A Project Repot On A study on inventory management system

At

Hanuman Industry
Near Ice Factory, Bagashra Road, Amreli-365601, Gujarat - India.

Under the Guidance of (in Company) Mr. Rajiv L. Yadav

Under the Guidance of (College) Ms. Arpita Vaghela

Institution

Submitted to Gujarat Technological University - Ahmedabad

Prepared By: Hardik A. Bhalu M.B.A. Sem. II, Seat No 013891

Company Certificate

K. K. Parekh Institute of Management Student Amreli.

Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli. Ph: (02792) 223509 fax: (02792) 223509 E-mail: kkpimsa@yahoo.com Web: kkpimsamreli.com

DIRECTORS RECOMMENDATION
TO, The Registrar Gujarat Technological University Ahmedabad.

Subject: MBA Summer Training Project Report

Respected Sir,

I am recommending the Summer Training Project entitled- Study On Inventory Management System prepared by Hardik A. Bhalu at Hanuman industry, Near Ice Factory, Bagashra Road, Amreli-365601, Gujarat, India. As the partial fulfillment of the University requirement for the award of MBA degree of Gujarat Technology University Ahmedabad.

Date: Place: - Amreli

Thanking You, Yours Faithfully

Director

STUDENT DECLARATION
I the undersigned student Hardik A.Bhalu of K. K. Parekh Institute of Management Studies Amreli M.B.A. II Semester, hereby declare that, the project on Study on Inventory Management System is my own work.

In the partial fulfillment of Master Degree of Business Administration, I had undergone project work at Hanuman Indusry under the guidance of Ms. Arpita Vaghela K. K. Parekh Institute of Management Studies Amreli and submitted to Gujarat Technological University, Ahmedabad.

This project work is my original work and has not been submitted to any where earlier.

PRREFACE
With the dawn of new millennium there is a great consciousness among the individuals to be knowledgeable. Theoretical approaches cannot suffice this requirement until they are given practical orientation.

In the emergency global economy, we have to have to build our core competencies around powerful ideas. With the increasing complexity of business there is an urgent need for great ideas which can be converted into effective action. Agriculture product businesses play a very important role to dilute these complexities and progress in the same place. Its impossible to ignore the fact that the winds of change are blowing all over the world. Thus this transformation demands adaptation of new technology, closer interaction and broad prospective in order to accelerate the momentum of growth and ensure success.

As a part of our curriculum, I had an opportunity to visit HANUMAN INDUSTRIES which was indeed a great learning experience. The visit assisted me to have a sight of haw Manufacturing concerns function. This project report is an attempt to present a unified picture of what management is and how it is applied to various departments of organization. This journey has given me a great experience from meeting with the people, human behaviors, and their versatile.

All in all, project work is a perfect medium to bridge the gap between knowledge and work with ones full effort on the selected area to develop ones instinct in the field of management.

ACKNOWLDGEMENT
Inspiration, encouragement and guidance from the back bone to success so, I would like to express our deep sense of gratitude towards some important people who have devoted their precious time towards the completion of our project.

I am thankful to HANUMAN INDUSTRIES. For providing training in there esteemed organization. I am thankful to Mr. Rajiv L. Yadav Who guides and enable me to complete the project in time.

I would like to express my sincere gratitude to Dr. A. K. Aggarwal, who is Vice Chancellor of GUJARAT TECHNOLOGICAL UNIVERSITY, for providing us an opportunity with professional people in real corporate world. I am thankful to Ms. Arpita Vaghela my project guide for the training, whose expert guidance has given my project a value. I cant refrain my humble to my parents, friends and family members because of whose love, keen interest and suggestion, I become confident.

I would like to thank persons who have directly or indirectly help me for completing my project.

EXECUTIVE SUMMARY

HANUMAN INDUSTRY is very first unit in Amreli in marketing sesame seeds and raw-cotton. HANUMAN INDUSTRY is a Private Limited company incorporated on 1st April, 2003. Its prime emphasis has been on manufacturing Laser based Sorting & Packing & Hulling Sesame Seeds for Export Markets. The company is led by The Director of the concern is Mr. Manojbhai Vasantlal Sonpal, aged 34 years. He completed his 2nd year B.Com. Even while joining the Family Business at an early age. He is young, energetic and has wide experience. He will have full support and co-operation from his Uncle Mr. Bharatbhai N. Sonpal, Director of the company, who is also having the expertise in this line of activities. They have been instrumental in sharing of major load in the progress made by Sonpal Brothers and Thakkar
&

Co. till December 2000 and of

Avadh Agri. Exports, Hanuman Industries & Shiv Industries thereafter starting the Hulling business, the Family decided to venture into manufacturing activities of Laser based sorting & Packing Hulling Sesame Seeds which will be sold in the international market directly or through Merchant Exporters / Agents. The existing Family Business of dealing in Agriculture Products will come in handy for marketing of Laser based sorting & Packing Hulling Sesame Seeds. The Sonpals have developed very good rapport in market and have been able to establish their reputation in the market. With this the promoters of the company has decided to set the Plant for manufacturing Laser based sorting & Packing Hulling sesame seeds at an installed capacity of 7200 MT per annum based on 2 shifts a day & 300 days of operation. Hanuman industry gives more contribution in a GRWTH of amreli city and GUJARAT. By doing export agree product buseness

INDEX

SR. No. 1. 1.1 1.2 1.3 2. 2.1 2.2 2.3 2.4 2.5 3. 3.1 3.2 3.3 3.4 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12

PERTICULARS Industry Profile Introduction History Players Company Profile Introduction History & development Form of Business Organization Location Of The Unit SWOT Analysis Study of four functional area Finance Department Personal Department Production Department Marketing Department Research methodology Introduction Define the problem Literature reviewing of Study Objectives of the study Rational of the study Limitations of the study Data collection Data Analysis & interpretation Findings Suggestions Conclusion Bibliography

PAGE NO.

1.1 Introduction

 Exports:Export means the transferring of any good from one country to another country in a legal way for the purpose of trade. Export goods are provided to the foreign consumers by the domestic producers. The term "export" is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer". In International Trade, "exports" refers to selling goods and services produced in home country to other markets.

Why Need to Export?

There are many good reasons for exporting:

The first and the primary reason for export are to earn foreign exchange. The foreign exchange not only brings profit for the exporter but also improves the economic condition of the country.

Secondly, companies that export their goods are believed to be more reliable han their counterpart domestic companies assuming that exporting company has survive the test in meeting international standards.

Thirdly, free exchange of ideas and cultural knowledge opens up immense business and trade opportunities for a company. Fourthly, as one starts visiting customers to sell ones goods, h e has an opportunity to start exploring for newer customers, state-of-the-art machines and vendors in foreign lands.

Fifthly, by exporting goods, an exporter also becomes safe from offset lack of demand for seasonal products.

Lastly, international trade keeps an exporter more competitive and less vulnerable to the market as the exporter may have a business boom in one sector while simultaneously witnessing a bust in a different sector.

No doubt that in the age of globalization and liberalizations, Export has became of the most lucrative business in India. Government of India is also supporting exporters through various incentives and schemes to promote Indian export for meeting the much needed requirements for importing modern technology and adopting new technology from MNCs through Joint ventures and collaboration.

