Documente Academic
Documente Profesional
Documente Cultură
Project report
On
MATERIALS MANAGEMENT
AT
BHILAI STEEL PLANT
GUIDED BY SUBMITED BY
GUIDED BY SUBMITED BY
Session
2007-08
(----------------------)
SONAM SALGOTRA
ACKNOWLEDGEMENT
Lastly, I would like to express my deep sense of gratitude to all who have
shared their in valuable time & helped me directly & indirectly in the
preparation of this project.
(SONAM SALGOTRA)
CONTENT
Chapter -1
* Introduction of company
* History of BSP
* Feature of BSP
Chapter – 2
Chapter – 3
Chapter – 4
5:1:8 – Standardization
5:1:9 - Classification
5:1:10 - Codification
6.2 SUGGESTIONS
6.3 CONCLUSIONS
Chapter – 7
7.1 Bibliography
Chapter -1
Materials Management
Meaning
3) Inventory control :
The cost of materials and indirect cost remain within control limit.
9) Selection of suppliers:
10) Negotiation:
Negotiation work is effectively done by material management.
* Company profile
* Introduction of company
* History of BSP
* FACILITY
COMPANY PROFILE
Sinter …. 35 Kg
Coke …. 08 Kg
Major suppliers
Chapter – 2
2.1- Statement of objective
RESEARCH METHODOLOGY
• INTRODUCTION
• RESEARCH PROCESS
• RESEARCH DESIGNS
• DATA COLLECTION
• RESEARCH HYPOTHESIS
INTRODUCTION
Today is changing dynamic field to functional area of
management of increasingly important as compared to other fields.
Information in life is important as any research report, which keeps the
management in minimizing the risk & uncertainty through systematic
decision-making.
DEFINITION
P.M. COOK
OBJECTIVES OF RESEARCH METHODOLOGY
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out
the truth which is hidden and which has not been discovered as yet.
iii) To determine the frequency with which something occurs or with which
it is associated with something else.
TYPES OF RESEARCH
1) DESCRIPTIVE RESEARCH
2) EXPLORATORY RESEARCH
a) Literature surveys
b) Experience surveys
3) QUALITATIVE RESEARCH
4) APPLIED RESEARCH
5) EMPIRICAL RESEARCH
ii) The second group consists of those statistical techniques which are
used for establishing relationships between the data and the
unknowns.
iii) The third group consists of those methods which are used to evaluate
the accuracy of the results obtained.
There are two types of research problem, those which relate to states of
nature & those which relate to relationship between the variables. At every
outset the research must sign out the problem he wants to study i.e. he must
decide the general are of interest or aspect of a two steps are involved in
formulating the research, understanding the problem thoroughly &
rephrasing the same in to meaningful terms in analytical point of view.
After extensive literature survey, research should state in clear them the
working hypothesis or hypothesis. In development of working plays on
important role. Hypothesis should be very specific & limited to the piece of
research in hand because it has to be listed.
In dealing with any real life problem, it is often found that data at hand
are inadequate. There are ways of collecting appropriate data, which differ
considerably in contest of many costs, time & other resources at the
disposals of the researcher. But in the case of survey any one or more of the
following ways can collect data.
• By observations
• Through personal interview
• Through telephone interview
• By mailing of questionnaire
• Through schedule
7) ANALYSING DATA
After the data have been collected, the researcher turn to the task of
analyzing them. The analysis of data required no closely related operation
such as establishment of categories, the application of these categories to
raw data through coding, tabulating & then drawing statistical inferences
RESAEARCH DESIGN
(ii) The structure of the research is a more specific outline or the scheme.
DEFINITIONS:
According to Green and Tull,
COLLECTION OF DATA
The task of data collection begins after a research problem has been
defined & research designs process. The researcher should keep in mind
two types of data collection are used:-
PRIMARY DATA
These data are those data which are collected for the first time, & thus
happen to be original in character. There are several methods for collecting
primary data. Primary data are the actual information, which are received
by the researcher for social purpose from the actual field of study & for the
first time.
SECONDARY DATA
Secondary data are those which have already been collected by someone
else & which have already been passed through the statistical process.
Secondary data may either be published data. Usually published data are
available in books, magazines, reports & publication.
SOURCES OF DATA
SOURCE OF PRIMARY DATA
• Direct Observation
This method requires that the researcher should personally & directly
observe the conditions & incidents of his field of study. Direct observation is
the reliable method for gathering informative concerning the life, status,
conduct, behavior, language, festivals, customs & traditions etc. In this
observation, the observer should be absolutely detached & objective in
gathering facts.
• Questionnaire
• Schedule
• Interview
In an interview, the researchers meet people & discuss his social problems,
with them & this course of discussion is gathered fact.
• Government publication
The state govt. publishes data for their use that are very much
accurate & reliable.
