kirloskar ferrous industries limited, koppal(3)

EVOLUTION OF SUPPLY CHAIN MANAGEMENT

DECLARATION

I am Madhumathi.Halegoudra D|o Siddeswarappa student of final year MBA

Visveshwaraiah Technological University Jnana Sangama Belgaum. Affiliated to

Visveshwaraiah Technological University, I here by declare that this report is based on

EVOLUTION OF SUPPLY CHAIN MANAGEMENT which special focus at KFIL is

submitted to Visveshwaraiah Technological University in partial fulfilment of requirement for

Master in Business Administration.

I also declare that the project is result my own endeavour and that it has not

been submitted to any university earlier or any university for the award of my degree or

diploma.

Madhumathi.H.G.

Ballari Institute of technology and management , Ballary


ACKNOWLEDGEMENT

I am very glad to present this project report on “A Study on “SUPPLY CHAIN MANAGEMANT” at KIRLOSKAR FERROUS INDUSTRY LIMITED – KOPPAL”

At the outset, I would like to convey my sincere thanks to authorities of KIRLOSKAR FERROUS INDUSTRY LIMITED – KOPPAL” , for permitting me to conduct the survey and to complete in-plant training and write this report.I would like to convey my sincere thanks to Mr. PAVAN MAHARASHI HR Manager of KOPPAL Unit, for his kind co-operation in permitting me to conduct the study and complete the in-plant-training and present this report.

I take this opportunity to thank Mr.SATISH SHETTY ADMIN AND VICE PRESIDENT in KIRLOSKAR FERROUS INDUSTRY LIMITED – KOPPAL” , and others who directly or indirectly helped me in the organization and for their valuable suggestion by providing me all required data for the study.

I wish to express sense of gratitude to our college faculty, Mr.CHRISTOPER. RAjM.B.A internal guide and Library-Staff for providing me necessary facilities in completion of this project report.I take great pleasure to thank my parents who inspired me in completing the project report successfully.



CONTENTS

PART A

1. INDUSTRY PROFILE2. COMPANY PROFILE

a. Background and inception of the companyb. Nature of the business c. Vision, mission, and quality policyd. Products/ services profilee. Area of operationf. Ownership patterng. Competitors Informationh. Infrastructural Facilitiesi. Achievement and Awardsj. Work Flow Modelk. Future Growth and prospects

3. Mc Kinsey’s 7S Frame Work4. SWOT Analysis5. Analysis of Financial Statement6. Learning Experience

PART B

1. General Introductiona. Statement of the problemb. Objectives of the studyc. Scope of the studyd. Methodologye. Limitations of the study

2. Analysis/ design, Interpretation of results3. Findings4. Suggestions5. Conclusions and Recommendations6. Annexure 7. bibliography



PART-A

1. INDUSTRY PROFILE

India is gifted with large quantity of iron ore with high ferrous content, which is the crucial raw material for producing the steel. Hence India is one of the largest producers of Steel in the world.

With the help of liberalization, globalization of economy in the process, there is as scope for economic development, with means there will be focus on infrastructure. This will lead to considerable demand for steel. As its main applications are in the construction Engineering and automobile sectors, which are the key elements in building infrastructure, Steel is universe intermediate and has very strong forward linkages hence steel industry has become one the core sector of the economy .

Though India one of the large steel producers, it has low percepts consumption of Steel in comparison with developed countries. India is fortunate in having intensive iron ore deposits with estimated at 10.3Billion, which is more than 1/4th of the world reserves. Further the average iron ore content of India ore is above 60% in India, the iron ore reserves are mainly found in the states like Orissa, Karnataka, Bihar, M.P. Goa, A.P., Rajasthan and some parts of western Maharashtra.

When, we think of the steel Industry, the first thing that comes in to our mind is our mind is pig iron .This is because of its name. When mental from blast furnace is paired in to Moulds and solidifies it assumes a shape which resembles the back of a pig, hence called as pigIron.

GLOBAL SCENARIO OF PIG IRON:

The demand for the international has a sharp rise, the total production of pig iron. It is estimated at 500MT, in which developed nation accounts for 45% of the total production seeing the potential demand many mills in USA such as a Nucor, Norigstar, steel And Max steel are switching over to big iron production.

DEMAND AND AVAILABILITY OF PIG IRON (‘000 UNITS)Years Demand Availability1990-00 2900 40162001-02 3100 43222002-03 3300 46502003-04 3600 49002004-05 3800 57502005-06 4100 52332006-07 4400 54742007-08 4600 56892008-09 4100 54342009-10 4300 5725



GROWTH OF PIG IRON IN INDIA:

Before liberalization the pig iron industry was monopolized by the integral Steel plants to utilize the liberalization policy initiated by the Government. Decline in The pig iron production and paved the way of helping the ISP’s be utilize pig iron for Making steel to gain iron value addition

The integrated steel plant (ISP) is the major supplier of pig iron. Public Contributes up to 90% of the Pig Iron supply. According to the steel Ministry Report, Demand for pig iron is estimated to increase by 37% over next 8 years.

Steel –a versatile commodity, most widely used metal in the world, forms a core Constituent of all major economies. Accordingly, Steel Consumption is a derivative of the Growth pattern of its various end – use sectors VIZ. manufacturing, housing, infrastructure, Automobile etc. that ultimately steel the country’s economy

The steel industry is believed to have been operating at around 90 percent capacity Utilization factor in 2004. As per International Iron and steel Institute estimates, global steel Demand has increased by around 8.8 percent. The strongest increase in steel consumption was recorded in North America (+15%) while the rest of the OECD India steel industry is almost 100 years old now. Till 1990, the Indian steel industry Operated under a regulated environment with insulated and large –scale capacities Reserved for the public sector.

Production prices were determined and regulated by GOI. The steel sector was Deregulated in 1991-92, when control on capacity and prices were abolished along with Quantitative trade restrictions. Import tariffs were also brought down substantially. In 2000-01,The Indian steel industry operated at finished steel production level of 26.7 million tones with Apparent finished steel consumption at 26.9 million tones. However, with the onset of Liberalization, the India steel sector witnessed entry of several domestic private players and large private investments flowed in along to the sector to add fresh capacities. In 2004- 05, the indigenous production of steel was 38.4 million tones along with apparent finished steel consumption at 33.4 million tones.



Today, India produces steel of international standards conforming to almost all grades and varieties and has been a net exporter for the past few years, which shows the growing Acceptability of its products in the global market, and most importantly it’s increasing global Competitiveness.

World steel Industry

Steel, the recycled material is one of the top products in the manufacturing sector of the world. The Asian countries have their respective dominance in the production of the steel all over the world. India being one among the fastest growing economies of the world has-been considered as one of the potential global steel hub internationally. Over the years. Particularly after the adoption of the liberalization policies all over the world, the world steel industry is growing very fast.

The following table gives a clear picture upon the major crude steel producers In the world as Of the year 2010:

country Crude steel production (Million Tonnes/Pa)

China 272.5

Japan 112.7

United state 98.9

Russia 65.6

South Korea 47.5

Germany 46.4

Ukraine 38.7

Brazil 32.9

India 32.6

Italy 22.4

STEPS TAKEN TO BOOST STEEL INDUSTRY IN INDIA:



In budget 2004-05, the customs duty on non –alloy steel was reduced from 15to10percent and on alloy steel from 20percent to 15 percent IN August 2004, customs duty on non was further reduced from 10percent to5 percent ; on melting scrape from 5 percent to ‘zero’ and on ships for breaking from 15 percent to 5 per cent.

Further, customs duty on several raw materials used by steel sector like non- coking coal, met coke and nickel has been reduced to 5 percent and on coking coal to zero”

To bring down the prices of steel, the excise duty on steel products was reduced from 16percent to 8 percent with effect from February 28, 2004 with a caveat that the duty regime will be reviewed. Budget 2004-05 revised this partially by increasing the duty from 8 percent to12percent as the intended impact of duty cut on moderating prices was not achieved.

STRUCTUE OF I NDIAN STEEL INDUSTRY:

The Indian steel industry can be divided into two distinct producer groups:

1)Major producers: Integrated steel producers (ISPs) includes large steel producers with high level of backward integration and capacities of over 1 MT .steel authority of india limited (SAIL), Tata steel Rashtriya ISpat Nigam limited (RINL),JSW steel limited (JSWSL), Essar steel limited (Essar ) and Ispat industries limited (ISPat)from this group . SAIL, TISCO RINL produce Steel using the blast furnace/basic oxygen furnace(BF/BOF) route that uses iron ore , coal/coke has the basic input mix for producing finished steel ,Essar and Ispat employ Electric ARC Furnace (EAF) route that uses sponge iron , melting scrape or a mix of both as Input and JSWSL uses COREX, a revolutionary technology for making Steel using basically iron –ore and coal.

2) Other producers: This group consists of smaller stand –alone steel plants that include Producers and processors of steel.

Processors /enrollers: Units producing small quantities of steel (flat/long products)From materials procured from the market or through their own backward integration System.

Stand alone units making pi iron and sponge iron. Small producers using scrap – sponge iron combination produce steel ingots (for long

products) Using Electric Arc Furnace (EAF) or Induction Arc Furnace (IAF) route.

The Steel Industry, in general, is on the upswing, due to strong growth in demand propelled particularly by the demand for steel in china. The world scenario coupled with strong domestic has benefited the Indian Steel Industry.



2. COMPANY PROFILE

Kirloskar Ferrous Industries Limited (KFIL) is the youngest company in the Kiloskar group .The company is the large-scale industry to begin operation in the rural & industrially backward district of Koppal. It began manufacturing foundry Grad Pig in April 1994 Automotive Castings in April 1995. The company‘s Pig Iron & Casting are well known for their quality throughout the country. The company was awarded ISO 9002 Quality Certificate in January 1996 & was awarded QS -9000 in December 2001 the first QS -9000 certified company for manufacture & selling of pig iron in India . The manufacturing facilities at the company are of world standard & the market for its automotive castings is growing steadily.

