Documentos de Académico
Documentos de Profesional
Documentos de Cultura
PROJECT REPORT
ON
“ STUDY OF INVENTORY MANAGEMENT
IN IFFCO ”
DEPARTMENT OF MANAGEMENT
ACKNOWLEDGEMENT
AKASH AGARWAL
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
PREFACE
The successful completion of this project was a unique experience for
me because by visiting many place and interacting various person ,I
achieved a better knowledge about sales . The experience which I
gained by doing this project was essential at this turning point of my
career this project is being submitted which content detailed analysis
of the research under taken by me.
The research provides an opportunity to the student to devote his/her
skills knowledge and competencies required during the technical
session.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
CONTENT
Acknowledgment
History
Board of Directors
Rating
Introduction
Finance Department
Material Department
Purchase Section
Terminology used in Purchase Department
Store section
Receipt section
Custody section
Spare section
Inventory Control
Techniques
Inventory Software
Production Department
Inventory Management
Objective of the study
Concept of Inventory Management
Research and Methodology
Conclusion
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Faculty
Dept. of Management Studies
GEIT, Dehradun.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
History of IFFCO
IFFCO : Indian Farmers' Success Story
During mid- sixties the Co-operative sector in India was responsible for
distribution of 70 per cent of fertilisers consumed in the country. This Sector
had adequate infrastructure to distribute fertilisers but had no production
facilities of its own and hence dependent on public/private Sectors for
supplies. To overcome this lacuna and to bridge the demand supply gap in
the country, a new cooperative society was conceived to specifically cater to
the requirements of farmers. It was an unique venture in which the farmers
of the country through their own Co-operative Societies created this new
institution to safeguard their interests. The number of co-operative societies
associated with IFFCO have risen from 57 in 1967 to 38, 155 at present.
Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on
November 3, 1967 as a Multi-unit Co-operative Society. On the enactment
of the Multistate Cooperative Societies act 1984 & 2002, the Society is
deemed to be registered as a Multistate Cooperative Society. The Society is
primarily engaged in production and distribution of fertilisers. The byelaws
of the Society provide a broad frame work for the activities of IFFCO as a
Cooperative Society.
In 1993, IFFCO had drawn up a major expansion programme of all the four
plants under overall aegis of IFFCO VISION 2000 . The expansion projects
at Aonla, Kalol, Phulpur and Kandla have been completed on schedule.
Thus all the projects conceived as part of Vision 2000 have been realised
without time or cost overruns. All the production units of IFFCO have
established a reputation for excellence and quality. A new growth path has
been chalked out to realise newer dreams and greater heights through Vision
2010 which is presently under implementation. As part of the new vision,
IFFCO has acquired fertiliser unit at Paradeep in Orissa in September 2005.
As a result of these expansion projects and acuisition, IFFCO's annual
capacity has been increased to 3.69 million tonnes of Urea and NPK/DAP
equivalent to 1.71 million tonnes of P2O5.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
At IFFCO, the thirst for ever improving the services to farmers and member
co-operatives is insatiable, commitment to quality is insurmountable and
harnessing of mother earths' bounty to drive hunger away from India in an
ecologically sustainable manner is the prime mission. All that IFFCO
cherishes in exchange is an everlasting smile on the face of Indian Farmer
who form the moving spirit behind this mision.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Board of Directors
The Directors of IFFCO
Directors
Shri Amal Kumar Verma
Shri S.L. Dharmegowda
Shri Sudhir Rajpal
Shri Harminder Singh Jassi
Shri Kartic Chandra Sarkar
Shri Umesh Tripathi
Shri Ramakant Bhargava
Shri Subhash Chandra Garg
Shri Ankushrao R. Tope
Shri Prem Chandra Munshi
Shri Tryambakrao G. Sirsath
Shri Vithalbhai H. Radadia
Shri Pramod Kumar Singh
Shri Sheesh Pal Singh
Shri Balvinder Singh Nakai
Shri Ravindra Pratap Singh
Shri Simachal Padhy
Shri K. Srinivasa Gowda
Shri A. Praveen Reddy
Shri B. S. Vishwanathan
Shri Raj Kumar Tripathi
Dr U.S. Awasthi (Managing Director)
Shri. Rakesh Kapur (Jt. Managing Director)
Shri. K.L. Singh (Director (Technical)
Dr. G.N. Saxena (Director (Coop. Development)
Shri R.P.Singh (Acting Director (HRD)
Shri. Arabinda Roy (Acting Marketing Director)
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Rating
Ratings assigned by CRISIL:
(1) Rating for Governance and Value Creation (GVC) Practices of IFFCO:
(2) Rating for the Rs. 100 crore Commercial Paper Programme of IFFCO.
