SANJAY M.

BELDAR

CONTENTS

PARTICULARS PAGE NO.

 GENERAL INFORMATION 2
 FINANCIAL DEPARTMENT OF COMPANY 12
 EXECUTIVE SUMMARY 13
 INTRODUCTION OF ABC ANALYSIS 14
 STORES MANAGEMENT AT LION TAPES PVT. LTD. 25
 OBJECECTIVE OF RESEARCH 36
 LIMITATION OF RESEARCH 37
o RESEARCH METHODOLOGY 38
o TYPES OF RESEARCH 39
o RECHERCH DESIGN 39
o RESERCH INSTRUMENT 40
o SOURCES OF DATA 41
o DATA COLLECTION & SAMPLING TECHNIQUE 42
 DATA ANALYSIS 43
 OBSERVATION 47
 CONCLUSION 48
 SUGGECTION 49
 BIBLIGRAPHY 50

INTRODUCTION
LION TAPES Pvt. Ltd. (ISO 9001-2000) is one of the leading and
pioneer company producing elastic tapes. It is situated at GIDC Industrial
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Estate, BHAVNAGAR. As its constitution show, it’s a private limited
company.
LION TAPES Pvt. Ltd. Is the only company in Saurashtra, which
produce elastic Tapes. LION TAPES Pvt. Ltd. produces different types of
varieties of elastic tapes. Elastic tapes are utilized in producing other
products like inner wear garments, sports and surgical and surgical cloth
accessories, brassieres, etc. It has earned good name in the market of
elastic tapes for its quality.

The plant of the company is spread over one acres of land. LION
TAPES is satisfied with all the important facilities for running the business
like transportation, warehouse, electricity, communication, etc.
The company has never look behind after once it was started in spite
of getting unavailable market in India. The company also exports its
products in UAE and Africa. This shows well condition of the company. This
company has recently contacts, with new companies for supply its
products.

COMPANY PROFILE
NAME OF THE UNIT
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 SANJAY M. BELDAR
LION TAPES Pvt. Ltd.
LOACTION
Plot no. 283/A,
G.I.D.C. Chitra,
Bhavnagar.
PHILOSOPHY
“Promise only what can be delivered; deliver what is promised”
TYPE OF INDUSTRY
Medium scale industry
PRODUCTS
• Draw string elastic

• Button hole elastic

• Simple elastic

• Love brands elastic

• Woven elastic

• Knitted elastic

• Printed elastic

BANKERS
• STATE BANK OF INDIA

COMPETITOR
• SPYKA ELASTIC Pvt. Ltd. AT PUNE, STATE: MAHARASTRA

Exports :
SARA LEE : Ladies, men’s, girl’s & boy’s inner garments
Embee garment : Ladies, men’s inner wear
MULTI-GROUP : Branded ladies & girl’s inner wear

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Local :

NEW LOOK : Brassieres

BODY CARE : Ladies & Children inner wear
GROVER SONS : Ladies & Children inner wear
RUPA : Ladies inner garments
OMTEX : Sports and surgical accessories
State man fashion : ladies & gents garments
Defiance knit ting’s : ladies & gents garments
Page Appeals : ladies & gents garments

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HISTORY & DEVELOPMENT OF THE UNIT

HISTORY OF THE UNIT

LION TAPES has a remarkable past. Mr. D.V. Modi is considered as

the pioneer of the company. In the year 1985-86, Mr. D.V. Modi started
elastic tapes producing partnership firm with Mr. R.D. Mehta. They
established their manufacturing plant at GIDC Industrial Estate,
BHAVNAGAR with a bare investment of Rs. 0.3 million but with long-lasting
visions of quality, core capabilities, realization & focused innovativeness. At
that time, the firm was producing annually 2.7 million meters of elastic
tapes. The sale of the company was up to Rs. 15 lacks. This is considered
as an excellent initiate.

DEVELOPMENT OF THE UNIT

Due to the constant growth of the partnership business, it was

needed to revolutionize. Therefore, the partners of the firm decided to
transfer the partnership firm into company and they transferred it into the
company in 1995-96. It was start to recognize as LION TAPES Pvt. Ltd.
However, this was only start of greater things.

Once the company established, it had started producing more than

150 types of elastic tapes. It has grown into three companies commanding
a combined annual production of over 100 million meters, and
encompassing the nitrite filed of elastics & tapes. Due to this development,
it has grown manifold into being one of the largest producers of elastics &
fasteners in less than three decades.

