indian rayon

Indian Rayon (A Unit of Aditya Birla Nuvo Ltd)

Supply Chain Management in Indian Rayon


SUMMER PROJECT

Submitted for partial fulfillment of Master of Business Administration (MBA), (2009-2011)

Gujarat Technological University, Ahmedabad

Prepared by

Nikunj B Gevariya

Roll No.40 (MBA) (2009-2011)

Submitted to

Sardar Patel College of Administration & Management (SPCAM)

Managed by Tirupati Foundation Trust SPEC Campus, Vidhyanagar – Vadtal Road, Bakrol-388315, Anand

(Gujarat)

July, 2010



DECLARATION

I Mr. Nikunj B Gevariya the student of Master of Business Administration from

Sardar Patel College of Administration And Management, Anand. Here by

declares that the project work presented in this report entitle ―Supply Chain

Management In Indian Rayon‖ Submitted as a Part of Summer internship

Training of Gujarat Technological University is a record of original study done

by me. This work has not been undertaken or submitted else where in

connection with any other academic course.

Place: Veraval

Date:

Nikunj B Gevariya

(MBA SEM-2)



COLLEGE CERTIFICATE



COMPANY CERTIFICATE



PREFACE

The golden opportunity for any management student is to know about the

actual managerial work of any industry. ―Practice makes man perfect.‖ In this

perspective it is the necessity of practical training for every MBA student to

support and to expand the deep sense of practical Management work.

The aim and purpose behind this industrial training is to lead the students to

get more efficiently skills and the knowledge of real managerial work/practices

which may help them to become a successful manager.

Management field is like a coin. It has two sides one is theoretical and another

is practical management approach. Both are very necessary aspects to learn

for management students. As a part of practical approach, industrial training is

very important for the management students.

In Gujarat Technological University, for all the MBA students the industrial

training of 45 days and project report work are compulsory to undergo as a

part of study during the summer vacation after completion of 2nd semester.

As a summer trainee I have visited Indian Rayon (A unit of Aditya Birla Nuvo

Ltd.) Veraval, Gujarat. It was great opportunity for me to explore such a big

and vibrant company. And I tried my level best to make this training most

successful.



ACKNOWLEDGEMENT

“Everybody Lives And Act Partly According to his own, partly according

to other people‟s idea- Leo Tolstoy”

Endurance, Hard work And Gradual Progress. That‘s how I reached this level

and now as I stand at threshold of outside world.

I am thankful to ―Indian Rayon (A Unit of Aditya Birla Nuvo Ltd.), Veraval‖ for

giving me opportunity to complete my summer training in the unit.

I am heartily thankful to Ms. Shraddha Mehta (HR dept.) for co-operating

and allowing me to visit the plant and specific departments. I would like to

thank Mr. J. V. Dave (Librarian) for his co-operation.

Thanks to Mr. V.G.Patoliya for arranging my summer training in Indian

Rayon.

My heartiest gratitude goes to Mr. Anil Dixit and Mr.B.D. Rachch (Stores)

Thanks are also due to Mr. Kamal Sharma (GM), Mr. Stayendra Puri,

Goswami, Mr.Naresh Shah from Materials Deptt.

I would also like to thank Mr. D.P.Modani from SCM Dept.

Deeply express my gratitude to all the professors of my college and

Special Thanks To Dr. T.D Tivari (Director,SPCAM) and Ms.Sheetal Malik

(Faculty,Marketing) who guided me and even helped me in completing my

project.

And at last bow to all those who are directly or indirectly associated with the

successful completion of my summer training.

Last, but not least, I thank my family, my parents for educating me, for

unconditional support and encouragement.



EXECUTIVE SUMMARY

Four elements form a significant part of the costs –pulp which is exported

from Sweden and is the major raw material, power, CS2 and labor.

Power accounts for 16% of the cost, CS2 accounts for 30%, Labor 11-12%

and rest is accounted by pulp. Indian rayon is working on bringing efficiencies

in procuring raw materials.

For improving machine efficiencies Indian rayon is installing special devices.

They are also interacting with their workers to increase man efficiencies.

As far as future perspective of Indian rayon is concerned Indian rayon is soon

going to launch micro filament yarn. Till now they are manufacturing modular

yarn, continuous spun yarn, twisted yarn and flat yarn.

Moreover, Arvind Ltd. which is the largest manufacture of Denim, has

imported cotton worth ` 75 crore from US because they get raw material from

US at much cheaper rate, so to increase the market share, Indian Rayon has

to decrease its manufacturing cost.



Content

Sr.no Topic Page no.

1 Industry over view 09

2 Company profile 16

3 Production department 22

4 Human resource department 31

5 Marketing department 33

6 Finance department 38

7 Supply Chain Management 40

8 SWOT analysis 76

9 Future plan of the company 79

10 Research methodology 80

11 Objective of the Study 81

12 Limitations of the Study 82

13 Recommendations 83

14 Conclusion 84

15 Abbreviations 85

15 Bibliography 86



INDUSTRY OVERVIEW

The Aditya Birla Group is India‘s first truly Multinational Corporation. Global in

vision, Rooted in Indian values, the Group driven by a performance ethic

pegged on value creation for it multiple stakeholders. The Aditya Birla Group

is India‘s second largest business house Of India. A US $ 7.5 billion

conglomerate, with a market capitalization of US $ 8.5 billion, it is anchored by

an extraordinary force of 72,000 employees belonging to over 20 different

nationalities. Over 30% of its revenue low from its operations across the

world. The Group‘s products and services over distinctive customer solutions.

Its 72 state of art manufacturing units and sect oral services span India.

A US $28 billion corporation, the Aditya Birla Group is in the league of

Fortune 500. It is anchored by an extraordinary force of 130,000 employees,

belonging to 25 different nationalities. In India, the Group has been adjudged

"The Best Employer in India and among the top 20 in Asia" by the Hewitt-

Economic Times and Wall Street Supply Chain Management in INDIAN

RAYON. Journal Study 2007. Over 50 per cent of its revenues flow from its

overseas operations. The Group operates in 25 countries —

India, UK, Germany, Hungary, Brazil,

Italy, France, Luxembourg, Switzerland, Australia,

USA, Canada, Egypt, China, Thailand,

Laos, Indonesia, Philippines, Dubai, Singapore,

Myanmar, Bangladesh, Vietnam, Malaysia and Korea.



Globally the Aditya Birla Group is:

A metals powerhouse, among the world's most cost-efficient

aluminium and copper producers. Hindalco-Novelis is the largest

aluminium rolling company. It is one of the three biggest producers of

primary aluminium in Asia, with the largest single location copper

smelter

No.1 in Viscose staple fibre

The Fourth largest producer of Insulators

The Fourth largest producer of carbon black

The 11th largest Cement producer globally, the seventh largest in Asia

and the Second largest in India

Among the world's Top 15 BPO companies and among India's top four

Among the best energy efficient Fertiliser plants

In India: A Premier Branded garments player

The Second largest player in Viscose filament yarn

The Second largest in the Chlor-alkali sector

Among the Top Five Mobile Telephony companies

A leading player in Life insurance and Asset management

Among the Top Three supermarket chains in the Retail business

Rock solid in fundamentals, the Aditya Birla Group Nurtures a culture

where success does not come in the way of the need to keep learning

afresh, to keep experimenting.



MAJOR COMPETITORS:

1. RELIANCE INDUSTRY

2. TATA GROUP

3. HINDUJA GROUP

4. GODREJ GROUP

SECTORWISE COMPETITORS

Textiles Copper

Aluminium

Cement Tele-communication

Reliance Vedant group Ambuja Bharti airtel

Reymond Essar Unitech Reliance

Mayur Sail Vodafone

Tata BSNL



CORPORATE STRATEGIESDIVERSIFICATION



VISION, MISSION & VALUES:

Vision:

To be a premium global

conglomerate with a clear

focus on each business.

Mission:

To deliver superior value to our

customers, shareholders,

Employees and society at large.

