"< A"V4E steel etc.

Dindal steel.

%M% steel.

CONTROER4I4:

%he company is facing increasing criticism. %hat the drive for growth and profits is

completely overshadowing itLs once famed philanthropy, and causing lasting social and

environmental damage at various locations. "n response, %ata cites its programs for 

environment and resource conservation, including reduction in greenhouse emission, raw

materials and water consumption. %he company has increased waste reFuse and reF

cycling, and reclaims land at its captive mines and collieries through forestation. %ata

Steel8s chief environment and occupational health, says, 7Our capital investment in

 pollutionFabatement solutions was in the Aicinity of * billion in '22)F2*7

TRADE MAR>4 O( TATA 4TEE@ @TMITED:

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Material Management

CAPTUTION O( TATA 4TEE@ @IMITED:

  Some of the (apitation of %ata steel limited and its brands (apitation are as followsG

&RAND CAPTUTION CAPTUTION

@OO O( COMPAN7 TEE

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Material Management

TATA TI4CON %@:S%BB3 S%BB< 6O@ RO:@ ?OMB

TATA 8IRON 54++3?B @"S?%O+ B %44@ 

ACHIEEMENT4 AND A8ARD4 O( TATA 4TEE@ @IMITED:

  Some of the ey achievementsCawards received in 6inancial Rear '2&2 are as followsG

&. %he (ompany was awarded the 8Bconomic %imes (ompany of the Rear 4ward8.

'. %he (ompany was conferred the "ndian Most 4dmired nowledge Bnterprise award for

sustained excellence in field of nowledge management.

). "n '2&2, one of the (ompany8s employees was awarded the Prime Minister8s Shram

awards for years '22 to '22.

*. %ubes 3ivision of the (ompany won the &-th D@3 0A 4ward.

. (orporate Social @esponsibility Bxcellence 4ward to the (ompany by 4ssociated

(hambers of (ommerce ! "ndustry of "ndia.

 ENERA@ IN(ORMATION A&OUT TATA 4TEE@ @IMITED:

@OO %4%4 S%BB<

T#%e Public

Tra5e5 as 5SBG 22*2

5SB SB+SBX (onstituent

In5"str# Steel

(o"n5e5 &12

(o"n5er 4? 3orab>i %ata

Hea5 !"arters Mumbai, Maharashtra State "ndia

Area ser+e5 ;orld wide

Page 2

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Material Management

>e# %eo%le 5 Muthuraman

Aice (hairman

?ermant M. +erurar #M3$

Pro5"cts Steel, 6lat Steel Products,

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Material Management

.$1 Title Of T

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Material Management

*. %o analyses the Material management performance through turn over 

ratio.

). %o mae suggestions if there are any problems with regard to Material

management.

*. %o identify the critical arias of Material management in the company.

. %o analyses the defects in Material management.

-. %o identify the defects in Material management.

. %o now the Material techniques in Material management.

/. %o introduce the modern methods in Material management.

1. %o study the Material management system in the company.

&2. %o identify the modern Material system.

&&. %o identify the existing Material system.

.$/ Metect both primary and secondary data being use.

Primar# 5ata:

Page )

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Material Management

6ace to face Material

Observation

4econ5ar# 5ata:

&. Official records

'. 3ocuments and employees handboos

). Manuals and files of the company

*. company magazines and newspapers

.$2 @imitation of t

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Material Management

(hapter )G @eview

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Material Management

INTRODUCTION:-4nalysis and "nterpretation is the process of identifying strength and weaness of a firm

 by properly establishing relationship between two items. "t is useful for decision maing

and there are number of methods ! techniques which are generally used in analysis of 

financial services.%he analysis and interpretation of data is the most silled tas in the research process.

Meaning of Anal#sis:-4nalysis is the process by which the whole body of gathered data facts, figures and ideas

is converted into meaningful and useable information. %he data is placed on its

appropriate setting and consistent relationship drawing general inferences. 6ollowing is the procedure involved in the integrated operations of analysis of dataG

&. (lassification of data.'. %abulation of data.). Statistical analysis of data.