SOME "DO'S AND DON'TS OF EXPORT PLANNING

DO ensure your key staff members are signed on to the Plan. DO seek good advice and test your Export Plan with advisers. DONT create a bulky document that remains static. DO review the Export Plan regularly with your staff and advisers. DO assign responsibility to staff for individual tasks. DONT use unrealistic timelines. Review them regularly they often slip. DO create scenarios for changed circumstances look at the what ifs for changes in the market environment from minor to major shifts in settings. e.g. changes of government, new import taxes. DO develop an integrated timeline that draws together the activities that make up the Export Plan. DO make sure that you have the human and financial resources necessary to execute the Export Plan. Ensure existing customers are not neglected.

1.2 History

 Indian Exports: A History:The history of Indian exports is very old. During ancient times India exported spices to the other parts of the world. India was also famous for its textiles which were a chief item for export in the 16th century. Textiles and cotton were exported to the Arab countries from Gujarat. During the Mughal era India exported various precious stones such as ivory, pearls, tortoise stones etc. But during the British era, Indian exports declined as the East India Company took control of foreign trade.

Leading Export Items of India:In the past ten years, Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others. Some of India's main export items are cotton, textiles, jute goods, tea, coffee, cocoa products, rice, wheat, pickles, mango pulp, juices, jams, preserved vegetables etc. India exports its goods to some of the leading countries of the world such as UK, Belgium, USA, China, Russia etc.

The Opportunity:It is very clear that Indian exports have still not achieved their true potential and there exists immense opportunities for expanding the basket of Indias exports. With a strategic attention on the new markets that are evolving due to free trade, India is witnessing a boom in both manufacturing and services.

 Problems of the Indian Export Sector:There are few problems which need to be solved before India makes a mark for itself in the export sector. The Indian goods have to be of superior quality. The packaging and branding should be such that countries are interested to export from India. At the same time India must look for potential market to sell their goods. The government should frame policies which gives boost to the exports.

 NESSASITIES FOR EXPORT

Bank Account

IEC code is necessary

EXISE Registration

Customs application for container stuffing

Invoice, packing list, ARE 1 form are sent to custom

Shipping bills are made and verified by customs

Goods are handover to the ship

Mate receipt will get from captain of ship

Shipping company will give bill of lading

Commercial bill, commercial invoice, pacing list, certificate of origin is issued to chamber of commerce

Bill of lading sent to importer

If insurance than copy of insurance bill paid

For payment company fills form of APPENDIX 22a

1.3 Players

 Artousi Enterprises, New Delhi. Agrocel Industries, Mandvi-Kachchh, Gujarat. Suminter India Organics, Mumbai. Nature Bio-Foods Ltd., New Delhi. Geo Fresh Organic, Sidhpur. Umalaxmi Organics Pvt. Ltd, Pali, Rajasthan. Jain Irrigation Systems Ltd., Jalgaon, Maharashtra. Viral International Gultekdi, Pune, Maharashtra Cot Export Pvt. Ltd., Rajkot, Gujarat. H. Bheda & Co., Rajkot, Gujarat. Raj Foods International, Unjha, Gujarat. Rapid Overseas, Unava, Gujarat. Unique Organics Ltd., Sitapura Industrial Area, Rajasthan.

.1

Introduction

Industrial training is an essential part of our study. So I have visited to HANUMAN INDUSTRY. Moreover, theoretical knowledge to secure practical knowledge as per given in our syllabus. Our schedule programme was fixed, so far this purpose we engaged an industrial training dated on

HUNAMAAN INDUSTRY is very first unit in Amreli in marketing sesame seeds and raw-cotton, However today many companies have also been developed in this field. Today the pride of HANUMAN INDUSTRY is that it largest in Gujarat.

It was founded by Mr. Bharatbhai Sonpal. He has good knowledge of this field. We have enjoyed this industrial training and got practical experience from this industry. We are very thankful to Mr. Bharatbhai Sonpal and their industry members who gave us good support during this training. And our special thanks to Mr. Rajiv L. Yadav Manager of HANUMAN Industry. Who gave us whole information about this industry.

.2

History & Development

HANUMAN INDUSTRY is a Private Limited Company. How it became, we can see as follows:

BRIEF HISTORY OF THE ORGANISATION AND ITS PROMOTOR

HANUMAN INDUSTRY is a Private Limited company incorporated on 1st April, 2003. Its prime emphasis has been on manufacturing Laser based Sorting & Packing & Hulling Sesame Seeds for Export Markets.

The company is led by The Director of the concern is Mr. Manojbhai Vasantlal Sonpal, aged 34 years. He completed his 2nd year B.Com. Even while joining the Family Business at a has wide experience. early age. He is young, energetic and

He will have full support and co-operation from his Uncle Mr. Bharatbhai N. Sonpal, Director of the company, who is also having the expertise in this line of activities.

They have been instrumental in sharing of major load in the progress made by Sonpal Brothers and Thakkar & Co. till December 2000 and of

Avadh Agri. Exports, Hanuman Industries & Shiv Industries thereafter starting the Hulling business, the Family decided to venture into manufacturing activities of Laser based sorting & Packing Hulling Sesame Seeds which will be sold in the international market directly or through Merchant Exporters / Agents.

The existing Family Business of dealing in Agriculture Products will come in handy for marketing of Laser based sorting & Packing Hulling Sesame Seeds. The Sonpals have developed very good rapport in market and have been able to establish their reputation in the market.

With this the promoters of the company has decided to set the Plant for manufacturing Laser based sorting & Packing Hulling sesame seeds at an installed capacity of 7200 MT per annum based on 2 shifts a day & 300 days of operation.

The Plant and Machinery will be supplied by Bharat Engineering Co., Dist. Pali at Rajasthan on Turnkey Basis.

They are highly reputed Designers / Fabricators / Suppliers of Machinery and Chemical Plants on Turnkey Basis.

Machineries required for cleaning and sorting plant will be supplied by Bulher (India) Pvt. Ltd. - Mumbai.

They have already delivered the Plant at our Factory and the same is under installation. Bharat Engineering Co. has also supplied the Plant and Machinery in our Associate Concerns which is yielding satisfactory results.

The company has decided to install imported "Sortex" electronic automatic colour sorting machine from Sortex Ltd., Pudding Mill Land, and London, England.

The Finished Product Hulled Sesame Seeds has a potential demand in the International Markets and will be exported to Korea, Singapore, Taiwan, France, Australia, Russia etc.

We are pleased to inform the Bank that the Concern has Confirmed Orders / Enquiries from its Customers from Korea, Singapore, Taiwan, France, and Australia, Russia etc. copies of which are enclosed. There are number of oral enquiries from all over the world. The Promoters are already enjoying satisfactorily dealing with many Overseas Buyers in their existing Associate Concerns.

.3

Form of Business Organization

Since this company is Private Limited, the company is limited by shares. The shares are not equity, because it is not a public limited company. The company has 27 share-holders, in which two persons are promoters, as we have seen earlier. The promoters are

Mr. Manojkumar Sonpal Mr. Bharatkumar Sonpal

Now, we can see the below mentioned chart for the ownership of the company, in order to this company.