All required environmental control equipments were planned at the planning stage Itself &are in operation now. This well within the limits prescribes Govt. authorities the pollutions. The success of this company is that industrially backward rural area has led to high –level industrial activity & it is not surprising that the new Koppal District has found its due place in the industrial map of Karnataka.

The company is located on the banks of Tungabhadra reservoir, near to the rich iron Belt of the Hospet – Bellary range, adjacent to NH -63 connecting Hospet –Hubli passing Through koppal & Gadag . The plant is 16K.m. From Hospet & koppal .NH-13 is connecting Chitradurga & Sholapur passes by the side of the plant (approx., 1.0K.m.) the nearest railwayStation is Ginigera is 5.0 Km away from the plant.

The industry was born with unique advantage of having behind the immense Accumulated experience of the group in the field of foundry business, at a time when the Deli censing and liberalization policies of the government were resulting in rapid growth in Automotive and liberalization and farm mechanization.

The plant has two mini blast furnaces of 350 MT capacity each, capable of producing 120,000MT/year. This amounts to a installed capacity of 240,000MT/year. The plant



Manufactures foundry grade pig iron suitable for automotive casting& other grades such As basic grade& special grade pig iron to meet the requirement of other steel industries. The plant has a foundry unit, quipped to produce 309,000 MT/year of Iron Grey casting for a Variety application such as cylinder heads & different types of Housings required by automotive sector tractor division, commercial vehicles& Diesel engine industries.

The company has engaged 873 direct employees & about 800 peoples are working Through contract for effective functioning of the day-to day activities, with an annual Turnover of Rs.2500 million per annum. Te Company is committed to achieve total Consumer satisfaction through adoption state –of-the-art manufacturing technologies &7 Processes with continue improvements. The company is also committed to improve quality of work life of its employees through improved work practices. The company is responsible for the coming up of many ancillaries present, there are around 20 ancillary units spreads Over koppal. The company has provided direct employment to about 1000 people & indirect Employment to about 10,000 people.

Iron ore is brought from the mine owners in the calibrated from Hospet & Bellary Iron ore within the distance of 50 Kms. Coke is mostly imported from China. Other Minerals like limestone, Dolomite, Manganese ore, Quartz etc., are produced locally.

Almost all foundries and pig iron users in the country are purchaser of pig iron from the company supplies quality castings to all renowned automobile manufactures like Mahindra Mahindra, & Mahindra Marti Udyog, Escorts, Tafe and Simpson to name few.

A . BACKGROUD AND INCEPTION OF THE COMPANY

History

The vision of MR. Laxmanrao Kirloskar, which is being respected worldwide for Engineering excellence, can be traced to have its beginning of having cast the casting of a Humble plough.

All through the passing years the kirloskar group has had a long & close relationship with the business with several group units specializing in the manufacture of high Quality ferrous and non –ferrous casting.

Kirloskar ferrous Industries limited was the unique advantage of having been Conceived with ideas accumulated through experience & expertise of the group in the Field of foundry business, at a time when the de-licensing and liberalization policies of the Government came forth in the year 1996 resulting in the rapid growth and farm Mechanization sectors.

The Kirloskar Group of companies:

Kirloskar in made up of 8 major group companies, who players in major sectors like manufacturing, oil And gas , power , construction and mining , agriculture, industry and transport each led by the engineering and managerial talent in India . In addition to Technology and communication. These 8 Companies are from the core of kirloskar group.

Each company is a renowned name in its own area of operation and is respected worldwide for its services and products.



Kirloskar Brother Limited (KBL) Kirloskar Ferrous Industries Limited (KFIL) Kirloskar Middle East FZE (KMEF) Kirloskar oil Engines Limited (kOEL) Kirlosker pneumatic Limited (KPCL) Kirloskar Proprietary Limited (KEPL

Kirloskar is also partner in joint venture with companies as Copeland Limited. This is a Joint venture between Kirlopskar Brother limited, India‘s leading engineering company And Copeland corporation of the USA, the world leader in air –conditioning and refrigeration Compressors. Also kirloskar Ebara and Toyota kirloskar Motors are prestigious joint Ventures.

Kirloskar Copeland Limited (KCL) Kisrloskar Ebara pumps Limited (KEPL)

Kirloskar has shaping capable managers and dedicated human beings at kirloskar education center for imparting knowledge to the managers of tomorrow.

B. NATURE OF BUSINESS CARRED:

The company manufactures the pig in three different grades, by Calibrated Iron- ore Brought from mine owners in the Hospet & Bellary Iron – ore within the distance of 50 Kms. Coke is imported from china.

Iron ore, Limestone, Coke & Dolomite are raw materials for the manufacturing pig Iron.

C. VISION, MISSION & QUALITY POLICY

VISION

’To become leader in pig iron & casting Business”.

MISSION

They become lowest cost, quality pig iron manufacturer amongst the secondary pig iron plants by

reduced coke consumption Improved productivity Increased power generation

‘’ To become preferred partner in casting business by;

Supply of quality castings. Faster new product development On time delivery.

Quality Policy:



The company is committed to achieve total customer satisfaction through adoption of state of the Art manufacturing technologies and process with continuous improvements. The company is also committed to improve quality of work life of its employees through improved work particles.

Customer Satisfaction: Maximization of customer satisfaction by consistent supply of Quality casting pig iron.

Supplies quality Assurance: provide technical support and guidance to their suppliers through quality assurance programmers to ensure highest quality of their suppliers it is a critical link in company quality system.

Employee development: Development and motivation of all employees by providing necessary training and support to bring out their full potential.

Product Excellence: continuously technical and managerial innovation and continuous improvement our endeavor is to push themselves till our company process and products are finest in the country and compare with the best in the world.

D.PRODUCT PROFILE:

The following are the three different grades of pig Iron manufacturing by the company. They are:

1. Foundry grade pig Iron

2. Spherical Graphite grade

3. Basic grade

KFIL products are in the beginning of the value chain. The major thrust is to “Drive down Cost” to retain competitive edge

Quality

Cost

Productivity

Process

Products

PIG IRON:



Pig iron is the basic input for making iron casting which finds its application in steel industry & other sectors of the economy. It can also be used in the change mix of the electrical are furnaces (EAFs) as a partial substitute of melting scrap. Pig iron mainly classified into tow glades.

Basic glade (which is used for making steel) Foundry glade (which is used of manufacturing iron

casting)

E.g. Glade which is used of manufacturing special steel India’s share in the total global exports is 4.51% in 1996-97 & the same increased to 7.14% in 1997-98.Global scenario of pig iron.

The demand for pig iron in the international arena has seen sharp rise. The total production of pig iron to 500 M.T. developed nations accounts for 45% of the total production. Seeing the potential demand many mills in USA such as NUCOR. NORTH STAR CASCADE STEEL & MAC STEEL is switching over to pig iron production.

Casting of Pig Iron Mould Shop

George Fischer makes high pressure moulding machine and auto mould handling system.

Type of moulding machine: Air Impact Plus Speed: 70 moulds per hour Box Size: 1250 X 900 X 400 / 400 mm. Core setting mechanisms: 2 nos. Sand Plant with capacity of 110 tons per hour with mold ability controller



The company’s products are used in the following industries:

Textiles

Pumps

Automobile

Pipes

Engines

Fans

Agriculture

Others

The above table represents the basic of products differentiation and the list of industries where these

products are used. Chemical composition of the product is the reason for production for different kinds of products. Mainly products are differentiated on the basis of silicon compensation. Company has got different kinds of customer varying between with high or low range of silicon contents.

“ keeping the wheels of progress turning in every way always that is , how we operate”

Product Mix:

Product/Grade Differentiator W.R.T. Chemistry

Application Industry (Examples)

F oundry Grade Si 2.0-2.5% General Engineering,Automobile, Sanitary, Castings

High Manganese Grade Mn>0.9% High Tensile Casting

High phosphorous grade P:0.2-0.4% Spun pipesHigh Silicon Grade P>0.5% Rodding Room Applications

High silicon Grade Si:2.5-3.0% Fan body

Ultra High silicon Grade Si>3.0% Rodding Room Applications

Spheroidal Graphite Grade p>0.08%,S<0.05% Ductile iron CastingsSpecial Spheroidal Graphite Grade

P<0.0%,s<0.025% Ductile Iron pipes, Automobile Engine Block

E. AREA OF OPERATION :


PARTICULERS PERCENT

Textiles 12%

Pumps 11%

Automobile 26%

Pipes 12%

Engines 6%

Fans 3%

Agriculture 10%

Others 20%


The area of operation of the company is global; it has its branches in other countries also . namely:

GLOBAL:

Indo- Malaysia Engineering Co., Malaysia Kirloskar Industries, Philippines Kirloskar Kenya Ltd., Kenya

The Main & subsidiary branch of the company is as under,

NATIONAL:

KFIL Main office address: REGISTERED OFFICE

Lax man Rao kirloskar Road

Khadki – pune 411003 (INDIA)

The main production unit of the company is situated in Bevinahalli (koppal District), which is surrounded by the rich resources, in terms of raw material, water, human resources & a transportation facility. The exact address is as follows,

REGIONAL:

KFIL ADDRESS:

Village : Bevinahalli

Post : Hitnal (PIN583234)

Dist : koppal

State : Karnataka

ZONAL LEVEL:

Zone A Karnataka Belgaum , shimoga, Bangalore

Zone B Andhra Pradesh Hyderabad , Vijayawada

Zone C Maharashtra Kolhapur,pune , Mumbai , Nagpur, Sholapur

Zone D Gujarat Ahmadabad, Rajkot ,surat

Zone E Rajasthan Jaipur

Zone F Delhi Delhi, Faridabad, Zodhinoor, Agra

Zone G Tamil Nadu Chennai, Coimbatore, Madurai



F. ownership pattern:

The kirloskar ferrous Industries Ltd.is public limited company. It has issued shares to the gereral public. It gives regular dividend to share holders.