Values:

1. Integrity: Honesty in Every Action

2. Commitment: Deliver on the Promise

3. Passion: Energised Action

4. Seamlessness: Boundary Less in Letter and Spirit

5. Speed: One Step Ahead Always



Company Profile

Registered Office & Works: Junagadh-Veraval Highway,

Veraval-362266

Dist- Junagadh (Gujarat)

Corporate Office: Industry Office,

1St Floor, 159 Church Gate,

Mumbai-400020

Brand Name: Ray one, Quality the World

Prefers

Establishment Year: 1963

Board of Directors: Mr. Kumar Mangalam Birla

(Chairman)

Mr. Bharat K. Singh (MD)

Dr. Rakesh Jain (Jt. MD)

Mrs. Rajashree Birla

Mr. B. L. Shah

Mr. H.J.Vaidhya

Mr. K.K.Maheshwari

Mr. P. Murari

Mr. B. R. Gupta

Ms.Tarjani Vakil

Mr. S. C. Bhargava

Mr. G. P. Gupta

Mr. Pranab Barua

Mr. Arun Maira



Management Team (Indian Rayon Divison)

Mr. K.K.Maheshwari -Group Executive President

Mr. Rahul Mohnot-President

Mr. K.C. Jhanwar- Executive President

Mr. D.P. Modani-Jt. President (F&C)

Mr. B.B. Dixit- Sr. General Manager (Caustic&Power)

Mr. P. Narshima Rao-Sr. Vice President (HR)

Mr. K.D. Joshi-Jt. President (Marketing)

Company Secretory : Mr. Devendra Bhandari

Branch Auditors: K.S Aaiyar & Co. Mumbai

Deloitte Haskins & Sells, Banglore

Clark, Gardner, Walf & Co.

Auditors: Khimji Kunverji & Co. Mumbai

S.R.Batliboi & Co. Mumbai

Solicitors: Mulla & Mulla Craigie

Blunt & Caroe, Mumbai

Chief Financial officer: Mr. Sushil Agarwal



Advisors: Mr. M.C Bareja

Mr. S.B Agarwal

Mr R.I Batawal

Bankers: United Bank of India

State Bank of India

Dena Bank

HDFC Bank

Central Bank Of India

Axis Bank

Corporation Bank

Canara Bank

Punjab National Bank

CITI Bank

Allahabad Bank

State Bank of Hyderabad

State Bank of Bikaner & Jaipur

Honking & Shanghais Bank

Bank of American NT & SA

Competitors : Century Rayon

Baroda Rayon

South Indian Rayon

Grasim Keshavram Rayon

Products Of The Company : Viscose filament yarn

Sulphuric acid (H2SO4)

Carbon-disulfate (CS2)

Ann Hydro sodium sulfate



5 „S‟ Concepts

SEIRI - Sort Out Unnecessary Items in The

Work Place And Discard Them.

SEITON- Arrange Necessary Items In Good Order

So That They Can Be Easily Picked For

Use.

SEISO- Clean And Maintain Workplace So That

There Is No Dust And Dirt.

SEIKETSU- Standardize the Work Procedure For

Everything We Do.

SHITSUKE- Develop a Habit of doing right things as

Standardize.

Company Policy:

We are committed to be the preferred choice of customers while taking care

of the interests of all stakes holders by.

Meeting customer‘s expectations for quality and services in premium

segment.

Adopting eco-efficient technology to maintain pollution free

environment.

Preventing occupational health and safety hazard by adopting safe

work practices.

Respecting employee‘s right and providing healthy working

environment.Service In Premium Segment Maintain High Morale Of

Employees.



Indian Rayon, Veraval (Guj.) (A Unit of Aditya Birla Nuvo Ltd.)

Indian Rayon, the VFY unit of Aditya Birla Nuvo, is a major player in the

Indian viscose filament yarn business. The unit enjoys a 30 per cent domestic

market share, making it the second largest producer of viscose filament yarn

in India.

Branded 'Ray One', the viscose filament yarn is available in more than 400

shades. The yarn comes in a wide array of colours, including natural whites. It

ranges from the purest tints, through medium tones to vibrant deep shades in

fine to coarse deniers ranging from 75 to 1200.

With a capacity of 16,400 tonnes per annum (tpa), Indian Rayon is the first in

the country to adopt the most advanced VFY technology with 88 pot spinning

machines (PSY) and 17 continuous spinning machines on parallel yarn. It also

accounts for 50 per cent of VFY exports from India. Located at Veraval in

Gujarat, the VFY plant is the first in Aditya Birla Nuvo to be accredited with the

ISO 9001 and the ISO 14001 certification. It also has the OHSAS 18001 and

OEKO Tex certification.



HISTORY AND DEVELOPMENT

The late Prime Minister Shree Lal Bahadur Shastri laid the foundation stone

of Indian Rayon and industries Ltd. It was incorporated on the 26th

September 1956 under the company act of 1956 and the company was

getting the commencement certificate on 13th Feb. 1958.

The inauguration of the company was done by an American ambassador

Mr. H.H. Galbreth on 13th April 1963 and on the same day company took its

trial production.

Shree Morarji Vaidya one of the leading industrialist of Gujarat with a view to

manufacture viscose filament yarn (VFY) in collaboration with von-kohorn

international of USA started this organization.

Once a sick company and virtually on the verge of closure was taken over by

Shree Aditya Vikram Birla in 1966. Who believed consolidation, expansion

and diversification, because of his believed and sincerity toward work the

company has not only turned around but has also made up strong market

position today, by 1975 the Jayshree Textiles has merged with IndianRayon.

The Indian Rayon is public Ltd. Company.



ORGANIZATION STRUCTURE

Executive

President

Production

Department

Engineering

Department

Commercial

Department

Administrat

ion

Department

Personal &

HRD

Department

Viscose Maintenance Finance Raw

Material

Time Office

Spin bath Electrical Share Legal

Spinning

Welfare

Instrumentati

on

Stores and

Purchases Octroi Labor Office

After

Treatment

Textile

Chemical

Research &

Development

Quality

Control

Internal

Audit

Sales Personnel

HRD

Estate

Security



INTRODUCTION OF PRODUCTION

DEPARTMENT

Production means creation of utility and entails the procurement

and utilization of factors of production, which includes manpower,

material, buildings and equipments.

Production is fabrication of physical object though use of men, material and equipment.

―Production management deals with decision marketing related to

production process so that the resulting foods of service is produce

according to specification in the amounts and by schedule

demanded and at minimum cost.‖

- E.S.Buffa



Product Capacity

Business-wise capacity

As on 31 March 2008 31 March 2009

Manufacturing capacity

Viscose filament yarn MTPA 16,400 16,400

Caustic soda MTPA 82,125 91,250

Insulators MTPA 38,800 38,800

Carbon black MTPA 2,30,000 2,30,000

Flax yarn Spindles 15,340 15,084

Worsted yarn Spindles 25,548 25,548

Wool combing Cards 6 7

Linen fabric Looms 107 106

Urea MTPA 8,64,600 8,64,600

Input:

Material

Labour

Capital

Energy

Information

Resources

Output: Products

Services

Information

Products of

Services

Production process

http://www.adityabirlanuvo.net/indianrayon/index.aspx

http://www.adityabirlanuvo.net/adityabirlainsulators/index.aspx

http://www.adityabirlanuvo.net/hitechcarbon/index.aspx

http://www.adityabirlanuvo.net/jayashreetextiles/index.aspx




http://www.adityabirlanuvo.net/indogulf/index.aspx



PRODUCTION PROCESS

VISCOSE SECTION The process is carried out in the following stages:

Conversion of woo cellulose into alkali cellulose i.e. mixing of wood

pulp with NaOH Conversion of alkali cellulose into sodium cellulose xanthate. Conversion of sodium xanthate into viscose solution.

The process is carried out in the following steps.

Steeping:

This is a process for mixing of pulp in Caustic Solution. Two distinct features

of this process are:

Swelling of pulp fibers‘ due to absorption of caustic for complete

formation of Alkali Cellulose.

The cellulose sheets are saturated with a solution of caustic soda or Sodium

Hydroxide and allowed to steep for enough time for the caustic solution to

penetrate the cellulose and convert some of it into ―Soda Cellulose‖ the

Sodium Salt of Cellulose. This is necessary to facilitate controlled oxidation of

the cellulose chains and ensuing reaction to form cellulose Xanthenes.

Pressing (Twin Roller Press):

Pressing is a continuous process from homogenizer slurry is pumped to press

where it passes between two perforated drums (roller). The excess caustic is

removed by pressing and slurry in the form of mat which contains 34% cells,

15-16% Alkali, 50% water and 0.50 to .55 % carbonate is formed.



