meenakshi threads

7/26/2019 Meenakshi Threads

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Meenakshi Threads

Introduction

Overview of the Industry

The textile industry or apparel industry is primarily concerned with the design and

production ofyarn, cloth, clothing,and their distribution. The raw

material may be natural, or synthetic using products of

the chemical industry.

The Indian textile industry is one the largest and oldest sectors in the

country and among the most important in the economy in terms of output,

investment and employment. The sector employs nearly 35 million people

and after agriculture, is the second-highest employer in the country. Its importance is

underlined by the fact that it accounts for around 4 of !ross "omestic #roduct, $4 of

industrial production, % of excise collections, $& of employment in the industrial sector,

and $' of the country(s total exports earnings. )ith direct lin*ages to the rural economy

and the agriculture sector, it has been estimated that one of every six households in the

country depends on this sector, either directly or indirectly, for its livelihood.

+ strong raw material production base, a vast pool of s*illed and uns*illed personnel, cheaplabour, good export potential and low import content are some of the salient features of the

Indian textile industry. This is a traditional, robust, well-established industry, enoying

considerable demand in the domestic as well as global mar*ets.

Navnirman Institute of Management Page
https://en.wikipedia.org/wiki/Yarnhttps://en.wikipedia.org/wiki/Yarnhttps://en.wikipedia.org/wiki/Textilehttps://en.wikipedia.org/wiki/Clothinghttps://en.wikipedia.org/wiki/Chemical_industryhttps://en.wikipedia.org/wiki/Textilehttps://en.wikipedia.org/wiki/Clothinghttps://en.wikipedia.org/wiki/Chemical_industryhttps://en.wikipedia.org/wiki/Yarn


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History of Textile Industry in India

The archaeological surveys and studies have found that the people of arrapan civiliation

*new weaving and the spinning of cotton four thousand years ago. /eference to weaving and

spinning materials is found in the 0edic 1iterature. There was textile trade in India during the

early centuries. + bloc* printed and resist-dyed fabrics, whose origin is from !uaratis found

in tombs of 2ostat,gypt. This proves that Indian export of cotton textiles to the gypt or the

ile iviliation in medieval times were to a large extent. 1arge 6uantity of north Indian sil*

were traded through thesil* routein hina to the western countries. The Indian sil* were

often exchanged with the western countries for their spices in thebarter system. "uring the

late $7th and $&th century there were large export of the Indian cotton to the western

countries to meet the need of the uropean industries during industrial revolution.

onse6uently there was development of nationalist movement li*e the famous 8wadeshi

movementwhich was headed by the +urobindo !hosh.

Production in India

https://en.wikipedia.org/wiki/Harrapan_civilizationhttps://en.wikipedia.org/wiki/Vedic_Literaturehttps://en.wikipedia.org/wiki/Gujarathttps://en.wikipedia.org/wiki/Fostathttps://en.wikipedia.org/wiki/Fostathttps://en.wikipedia.org/wiki/Silk_routehttps://en.wikipedia.org/wiki/Silk_routehttps://en.wikipedia.org/wiki/Barter_systemhttps://en.wikipedia.org/wiki/Industrial_revolutionhttps://en.wikipedia.org/wiki/Swadeshi_movementhttps://en.wikipedia.org/wiki/Swadeshi_movementhttps://en.wikipedia.org/wiki/Aurobindo_Ghoshhttps://en.wikipedia.org/wiki/Harrapan_civilizationhttps://en.wikipedia.org/wiki/Vedic_Literaturehttps://en.wikipedia.org/wiki/Gujarathttps://en.wikipedia.org/wiki/Fostathttps://en.wikipedia.org/wiki/Silk_routehttps://en.wikipedia.org/wiki/Barter_systemhttps://en.wikipedia.org/wiki/Industrial_revolutionhttps://en.wikipedia.org/wiki/Swadeshi_movementhttps://en.wikipedia.org/wiki/Swadeshi_movementhttps://en.wikipedia.org/wiki/Aurobindo_Ghosh


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India is the second largest producer of fibre in the

world and the maor fibre produced is cotton.

9ther fibres produced in India

include sil*,ute, wool, andman-made fibers.

': of the Indian textile Industry is cotton based.