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SIZE & FORM OF ORGANIZATION

The size of the industry in India depends upon various factors like
total investment, total workers employed, etc. The total investment of this
company is more than 10 crores and total employees except management
and office staff employed are 150. So the LION TAPES Pvt. Ltd. Is a small
scale industry.

The company has seen shareholders. These all shareholders are

equity shareholders. They are described as below;

• Mr. S.D. Modi

• Mr. R.D. Mehta

• Mr. M.A. Mehta

• Mr. B.D. Modi

• Mr. N.A. Mehta

• Mr. B.M. Mehta

The organization form is decided on the basis of internal relationship

between the authority and responsibility concerned departments.

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TIME KEEPING SYSTEM

The company has a full fledged time keeping system. At the security
office near the company gate, all the staff members has to sign in the
attendance register in morning at 9.00 a.m. While all the workers have to
sign in the attendance register at the beginning of every shift. The security
officer records the time. The register is passed over the manager. The
timings of both the staff members and the workers are as below:

STAFF

Working Hours 9 a.m. to 5 p.m.

Lunch Break 12 noon to 12.30 p.m.

WORKERS
First Shift
7:30 a.m. to 12 noon
12 noon to 1:00 p.m. Lunch time
Second Shift
1:00p.m. to 8:30 p.m.
8:30 p.m. to 9:30 p.m. Dinner time
9:30 p.m. to 12 mid night

The worker are compulsorily required the time in the register because
they are paid on the basis of time they have worked. If any worker wants
holiday, he must have to take the permission of the manager. As the
company keeps full fledged time keeping system, there is no situation arise
to do overtime.

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EMPLOYEES SERVICE
“Employees are the hands of the business.”

Employees play an important role in the success of any business. It is

therefore necessary for the management to give much attention towards
the employees and to provide better services to the employees. If the
employees are given more and better services. Their efficiency & morale
towards the work will be naturally high.
It is said that “if you give proper attention on employees, the
employees will give you fully attention in your business and profitability of
business will increase.”

LION TAPES Pvt. Ltd. The following services to its workers.

Safety facilities i.e. first aid and medical services

• E.S.I.

• Newspapers and magazines

• Withdrawal facility

• Gratuity to workers

• Provident Fund

• Their children’s educational facilities

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MANUFACTURING PROCESS
LION TAPES Pvt. Ltd. Is producing elastic tapes. The company use
different type of ‘plastic yarns’ or producing different type of elastic tapes.
The company produce product as the order received. The material passes
through from the following stages

WRAPING
First of all the raw materials passed through the warping machine.
Plastic yarns are wrapped at this stage. This is the starting for producing
elastic tapes.

RUBBER COERING
Once the product is passed from the warping machine, it goes to
rubber covering machine. Now the yarns are covered through rubber i.e. at
this stage semi-finished product is ready.

WEAVING
Now, the semi-finished product passes from the weaving machine.
The product got weaved at this stage. In this stage , the product is ready
that is available as ready tapes.

CHECKING AND MEASURING

Here, the product is checked by the production in charge. They check
the quality of the product and also check wastages made during the
process. After checking , next task is to measure the product. Elastic apes
are measured in the form of meters.

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WINDING
After measuring, the product is winding. Elastic tapes are winding for
the purpose of making their packing

PACKING
Product is packed by the packing department. And store in the
warehouse till the product is not sold
Thus, this is the manufacturing process starts from warping and ends at
packing. The ready products by packing are firstly stored into warehouse
and then according to order, they are sold.

ORGANIZATION OF PERSONAL DEPARTMENT

General
Manager

Personal
Manager

Production Security

Production
Incharge Security Guards

Watchman
Supervisors Fitters

Clerks

Workers Peons

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The whole department is handled by general manager. The personnel

manager work under the general manager then production In charge &
security guard work under the personnel manager where supervisor,
fitters clerk, are working under the production in charge. Worker and
peon work under the clerk.

ORGANISATION OF MARKETING DEPARTMENT

As the product of LION TAPES is not producing the consumer

product, its marketing department is not much complicated. The company
has set its marketing department as its requirements. It is involved so such
persons that can convince to industrial customers.

General Manager

Marketing Manger

Sr. Assistant

Sales Sales Sales Sales

Executive Executive Executive Executive

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Thus, in this company, marketing department follows line authority and
responsibility. So it’s natural that the co-ordination and communication
function are performed effectively. Packing of the product also remains
under the eye of marketing department.