Shredding:

It increases the surface area of Alkali Cellulose and ensures the rapid &

uniform aging & Xanthation. It contains three rollers rotating at different

speed. Each roller is attached with lingering wire which cuts the mat into small

pieces. Form Shredder Alkali Cellulose is carried to maturing drum.

Maturing (Aging):

The main function of maturing drum is to decrease the degree of

polymerization of Alkali Cellulose by the effect of temperature and time to

facilitate Xanthation. Alkali Cellulose takes about 7-8 hour to pass form inlet to

outlet of the maturing drum.

Xanthation:

This is a main reaction, which is carried out during Viscose preparation. There

are 5 Xanthomates equipped with agitator and are jacketed, through which

cold water is circulated to control the production temperature. Xanthation is

carried out under vacuum. Xanthation period is 60 min. Rate of Xanthation

depends upon the water temperature circulating through jacket. From

Xanthation batch is dumped into dissolver.

Dissolving:

In this stage the viscose is uniformed by eight dissolver vessels, which are

equipped with agitator, which makes viscose uniformed. The dissolving time is

3 hours. The dissolver viscose, which is transferred to ripening room.

Ripening: -

In ripening viscose is filtered though different filters. It is necessary process to

remove the impurities before sending the viscose solution to spinning section.



Filtering:-

The viscose is filtered to remove undisclosed materials that might disrupt the

spinning process or cause defects in the rayon filament.

Degassing:-

Bubbles of air entrapped in the viscose must be removed prior to extrusion or

they would cause voids or weak spots, in the fine rayon filament.

SPIN BATH SECTION

Spin bath is quality section to spinning rayon yarn. Spin bath is an important

constituent for the viscose to be re-generated in to cellulose. The main

composition of the spin bath solution is sulphuric acid (H2SO4) and sodium

hydroxide (NAOH), other composition is ZnSO4, Na2SO4, temperature etc.

which constitute the spin bath solution and the sodium sulphate (Na2SO4) is

receive as a by-product.

Sodium sulphate is a min by product, which is, requires 22 tons per day. This

by product Na2SO4 should be removed from spin bath solution and spin bath

solution transferred to spinning section by total six drums out of which two of

them are in old spin bath dept. while other four are in new spin bath dept.

Function of spin bath section:

Free from defects

Having sufficient length of yarn

Having a form suitable for end use requirement



SPINNING SECTION

In this section viscose solution from viscose section is directly supplied

through dye units to spinning machine for bright and colored yarn. The

merging pump drives fixed amount viscose in one minute depending upon the

capacity of the pump. Viscose temperature is about 28 degree centigrade.

Spin bath solution is also following with high speed from the spin bath section

at 56 degree centigrade to spinning section. Viscose coming from heat cons

in the contact with spin bath coagulation is viscose which taken place to from

yarn of particular denier.

Denier is a weight of 9000 meters of dry yarn grams. Its denier and filaments

e.g. 225/40 that means 225 denier with 40 filaments specify yarn. Jet is made

of anti corrosive material consisting of 70% Au. (Gold) 29% Pt (Platinum) and

0.5% Rh. The yarn coming out is passed through a cup tube length 550 mm

of 450 depending upon denier.

AFTER TREATMENT SECTION Raw cake from spinning section is bought to A.T. section in raw cake trucks.

Here the raw cakes pass through 20 parts for 19 minutes each. In these 20

parts the different machines are fixed in which the washing bleaching and

drying are done by soft water. Various hydro extracted chemicals etc. are

used to remove impurities, dust and dirt. Afterwards the cakes are dried room

by the air.

This section three major Section

1. Wrapping section A collection jacket is wrapped on cakes by wrapping machine for following

purpose.

To avoid disturbance in yarn during washing

To identity the denier filament of cakes

To avoid any external setting dust and other impurities.



2. Washing section After loading the carries is put for washing the carries is moved on dual a rail

which is hanged on roof.

3. Drying section To maintain the temperature inside the dryers hate exchanger are used for

this atmosphere air is sucked in through the tubes to meet the air. Then with

the help of blowing fans air is circulated in the dryer.

TEXTILE SECTION

The dry cakes are now dry for wining. The yarn is in the form of censor, and

hank time duration of coming depends upon the denier of yarn. The textile

department places where the manufacturing process of Rayon Yarn comes to

an end. Although it comes under production processes but its function is

auxiliary and very important in nature.

Mainly three section in this department C.C.R (Cake Conditioning Room)

Coining

Reeling



PACKING SECTION After winning the cones a hank, they are sent to the packing section where

they are visually check by the inspectors an grades are given as per their

quality.

At present cones are packed in cardboard boxes. Then the cartoons, which

are filled by inspection side, helpers, are first bought to the weighing balance

where the weight is balance as per pre-determine standard. After that a

computer packing slip is made having various necessary details. On is paste

on cartoon, second is kept inside the cartoon and third is kept for record

purpose. After that the cartoons are stepped with Polly propylene type. Finally

B.O.P.P. adhesive tape is applied at the joint of top flaps of cartoons. These

fully packed and sealed cartoons are sent to bonded stores room for sales

department to be dispatch.

Name of parts

Date of packing

Quality grade and weight.

Registered trade mark of the company

The color of cones and hanks

Deniers



Introduction of Human Resource Department

Personnel management is a link between the top management and the

workers or we can say that its acts like bridge between the employees and the

employers. It is basically concerned with human relationship within the

organization and helps in maintaining smooth relationship employee and

employees. It is the art of getting thing done by other people.

Human resource is the greatest asset of any business enterprise. The

workers are the heart of the organization. It is the manpower that operates the

machines, processes the raw materials into a finished product and makes it

possible to sale in the market. Henceforth we can say that personnel

management is the most essential department of an organization in order to

have a proper manpower planning, organization, staffing, directing and

controlling in order to achieve individual social and organization goals.

With reference to Indian Rayon. The personnel department of which is divided

into two division i.e. HR & training and the other one is personnel department.

Personnel department:

It mainly deals in the process of recruitment of manpower and act as a

consulting agent between the officers and the workers.

HR &Training:

It deals with the staff members of an organization and is accountable to the

vice president



MANPOWER PLANNING

“The process of determining manpower requirements and the means for

meting those requirements in order to carry out the integrate plan of the

organization.”

Company uses „PURTA‟ which is known as the system of control though

budgets and standards in modern cost accounting and management costing.

„PURTA‟ summaries the objective of the whole organization. All the dept. that

is need of additional requirement of manpower has to contact the personnel

dept. which makes the arrangement of the require manpower. Every month

the personnel dept. issues personnel requisition from the dept. and this

forecasts its manpower demand of each dept. accordingly the requirements

are made.

In Company the workers and divided into three categories –Permanent, Badli

and Temporary.

Importance of Manpower Planning Only people can spread knowledge resource arose the company.

Individual knowledge is the staffing point for organizational knowledge.

The executive sources of knowledge for organization and people.

It is only people who can convert knowledge into efficient action.

The knowledge of each individual cannot be implicated.

Categories No of person

Permanent 2059

Badli 508

Staff 355

Management Employees 234

Total manpower 4205



Introduction of Marketing Department

Marketing deals with identifying and meeting human and social needs. One of

the shortest definition or marketing is ―meeting needs profitable‖

“A market may be considered as a convenient meeting place buyers and

sellers gather together for exchange of goods and services.”

Marketing is a process by which individuals and group obtain what they need

and want by creating and exchanging products and value with others.

Marketing is typically seen as the task of creating, promoting and delivering

goods and services to consumers and businesses. Marketing people are

involve in marketing ten types of entities‘ goods, services, experiences

events, persons, places, properties, organizations, information, ideas.

Marketing has often been described as “The Art of Selling Product.”

Customer is not God, customer is King,

God forgives, King Doesn‟t

The company has a very efficient and excellent marketing department, which

tries to provide maximum satisfaction to the customer while having

reasonable. Profits on the other hand.



OBJECTIVES OF MARKETING

The following are objectives of Rayon Industries Ltd.

To find new and new customers to sell them more & more of

companies product.

Try to make better and quality product.

To provide a successful distribution of customer products.

To study the market problem according to the circumstances and

suggest the solutions.

To sell their products in new areas to make new customers and

satisfied old ones.