The strong domestic demand and the revival of

the conomic mar*ets by ;::% has led to huge

growth of the Indian textile industry. In

"ecember ;:$:, the domestic cotton price was up by 5: as compared to the "ecember

;::% prices. The causes behind high cotton price are due to the floods in #a*istan and

hina.India proected a high production of textile s share of global textile trading to seven percent in five years. The

rising prices are the maor concern of the domestic producers of the country.

Man Made Fibers? These includes manufacturing of clothes using fiber or filament

synthetic yarns. It is produced in the large power loom factories. They account for the largest

sector of the textile production in India. This sector has a share of '; of the India>s total

production and provides employment to about 4.& million people.

The Cotton Sector? It is the second most developed sector in the Indian Textileindustries. It provides employment to huge amount of people but its productions and

employment is seasonal depending upon the seasonal nature of the production.

The Handloom Sector? It is well developed and is mainly dependent on the 8!s for

their funds. Its mar*et share is $3. of the total cloth produced in India.

The Woolen Sector? India is the 7th largest producerof the wool in the world. India also

produces $.& of the world>s total wool.

The ute Sector? The ute or the golden fiber in India is mainly produced in the astern

states of India li*e +ssam and )est @engal. India is the largest producer of ute in the world.

https://en.wikipedia.org/wiki/Cottonhttps://en.wikipedia.org/wiki/Silkhttps://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Woolhttps://en.wikipedia.org/wiki/Man-made_fibershttps://en.wikipedia.org/wiki/Man-made_fibershttps://en.wikipedia.org/wiki/Cottonhttps://en.wikipedia.org/wiki/Silkhttps://en.wikipedia.org/wiki/Jutehttps://en.wikipedia.org/wiki/Woolhttps://en.wikipedia.org/wiki/Man-made_fibers


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The Sericulture and Sil! Sector? India is the ;nd largest producer of sil* in the world.

India produces $& of the world>s total sil*. Aulberry, ri, Tasar, and Auga are the main

types of sil* produced in the country. It is a labor-intensive sector.

Indian textile industry largely depends upon the textile manufacturing and export. It also

plays a maor role in the economy of the country. India earns about ;7 of its total foreign

exchange through textile exports. 2urther, the textile industry of India also contributes nearly

$4 of the total industrial production of the country. It also contributes around 3 to the

!"# of the country. India textile industry is also the largest in the country in terms of

employment generation. It not only generates obs in its own industry, but also opens up

scopes for the other ancillary sectors. India textile industry currently generates employment

to more than 35 million people. It is also estimated that, the industry will generate $; millionnew obs by the year ;:;:.

"arious Cate#ories$

Indian textile industry can be divided into several segments, some of which can be listed as

below?

otton Textiles

8il* Textiles

)oolen Textiles

/eadymade !arments

and-crafted Textiles

Bute and oir



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Overview of the com%any

The A+C8I !/9D# was incepted in the year ;::5 in 8urat, !uarat. The company

initiated with manufacturing and supplying of viscose embroidery threads. The group is

bac*ed by a dedicated team of more than 5: members. These professionals are well versed

with various aspects that are involved in production of 0iscose, #olyester, 8il*oplus,

+croplus and ottplus mbroidery threads.

The company is scaling new horions of success under the guidance of its mentor and owner

of the company, Ar. 0i*as 8araf. e is a A@+ professional in mar*eting and has & years of

experience in this domain. e touched new pinnacle of success in every business endeavor.

Owner? Ar 0i*as 8araf

&ature of the com%any? #rivate limited

Sales turnover$

'ear established? ;::5



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Products

"iscose(")Plus*

Polyester Sil!o%lus

+cro%lus

Cott%lus

Main ,usiness +rea$Earn manufacturer



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"ision$

To be the )orld>s best integrated textile enterprise, driven by research F innovation, with a

leadership position across product F mar*et exceeding customer F sta*eholder expectations.

Mission$

9ffer innovative, customied and value added services to our customers

+ctively explore potential mar*ets F products

9ptimie use of all resources

Aaximie people development initiatives

@ecome a process driven organiation

@e a *nowledge leader and an innovator in our businesses

xceed compliances and global 6uality standards

@e an ethical, transparent and responsible global organiation

"alues$

Customer Satisfaction?