ORGANISATION OF FINANCE DEPRATMENT

LION TAPES has structured an effective Finance department depicted as

below:

General Manager

Finance Manger

Chief Accountant

Computer Operator Sr. Clerks

Assistant Jr. Clerks

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Peon Peon

The whole department is handled by general manager. The Finance

manager works under the general manager then Chief Accountant work
under the Finance manager where computer operator, assistance, clerk
are working under the chief accountant. Worker and peon work under
the clerk

EXECUTIVE SUMMARY

Lion tapes ltd manufacture elastic tapes and other likely items in
Bhavnagar and exports outside the country. My project is about the
study of ABC Analysis. It also includes the general information of the
company.

The project is broadly divided into two parts:-

1) The general information of the organization.

2) Research and meaning of ABC Analysis.

The general information of the company includes the history and

development of the company, and also various detail information about
the all the three departments that is finance department, human resource
department and marketing departing.
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Proper control of material or inventory can make a substantial

contribution to the efficiency of a business. The success of a business
concern largely depends upon efficient purchasing. Storage,
consumption and accounting, the uncontrolled inventories are dangerous
and at times it is called as the grave yard of business. Hence, inventory
control system should be designed to ensure the provision of the
required quality of material of the required quality at the required time to
meet the needs of production and sales, while at the same time keeping
the investment in them at a minimum. The research on the topic of ABC
analysis includes the research methodology and design.

INTRODUCATION OF ABC ANALYSIS

 INTRODUCTION

Proper control of material or inventory can make a substantial

contribution to the efficiency of a business. The success of a business
concern largely depends upon efficient purchasing. Storage,
consumption and accounting, the uncontrolled inventories are dangerous
and at times it is called as the grave yard of business. Hence, inventory
control system should be designed to ensure the provision of the
required quality of material of the required quality at the required time to
meet the needs of production and sales, while at the same time keeping
the investment in them at a minimum.

 INVENTORY CONTROL TECHNIQUES

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In most manufacturing concerns inventories are controlled
though the following techniques to tools.

1. Economic Order Quantity.

2. Determination Stock Levels.
3. Inventory Turnover Ratio.
4. Input-output Ratio Analysis.
5. ABC Analysis.
6. Perpetual Inventory and Continuous Stock taking.
7. Value Analysis.

The scientific inventory management helps the purchase

department to determine when to buy and how much to buy. The
problem before the management is to balance the following
opposing costs.

 ABC ANALYSIS

Different types of analysis each having its own specific advantages and
purposes, help in bringing a practical solution to the control of Inventory
.The most important of all such analysis is ABC analysis. This analysis
is based on the principle of “VITAL FEW TRIVIAL MANY “and a
higher degree of attention is focused on VITAL FEW, which affect the
result significantly. The other are

F.S.N (Fast Slow, Nonmoving items analysis

H.M.L. (High Medium, Low cost analysis
S.D.E. (scarce, Difficult, Easily Available) analysis
V.E.D. (Vital Essential, Desirable) Analysis

An effective inventory control system should classify inventories

according to value so that the most valuable items may be paid greater

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and due attention regarding their safety and supply items. Both
purchased and manufactured depending upon their importance and
subject each class and group of item to control commensurate with their
importance. This is the principle. This is the principle of Control by
Importance and Exception (C.I.E.) of selective control as applied to
inventories and the technique of grouping is termed as ABC. Analysis
or classification which is said to be “always better control”. As the items
are classified on the basis of importance of their relative value, this
approach is also known as proportional value analysis (AVA).

 PROCEDURE FOR IMPLEMENTING THE ABC TECHNIQUE

IS AS FOLLOWS.

1. Classify the items of inventories.

2. Determine the expected used in units over a given period of time.
3. Determin3e the total cost of each item by multiplying the expected
units by its unit price.
4. Rank the items in accordance with total cost, giving first rank to
the item with highest total cost and so on.
5. Calculate percentage of number of unit of each item to total units
of all items and the percentage of total cost of each item to total
cost of all items

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6. Combine items on the basis of their relative value to form three
categories A, B, and C

Class Percentage of Item Percentage of Cost

A 13 % 80 %
B 32 % 17 %
C 54 % 3%

The above mentioned example is clearly explained by the graph

INTERPRETATION:-

From the graphical analysis: it may be found that about 13% of items
cost more than 80% of the cost on inventory. This is grouped as A items
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which from the most important items the control point of view. B items
forming 32% of total items constitute 17% of the total on inventory.
These are of secondary importance and lie in between ‘A’ and ‘C’ items
which are the numerous inexpensive items, i.e. about 54% of the items
contributing to only 3% of the total cost of material.