To encourage the customers and know the fault in their products and

then try to make quality or faultless products.

PRODUCT PLANNING AND DEVELOPMENT

“Product planning determines the characteristics of the product best

meeting the consumers numerous desires, characteristics that a

stability, to products and incorporate this characteristics into the

finished products.”

Product planning involves three important considerations:

1. The development and introduction of product

2. The modification of the existing products

3. The elimination of unprofitable products.

Company plans its product design according to the demand of the client‘s

market situation, and price of the product of its competitors.



PRODUCT MIX

Product mix, which is called as product assortment, is the set of all product &

items that a particular seller offers for sale. A Company‘s product mix has

certain width, length, depth & consistency.

Company‗s product is VFY but along with it the Co. also manufactures some

chemicals and by-products, which are require for the production of Yarn and

the excess of this product is sold out in the market. Not only that, Company is

manufacturing the Yarn, which is of different colors and different quality-

denier wise as per the requirement of the client.

Company main product VFY has certain length in terms of: Color yarn

Dull yarn

Spunned yarn

And it has depth in terms of: Quality

Denier

Company width includes various other chemicals and by product: Caustic soda

Sulphuric acid

NA2SO4



NEW PRODUCT DEVLOPMENT

New product development shapes the company‘s future. Given the rapid

changes in taster. Technology and competition a company can‘t rely solely on

its existing products.

Companies that, fails to develop new products are putting themselves at great

risk. Company can a new products though acquisition and development.

Indian Rayon has made efforts in technology absorption and in specific areas

that brings:

Development in its rayon division, i.e. Developing new shades of spun yarn

Enhancement of sodium sulphate recovery

Development of new product, i.e. flat yarn

Development in textile division

BRAND

The American marketing association defines brand is: “A name, term, sigh, symbol or design or a combination of them,

intends to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors.” Thus brand

identifies the sellers of makers.

With six of the foremost name in the apparels business into its fold, Indian

Rayon is today the largest branded apparel Company in the country. The

portfolio includes leading brand names like Louis Philippe, San Frisco, Van

Heusen, Allen Solely, Peter England, and Byford together making Indian

Rayon the Undisputed Market Leader for branded men‟s wear.



MARKETING RESEARCH

“To manage a business well is to manage its future; and to manage the

future is to manage information.”

Marketing Research specifies the information needed to address marketing

issues, designs the methods for collecting information, manages and

implements the data – collections process, analysis the results, and

communicates the findings and their implications.

Companies in its initial stages were using the service of professional persons

and sponsor trade delegation for the purpose of market research. But

thereafter from 1988, they installed their own quality control department of

market research. The company is also sending its higher-level executives to

the foreign countries for the purpose of survey and market research.

The form of marketing research adopted by the company is continuous

research. It has also adopted survey method.

Company has its own research and development department which

undertakes market survey and functions as per the trend of the market. This

department enables the co. to carry out the productions of yarn and various

chemicals as per the demand of the customer and market condition.



INTRODUCTION OF FINANCE DEPARTMENT

Financial management is the managerial activity which is concerned with the

planning and controlling of the firms of the financial resources.

Finance management is concern with the efficient use of an important

economic resource, namely capital fund.

- Solomon Taking a commercial business as the most common organizational structure,

the key objectives of financial management would be to.

Create wealth for the business

Generate cash, and

Provide an adequate return on investment bearing in mind the risks

that the business is talking and the resources invested.

There are three key elements to the process of financial management.

Financial planning:

Management needs to ensure that enough funding is available at the right

time to meet the needs of the business. In the short term, funding may be

needed to invest in equipment and stock, pay employee.

In the medium and long term, Funding may be requiring for significant

additions to the productive capacity of the business or to make acquisition.

Financial control:

Financial control is a critically important activity to help the business ensure

that the business is meeting its objectives.



Financial decision-making:

A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to funding to reinvest in growing revenues and profits further.

CAPITAL STRUCTURE:

Capital structure may be defined as the combination of debt and equity that

leads to maximum value of firm.

Capital structure refers to the mix of long-term sources of funds and such as

debenture, long-term debt, preference share capital and equity share capital

including reserves and surplus. The company should plan an optimum capital

structure.

Particular 2008-09 2007-08

Share capital ` 95.00 ` 95.00

Reserves & surplus ` 396.50 ` 3510.50

Preference share Capital ` 25.5 ` 50.00

Secured Loans ` 5033.10 ` 4463.5

Unsecured Loans ` 3860.90 ` 2184.40

Share capital of Indian Rayon remains same but the secured loans granted by

Indian Rayon have increased compared to previous year and its reserve &

surplus also increased.



SUPPLY CHAIN MANAGEMENT

Supply Chain Management encompasses the planning and management of

all activities involved in sourcing and procurement, conversion, and all

Logistics Management activities. Importantly, it also includes coordination and

collaboration with channel partners, which can be suppliers, intermediaries,

third-party service providers, and customers. In essence, Supply Chain

Management integrates supply and demand management within and across

companies. Supply chain management is the combination of the enterprise

strategies, business process and information technologies that integrates the

suppliers of raw materials or components, the manufacturers or assemblers of

the finished products, and distributors of the products or services into one

cohesive process to include demand forecasting, materials requisition, order

processing, order fulfillment, transportation services, receiving, invoicing, and

payment processing.

Supply Chain Mgt.

Supply Chain

Strategy

Supply Chain

Planning

Supply chain

Enterprice Application

Asset Mgt.Procurement

Product Lifecycle

Mgt.

Logistic



These functions are increasingly being outsourced to other entities that can

perform the activities better or more cost effectively. The effect is to increase

the number of organizations involved in satisfying customer demand, while

reducing management control of daily logistics operations. Less control and

more supply chain partners led to the creation of supply chain management

concepts. The purpose of supply chain management is to improve trust and

collaboration among supply chain partners, thus improving inventory visibility

and improving inventory velocity.

Scope of Supply chain activities can be grouped into strategic, tactical, and

operational levels of activities.

TACTICAL:

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations,

scheduling, and planning process definition.

Inventory decisions, including quantity, location, and quality

of inventory.

Transportation strategy, including frequency, routes, and

contracting.

Benchmarking of all operations against competitors and

implementation of best practices throughout the enterprise.

Milestone payments



OPERATIONAL:

Daily production and distribution planning, including all nodes

in the supply chain.

Production scheduling for each manufacturing facility in the

supply chain (minute by minute).

Demand planning and forecasting, coordinating the demand

forecast of all customers and sharing the forecast with all

suppliers.

Sourcing planning, including current inventory and forecast

demand, in collaboration with all suppliers.

Inbound operations, including transportation from suppliers

and receiving inventory.

Production operations, including the consumption of

materials and flow of finished goods.

Outbound operations, including all fulfilment activities and

transportation to customers.

Order promising, accounting for all constraints in the supply

chain, including all suppliers, manufacturing facilities,

distribution centres, and other customers.

GOALS OF SCM:

To reduce inventory cost,

To increase sales

To improve the coordination and the collaboration with

suppliers, manufacturers and distributors.



PARTNERS IN A SUPPLY CHAIN:

1. Suppliers - They are organizations that provide goods and/or

services to a purchasing organization (a manufacturer or a

distributor). It is often used synonymously with vendors but may

also refer to an internal company resource.

2. Manufacturers - They are the companies engaged in the

original production and assembly of products, equipment or

services. They sometime refer to companies that purchase such

products or services manufactured or assembled in accordance

with company specifications.

3. Distributors - That is the external entities that sell for suppliers

or manufacturers directly and often collect all payments from

customers and maintains an inventory of the supplier's or

manufacturer's products.

4. Other Elements - Elements of supply chain management

consist of customers, forecasting, design, processing, inventory,

purchasing, location and logistics.



PROCESSES OF SUPPLY CHAIN MANAGEMENT:

A. Demand Planning and Forecasting - Accurate demand

forecasting is considered one of critical success factors in supply

chain management. Supply chain software systems often utilize

sophisticated mathematical models for predicating future demand

from historical data. The accuracy of the demand forecasting is

largely dependent on how abnormal data is treated in the demand

forecasting. Demand forecasting is an ongoing process. Supply

chain management systems can generate alerts at the frequencies

of user preference, whether it's on a weekly or monthly basis.