Meaning of Inter%retation:-"nterpretation refers to the relationship with the collected data. "tLs the mechanism

through which the factor that appears to explain what has been observed by researcher 

during the course of a research.

TA&@E NO: /$1

TA&@E 4HO8IN INENTOR7 TO NET 4A@E4

INENTOR7 TO NET 4A@E4 9 Inventory

 Net Sales∗100

Page -

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Material Management

  Rs$ In @a

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Material Management

RAPH NO : /$1

RAPH 4HO8IN INENTOR7 TO NET 4A@E4

2011-2012 2012-2013 2013-2014 2014-2015

40.00%

42.00%

44.00%

46.00%

48.00%

50.00%

52.00%

54.00%

44.89%

46.36%

52.28%   52.56%

INTERPRETATION:

6rom the above graph it can be inferred that due to the increase in the demand for ;ire

 products their has been slight increase in the level of inventory to sales in the year '2&*F

'2& when compared to previous years.

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Material Management

TA&@E NO: /$,

TA&@E 4HO8IN INENTOR7 TO CURRENT A44ET4 RATIO

INENTOR7 RATIO 9 Inventory

Current Asset ∗100

 

Rs$ in @a

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Material Management

2011-2012 2012-2013 2013-2014 2014-2015

45

46

47

48

49

50

51

49.18

47.43

50.47

46.92

INTERPRETATION:-

6rom the above graph it can be inferred that there is a more increase in the value of raw

materials due to more purchases during the year '2&*F'2&. So why there is more

increase in the values of current assets and inventory during the year '2&*F'2& when

compared to other years.

 

TA&@E NO:/$

TA&@E 4HO8IN INENTOR7 TO TOTA@ A44ET4 RATIO

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Material Management

  INENTOR7 TO TOTA@ A44ET4 RATIO 9 Inventory

Total Inventory∗100

  Rs$in @a

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Material Management

2011-2012 2012-2013 2013-2014 2014-2015

45

46

47

48

49

50

51

49.18

47.43

50.47

46.92

INTERPRETATION:-

  6rom the above graph it can be inferred that there is increase in bothinventory and the total assets during the year '2&*F'2& and percentage wise it is

decreased when compared to previous years, because there is increase in both the

inventory and the total assets during the year '2&*F'2&.

 

TA&@E NO:/$.

TA&@E 4HO8IN INENTOR7 TO 8OR>IN CAPITA@

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Material Management

INENTOR7 TO 8OR>IN CAPITA@ RATIO 9 Inventory

Working Capital∗100

  Rs$ In @aIN

CAPITA@

PERCENTAE

?

,011-,01, ,.0$ -1.$, -1$2

,01,-,01 ,$2 /00$ 0$

,01-,01. 131$,3 ..,1$/ 0$,

,01.-,01/ ,32$1 /03$2 0$/

ANA@74I4:-

6rom the above table it is clear that there is a negative value in the woring

capital ratio during the year '2&&F'2&' due to the increase in the current

liabilitiesH@s -)1.'

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Material Management

2011-2012 2012-2013 2013-2014 2014-2015

-2

-1.5

-1

-0.5

0

0.5

1

-1.83

0.76   0.72 0.65

INTERPRETATION:

6rom the above graph it can be inferred that due to increase in the current

liabilities value, due to this slight changes in the level of inventory of a

company during the year '2&*F'2&, so why there is a slight variations in the

woring capital.

TA&@E NO:/$/

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Material Management

TA&@E 4HO8IN ANNUA@ CON4UMPTION O( RA8

MATERIA@4

  Rs$in @aH4?

,011-,01, ,1,$02

,01,-,01 0,$2

,01-,01. 2,.$

,01.-,01/ 13$/

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Material Management

.