.4

Location of The Unit

HANUMAN INDUSTRY has main branch and the main factory at

Amreli, so the location of the Amreli unit for this company is very large. Land:The Plant is located at the Plot number 569 Palika Jaysinghpara, Nr. Shiv Industries, Nr. Ice Factory, Amreli. Certified Xerox copy of Sale / Lease Deed :The company has intered in to lease agreement with Manojkumar V. Sonpal, the owner of the plot of land admeasuring 8701 Sq. meters, R. S. No. 569 Palika, bagasara road near ice factory, Amreli. This plot of Land will be offered to the Bank as Security Collateral Area:The area of the Land is 8701 square meters The Proposed Unit is situated near Shiv Industries Bagsara Road, Near Ice Factory, Amreli. Power:The Unit proposes to install 125 KVA D.G. Set (wit Furnace Oil) Instead of GEB Power Supply. This has been decided because:(i) By using D.G. Set Cost per Unit would be Rs. 4/- Per unit as GEBs cost of Rs. 5/- per unit. (ii) Unit will not be required to give Deposit to GEB Authority. (iii) Unit would be able to operate the Plant without any Interruption against

 Water:The Unit's requirement of water is 700 / 1000 Liters Per day which will be fully available through 3 bore wells of M/s. Shiv Industries. (Sister Concern). Unit has also built the Water Tank for their purpose.

Even in the extreme case of a bad year of rainfall, water is still available via Tankers from the nearby Kamnath Dem (1 km) as well as from Dhari - Khodiyar Dams within a 45 km radius which may be required for 15-20 days at the most. Steam:The firm is purchasing one Boiler for generation of Steam Fuel Effluent Treatment Plant:The wood will be used for firing the Heater in the Boiler. The process for manufacture of Hulled Sesame Seeds does not emit any effluents. Thus ETP Plant is not envisaged Labour:Available in abundant quantity and at an economic locally from city of Amreli and nearby villages since it is predominantly agricultural area. Transport:The Company is located at Amreli, which is we connected throughout the country through a Fleet c Transporters. Thus, the

Company is availing these services to procure the Raw Materials and for dispatching the Finished Product.

 Raw Material:The basic raw-material for manufacture of "Hulled sesame seeds" is Natural Sesame Seeds (Tal). Natural Sesame Seeds - basic Raw Material is available from Agricultural Market Yard of Amreli / Rajkot / Bhavnagar etc. Or from Farmers or Market Yard in

Maharashtra / UP / Rajasthan etc. through Commission Agents.

Size of the Unit:-

The size of the unit from the point of view to Personnel Management contains 130 workers. These 130 workers are the employees of the company. 6 supervisors are working in the factory as well.

So, the organization of the employees is as under: 130 workers, 6 supervisors, 7 assistants, 4 machine operators, 2 computer operators at the factory.

Contribution of the Unit:-

HANUMAN INDUSTRY Gives contribution to both industry as well as society. The company is very large. So, it provides full of employment to the nearest villages and also to Amreli city. This is the contribution of the company to the society. Company is dealing with, any foreign countries, so it provides its contribution to the industries, too.

.5

SWOT Analysis
SWOT Analysis process that I use on HANUMAN INDUSTRY Pvt. Ltd. And Finding following conclusion

Business Mission

SWOT Analysis

Internal environment [Strengths & Weaknesses]

Goal Formulation
Strategy Formulation Program Formulation

External environment [Opportunity& threat analysis]

Implementation

SWOT Analysis Conclusion:-

Strengths
Good Brand Image in the Global Market. Strong Distribution Channel. Employee and Employer are full of knowledgeable and they have good experience.

Weakness
Lack of research & development department.

Opportunities
They have opportunities for making new agriculture product business.

Threats
Coming up of MNCs in the market.

3. STUDY OF FOUR FUNCTIONAL AREAS

 FUNCTIONS

This company deals with many countries or many companies from the various countries. So, the currency as well as the financial policies of all the nations would be different. Therefore, the Finance Department of the company plays very vital role in the company.

The function of this department is generally, to simplify the tasks of all the accounting and financial deeds of the company either its internal or external. The other approach that can also be analyzed is the consideration that finance is concerned with the cash only. So, this department keeps all the data of the transaction done by the cash through bank or anyway. At the other extreme, is for the decision-making. The functions of the Finance Department avails the simplicity of the Cash Management, Capitalization, etc. These functions contain, Executive Finance Function, Asset Management Policy of the company, Allocation of Net Profit, Cash Flows, Financial Performance of the company.

In this company, the Finance Department as well as the Accounting Department work sincerely to achieve nice performance of the company.

 CAPITALISATION

The

term

Capitalization

is

derived

from

the

word

Capital.

Capitalization means the total accounting value of the capital stock, surplus, and long term loans of any corporation.

In short, capitalization means the total amount of capital invested in the business. In this company, HANUMAN Industry, the capitalization is Rs.30, 35, 46,250/-. This can be said in words as Rupees Thirty Core Thirty Five Lacks Fourty Six Thousand Two Hundred Fifty Only.

ORGANISATION STRUCTURE This department contains a special unit called Accounts Unit. The management is done as follows:

The company has also appointed a Chartered Accountant to observe all the financial moves of the company.

 Functions of HRD

As the HRM (Human Resources Management) is very important for the company, the functions of the HR Department are very important.

Human Resources Department is the integrated use of: (a) training and development, (b) organizational development; and (c) career development, to improve individual, group and organizational effectiveness. We will discuss all the topics of the HR Departments functions that are mentioned below:

1. Learning & Employees welfare 2. Duration of HRD Programme & Contribution in Nature 3. Performance Improvement & Long Term Benefits 4. Multidisciplinary Approach 5. Key Elements in Coping with Problems 6. Career development 7. Organizational Development 8. Development of Team Spirit 9. Integrated use of Subsystems, etc

 About HR Management
The personnel management of the company, which is known as the Human Resources Management nowadays for the management point of view plays very vital role to handle the business of the company.

We can define the human resources management as per the words given by Edwin B. Flippo in his book Principles of Personnel Management, The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishment of major goals or objectives of that particular organization. Therefore, human resources management is the planning, directing as well as controlling of the performance of the operative functions as the personnel management contains the human resources management in it.

Actually, the personnel management is the combination of two terms concerned to the management sector, which are the human resources management and the organizational behavior.

Objectives of Personnel Management

The objective of the personnel department is to contribute to the realization of the organizational goals. They can be highlighted as: Utilization of Resources Good Organizational Structures Maximum benefits to Human Force To Provide Welfare Facilities To develop all the individual Groups To Satisfy Individual Needs
To develop morale of the Employees.

 Promotion Policy:-

This company has the main office and the factory at Amreli only, so they dont have the ideal transfer policy. They usually transfer the employee to its sister concern.

The company gives the promotion to the extra ordinary employee to the upper post. For Illustration, if the Asst. Manager is fit for all the work of the company and have good managerial skills, he or she would get the promotion to the Managers post.

Organization Structure

Organization of the Human Resources (Personnel) Department is generally as follows:

Here, generally the Chair Man-cum-Managing Director, Mr. Manoj Sonpal is the Head of all the departments. Also, the General Manager, Mr. Rajiv and the Assistant Manager Mr. Mukesh Solanki are the Heads of all the departments. The Manager (Personnel) leads the workers at the office as well as at the factory. He also works with the dealer companies for the exports process.

