final sanjay1

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SANJAY M. BELDAR LION TAPES Pvt. Ltd.

LOACTIONPlot no. 283/A,G.I.D.C. Chitra,Bhavnagar.

PHILOSOPHYPromise only what can be delivered; deliver what is promised

TYPE OF INDUSTRYMedium 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, mens, girls & boys inner garmentsEmbee garment : Ladies, mens inner wear MULTI-GROUP : Branded ladies & girls inner wear

~ 3 ~LION TAPES PVT LTD


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Local :

NEW LOOK : BrassieresBODY 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 tings : ladies & gents garmentsPage 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 asthe pioneer of the company. In the year 1985-86, Mr. D.V. Modi startedelastic tapes producing partnership firm with Mr. R.D. Mehta. Theyestablished their manufacturing plant at GIDC Industrial Estate,BHAVNAGAR with a bare investment of Rs. 0.3 million but with long-lastingvisions of quality, core capabilities, realization & focused innovativeness. At

that time, the firm was producing annually 2.7 million meters of elastictapes. The sale of the company was up to Rs. 15 lacks. This is consideredas an excellent initiate.

DEVELOPMENT OF THE UNIT

Due to the constant growth of the partnership business, it wasneeded to revolutionize. Therefore, the partners of the firm decided totransfer 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 than150 types of elastic tapes. It has grown into three companies commandinga combined annual production of over 100 million meters, andencompassing 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 liketotal investment, total workers employed, etc. The total investment of thiscompany is more than 10 crores and total employees except managementand office staff employed are 150. So the LION TAPES Pvt. Ltd. Is a smallscale industry.

The company has seen shareholders. These all shareholders areequity 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 securityoffice near the company gate, all the staff members has to sign in theattendance register in morning at 9.00 a.m. While all the workers have tosign in the attendance register at the beginning of every shift. The securityofficer records the time. The register is passed over the manager. Thetimings 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.

WORKERSFirst Shift

7:30 a.m. to 12 noon12 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 time9:30 p.m. to 12 mid night

The worker are compulsorily required the time in the register becausethey are paid on the basis of time they have worked. If any worker wantsholiday, he must have to take the permission of the manager. As thecompany keeps full fledged time keeping system, there is no situation ariseto 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 istherefore necessary for the management to give much attention towardsthe employees and to provide better services to the employees. If theemployees are given more and better services. Their efficiency & moraletowards the work will be naturally high.

It is said that if you give proper attention on employees, theemployees 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 childrens educational facilities



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MANUFACTURING PROCESS

LION TAPES Pvt. Ltd. Is producing elastic tapes. The company usedifferent type of plastic yarns or producing different type of elastic tapes.The company produce product as the order received. The material passesthrough from the following stages

WRAPINGFirst of all the raw materials passed through the warping machine.

Plastic yarns are wrapped at this stage. This is the starting for producingelastic tapes.

RUBBER COERINGOnce the product is passed from the warping machine, it goes to

rubber covering machine. Now the yarns are covered through rubber i.e. atthis stage semi-finished product is ready.

WEAVINGNow, the semi-finished product passes from the weaving machine.

The product got weaved at this stage. In this stage , the product is readythat is available as ready tapes.

CHECKING AND MEASURINGHere, the product is checked by the production in charge. They check

the quality of the product and also check wastages made during theprocess. After checking , next task is to measure the product. Elastic apes

are measured in the form of meters.~ 9 ~

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WINDINGAfter measuring, the product is winding. Elastic tapes are winding for

the purpose of making their packing

PACKINGProduct is packed by the packing department. And store in the

warehouse till the product is not soldThus, this is the manufacturing process starts from warping and ends atpacking. The ready products by packing are firstly stored into warehouseand then according to order, they are sold.

ORGANIZATION OF PERSONAL DEPARTMENT


GeneralManager

Personal

Manager

SecurityProduction

ProductionIncharge Security Guards

FittersSupervisorsWatchman

Clerks

PeonsWorkers


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The whole department is handled by general manager. The personnelmanager 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 companyhas set its marketing department as its requirements. It is involved so suchpersons that can convince to industrial customers.


General Manager

Marketing Manger

Sr. Assistant

SalesExecutive

SalesExecutive

SalesExecutive

SalesExecutive


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SANJAY M. BELDAR Thus, in this company, marketing department follows line authority andresponsibility. So its natural that the co-ordination and communicationfunction are performed effectively. Packing of the product also remainsunder the eye of marketing department.

ORGANISATION OF FINANCE DEPRATMENT

LION TAPES has structured an effective Finance department depicted asbelow:


General Manager

Finance Manger

Chief Accountant

Computer Operator

Assistant

Sr. Clerks

Jr. Clerks


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The whole department is handled by general manager. The Financemanager 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 inBhavnagar and exports outside the country. My project is about thestudy of ABC Analysis. It also includes the general information of thecompany.