(3) Rating for the Rs. 400 crore Bonds Programme of IFFCO.
(4) Rating for the Rs. 100 crore Commercial Paper Programme of IFFCO.
Organisation Structure
FINANCIAL
BOOKS/ BILL PAYROLL PSL
CONCURRENCE
FICC Cell SECTION SECTION SECTION
SECTION/ BUDGET
Indigeneou Service
Imported Works
s Contract
Supply Contract
Supply
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Ch SENIOR
MANAGE(F & A) MANAGE(F & A)
MANAGE
MANAGER MANAGER MANAGER
R
(Account) (Account) (Account)
(Account)
ACCOUNT OFFICERS…….
SENIOR ACCOUNTANT
JUNIOR ACCOUNTANT
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
The various are covering under the preview of 3 subsections are as follows:
BOOKS SECTION
This section basically deals with accounting function, maintenance
and keeping of records.
The various functions include :
Books : Preparing and Maintaining balance sheets.
IFCC (Fertiliser Industries Coordination committee)
MATERIAL DEPARTMENT
Materials from the most critical inputs of any business firm organization
Proper handling and control of material inputs ensures the smooth running
of plant. Material management includes the procurement issuance and
control of materials in right quantity and at right time to facilities the
production function.
From this we can gather that material management includes two important
functions:
• Purchasing
• Storing and control of materials
• Purchase section
• Stores section
Through performing two extent these two section are interrelated and work
in coordination.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
PURCHASE SECTION
PURCHASE PROCESS
• Approval scrutiny
• Budget scrutiny
• Technical scrutiny
Enquiry is sent in order to know the prices and other terms and conditions of
vendors. Bidding can be done in three ways
v) Receiving of offers: After all the bids have been submitted the
tendors are open before tendor committee to compare the
quotations-
Quotations comparison statement (QCS) is made and bid with
lowest quotation is generally chosen. QCS is also send to the
technical deptt and in consultation with it one more than one offers
are chosen, giving quality and price the top priority.
vi) Purchase order : After selecting the best offer, purchase order is
sent to that vendor with all the terms and conditions specified and
details of the material to be purchased are also given. A bank
guarantee of performance is taken from the vendor in advance
which is usually 5% of the P.O.A. time limit is set for delivery of
consignment and in case of delay a panality is imposed @ 5% of
P.O. per week.
Advance payment shall be made to the suppliers only in such cases where it
is specifically provided in the contract order. The advance payment to
contractors shall be made against submission of bank guarantee in the
Performa provided by IFFCO. Advance payment against indemnity bond
shall not be released as provided in the purchase procedure.
In case the terms of payment provide for full paymeny or part payment
against dispatch documents through bank, the supplier will be negotiating
the documents through the bankers. After the documents are received by the
bankers, they are forwarding a bank intimation alongwith a copy of the
purchase order to ascertain that the invoice is raised for the material ordered
and conforms to the other terms and conditions of purchase order.
After the intimation from the bank is received the invoice of the suppliers
will be scrutinized by the finance and account department for the following-
Where there is delay in supplying the material and the payment through
bank is 90 % to 95 %. It should be ensured that penality for delay, as
provided in the purchase order, is recovered before releasing the balance
payment. Where payment required to be made , a clarification is to be
sought from materials deptt and proper approval taken for waiving of
penality or otherwise before retiring documents.
The payments under the contracts must be regulated as per the expressed
terms and conditions. Any payment not covered by the contractual terms and
conditions should not be released.
In case the purchase ored provides the 100 % payment after receiving of
materials and accepted payment is to be released after the MRR is receised
from the stores department. In case the purchase order despatch documents
and the balance payment after receipt of materials, the balance payment may
also to be released after the MRR is received and it is confirmed that the
material has been accepted after inspection and taken on charge.
Delay In Delivery
In case of project purchases, the time and date of the delivery is the contract.