Types of workers & shifts

Workers:The company works with the foreign country, so the workers are classified on the basis of their communication skill. The person who has smart communication skills can be a tele-caller, thus, the person with good documentary knowledge can work with the documents, like bills, etc. Shifts:The company has to produce sesame seeds in very much quantity as per the demand of the dealer companies. So, the factory of the company works 24 hours. The workers have 3 shifts.

7am to 3pm 3pm to 11pm 11pm to 7am

The office work can be done at the office time, so the shift time for office is: 9am to 1:30pm & 4:30pm to 9pm

 Training Management:The employees of the company must have good communication skills as well as a very wide range of knowledge in Forex Market and the currencies of all the countries and its values concerning to the US Dollar. Thats why; the experienced persons of the company are the trainers, who give training to the employees of the company.

Wages & Salary

Wages & Salary Administration is done in the company by the Accountants. Salaries for the workers are given to them by cheque. They are paid salaries Rs.4000/- to Rs.6000/-. Managers of all the departments are paid round about Rs.10000/- to Rs.12000/-. The Asst. Manager and the Manager are paid Rs.20000/- to Rs.25000/-. These salaries are generally made to the permanent employees of the company. For the labors of the company, the company pays wages to them for their particular works.

The wages are paid as follows: For loading the full container (truck) Rs.50 per metric ton For unloading the full container Rs.30 per metric ton For packing the product into bags Rs.20 per metric ton, etc.

 Exports & Tele-Caller

Exports:The company HANUMAN Industry has main work to export all the produced products. They exports the products in foreign countries like, North America, South America, Western Europe, Eastern Europe, Eastern Asia, Southeast Asia, Mid East Africa and Oceania. All the countries have their own different rules of importing products. Thats why; company has departed a department named Exports Department. They mainly work with all the imports law for different countries. The manager Mr. Rajiv, himself is the Manager (Exports), since he has very good knowledge of Forex Market.

Tele-Caller:The actual work of this group is generally to call all the dealers of the company. As the company deals with the foreign, the persons in this group must have good communication skills, good command over English language and also quite good knowledge about the rates of currencies of both the countries, especially their values related to the Us Dollar.

 General Evaluation

The Human Resources Department of the company, Shiv Industry is working very hard with the discipline of the company. The employees of the company are very particular as well as regular in their job. The company has very intelligent and ethical managers, who are very sincere to the company.

The company thus has very good employees, so the directors of the company established a department in the company for more work. This is The Consultation Department. The main work of this department is to appraisal the employee for the development of them.

This department also gives suggestions to the employees in whole year as well as it advises and provides guidance for the employees to promote them. They also make programmes that can increase the skills of the employees. Thats the way; the company has very nice and ideal struc ture of its Human Resources Department.

 About Product

In our daily life, we buy different kind of products from the market. In this way, we can say product is one that has the capacity to satisfy our needs or wants. Thats why; the product is at times defined as the bundle of potential utility. According to Dr. S.R.Davar, A product may be regarded from the marketing point of view as the bundle of benefit that is being offered to consumers. In the words of Philip Kotler, A Product is a bundle of physical service and symbolic particulars expected to yield satisfaction or benefits to the buyer. According to Alderson, A Product is a bundle of utilities consisting of various product features and accompanying services.

A Product has the below mentioned characteristics: I. Tangible Attributes II. Intangible Attributes III. Exchange Value IV. Utility/Benefits V. Differential Features VI. Consumer Satisfaction VII. Business Need Satisfaction Here, in this company, the products, which are manufactured by the company, are generally, all the types of sesame seeds and row-cottons, as we have discussed before.

 Product Line
Product line is a group of different product items that are concerned closely to each other. All the brands of the same product are product line. In the above mentioned statement, the words Product Item defines a scientific product of certain specification and may be distinguished with other product, or brand. A particular brand of the product can be said the product item. Thus, we can also say that its clear that a single product item having same specifications like colour, size, utility, etc. is a product item. All the product items in the large group are collectively known as product line.

Here, in this company, the product is only sesame seeds and rowcotton. Thats why; the product line is also only sesame seeds and row-cotton. Because both the products have the same demand as they both are agricultural products.

Product Mix
One major management aspect involved in product policy is the decision concerning Product Mix. The product mix is one of the elements in the product policy. Since most of the manufacturers are diversifying their products, this element of the product policy is more important nowadays in the criteria of business production. After all the discussions we can define the product Mix, as its the list of all products, which are offered for sale by a company or any business unit.

Here, in this company, the products are generally the sesame seeds and row-cotton. Thats why; the expected product mixes for this company are these both products as we stated above, the sesame seeds and the rowcotton, obviously.

 Types of Raw-Material
Generally, this company produces two products as we have discussed earlier that are sesame seeds and row-cotton. Among the both the product sesame seeds are the main product.

To make or to produce sesame seeds purely, the raw-material used is obviously harvested sesame seeds. The harvested sesame seeds are produced in the farm by the farmers. They take care of the sesame seeds during the growing time of these seeds. Then at the right time or we can say when the time comes properly, they harvest the sesame seeds, which are in the farm.

First of all, they collect the sesame seeds directly from the land, which is known as pre-harvested sesame seeds. They are not pure, but after some purification they make it harvested seeds, which are about 45%-50% pure. If the purification process is done clearly, this figure can be earned up to 55%. This process is done by human-being. Its not done by any machine. If we consider the harvested sesame seeds are 50% pure, the pure sesame seeds in it are 40%, 10% in it are admixtures, about 10% is of water, dust also contains 25% of it, and some other minerals are round about 15%. Here, 40% are pure seeds, 10% admixtures with it are containing destroyed or bad types of sesame seeds. 10% water, 25% dust, where as 15% other mineral contains the fertilizers, some other seeds, anticides, some organic chemicals, etc.

So, this type of sesame seeds is called harvested sesame seeds, which are brought to the purification at the factory/refinery.

The other by-product of the company is row-cotton. For production of this item, the raw-material to be used is harvested cotton seeds. Cotton seeds are generally measured in candy. The unit of its measurement is Candy.

As we discussed about the harvested sesame seeds, the harvested cotton seeds also have the same contents. The purity of the cotton seeds are round about 50%. Thats the way; these both type of raw-material are brought to the refinery for the purification process. We will discuss this process in the Production Process in details. For further information, theres also a flow chart of the production process is prepared.
The sources of raw-material can be classified as follows:

Natural Sesame Seeds:Natural sesame seeds are the basic raw materials and are available from the market of adequate quality of the following varieties : White Kashmiri Purbia Black

The White Sesame Seeds are of the best quality and grown locally in Saurashtra, specifically in Amreli District. Bulk of our processing for cleaning and crushing will be done on White sesame Seeds. Cleaning and processing is a 12 months activity since though White Seeds are grown every year only in a single crop (of 90 days cycle from sowing to harvesting) and the harvesting is done by October end / November start, the same is available at a nominal price variation throughout the year. The storage property of Natural Sesame Seeds at atmospheric conditions without spoilage makes this eminently possible.