They will attune to mar*et needsG wherever possible, we will anticipate mar*et

needsG we will respond 6uic*ly to changes in customer re6uirementsG we will be

completely focused on 6ualityG we will *eep delivery commitments on time and every



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timeG we will develop new products and processes that will go beyond customer

satisfaction to achieve customer delight.

Passionate +bout -xcellence$

xcellence is non-negotiable in every aspect of our business process. 8uperior 6uality

of performance is critical to our business growth and success. )e will constantly

strive to exceed expectations? be it internal or external.

.evelo% Human Ca%ital?

)e will empower, energie and inspire our people to perform beyond their bestG we

will create empowered teams that ta*e informed decisionsG we will recognie and

leverage s*ills and strengths of various teamsG we will enable sharing of *nowledgeG

we will create an ade6uate >bench strength> that will ta*e care of changes in business

scenarios.

Fair to +ll?

+ll our actions will be determined by fairnessG we shall be fair to our customers,

vendors, all our business partners and society at large. 2airness is not ust stic*ing to

the letter of the law or the contract but appreciating its spirit and basing all our actions

on being fair to the spirit of that understanding.

Concern For The -nvironment +nd The Community?

)e will ta*e the utmost care of our environment and the communities in which we

operateG we shall nurture our environment and its natural resources and shall ensure

that none of our actions deplete or pollute themG we will encourage initiatives thatcreate environmental sustainability and help in community development.

Safety and Health?

)e will provide a safe wor*place. )e will promote the health and well-being of our

people and their families. )e will encourage healthy wor* habits and a >wor*-life>

balance. )e believe that wor*ing safely and protecting the health of our people is

>wor*ing smart> and creates greater and more sustainable wealth.

/es%onsible Cor%orate Citi0en?

)e recognie that we have our responsibilities towards the society in which we

operate. )e commit ourselves to be a responsible corporate citienG our activities

should not only create shareholder wealth, but also community wealth.



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Production .e%artment

Introduction

+ production function is afunctionthat specifies the output of a firm, an industry, or an

entire economy for all combinations ofinputs. This function is an assumed technological

relationship, based on the current state of engineering *nowledgeG it does not represent the

result of economic choices, but rather is an externally given entity that influences economic

decision-ma*ing. +lmost all economic theories presuppose a production function, either on

the firm level or the aggregate level. In this sense, the production function is one of the *ey

concepts of main streamneo classicaltheories. 8ome non-mainstream economists, however,

reect the very concept of an aggregate production function.

#roduction management is planning, implementation, and control of industrial production

processes to ensure smooth and efficient operation. #roduction management techni6ues are

used in both manufacturing andservice industries. #roduction management responsibilities

include the traditional Hfive A>s? men and women, machines, methods, materials, and

money. Aanagers are expected to maintain an efficient production process with a wor*force

that can readily adapt to new e6uipment and schedules. They may use industrial

engineeringmethods, such astime-and-motionstudies, to design efficient wor* methods.

They are responsible for managing both physical


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In Meena!shi Threads$

In Aeena*shi Threads, production is the main department. 8o the production plan has to bevery clear and unambiguous. The sales plan is prepared by the mar*eting department.

onsidering the sales, i.e., the demand and supply of the product, a sales plan is prepared.

2actors li*e availability of raw material, transportation, capacity of the machine, etc are ta*en

into consideration while preparing a production plan.

ow, as the %roduction %lan is prepared, the manager would *now the material

re6uirements and would chec* the inventory available as well as the financial position of the

company.

The manager would come in contact with the finance department so that he can *now the

funds available to purchase raw material. 9n the basis of this, he would prepare a material

re6uirement plan and a purchase plan for the company.



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ProductionDepartmen

t

Supervisor Worker Inventory Keeper

ProductionManager(Dep

t. Head)

Meenakshi Threads

Structure of Production de%artment$

There are various posts in production department ta*ing care of different duties. The

production department structure with duties is as follows?

2ig. #roduction dept.

$. Production Mana#er (.e%artment Head*?+ production manager is involved with the planning, coordination and control of

manufacturing processes. The activities performed by the production manager in

Meena!shi Threadsare as follows?a. 8ales to production planning and synchroniationb. #lanning and coordination of the production activitiesc. ost analysis and production contractingd. Aanaging wor*erse. Aanaging machines and its maintenance schedule

;. Su%ervisor?