Shareholding pattern of the company

Particular No.of shares Percent shares(%)Promoter HoldingIndian promoters 81132250 59.09Foreign promoters O 0.00Non-promoter holdings (Other than public)Financial institution/Banks 3569600 2.60Fll/Foreign Fin Inst/ Foreign Banks 48100 0.04Corporate Boodies 7480259 5.45Governmet Holding 0. 0.00OCB 0 0.00NRI 0 0.00Mutual Funds 5017833 3.65Other Foreign Holdings 1436610 1.05General foreign HoldingsGeneral public 27556598 20.07Individual holding upto Rs.1 lakh 10497453 7.65Individual holding Excess of Rs.1 lakh 558600 0.41Others 137297303 100.00

G.COMPETITORS INFORMATION:

As the company has got two kinds of products the competitors of the company are broadly divided according to their type of procurement. They are as follows,

FOUNDRY:

1. Ashok iron works pvt. Ltd.,2. DGP foundry 3. Nalcast

PIG IRON:

a. Kudhuremukha Iron Ore Ltdb. Kalyani steels Ltdc. USHA steels Ltdd. Sesa Goa Industries Ltd., Goa



e. Jindal vijayanagar Steel Ltd

H.INFRASTRUCTURE FACILITIES:

The following are the infrastrure facilities provided by the company. They are:

1.Power: KIFL has the following facilities for getting the required amount of power.

State electricity boards Two steam turbines / Generators (capacity3.5 mw each) using blast

furnaces gas as fuel. Kirloskar power supply pvt. Ltd is established adjacent to KFIL and has

the total installed capacity 19.5mw.

2. Water: Major requirements of water are being pumped from nearly Tungabhadra reservoir by laying a pipeline for almost 7km.

3. Transportation: It have a wide transportation facility, it has linkage with NH-63.

4. Hospital: A hospital is build to cater the medical needs of employees.

5. Canteen: The KFIL has a good canteen facility.

6. Furniture: In KFIL every department has well equipped furniture and computers.

AWARDS:

The following are certification of awards to the company. They are as under:

ISO – 14001 Certificate TS - 16949 Certificate National energy conservation award in 2007

ACHIEVEMENTS:

KFIL is the first among few in india to adopt state of our technology with CNC controller machines consistent quality of pig iron.

KFIL also records the project completion of MBF 1st within 18 months and 2nd MBF in 9months.

Capacity utilization of two furnaces has increasing 107%92000-2001) Reproduction in power consumption per ton of costing production.

WORK FLOW MODEL :


Entry of inward material


If weightment required if weightment not required

Found ok if damaged/shortage/excess

FUTURE GROWTH AND PROSECTUS:

GLOBAL SCENARIO OF PIG IRON:

The demand for the international has a sharp rise, the total production of iron estimated at 500mt. developed nation accounts for 45% of the production seeing the potential


Entry of inward material

STORES

Store Entry & Physical inspection

SE Report generating for a quality inspection Raise discrepancy note

Raise discrepancy note Inspection

If damaged/excess qty returned to

Party through NRGP

Any rework or modification Quality updation&GRR information

GRR prining singing &sorting

Stacking the material at appropriate location

Issue the material against the prescribed material requested slip with authorized signature

I.O.M by concern dept thorough purchase

Preparation of RGP for sending the material for rework

Raising the disturbance for rejection to inmate to purchase &supplier

Rejected material stored in rejection room

Material sent to party through NRGP


demand many mills in USA such as a Nucor, Norigstar, steel are swicing over to pig iron production.

GROWTH TREND OF PIG IRON SECTOR IN INDIA:

Before liberalization the pig iron industry was monopolized by integral steel plants to utilize the liberalization policy initiated by the government. Decline the pig iron production and paved way of helping the Ispt’s be utilize pig iron for making steel to gain Value addition

The integrated steel plant (IPS) s the major supplier of pig iron .public sector (ISP) contributes up to 90% of the pig iron supply.

GROWTH TREND OF THE COMPANY:

As the company is committed to produce quality products, it results in attracting more number of customers & to be the competition.

As per the infrastructure is concerned, the company has a well equipped & sophisticated infrastructure which helps the company to meet the customer demand in time.

By looking at the present infrastructure, skilled workforce, technology & emerging demand condition, company is planning to put one step ahead i.e.

By diversifying to steel manufacturing industry.

As the demand for the automobile’s are increasing the demand for the products of the company is also increasing, so the company has got a clear & bright future.

McKinsey’s 7-S FRAME WORK:

Introduction

Japanese first introduced this model. The 7-S model is better known as McKinsey’s7-S. This is because the two persons who developed this model. Tom peters and Robert Waterman,



have been consultants at Mc Kinsey and company at that time. They published their 7-s model in their article “Structure is not organization” (1982)’. The model starts on the precise that an organization is not first structure, but consists of seven elements:

Structure Skill Style Strategy System Staff Shared value.

They argued that when things went wrong, these Ss were manipulated to give a solution. Out of the 7, the three Ss across the top of the model are described as “Hard Ss” Strategy, structure and system. The 4Ss across the bottom of the model skills, staff, style, shard value are less tangible, more cultural in nature, and were termed ‘soft Ss’ by McKinsey. These are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in organization.

The McKinsey’s model is widely discussed framework for viewing the interrelationship of strategy formulation and implementation It helps to focus on attention on the importance of lining the chosen strategy to a verity of activates that can affect the implementation of that strategy. Originally developed as a way of thinking more broadly about the problems of organizing effectively the 7-S framework provides a tool for judging the strategies.

It is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a impact the hard structures, Strategies and systems of the organization.

STRUCTURE:


Structure

Strategy Systems

Shared values

SkillsStyle

Staff


It is the part for specialization and co-ordination. It comprise of the basis organization of the company, its departments, reporting lines areas of expertise, and responsibility (and how they inter-relate), and the way in which the parts of a thing are arranged or organized.

a) Overall organization structural –Board of Directors/ Functional heads etc.

b) Sub structure detailing with each functional discipline. Detailed study of various departments& their functions.

BOARD OF DIRECTORS

Mr.Atull c. Kirloskar Chairman

Mr.R.V.Gumaste Managing Director

Mr.Sanjay C.Kirloskar Directors

Mr.A.R.Jimenez Directors

Mr.C.V.Ticker Directors

Mr.S.N .Inamdar Directors

Mr.S.G.Chitnis Directors

Mr.A.N.Alawani Directors

The main them of the organization structure is comprehend all the possible Dimensions of the organization structure as in developing the ability to focus on these dimensions which are currently important to the organizations evaluations- and to be ready to refocus as a crucial dimensions shift.



THE ORGANIZATION STRUCTURE OF THE COMPANY AS FOLLOWS:


B.O.D

Sr.VP

GMIP GM.Foundry GM.HRM VP.MKT.&EDP GM.finance

DGMM

GM.QA Foundry GM.QA Foundry GM. Maintenance Sr.Eng, EDP

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM.QA Foundry

GM. Maintenance

GM. Maintenance

GM. Maintenance

GM. Maintenance

Eng.officer EDP

Sr.Manager

MGRMGR

Assists

A/C Office

Assists

Sr.mgr.Tr Dept MGR HRD

Chief Security

Medical officer

Office Admin

Training Assistants

Welfare officer Foundry Welfare officer Senior officer Officer Wages


1. HRM general Administration Department:

HRM & general Administration to do with people recruitment, induction, training & development, employee discipline & separation. This department is taking care of employee from his joining to separation. Department consciously cares for each employee right from induction to his performance recognition.

HRM and General Administration Department Structure:

The HRM department here at the company considers the employees the best fore & major resource of the company upliftment of employee’s an make growth are at the center of an organization philosophy of growth. This aims at providing a career in which the individual Can make the maximum contribution to the organization and employee standard of living.

Company has taken care of welfare b providing medical faculties and subsidized canteen facilities to all employees. Free transportation, The KFIL Club- Where all the employees and their family member’s recreation activities are carried out often.


Sr.Gen.Managr HRM and GA

SR.Manager

Admin

Manager PMU

Manager Environment

Safety Manager

Manger HR&IR

Manager HRD(payroll)

DY.Mgr. G.A& Security

Sr. Officer catering

Engineer Civil


11.PURCHASE DEPARTMENT:

The main function of purchase department is to purchase raw material after concerning with the production dept and storage dept of raw material is made depending on the demand of the pig iron in the market and orders from the buyers.

The main ingredients, which are prepared by the company, are as follows.

A) Ores: This includes iron and manganese ore, which are brought from the Hospet and Bellary Iron ore belt.

B) Fules: which includes low ash metallurgical coke as low ash content in Indian coke there, coke is imported from china and Japan fluxes are purchased from the Bagalakot and Nearby places they are totally cost about 150 lacks per month.

C) Others: consumable and spares, diesel furnaces oil etc these are purchased at required time and they cost about 50 lacks / per month(approximately)

111. STORES DEPARTMENT:

In the stores department the items are stored depending upon their time of utilization.

A) Slow moving: This includes the items which are ors, used very slowly or very rarely as per the requirements these includes such motors, insure spares capital items.

