STORES MANAGEMENT

PRESENTED BY
SHRI. V. D. MENDHE
B.E.(Elect.), M.B.A. (Fin.& Mktg.)
A.C.M.A., CEA(BEE), LLB
SUPERINTENDING ENGINEER
(Training)
Corporate Office, Mumbai


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House Wife is the
Best Materials Manager

What
is
Materials
Manager
Stores Management
It is management of movement of materials
right from receipt to issue.


Functions
of Stores

Receive
Materials
Store
Materials
Issue
Materials
The Work of Stores Staff starts from
receipt of a purchase order is supposed to be
observed in following sequence.
Study of Purchase Order : Note delivery period , Note
important Clauses
Follow up for supplies
Watching dispatches of Materials
Clearance of Materials



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ISSUE MATERIAL RECIEPT INTIMATION TO CONCERN SUPPLIER
6
7
8
9
10
(S.R. NOTE)
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Inspection of Materials
Giving Receipt Intimation to various
authorities
Correspondence with Supplier
Correspondence with H.O
Lodging of damages claim.
Acceptance of Material.
Preparation of S.R. Note
Sending SR Note for Valuation
Payment
Keeping damages/rejected Account.

1. Bin Cards : Entering the S.R. Notes into Bin
Cards, (xxxxx)
2. Issue :
a) Keeping proper record of allocation of
material issue material on valid requisitions as
per allocations, prepare gate pass. Entering into
the Bin cards.
b) Maintaing Control register for proper control
on requisitions
C) Sending one copy of requisition after issue of
material to division office for valuation credit
notes.
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WEIGHTED
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Inventory comprises a significant portion of
the assets of many enterprises and the bulk
of working capital is locked up in this item. It
generally constitutes the second largest item
after fixed assets in the financial statements.
It is for this reason that inventory valuation
and inventory control have assumed great
significance.
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1) Periodic Inventory 2) Perpetual Inventory
Periodic Inventory
Value of stock is ascertained by physically
counting the stock at the end of the year.
It may take a week to finding stock figure
Receipt & Issues have to be suspended.
It is based on physical stock taking
It provides inventory data periodically
usually once in a year.
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Perpetual Inventory (Continuous Stock Taking)
This is continuous stock taking at any time
just by comparing the physical balance with
book balance.
Continuous process
No need to suspend Receipt & Issues of
materials.
It is based on records .
Perpetual Inventory provides the data on a
running basis.

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3. Perpetual Inventory : Taking perpetual
inventory of certain important items say A
type of items. It is stock taking of certain
items at regular intervals say one month and
find out shortages/excesses.
4. Reconciliation : Reconcile bin cards with the
stock ledgers at regular intervals to see that
no documents are remained to be that for
and no manual, mistakes have occurred
during posting etc.

5. Up keeping of stores : Keeping the material
properly in its location numbering the same.
Labeling the material stacking the material
properly Ex. Oil drum in open shed. Heavy
materials on concerts platform. Panel in
open shed, Tower Materials in open yard.
Horizontal Etc. (xxx)
6. Fire Fighting : Equipments for fire fighting
are regularly checked and kept in readiness
for use whenever required.
7. Weighing Scales:- Weighing scales are yearly
got checked by concern Govt. Authority &
license to use is renewed on year to year
basis.
Accounting : All the SR Notes received from
the stores (Custody) are properly valued and
IBAs (Inter Branch Adjustment ) are sent to
respective Divisions / Circles /H.O.
All the material requisitions are
valued and IBAs for issue and credits are sent
to respective divisions.
Posting in stock ledger is done
from SRN and Material requisitions.
1. Transport Tender
2. Grass Cutting Tender
3. Cleaning of Store Yard / Office
4. Material/Unloading/ Loading Tender
5. Unloading Tender for Heavy material more than
20MT & above at site.
6. Tender for Security of store
7. Gen. street light maintenance tender
8. Follow up with supplier/HO/User
9. Annual maintenance contract for Weighing
Scales/ Fire Fighting Equipment

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CHIEF ENGINEER (ZONE)
EXECUTIVE ENGINEER (STORE)
TECHNICAL
1) ASSISTANT
ENGINEER
(STORE S CUSTODY)
ACCOUNT
H.R.
2) JUNIOR
ENGINEER
UDC (HR)
PEON
LDC (CASHIER) UDC (A/C) UDC (AUDIT)
DY. MANAGER (F&A)
3) HELPER
4) WATCHMAN
1 NAGPUR ZONE -- MAJOR STORE A, WARDHA
2 AMRAVATI ZONE -- MAJOR STORE A, BADNERA
3 AURANGABAD ZONE a) MSA AURANGABAD
b) MSA USMANABAD
4. PUNE ZONE -- MAJOR STORE A, BARAMATI
5 NASHIK ZONE -- MAJOR STORE A, DHULE
6 KARAD ZONE -- MAJOR STORE A, KARAD
7 VASHI ZONE -- MAJOR STORE A, PANVEL





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IN OUR COMPANY EACH ZONE HAS
ONE MAJOR STORE EXCEPT AURANGABAD
ZONE HAS TWO MAJOR STORES.
0
10
20
30
40
50
60
2008 year 2009 year 2010 year 2011 year 2012 year 15 `Sep-12
Inventory value in crore
Inventory value in crore
52.33
51.7
7
38.6
7
28.52
22.38
17.0
MAJOR STORE A WARDHA
Year wise Inventory position w.e.f 2008 To
15 September-2012
1468.07
285.53
92.29
56.25
335.93
Value of Non Moving/Slow Moving as on 31.03.2012 in Lacks..
Less Than 6 Month
More Than 6 Month
More Than 1 Yr. upto 2 yr.
More Than 2 Yr. upto 3 yr.
More Than 3 yr.
MAJOR STORE A WARDHA
1 year, 2 year, 3 year & 5 year Non & slow moving item as
on 31.03.2012 (Total inventory 2238.30 lacks.
189.59
293.82
76.48
110.62
998.72
57.66
103.39
407.99
Particulars Material
STEEL
TRANSFORMER
METERING EQUI.
CABLE & CONN.
OTHER
DDW
PLCC Marerial
Tower Meterial
MAJOR STORE A WARDHA
Statement showing group wise & grand total value of
the physical stock of store as on 31.03.2012
189.59
293.82
76.48
110.62
998.72
57.66
103.39
407.99
Particulars Material
STEEL
TRANSFORMER
METERING EQUI.
CABLE & CONN.
OTHER
DDW
PLCC Marerial
Tower Meterial
MAJOR STORE A WARDHA
Statement showing group wise & grand total value of
the physical stock of store as on 31.03.2012
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1) Stores plays a vital role in the operations of a
Company
2) Stores function is an inseparable part of all
business and non business concern. Whether
they are industrial or service oriental, public
or private, small or large.
3) The task of store keeping relates to safe
custody and stocking of materials, their receipts,
issue and acccounting with the objective of
efficiently and economically providing the Right
materials at the Right Time whenever required in
the Right condition to all user departments.