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+ production supervisor has an essential role in the manufacturing process. This

supervisor ensures that proects are completed on time and in a cost-effective manner,

whether routine daily proects or longer-term ones.

a. /eporting on-floor activities to the managerb. #roduction coordination to raw material departmentc. 1abour re6uirement-coordination with human resource department

3. Wor!er?

The activity carried by the wor*er is operating the machine.

4. Inventory !ee%er?

Inventory *eeper is the important person for the inventory. e is the in charge of the

inventory department and also responsible for inventory control. e must be a s*illed person



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and ta*es care of the inventory. e *eeps a watch full eye on the movement of the materials

with a view to control the materials in the inventory. e is *nown as chief-inventory *eeper

or inventory superintendent. +n inventory *eeper should have technical *nowledge and

experience in the maintenance of the inventory. e should have organiing ability and

undoubted integrity. e manages the inventory of raw material, semi-finished products and

finished products.



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Plant 1ayout

Meanin#$

#lant layout is the most effective physical arrangement, either existing or in plans of

industrial facilities i.e. arrangement of machines, processing e6uipment and service

departments to achieve greatest co-ordination and efficiency of 4 A(s


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Product or 1ine 1ayout$

#roduct or 1ine 1ayout is the arrangement of machines in a line


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Cellular Manufacturin# 1ayout

ellular manufacturing, a model for wor*place design, is an integral part of ust-in-time and

lean manufacturing, with additional applications in administrative processes. The cell, or

wor* cell, has roots in group technology, which see*s to align process flows by families of

component parts or, sometimes, families of target customers

Fixed Position Layout:

This type of layout is underta*en for the manufacture of large parts and assemblies. In this

case, material remains fixed or stationary at one place, men and e6uipment are ta*en to the

site of material. This is suitable in case of ship building, locomotives and heavy machinery

industries etc.

Combination Tye of Layout:

ow days in pure state any one form of layouts discussed above is rarely found. Therefore,

generally the layouts used in industries are the compromise of the above mentioned layouts.

very layout has got certain advantages and limitations. Therefore, industries would to li*e

use any type of layout as such.

2lexibility is a very important factory, so layout should be such which can be molded

according to the re6uirements of industry, without much investment. If the good features of

all types of layouts are connected, a compromise solution can be obtained which will be more

economical and flexible.



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In our firm, P/OC-SS layout has been chosen as it is a yarn mill which has

different departments where the raw materials flow from one department to other. 1et us now

see the layout of Aeena*shi threads?

#/9"DTI9

"#+/TAT

#+/CI! 29/

T)9 F 29D/

0I+1

MD+1ITE

"#+/TAT

8#+ 29/ T T/+8#9/+TI9

+"AII8T/+TI9

"#+/TA8 ,

I0T9/I8

92 8AI, /+)

A+T/I+182II8" !99"8

)+/9D8

+T


!NT"


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P/OC-SS OF M+&2F+CT2/I&3

"ifferent techni6ues, such as weaving, printing, dying, shrouding, pac*ing etc. are used

in the production process. Earn is chief raw material of the company. It is not

manufactured at the main production plant but rather it is manufactured in another plant

at #alsana


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In the pea* season, if the internal sources are unable to meet the demand, the company

also procures material from external sources li*e Aodern, Indo-/ama, and /eliance

etc.

;= Storin# the raw material$)

+ll the raw material needed by the various departments is purchased together and

maintained in the storage area called H"ump 8tore from where any department can

access the re6uired amount of raw material.

4* Twistin# the yarn$)

#arcel oriented yarn is either twisted, according to the re6uirements of material

consumed in production.

Process of twistin#$)

a. )inding on bobbins? firstly #9E is wound on bobbins, which are twisted on the

twisting machine. The winding of yarn is done on the winding machine.b. Twisting machine? the #9E wound on the bobbins is then titled on the twisting

machine. 9n which the yarn is twisted. In this process, first the yarn is passed

through spindles on which the yarn is twisted in both the opposite directions 9ne for one twisting machine? in this machine, the yarn is twisted once for

revolution.