In the event of delay in the execution of the order beyond the date of
delivery as stipulated in the order, the project authorities may take following
actions –
OR
2. Cancel the order in part or full and purchase such cancelled materials
from elsewhere on account and at the risk of the suppler without
prejudice to his right inspect of goods delivered.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
5R’s Right Price, Right Quantity, Right Quality, Right Place, Right Source.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Material Coding
In every organisation it is very difficult to maintain the stock items in case
of large number of items. So the need of coding is created. For the material
coding the account persons assign the codes for each item of stores. So in
this away every item has it’s code, and code is called material code.
Every item maintained by itt’s code in the stode as well as in the store
accounting section. The item / material codes remains same in stores aand
accounting section. Whenever a transaction is done in store for the
inventories the full details of that transaction is send to inventories the full
details of that transaction is send to the store accounting section also,
because the computers of stores and accounting section are connected in
Local Area Network.(LAN)
All goods shall be dispatched by rail / road freight paid and the railway
receipt / lorry receipt shall be posted to the concerned incharge of IFFCO.
Inspection of Material
If the material are received short or in damaged condition there are some
conditions in this regard.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
The consignment of phosporic acid and Ammonia are received at kandla and
the material actually received is valued at the contracted cost & freight
price.
Where free on board (FOB) price is agreed, the ocean freight element is
loaded separately. All connected expenditure like customs duty, handling
charges etc. are also included in uinventory valuation.
The account department also ensure that all claim suppliers for shortage are
booked on monthly basis and necessary on quarterly basis for the pending
claims.
Indigenous Ammonia
fertiliser. This price is fixed at par with the landed cost of imported
ammonia.
Potash
The finance department at head office ensure that payment for these raw
maaterials are released on due dates to avoid interest liability. After
releasing the paayments the inter unit debit advice is sent to plant. On
receipt of the payment advices the supplier’s account is adjusted in the plant.
Natural Gas
Kalol and Aonla plant consume as feed stock and fuel. As per the contract
with ONGC, gas is supplied to IFFCO at the price fixed by Govt. of India
from time to time.
The meters provided at the inlet point in the plants are the basis for monthly
billing. Meter reading is carried out jointly by ONGC / GAIL and IFFCO
representatives. The unit sends the telex to head office ffor making payment
to ONGC / GAIL after due certification of bill by the head of technical
department about quantity of gas received.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Naphtha
The Catalysts & Resins are produced by the material department at the
palnt, on the receipt of the material the inventory is valued at the agreed
price. For Catalysts & Resins where IFFCO has pooling arrangement with
other companies, the material received is taken to inventory at the actual
price paid and equivalent amount is credited to “ material received on loan
account”.
This entry will be reverse when the material is procured by IFFCO and
replenished for return of loan. The inventory and consumption account then
shall be accounted at the actual procurement price.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
STORE SECTION
Store of any organization is of vital importance. Its is the responsibility of
stores to receive the material required by the organization’s operations to
keep it properly & to issue it as when required. The stores are divided in to
three subsections for greater flexibility like receipt, custody, issues and
spares.
Main Store
Cement godown
Petrol Pump
Cable yard
Cemical godown
Paint godown
PDIL store
A. RECEIPT SECTION -
This section is responsible for receiving the materials and inspecting them.
The process involves following steps.
4) Consignment’s cases are intact. If not he will ask for open delivery.
He then has to deliver the goods to stores. In case of damage he has to give a
certificate. Some consignment may without document i.e. door delivery and
is some cases it may be face to face delivery.
6) The next operation is filling the stores receipt vouchers (SRV) here
the quantity mentioned in challan and purchase order are compared, SRV
Has 7 copies, two for accounts and one for each purchase, stores, indenter,
masterfile & custody section.
B) CUSTODY SECTION -
This section is responsible for proper keeping of materials and issuing them
when required by different department and contractors. The material
received here is first checked as per SRV for every material there is a card.
These cards are located in bins according to code of material is received in
custody the card information is updated.
When some one wants to issue certain material he has to fill the store issue
voucher ( SIV). Once the item is issued again information is updated in the
card. When a particular part is returned then this received in stores, by
internet stores return voucher (ISRV). After issuing the material the number
of issue and the quantity issued is noted in SIV control registers.
C) SPARES –
Around 30000 spares are housed in stores, spares have been classified plant
wise. The first digit of the code of item is numbered according to given
criterion-
Ammonia
Urea
Product handling
Power
Sp. Equipments
General items
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
The section dealing with accounting of stores in the finance department shall
have following functions :-
The 2nd copy of the material receiving reports after pricing, shall be
passed on to the stores accounts sections to scrutinized the same with
reference to store item code quantity of measure etc. and process it for
accounting of receipt of materials. After issue / return of materials, issue
section of stores department arranges data entry on the daily basis. Checklist
processed is sent to stores accounting section for scrutiny in respect of store
item code, cost / service code, expense code and unit measure etc.
