BBA Project
BBA Project
[DOCUMENT TITLE]
INDUSTRY PROFILE
The Indian metal casting (foundry industry) is well established according to the recent
world census of casting by modern casting, USA India ranks as 2nd largest casting
producer producing estimated 7.44 million MT of various grades of casting as per
international standards.
The various types of casting which are produced are ferrous, non-ferrous aluminium
alloy, graded cast iron, ductile iron, steel etc. for application in automobiles, railways,
pumps compressors and values, diesel engines, cement/ electrical/textile machinery,
aero & sanitary pipes and fitting etc. and casting for special applications. However, grey
iron casting is the major share approx. 70% of total casting produced.
There are approx 4500 units out of which 80% can be classified as small scale units and
10% each as medium and large scale units. Approx. 500 units are having international
quality accreditation. The large foundries are modern and globally competitive and are
working at nearly full capacity. Most foundries use cupolas using LAM coke. There is
growing awareness about environment and many foundries are switching over to
induction furnaces and some units in agar are changing over to coke less cupolas.
Product Manufacturing Ci casting and steel components & assembly and supplying
automobile components, automobile spare part, shaft piston,Sleeve.
Quality policy-
The integral part of their business policy is the quality of products and services that
meet the highest standards, and customer- buyer satisfaction.
They ensure stringent quality checking and measurements at every stage of
production.
They consistently improve their products & processes and comply with legal and
regulatory requirements.
To maintain quality as per satisfaction of the customers and to ensure timely delivery
of products to customers.
BUSINESS POLICY-
Alankar enterprises will strive to improve quality and skills to world standard. They will
manufacture products of consistent quality & price viable to their customers. They will
specialize in certain products for certain selected customers. They will adopt a policy of
continuous learning & improvement to retain our premier status.
KEY GOALS-
Profitability
Growth
Customer loyalty
Community development
PRODUCT/SERVICE PROFILE-
Products and service profile summarize information about the different products and service
within each business segment to be considered.
Alankar enterprises undertake design, engineering and manufacturing of complete range of
equipment and plants. A part from undertaking annual maintenance contract, they also
design, develop, procure and supply spare / equipment, carry out safety audits and provide
measure to identify areas of losses among other value added services offered by them.
OWNERSHIP PATTERN-
BOARD OF DIRECTORS-
Operation executive: - Mr. Mahadevchougule (partner)
Finance executive: - Mr. chandrekantchougule(partner)
Technical executive: - Mr. sampatchougule (partner)
Purchase manager: - Mr. Krishna gavage.
Development & quality manager: - Mr. dinarKabbur.
Production manager: - Mr. joseph D’Souza.
Account manager: - Mr. Raju goanna
System in charge: - Mr. Rohan chougule.
INFRASTRUCTURAL FACILITIES: -
Alankar enterprises has good infrastructure facilities such as
buildings, workspace, production machine & associated utilities,
physical infrastructure in office space such as personal computers,
internet connection,
telephone lines and common infrastructure facilities like file server,
fax machine, printer, scanner, photocopier,
meeting / conference room with protection equipment, dining room and seminar
room.
Non-conformation Non-conformance
Receiving & inspection
Salvaging committee
Re-input
Deviation
Dispatch 60
Structure-
Company structure prescribe the formal relationship among various positions and activities. It
is the organisational chart and associated information that shows who reports to whom and
how tasks are both divided up and integrated. In other words, structure describe hierarchy of
authority and accountability in an organisation.
Alankar enterprises hierarchies and different responsibilities are shown in below chart,
Machine operators
Helpers
The organization has been divided into four departments and each is headed by a partner
(manager). They have subordinated to assist them and share the work load of each
department.
Production department
Quality department
Purchase department
Account department
Quality department-
Process approval at cutting stages.
Inspection during at cutting process.
Maintaining identification and traceability in their area of work.
Maintaining all quality records pertaining to their area of work.
Purchase department-
Selection of suppliers.
Purchase of offloaded items for CNC tools and spares.
Establishment of new suppliers.
Purchase of indigenous product for CNC tools and spares.
Marketing and technical adviser.
Complete offloading of machines equipment and systems.
Accounts department-
Financial marketing and technical adviser.
Supporting staff (packing and forwarding).
System-
In Alankar enterprise planning & control system is very important function, which is done by
top management. They prepare plan every year by considering the potentiality, infrastructure
facility and past performance. A master plan is a plan which consisting plan of all
department. Thus plan is the standard course of action prescribed for one year. The actual
performance can be compared with this plan and reviewed by the board of directors, MD to
take decision on manufacturing/production / expansion plan or to control inventory.
A. Top-down approach-
Planning, decision making, delegating of work and other procedural aspects are done as per
top-down approach. The employees are required to follow the rules and regulations of the
company and these policies are strictly implemented.
B. Participative-
Alankar enterprise follow democratic leadership style. It is also known as participative style.