Two for one twisting machine? in this machine, there are two twisters per one

revolution. ow days, T29s are more widely used as they are 6uic*er and offer

a better 6uality.

2ancy Twister? the yarn before twisting is not very strong and brea*s easily. It is

twisted in order to increase its strength. "ue to twisting, 6uality improves and

hence production also increases.

4= Texturi0in# or crim%in# the yarn$)



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The #9E is accessed from the dump store to the crimping or Texturiing section to

Texturiing it. "enier is unit for measurement of #9E. Those %::: units of yarn

are han*er and weighted in !rams, are called one denier. It is decreased after

crimping.

Process of Crim%in#$)

2irstly, #9E is put on machine in a specific amount. The place is called /I11

where it is put. +fter the first delivery, the yarn is heated. Then it is passed through

cooling plate. +fter that, the yarn is passed through spindle assembly. Thereafter, it

is passed through boiler and at all it is ta*en up. This is what the crimping to

Texturiing process is. There are two ways for punching the yarn.

/aito-punched or bound. rime-not punched.

Ty%es of crim%in# machine?-

2riction type

Aagnetic type

5= .raw Wra%%in#$)

The #9E is put directly on the Aachine from the dump store to draw warped process.

It(s the fully automatic system from the warping system. The process of drawing heat

setting and intermingling is carried out. It is given tension and then wound on beam.

5* Si0in#$)



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8iing is a process of saving of yarn. The raw material for siing is accessed either

from dump store, warp raw section or from Texturiing department. + beam is made at

the beginning in the process on this department. )arp yarn i.e. 0ertical threads are

made.

+. )arping.

@. hemical processes.

. )axing.

". @eaming.

6* Weavin#$)

+fter ma*ing the process of twisting camping, siing or drawing warp, the yarn is

rent to the weaving department. In grey cloth is manufactured through the process of

weaving in this process one thread is horiontal and other is vertical. oriontal thread

is called Weftand the vertical thread is called War%.

There are various types of looms on which the cloth is woven?-

$. 8emi-+utomatic 1ooms.

;. )ater Bet 1ooms

3. 2ully +utomatic 1ooms.

It is notable that the production of grey cloth is 6777 meters8dayand it increases every

year.

9* .yein# +nd Printin#$)

This is the lent step of the process of production department in the company.

Process$)

The et dyeing process is widely used for dying the grey cloth. It is dyed printed

according to the re6uirement of design and colors.



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+. 2irst of all the grey cloth is washed and dyed, whichever color is necessitated. The

ompany dyes %::: mts of cloth daily.

@. The second step involves putting the dyed cloth in the drum washer to give crepe

and georgette crease effect along with washing the stains.

The super wash machine is used for finishing and washing white color material.

8alvage or border outing machine is used for border cutting of the cloth.

Production %lannin#

+s we have seen, the sales manager forecast the demand and then he give it to

production manager. +fter that production manager will estimate in what 6uantity /A

will needed.

If we ta*e example that the demand for #9E is 4:::: Aetric Tonnes. +nd we *now

that we have to use the #9E chips and spin-finished oil as a raw-material for it. +nd to

ma*e the forecasted demand we need the 7: to &: of the #9E chips and the rest

will satisfy with spin-finished oil. 8o, in this case we will re6uire ;&::: to 3;:::

Aetric Tons of #9E chips and the rest will be complete by spin-finished oil.

ere, we are tal*ing about the #9E chips which are useful to ma*e #9E. @ut to ma*e

#9E chips we also need raw-material li*e "AT F !. The company itself produce the

#9E chips by using "AT F !. 8o, they have to decide the 6uantity to purchase

"AT F !. ey purchase "AT F ! from the outside as per the re6uirement.

Aeena*shi Threads has capacity of &::: ATKAonth to produce #9E.

#roduction planning based on A/#, /# and A#8 system.



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M/P (Material /e:uirement Plannin#*

It is a techni6ue of determining the 6uantity and timing for the actualiation of

dependent demand item needed to satisfy the production schedule set by A#8.