 CONTROL FOR A,B & C ITEMS

Now we discuss the purchasing and stocking policies recommended for
the different classes of item A, B, & C. all these emanate from two basic
requirements viz., (1) to keep the capital tied up in the inventories as low
as is practicable, and (2) to make sure that the materials would be
available when required for consumption.

 Policies for A items ( about 13% items costing 80% in value )

1. Since these items account for over 80% percent of the value, they
should be ordered more frequently to reduce the capital locked up
at a time in inventories.

2. These would be many items for which the consumption varies

considerably from time to time during a year. For such items the
expected future consumption should be estimated in advance and
they should then be procured on a planned basis, so that only the

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required quantities arrive a little before they are required for
consumption. Of course, a small extra stock (buffer) would be
carried throughout to meet any eventualities. It may be pointed out
here that the advance estimation of future consumption can be
made with the help of periodic production schedules and master
schedules. In the absence of proper production schedule there is
not reliable way of estimating what quantities would be rather
difficult. Thus, it may be emphasized that a proper inventory
control basically calls for a good production planning system.

3. Annul or 6-monthly contracts with schedule deliveries or deliveries

within a specified period of order are welcome for A items.

4. Develop and revise more often ordering quantities, reorder points

and safety stock for items not covered by long term contracts
mentioned in(3).

5. Since these items are to be stocked as less as possible, purchasing

department should make maximum efforts to expedite the delivery
of these items.

6. As far as possible Two or more suppliers should be sought for each

item so that the dependency on one supplier is an avoided. Due to
strike, fire, accidents,. Or any other eventualities if one supplier
fails to supply, the other suppliers fan be approached.

7. Purchase of A items should be looked into by the top execution in

the purchasing department to ensure prompt service from
suppliers.

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8. Stock and issue record should be meticulously maintained in the
inventory control department or in the stores as the case may be to
be able to get the up-to-date position of stocks at any times.

9. Stock reports of ‘A’ items should be sent more frequently to the

top management. There can be no set rule, though once a month is
good enough.

 Policies for B items (above 32% of items having 17% value)

[1] The policies for B items in general are intermediate between
those for A and C items.
[2] Order quantities, reorder points and safety stock should be fixed
for B items and barring exception revisions once a year.
[3] Annual or 6-monthly contracts with scheduled deliveries can be
used to an advance for items.
[4] Stock and issue records are necessarily to be maintained.
[5] Should be ordered less frequently than A items about 3 to 6
order per year is the range of frequency.

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 Policies for C items (about 54% items calming 3% value)

Since the items are too many and the value is less the policies are to be
aimed at reducing the ordering and stock keeping work to an extent
possible and ensuring the availability at all times by stoking liberal
quantities.

1. Liberal quantities can be kept in stock since in case of C item it

does not involve much capital tie-up.
2. Annual or 6 monthly orders, should be pleaded to reduce paper
work in the purchasing department and also to take advantage of
quantity discounts for bulk purchase
3. Item should be grouped like all electrical, all hardware, all paint
etc. and one group of items should be ordered all at once
preferably from one or two vendors. This saves ordering work and
also transportation costs. In additions because of the inclusion of
several items.

4. Authority for the purchase of C items could be delegated to the

junior executives in the purchasing department or even to the store
keeper so not to bother the personnel at higher levels with work on
these low value sundry items.

5. Stock and issue records can be minimized to the extent the rules of
the organization allow. In some companies for most of the C items
only record of receipts is kept. In other one consolidated issue
entry month for an item is recorded. However, in quite a few case
on records are maintained at all for C items barring some pilfer
able and short life items.

 VARIANTS OF ABC ANALYSIS

VED Analysis
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This analysis is done to consider the vitality of an item and its
effect on production and other services. It is specially used for
classification of maintenance spares denoting the essentiality of stocking
spares

V – Stands for vital items which production would come to a halt

E – Is for essential items without which temporary losses of production
or dislocation of production work occurs
D- Denotes desirable items all other items which are necessary but do
not cause any immediate loss in production.

SED Analysis
This analysis is based upon the availability position of an
item. Especially, in developing countries where certain items are scare,
this analysis is very useful.

S- Refers to scare items, especially imported items and those which are
in short supply.

E- Refers to items which are easily available(mostly local items)

D- Refers to difficult items, which are available in indigenous market

but cannot be procured easily. For example, items which have to come
from far off cities or for reliable suppliers are difficult to find.