The subordinates are encouraged to talk to their heads about any topic at any time. While
setting targets the superior and subordinates sit together, discuss and decide on the targets.
The employees are free to express their opinion about the organisation working. This aspect
clearly shows that the management is allowing the ‘participation’ of employees in the overall
development of the organization.
Staff-
In the Alankar enterprise recruitment of the staff involves selection of the source from which
staff is to be recruit. Selecting the most suitable candidate through interviews and the actual
appointment of the staff through appointment letters, services and agreements etc.
Total number of staff in Alankar enterprises in 12 and 50 workers.
Skills-
The term skill includes those characteristics, which most people use to describe a company.
In other words, skill refers to dominant skills or distinctive competence of an organization.
Staffs of Alankar enterprises are highly qualified in accounting writing skills which is very
essential for maintaining books of account of the company and as well as qualified engineers
to operate machine.
Shared values-
The fundamental or core values that are widely share in the organization and serve as
guidelines that are important, these values have greater meaning because they focus attention
and provide broader since of purpose.
The values of Alankar enterprise are-
Honest, ethical and fairness.
Customer delight. Integrity and transparency.
High concern for quality, safety and work environment.
Achieving organisation growth through excellence.
Long-term relationship with customers.
Strengths-
Established strong brand name.
Most experienced technical manpower.
Favourable access to distribution network.
Good reputation among customers.
Timely supply of goods to the customers.
Co-ordination between the department and amongst the employees is best.
Weakness-
Break-down of machinery act as a major cause of worry to the production department
/ injury to the workers on the job site.
Opportunities-
Better utilization can be made with new machines.
Can make more links for export.
Technological advancement will help in future development in production and
security measures.
Threats-
Competitors in the market like Beejay enterprises, kamatz enterprises, balaji
enterprises etc.
Maintaining good quality products with competitive price in the current market.
The concern is facing competitive from existing and upcoming units in the industry.
Identification of problem
Sampling techniques
Tabulation
Interpretation
Conclusion
1. Primary data-
It is collection of first-hand information. This data is collected through discussion
with the concerned officers using the methods of interview schedule.
2. Secondary data-
It is the reviewing of the relevant information which is already collected and making
inferences base on the information collected. This includes information published in
files, annual reports, periodicals, manuals and text book.
II. Interpretation –
The data collected through primary and secondary sources were processed and
presented in the data analysis by various tables and graphs. The table thus obtained by
calculating average. Percentage, turnover ratio, graphs and diagram in respect of the
stock of raw material, spares, work-in-progress, sales, inventory control procedures
andThus to draw conclusion from the analysis done.
Time restriction was only 30 days of the project work in the organization.
The information, which was needed, could not be made public by the organization.
Through discussion with all related officials was not possible due to their busy
schedules of auditing.
This study was done by using annual reports, inventory manual etc.
Raw materials
Work in progress
Finished Goods
Supplier
Work in progress-
These inventories are semi manufacturing products that need more work before they become
finished products for sales.
Finished goods-
Finished goods inventories are those completely manufacturing products which are ready for
sale. Stock of raw materials and work in progress facilitate production while stock of finished
goods is required for smooth marketing operation. Thus, inventories serve as a link between
the production and consumption of goods.
Supplier-
It includes office and plant clearing material like soap, brooms, oil, fuel, lights, bulbs etc.
These materials do not directly enter production but are necessary for production process.
Usually, these supplies are small part of total inventory and do not involve significant
investment. Therefore, a sophisticated system of inventory control may not be maintained for
them.
A. Operating objectives-
B. Financial Objectives –
1. Economy in purchasing-
A proper inventory control brings certain advantages and economies in purchasing the
raw materials. Every attempt has to make to effect economy in purchasing through
quantity and taking advantage to favourable market conditions.
2. Reasonable price-
While purchasing materials, it is to be seen that right quality of material is purchased
at reasonably low price. Quality is not to be sacrificed at the cost lower price. The
material purchased should be of the quality alone which is needed.
a. Product Deterioration-
This may due to holding a product for too long period or improper storage. Once
goods lose their quality, they may not be in saleable condition.
b. Obsolescence-
This may due to change in customer ‘taste, new production technique, improvement
in product design, specification etc.
4. ABC Analysis-
An organisation uses different kinds of materials some stores materials may be costly
while others may be less expensive. The firm should not keep same degree of control
on all the items of inventory. It is advisable for the store keeper to exercise better
control over such items which are very costly because a little negligence may cause
have loss to the enterprises. Thus approach of selective control system is popularly
known as ABC control.
7. Other techniques-
40
20
0
2014-2015 2015-2016 2016-2017
-20
-40
-60
-80
-100
-120
Interpretation-
Size of inventory for 2014-15 is (-94.5) %.
Size of inventory for 2015-16 is (-13.6) %.
Size of inventory for 2016-17 is 44.39 %.
6.60%
6.40%
6.20%
6.00%
5.80%
5.60%
5.40%
2014-2015 2015-2016 2016-2017
Interpretation –
Inventory to working capital for 2014-15 is 6.33%.