The sourcing of Sesame Seeds is as per the following pattern:% of Sourcing 95% Available from Saurashtra (of which Amreli Dist. has major share) 4% Rest of Gujarat Baroda, Jambusar, Nadiad, Kathlal. Kapadvanj. 1% U.P. Agra, Jhansi, Kanpur Small seeds and Brownish. Get washed away while hulling with 2.5 - 3 kg. Mud / bag. M.P. Indore, Bhopal, Ujain Higher sand and stone content up to 3 to 3.5 kg. Mud / bag. The purchases from Saurashtra are from the Market Yards of Amreli, Rajkot Bhavnagar, Mahuva, Rajula and Savarkundla or directly from large farmers from the villages of Chalala, Igorala, Mota Aakadia, Barvala, Lathi, Amrapur, Bagasara, Munjhiasar, Mithapur and Bhalgam of Amreli District. Characteristic Bright in colour with about 100 gm. mud / bag. Dull with 1.5 - 2 kg. Mud / bag.

Harvest season of sesame in major states is depicted below States Gujarat West Bengal Rajasthan Tamil Nadu Andhra Pradesh Madhya Pradesh Maharashtra Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

 Production process

Production means of Creating Utility Utilities Are. Form Utility. Place Utility. Time Utility. Possession Utility. Service Utility. Knowledge Utility.

Production process of the company is very important thing. As we have seen earlier that harvested sesame seeds are brought to purify them are 50% pure. When the raw-material comes to the refinery, first of all the purification process is done handmade. It contains about 50% pure sesame seeds.

After all the process, the seeds are checked by the supervisor. Then after they are brought to factory for further purification by machine. The machinery of the factory vacant very much space. The machinery is totally handled by a computer operator, because the machine is totally concerned with the master computer. The main machine is called the Huller, as this process of purification is called hulling process. The machine at the first was imported from London, England was costed less, and the purity of the final product was 95%. But, now the company has imported an expensive huller from Japan, which gives the purity up to 99.5%.

It means the final product in the first one was95% pure, while 4% was admixtures and 1% part was of the water. Where as in the latest machine, the pure sesame seeds can be achieved are 99.5% and 0.5% is of admixtures. There is not a single part of water because, in this process, the final result of the product is dried in the drier machine. Sometimes the purity can be earned up to 100%. We can define the general process like below:

Cleaned and pre-sorted natural and hulled sesame seeds are bought from the open market. They are put Into "Sortex Machine" where they are pushed by compressed air through multiple channels wherein they are sorted through optical sensors using laser technology. All discolored kernels, peck defects, foreign material and insects etc. are removed automatically through ejectors so that the finished product attains purity of 99.5% plus.

Processing same seeds twice through the sortex machine cycle can achieve up to 100% purity also.

Packing of sorted / purified seeds is done in various pack sizes of 10 to 50 kg. In jute / PP bags as per Customers requirements.

The packed bags are dispatched by road to the appropriate port where they are loaded into ship after SGS Inspection etc.

This machine

has

been successfully tried

in the country

with

acceptable and better results. We can also understand from the flowchart as well. Thats the way; the final product is demanded in the foreign countries.

 About Market
Market is the basic term to understand the Marketing Management of any company. To do all the marketing activities, the Market is the center. A market, in general, may be described as the place where goods and/or services are offered to for sale. We can also explain the term market as where sellers and buyers meet and the title to goods is transferred. The term market is derived from a Latin word Mercatus which means To trade. At the end we can define the market place as: A place where market is held, An assembly of people-buyers and sellers, An area of operation, An organization, which facilitates exchange of commodities or buying and selling of goods, An act of buying and selling, A course of commercial activity.

In this company we will see about the market in this marketing department segmentation.

About Marketing
We have studied the term Market. Now we will see the term Marketing.

Market is the place where all marketing activities are done. So, in this sense, Marketing is human activity directed as satisfying needs and wants through exchange process. The marketing may be done by either exchanging goods or the same by services. These both are marketing.

The American Marketing Association has published the term marketing as: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

Here in this companys point of view, the marketing can be defined as the promotion of the product sesame seeds. We will see in details of this term in this segmentation.

Functions of marketing
We can understand the general functions of the marketing department as from the definitions of market and marketing.

Here in this company, the marketing department is working differently than any other companies, because of its product and business. HANUMAN Industry mainly sells its product to the other foreign countries. Thats why; the marketing policy of the company is very different than all other companies.

Generally, the employees who work in the marketing department do the international marketing rather than to do the normal one.

HANUMAN industry is dealing with 12 to 15 countries. This EX-IM (Export-Import) work needs a large investment for the company. So, the company who is the buyer of the product of this company must pay the advanced amount to deal. These international trade transactions are done by the marketing department. This department also survey the market and products performance, etc.

 Organization
Organization of the Marketing Department is generally to be organized as follows:
General Manager

Asst. Manager

Manager (Marketing)

Project In Charge(Think Panel)

Workers (Marketing)

Workers (Think Panel)

As we know, generally the Chair Man-cum-Managing Director, Mr. Manoj Sonpal is the Head of all the departments. Also, the General Manager, Mr. Rajiv and the Assistant Manager, Mr. Ajay Bosmiya are the Heads of all the departments. The Manager (Marketing) leads the workers at the office. He also deals with the foreign buyers of the product. He also takes the workers active in the think panel for more and more ideas for the marketing and Forex. Thats the way here, the departments marketing has also included of the Think Panel. This think panel is concerned with the Marketing department indirectly.

The main work of this department is to have focus upon the performance of the product in the market. They take decision of the advertisement or any other sales promotion.

 Marketing strategy
The base of the strategy and analysis in this company is generally, product planning. The reason for the strategy and analysis is to promote the product and to sale out the product in more and more quantity.

For increase in the sales of the product of the company, the company must apply these two factors: strategy and analysis. For this, the company must follow the theory of product planning.

For this work, the company also makes different the market in the segments. The segmentation of market is necessary to serve better to the target market.

With the help of segmentation of the market, the company plans of the product. This work is majorly done by the marketing department. This department has also a forecasting committee which has knowledge about the commodity market.

As the prices of the commodities are changed 3 to 4 times in a year, as per the seasons, the department plans for the product 3 to 4 times. Its depended upon the season. If a season is changed, the plan must be done for the product.

The decision making for the product planning is depended upon the below mentioned activities: 1. Marketing Survey 2. Innovation 3. Market Research 4. Study of Competitors Products 5. Marketing testing

 Product line & product mix

We have discussed about the Product Line and Product Mix earlier in the Production Department.

So, as we know, this company manufactures generally two products, Sesame Seeds and Row-cotton, among which the Sesame seeds is the main product. Therefore, the sesame seeds can be taken as the Product Line as well as Product Mix for this companys point of view.

Chanel of distribution
The channel of distribution or we can say, the marketing channel can be defined as the marketing institutions serial, which facilitates transfer of the title to a product as it move from the producer to ultimate consumer or an industrial user.

We can say the distribution of channel like this, the route taken by the title to the product as it moves from the producer to the ultimate consumer or any industrial user. Thats the way; the channel of distribution in the sense of marketing or management is an important media (medium) to reach the product at every corner of the market. Therefore, the consumer can get the product easily from anywhere.

In the industrial product, it has direct contact to the marketing officer. This type of officer mainly contacts the consumers. But, in the other way of thinking, if the customer is new in the market and he/she doesnt have the knowledge to contact the marketing officer, can try to follow the following link for the reference:

Distribution Channels are as follows:(1) Channels without middleman (2) Channel with one middleman (3) Channel with two middleman (4) Channel with three middlemen Direct sales Through Agent and Retailers Through wholesaler And Retailers Through wholesalers, Semi wholesalers

Market research
The systematic gathering, recording and analyzing of data about problems related with the marketing of goods and services is called Marketing Research. Thats why; this is a very important term to know.