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HML Analysis
Here the quantity and rates of consumption are analyzed to classify the
items as Fast Moving (F). Slow Moving (S) and Non-moving (N) items.
The fast and slow moving classifications help in arrangement of stocks
in the stores and in deciding the distribution and handing methods. It is
found that many companies maintain huge stocks of non- moving items
and the numbers of such items run well over a thousand. The following
steps are taken before disposal;

1. Circulate a list of non-moving to production, design and other

department and classify this into (A) items which can be used in future
as such (B) items which need modifications for use in future (C) items
which cannot be used.

2. The list of items which cannot be used should be sent to all similar
organizations and probable user for sale or exchange.

3. These items, if cannot be disposed off to similar organization, they

should be put to open auction.
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 ADVANTAGE OF ABC ANALYSIS

 Individual item analysis or selective method ensures a closer and

stricter control over such items which represent a major portion of
total stock value.

 It releases working capital, which would otherwise have been

locked up for a more profitable channel of investment.

 It reduces inventory carrying costs.

 It enables the relaxation of control for the C items thus make it

possible for a sufficient buffer stock to create.

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 It enables the maintenance of a high inventory turnover rate.

STORE MANAGEMENT

 INTRODUCTION

 Store is heart of industries because store provide all items of each

department of the industries.
 In the store department Head is Mr.N.A.Mehta and 17 other
employees working in store department.
 How much inventory required will be decided through the
production of planning.

Lion Tapes pvt ltd Used standard consumption method for inventory
control. They purchased items as per requirement.In this Organization
items are stored as per past record. Many items required urgently from
the store department so they put “urgent indent “to the store department.
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Some times items were not available in the store department then they
have to put same “Urgent indent “to the store department but production
will be delay during this period.At the end of year they summarized the
data and classified the items to non moving items which was sold in the
market and control the inventory. For issuing material from the store
department different color issues slip to be submitted as under.

Green colour ……………. Raw material

Blue colour ………………. Packing material
White colour ……………… miscellaneous items

 INCOMING MATERIAL
When material enter in Lion Tapes pvt. ltd.

Challan verified at the gate office. After weight of the materials,

weigh bridge slip issued and affix stamp on cjalln and stamped
format like

Date of arrive material ……………..

Time of arrive material ……………
Sign …………….
And passed to stores department, When material at the store department
then material will be checked by inventors and again affix the stamp
behind on challan in the store department and stamp format like
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Material accept / reject ………….
Inspected by ……………
Reason for rejection …………….
Indent sign …………….

Then after this entry enter in computer in MRIR ( Material Receipt

Inspection Report ) and then affix stamp on computer center in the store
department and stamp format like.

Strore computer ………….

MR no. …………………
IR no ………………………
Date ……………………….

 MRIR (Material Receipt Inspection Report )

This report shows that material received or rejected and

details of inspection of material .
In MRIR contain

Item name ………………………………………..

Item challan quantity …………………………….
Lion Tapes pvt. ltd. quantity …………………….
Document no. ……………………………………
No of items ………………………………………

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 REJECTION REPORT

In this report, item was rejected by consult department, when material

was not proper and not usable then these items were rejected.

 CAPEX ( Capital Expenditure )

Item are classified in capital expenditure and revenue expenditure. I.e.

irons bolts etc. Items consider as capital expenditure.

It is helpful for profit and loss account because expenditure items can
easily identified that the item is capital expenditure of revenue
expenditure and can remove mistake based on classification.

 FUNCTION OF STORE

The function of stores can be classified as follows:

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1. To receive raw materials, components. Tools, equipments and other

items and account for them.

2. To provide adequate and proper storage and preservation to the

various items.

3. To meet the demands of the consuming departments by proper issues

and account for the consumption.

4. To minimize obsolescence, surplus and scrap through proper

consumption, preservation and handling.

5. To highlight stock accumulation, discrepancies and abnormal

consumption and effect control measures.

6. To ensure good housekeeping so that material handling, material

preservation stocking receipt and issue can be adequately.

7. To assist in verification and provide supporting information for

effective purpose action.

In India, owing to stiff supply positions, 4 to 6 months inventories are nor

income on and in fact for certain imported items, it could be as high as 24
months stock. In this context, stores management assumes greater
importance.
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ACTIVITIES OF STORES DEPARMENT

[1] INDENTS
(A) Receiving of indents.
Monday to Saturday
Time :- 8AM to 5:3 OM
Accepted by Mr. M.A.Mehta
Mr B.D.Modi
Department Store Department

(B) Allocation of code number to items.