• Unpublished sources
Personals rewards like bibliography, diaries, letters, memories etc.
form an important source of valid information in social research as
a personal document.
• Official records
• Other sources
Many other sources like film, radio, television, public speeches etc.
are some of the important source of information.
Research hypothesis
1) The flow of production used in BSP in to purchase material at a right
quality & at a comparative lower prize.
a) PRELIMINARY PAGES
• INTRODUCTION
• SUMMARY OF FINDINGS
• MAIN REPORT
CONCLUSION
Towards the end of the main text, researcher should again put down the
results of his research clearly & precisely.
d) REPORT WRITING
Table 1
500
450 455.46
426.32
400 395.07
350
315.75
300
RS.INCR 250
200
150 STORES&SPARES
100
50
2004-2005
2005-2006
2006-2007
2007-2008
0
CHAPTER-5
Material Planning:
General:
In order to ensure that optimum inventory levels are maintained at all times,
it is necessary to plan and regulate the inflow of materials. For this purpose
forecasting of future requirements has to be as accurate as possible, the
indents are to be correctly prepared taking into consideration the stock and
dues in and the deliveries from suppliers are to be so regulated that both
excessive holding of stock and stock outs of material are avoided.
D) Coal tubs
F) Power/trailing cables
Material Programming:
(a) Even distribution of procurement work throughout the year for all
concerned.
(e) Adequate time for general manages and controlling offers of various
stores.
(f) Even load of receipts spread over the whole year to enable proper
checking, inspection and timely issues by stores depots.
Material Indenting :
Types of Indents
CONCLUSION:
M
aterial planning, programming & indenting are integrated functions of
material management involving most of the departments of the
subsidiaries and CIL headquarters. Unless every
officer/section/department carries out their respective functions in time
and with company objectives in mind, problems of overstocking and stock-
outs cannot be tackled successfully. Timely actions by all concerned & co-
ordination at different levels will ensure optimum utilization of inputs,
resulting in reduction in costs and efficiency all round.
Flowchart of B S P
5.1.2Objective and purchase
(b) Ensuring that items purchased are most economical, taking into
account their quality, durability, efficiency etc.
Types of Tender:
1) Single Tender
2) Limited Tender
3) Open Or Advertised Tender
4) Global Tender
Tender Box:
Separate tender box are kept for different groups of tenders. They will be
marked x, y, z & are distinguished by different colors. The boxes are kept
locked & all the tenders received are deposited in the appropriate tender
boxes by the tenders themselves if delivered by hand or the purchased section
if received through post.
Tender Committee:
(b) Sole agent/distributors in the case of imported stores and stockiest in case
Of imported stores and stockiest in case there are no agents/ distributors
In the country for any particular type or class of goods shall also be
Registered.
Payment against the supply orders placed either by the subsidiary company
or by CIL shall be arranged by the subsidiary companies, if not specified
otherwise. Wherever order is placed by CIL on any foreign supplier involving
requirement of more than one subsidiary company, payment shall be
arranged by CIL normally through letter of credit.
Payment from CIL, may also be considered, if felt necessary, by the CIL
management, even though order is placed against the requirements of one
subsidiary company by CIL (h.q.).
- Payment authorities.
(g) To detect the deviations, trace the defect and apply correctives.
(i) To suggest ways and means for improvement in the next period budget.
General:
A) Stores and materials held tally with the descriptions and Specifications.
B) The actual balances agree with the balances recorded in the stock cards /
Ledgers.
All items of plant & machinery, general and consumable stores, medicines
and medical stores, spare parts for mining and earth moving machinery and
drilling equipment and all charged off stores held in colliery/consumers units.
Responsibility:
D) To carry out test check in the items verified by the stock verifiers.
Stock Verifier:
1) To carry out routine verification of stock comprising of any of the
following:
3) To test check the postings on the receipt and Issue side in the bin cards for
The items verified by him to ensure that the receipt and issue side
Postings are genuine.
5.1.5 - Issue of Materials
The term issue hereby means supply of materials from stores to the various
workshops or departments of an organization.
Generally, tools are issued to workers at the stores counter. Materials such as
cotton waste, emery paper, soap, etc, are collected from the stores either by
workmen or foremen. Raw material and finished components are delivered to
work point either by the progress department or stores.
2) Requisition of material:
4) Control of waste:
Actual wastage should not exceed the standard Wastage fixed. Wastages
Should be examined and any variance should be reported.
b) The depot officer and other personnel will ensure that necessary
precautions are taken to prevent loss by theft / fraud.
c) Every day, while opening the store, the depot officer will ensure that
the seals on locks are in order.
d) Visitors.
f) General precautions.
Fire Prevention:
a) Smoking
b) Inflammable Materials
c) Grass and undergrowth
d) Stacking
e) Spontaneous Combustion
f) Storage Of Petroleum Oil and Lubricants
g) Storage of gas cylinders
h) Storage of rubber
i) Electricity fire fighting equipment
j) Fire practice
k) Water supply
Conclusion:
All fires have small beginning and can be effectively tackled at this stage.