The issue notes shall be priced on the weighted average rate basis
after accounting the last receipt of material. After ascertaining the nature of
expenditure, the job for which material is issued, an appropriate account
code shall be given in accordance with the chart of account.
In case of material like steel plates etc. where materials are received
on actual weight basis and the issues are accounted are on theoretical
weight basis as per sectional measurements, the quantity accounting
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
For all issue notes relating to works contracts, one copy of the price
issue notes may be sent to the work accounts section to enable them to debit
the contractor’s account.
value shall be debited to the relevant code of stores and spares parts
inventory accounts by credit to the cost center / job number where the
material is received back. The return note shall be priced on the basis
of the original issue requisition against which the material was drawn
if such reference is available, otherwise the same should valued at the
prevailing average monthly rate applicable to that material.
The price store ladger balance for each category store shall reconciled
value wise with the control account balance in the ledger wherever possible.
The accounts section shall draw out reconciliation on monthly basis. After
reconciliation a monthly material consumption statement, cost center wise,
is prepared and circulated to concerned department by the 10th of following
month for verification of its correctness and for monitoring the budgeted
expenditure, if any discrepancy is reported, the same is adjusted in the
ensuring month.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
According to the declaration policy, the insured amount foe each product
shall be stated separately. The liability of the insurers is limited to the
insured amount. At any time if it is found that the actual stock is more than
the insured amount to avoid less amount of insurance. In case of a
declaration policy, insurance premium is payable for minimum 35 % of the
insured value.
Verification of Inventories
The officer of stores will coordinate the job of physical verification and the
accounts officer in charge shall render all assistance to ensure that the
physical verification of inventories is carried out as per the policy and the
policy and the approved program. The store department will ensure that the
posting in the Kardex are updated before the verification of inventories.
The stocks of raw materials, packing materials and finished products are to
be verified on quarterly basis by an independent surveyer by the society. No
adjustments need be carried out in the books of accounts unless the
discrepancies in liquid raw materials and solid raw material are in excess of
1% to 5% respectively. This is as per guidelines issued by the head office.
In case of Finished goods also the same principle applied except that no
adjustments in the books of accounts shall be made . However the stock
registers shall be adjusted on the basis of actual stock in order to replace the
notional figures of stocks by more accurate estimate based on physical
verification.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
The inventories for other items such as stores, spares, construction materials
etc. are also verified every year keeping in view ABC analysis of stock
items value and exercise of verification may be completed by March every
year.
For the purpose of verification of stores, chemicals & spare parts shall be
classified in to A, B, C categories.
A team of stock verifiers shall prepare a stock verification sheet giving the
kardex balance and the physical balance of each item covered in the stock
verification. After filling up the particulars of the value and quality
discrepancies with reference to the priced stores ledger balance , the stock
verification sheets shall be forwarded to the materials department for
scrutiny and reconciliation and adjustment in consultation with finance
department accepted shortage shall be processed for the approval of the
competent authority.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Internal Check
One set of document for receipts, issues and return of materials shall
be sent to the accounting section of finance department. Based on
these documents, priced store ledger shall be prepared for each item
for stores. The material code number between stores and accounts
shall be identical. The priced store ledger shall provide value of each
receipt, Issue and return transaction along with quantity ledger. The
quantity balance appearing in priced store ledger shall serve as
counter check for accuracy of bin card balance in store which is
essential for proper functioning of inventory control system.
The priced store ledger shall not be maintained for large number of
low value items such as atationery, medicines, canteen stores etc. in
this case the expenditure shall be charged to the appropriate expense
account at time purchase . Quantitative record shall be kept by the
concerned department and shall be produced as and when required for
audit purpose.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Inventory Control
Inventory control is a systemetic control and regulation of purchase and
usage of materials in such a way so as to maintain an even flow of
production at the same time avoiding excessive investment in inventories.
Efficient material control reduces losses and wastage of materials that
otherwise pass unnoticed .
1) Min-Max plan
2) Order cycling system
3) Fixation of various levels
4) Use of control ratios
5) Review of slow and non-moving items
6) The ABC Analysis
Min-Max plan:
In this plan analyst lays down a maximum and minimum for each stock
item. Minimum level establishes the reorder point and order is placed for
quantity of material , which will bring it to the maximum level.