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 anddevelopment of the company, and also various detail information aboutthe all the three departments that is finance department, human resourcedepartment and marketing departing.


Peon Peon


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Proper control of material or inventory can make a substantialcontribution 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 dangerousand at times it is called as the grave yard of business. Hence, inventorycontrol system should be designed to ensure the provision of therequired quality of material of the required quality at the required time tomeet the needs of production and sales, while at the same time keepingthe investment in them at a minimum. The research on the topic of ABCanalysis includes the research methodology and design.

INTRODUCTION

Proper control of material or inventory can make a substantialcontribution to the efficiency of a business. The success of a businessconcern largely depends upon efficient purchasing. Storage,consumption and accounting, the uncontrolled inventories are dangerousand at times it is called as the grave yard of business. Hence, inventorycontrol system should be designed to ensure the provision of therequired quality of material of the required quality at the required time tomeet the needs of production and sales, while at the same time keepingthe investment in them at a minimum.

INVENTORY CONTROL TECHNIQUES


INTRODUCATION OF ABC ANALYSIS


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In most manufacturing concerns inventories are controlledthough 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 purchasedepartment to determine when to buy and how much to buy. The

problem before the management is to balance the followingopposing 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 analysisis based on the principle of VITAL FEW TRIVIAL MANY and ahigher degree of attention is focused on VITAL FEW, which affect the

result significantly. The other areF.S.N (Fast Slow, Nonmoving items analysisH.M.L. (High Medium, Low cost analysisS.D.E. (scarce, Difficult, Easily Available) analysisV.E.D. (Vital Essential, Desirable) Analysis

An effective inventory control system should classify inventoriesaccording 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 andsubject each class and group of item to control commensurate with their

importance. This is the principle. This is the principle of Control byImportance and Exception (C.I.E.) of selective control as applied toinventories and the technique of grouping is termed as ABC. Analysisor classification which is said to be always better control. As the itemsare classified on the basis of importance of their relative value, thisapproach 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 itemscost 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 itemsforming 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 itemscontributing 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 basicrequirements viz., (1) to keep the capital tied up in the inventories as lowas is practicable, and (2) to make sure that the materials would beavailable 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, theyshould be ordered more frequently to reduce the capital locked upat a time in inventories.

2. These would be many items for which the consumption variesconsiderably from time to time during a year. For such items theexpected future consumption should be estimated in advance andthey 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 becarried throughout to meet any eventualities. It may be pointed out

here that the advance estimation of future consumption can bemade with the help of periodic production schedules and master schedules. In the absence of proper production schedule there isnot reliable way of estimating what quantities would be rather difficult. Thus, it may be emphasized that a proper inventorycontrol basically calls for a good production planning system.

3. Annul or 6-monthly contracts with schedule deliveries or deliverieswithin a specified period of order are welcome for A items.

4. Develop and revise more often ordering quantities, reorder pointsand safety stock for items not covered by long term contractsmentioned in(3).

5. Since these items are to be stocked as less as possible, purchasingdepartment should make maximum efforts to expedite the deliveryof these items.

6. As far as possible Two or more suppliers should be sought for eachitem so that the dependency on one supplier is an avoided. Due tostrike, 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 inthe purchasing department to ensure prompt service fromsuppliers.



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8. Stock and issue record should be meticulously maintained in theinventory 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 thetop management. There can be no set rule, though once a month isgood 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 beaimed at reducing the ordering and stock keeping work to an extent possible and ensuring the availability at all times by stoking liberalquantities.

1. Liberal quantities can be kept in stock since in case of C item itdoes 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 paintetc. and one group of items should be ordered all at once

preferably from one or two vendors. This saves ordering work andalso 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 storekeeper so not to bother the personnel at higher levels with work onthese 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 itemsonly record of receipts is kept. In other one consolidated issueentry month for an item is recorded. However, in quite a few caseon records are maintained at all for C items barring some pilfer able and short life items.

VARIANTS OF ABC ANALYSIS

VED Analysis~ 21 ~

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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 stockingspares

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 theitems as Fast Moving (F). Slow Moving (S) and Non-moving (N) items.The fast and slow moving classifications help in arrangement of stocksin the stores and in deciding the distribution and handing methods. It isfound that many companies maintain huge stocks of nonmoving itemsand the numbers of such items run well over a thousand. The followingsteps 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 futureas such (B) items which need modifications for use in future (C) itemswhich 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, theyshould be put to open auction.



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ADVANTAGE OF ABC ANALYSIS

Individual item analysis or selective method ensures a closer andstricter control over such items which represent a major portion of total stock value.