Aggregate Plan

!M "ileMPS

Inventory

Material #e$uirement

Is Material

Ade$uate% Production

Activity


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Material Handlin# -:ui%ments

Material)handlin# e:ui%ment is e6uipment that relate to the movement, storage,

control and protection of materials, goods and products throughout the process of

manufacturing, distribution, consumption and disposal. Aaterial handling e6uipment is the

mechanical e6uipment involved in the complete system. Aaterial handling e6uipment is

generally separated into four main categories? storage and handling e6uipment, engineered

systems, industrial truc*s, and bul* material handling. There are number of material handling

e6uipments that can be used at production departments li*e elevators, for*lifts, hand carts,

clamps, loaders etc.


Invent

oryPlanned

()pectatio

n #eports


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In Meena!shi Threads; the following e6uipments are used?

$. Clam%s$ - + clamp is afastening deviceto hold or secure obects tightly together to

prevent movement or separation through the application of inwardpressure.

;. For!lifts$- + for*lift truc* is a powered industrial truc*used to lift and transportmaterials.

http://en.wikipedia.org/wiki/Fastenerhttp://en.wikipedia.org/wiki/Fastenerhttp://en.wikipedia.org/wiki/Fastenerhttp://en.wikipedia.org/wiki/Pressurehttp://en.wikipedia.org/wiki/Pressurehttp://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Fastenerhttp://en.wikipedia.org/wiki/Pressurehttp://en.wikipedia.org/wiki/Truckhttp://en.wikipedia.org/wiki/Transport


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Production Schedulin#

"arious Priority Se:uencin# /ules$-

* Truncated shortest %rocessin# time (TSPT*$)obs that have waited longer than some

predetermined designated truncation time are given highest priority and are processed next. If no obs

have waited that long, then the 8#T rule applies.

?* 1east Slac! (1S*?-ighest priority goes to the obs whose slac* time is least. 8lac* is

calculated as the differences of the time remaining until the ob is due and the length of its

operation time. The order of arrival is ignored. HSlac!@+vailable Time A Processin#

TimeB

5* 1on#est Processin# Time (1PS=?- The ob with the longest processing time is scheduled

as the first ob to be loaded on the machine among the obs waiting in 6ueue.

6* Preferred Customer Order (PCO*$)Bobs belonging to a preferred customer are given a

higher prioty than other obs.

9* /andom Selection$)This rule is not used normally. It may be used when no other

consideration is important.

* CO"-/T (Cost Over Time*$)This rule uses the ratio of expected delay.



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ohnsonDs rule for = and 4 machines

8.A.B989 presented a se6uencing rule for a situation where there were n obs to

be processed through two machinesKwor* centers. +ll the obs followed the same

se6uence of the machines and hence we may call machine m$ and m;.the rule resulted

in minimum total completion time for n obs. by minimiing the total idle time of the

machines that could be any number.

-xtension of ohnsonDs rule$)

To convert 3 mc problems into ; mc problem and apply Bohnson(s rule to get optimal

se6uence certain conditions have to be met, they are

8mallest duration on mc$ is at least as great as the largest duration on mc; i.e. mc$.

8mallest duration onmc3 is at least as great as the largest duration on mc3 i.e. mc 3.


The policy of priority se6uencing followed in our firm is a mixture of #riority

ustomer 9rder


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Inventory Control

It is very important to *eep a record of various activities of production department. + recordof raw materials, semi finished products and finished goods, inventory stoc*, 6uality tests

reports etc are some of the activities for which a record boo* is maintained.

Meena!shi threadsmaintain the following boo*s?

$. Inward)Outward /e#ister$The register maintained to *eep a record of flow of raw

materials in different department is inward-outward register. This helps us to *now

the raw material re6uirement of each department.

;. Inventory /e#ister$This register is prepared to *now the level of inventory of the

company.3. Inventory Stoc! /e#ister$ This register is prepared to *now the stoc* of the

company. The stoc* is of raw material, semi-finished goods and finished products.

This stoc* is noted on daily basis.4. Issue ,oo!s for Production$the daily issue of raw materials is recorded in this

register.5. Tests /e%orts /e#ister$ when the raw material is purchased, before using it, a

6uality chec* is conducted. The reports of this 6uality chec* are maintained in this

register.