For the accurate information about the market and marketing, it is necessary to make useful decision about the price, production, advertisement, promotional measures, etc. This information may be obtained from internal as well as external sources like market survey, product performance search, etc. activities are necessary to collect information about the market position.

In the case this company, HANUMAN Industry, it is not any separate marketing research department. But, it gets the information from the consumer countries directly. This work is done by the marketing department of the company for the development of the new product or production process, machinery, improvement in the products quality, new analytical methods, waste reduction, etc.

And thus, the research and development (R & D) are continuously carried out by the company.

 Advertisement
The promotional policy of the product is used to increase its sales, so it is also called as the Sales Promotion. The term Sales Promotion consists of those activities, which are designed to bring a companys goods to the favorable intention of the consumers.

So, the Promotional Policy of the Product is an important activity being performed by the marketing department of the company to increase the sales volume. It uses some goods criteria for sales promotion.

Here, in this company, the sales promotion is done by advertisement. These advertisements are not for ordinary people, its for companies in the foreign countries. The advertisement is the medium by which a company can aware the consumers about the product. The company advertises for the product only on the internet.

Pricing policy
First of all the price is the term which is used to exchange the values against the product or the service. Now, in this sense, the pricing policy is to set the price for any particular product or service. In HANUMAN Industry, the pricing policy of sesame seeds is designed or set on the base of seasons, as the product is a commodity. This work is done by the Head Office of the company. Finally, the set price for the sesame seeds is signed by the Director.

The structure of the price of the sesame seeds is generally calculated by the below mentioned link:

Production Cost + Administrative Cost + Depreciation + Taxes + Profit Margin = Total Cost of the Product.

The Pricing Policy thus, is a very challenging process, as its a segmentation of classes. They have to standardize the price normally they fix price big then they give discount as follows. Thus, the company also gives some discount. Then the payment is made by the net banking by the consumer company.

General evaluation
The Marketing Management of the company is very nicely going on because of the Marketing department of the company. This department works for the company round the clock. That we can say, because Mr. Mukesh Solanki, the Asst. Manager of the company is himself a very knowledgeable person of the Marketing and Market of the commodity product. He is never free in the company. If his work is over, he works for the promotional policies of the product. The Manager Mr. Rajiv himself is the master of Information Technology field. So, designs the websites for the company and also deals with the customer countries online. Thats the way; the Marketing Department of this company is very ideal one.

4.1

Introduction

Demand of the Product, Customer Satisfaction, Inventory Decision, Market survey should be conducted properly because that helps the top management in decision making. A research gives the best result only when the studies are properly conducted. In fact research is an art of scientific investigation research is the systematic & intensive study directed towards a more complete knowledge of subject study and if start due to some specific question or problem. Research means search again &again

Research methodology defines what the activity of research is, how to proceed how to measure progress, and what constitutes success. Research is essentially an investigation a recording & analysis of evidence for the purpose of gaining knowledge.

Without Research mordan business can not making best for his business

4.2

Define the Problem

In my SIP I Know that system of inventory management at hanuman industry Amreli gives a satisfaction or not. I also found that which the problem for unsatisfaction is.

4.3 Literature reviewing of Study

Introduction

A Study on Inventory Management System Inventories constitute the most significant part of the current assets of a large majority of companies in India. On an average, inventories are approximately 60% of current assets in public limited companies in India. Without any adverse effect on production and sales,By using simple inventory planning and control techniques The reduction in excessive inventories carries a favorable impact on a companys profitability.

What is inventory?
Despite its importance to the supply chain, inventory is not universally well understood. It is variously characterized, both positively and negatively, as an economic asset to a non-income-producing use of capital funds. Only when considered in light of all quality, client service and economic factors from the viewpoints of purchasing, manufacturing, sales and finance does the whole picture of inventory become clear. No matter the viewpoint, effective inventory management is essential to supply chain competitiveness.

Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials.

In other words, Inventory is a quantity or store of goods that is held for some purpose or use (the term may also be used as a verb, meaning to take inventory or to count all goods held in inventory). Inventory may be kept "inhouse," meaning on the premises or nearby for immediate use; or it may be held in a distant warehouse or distribution center for future use. With the exception of firms utilizing just-in time methods, more often than not, the term "inventory" implies a stored quantity of goods that exceeds what is needed for the firm to function at the current time (e.g., within the next few hours)

Various forms of inventories

Raw materials

Work -inprogress

Forms of Inventories

Finished good's

Stores & Spares

 Why keep inventory?

1). Transactions motive. Emphasizes the need to maintain inventories to facilitate smooth production and sales operations

2).Precautionary motive. Necessitates holding of inventories to guard against the risk of unpredictable changes in demand and supply forces and other factors.

3).Speculative motive. Influences the decision to increase for reduces inventory leveis to take advantage of price fluctuation.

Function of inventory
One reason organization s maintain inventory is that it is rarely possible to predict sales levels Production levels Demand and usage patent exactly.

In such situations, Inventory serves as a buffer against uncertain and fluctuating demand keeps a supply of item available in cash items are needed by the organization or its customer. The many functions that inventories perform can be summarized as follows Smoothing out irregularities in supply. Buying or prod using in lots or batches. To meet seasonal or cyclical demand. To take advantage of price discounts while buying items. To maintain continuity to operation in processes.

 Inventory cost
There are two type of namely. Inventory cost associated with inventory

A) Cost associated with the parches of inventory item. I.e., cost of materials purchased. B) Cost on materials consisting of three basic costs namely. i. ii. iii. Ordering cost or acquisition cost Caring or Holding cost Shortage cost

Techniques and software of Inventory management

Inventory management is the active control program which allows the management of sales, purchases and payments. Inventory Management and Inventory Control must be designed to meet the dictates of the marketplace and support the company's strategic plan. The many changes in market demand, new opportunities due to worldwide marketing, global sourcing of materials, and new manufacturing technology, means many companies need to change their Inventory Management approach and change the process for Inventory Control.

Despite the many changes that companies go through, the basic principles of Inventory Management and Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new terminology, but the underlying principles for accomplishing good Inventory Management and Inventory activities have not changed.

The Inventory Management system and the Inventory Control Process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers.

Inventory Management and the activities of Inventory Control do not make decisions or manage operations; they provide the information to Managers who make more accurate and timely decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory Control activities are:
Sales Forecasting or Demand Management Sales and Operations Planning Production Planning Material Requirements Planning Inventory Reduction

Inventory management software helps create invoices, purchase orders, receiving lists, payment receipts and can print bar coded labels. An inventory management software system configured to your warehouse, retail or product line will help to create revenue for your company. The Inventory Management will control operating costs and provide better understanding. We are your source for inventory management information, inventory management software and tools

Some Inventory Management Softwares Are : AdvancePro by AdvancewareTechnologies,

EverestAdvanced by Everest Software ,NTSWMS by National Technology Services etc...

 Other Lot-Sizing Techniques: There are a number of other lot-sizing techniques available in addition to the facts stated above. These include the fixed-order quantity, fixed-order-interval model, the single-period model, and partperiod balancing.