B)Non-moving: These items are purchased only at once items are fixed up to the liquidation of the company.

c)Fast moving : These items used and items are items are ms e stored at regularly intervals of time these items stored under this category includes raw materials, consumables spares, production consumable such as landing pipes hock mats, minimize and reordering quantity, mechanical spares such as oil seals bearing , drill bits etc.,

All the items, which are stored, are consumed on the basis of FIFO the items which are stored are utilized first depending on their requirements the items which are stored in stores are first inspected and after inspection tag is attached to that item.

. PRODUCTION DEPARTMENT:



An innovative technology from KTS (KORF TECHNOLOGIA SIDERVRGICA LTD) Brazil has helped has helped the company to design and develop a mini blast Furnace has come a long way and size entrepreneurs to produce more than 500 million tones of pig iron world over.

The company is among the first in India to adopt this of the art technology with computer Controls to produce consistent quality of pig iron .The company also boasts of a record of projects completion of electing the first mini blast furnace within 18 months and second blast furnace within 9 months.

Its has got uniform crystalline pearl tic structure it is slag free and made the riches of iron ore and imported coke. It is supplied to the company valued customer of the engineering industry who cater to automotive, tractor, textile, pumps, and spun pipe segments as well as the steel industry.

V.QUALITY ASSURANCE DEPARTMENT:

The company is committed to achieve total customer satisfaction through adoption of State of the art manufacturing technologies and process with continuous improvements. the company is also committed to improve quality of work life of its employees through improved work practices

Quality objectives:

The following are the objectives of quality assurance department. They are as under:

A) Customer satisfaction: Maximization of customer satisfaction by consistent supply of quality casting and pig iron.

B) Supplies Quality Assurance: Provided technical support and to our suppliers through quality assurance

C) Programmers to ensure highest quality of purchased materials suppliers it is a critical link in company quality system.

Quality system:

To provide guidelines to establish, Document & maintain a quality a means to ensure that product conforms to requirements. To outline structure of documentation in quality system. Trade line document the quality planning is done to meet the requirements of product.

Methods:

A. Quality Assurance Manual (QAM):

There is “TOP TIES” document primarily conveying the Organization’s commitment to quality & maximizing customer Satisfaction. This is maintained customer satisfaction. (MR). Maintains this as a reference document during. divisional produce & report procedure (HRM is Training) for reference.

B. Common procedure Manual (CPM):

This is second tier document prepared by MR. Issues these to all dept . heads for common procedure.



C. Department producer Manual (DPM):

This is also second tier document prepared by divisional Heads dealing how a job is done with responsibility specified department procedure of HRM &TRG are prepared by respective department heads.

D.Work Instruction:

This is third tier document primary to operate with specify work details there are generally issued by department or sectional heads & when required they are translated in vernacular language (Kannada).

A. Forms /Formats:Standard check seats supporting documents etc. these are primarily designed by departments taking into consideration.Production control requirements and issued to users who would be recording the status as a Monitoring sequence & this is used for verification & process / product quality

VI. SAFETY DEPARTMENT:

Safety department is mainly concerned with the safety of employees and the surrounding environment.

Safety function Chart

.


Managing Director

SBO- Foundry SBU-HRM and GA SBU-PIP

Sr. Safety Officer

Central Safety Committee

Safety committee Foundry Safety committee Gen Area Safety Committee PIP


Environmental: occupational Health and safety policy:

In accordance with the vision, “To be a world class product leader through a state of the art manufacturing technologies and process”

Manufactures of pig iron and castings are committed to protect to upgrade our environment and safety of human life through.

Systematic and cost effective method for waste management are providing safe and wholesale healthy environment to prevent accidents and occupational health hazards. Controlling all pollutants and hazards with in prevailing acceptable limits through best available technology, resources periodic reviews are helps to enabling continuous improvements. There is optimal utilization and conservation of resources through effective recycling and practices of reuse of those materials.

Complying with all applicable legal and other requirements of environments, occupational health and safety concerns. Improving environmental. Occupational health and safety awareness to all employees through training. Communication of this policy to interested parties for their participation and involvement to maintain the environmental, occupational health and safety norms.

VII. MARKENTIG DEPARTMENT:

The marking department is mainly focus on the activities of Marketing products, Pricing, Promotion and Distribution of products. These activities collectively called as 4 ps in marketing.

Products: The Company has following products in its product line.

They are:

1. Basic Grade Pig Iron.

2. Foundry grade pig Iron.

3. Spheroidal Grade pig Iron



Pricing:

The name “Kirloskar “itself is the mark of quality for the customer. The company has left the opinion of transporting pig Iron to the Buyers site to the Buyer. So one can buy the pig Iron at the company‘s site or can order.

The company has come across different prices terminologies.

They are:

List price Discount Allowance Payment periods Credit Term

List price is nothing but the selling price. It is also called as Basic Price.

Basic price=production Cost +profit

Production cost includes both variable cost and fixed cost.

If the transport is undertaken by the company then boarded price is calculated according to sites mentioned in receipt.

Recorded Price = Basic + Freight +CED (central Excise Duty)

A discount of RS.100 / -PMT is to the regular and bulk buyers.

Price of this company pi iron are comparatively more when compound to competitions, even with this more price also the company has succeeded in reaching top market share holding position in the pig Iron market & Foundry. People prefer this company pig Iron because the following reasons:

a. High qualityb. Fixed Chemical compositionc. Test Certificates are issued with every loadd. Almost 0% impurities & slag mix up

If customer demands for 2.25% silicon, Then the company will supply exactly wit this proportion, where as others supply with range between.2.25% silicon etc

In this company, pig Iron is melted once, almost 98-99% pure molten metal is obtained while as in it is size is almost comfortable for feeding into less opening firmness. The company brand



name helps in attracting customers From the above points is clear that the company is not using any mark penetrating pricing strategy to penetrate the market instead it is skimming price strategy.

PROMOTION:

The company has appointed number of dealers throughout India for its marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pig iron is sells.

Credit notes are given to these dealers for their commission. Pig iron is also sold on credit as one of the promotion tools to attract customers. Credit time depends on areas (less credit period is for North Zone) and order they give.

Distribution:

The company has got distribution network spread allover India in form of dealership and also through company’s employees, the company has divided its market into 7Zone:

Zone A Karnataka Belgaum , shimoga, BangaloreZone B Andhra Pradesh Hyderabad, VijayawadaZone C Maharashtra Kolhpur,pune,

Mumbai,Nagpure,SholapureZone D Gujarat Ahmadabad, Rajkot,SuratZone E Rajasthan JaipurZone F Delhi Delhi, Faridabad, Zodhinoor,AgraZone G Tamil Nadu Chennai ,Combatore,Madurari

Finance department:

Finance department will acts as major part of every industry. It is basic necessity of every organization and these controls in flows and out flows of funds in an industry.



The finance department is treated as the one of the most significant most depatrments.finaces are the basic necessity to run each and every single activity of organization.

Finance department Chart:

IX.ENVIRONMENT CONTROL DEPARTMENT:


GENERAL MANAGER (FINANCE)

DEPUTY GENERAL MANAGER

SENOIR MANAGER

ACCOUNTS OFFICER

ACCOUNTS ASST ACCOUNTS ASST ACCOUNTS ASST


“6 ‘c’+5’S’=Goals”

To achieve the predetermined objectives, the company made an environmental

Friendly policy i.e., “6 ‘C’ & ‘S’ model.

6 ‘C’ Models

1. Cost effective waste management 2. Communication to interested parties3. Control of pollution within prevailing norms4. Compliance to legal requirements5. Conservation of resources6. Conduction training to all employees

5 ‘S’ Models

1.seri – sort (separate unwanted and waste)

2. Seiton – store ( a place for everything and everything in its place)

3. Seiso- Clean (to keep things shining)

4.seiketser- Maintain(orderliness of things)

5.shitsuke- Statuesque(training and discipline)

2. SKILL:

It consists of the capability and competencies that exit within the company. It is the talent, craft or accomplishment, naturally acquired or developed through training and abilities appropriate for a specific job. The employees need to have both specific as well generic skills. Generic skill mean problem solving skills, decision –making skills, communication etc.Specific skill like time management, shop floor management, building teams , leadership and motivation, creativity, advance safety and environment, industrial safety and environment.

3. STYLE:

This includes the leadership style of top management and the overall operating style of the organization. Style impacts the norms people follow and how they work they work and interact with each other and with customer.

the management training is totally democratic there are no restrictions to any employee to express his opinion. The company has got open door policy any level of employee can meet directly to his superior or managing director without any hesitation.

Strategy refers to the systematic action and allocation of resources to achieve the companies aim. The integrated vision and direction of the company as well manner, in which it drives, articulate, communicates and implements that vision and direction. It can also be defined as the choice of direction ad action that the company adopts to achieve its objectives in a competitive situation.



4. SYSTEM:

Systems are formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the point of contact with the customer. Finance department is doing enough to properly plan and control the funds. There is regular program verification.

IN the company is followed purely on basis of merit basis. Promotion will be given on the basis of pure merit system.

The company follows inventory control system,

Raw material will be held in the stores for 15 days only. Finished goods will be held in the stores for 2 days.

5. STAFF:

IT refers to the people working in an organization. The company‘s people resources and how they are develop, trained and motivated. The process of staffing includes various processes like recruitment and selection procures, training etc. It refers to how the people are developed, trained, socialized, integrated, motivated an how the employee’s career is shaped in an organization.

Technical staff:

These are the staffs they are responsible for the work related to technical aspect. In this company they are appointing well- qualified and experienced persons as technical staff. So these staff will have good knowledge about the working environment.

Supervisory staff:

These are the person who is I n chare with supervising the other employees in the organization. In this company they are employing experienced staff as supervisor. So they can observe the fellow workers and guide them as per the companies need. The experienced supervisors are one of the key assists of this company.

Clerical staff:

These assets are responsible for the office work. These people are the backbone of the company. If they work well, it will be an asset to the company. In this company they are employee will & qualified employees for office work. These staffs are working together for achieving companies objectives.