 All item given to code
 Items can identify only code

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(C) Verification of capex sanctions.

(D) I.C.D. and communicate stock position to the indicators

Here store manager communicate to the indicators that
how
Much item required and what time that item required
(E) Signature of the material controller.

(F) Verified indents to purchase department.

(G) Indent entry in the computer.

[2] INCOMING MATERIALS

For in materials that passes from the below stages

(A) Gate entry.

(B) Rough entry

(C) Wightman at weighbridge [incoming –outgoing (misc.byproduct &

finished products)]

(D) Unloading of material both at stores as well as indenters place.

(E) Labeling

(F) Packages – opening of wooden and cartoons, etc.

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[3] PHYSICAL CHECKING
(A) Receiving of goods.

(B) Accept materials subject to quantity verification.

(C) Rejection, replacement, stamping on challans.

(D) Gate passes for rejected materials.

(E) Inspected challan by concerned indenters.

(F) Inspected items warehousing in related groups.

(G) Labeling.

(H) MRIR entry in computer and manual MRIR for cash as well

as transport items (sorting challan).

(I) Challan telling with MRIR.

(J) MRIR to A/C department with verified challans.

(K) Issue register with each issues slips.

(L) Labels with each MRIR.

(M) MRIR with rough entry.

(N) Stores gate pass from materials returned to stores.

(O) TRC with physical stock.

(P) Daily (perpetual) stock figures.

[4] ISSUE OF MATERIALS (ON ISSUE SLIP)

(A) Issue items to concerned department.

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(B) Verify issue slips with table for correctness foT. no and T.

value.

(C) Posting of issue slips in computer.

(D) Issue register duly checked with physical stock and quantity

after issue.

 WORKING AREAS

[1] Unloading materials in department, go down, and capital yard.

[2] I.C.D.

[3] Stores counter.

[4] Inspection cell.

[5] Challans & gate passes – returnable & non returnable (register

to maintain for returnable items.).

[6] T.R.C. generation, reports.

[7] Perpetual stock taking.

[8] Challan Posting in indents and purchase orders.

[9] R.F.D. work.

[10] Scraps and used Packages (wooden box, ) material to yard.

[11] Arrangement for rejected material with suitable packing

[12] Half yearly and yearly stock taking and anditing, I.S.O. auding

[13] Distribution of welfare items vix. shoes, uniform as and when required

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[14] Reports – daily, 10 days, monthly Raw and packing materials. But

pending for issuing, tankers waiting our side for unloading, pending

challenge for MRIR.

[15] Weighbridge.

[16] Record keeping.

[17] Typing –correspondence.

[18] Communication with ho./local suppliers.

[19] Computer section.

[20] Registers for first aid and lab. Chemical items.

[21] Issue of stationery Monday to Saturday.

[22] Unloading contracts & voucher for octoi of materials.

[23] Receiving counter.

[24] Issue counter.

 MODE OF RECEIVING MATERIAL

[1] Road transport
[2] Train
[3] Angadia service / courier service
[4] Hand delivery

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Research is a recognizing process. Research is an analyzing process of factors,

which affects the business and their activities. In this research we can be
included many factors like worthiness of business, find the debt equity the unit
or company raise their fonts, effective allocation of primary capital, analyzing
of grow rate compare to last year profit level analyses the good will of the
company in the present market to know overall status of the company etc.

Research is very important process for the investor because without which there
are not want to take any risk of their money. Profit is a mean main factor for the
averment of company’s position. Debt equity ratio is also one of the most
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important factors because if the more part of capital rise by the borrowed capital
then the cost of capital become very high and amount returned at the matured
date of time. The interest rate is a very higher then the dividend paid on equity
share.

Working capital management is also very important factor of research. In this

factor we should show the maintenance of raw material, show the quality of raw
material, purchase of machinery and equipment which are useful for
production, maintenance of stock, recruitment of skill full workers etc. working
capital is a very useful sources of operating day to day operation.

 RESERCH OBJECTIVE

The main objectives of research study are as under

o A study of “ ABC analysis technique in inventory control technique
o A study of the “Store management “ at Lion Tapes pvt. ltd. Bhavnagar
o To know how the inventory maintenance.
o The know how to control the inventory

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LIMITATION OF RESERCH

o For collecting data it was difficult for all items

o The time factor was the limitation for me to collect all data about
item to scrutinize and analysis of all items.
o Sometimes the respondents were not willing to divulge or express
information such type of consumption quantity and price of items.