Fixed-order-interval model.
The fixed-order-interval model is used when orders have to be placed at fixed time intervals such as weekly, biweekly, or monthly. The lot size is dependent upon how much inventory is needed from the time of order until the next order must be placed (order cycle). This system requires periodic checks of inventory levels and is used by many retail firms such as drug stores and small grocery stores.

Single-period model.
The single-period model is used in ordering perishables, such as food and flowers, and items with a limited life, such as newspapers. Unsold or unused goods are not typically carried over from one period to another and there may even be some disposal costs involved. This model tries to balance the cost of lost customer goodwill and opportunity cost that is incurred from not having enough inventory, with the cost of having excess inventory left at the end of a period.

 Fixed-order-quantity model.
EOQ is an example of the fixed-orderquantity model since the same quantity is ordered every time an order is placed. A firm might also use a fixed-order quantity when it is captive to packaging situations. If you were to walk into an office supply store and ask to buy 22 paper clips, chances are you would walk out with 100 paper clips. You were captive to the packaging

requirements of paper clips, i.e., they come 100 to a box and you cannot purchase a partial box. It works the same way for other purchasing

situations. A supplier may package their goods in certain quantities so that their customers must buy that quantity or a multiple of that quantity.

Just-in-time (jit). Just-in-time (JIT) is a philosophy that advocates the lowest possible levels of inventory. JIT espouses that firms need only keep inventory in the right quantity at the right time with the right quality. The ideal lot size for JIT is one, even though one hears the term "zero inventory" used.

Steps to Effective Inventory Management

There are two different approaches organizations can make with regard to inventory. They can assume it is just a necessary evil and start a special inventory reduction program whenever cash gets tight. Or they can make strategic decisions on the level to carry, put an inventory management process in place to actively manage inventory and continually improve the business results.

4.4 Objective of study

To study and understand as to what exactly is Inventory management system

To study the operational feasibility and utility of Inventory Management System To know functioning of profational in inventory management system at hanuman industry. To forcast challenges for inventory management system. To aware about technology adopted for inventory management system at hanuman industry.

4.5 Rationale of the study

The study is to find out and help to know about inventory management system. The main rational of the research to aware about inventory management system at Hanuman Industry and how it work? And which types of steps we adopt that help to the employee for understand about inventory significant in the industry. Formalized studies are typically structured with clearly states investigative question. Most of the social research comes under this category. The simplest study concerns a univarite question in which we ask about the size of the inventory, forms, awareness, or adoption. and forecasting

4.6 Limitation of the study

Time limit:
The time span for the research is less, , so I have collected data through secondary sources.

Lack of Knowledge:
An employee has no more information related to inventory management
system, so i not get accurate results.

Lack of expertise:
There is chance of lack of expertise knowledge in the particular field.

Limited no of employee:
The industry has less no of employee, so I have limited mind for tools answer.

4.7 Data collection

For my research primary method of data collection was appropriate so data was collected though questionnaires.

Data collection has two methods. Which are as under:

Primary Data Secondary Data

Primary Data:
The primary data are original data which are collected for the first time for specific purpose. Such data are published by authorities who themselves are responsible for their collection, And in these project to collect as a questionnaire.

Secondary Data:

The secondary data are those which have already been processed. Sales analysis summaries and investor annual reports would be examples of secondary source as they are compiled from a variety of primary source. And in these project to collect departmental data as a secondary data.

Sampling Design:
1. Probability: This is based on the concept of random selection a controlled procedure that assures that each population element is given a know nonzero chance of selection.

2. Nonprobability: This is arbitrary and subjective studies.And also each member of the population does not have a known chance of being included.

3. Sampling Unit: It should be based on worker who worked in the company .So that its sample unit is 350.It is denoted by N .

4. Sample Size: Is the based on no. of worker who help for gives information regarding the company. It is denoted by n . And that is only 30.

Instrument:
In this project, in the survey method to prepare a questionnaire and formulated the data analysis and interpretation

4.8 Data Analysis & interpretation

1. Are you aware about Inventory Management System? Yes ------------------------------------------85.70% No ------------------------------------------- 0% Do not k now/ Can not say ------------- 14.30%

yes No Do not know/ Can not say

Interpretation: The awareness level among the company officials regarding the existence, functioning and applicability of inventory management system is high that is85.70percent, as per the result of the study.

2. Do you know that your company has an inventory management system? Yes ---------------------------------------------- 92.85% No ------------------------------------------------ 0% Do not know/ Ca n not say -------------------- 7.15%

Yes No Do not know/ Can not say

Interpretation: The company officials are aware about their company having an inventory management system. 92.85 per cent of the respondents do have this awareness as against 0 per cent0 per cent of the respondent.

3. Do you agree that there should be an inventory management system in place in any organisation / company? Agree ------------------------------------------------ 71.40% Disagree --------------------------------------------- 0% Do not know/ Can not say ------------------------- 28.60%

Yes No Do not know/ Can not say

Interpretation: According to the response to the above question, it appears that every Company/organization should have a system or mechanism in place for managing their inventory.

4. For what reasons do you feel that there should be an inventory management system? To smoothen operational requirement ---------------------85.71% To save time ---------------------------------------------------- 14.29% To maintain accountability and transparency ----------------0% Other reasons --------------------------------------------------- 0% Do not know/ Can not say ------------------------------------ 0%

To smoothen operational requirement To save time To maintain accountability and transparency Other reasons Do not know/ Can not say

Interpretation: To everyones surprise, 85.71%of the respondents feel that it is for smoothen operational requirement pupose that inventory records are maintained and hence the need for an inventory management system. This is followed by the need for saving time and the maintain accountability and transparency.

5. Do you agree that the inventory management system in your company has fulfilled the needs for which it was evolved? Strongly Agree -------------------------------------- 78.57 Agree ------------------------------------------------- 14.28% Disagree ----------------------------------------------- 7.15% Strongly Disa gree ------------------------------------- 0% Do not know/ Can not say ---------------------------- 0%

Strongly Agree Agree Disagree Strongly Disagree Do not know/ Can not say

Interpretation: From the above response, it appears that the inventory management system has more or less achieved its objectives for which it was in place. This is evident from the 92.85% of the respondents opinion who have either agreed or strongly agreed in favour of this proposition. However the response of 7.15% of the respondents who think otherwise also speaks something.

6. What according to you is the major benefit of going for an inventory management system by your company? It has made storage and retrieval of material easier ------ 14.28% Improved Sales Effectiveness -------------------------------28.57% Reduced Operational Cost -----------------------------------50% OtherBenefits ----------------------------------------------- 7.15% Do not know/ Can not say ------------------------------------ 0%

It has made storage and retrieval of material easier Improved Sales Effectiveness Reduced Operational Cost Other Benifits Do not know/ Can not say

Interpretation: As regards the benefits of having an inventory management system by the company, the respondents are of the opinion that the major benifit lies in Reduced Operational Cost . This is followed by increasing sales effectiveness and made storage and retrieval of material easier. However, all these benifits are interlinked and the sedation between them is more analytical than anything else.