Man power:

Designation No. of employees

Managing Director 1

General manager 2

Sr./corporate V.P. 1

Department general manager 10

Senior manager 5

Manager 20

Dept. Manager 30

Sr. Engineers/ Sr.officers 92

Engineers/ officers 24

Asst. officers 12

Charge Men 49

Assistants 64

Operator 523

Total- 833

6. STARATEGY:

Strategy refers to the systematic action and allocation of resources to achieve the companies aim. The integrated vision and Direction. It can also be defined as the choice of direction and action that the company adopts to actives its objectives in a competitive situation.

WASTE CONTROL STRATEGY:

In order to survive in the market company follow waste control strategy the company maintains all the materials in a systematic & in a scientific way, the best example is , company generates electricity by making use of the waste gase.ie. Co2 production during the production process.

Pricing of kirloskar:

The name “kirloskar” itself is the mark of quality for the customer. The company has left the opinion of transporting pig iron to the Buyers site to the Buyer. So, one can buy the



pig opinion of transporting pig Iron to the Buyers site to the Buyer. So one can buy the pig Iron at the company Site or can order.

The company has across different price terminologies/rice Strategies. They are as follows:

1) List price

2) Discount

3) payment periods

4) Credit terms

5) Seasonal pricing

6) Area wise pricing

7) Pricing on demand

A discount of price Rs.100/- PMT is given to the regular and bulk buyers.

Price of the company’s pig iron has succeeded in reaching top market share holding Position in the pig iron market & foundry. People prefer their company pig iron because of the following reasons.

High quality Fixed chemical composition Test certificates are issued with every load Almost 0% impurities & slag mix up.

7.SHARED VALUES

If refers to the core or fundamental values that are widely shared in the organization and serve as guiding principle that are important. These values have great meaning because they focus attention and provide a broader sense of purpose.

Value s are thing that you would strive for even if they were demonstrably not profitable. Values act as an organization’s conscience, providing guidance in time of crisis.

The values and beliefs of the company untimely they guide employees towards valued behavior. It refers to the simple goal statements in determining corporate destiny to fit the concept;

As per the value of the company “Let’s make everyone’s life, an enriched one” the company has implemented many techniques to see that this values are implemented.

The company tries to satisfy every which is dependent directly or indirectly with it. The company has sponsored many schools and colleges through the trust started by.



The company tries to satisfy employees, shareholders, customers, government, families of employee, community

SWOT ANALYSIS

SWOT analysis is the analysis where the strengths ,weaknesses, opportunities and threats of the company , strength and weakness are the internal of the company , It can be controlled by the company ,where as opportunities and threats are the external of the company , which cannot be controlled by the company.

STRENGTHS :

The company has some its own strengths and competencies. They are as under:

It is suited on the bank of river Tungabhadra. Availability of rich iron ore from the iron belts of Hospet and Sandur. Market leader I quality. Low power cost in manufacturing. Good brand image in the market. Wide distribution network. Only foundry in India with backward integration of pig iron plant. Deliver to customer as per schedule Low cost of production by use of Russian technology (Hot Blast Stove) Near to the transportation- railways as well as road transportation Quality is established presence in all market eastern Zone, reasonable transportation

facilities available for all area 25% of production is tied up with institutional customer.

WEAKNESS:

Everyone should have its own weaknesses like this company also has some weaknesses. They are:

Transportation problem during harvest season Non-availability of adequate water during the summer season. Company is facing pollution for coke. Highly dependent on China for coke. High coke consumption due to higher fines and handing costs due to multiple handling. Poor market share in eastern and northern part of the country.

OPPORTUNITIES:

The company has some opportunities in future for its growth . they are mentioned as under:

The company has a good share in the market. The company has opportunities to tie up with customers.


StrengthStrength

Opportunities

Weakness


Huge land availability for future expansion. Strong financial position makes it possible for the company to adapt new Technology in its operation. Chance of government restricting the export of iron in future encourages Indian steel

factory. As the company good market edge, it can market 20000 per month of foundry grade pig

iron every month. Possible tie-ups with major foundries in Gujarat market.

THREATS:

The company has some threats by competitors, market environment and some legal & political changes. They are mentioned under:

New foundry grade production entry Increase price I coke New constricts in market Imposition of sales tax and VAT. Non exclusively with dealers Therts of using substitute products like plastic and fiber. Many new steel industries are being raised like mushrooms hospet and Koppal, which

may in decline in demand for KFIL. Products.

Kirloskar Ferrous Industry Limited



BALANCE SHEET AS AT 31ST MARCH 2009-2010

Rs 2009-2010 2008-2009SOURES OF FUNDS :

a) Share capital 1 686,486,515 686,472,395b)Reserves and surplus 2 2,578,965,505 2,286,556,615C)convertible warrant application money pending allotment into equity shares 299,355 6,300

3,265,751,375 2,973,035,3102.Loan fundsa)secured loans 3 62,857,142 188,571,428b)unsecured loans 43.Deffered Tax liability 319,113,921 315,017,205 TOTAL

APPLICATION OF FUNDS1.Fixed Assets 5

a) Gross block 4,723,247,214 4,315,723,814b)Less:deprecition 1,916,376,824 1,661,191,384c)Net block 2,806,870,390 2,654,532,430d)capital work in progress 575,860,546 634,150,735

3,382,730,936 3,288,683,1652.INVESTMENT 6 100 1003.CURRENT ASSET,LOANS&ADVANCES A)current Assetsa)inventories 7 1,427,048,942 576,625,481b)sundry debtors 8 889,480,120 691,951,063c)cash and bank balance 9 166,602,072 126,761,048

2483.131,134, 1,395,337,592

A)loans and advances 10 364,156,379 405,055,050(A) 2,847,287,513 1,800,392,642

Less: current liabilities &provision

11

a)current liabilities 2,272,338,150 1,439,744,539b)provisions 309,957,961 172,707,425

B) 2,582,296,111 1,612,451,964Net current assets (A)-(B) 264,991,402 187,940,678 TOTAL 3,647,722,438 3,476,623,943



Kirloskar Ferrous Industries Ltd’.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009-10.

PARTICULARS Rs 2009-2010 2008-2009Income Sales & operating income 7,925,196,285 7,215,783,901Sales of by products 821,909,199 680,858,020

8,747,105,484 7,896,641,921Less: excise duty education cess

677,236,544 905,248,050

Net sales 8,069,868,940 6,991,393,871Other income 12 102,271,571 50,868,417

8,172,140,511 7,042,262,288EXPENDITURE Material consume 13 5,795,216,937 5,254,587,096Employee remuneration &benefit

14 327,716,178 306,523,046

Operational, selling &administrative expenses

15 1,025,537,480 929,726,137

Interest 16 60,593,255 117,274,684Depreciation 5 259,645,081 230,400,407

7,468,708,931 6,838,511,30Profit for the year 703,431,580 203,750,918Profit period expenses(NET) 797,780 1,028,868Profit before tax 702,633,800 202,722,050Provision for taxation:Deferred tax 4,096,716 86,066,912Fringe Benefit tax - 1625,000Current Tax 288,220,395 22,588,298Less: min Alternate Tax credit entitlement

20,530,395, -

Fringe benefit Tax 1,625,000Current tax 228,220,395 22,588,928Less: min Alternate Tax credit entitlement

20,530,906 -

Wealth Tax 168,586 161,641Short provision for earlier year

- 12,792,009

Profit After Tax 490,679,009 79,487,560Balance brought forward from previous year

298,584,683 337,138,017

AppropriationTransfer To general Reserve 50,000,000 -Excess provision for tax dividend written back

(32,246,635) -

Proposed dividend 201,787,930 100,893,965



Tax on proposed dividend 34,293,859 17,146,929Balance carried to Balance sheet

540,908,853, 298,584,683

789,263,692 416,625,577.

LEARNING EXPERIENCE



My experience in Kirloskar Ferrous Industries Limited enriched my knowledge. To start

with, KFIL is an industry where human resource and technology come together to manufacture

products that gain worldwide recognition. Strategically situated at Bevinahalli, (Dist.Koppal).

My overall experience in the company was very pleasant. The response & support got

from the management & staff was appreciable. I would like to mention the name of Mr. Pavan

maharishi who guided me in this project. The atmosphere & working conditions were

encouraging in the company.

During the first week, it was totally a new experience entering into the organization. On

the first day of the training, factory manager detailed us very clearly about the company &

guidelines to be followed with respect to maintaining the discipline of the organization and also

informed the safety measures.

Ten weeks of project training in the company helped me to know the practicalities. I

learned about management and the supply chain management from the practical perspective & I

learned about organization as to how it works in management aspects & the policies &

procedures. Totally it was a highly useful training for me in the company. This has added value

in my academic learning.

There was a good relationship between the superiors and

subordinates. I understood the practical aspects of supply chain management of KFIL.There is a

accurate similarity between the theoretical aspects of supply chain management with the

practical aspects in KFIL.I understood the activities of all the departments which comes under

supply chain management of KFIL.

The success of organization is the result of Co-ordination

between the management and workers.



A.GENERAL INTRODUCTION:

If a company makes a product from parts purchased from suppliers, and those products are sold to customers, then the company has a supply chain. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured. A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer. Elements of the Supply Chain are customer, planning, purchasing, inventory, production, logistics departments of an organization.

Improving business performance is a journey not a destination. Supply chain management systems (SCM) are then combination of many of the receding applications and are used to span the stages in the supply chain. SCM systems allow for a more global scope because they can scan many supply chain stages with different modules. For instance, supply chain management would come with demand planning, transportation planning and inventory planning. “supply chain is a network of facilities and distribution options that performs the functions of procurement of materials into intermediate and finished products and the distribution of finished products to the customers.