B. Procurement - This is the process of choosing the suppliers that

will deliver the goods and services you need to manufacture or

assembly your products or to create your services. It involves price

negotiation, receiving, and verifying the shipments. Supply chain

management systems can be integrated with industry-specific B2B

exchanges to automate the procurement processes.

C. Manufacturing and Assembly - Raw components are assembled

into final products or raw materials are manufactured into finished

goods. Manufacturing involves the activities of production, testing,

packaging and preparation for delivery.

D. Distribution - Products or services are delivered to consumers.

Distribution involves warehousing, delivering, invoicing and

payment collection.

E. Return - Return and refund are important parts and also the

problem parts of supply chain management. Supply chain

management systems should have infrastructure in place for

receiving defective and excess products back from customer



ADVANTAGES AND DIS-ADVANTAGES:

Advantages of SCM Reduce overhead charges

Eliminates paperwork

Increase the speed of transactions

Facilitate Real-time data exchange

Increase revenue

Makes distribution more customer friendly

Receive regular forecasts for execution of production and sales plans

Analyze different supply line models and subsequently optimize them

Automate warehouse inventory management

Connect elements of market analysis and friendly interface relations

with suppliers

Economies of scale and scope

Concentration to core competence

Lead time reduction

Flexibility to customers

Disadvantages:

Supply chain management is tailored to specific industry and particular

company.

Systems are often tightly integrated a limited few suppliers and trading

partners.

The purposes of SCM are more of collaboration than price negotiation.

The cost of implementation is higher.

Many mistakes are done at first.

Has an internal resistance to change.

It‘s hard to gain trust from your suppliers and partners.



Top SCM Providers

1. SAP

2. Oracle

3. Manugistics

4. Manhattan Associates

5. i2 Technologies

SCM IN ADITYA BIRLA NUVO LTD.

Supplier Rationalization

Particular No of Vendors

Total Vendors 3559

De-activated as on 25.03.09 1414

Active as on 25.03.09 2145

For critical items like Pulp, Furnace oil, Sulphur, Coal, Zinc, Charcoal

etc. are procured from dedicated developed sources.

Pulp is imported form Ekman Ltd ( Domsjo, Sewden)

Furnace oil from IOCL, Asoj for our DG operations.

Coal imported from Indonesian origin for high VM.

Zinc is arranged from Hindustan Zinc, Udaipur

Salt is procured from selected vendors

Charcoal is arranged from south origin in India.

LDO (Light diesel oil) - IOC (Indian oil corp.)



INVENTORY MANAGEMENT: Inventory is being maintained in following categories.

1. Min-max items which is maintained by Stores as per Re order Level.

2. Department Indented Items- PR raised by user dept as per budget

norms.

3. Insurance Items - PR raised by user dept as per budget norms.

Fast consumable items are maintained in stores as min-max items in

order to meet our plant requirement for all the time and every time. In

this category we are keeping a stock of total 1921 items.

We have adopted a system for VMI (vendor managed inventory).

In VMI concept, vendors are keeping their materials in our custody on

their account which can be used by our users as and when required.

Payment of these items is made once in a month after consumption.

As on date we have 84 items which are maintained under VMI

Category. These items are Electrodes, certain category of

consumables namely Spray, and critical production items etc.

In case of import of Pulp, minimum 60 days inventory is recommended

considering voyage time, delivery transit time, custom clearance etc.

Inventory level of all the inputs are monitored on Daily / Weekly /

monthly basis in terms of No. of days, inventory-carrying cost,

inventory turnover ratio etc. and necessary corrective actions are taken

on time.



In case of spares like Tools, hardware items, electrical consumables

etc. local suppliers are maintaining the Inventory as per our

requirement on JIT basis.

Inventory value of stores and spares being maintained as per

requirement of plant and budgeted norms.

Consolidation of user‘s requirement for fasteners is made for easy

availability in stores at every time.

Raw Materials inventory is monitored on daily basis.

Pending PRs and Pos for consumable and spares are reviewed on

weekly basis.

Inventory is reviewed on monthly basis.

Factors Affecting Raw Materials:

1. Timely Raw Material.

2. Quality Of the material.

3. Season: - for example, salt is not available in rainy season.



Country wise export of April – 2008-09:-

S.NO. COUNTRY QUANTITY % PORT

1 Morocco 37806.05 19.08 Pipavav

2 Brazil 25200 12.72 Mundra (Gujrat)

3 Libya 24859 12.55 Pipavav

4 Italy 24531 12.38 Pipavav

5 Spain 23930.56 12.08 Pipavav

6 Canada 12896.72 6.51 Mundra

7 Tunisia 12666.08 6.39 Pipavav

8 Egypt 12602.78 6.36 NhavaSeva (JNPT)

9 U.K 11000 5.55 Mundra

10 Iran 5938 3.00 Mundra

11 Thailand 3291 1.66 Pipavav

12 Germany 2617.40 1.32 Pipavav

13 U.A.E 553.32 0.28 NhavaSeva (JNPT)

14 Indonesia 256 0.13 Mundra

198144 100%

Rayon Depot or Retail Outlets:

1. Amritsar Depot.

2. Delhi Depot.

3. Panipat Depot.

4. Kolkata Depot.

5. Varanasi Depot.

6. Surat Depot.

7. Rehnal Depot (Bombay)

8. Banglore Depot.

9. Salem Depot.

10. Unn Depot.



Customers:

1. Chiranjilal Rajkumar – Salem

2. Chirajilal Rayons Pvt. Ltd. – Kolkata

3. R.V. Textiles – Surat

4. Shailesh Velvet Industries – Bhiwadi (Thane)

5. Nirav Rayon – Surat

6. Rishab Thread Pvt. Ltd. – Ludhiana

7. Rehwal (Bombay)

8. Fargo Mental

9. Ansh Yarn

10. Mahajan silk mills

11. Winner waste (Surat)

12. N.D.Riwala Rayon traders

13. Parthiv traders

14. S.M silk industries

15. K.K Jariwala

16. S.D simplex – Ahmedabad

17. Indermal & Bros. – Salem



IN INDIA:

MARKET PROFILE:



CRITICAL ITEM LIST:

1. E.D.T.A.

2. SILICAL AS

3. SILICAL 108

4. SODIUM SULPHITE

5. ACETIC ACID

6. SODA ASH LIGHT

7. CONING OIL

8. SERVO MARINE 3040

9. GREY CLOTH RAISED

10. P.P. CLOTH

11. FINE FILTER CLOTH

12. FILTER PAD 32" X 64"

13. BONDTEX 32"

14. SAPCO SGG 8

15. SAPCO VISCO 656

16. SAPCO DEFOMER

17. HYDRATED LIME

18. PAPER CONES

19. 5 / 7 PLY BOXES 24, 32, 48 CONES & HANKS

BOXES

20. 3 PLY CARTONS 2 KG , 1.5 KG, & 1 KG CARTONS

21. MILL BOARD & MILL BOARD TRAY

22. PVC CONE INSERT

23. COTTON TAPE

24. GUM TAPE 4"

25. SODIUM SILICATE GUM

26. HMHD / LLDPE SHEETS & HMHD BAGS

27. BOPP TAPE

28. P.P. BOX STRAPPING

29. HDPE BAGS

30. THREAD CONES



31. PAPER TAGS

32. PAPER TUBES

33. 7 PLY CORRUGATED SHEET 9 HOLES

34. 5 PLY CORRUGATED SHEET 465" X 465" mm

35. FILTER MEDIA 25 7 15 MICRONS

36. COTTON LINTER PULP

37. VG. PARCHMENT PAPER

38. PVA GLUE

39. SODIUM BI-SULPHITE

40. MAGNAFLOC -611

41. ALPHA CELLULOSE

42. PARELLOLOGRAM ASSLY

43. SPINING POT

44. CANDLE FILTER BASE

45. FUNNEL BRACKET ASSEMBLY.

46. C. I. GODET BOXES & POT MOTOR RAIL

47. BALL BEARING FOR POT MOTOR

48. MAIN SPINDLE

49. STATOR SPIDER

50. BEARING CASE FOR POT MOTOR

51. COPPER WIRE

MATERIALS:

Raw Materials

Auxiliaries Spare Parts

General items

Pulp Lignite Furnace Oil Coal Sculpture Salt Zinc Charcoal

Process items Process chemicals Dyes Daily use items Packing Cartels

Machinery spare parts

Soap Bucket Oil Civil items Electrical items



VALUE ENHANCEMENT:

Awareness on waste MUDA/NVA‟s

MUDA (Waste Identification):- In Indian Rayon regular Campaign for waste

identification takes place.



