On October 23rd, 2014, we updated our
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Increased global competition in the post 2005 trade regime under WTO
Imports of cheap textiles from other Asian neighbours
Use of outdated manufacturing technology
High production cost with respect to other Asian competitors
Vardhman group was set up in 1962 by Late Lala Rattan Chand Ji Oswal
The group portfolio includes manufacturing of yarns, fabrics, sewing threads, fibre and steel
Group started its journey with an installed capacity of 14000 spindles(now approx 8.5 lakh)
The group is now one of the largest conglomerates in the country with a turnover of about Rs. 2700 crore
The group presently(2009-2010) has 24 manufacturing locations, spread across 5 states
The company also has a strong presence in various countries like Japan, Hong Kong, Korea, U.K., and E.U. in addition to the domestic market
Vardhman is the first organization among the textile industries to receive the ISO 9001/ ISO 14000 quality awards in India.
Company export to 29 countries.
“ To be globally recognized as a leading supplier of quality products”.
(CHAIRMAN VARDHMAN GROUP)
“ Being world class spinners by providing highest quality products within minimum cost”.
Largest producer of Cotton, Synthetics and Blended yarns in the country.
Largest Dyeing Capacity of Fibre and Yarn.
Largest Exporter of Cotton Yarn.
Market Leader in Hand Knitting Yarns in India.
Largest range of Textile products.
Second largest producer of Sewing Thread in the country.
Collaborations with specialist worldwide.
Set up : 1962
Sewing thread: 1982
Fabric weaving: 1990
Acrylic fiber: 1999
NUMBER OF UNITS
CORPORATE OFFICE THE CORPORATE OFFICE ON CHANDIGARH ROAD, LUDHIANA(PUNJAB)
Finance & Accounts department
Raw Material department
HR & Personnel department
Internal Audit department
Inventory refers to stocks of anything necessary to do business. Stocks represent a large portion of the business investment and must be well managed in order to maximize profits.
Inventory management involves balancing the costs of inventory with the benefits of inventory. Many business owners fail to appreciate fully the true costs of carrying inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of money tied up in inventory.
HOW TO CONTROL INVENTORY
VISUAL CONTROL enables the manager to examine the inventory visually to determine if additional inventory is required.
TICKLER CONTROL enables the manager to physically count a small portion of the inventory each day so that each segment of the inventory is counted every day on a regular basis.
CLICK SHEET CONTROL enables the manager to record the item as it is used on a sheet of paper. Such information is then used for reorder purposes.
EXPORT LEFTOVER STOCK OF VARDHMAN TEXTILES LIMITED
To analyse the leftover stocks meant for export(more than 60 days)
To find the reasons of export leftover stock.
To check the feasibility of export leftover stock.
RESEARCH DESIGN : Descriptive
Universe : All the units of Vardhman Textiles Limited, having leftover stock. i.e. 9 units.
Population : All the units of Vardhman Textiles Limited, having leftover stock. i.e. 9 units.
Sampling Unit : Any unit of Vardhman Textiles Limited, having leftover stock.
Sampling Technique : Census
Sampling size : 9
Primary : Schedule
Secondary : Internet, Journals & old databases of stock report of VSGM
This study has taken lot of time as Morning session of organization was very busy
Company did not disclose the information regarding their customer name. So it was difficult to find feasibility.
This study was new in Vardhman. To collect the data for study was very time consuming
DATA ANALYSIS & INTERPRETATION
Fig 4.1 Average level of monthly stock maintained in unit N=9
Fig 4.2 Availability of any inventory control mechanism N=9
Fig 4.3 Communication of daily stock levels to export dept. N=9
Fig 4.4 Pre-definition of inventory maintenance target N=9
Fig 4.5 Ultimate responsibility of exceeding of inventory levels N=9 n=12
Fig 4.6 Scope of reduction in the inventory level in unit N=9
Fig 4.7 Reasons for leftover stock in your unit N=9 n=15
Fig 4.8 To be done with leftover stock N=9 n=19
Fig 4.9 Factors on which decision to re-use leftover stock N=9 n=16
Fig 4.10 Reasons for not taking steps to reuse or dump the stock earlier N=9
Fig 4.11.i Steps taken to control the leftover stock N=9
Fig 4.11.ii Steps taken to control the leftover stock(above) N=9,n=12
Feasibility of stock
In ANANT unit maximum left over stock.
Maximum stock is left due to over production.
Responsibility of exceeding inventory is of the export department in more units.
Decisions of re-use of leftover stock is taken by export team most of the time.
Corporate team take decisions regarding leftover stock, when number of tonnes is more or high.
Company have to apply proper checks on stocks, so that there will be no left over stock in future.
Company have to communicate there stock levels to export dept on regular basis.
Company or top management have to communicate pre-defined targets.
Now, company have to liquidate the left over stock as soon as possible.
Company have to utilize their old stock earlier i.e. which is more than 180 days.
Company have to utilize their left over stock properly or in best way so that no stock will dump out.