7. Do you have skilled professionals in your company for inventory management? Yes ---------------------------------------------- 92.85% No -------------------------------------------------- 0% Do not know/ Can not say ---------------------- 7.15%

Yes NO Do not know/ Can not say

Interpretation: A industry has an 92.85% gives answer yes that means company has an more skilled professionals in your company for inventory management

8. What category of professionals is managing your company inventory? Skilled and trained ---------------------------------78.55% Only skilled but not trained ----------------------- 7.15% Non skilled but trained professionals -------------- 7.15% Non skilled and non trained professionals --------- 0% Others --------------------------------------------------- 7.15%

Skilled and trained Only skilled but not trained Non skilled but trained professionals Non skilled and non trained professionals Others

Interpretation: As already stated above in the earlier question, availability of trained and skilled professionals for inventory management needs serious attention of the company.

9. Do you agree that your company gives more emphasis on software than skilled manpower with regard to inventory management? Strongly Agree -------------------------------------- 28.57% Agree ------------------------------------------------- 64.28% Disagree ----------------------------------------------- 7.15% Strongly Disagree ------------------------------------- 0% Do not know/ Can not say ---------------------------- 0%

Strongly Agree Agree Disagree Strongly Disagree Do not know/ Can not say

Interpretation: The above response gives an impression that the company puts greater emphasis on software than skilled manpower for inventory details management.

10. Do you think that the software used by your company is according to the design and needs of the system? Yes -------------------------------------------------- 92.85% No ---------------------------------------------------- 7.15% Do not know/ Can not say ------------------------- 0%

Yes NO Do not know/ Can not say

Interpretation: The company appears to be using the software according to the system requirement and design and according to the customers needs.

11. What is the prime challenge before yor company with rehard to inventory management? Lack of trained pro fessionls ------------------------------- 21.43% Maintenance cost -------------------------------------------- 50% Changing requirements of customers ---------------------- 21.43% Other problems ---------------------------------------------- 7.15% Do not know/ Can not say ------------------------------------- 0%

Lack of trained professionls Maintenance cost Changing requirements of customers Other problems Do not know/ Can not say

Interpretation: Maintenance cost with Lack of availability of trained professionls coupled and changing needs of the customers are perceived to be the inventory challenges before the company.

12. What is the future of inventory management system in your company? Will continue as a successful mechanism --------------------- 0% May change accoeding to time -------------------------------- 85.70% Shall collapse --------------------------------------------------- 0% Do not know/ Can not say -------------------------------------- 14.30%

Will continue as a successful mechanism May change accoeding to time Shall collapse Do not know/ Can not say

Interpretation: The future of inventory management system at a Hanuma Industries pvt lt appear to May change according to time by the response of our study.

4.9 Findings

Primary data analysis (Bio profile of the Respondents):-

No

Percent

Age Group/Sex/ graduates

1 2 3 4 5 6

35.71 28.57 35.72 98.85 7.15 28.57

35 To 50 21 To 24 above 50 Male Femalel Graduates

The future of inventory management system at a Hanuma Industries pvt lt appear to May change according to time by the response of our study. The company appears to be using the software according to the system requirement and design and according to the customers needs.

Maintenance cost with Lack of availability of trained professionls coupled and changing needs of the customers are perceived to be the inventory challenges before the company. The above response gives an impression that the company puts greater emphasis on software than skilled manpower for inventory details management.

As already stated above in the earlier question, availability of trained and skilled professionals for inventory management needs serious attention of the company. Recruitment of skilled professionls well vesed with latest inventory management technology, particulary in chemicals and paint industry is a concern for the company as it appers that it lacks in this domain.

As regards the benefits of having an inventory management system by the company, the respondents are of the opinion that the major benifit lies in Reduced Operational Cost . This is followed by increasing sales effectiveness and made storage and retrieval of material easier. However, all these benifits are interlinked and the sedation between them is more analytical than anything else.

4.10 Recommendations & Suggestions

Recommendations & Suggestions can be use by the firm for the betterment of the firm. I would like to recommend and suggest few points based on my research in the organization.

1.

Company should provide training to the employees for better inventory management

2.

Company should arrange workshop to train employees about the importance of inventory management control system.

3.

Company should reduce the inventory holding period to reduce the inventory cost

4.

Company should develop new and modern Management Information System to management its inventory

5.

Company should develop policy to check inventory on weekly basis rather than monthly basis.

4.11 Conclusion

The following are strength that we found during my SIP Strengths

Good Brand Image in the Global Market is the most significant for hanuman indusry. Hanuman industry has Strong Distribution Channel. Employee and Employer are full of knowledgeable and they have good experience. Above strengths aer shows that and I also faund that Hanuman Industry Pvt Ltd Amreli has an Good Brand Image in the Global Market t have Strong Distribution Channel. And Employee and Employer are full of knowledgeable. if industry make mordant inventory management system so industry enhance his competative advantages.

The systems should also be integrated into systems used for patient management, materiels management, resource management, billing and scheduling. Adherence to standards or the ability to use standards-based practices is also necessary. When this is taken into account, Hanuman Industry sfacility can manage its inventory in a manner thats financially, legally and medically sound.

4.12 Bibliography

Books Bhatt Shridhara K, Production and Material Management, Himalaya Publication House, Second Edition 2005, Page No :566 To 615 Pandey I M, Financial management, Vikas Publication House pvt ltd, Ninth Edition, Page No :624 To 635

Bhattacharyya Dipak Kumar , Research Methodology, Excel Book, Second Edition

search

Personal Interview tool:-

A STUDY ON INVENTORY MANAGEMENT SYSTEM AT HANUMAN INDUSTRY

By:- Hardik A. Bhalu General Information: Date: - / /2010

Name: ________________________________________________________ Designation: ________________ Age: _____________ Sex: _________________________ Qualifications: __________________ Experience: ____________________ Others: _______________________

Study Questions: 1. Are you aware about Inventory Management System? Yes No Do not know/ Can not say 2. Do you know that your company has an inventory management system? Yes No Do not know/ Can not say 3. Do you agree that there should be an inventory management system in place in any organisation / company? Agree Disagree Do not know/ Can not say 4. For what reasons do you feel that there should be an inventory management system? To smoothen operational requirement To save time To maintain accountability and transparency Other reasons Do not know/ Can not say

5. Do you agree that the inventory management system in your company has fulfilled the needs for which it was evolved? Strongly Agree Agree Disagree Strongly Disagree Do not know/ Can not say

6. What according to you is the major benefit of going for an inventory management system by your company? It has made storage and retrieval of material easier Improved Sales Effectiveness Reduced Operational Cost Other benefits Do not know/ Can not say 7. Do you have skilled professionals in your company for inventory management? Yes No Do not know/ Can not say 8. What category of professionals are managing your company inventory? Skilled and trained Only skilled but not trained Non skilled but trained professionals Non skilled and non trained professionals Others 9. Do you agree that your company gives more emphasis on software than skilled manpower with regard to inventory management? Strongly Agree Agree Disagree Strongly Disagree Do not know/ Can not say 10. Do you think that the software used by your company is according to the design and needs of the system? Yes No Do not know/ Can not say

11. What is the prime challenge before your company with regard to inventory management? Lack of trained professionals Maintenance cost Changing requirements of customers Other problems Do not know/ Can not say 12. What is the future of inventory management system in your company? Will continue as a successful mechanism May change according to time Shall collapse Do not know/ Can not say