2011-2012 2012-2013 2013-2014 2014-2015

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2123.08

3072.8

3824.67

3139.53

INTERPRETATION:-

  6rom the above graph it can be inferred that there is more annual

consumption of raw materials in the year '2&)F'2&*, may be due to a more productionand more demand to a product, and there is a increase in the consumption of raw

materials year by year.

TA&@E NO:/$

TA&@E 4HO8IN THE 4TOC> O( 8OR> IN PRORE44$

Page --

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Material Management

ANA@74I4GF

  %he above table indicates

the stoc of wor in progress,

the stoc has been increased in

the ;"P from the year on year,

there is a more increase in

the year '2&*F'2&, i.e.. @s. &1-./- O( 8OR> IN PRORE44

Page -

7EAR 8OR> IN PROER44IN

@A>H4?

,011-,01, /2$33

,01,-,01 11$/

,01-,01. 11$.,

,01.-,01/ 13$2

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Material Management

2011-2012 2012-2013 2013-2014 2014-2015

0

50

100

150

200

250

58.99

113.56

161.42

196.86

INTERPRETATION:-

  6rom the above graph it can be inferred that during the year '2&*F

'2& there is more increase in the value, because the orders during this year is more when

compared to other years.

TA&@E NO: /$

TA&@E 4HO8IN INENTOR7 CONER4ION PERIOD$

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Material Management

  In+entor# con+ersion %erio5 9 No of days∈a year

Stock turnover ratio  .

.

ANA@74I4:-

  6rom the above table it is clear that the stoc turnover ratio has been

decreased from '2&*F'2&, when compared to other years, but there is a increase in the

inventory conversion period during the year '2&*F'2&.

RAPH NO: /$

RAPH 4HO8IN INENTOR7 CONER4ION PERIOD$

Page -1

7EAR NO O( DA74

IN A 7EAR 

4TOC> 

TURNOER 

RATIO

INENTOR7

CONER4ION

PERIOD DA74?

,011-,01, / ,$13 1

,01,-,01 / ,$,/ 1,

,01-,01. / ,$02 1/

,01.-,01/ / 1$3 123

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Material Management

2011-2012 2012-2013 2013-2014 2014-2015

1.7

1.8

1.9

2

2.1

2.2

2.3

2.19

2.25

2.08

1.93

  INTERPRETATION:F

  6rom the above graph it can be inferred that there is a

decrease in the stoc turnover ratio due to increase in the average stoc and the cost of 

goods sold during the year '2&*F'2&, %here is a increase in the inventory conversion

 period due to decrease in the stoc turnover ratio during the year '2&*F'2&.

TA&@E NO:/$2

TA&@E 4HO8IN AERAE 4TOC> O( RA8 MATERIA@$

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Material Management

A+erage stoc of ra; material 9

Opening Stock of Raw material+Closing Stock of Raw material

2  

Rs$in @a O(

RA8

MATERIA@

,011-,01, 0,.$/. 1/$ 020$1/

,01,-,01 1/$ 3$0 .0,$.

,01-,01. 3$0 .02.$3 2$32

,01.-,01/ /2$/ /2$/ /2$/

ANA@74I4:-

  6rom the above table it can be analyzed that the average stoc of raw

material in the year '2&&F'2&' was )2/2.&, '2&'F'2&) was )*2'.*, '2&)F'2&* was

)/-.1/ and in the year '2&*F'2& was )/).-.%his shows the increasing trend of 

average stoc of raw material.

RAPH NO:/$2

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Material Management

RAPH 4HO8IN AERAE 4TOC> O( RA8 MATERIA@

2011-2012 2012-2013 2013-2014 2014-20150

500

1000

1500

2000

2500

3000

3500

4000

4500

3080.153402.4

3876.98

3583.56

INTERPRETATION:

6rom the above graph it can inferred that there is no drastic changes in the average stoc 

when compare to previous year '2&)F'2&*. %he company has maintained consistency in

 purchase of raw material during the year '2&*F'2&.