In this system , quantities in hand of each item or class of stock are reviewed
periodically (30,60.90 days ). In that , if it is observed that stock level of a
given item will not be sufficient till the next schedule review keeping in
view of its probable rate of depletion , an order is placed to replenish its
supply .
Inventory turnover ratio [in days] =Days during the period /Inventory
turnover ratio .
With the numerous parts and materials that enter into each and every
industrial production, inventory control leads itself, inventory and foremost,
to the problem of analysis. Such analytical approach is popularly known as
ABC (ALWAYS BETTER CONTROL) Analysis.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
For all inventories (finished goods, raw materials, packaging, spare parts,
utility items, and the like ), multiply the average annual usage of the item by
the cost per unit.That number will be TOTAL USAGE VALUE.
List all items in descending order of usage value. Then add all the values to
reach a total start at the top of list , then add each value until we reach 80 %
of total. Those are the items which comprise our “A” list.In general 15–20
% of the items fall into this category.
When using ABC Analysis, remember that it is intended as a tool for setting
inventory priorities and as a method for determining which areas will offer
the highest return on inventory controls.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Inventory Software
There is a very powerful software in IFFCO for inventories of the various
items. This software holds all the transactions of the stocks. So this software
helps much in maintenance of stocks. It makes very easy to account persons
to maintain the transactions of inventories.
Apart from this, this software have the variety of qualities which we can
discuss with the help of menus of software. There are six different menus in
this software these are as follows:
Data Entry
Queries
Reports
Processing
Calculator
Exit
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Data Entry
Physical
Entry of Surplus
SRV verification
SIV
ISRV
SAV
STV(in)
STV(out)
The very first menu that is dataentry is used for the various types of entries
of transactions. In the data entry menu there are several options shown in
above diagram.
Document Entry:
This option is used to enter the data in various type of
documents like SRV, SIV, ISRV, STV(in), STV(out) etc.
Adjustment Entry:
With the help of this option we may easily make the
adjustments in the stock issue voucher (SIV), due to any previous
adjustment.
Adjustment ISRV:
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
This option of data entry menu has the same working in
issue stock return voucher (ISRV).
Physical Verification:
In case of verification of stock the person responsible for
stock verification estimates a range of items for verification and after verify
the selected range of items, they punched the quantity verified or lock the
verified quantity till the next verification.
Entry of Surplus :
This option is used for adjust the surplus items which is
declared by the plant. The surplus items means, the items which are exceeds
from the records. So in case of this situation the accountants makes a entry
@ of 1 Rupee per unit of items.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Reports Menu
Reports
PSL JV :
After processing of PSL run all the documents
becomes updated and all the transactions also gets updated. So that by this
option we can see all the journal voucher of the entries of inventories.
Kardex:
The kardex is the very useful tool for showing the
current status of all the items. Kardex shows the update inventory and also
shows the past status of every past tears. The accountant may see the past
status as on any past date.
Inventory consumption:
This option of the report menu shows the data
regarding the consumption of materials according to the date. We can see
the consumption of a particular item. This report helps in forecasting of
material purchasing for the future consumption of the materials.
Queries Menu
Queries
This menu has single option that is brows inventory master. In this option
we may see the status of various materials or items.
As the name of this menu, we can perform the query task, on the basis of
material codes, that are of ten digits number. This option is very helpful in
search of any particular transaction in inventories. In a query task we are
supposed to enter the material code in the material code box and then click
over the retrieve button. As soon as we click over the retrieve button the
whole in formation regarding that code is appears on the screen.
Processing Menu
Processing
Processing is the most important task of this software, because all the
reports which are forwarded to the concerning authorities and are the basis
for the further actions are made only after the processing or the PSL run.
PSL processing makes update all the documents.
PSL Process I:
The option process I updates and calculates the values
for all documents and makes available to create the final reports. Once a
PSL run is processed the data can not be changed, So that this task is very
sensitive so the operating person should have the great care and
responsibility in processing task.
The calculator menu has no sub option we can use the calculator only by
clicking on the calculator menu. It helps much in manual calculations make
the surety of correctness.
