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Project on Inventory Management

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  • 1. Presentation on Summer Training
    Presented by :
    Bhagat Harman Deep
    MBA 2(A)
  • 2. Indian Textile Industry
    Textile is one of India’s oldest industry.
    It is the second largest employment generator .
    The industry uses a wide variety of fibers .
    India contributes to around 12 percent of the world's production of cotton yarn and textiles
  • 3.
    • India covers 22 percent of the global market.
    • 4. India is known to be the third largest manufacturer of cotton across the globe.
    • 5. India claims to be the second largest manufacturer of yarn and textiles in the world.
  • 6. SPORTKING INDIA LTD.
  • 7. HISTORY
    Sportking India Ltd. Was Incorporated on
    15-02-1989 by Sh. Raj Kumar Avasthi &
    his family members.
  • 8. Other Companies of Sportking Group
    M/s. Sportking Knitwear’s
    Classis Wears Pvt. Ltd.
    M/s. Aradhan Knitwear’s
    M/s. Sportking Exports
    Namokar Capital Services Pvt. Ltd.
  • 9. Markets
    USA:Target Stores, JC Penny, Hagger, Li and Fung, Mother Works, Costoc, Urban Outfitters, C.A.G., HMX Sportswear and Walt Disney.
    EUROPE: George and Tom Tailor.
  • 10. Conti….
    Domestic : Pantaloon, Shopper’s Stop, Lifestyle, Pepe Jeans, Max (Dubai and India), Pyramid, Big Bazaar, Westside. They also have a license for the manufacturer of Walt Disney branded garments for India.
  • 11. Classic Wears Pvt. Ltd.
  • 12. Classic Wear Ltd. was established in the year 1987 in Noida.
    Shifted from Noida to Ludhiana in the year 1988 having a change in name “Classis Wears Private Limited”. Presently it is situated at Village Meharban, Rahon Road, Ludhiana.
    Presently Classic Wears is a leading manufacturer of Knitwear for gents, ladies and kids in Northern India
    Production capacity of 1, 50,000 pcs.
  • 13. Business Philosophy
    ‘TO GROW’
  • 14. Quality policy is:
    “TO MEET THE COMMON PEOPLE NEEDS”
  • 15. ORGANISATIONAL CHART
  • 16. SWOT Analysis
    Strengths
    Established brand Name ‘Sportking’.
    One of the oldest known fabric manufacturers.
    Most experienced technical manpower.
    Own dyeing and spinning units
    Weaknesses
    • Fabric & Design development are not fully exploited
    • 17. Do not have enough retail outlets.
    • 18. Employees are not well educated
  • Opportunities
    • Better utilization can be made with new machines.
    • 19. Can increase market share with wide range
    • 20. Improvement in distribution chain-number of dealers and retail shops in the urban and semi urban areas
    • 21. Can make more links for export
    Threats
    • The concern is facing competition from existing and upcoming units in the industry.
    • 22. Fluctuations in the prices of raw materials.
  • Ratio Analysis
  • 23.
  • 24.
  • 25.
  • 26. Total Credit sales
    Avg. Debtors
    DEBTOR TURNOVER RATIO =
  • 27. Total Credit Purchase
    Avg. Creditors
    CREDITOR TURNOVER RATIO =
  • 28. Sale
    Avg. Inventories
    INVENTORY TURNOVER RATIO =
  • 29. Outsider’s Fund
    Shareholder’s Fund
    DEBT EQUITY RATIO =
  • 30. Net Profit
    Sales
    NET PROFITABILITY RATIO=
  • 31.
  • 32. MEANING OF INVENTORY
    Inventory is the physical stock of goods maintained in an organization for its smooth running.