Inventory to working capital for 2015-16 is 5.84%.
Inventory to working capital for 2016-17 is 6.66%.
A current assets is an item on an entity’s balance sheet that is either cash, a cash
equilvalent, or which can be converted into cash with in one year.
1.50%
1.45%
1.40%
1.35%
1.30%
1.25%
1.20%
2014-2015 2015-2016 2016-2017
Interpretation –
Inventory to current assets for 2014-15 1.44%.
Inventory to current assets for 2015-16 1.30%.
Inventory to current assets for 2016-17 1.50%.
Inventory turnover is a ratio showing how many times ac company’s inventory is sold
and replaced over a period of time.
5000
4000
3000
2000
1000
0
2014-2015 2015-2016 2016-2017
Interpretation –
Inventory turnover ratio for 2014-15 767.59%
Inventory turnover ratio for 2015-16 3584.07%
Inventory turnover ratio for 2016-17 4817.65%
The amount of stock that a company has compared with the amount of goods that they
have sold in a particular period of time.
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2014-2015 2015-2016 2016-2017
Interpretation –
Inventory to sales ratio for 2014-15 5.03%.
Inventory to sales ratio for 2015-16 0.87%.
Inventory to sales ratio for 2016-17 0.74%
The inventory conversion period is the time required to obtain materials for a product,
manufacture it, and sell it. The inventory conversion period is essentially the time
period during which a company must invest cash while it converts materials into a
sale.
Interpretation –
Inventory to conversion period for 2014-15 46.90%.
Inventory to conversion period for 2015-16 10.04%.
Inventory to conversion period for 2016-17 7.47%.
FINDING-
The size of inventory is recent years is increase the 2016-2017compare to 2015-2016
and 2014-2015.
Inventory to sales ratio is more for year 2014-2015 it further it decreses for year 2015-
2016 and again it decreses for the year 2016-2017.
Inventory to conversion period is more for year 2014-2015 it further it decreses for
year 2015-2016 and again it decreses for the year 2016-2017.
Physical verification of all the materials is done when they received and also
periodically.
Materials planning are based on order obtained from different customers. Thematerial
requirement plan is to be give exact requirement of materials be produced.
Vendors are selected based on their performance with respect delivery, quality price
and standard, more preference is given only to quality of the materials.
Alankar enterprise almost adopted all the modern management techniques like 7s to
keep work place clean and neat.
The company should avoid over stocking or under stocking in the stores and spares
department. This can be done by maintaining stock levels.
The company should try to increase the total inventory as well as working capital to
manitain the level of inventory to working capital of the firm.
The company should try to increase the total inventory as well as current assets to
manitain the level of inventory to current assets of the firm.
The company should try to increase the cost of goods sold as well as average
inventory to manitain the level of inventory to turnover ratio of the firm.
The company should try to increase the average inventory as well as sales to manitain
the level of inventory to sales ratio of the firm.
The company should try to increase the days as well as turnover ratio to manitain the
level of inventory to conversion period of the firm.
Company should take measure for maintenance of proper stores and spare so as to
avoid the storage of products.
The company should avoid over stocking in the stores and spares department.
CONCLUSION
Alankar Enterprises is a well-managed company earning profit. The overall study shows that
the company is maintaining a good inventory system and also trying to increase its efficiency
in managing the fund. This I came to know by analysing different type of ratios like
inventory to working capital ratioetc., which is improving compared with other years.
The inventory management study for AlankarEnterprises implies that investment in
the inventory is reduced in order to avoid blockage of funds.
Thus the study indicates that the Alankar Enterprises is function very well and trying
to adopt new techniques in order to increases its efficiency in the management.
Secured loans
(As per schedule B) 3191806.72 Investment & Deposits 3080411.00
(As per schedule E)
Transportation
charges 6,68,401.00
Wages
1,07,683.00
Weightiest
charges
1690.00
Gross profit c/d
74,72,649.35
Depreciation 1903283.31
Secured loans
(As per schedule B) 1487539.85 Investment & Deposits 2832267.00
(As per schedule E)
Conveyance 74889.00
Donation 4744.00
Depreciation 1570575.97
Interest on VAT
(2005-2006) 4804.00
Remission 76134.00
Secured loans
(As per schedule B) 3299001.00 Investment & Deposits
(As per schedule E) 6266116.00
Transportation 278337.00
charges
Wages 1044646.00
Conveyance 38665.00
Depreciation 1618587.59
House rent
allowance 166916.00
Intelligible input
vat (2016-17) 73819.42
Interest on Cc
loan 195146.50
Printing &
stationary 6970.00
Repairs &
maintain building 23538.60
Telephone 115592.82
charges
Travelling 14255.00
expenses
Excise duty
Absorbed 113677.14
Net profit
transfer to
partner 169064.93
C.M. Chougule 56366.25
M.M. chougule 56349.34
S.M. chougule 56349.34