Fire fighting equipment is readily available. Suitability, serviceability and
most important the training in the use of this equipment are equally
important for effective control of fires in their initial stages. The persons
selected to man fire fighting organizations should be carefully selected and
properly trained in the use and maintenance of the fire fighting
equipments.
5.1.7Disposal of Stores
Unwanted Holdings:
a) Surplus equipment
b) Surplus stores
g) Survey committee
h) Survey report
i) Formation of lots
5.1.8 Standardization
Aims of Standardization:
Advantage of Standardization:
1) Raw material :
These are the raw materials and other supplies, parts and Sub-
assembles which the company purchases from outside sources,
Namely suppliers, dealers or manufactures . These items are to be
purchased and kept in stock before and during production of goods.
2) Purchased components :
These materials, other than above, purchased from the market and or
used in completing a manufacturing process are called components.
3) Work-in-progress :
These are complete finished products ready for sale. These products
Have been manufactured or assembled from production and in
process inventories.
5) MRO Inventories :
6) Spares :
These are also called feed stocks .These are important inventories.
The spares are governed by special policies and their problems are of
special nature.
7) Inflammables :
8) Packing materials :
9) Chemical :
Items like carbide, acids, etc can be classified under this category.
Any business organization stores a large number of items, often running into
thousands or lakhs. Therefore, there should be some means of identifying
them. Several departments use the same item by different names and store
them in different places.
3) Prevents duplication.
“Inventory control is, then, concerned with the control of the quantities or
Monetary values of these items at predetermined level or within Safe limit”.
Just to avoid the chances of over and under investment as well as running
short of an item during the course of production.
7) Experienced personnel:
The last but not the least important requirement of a successful inventory
Control system is the appointment of intelligent and experienced personnel
in purchasing , production , and sales department.
1) Smooth production.
2) Product availability.
Shape
Colour
Composition
Strength
Objectives of Inspection:
3) To make the suppliers careful while supplying the materials to the stores
Department.
5) To keep the purchase and store staff always Watchful in order to avoid
Irregularity.
Advantages of Inspection:
2) Increase of goodwill:
Objectives of Storekeeping:
3) Establishing coordination :
5) Preservation of stores :
7) Complete record :
Functions of Storekeeping:
1) Receipt of material :
4) Issuing material :
6.1 Findings
6.2 SUGGESTIONS
6.3 CONCLUSIONS
6.1 Findings
I have find out in this project that the effective inventory control minimize the
financial investment in inventories because the capital requires carrying
inventories cost money & holding assets in the form of inventories results in
decreased liquidity through inventory control to meet its demand.
I have find out that the efficient store keeping minimize cost of production,
providing efficient services to various departments, establishing co-ordination
& advising the management.
The BSP has used the KODAK system for codification which is very useful
for the identifying the materials.
In BSP the material is purchased from the different vendors. The company
give notice & issue the tender & the who supplier fulfill the terms &
condition of the tender given to them. Tender issue in 1 to 5 bid option
acoording to requirement.
6.2 Suggestion
On the basis of my survey. I discovered few points that if considered will add
up to its profit & goodwill. Following are some suggestion with the best of my
knowledge.
3) The BSP should adopt the best method of inspection & the inspection
Officer or inspector must be qualified & honest person for maintaining
the quality.
Bhilai steel plant is a fully integrated plant, they have good purchasing
facility,they have well store system and also good inventory control. In Bhilai
steel plant all the functionality of material management is integrated system
like purchasing, store, inspection, inventory control and also finance. MMIS
is the department which is working for integrating of plant.
Material management increases the profit, since the best quality of product
can be made at lowest possible cost. It makes good buyers & seller by
providing qualitative produce at reasonable price. Tools and equipments are
effectively provided there is an execution of good material management.
In an industrial organization the materials manager is required to keep the
wheel of the industry moving. However lot of crises is arising before the
materials managers now days are being pushed to tight corner.
Chapter – 7
7.1 Bibliography
1) VARMA, M.M., (EDS.) (1984)
‘MATERIAL MANAGEMENT’. NEW DELHI:
SULTAN CHAND & SONS EDUCATIONAL PUBLISHERS.
2) SHARMA, P.C.,
‘WHAT IS MATERIAL MANAGEMENT’. NEW
DELHI: KITAB MAHAL PUBLISHERS.
3) AGARWAL, C.B.,
‘MATERIAL MANAGEMENT’. NEW DELHI:
FORWARD BOOK DEPOT EDUCATIONAL PUBLISHERS.
4) INTERNET:
a) WWW. GOOGLE.COM
b) WWW.SAIL.CO.INWWW.SAIL.NET
c) WWW.WIKIPEDIA.COM