VALUE STREAM MAPPING:

Initiative value stream mapping to identify value enhancement measures

SAVING IN LOGISTIC OF INCOMING IMPORTED PULP (Transportation)

Activity Qty in MT Mumbai to

Vaerval

Rate/MT In

`.

Pipavav to

Veraval

Rate/MT in

`.

Saving Per

Year

( `. In Lacs)

Saving In Pulp

Transportation

From Pipavav

port In Place of

18000 1200 235 173.70

LEAN ORIENTATION:

Salt Trucks were getting unloaded manually before 01-05-07. Truck

Tripler system has been commissioned and under operation from

01-05-2007.

Salt trucks are getting unloaded through tippler system and detention

time has been reduced. Turnaround of trucks is improved.

Quick delivery of pulp to viscose dept is adopted by hydraulic crane.

E.g. Pulp was supplied to Viscose dept. by manual system. Now it has

been delivered by hydraulic Crane resulting reduction in manpower

from 23 to 3 with speedy and safe delivery to users. Also delivery time

has reduced from 8 hours to 2 hours

Sweden

Sweden

Nhavaseva Port

Pipavav Port

Veraval

Veraval



Inventory turnover ratio for finished goods and stores items has also

been increased compare to last three years.

Coal unloading time has been reduced drastically from 9.26 to 6.25 hr.

Average cycle time for VFY is enumerated for last 9 years in and found

reduction from 6.96 to 6.63 days Production should be done in

minimum days.

Kaizen Scheme: ―Kai‖ in Japanese means ―Change‖ and ―Zen‖ means good. The literary

meaning of Kaizen is “change for good”.

Kaizen is the Japanese philosophy of continuous improvement by all the

employees in an organization so that they perform their tasks a little better

each day. It is a never ending journey centred on the concept of starting new

each day with the principle that the methods can always be improved.

7.12

6.96

6.9

6.79

6.6 6.6 6.6 6.6 6.6

7.12

6.96.87

6.86.76

6.69

6.636.6

6.3

6.4

6.5

6.6

6.7

6.8

6.9

7

7.1

7.2

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Target



Rejection:

Special measures are also taken by Indian rayon to reduce the rejection

percentage by the customers. Special steps are taken to improve the quality

of the rayon, because if the quality is good their material is less rejected and

they get full payment, since the customer pay less in case the thread is not

good..

Moreover there is no recycling of the rayon, therefore rejected material either

gets wasted or purchased by the customer at very less rate.

Thus, rejection should be very less; otherwise it leads to extra cost.

Delivery Management:

Focus on supply chain management to ensure on time receipt of inputs

and on time delivery of output to customers.

Operational bottlenecks are identified and removed in delivery process

of inputs like OTIF delivery, purchase order time, overall lead time of

critical spares and consumables, custom clearance etc.

Lead-time for critical stores & spares items are identified, measured

and appropriate steps are taken to reduce the overall lead-time

Door delivery of materials to user dept. by Stores (namely Zinc, Soda

Ash, Coning Oil, AT chemicals etc.).

Reduction in incoming inspection by way of self certification by

Vendors (Viz. Resins, IBR pipes & fittings, chopped mat etc.).

Lead time is reduced from 30 days to 17 days for dyes and from 30

days to 21 days for packing items.

Indian rayon ensures timely delivery of finished product to our

customers in order to meet out delivery schedule. We have kept a

penalty clause in transportation contract for delay in delivery.



MANUFACTURING PROCESS OF VISCOSE RAYON FILAMENT YARN

Viscose Rayon Filament Yarn manufacturing process consists of treating

dissolving grade Wood Pulp (a blend of imported and indigenous pulps)

with dilute Caustic Soda in Slurry Mixers to remove impurities and convert

Cellulose of pulp into Alkali Cellulose.

The excess Caustic Soda is squeezed out along with impurities. The Alkali

Cellulose is then shredded by Shredders and subjected to ageing

in Maturing Drums. Alkali Cellulose is then reacted with Carbon Disulphide in

Xanthomats to form Cellulose Xanthenes which is dissolved in dilute Caustic

Soda in Dissolvers. The viscous orange colored liquid (called VISCOSE)

formed in Dissolvers is subjected to multi – stage filtration, de – aeration and

ageing to obtain a clear liquid of certain specified physical and chemical

properties. It is then spun( regenerated ) into continuous filament yarn in an

acidic bath called Spinbath containing Sulphuric Acid, Zinc Sulphate and

Sodium Sulphate in Spinning Machines.

The Spinbath also has to be maintained within certain specified physical and

chemical properties. During the regeneration of yarn, the reaction between

Viscose and Spinbath produces Sodium Sulphate which is removed from the

system as a by – product.

The spun yarn is collected in Pots in the form of Cakes.

The Cakes are removed from Pots at specified times and sent for washing,

bleaching and various chemical treatments in After Treatment. Afterwards, the

cakes are dried in Tunnel Dryers, conditioned in Cake Conditioning Room,

wound as Cones in Textile before inspection and packing in Packing

Department.



PROCUREMENT PROCESS:

PR released by Stores for

Procurement

Enquiry Floated

Check History of Last P.O Ref.

Contract etc.

PR Raised By User

Stock Availability Checking By

stores

Stock Availability Cancelation of

Requirement

Receipt of Quotation

Rate Comparison/ Negotiation

Technical Approval

Rate Negotiation

Order Processing on Repeat

Basis

Order placing

Order placing



Procurement of Material: After receipt of controlled indents (purchase Requisition) from the

Stores Department the concerned person shall check whether repeat

orders as per rate contract/Price list can be placed.

The direct purchase shall be made for the item value not exceeding

Rs.1000/-. The concerned person shall obtain verbal rates from

local/outstation suppliers. He shall also compare the rates of the

material/availability of material with different suppliers and procure the

goods accordingly. The bills from the suppliers shall be approved by

Competent Authority. The respective bills shall be forwarded to the bill

section.

For Indent other than those mentioned in above the concerned person

shall float verbal/written enquiries with regular suppliers. The vendor

register shall be referred to, for obtaining the list of suppliers. The

enquiry letters shall be prepared for written enquiries and sent to the

dispatch section Drawing shall be attached wherever necessary.

After obtaining quotations from suppliers the concerned person shall

prepare the comparative chart. The comparative chart along with

quotations shall be sent to indenting department wherever necessary,

for the department‘s scrutiny and revision in estimate value if there is

wide variation between the estimated value given by the department

and the suppliers quoted value. The department shall give approval of

quotations after analyzing the quotations



The evaluation of vendors is made for critical items once in a year on

the basis of various attributes as per enclosed format. The statement of

vendor evaluation is generated through systems.

The negotiation of Commercial terms with suppliers shall take place.

The concerned person shall generate PO through systems and get it

approved by the competent authority described as under. Six Copies of

the PO shall be made and distributed. One copy shall be retained in the

Purchase Department.

Signing Of Purchase Orders

Authority Ceiling value of Purchase Orders

DP+SH (Com) Up to `. 50000

SH(Com)+DH(Com) From `.50001 To `.350000

DH(Com)+FH(F&C) From `.350001 To `.500000

FH(F&C)+UH Above `. 500000

The concerned person shall obtain computer list showing Pending

Indents / order once in a month and review the Computer list. On the

basis of the above statements, wherever necessary the concerned

person shall send reminders to the suppliers or shall remind over

phone/E-mail till receipt of quotations / supplies.

The concerned person shall receive and distribute the dispatch

documents.(Bill to bill section , Certificates to Stores and GC note &

challan to Purchase attendant).Purchase Assistant shall collect the

goods from the transporter.



The daily receipt of the materials (GRN) is available on line system. The

Stores department shall send short receipt memo (STCH) / transit loss

memo (STTL) to the Purchase Department. Rejection memo / report

shall be sent on Rejection of material. The concerned person shall

dispatch rejected goods to local and outstation suppliers after

completing the necessary formalities viz. Excise Invoice etc. and shall

get replacements by follow up through correspondence.