Characteristics of supply chain:

Supply chain having a national wide network of company depots to facilitate servicing its large network of dealers.

A strong commitment to effective supply chain cost control without compromising the service level.

Effective inventory control of credit outstanding. Total computerization of the supply chain management system.

Planning in SCM

Objective of planning is to identify following operational parameters for a specific time frame.

Production Rate: The no:of units produced per plant in a given time period. Workforce: The no:of workers/capacity unit required for production. Machine Capacity: The no:of units of machine capacity needed for production. Over Time: The hours of overtime. Subcontracting: The subcontract capacity required over the planning period. Blacklog: demand not satisfied in the period in which it arises but carried over to future

time periods



Process of supply chain management

This involves four processes

Procurement Manufacturing Replenishment Customer order

propp

1. Procurement: It takes place by the interface of manufacturer and supplier. In this

manufacturer orders components from supplier that replenish the component inventories.

2. Manufacturing: This is triggered by customer orders replenishment orders from a retailer

or distributor or by the forecast of customer demand and current product availability in the

manufacturers finished product warehouse.

3. Replenishment: It occurs directly from manufacturers’ production line. It is similar to

customer order except that the retailer is now the customer.

4. Customer order: It involves customer arrival, customer order entry, customer order fulfillment, customer order receiving.


Procurement Manufacturing Replenishment Customer order


Supply chain management

SCM is larger in scope than both physical distribution and marketing logistics. It encompasses materials management task as well. Supply chain actually refers to whole business chain, encompassing procurement of inputs, inbound logistics, conversion of inputs into products, physical distribution / market logistics and channel functions, which finally take the end product to the ultimate consumers essentially, SCM can be viewed as the combination of materials management and end product distribution, which constitute the two vital components of the business process and form the key tasks at the front and back ends process, respectively.

It can be seen that the supply chain is in effect the firm’s value chain is actually spread through the firm’s supply chain. A firm can optimize its total customer value by managing activities in the supply in an integrated manner, treating them as one continuous chain. The supply chain constitutes a value delivery network. That’s why it is often said that firms compete in the market place using their supply chains as weapon, not their products and brands. Superiority in supply chain is thus a major competitive advantage. A firm with the better supply chain wins the market. We have discussed the value chain concept in detail in the two chapters on industry analysis, and competitive advantage. Taking note of the advantage in dealing together materials management and physical distribution of end products, which constitute the two major functions at either end or which form a virtual chain permeating the business from end to end, many experts have preferred to combine the two subjects and deal SCM.

The SCM approach, no doubt, has some merits, it facilitates the integrated handling of the functions of the business, especially the procurement function and the logistics functions at the front and the back ends of the business. As a result, it comes handy in value creation/value addition.

The approach, however, has strong demerit as well. It gives prominence to materials management and treats the customer requirements of logistics as an appendix to the business cycle. The requirements from the side of the customer/market get diluted in such an approach. Moreover, in the nature of things, the focuses as well as requirements of materials management and physical distribution of end products are somewhat different from each other. Perhaps all things considered, the two subjects should be studied independently, rather than as one unified subject.

Confers place and time utility of products:



It is physical distribution that confers place- utility and time utility to a product by making it available to the user at the right place and at the right time. There by it maximizes the chance to sell the product and strengthen the company’s competitive position.

STATEMENT OF THE PROBLEM:

” To study and analyze the effectiveness of supply chain management at Kirloskar Ferrous

Industries Ltd” .

OBJECTIVES OF THE STUDY:

o To study the effectiveness of procurement at KFIL.

o To study about production process at KFIL.

o To study the effectiveness of inventory at KFIL.

o To study about marketing policy at KFIL.

o To study about distribution network at KFIL.

1.4. SCOPE OF THE STUDY

The scope of the study is restricted to Kirloskar Ferrous Industries Ltd.

It helps us to understand the various departments of KFIL which comes under Supply

chain management. . .

The study will help to know the effectiveness of Supply chain management system.



METHODOLOGY

Information SourcesThe information has been compiled from various authentic and reliable sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments.

There are two sources which data can be collected

Internal Source or Primary Data

External Source or Secondary Data

Primary Data

A survey method consists of gathering data by interviewing number of people selected from a large group. A survey has advantage of getting to original source of information. In this method the researches obtains information from the Respondents by interviewing them. This is the most common method of getting primary data.

A questionnaire is the medium of communication between the investigator and respondents. The success of an investigation depends on the forming of the question. In this method questionnaires consisting of a list of questions pertaining to the survey in prepared.

Secondary Data

The secondary data are these which are already collected by someone for some purpose and are available for the present day for instant, the data to the department of the senses and the same data of used by a research worker for same study are secondary data. Secondary data was collected from the companies internal source like newspapers, magazines and external information from internet for the purpose of study.

LIMITATIONS OF THE STUDY

1. The study is limited to supply chain management of KFIL.

2. Project period was 10 weeks so there was time limit to complete project before given

span of time.

3. Due to the confidentiality few data could not be collected relevant to topic.



B.1.ANALYSIS OF SUPPLY CHAIN MANAGEMENT (SCM)

All activities that are connected with moving Goods from RAW MATERIAL stage through various operations to the ultimate CUSTOMERS & END USERS.

ELEMENTS OF THE SUPPLY CHAIN MANAGEMENT

A SCM is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customers.


SUPPLIERS

PRODUCTION

INVENTORY

PLANNING & PURCHASING

CUSTOMERS

LOGISTICS & DISTRIBUTION

CUSTOMERS


CUSTOMERS:

The Customer starts the chain of events when they decide to purchase a product that has been

offered for sale by a company. The customer contacts the sales department of the company,

which enters the sales order for a specific quantity to be delivered on a specific date. If the

product has to be manufactured, the sales order will include a requirement that needs to be

fulfilled by the production facility. Customer is the starts and ends with the supply chain

management in KFIL.

Suppliers

Global & domestic suppliers and negotiated contracts are decisions made at a company level to take advantage of the company’s global buying power. This offers considerable cost savings, but local sites may have to make operational decisions with suppliers to ensure an efficient supply chain. In some instances local negotiations with global suppliers are required to ensure quality of the product. For example, in some countries the quality of the product produced by a supplier is not at the same level as other countries. The local management would have to make an operational decision to negotiate with the supplier for them to create a product with a higher quality to ensure the quality of the finished product

MAJOR RAW MATERIALS OF KFIL

RAW MATERIALS PER DAY DUMPING AT KFILCoke 700- 2000Mts Iron ore 500-2000 MtsDolomite 50-200 MtsLimestone 50-200 MtsManganese ore 10-50 MtsQuartzite 10-20 Mts

RAW MATERIALS

KFIL uses the richest grade of Iron ore deposited in the surrounding area like Sandur, Donimalai sector near Hospet. It uses high quality imported Coke from Singapore/Hong Kong.

Consumption of raw materials per day

RAW MATERIALS PER DAY CONSUMPTION IN TONNESCoke 1700Iron Ore 1650



Dolomite 75Limestone 95Manganese Ore 15

Suppliers of raw material to KFIL

Raw material Supplier PlaceLAM-Coke IMR Metallurgic Resources

Noble M R pte ltdSkim industries ltd

Hong KongSingaporeColumbia

Iron Ore Trimax SandurVSL-A-Block SandurVSL-C-Block SandurV.S.Lad Mining company SandurRaj lakshmi minerals HospetTML(Tungabhadra Minerals Ltd) SandurMSPL(Minerals Sales Private Ltd) HopsetBMM(Bellary Mining Minerals) BellaryJMV(J.M.Vrishavendra) HospetGuru Rajendra Trading Company Sandur

Dolomite Sharada Cement concrete Works BhagalpurVadiraja Minerals Ltd Bhagalpur

Manganese Ore Adarsha Enterprises SandurSMIORE(Sandur Manganese & Iron Ore Ltd)

Sandur

Limestone Sharada Cement Concrete Works BhagalpurVadiraja Minerals Ltd Bhagalpur

Quartzite Sri Sharanabasaveshwar Quartz Mining Koppal

Planning

The requirement triggered by the customer’s sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer’s orders. To manufacture the products the company will then have to purchase the raw materials needed

In they have a good planning from the top management. The planning process starts from the CUSTOMER SERVICE DEPARTMENT (CSD). The CSD will plan to take a Raw material from the suppliers to adequate requirement of the different manufacturing units.

KFIL now have a plan to establish recent technology and advance machineries.



PURCHASING:

Purchasing department is the one of the part of the supply chain management. Its inter connection between the Planning and Inventory Department. It purchase the Raw materials like, Iron ore lump, lime stone, dolomite, quartzite, manganese ore and coke. In KFIL, the RAW MATERIAL HANDLING SYSTEM (RMHS) is the backbone of this industry.

The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date.

Steps of Purchasing Process

1. Indenting: Indenting are the starting point for purchase activity. This is the raising of demand by concerned division or department, which can be production, maintenance, construct ion, design, or any user department

2. Tender Inquiry: After receipt of approved indents in purchase, appropriate tender inquiry is issued to suppliers, Inquiry mentions all technical details, quantity, delivery period required.

3. Receipts of offers: against inquiries, suppliers offers or quotations are received in tender box. These offers are opened on the specified date & time.

4. Evaluation of offers: All the offers received are evaluated by user, offers are usually invited in two bids i.e., technical bid & price bid. only after the acceptance of technical bid, the price –bid envelope is opened.

5. Comparative statement preparation: after evaluation of all offers a comparative statement is prepared by purchase of the offers which are found technically and commercially acceptable. After comparison, offers are ranked L-1,L-2…..in order of lowest prices increasing upwards.