  • OBJECTIVES OF INVENTORY MANAGEMENT
    • Ensuring Availability of Materials
    • 36. Avoidance of Abnormal Wastage
    • 37. Avoidance of Out of Stock Danger
    • 38. Economy in purchasing
    • 39. Optimum Investing and Efficient use of capital
  • Risk Associated with Inventories
    • Price decline
    • 40. Product deterioration:
    • 41. Obsolescence
    Cost Associated with Inventories
    • Material Cost
    • 42. Ordering Cost
    • 43. Carrying Cost
  • ESSENTIALS OF INVENTORY CONTROL SYSTEM
    • Classification and Identification of inventories
    • 44. Adequate storage Facilities
    • 45. Adequate Reports and Records
    • 46. Intelligent and Experienced Personnel
    • 47. Coordination
  • TECHNIQUES OF INVENTORY
    CONTROL
    • Safety Or Buffer Stock
    • 48. Economic Order Quantity Technique
    • 49. VED Analysis
    • 50. ABC System
    • 51. Just-in-time
  • RESEARCH
    METHODOLOGY
  • 52. OBJECTIVES OF STUDY
    • To study the method of inventory
    management & control in Classic Wears Pvt. Ltd.
    • To study the problems in inventory
    management & control in Classic Wears Pvt. Ltd.
  • 53. Research design
    For this research descriptive research design is used
    Size of Population
    All the employees who directly or indirectly related to the inventory in Classic Wears Pvt. Ltd., Ludhiana.
    Sample size
    Six employees working in Finance, Store, Production Departments of Classic Wears Pvt. Ltd., Ludhiana.
    Sample unit:
    One employee who directly or indirectly related to the inventory in Classic Wears Pvt. Ltd., Ludhiana.
  • 54. Sources of Data
    Primary Data: - Structured direct Interviews with the concerned persons of Finance & Stores Department
    Secondary Data: - Annual Report, Store Records & various books
    LIMITATIONS OF THE STUDY:
    • . They refused to fill questionnaire
    • 55. Store department employees are not well educated.
  • Inventory Management in Classic Wear Pvt. Ltd.
    Raw Material consists:
    • Yarn
    • 56. Accessories like buttons, zips, tags, patches etc.
    Work in process: Garments which are in manufacturing process.
    Finished goods : Garments which are ready to
    sale in the market.
    Spare Parts : Needles, Screw
  • 57. Inventory Cycle
  • 58. Factor Effecting the Purchase Order
    Rank
    Factors
  • 59. Factor Effecting Inventory Policies
    Rank
    Factors
  • 60. Problems in Inventory Management
    Rank
    Factors
  • 61. Need of Inventory System
    Rank
    Factors
  • 62.
    • There is a lot of old stock which has not any use.
    • 63. At the time of issue they have to do
    many entries as they have not computerized
    system in store.
    • One the time of issue store-keeper issues some
    quantity from old stock & some from new stock.
    In this way they use the old stock.
    • No exact idea that how much quantity of yarn is required.
    • There is a lot of wastage. Store-keeper said that
    after the completion of production the excess material which is remained unused that is not returned to the store-keeper.
    • If there is any defected piece, then they have to
    find again the matching yarn.
    • Workers don’t use material properly; there is a lot of wastage. The reels, lace couldn’t be used again due to that.
    • For valuation of the stock they use Average method.
    • 64. They resale the waste material in the market.
    • 65. They purchase the material from their own subsidiaries & from local market.
    • 66. The main motive behind inventory management system is smoothen operation of factory.
  • SUGESSTIONS
  • 67.
    • No doubt lead time is important but other factor like availability is also important. So they should also give proper consideration to this.
    • 68. They follow safety & bulk purchases for cost reducing. But they should follow the JIT system. As they are in fashion industry so this is the best method. As they will purchase the goods according to the order, so there will no stock obsolescence.
    • 69. According to the store-keeper there is lack of space. The boxes of yarn & other material are not properly stored. So there should be proper racks for the boxes.
    • The store department should be computerized so that the recording can be easy. The issuing of yarn is recorded manually.
    • 70. Wastage should be controlled. The remaining material, after the completion of production, should returned to the yarn store. Production manager should take care of this.
  • Thanks

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