The Purchase Department shall receive a supplier‘s performance report

for critical items of General and Spares sections from the Computer

Department which gives item-wise details of P.O.No., P.O.Date, P.O.

due date, GRN No., GRN Date, P.O. quantity, rejection quantity and

percentage, delay days and balance quantity. This statement is

obtained once in a year.

Payment shall be made to suppliers on the basis of agreed payment

terms. Suppliers who negotiate for payment through banks, the

procedure shall be as follows:

A. Accounts Department shall send all the Bank intimation (IBC i.e. Inward

Bills collection) recorded by them in the register called as Bank

documents register to Purchase Department. The concerned person

shall verify the Purchase Order rates and terms/conditions. A note shall

be made on Purchase Order of the following: Document Sr. No./IBC

No./Invoice No./ Invoice date and Invoice Amount

B. The competent authority shall give approval to the Account Department

to honor the documents received by them through Bank document

register and the register shall be sent back to accounts.



C. Accounts department shall forward us the Lorry receipt / necessary

certificates/ Documents / parcel to Purchase Department.

D. Purchase department shall forward the parcel / certificates to the Stores

department.

Any change in the order for major factors like change in specification,

quantity, price/discount, delivery period, penalty clause and also

change in vendor‘s name, cancellation of the order partially or in Toto

shall be effected by issuance of the Amendment duly authorized by the

competent Authority.

If the Standard Format does not suffice the purpose to get all the

required details of changes then separate amendment letter shall be

issued. The copies of such amendment letter shall be distributed one

each to Party, Stores, Accounts, Bill Section, and concerned Indenting

Department. One copy shall be retained with Purchase Department.



PROCUREMENT OF IMPORTED MATERIAL:

1. The concern person shall check the order acceptance on its receipt

from the supplier and if O.K., then concern authority advice to Mumbai

office to open the L.C.

2. The Mumbai office shall receive the Bill of Lading / Airway Bill along

with other shipping documents from the supplier towards shipment of

the consignment.

3. The Mumbai office shall clear the consignment from customs

Department on arrival of goods at the Indian Sea port / Airport. The

Mumbai office shall inform the dispatch details to our factory at Veraval.

4. The Invoice / Bill of entry and necessary documents shall be forwarded

to Stores / Bill section for clearing the account.

5. In case of Rejection of material if necessary the material shall be

dispatched to Mumbai office who shall deal further suitably with the

concerned supplier and their Indian Agent.

6. The copy of indents forwarded by G. Stores with the Indent Number

Carrying the necessary Technical specification and approximate value

of the item/s is received by local purchase department.



7. The concerned person shall scrutinize the Indent for estimated value on

the basis of last order, placed if any in the recent past.

8. With reference to the last order or according to recommendation in the

Indent, the concerned person shall float the enquiry to the suppliers to

obtain quotations.

9. On receipt of the quotations from the suppliers, the concerned person

shall prepare the comparative price statement using current exchange

rate and Custom Tariff head.

10. The comparative price statement along with quotations shall be sent to

the indenting department wherever necessary for Technical scrutiny

and final recommendation and revision in estimated value, if required.

11. The concerned person shall prepare the order and the same shall be

signed by Authorized signatory.

12. The concern person shall note down the order details in the import

register before dispatch of order to supplier.



COLLECTION OF GOODS FROM TRANSPORTER‟S GODOWN: 1. The concerned person shall forward GC note with Challan to Purchase

attendant. The attendant shall enter GC note particulars in the

Consignment register.

2. The Purchase attendant shall confirm with the transporter about the arrival

of goods & if the goods are arrived, he shall check whether the goods are

physically in order.

3. The Purchase Attendant shall make carting arrangements for collecting the

goods from the transporters godown to our factory.

4. If the goods are physically found in order then Purchase Attendant shall

prepare transport Clearance slip to collect the consignment. The Purchase

Attendant shall make the entry of Transport Clearing Slip No. & Date in GC

Note Register on arrival of goods.

5. For receipt of Goods in damage / broken conditions the Purchase

Attendant shall take open delivery of the consignment from transport and

obtain damage certificate from Transporter. The damage certificate shall

be forwarded to Insurance department for settlement of claim. In the event

of booking of consignment on Transporter risk then claim will be settled

with Transporter.

6. The Purchase Attendant shall collect the weekly/fortnightly statement

from transporter towards freight charges with Bills & G. C. Notes



7. The Purchase Attendant shall forward the Statement for freight charges to

Stores dept. for verification of arrival of goods & afterwards to Bill

Section/Accounts department for releasing the Payment by cheque, duly

approved by competent authority.

8. The Purchase Attendant shall make payment against Cash Memo to the

transporter towards freight charges in exceptional cases.

9. Cash / Debit memo towards freight payment, lorry receipt & carting

voucher shall be sent to Stores/Receipt Section through statements.

PLACEMENT OF ORDER ON REPEAT BASIS: 1. Identify the last Purchase order reference for the respective item code from

the System.

2. Check whether present requirement is within normal period of one year of

last Purchase Order date & if necessary get verbal / written confirmation

from the supplier for repeat order under similar terms and conditions of

order.

3. Prepare Purchase order as per specifying reference of earlier Purchase

Order.



ORDER PLACEMENT AS PER RATE CONTRACT / PRICELIST:

1. Obtain the Price list from the suppliers wherever necessary and prepare

comparison chart.

2. The competent authority shall finalize price/discount rate Validity period /

phased delivery schedule.

3. Prepare the Purchase Order according to the agreed terms.

DESPATCH OF REJECTED GOODS: 1. Stores department shall submit the statement of Rejected goods.

2. Review of statement by concern person for local and outstation supplier

with volume of consignment.

3. Prepare Non returnable or white gate pass

4. Prepare returnable or yellow gate pass for rejected paid material

5. For outstation suppliers book the consignment with the transport company

after necessary legal compliance and obtain lorry receipt for the same.

Mail lorry receipt with covering letter to the party by registered post / Courier

service through the dispatch Section.

6. For local suppliers make carting arrangement and dispatch rejected goods

to parties.

7. The small size of consignment shall be sent through courier to the

respective suppliers.



CRITERIA FOR SELECTION, EVALUATION AND REEVALUATION OF VENDORS:

1. Selection based on dealer

2. Selection of sub dealer/ trader

3. Selection based on approval of samples

4. Selection based on trial order

5. Selection based on order placed for scheduled delivery for

some quantity.

6. Selection based on quality reports from user department.

7. Selection based on the basis of user dept's approval reports.

RE-EVALUATION OF VENDORS:

8. To generate performance statement on yearly basis.

9. To inform the parties their ratings on the basis of performance

statement.

10. If vendors performance found "poor" in past three years delete

vendor. Name from vendor file, while reviewing the same at a

regular period of one year.

PROCEDURE TO INCLUDE NEW VENDORS IN APPROVED VENDOR

FILE:

1. To submit the Vendor Registration Form to the Vendor.

2. To enter the duly received Registration Form in the register /

System.

3. To review the duly received Registration Form for its approval by the

competent authority.

4. To include the vendors name in the Approved Vendor File while

reviewing the same at a regular period of one year.



QCDIP: to satisfy internal customer through implementing QCDIP plan. A) QUALITY:-

1) Procurement of material as per specification.

2) Procurement of material as per indent specifications / drawing

B) COST:-

1) Procurement of material after price comparison with different

vendors

2) Procurement of material at competitive price

C) DELIVERY:-

1) Procurement of material in time.

2) Procurement of material as per schedule.

D) INNOVATION:-

1) To develop new vendors.

2) To develop vendors for alternate / better item

E) PRODUCTIVITY:-

1) Procurement of material at best quality material on timely basis

with optimum cost.

2) To help stores department in inventory control.



Transportation Channel:

Transportation:

The co. uses roadways and railways for transportation. The products are

distributed through trucks. The unit utilizes contract carriers. They give

contract to transport carriers. Transportation is done by truck up to Mumbai.

Indian rayon pays Rs. 3.24/ton for a km.

Truck turnaround time:

The truck comes and emptied itself in the plant, the time taken by the truck in

entering the plant and leaving the plant is known as truck turnaround time.

The truck turnaround time should be minimum otherwise dam rage should be

given to the driver. Indian rayon is continuously taking steps to reduce the

truck turnaround time.

Truck Turnaround Time also tells that how proactive the co. is regarding their

issues.