It releases working capital, which would otherwise have beenlocked 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 inventorycontrol. They purchased items as per requirement.In this Organizationitems are stored as per past record. Many items required urgently fromthe 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 theyhave to put same Urgent indent to the store department but productionwill 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 themarket and control the inventory. For issuing material from the storedepartment 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 departmentthen material will be checked by inventors and again affix the stamp

behind on challan in the store department and stamp format like~ 26 ~

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Material accept / reject .

Inspected by

Reason for rejection .Indent sign .

Then after this entry enter in computer in MRIR ( Material ReceiptInspection Report ) and then affix stamp on computer center in the storedepartment 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 materialwas 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 caneasily identified that the item is capital expenditure of revenueexpenditure 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.~ 29 ~

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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.ModiDepartment Store Department

(B) Allocation of code number to items.

All item given to code

Items can identify only code



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SANJAY M. BELDAR (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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SANJAY M. BELDAR [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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SANJAY M. BELDAR (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.

I.C.D.

Stores counter.

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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SANJAY M. BELDAR [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 beincluded many factors like worthiness of business, find the debt equity the unitor company raise their fonts, effective allocation of primary capital, analyzingof grow rate compare to last year profit level analyses the good will of thecompany in the present market to know overall status of the company etc.

Research is very important process for the investor because without which thereare not want to take any risk of their money. Profit is a mean main factor for the

averment of companys position. Debt equity ratio is also one of the most~ 35 ~

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SANJAY M. BELDAR important factors because if the more part of capital rise by the borrowed capitalthen the cost of capital become very high and amount returned at the matureddate of time. The interest rate is a very higher then the dividend paid on equityshare.

Working capital management is also very important factor of research. In thisfactor we should show the maintenance of raw material, show the quality of rawmaterial, purchase of machinery and equipment which are useful for

production, maintenance of stock, recruitment of skill full workers etc. workingcapital 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 thestate of affairs as it exists at present. The main characteristic of this method is thatthe researcher has no control over the variables; he can only report what hashappened or what is happening.

In analytical research, on the other hand, the researcher has to usefacts or information already available, and analyze these to make a critical

evaluation of the materials.~ 39 ~

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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 animmediate problem facing a society or an industrial. Whereas fundamentalresearch is mainly concerned with generalizations and with the formulation of atheory. Research concerning some natural phenomenon or relating to puremathematics are example of fundamental research. Research is to identify social,economics, or political trends that may affect a particular institution. Themarketing 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 researchwe 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 andtherefore, 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 onexperience or observation alone. Often without due regard for system and theory. Itis data-based research, coming up with conclusions which are capable of beingverified 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. Evidencegathered through experiments or empirical studies is today considered to be the

most powerful support possible for a given hypothesis.~ 40 ~

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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 timerequired 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 canthink 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 theresearch is carried on over several time periods. Research can be field settingresearch or laboratory research or simulation research, depending uponenvironment in which it is to be carried out.

Research on analysis is analytical type of research. As in thisresearch study , the researcher has to use facts or informationalready available, and analyze these to make a critical evaluationof 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 formalinvestigation it is blue-print that is followed in completing study.

The research design conducted by me is a descriptive research. This isdescriptive in nature because study is focused on fact finding investigation ina 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~ 42 ~

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SANJAY M. BELDAR 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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SANJAY M. BELDAR 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. Thesources of data for the any aspects of the financial analyses is collected mostlyfrom the annual report, directors report and auditors report of Lion tapes pvtltd 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 collectedsystematically. Some of the methods are observation, questionnaire, schedule,and interview. I have collected the data is the secondary data which is collectedfrom the report and the interviews of the employees and properties I havecontacted 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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SANJAY M. BELDAR 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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SANJAY M. BELDAR

Group No of items % of Quantity Value of annual

Demand ( Rs.)

A 7 13.72% 1938875.61B 16 31.38 % 101023.9C 28 54.90 % 85745.22Total 51 100 2125373.92

PERCENTAGE OF QUANTITY

13.72%

31.38%

54.90%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

A B C

PERCENTAGE OF COST



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SANJAY M. BELDAR

PERCENTAGE OF COST

B

17%

C

3%

A

80%

AB

C


Group No of items % of cost Value of annual

demand (Rs)A 7 80.34 % 19398875.61B 16 16.62 % 101023.9C 28 3.04 % 857450.22Total 51 100 2125373.92


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SANJAY M. BELDAR

TABLE FOR ABC ABALYSIS

0%

20%

40%

60%

80%

100%

A

B

C

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.


Group No of items % of cost % Of quantityA 7 80.34 % 13.72 %B 16 96.96 % 45.40 %C 28 100 % 100 %


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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.~ 51 ~

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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

final sanjay1

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