6. Negotiations: it is held by a tender committee or purchasing committee after negotiation, detailed minutes are drawn between purchaser and supplier on agreed terms and conditions.

7. Release of purchase order: after finalization of all terms and conditions, a formal purchase order is released on the supplier, whose offer is lowest are accepted.LOI (Letter of indent) is released through fax or letter till formal order is issued.

8.9. Monitoring the execution of order: An acceptance letter is obtained from supplier,

indicating its total acceptance of purchase order/LOI terms.



10. Inspection of material: Necessary inspection is arranged by deputing quality control representative to suppliers’ work, before the material is dispatched. After receipt of material at stores or purchasers works, goods are again inspected to know of any discrepancy in suppliers or any damages in transit.

11. Release of payment: it’s the responsibility of the buyer to ensure prompt release of payment to the sellers, in order to maintain good buyer-seller relationship.

INVENTORY

The inventory includes the raw materials, work in process and finished goods which should be maintained in an optimum level.

The KFIL Company has a better management of inventory the company has provided sufficient place for storing the raw materials and finished goods within its premises.

In KFIL inventories are maintained at optimum level on the basis of their frequency of usage, requirement of the material, critically of the materials, and time required for purchasing the material etc. The company maintains better stock of raw materials as it is not a small achievement because raw materials are back bone of this industry.

In case of issuing raw materials to the production department the KFIL follows traditional method i.e. FIFO method means First In First Out.

PRODUCTION:

Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested, they are stored back in the warehouse prior to delivery to the customer.

PROCESS:

The extraction of cast iron from haematite ( Fe203 ) involves following steps:

1. Concentration or dressing of Ore:

The Ore is crushed to small pieces 3-3.5 cm size screened and shifted. This removes most of the gangue.

2. Roasting or calcinations:The concentration ore roasted with little of coke in shallow kitns in excess of air, where following reactions takes places.

The Process of roasting involves:



a) Removing of moisture and CO2 b) Oxidation of Sulphur, Phosphorus & arsenic to volatile oxide & are thus removed.c) Oxidation ferious oxide to ferric oxide which does not form slag of FeSiO3 with

SiO2 during smelting while FeO forms Slag. This prevents the loss of iron during smelting.

d) Makes the whole mass porous & thus reduction of Fe2 O3 to spongy iron is facilitated.

3. Smelting in blast furnace:

The charge consisting of 8 parts of roasted ore, 4 parts of desulphurised coke and one part of lime stone is carried to the top of the furnace by a upper cone of feeder, it is lowered to admit the charges into air lock. Subsequently the upper cone is raised there by closing the furnace top and the lower cone is lowered to admit the charge to run down the furnace. This arrangement prevents the escape of gases during the process of charging. As the mixed charge descends through the furnace, the furnace is lit and a hot blast of air is admitted through tuers. Heating of air is done in a series of copper stoves.

The various reactions takes place in the blast furnace are as follows:

a) zone of combustion:it is the lower part in the furnace. In this zone combustion of coke takes place forming CO2. A lot of heat is produced in the process. Here temperature is about 1773k.C+O2-CO2 JH =406 KJ

b) zone of heat absorption:as co2 raises up, it reacts with more of carbon and reduced to co. this reaction is endothermic and the temperature lies between 1073-1273kco2 +c-2co H =153kj

c) zone of heat absorption:It is the upper part of furnace where temperature lies between 679-973k here the charging moving down is reduced to spongy iron by the co gas rising up.Fe2o3+3co-2fe-3co2This reaction proceeds in the following stages:Fe2o3-co-2f2oFeo+co-fe+co2Both the reactions are exothermic in this zone small amounts of phosphates present in the ore are reduced to phosphorous.

4. Zone of absorption:When the sponge iron falls this zone limestone decomposes to co2 and cao limestone obtained acts as a flux and reacts with silica (sio2)present in the ore as impurity to form as slag if calciumCaco3-cao+co2Cao+sio2-casio3



5. Zone of fusion:When the sponge iron falls down gradually through hotter portion of the furnace, it undergoes fusion and dissolves some carbon, phosphorous, silica, manganese. The molten iron collects at the bottom of the furnace, while lighter slag floats on the surface of the molten iron and protects it from further oxidation. The molten iron and slag are separately and periodically drawn through separately tapping holes the iron which is tapped off from the furnace is an impure vanity of iron known as pig iron. It contains 2.4% - 4.3% carbon in addition to small amounts of Mn, Si, Sp.

The waste gases leaving the furnace at the top contain about 9%co2, 25-35%co and about 50-65% nitrogen and small amounts of hydrogen.

BLAST FURNACE CONSISTS OF FOLLOWING SECTONS:

1. Stoves 2. Stock house3. GCP gas cleaning plant4. PCM- pig casting machine

MINI BLAST FURNACE (MBF)

The main parts of MBF are as follows:

1. Bleeder valve2. Uptake3. Rotary hopper4. Down comer5. Charging hopper6. Top gas cooling ring7. Shell cooling ring8. Shell cooling water trough9. Bustle pipe10. Blow pipe11. Tuyere holder12. Tuyere cooler13. Tuyere14. Mudgon control room15. Dust catcher16. Load distributor17. Tuyere cooling return water18. Shell cooling return water19. Rotractory lining20. Thermo couples at different evolutions



MANUFACTURING PRODUCT OF KFIL

Four Types of Pig Iron is manufactured at KFIL

1. Foundry grade.2. S.G. Grade (spherical graphite).3. Basic grade.4. High Mn foundry grade.

Foundry Grade PI S G Grade ( Spherodical graphite)

Carbon : 3.8% - 4.2% Carbon : 3.8% - 4.2%

Silicon : 2.0% - 3.5% Silicon : 1.5% - 2.1%

Manganese : 0.5% - 0.9% Manganese : 0.3% Max

Sulphur : 0.06% Max Sulphur : 0.03% Max

Phosphorous : 0.10% Max Phosphorous : 0.08% Max

Basic Grade PI High Mn Foundry Grade PI

Carbon : 3.8% - 4.5% Carbon : 3.8% - 4.2%

Silicon : 1.20% - Max Silicon : 2.0% - 2.9%

Manganese : 0.4% - 0.9% Manganese : 1.0% - 1.5% Max

Sulphur : 0.08% Max Sulphur : 0.06% Max

Phosphorous : 0.12% Max Phosphorous : 0.10% Max

Quality : KFIL’s Pig Iron is best available pig iron in the market.

KFIL = ( Leader ) in Pig iron quality.

Design : 7 Kg – 1 Pig iron piece.

KFIL BRAND : Logo / Trade mark used only in Pig iron casting do not carry any logo except the identification mark.



FLOW CHART OF MANUFACTURE OF PIG IRON AND CASTING

WAREHOUSE


RMHS

Mini Blast Furnace

Raw material like Coke, sand

& Lime Stone

Pig Iron

Iron Casting

Casting cleaned & checked

Steam Formation Boiler

CO GAS

Steam Turbine Power House

Electric Power

Co Tank Burnt

Pig Iron Pellets

Mould & core Preparation Sand Plant

Sand Recycled

Electric power

Pig iron


Ware house is the godown which takes responsibility of keeping and storing goods and provides ancillary service in order to help the small and medium sized traders and manufacturers.

Functions of Warehouse: To keep the goods in a safe custody till they are claimed back by their owner. To preserve the goods, so that they do not lose their value, quality and usefulness. To undertake these duties against prescribed charges known as rent, paid by the owner of

the goods. Offers facilitates of packing, grading, packaging etc.

Merely there is ordinary ware house at KFIL which takes the responsibility of keeping, storing and preserving the goods against fixed charges.

WAREHOUSES OF KFIL

1. Khadilkar sales and services, Ahmedebad2. Pig lift and shift, Ahmedebad3. Rajkot engg associates, Rajkot4. S.M.Industrial Suppliers, Bangalore5. A.K.Enterprises, Hyderabad6. Sridevi Engg. Agency, Vijayawada.7. Supria Traders, belgaum8. Ganesh Trading company,Ludhiana9. Dhanalaxmi Enterprises, Coimbatore10. Atul sales,Agra11. S.B.Enterprises,Nagpur

KFIL MARKETING POLICY



In the direction of achieving the company’s mission of “designed to scale new heights”. The marketing team pig iron plant (PIP) endeavors for maximization of sales and realization for the company’s product while meeting the customer’s requirement to their all round satisfaction.a. Aim for 100% customer satisfaction by meeting all the requirement of the customer

viz., quality delivery etc.b. To achieve business excellence and stand No.1 player in the market supplying the

best quality material to the customer at the right time.c. To market and sell the entire production of the month during the same month keeping

only a day inventories as closing stock.d. To maximize sales in high realization zones and to go to low realization zones only

its case of necessity but still maintain same minimum scale in low realization zone to avoid being out of market.

e. To establish a wide marketing network consisting of head office/ branch offices and dealers/distributor to service the market.

f. To have well trained and developed marketing team capable of meeting the marketing objectives of the company

g. To constantly track the market to observe the changing scenario and act accordingly.h. To constantly track competitor activities to develop a competitive edge over the

competitors.i. To establish transport and fair policies with uniform applicability to all concerned.



KFIL’S MARKETING CHANNEL

Mainly the marketing of pig iron from KFIL is done by 3ways1. Direct sales2. Sales through branches3. Sales through consignment agents

1. Direct sales: In case of this sale only those companies are allowed to do transaction who is ISO-9000 certified. Because they are bounded to purchase raw material only from ISO-9000 certified manufacturer.

Direct sales between the companies

Company Name PlaceBFW(Bharat Fritz Werner Limited) HosurISICOS(Iron & steel society) BangaloreYuken- INDIA BangaloreL&T (Larsen & Toubro) Kansbahal(Orissa)SPR(Sri Ram Pistons & Rings) Ghaziabad

2. Sales through branches: In this type of sale, the branch offices send information to KFIL about the requirement of pig iron. According to the information KFIL after completing all the formalities, transport the pig iron to branch office and branch office customer collect the pig iron as ordered.