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 RESERCH METHOLOGY
Research as a scientific and systematic search for pertinent information
on a specific topic and research is an original contribution to the existing
stock of knowledge making for its advancement for doing research; I
have to design the research work
To achieve the research objectives, following methodology was
undertaken. Data are collected through various types of reports and
analyzed data by quality, quantity & price and I got ABC curve

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 TYPES OF RESEARCH
1. Descriptive research v/s analytical research:
Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of Descriptive research is Description of the
state of affairs as it exists at present. The main characteristic of this method is that
the researcher has no control over the variables; he can only report what has
happened or what is happening.
In analytical research, on the other hand, the researcher has to use
facts or information already available, and analyze these to make a critical
evaluation of the materials.
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2. Applied research v/s fundamental research

Research can either be applied (or action) research or fundamental
(to basis or pure) research .applied research aims at finding a solution for an
immediate problem facing a society or an industrial. Whereas fundamental
research is mainly concerned with generalizations and with the formulation of a
theory. Research concerning some natural phenomenon or relating to pure
mathematics are example of fundamental research. Research is to identify social,
economics, or political trends that may affect a particular institution. The
marketing research or evaluation research is examples of applied research.

3. Quantitative research v/s Qualitative research

Quantitative research is based on the measurement of quantity or
amount. It is applicable to phenomena that can be expressed in terms of quantity.
Quantity research, on the other hand, is concerned with qualitative phenomenon,
i.e., phenomenon relating to or involving quality or kind. Through such research
we can analyze the various factors which motivate people to behave in a particular
manner or which may people like or dislike a particular thing. It may be stated,
however, that to apply qualitative research in practice is relatively difficult job and
therefore, while doing such research, one should seek guidance from experimental
psychologists.

4. Conceptual research v/s empirical research

Conceptual research is that related to some abstract ideas or
theory. It is generally used by philosophers and thinkers to develop new concept or
to reinterpret existing ones. On the other hand, empirical research relies on
experience or observation alone. Often without due regard for system and theory. It
is data-based research, coming up with conclusions which are capable of being
verified by observation or experiment .we can also call it as experimental type of
research. In such a research it is necessary to get at facts first hand. Evidence
gathered through experiments or empirical studies is today considered to be the
most powerful support possible for a given hypothesis.
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5. Some other types of research

All other types of research are variations of one or more of the
above stated approaches, based on either the purpose of research, or the time
required to accomplish research, on the environment in which research is done, or
on the basis of some other similar factor. From the point of view of time, we can
think of research either as one-time research or longitudinal research. In the former
case the research is confined to single time period, whereas in latter case the
research is carried on over several time periods. Research can be field setting
research or laboratory research or simulation research, depending upon
environment in which it is to be carried out.

 Research on analysis is analytical type of research. As in this

research study , the researcher has to use facts or information
already available, and analyze these to make a critical evaluation
of the materials.

 RESERCH DESIGN
Research design is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection, measurement and
analysis of data

Here descriptive type of research design is used. The purpose of this design
is comparative design throwing light on all points.

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“A research design is the arrangement of conditions for collections and analysis of

data in a manner that aims to combine relevance to the research purpose with
economy in procedures”. It is a descriptive cross sectional design.

• Research design is the arrangement for conditioned for data collection &
analysis of data in a manner that aims to combined relevance to research
purpose with economy procedure.

• A research design is a master plan or model for the conduct of formal

investigation it is blue-print that is followed in completing study.

• The research design conducted by me is a descriptive research. This is

descriptive in nature because study is focused on fact finding investigation in
a well structured form and is based on primary data.

 RESERCH INSTRUMENT
For collecting data used various types of report like
o Store Report
o Consumed items Report
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o Quantity Report
o Inventory Report

The research must know the source from where the required data are collected.
In secondary type of data the source may be the annual report of the company,
news paper, literature, and other sources. In primary type of data the main
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source are the various group are of some kind of organization of club member,
user of a particular brand, services, or related to particular types of business or
industry or consumers.

Data used for analyses can be collected from number of different sources. The
sources of data for the any aspects of the financial analyses is collected mostly
from the annual report, director’s report and auditor’s report of Lion tapes pvt
ltd and make the analyses on different fund flow analyses of the firm.

Collection method:-

There are many data collection method by which the data can be collected
systematically. Some of the methods are observation, questionnaire, schedule,
and interview. I have collected the data is the secondary data which is collected
from the report and the interviews of the employees and properties I have
contacted in the LION TAPES PVTLTD during my study work.