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Inventory Control System

+n inventory control system is a system that encompasses all aspects of managing a

company>s inventoriesG purchasing, shipping, receiving, trac*ing, warehousing and storage,

turnover, and reordering. In different firms the activities associated with each of these areas

may not be strictly contained within separate subsystems, but these functions must be

performed in se6uence in order to have a well-run inventory control system. omputeried

inventory control systems ma*e it possible to integrate the various functional subsystems that

are a part of the inventory management into a single cohesive system.

Inventory ObEectives

+ fundamental obective of a good system of inventory control is to be able to place an

order at the right time from the right source to ac6uire the right 6uantity at right price and

of right 6uality. Bames 1undy has suggested following obectives of inventory control?


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Inventory models used

C+1C21+TIO& OF -O

-O$)

conomic order 6uantity


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alculate economic order 6uantity


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Safety Stoc!

Safety stoc!


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Inventory "aluation Method

+n inventory valuation allows a company to provide amonetary valuefor items that ma*e uptheir inventory. Inventories are usually the largest current asset of a business, and proper

measurement of them is necessary to assure accuratefinancial statements. If inventory is not

properly measured, expensesand revenuescannot be properly matched and a company could

ma*e poor business decisions.

In Aeena*shi Threads, as the raw material passes from one department, after getting

processed, it becomes a finished product for that department. That finished product becomes

raw material for the next department. 8o the cost of initial process is the value addition in thematerial cost. 8o, as the material goes form one department to the other department, thr cost

of the process is added in the material cost and hence validated.

Material /ecei%t)Issue %rocedure

)hen raw material is received from the supplier, an inward is prepared with item

details li*e item code, received 6uantity, supplier code based on delivery challan. The raw

material is tallied with the deliver challan. Muality controls are done on the raw material to

chec* the 6uality standards. +n inward register is prepared in which details li*e item code,

received 6uantity, 6uantity accepted, 6uantity reected is noted. If the raw material is as per

the 6uality standards, it is accepted otherwise reected.

8imilarly, in material issue procedure, as per the schedule of production planning, the raw

materials are issued to various departments for production with complete instruction for the

various manufacturing processes to be carried out. The instruction are in form of design,

colour scheme, 6uantity of finished good i.e. in meters, etc..

http://en.wikipedia.org/wiki/Monetary_valuehttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Financial_statementhttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Monetary_valuehttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Financial_statementhttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Revenue


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Maintenance Plannin# System

Aaintenance planning system is important for wor*ing of machines in smooth and efficient

manner. +ll the machines are given strict and regular maintenance chec* for any sort of

brea*downs or wear and tear. + discipline maintenance schedule is followed where in as per

a strict program and a routine se6uence, the machines are given maintenance relief.



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Inventory Classification

Classification of Inventories +ccordin# To +,C and "-. +nalysis

+,C analysis

+@ analysis is *nown as the H+lways @etter ontrol method. This method is useful to

differentiate between various inventories of the company. This method is useful for the

inventory control. This method divides the product in to three parts according to its

consumption value.

Conce%t of +,C +nalysis$)

In +@ +nalysis inventories are divided in to three classes. The classes are li*e +,

@ and . It loo*s li*e as follows?-


C1+SS-S CO&S2MPTIO& "+12-

+ 67J TO 97J, =7J TO


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-xam%le of the +,C +nalysis ?-

+@ +nalysis of the company(s some /A on the basis of its consumption value is

given below. The +@ +nalysis is loo* li*e as follows?-

IT-

M

T' TOT+

1

(In /s

1a!hs*

J OF

C"

+33/ C1+SS

P 6>494

MT

4?9

+

4444s Turnover /atio is an accounting measure used to

measure how effective a company is in extending credit as well as collecting debts. The

receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.



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2ormula?

.ebtors /atio@ .ebtorsL ,ills /eceivable G 45?

Credit Sales

+ high ratio implies either that a company operates on a cash basis or that its extension of

credit and collection of accounts receivable is efficient. )hile a low ratio implies the

company is not ma*ing the timely collection of credit.

Particulars =7


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during a period. In other words, the accounts payable turnover ratio is how many times a

company can pay off its average accounts payable balance during the course of a year.

Creditors /atio @ CreditorsL,ills PayableG 45?

Credit Purchase

Particulars =7

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