Four branches of KFIL1. Delhi2. Ahmedabad3. Coimbatore4. Kolhapur

3. Sales through consignment agentsIn this type of sales, order of purchasing pig iron and quantity is mentioned to KFIL by consignment agent. After completing the formalities KFIL transports the pig iron to the agents. KFIL constitute 70% sale of pig iron through consignment agents.

List of dealers

Sl.no Name Place1 Rajkot industrial supplies Bangalore2 Sri Laxmi Narasimhaswami agency Secundrabad3 Sridevi Engg. Agency Vijayawada4 Supriya Traders Belgaum5 Ganesh trading Comppany Ludhiana6 Atul Engineering Faridabad7 S.B. Enterprises Nagpur



MARKETING PROCESS AT KFIL

ORDER GETTING

Verbal orders written Orders

After dispatching/ before dispatching if Advance pay after collection dispatches

Monthly/ daily sales plan


Customer / Dealers

Branch

Marketing section

Dispatch section

Dispatch plan

Customers

Transporters to place

Loading / Invoicing

Customers


MARKETING PROCESS:

Usually in marketing process starting point as well as ending point is a customer likewise at KFIL also customer is starting and ending point.

1. Order getting: This is the first step in marketing process. Order is given verbally and written as well, where 90% of order is given verbally and 10% order is given written. Order is got from customer and also through dealer.

2. Next step: Is that the order is given to branch manager or head quarters. In this stage consideration is taken that is credit purchase or cash purchase. Here credit period is given if there is credit purchase. After dispatching credit period and collection takes place. In cash purchases goods are dispatched after advance is paid and collection amount are recovered. The price of pig iron depends on type of customer credit period.

3. Next step: Is that order is transferred to head quarter(marketing depth) here the planning takes place, annual plan, monthly plan, and daily plan is made here. Then they are dispatched according to plans made.

4. Next step: Is to consult the transporters to place trucks where the goods must be dispatched and dispatched is made through trucks and rail. When there are huge order to dispatch it is made through rail. The truck capacity is only 20 tonnes. Through rake 1290 metric ton can be transported one rake contains 60 containers and one container has capacity of 21.5 tonnes.

5. Next step: Is given to dispatch section and then it is dispatched according to plan.6. Next step: Is loading or invoicing loading is made to trucks and rail according to

specification of the marketing and transport department.7. Next step: The truck and containers are then dispatched to customers from company.

KFIL’S MARKETING CHANNEL

Raw material

Inventory (stock yard)

Work in process Branches

Finished Goods

Consignment Agents

Stock Yard (finished goods)


Supplier Customer

KFIL


CHANNEL FUNCTIONS AND FLOWS

Marketing channels perform the work of the moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them members of the marketing channel perform a numbers of key function.

It depicts information about potential and current customers-competitors and forces in the marketing environment.

It develops and disseminates persuasive communication to stimulate purchasing. They reach agreements on price and others terms so that of ownership or possessions can

be affected. They place orders with manufacture. They acquire the funds to finance inventories at different levels in the marketing channel. They assure risk connected with carrying out channel work. They provide for the successive storage and movement of physical products.

KFIL NETWORK

HEAD OFFICE Hospet

KFIL BRANCHES Delhi

Kolhapur

Ahmedabad

Coimbatore

KFIL DEALERS Belgaum

Hyderabad

Coimbatore

Bangalore

Kolhapur

Nagpur

Ahmedabad

Rajkot

Kolkata

Delhi



Jaipur

Faridabad

Marketing strategies

Maintaining quality leadership On-time delivery Strong dealership network Customer orientation Customer driven Performance tracking of competitors

LOGISTICS & DISTRIBUTION:

LOGISTICS: The task of logistics management is to plan & co-ordinate all those activities necessary to achieve superior levels of service at lowest cost. The reach of logistics in the organization extends from management of raw materials through to the delivery of the final product to the customers.

Logistics management optimizes material flow within the organization, while supply chain management extends material flow integration upstream to suppliers & downstream to customers. Logistics in KFIL are:

“WHERE THERE IS A QUALITY THERE IS A KFIL”

“IF IT IS A KFIL, IT MUST BE TOP CLASS”

KFIL delivery the products as the requirement of the industrial customers. It is Honest, timekeeping and fulfill the needs of the Industrial customers requirements. KFIL transferring the products through different transferring machines and ways.

DISTRIBUTION: It is through roads in their flow from producers to final consumers.

Distributers also refers as to the route taken by goods as they flow or move from the point of production to the point of ultimate or final consumers.

Distribution Network

Place No:of dealersHyderabad 2Vijayawada 1Bangalore 1



Belgaum 1Ahmedabad 3Rajkot 2Agra 1Ludhiana 2Delhi 1

RAILWAYS ROADS PORT

Railways

The Indian Railway is the number one of the largest railway network in the world. So Indian railway network connected over a more than 60000km throughout the India. KFIL has a plan to put separate track inside the plant and the work is in progress. Merely coke is imported and brought via rails i.e. rakes and it is unloaded near by the company there is a station.

Roadways It is the largest transport root of the KFIL products.

It cover less than 2000km & within the India. KFIL used the 3rd party Logistics. In the 3rd party they are 9 transporters. The different

transport agenies are there & there freight charges are varies by the once in the year meeting because of the variation in the fuel prices.

TRANSPORTERS OF KFIL

Transporters load the product (pig iron) from KFIL and unload it to the branch office, consignment agent.

SL.NO Transporters Name Place1 Chetan Transports Maharashtra, Gujrat2 Leo Transports Chennai 3 Mulik Transports Kolhapur4 Shiva Transports Solhapur5 Krishna Roadways Bangalore6 ARW Transports Hyderabad, Vijayawada7 Omkar Roadways Rajkot8 Excellent Transports Tamil nadu

3PL in KFIL



Deciding to a use a third party logistics company is a decision that depends on a variety of factors that differ from business to business. The decision to outsource certain business functions will depend on the company’s plans; future objectives, product lines, expansion, acquisitions, etc.

Once a decision has been made to outsource certain processes then a company will begin a search for the right 3PL in KFIL that fits all their requirements at the best possible price.

Dispatch plan and procedures:

Purpose: To establish and maintain procedure for planning of dispatches of good quality pig iron to customers to ensure the customer requirement is meant.

Preparation of daily dispatch plan of pig iron:

1. The daily dispatch shall be prepared considering the following factorsa. Pending order of customersb. Dispatch instructions given by the branch officersc. Availability of materiald. Availability of transportation

2. The daily dispatch plan shall contain the details of the type/ grade of material to be landed, the quality to be dispatched and the transport arrangements for dispatch.

3. Marketing line head shall organize dispatches.4. Deviation from daily dispatch plan for pig iron may be by line head or higher

authorities due to any of the following reasonsa. Change in schedules asked by the customers/ agents/ branch offices.b. Non availability of required quality of materials due to breath down etc.c. Non availability of trucks to planned destination.

5. Dispatch of materials shall generally be truck through authorized transporters on door delivery basis

6. Pig iron received from pig iron plant shall be stored in the storage yard by unit head as per work instructions.

7. Line head (marketing/higher authority) shall issue loading ships/dispatch instruction.8. Based on the details the data entry operator shall prepare invoice/ delivery note in 6

copies and mention the invoice number on the loading slip and sign the same.9. The dispatch supervisor shall then check and issue the following documents along

with each consignment.a. Invoice cum delivery noteb. Test certificate: corresponding to the grade from which material has been loaded

as mentioned in the loading slip by the yard, supervisor, shall be sent.c. L.R. to be collected from the transporter and field

The consignee copy and transporter copy to be sent with the consignment.

CUSTOMERS:



The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility.

PIG IRON CUSTOMERS

COMPANY NAME PLACE

Texmo Industries Coimbatore

Mahindra Group Coimbatore

Swaraj Group Coimbatore

Punjab Tractors Punjab

Marshal Group Faridabad

Sri Ram Piston & Rings Ghaziabad

Ashok Leyland Hyderabad

N.M.T Bangalore, Hyderabad, Ernakulam

ISICOS Banglore

Indian Slamks Pune

Bharat Fritz Werner Limited Hosur

Forze & Blower Ahmedabad

Yuken India Limited Bangalore

FOUNDRY CUSTOMERS

1. Punjab Tractors2. Swaraj Tractors

3. Escorts Limited

4. Maruthi Udyog Limited

5. Daewoo India Limited



6. Mahindra & Mahindra

7. TALCO

8. Mitsubishi Heavy Industries Limited

9. Toyota Motors Limited

10. Carraro India Limited

FINDINGS:

AS per the project work the findings at the jsw are:

The production planning and market planning is very well setup.

The company employees are always working hard to improve and maintain good relationship with their concerned customers. And almost possible they have succeeded to maintain a good supply and more eager to satisfy their needs and wants.

The company is planning to adopt some changes that we have suggested to them for the effective supply chain and management of the finished goods.

There are planning to allot the products as per the week schedule or the month schedule.

It has an easy access through major ports like Goa, Chennai, and Mangalore & Mumbai.

The following activities are outsourced in in-bound & out-bound supply chain integration.

Outbound logistics (& transportation) is outsourced through external transporters

Raw materials lioke iron ore & coal/coke are procured from outside suppliers /sondur mines & Bagalkot coal mines.



For product distribution the company uses agents,wholesalers, on commission & contract basis.

Casual labourers appointment is sub-contracted & company does not directly appoint such casual labourers.


kirloskar ferrous industries limited, koppal(3)

Documents