DATA COLLECTION & SAMPLING TECHNIQUE

 TYPES OF DATA

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There are two types of data which are as under:

• PRIMERY DATA:-
Primary data first data collected and used first time in research. This is directly
collected from relevant person.

• SECONDARY DATA:-

As name suggested it-self secondary data, which are already, existing

somewhere it might be somewhere just we have to collect it.

• SAMPLING PLAN

Sampling unit: Inventory if Lion Tapes pvt ltd Bhavnagar

Sampling size : second Last year data used

DATA ANALYSIS

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In ABC analysis first items classified in category A , category B & category C
Total 51 data used and this item mostly from the PLASTIC YARN and all types
of RUBBER items.

In ABC analysis puts into categories that show the amount of effort worth
spending on inventory control. This is standard Pareto analysis or rule of 80 / 20
which suggest that 20% of inventory items need 80 % of the attention, while the
remaining 80 % of item need only 20 % of the attention.

o A item as expensive and needing special care

o B item ordinary ones needing standard care.
o C item as cheap and needing little care.

Typically all B item deal with automated system. The system might make some
suggestion all the circumstances. C items might be excluded from the automatic
system and controlled by ad hoc method.

An ABC analysis starts by calculating the total annual use of each item by the unit
cost. Usually a few expensive items account for a lot of use, while many cheap
ones account for little use. If we list the items use. If we list the items in order of
decreasing annual use by value, A items are at the top of the list,, B items are in
the middle and C items are at the bottom.

 PERCENTAGE OF QUANTITY

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Group No of items % of Quantity Value of annual

Demand ( Rs.)
A 7 13.72% 1938875.61
B 16 31.38 % 101023.9
C 28 54.90 % 85745.22
Total 51 100 2125373.92

PERCENTAGE OF QUANTITY

54.90%
60.00%

50.00%

40.00% 31.38%

30.00%

20.00% 13.72%

10.00%

0.00%
A B C

 PERCENTAGE OF COST

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Group No of items % of cost Value of annual
demand (Rs)
A 7 80.34 % 19398875.61
B 16 16.62 % 101023.9
C 28 3.04 % 857450.22
Total 51 100 2125373.92

PERCENTAGE OF COST

C
B 3%
17%
A
B
C
A
80%

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 TABLE FOR ABC ABALYSIS

Group No of items % of cost % Of quantity

A 7 80.34 % 13.72 %
B 16 96.96 % 45.40 %
C 28 100 % 100 %

100%

80%

60% A
B
40% C

20%

0%

This figure shows that in the Lion Tapes pvt. ltd Company a small percentage of
the total number of item carried in inventory constitutes the bulk of the total Rs.
Invested in inventory, in the study cited, 13 percent of the inventory items account
for approximately 80 percent of the investment and only a 32 percentage the item
make up approximately 17 percent of the total investment. The remaining 55
percent of the items constitute, roughly, only 3 percent of the inventory investment.

The analysis is easy to conduct once inventory has been properly identified and
usage records have been maintained for a complete operating cycle.

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 OBSERVATION

 All entries are done in computer like, indent, MRIR, challan

etc….

 Each item can identify by code no., so code no is given to all

items

 They are maintaining proper records of inventories.

 All the employees know that Lion Tapes pvt. ltd Has achieved
ISO 9002 certificate for its quality standards. This suggests that Lion
Tapes pvt. ltd.’s has well in communication facilities available with
it.

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CONCLUSION

This success of a business concern largely depends upon efficient purchasing,

storage, consumption and accounting. The uncontrolled inventories are dangerous
and at times it is called as the grave yard of business.

This is the ABC analysis technique for inventory control. This technique has
adequate data to control inventory, for fast moving items. This technique is very
effective for implementation of the inventory control.

Having a detail study of ‘ ABC analysis ‘ I am saying that using ABC analysis, it
can be great helpful for inventory control or it releases working capital which
would otherwise have been locked up for a more profitable channel of investment
and industries should become effective or efficient.
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SUGGESTION

 ABC analysis should be done at the end of every year

 In rejection report of inventory items should contain full data of rejection

i.e. Rejected by,

Rejected material,

Rejected date.

 Item of category A. B & C consumed during the year where at the end of
each year or 6 months, some of them item should converted from C to B , B
to A and C to A or vice – versa as per consumed items and price of the
items.

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BIBLIOGRAPHY

1. BOOKS:
A. FINANCIAL MANAGEMENT
-KHAN &JAIN
B. FINANCIAL MANAGEMENT
-B.S. SHAH

2. WEB SITE:
A. WWW.LIONTAPES.COM

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