TA&@E NO: /$3

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Material Management

TA&@E 4HO8IN CURRENT RATIO

  Rs$ In @a

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Material Management

RAPH 4HO8IN CURRENT RATIO

2011-2012 2012-2013 2013-2014 2014-20150

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

0.82

1.41.59

1.74

INTERPRETATION:

6rom the above graph it can be inferred that there is a slight increase in the year '2&*F

'2&, which indicates good liquidity position of the business in the year '2&*F'2&.

TA&@E NO:/$10

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Material Management

TA&@E 4HO8IN DE&TORQ4 TURNOER RATIO

DrQs t"rno+er ratio9 Net annualsales

 AverageDebtors  

A+erage DrQs 9O pening Debtors+Closing Debtors

2

 

Rs$ In @a

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Material Management

RAPH 4HO8IN DRQ4 TURNOER RATIO

2011-2012 2012-2013 2013-2014 2014-2015

0

0.5

1

1.5

2

2.5

2.162.06 2.02

1.68

INTERPRETATION:

6rom the above graph it can be inferred that due to lower ratio in the year '2&*F'2&, the

management has to give more interest towards the collection of the money in a better 

way.

TA&@E NO:/$11

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Material Management

TA&@E 4HO8IN 4TOC> TURNOER RATIO

4toc t"rno+er ratio 9Sales

 Averageinventory

A+erage in+entor# 9Opening i nventory+Closing inventory

2  

Rs$ in @a 

TURNOER 

RATIO

,011-,01, /.2,$11 ,.32$2 ,$13

,01,-,01 /$. ,/$,2 ,$,/

,01-,01. 10$2, ,3,$/. ,$02

,01.-,01/ ,/$/, ,./ 1$3

ANA@74I4:

6rom the above table it is observed that there is a increase in the 4verage inventory and

the Sales during the year '2&*F'2&, when compared to other previous years, but the

stoc turnover ratio has been decreased in the year '2&*F'2&.

RAPH NO : /$11

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Material Management

RAPH 4HO8IN 4TOC> TURNOER RATIO

2011-2012 2012-2013 2013-2014 2014-20151.7

1.8

1.9

2

2.1

2.2

2.3

2.19

2.25

2.08

1.93

INTERPRETATION:

6rom the above graph it can be inferred that the company has more inventory by the

anticipation of the sales which have not occurred in the year '2&*F'2&, so the stoc 

turnover ratio has been decreased during these year.

TA&@E NO:/$1,

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Material Management

TA&@E 4HO8IN CURRENT A44ET TURNOER RATIO

  Rs$ In @a

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Material Management

TA&@E 4HO8IN CURRENT A44ET TURNOER RATIO

2011-2012 2012-2013 2013-2014 2014-2015

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

0.87

0.470.52 0.52

INTERPRETATION:

6rom the above graph it can be inferred that there is no much impact on the business ,

 because the ratio is constant during the year '2&)F'2&*, '2&*F'2& which implies the

company has made more product sales with minimum investments in the current assets

during these years.

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Material Management

TA&@E NO : /$1

TA&@E 4HO8IN AERAE CO@@ECTION PERIOD

  A+erage %erio59 No of working days∈a year

 Debtors turnover ratio  

7EAR 

NO O(

8OR>IN

DA74

DRQ4

TURNOER 

RATIO

AERAE

CO@@ECTION

PERIOD

,011-,01, / ,$1 13

,01,-,01 / ,$0 1

,01-,01. / ,$0, 121

,01.-,01/ / 1$2 ,1

ANA@74I4:  

%he above table depicts the average collection period due to changes in the debtor 

turnover ratio the collection period has been increased. %he 3r,s turnover ratio has been

decreased year by year due to increase in the net annual sales and the average 3rLs.