Packaging:

Indian rayon has realizes the power of good packaging to create instant

consumer recognition of the company or the brand.

All the cones rapped in transport polythene sheets.

Each carton contains 24 cones.

For packing special labels are available in Indian rayon in two categories:-

1. Gummed labels

2. Un gummed labels

The ungummed labels are easily available from veraval and Rajkot but

for gummed labels they have to purchase from Bombay on special

orders.



The boxes used for packing are known as corrugate boxes. They differ in size

depending upon the orders. They get these boxes from Rajkot and

Ahmedabad. The different types of boxes available in Indian rayon are:-

5 Ply: 24 cones × 50 kg






5 Ply: 8 bobbin × 45 kg

The gum that is used to paste the box from one side is also a special gum

which is of sodium silicate and is a very strong gum.

Around 1000 boxes are prepared for final use.

As far as paper cones are concerned on which rayon is rolled, Indian rayon

purchase that from Pushparaj co., Bombay.

SIPOC and Process Step:



Process Steps:



Activity Flowchart:



SWOT ANALYSIS

The overall evaluation of division like strength, weakness, opportunity and

threats is called SWOT Analysis.

STRENGTH:

Yarn produce here is of high quality then also management always

try‘s to Increase the quality of yarn in order to fulfil their potential

customer and new Ones. Total produced items wasted are being sold;

this shows the efficiency of sales activity.

Better pacing, carriage and transportation system with all modern

equipment and good after sales service.

Regular meeting and seminars are conducted in the entire department

in order to find our loopholes and solve the same.

Division also have continuous spinning yarn department in which the

modem technology is used for the spinning the yarn and it‘s adopted

from Germany.



Divisions have domestic as well as export market and for this they are

doing the Internet marketing in order to find new markets.

Division has WCM (World Class Manufacturing) cell in which they look

out for better way of manufacturing.

ISO 9002 for the better quality of the production carries division.

Division is certified by ISO 14001 for the good environment

management System, for their division has hoity-culture department in

order to look to the Surrounding environment.

Honoured by Safety Award.

WEAKNESS:

Cost of production is more due to existence of very old technology

installed in this division.

many process steps and process is more sensitive to normal process

variations

Division is unable to pay more attention toward proper human resource

Management.

Location away from consuming centres.

Bigger process cycle/ higher process stock.



OPPORTUNITY:

Division should find new market area for its products specially

chemicals

More research activity should be done, as there is chance of finding

new markets.

VFY use for certain textile items is specific and indispensable.

Quality has more weight age in international market. Indian Rayon Pot

Spinning Yarn is next to Asahi Japan and better than Chinese and

Russian Yarn used in international market.

Biggest opportunity, when opening up of global market when MFA

expires in 2005. Quota restriction will go which will boost the export of

Yarn directly and though Textile in World‘s two biggest market Europe

and US.

THREATS:

Government policies are the main hurdles of the division‘s

performance.

Emergence of cotton threads made the market share of Rayon Yarn

low.

Fashion changes are also basic threats for such division.

The Viscose Process is highly polluting. The basic raw material (pulp)

is again pollution prone.



Future plans of the company

Development of special yarn

Eco and energy auditing

Improvement in intrinsic quality of yarn

Developing new shades of spun yarn

Development of Microfilament yarn Arilobal Yarn & Flat

Yarn etc.

Development in the quality of existing range



Research Methodology

Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. Data

is collected through two ways.

Primary Data:

1. It is collected from personal observation, discussion and Interviews

with the managers and employees

2. The guide in the organization as well as in the college faculties to

collect the data guided me.

3. I have collected some fresh data which was related to the company.

Secondary Data:

1. I collected the theoretical data from the reference books related to my

topic of Supply Chain Management.

2. I had collected some of the data from the journals, Magazines related

to the Viscose filament Yarn industries.

3. Some of Data collected from the company records and company

related websites like www.indianrayon.com, www.adityabirla.com,

www.rayoninternet.com etc.

http://www.indianrayon.com/

http://www.adityabirla.com/

http://www.rayoninternet.com/



OBJECTIVE OF THE STUDY

Today, is the age of globalization, age of science and technology where one

will find now invention and discoveries at every mode of life? It is due to

sudden globalization in the economy now as we go towards the market; we

see a changing trend due to particular brand and selection of it. In the field of

education, new courses are introduced with having practical training, which is

needed but the theoretical knowledge is also important, so that we are aware

with practical phase in business dealings and life.

Management is a field, where Managerial & Practical Knowledge is required.

With a view to getting practical knowledge of Industry, We were required to

undergo training in the Industry according to our syllabus for practical study

subject because only theoretical knowledge is not enough to gain knowledge

of business. Practical knowledge helps a person to understand real life

problems.

Industrial acquaintance for M.B.A. student is the most important aspect, to

enlighten about the multi facets of ever increasing competition in business

ever since globalization. Practical training has been incorporated in the

curriculum of MBA which enables the management Students to get

familiarized and equip them with the practical aspects of management. This

benefit as it cultivates habit of business students thinking and sense of

professionalism.

Thus, a student knows how theoretical learnt of classroom is actually

implemented in business environment and what is the difference in the theory

and practice?

After completing this Project, we are more confident about Practical aspects

of business Management. So, objective to study this summer project is a

practical training program which gives actual practical exposure to

organizational working setup.



LIMITATIONS OF THE STUDY:-

1. The study was confined to the available information.

2. A number of biases may creep in to the study because of employee‘s

uncertainty about their own view due to tension, anxieties & other

things.

3. Accurate information is not available as the employees have to

maintain secrecy of the organization.

4. The project duration is 8 weeks only. This period is not enough to study

such huge organization



SUGGESTIONS AND RECOMMENDATION:

1. Proper Mapping or Bird View of Organization described at proper point will

help improve search time like, Warehouse maps layout drawn at the Entry

gate. The representation will help drivers reach desired destination in

organization in mean time and help decrease the Turnaround time.

2. One window concept for drivers – One way window concept will help better

communication and data Collection. It will help to reduce the resources and

one point for data collection.

3. Use of Speaker system to announce the Truck driver or Transporter for

job/Services. Announcement will decrease the processing time.

4. Truck handling system should include real time functioning so as should

operate 24 hours likewise decrease the wait time during night. With decrease

in truck turnaround time, dam rage should not be given to the truck driver, will

help improve better relation with truck driver and overall corporate Social

Responsibility. From the driver perspective, if he has taken truck on loan, his

monthly EMI is the same, if he spends less time in the plant; he can have

more trips, his monthly income increases, so he charges less. Fast Truck

handling will help in fast processing, less man power, power consumption and

security to handle.



CONCLUSION

Indian Rayon, a unit of Aditya Birla Nuvo Ltd., is a heavy industry having

sound facility of manpower, finance and machinery.

Company has well-established marketing and personnel department and the

financial condition it very strong.

Against the backdrop of various initiatives taken and strong performance

during the year, Indian Rayon is well on the path to superior performance. The

company has strategically moved into various growth businesses. These are

supported by traditional businesses that generate strong cash flows to drive

growth. The company‘s strategic thrust continues to be on the all around

growth mode and consolidation across the diversified businesses. As a result

of the transformation, the new business impact would be more prominent in

the coming years.

At last, I would like to give my best wishes to the organization for the splendid

success and glorious achievement in the future.



ABBREVIATIONS

GRN-Goods Receipt Note SH-Sectional Head

GCN-Goods Challan Note DH-Departmental Head

PO-Purchase Order FH-Functional Head

Admn-Administration UH-Unit Head

ST/CH-Store Checking Report STRP-Stores Reporting Memo

ST/TL-Store Transits Loss Report GC-Goods Consignment

DEPT-Department LR-Lorry Receipt



BIBLIOGRAPHY

Magazines: Aditya Kiran-Birla Group Publication,

Business Strategy- ICFAI University Press.

Books: Marketing Management-Philip Kotler.

Operation Management-B.Mahadevan

Human Resource and Personnel Management- K. Aswathappa:

Financial management- I.M.Pandey

Websites: www.indianrayon.com

www.adityabirlanuvo.com

www.rayonintranet.com

www.adityabirla.com

Library of Indian Rayon

http://www.indianrayon.com/

http://www.adityabirlanuvo.com/

http://www.rayonintranet.com/

http://www.adityabirla.com/