Page /&

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Material Management

RAPH NO : /$1

RAPH 4HO8IN AERAE CO@@ECTION PERIOD

2011-2012 2012-2013 2013-2014 2014-2015

0

50

100

150

200

250

2.16 2.06   2.02   1.68

169  177   181

217

INTERPRETATION:

6rom the above graph it can be inferred that the company has not followed the stringent

collection procedure so the collection period has been increased in the year '2&*F'2&.

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Material Management

TA&@E NO:/$1.

TA&@E 4HO8IN INENTOR7 TURNOER RATIO

INENTOR7 TURNOER RATIO¿

Cost of goods sold

 Average inventory  

7EAR CO4T O(

OOD4 4O@D

AERAE

INENTOR7

INENTOR7

TURNOER 

RATIO

,011-,01, 1..$ ,.32$2 1$,

,01,-,01 /3$03 ,/$,2 1$3

,01-,01. 20$3 ,3,$/. 1$,3

,01.-,01/ 0$23 ,./ 1$1,

ANA@74I4:

6rom the above table it is clear that there is a fluctuations in the values during the year 

'2&)F'2&* and in the year '2&*F'2& when compare other previous years.

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Material Management

RAPH NO: /$1.

RAPH 4HO8IN INENTOR7 TURNOER RATIO

2011-2012 2012-2013 2013-2014 2014-2015

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.26

1.391.29

1.12

INTERPRETATION:

6rom the above graph it is inferred that there is a decrease in the ratio due to reduction in

the demand and also the high inventory in the year '2&*F'2&.

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Material Management

TA&@E NO : /$1/

TA&@E 4HO8IN 4TOC> TURNOER IN DA74

4TOC> TURNOER IN DA74 9 AERAE 4TOC> / DA74F

CO4T O( OOD4 4O@D

  Rs$ In @a

/ DA74

CO4T O(

OOD4 4O@D

4TOC> 

TURNOER IN

DA74

,011-,01, ,.32$2/ 1..$ ,30

,01,-,01 ,/$,2/ /3$03 ,,

,01-,01. ,3,$/./ 20$3 ,21

,01.-,01/ ,.// 0$23 ,

ANA@74I4:

6rom the above table it shows that the average stoc of the company has been increased

due to the increase in the production of the products and the addition of some of the

 products during the year '2&*F'2&.

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Material Management

RAPH NO:/$1/

RAPH 4HO8IN 4TOC> TURNOER IN DA74

0

500

1000

1500

2000

2500

3000

3500

4000

3144.67

3579.093806.93

3630.89

290   262   281   326

COST OF GOODS

SOD

STOC! T"#$O '$

D()S

INTERPRETATION:

6rom the above graph it can be inferred that the company holds the inventory for )'-

days during the year '2&*F'2&, because of the decrease in the sales or demand to the

 products during this year.

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Material Management

CHAPTER-

(INDIN4 4UE4TION4 AND CONC@U4ION

(INDIN4

  %he percentage of the "nventory to +et sales has been increased in the year '2&*F

'2& when compared to other years.

 

3ue to increase in the "nventory and the (urrent assets the inventory to current

ratio has been increased in the year '2&*F'2&. %he percentage o the woring capital has been increased from F&./) to , - during

the year '2&*F '2&. %he net sales of the company as increased in the year '2&* K '2&, as a result of 

this inventory to net sales as increased to '.-=. %he increase in the total assets in the year '2&*F'2& the percentage of the

inventory to total assets has been decreased to *-.1'= in the year '2&*F'2&. %he annual consumption of the raw materials has been increased to @s. ),)'*.-

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Material Management

4UE4TION4

5y going through all the procedures followed in %ata Steel or role in the success of the

organization. 4s a whole the firm is following a good purchase procedure over different

materials, the company will be purchasing only certain materials from the outside of the

company for the production purposes. 5ut there are certain content in the existing

"nventory management system. ?ence on the basis of the study the following suggestions

can be given. " hope that suggestions will be taen by the organization in a right spirit and

implemented.

  It is fo"n5 t

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Material Management

  Re5"ction in @ea5 time

%he company must try to minimize the lead time at the time of production, so that

the company can reduce the production time so the company can meet thecustomers expectations. "t is suggested that the company should be adopt some

new management systems in order to communicate vendors in a short span of 

time their by reducing the lead time. ?ence the organization can compete at the

"nternational maret and have a better future.

CONC@U4ION

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Material Management

"nventory management is one of the basic important functions of every business. 4n

average manufacturing organization in "ndia has more than -2= of its current asset

invested in inventories. %herefore, by following proper efficient inventory management

 principles, the company can certainly reduce the cost of inventory and can improve its

 bottom line and thereby, becoming competitive, which in turn will improve its maret

share.

%he research topic "nventory management, has a greater implications on "ndian industry,

from the analysis of inventory management in %ata Steel

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Material Management

&I&I@ORAPH7

&. .4shwathappa and .Shridar 5hat F Production and Operations

Management, ?imalaya Publishing ?ouse.'. %4%4 S%BB<

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Material Management

Sources Of 6unds

%otal Share (apital /2 /2 /2 /2

Bquity Share (apital /2 /2 /2 /2

Preference Share (apital 2 2 2 2

@eserves -,1).'* -,'').-1 ,*'.'& *,1''.@evaluation @eserves 2 2 2 2

 +et worth ,2&.'* -,)2).-1 ,-''.'& ,22'.

Secured

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Material Management

Other "ncome *'/.* -21.1/ /.*1 )'-.&& '*

Stoc 4d>ustments F*.)) '/ /1.1 ./ '/

%otal "ncome -,--.-- -,11&./2 -,**).2/ ,/&)./2 ,*-

Bxpenditure

@aw Materials ),/).- *,2/*.1) ),--1.2) ),&). ),2'

Power ! 6uel (ost ).) )*.&) '-.1 )2.* 'Bmployee (ost &,2)2.*) &,&&2.1 &,2/&.') &,2*&./- &,22

Other Manufacturing Bxpenses 2 2 2 &.2 &

Selling and 4dmin Bxpenses 2 2 2 '-2./* '*

Miscellaneous Bxpenses -/.' 21.*1 *-./' -&.') -'

Preoperative Bxp (apitalised 2 2 2 F2.&1 F2

%otal Bxpenses ,)).2/ ,)1.)* ,'*'.1/ *,*.2& *,)

Operating Profit /1&.&& -*'.*/ -&*.-& 1*2.-/ /*

P53"% &,)&1./ &,''.*- &,'22.&2 &,'--.1 &,2

"nterest ).* 2./ 2.- &2.1 1

P53% &,)&-.&/ &,'&.-/ &,&11.2 &,'-.22 &,2

3epreciation &*'.& &)2.& &'2./ &''.2* &&

Profit 5efore %ax &,&*.2/ &,&'2.1 &,2/.2 &,&)).1- 1-

BxtraFordinary items 2.- F-.) F)./- ''.-* /*

P5% #Post BxtraFord "tems$ &,&*.) &,&&*.-2 &,2*./* &,&-.-2 &,2*

%ax '*).&' ''*.- '**.1 '1.21 )'

@eported +et Profit 1)&.-' //1./) /'1.1 /-&.* '

%otal Aalue 4ddition &,).& &,-*.*& &,).1* &,*&&.'* &,)

Preference 3ividend 2 2 2 2

Bquity 3ividend &/-.* &/.* &--.* &'./ &

(orporate 3ividend %ax )&.-/ '1.1 '-.11 '/.'' '

Per share data #annualised$Shares in issue #lahs$ /22 /22 /22 /22 /

Barning Per Share #@s$ &&-.* &&&.') &2).* &2.-/ 12

Bquity 3ividend #=$ ')) '') '2/ '&- &

5oo Aalue #@s$ /.& /.1- 2'./ -'.)' *