Apart from this the exit menu is simply for quitting the software, whenever
we click over the exit menu we exits from the software.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Production Department
IFFCO Aonla is town to production of Urea. It is carried out with the help of
two ammonia plants. For every ammonia plant there are two urea plants each
of 1100 MTPD capacity. Urea Plant are linked with two product handling
plants. So, we can study the production department into three parts as
follows:
1. Ammonia Plant
2. Urea
3. Product handling Plant
Ammonia Plant:
Pure synthesis gas from methanator exit is compressed and sent to Ammonia
converter where ammonia is formed ammonia product obtain in sent to urea
plant for manufacturing urea.
Urea Plant:
Two streams of Urea plant each having capacity of 100 MTPD has been
provide. Urea process is based Snamprogetti Ammonia Self Stripping
process.
Ammonia and CO2 obtain from NH3 plant are sent to Urea Reactor
operating at 150 ATM pressure and 180o C temperature. In urea Reactor
Ammonia and CO2 react to form Ammonium Carbonate a part of which
dehydrates to urea. Reactor product from urea reactor flow to a steam heated
H.P stripper where most of them converted carbamate get stripped of as
gaseous ammonia and COS. Urea solution having the bottom of stripper still
contains some amount of carbamate. Further purification of urea to about 72
% concentration takes place in medium and low pressure decompressors.
Vapour of ammonia and CO2 obtained from the above purification section
are converted into ammonium carbamate and recycled back to Urea Reactor
for production of Urea Vaccum concentration are provided to concentrate 72
% Urea solution to 99.8 % in two stages operating at 0.3 atm and 0.03 atm
respectively. Urea melt ( 99.8 % concentration) from the concentration
section is pumped to the top of natural draft Prilling Tower and sprayed by
the means of rotating pril bucket. The fine droplets while descending through
the lower come into contact with cold air are solidify to form prills. Product
Urea from the bottom of prilling tower is sent to Urea Silo or Product
handling plant.
Bagging House mainly consist of 8 bagging stations. Each station has two
weighing and filling machines and one stiching machine. These weighing
and filling machines are fully automatic, sophisticated and computerized
based on latest technology from M/S Richard Simon and Sons U.K. There
are such 16 number of computapae Unit. Each is capable 10 weight to 50 kg
or more weightments at the rate of 600 bags per hour.
The system is equipped with Data logge facility which can display and
record various figures and fact from the plant. The field bags from these
automatic bagging machine are moved on slate conveyor and mouth is closed
by industrial stitching machine supplied by M/S Unimee, Calcutta. The
product in filled bags can be transported for various purposes such as :
stacking filled bags which can store equivalent to 2 rack loads i.e. 5,000 MT
and another two platform which are equipped with 6 Nos. of automatic
wagon loader ( 3 on each platform ), each has capacity of automatic laoding
of wagons at the rate of 1,200 bags per hr. These 3 covered platforms are
sufficiently long to accommodate a complete rack so as to load from filled
bags storage as well as directly from bagging stations. These automatic
wagon / lorry loading machines are supplied by M/S Mollers, West
Germany. Average time taken for each wagon loading is 20 to 25 min. An
average time in loading a lorry is 10 to 12 min only. Wagon on average will
carry 450 bags and 2 truck on an average will carry 200 bags approximately.
Empty Bags:
Empty bag’s size is 36.25 in inches or 915 X 610 in mm, weighing 10 gms
in case HDPE bags made out of 10 X 10 mash per inch using. Denier of tape
equal to 1,000 and width of tape 1.5 mm. The monthly requirement of bag is
around 10 Lakhs. There are 2 million bag storage capacity in 1400 m2 area.
The cost of bags varies from Rs 7.90 to 8.40 for HDPE and around 6.5 for
Jute bag. The consumption ratio of HDPE : Jute bag is 50:50. The bag will be
supplied various vendors based at Kanpur, Calcutta, Hydrabad, Ahmedabad,
Aurangabad etc. The movement of empty bags from these destinations to out
side is by road. Average daily traffic will be two to three trucks. IFFCO has
very strict quality control of bags. The bags once are ready for dispatch from
vendor’s workshop are got inspected by various up to date inspection
agencies sponsored by us. The consignment on its arrival at site is also
screened by our Laboratory before it is piled for storage. Storage is equipped
with EOT crimes two in number, each having lifting capacity of 1 tonne.
Railway Siding:
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
From main track of Chandausi- Barely broad quage, NR section tapping has
been taken at Basharat Ganj Railway, Take-up station. Two additional loop
lines and simultaneous reception facilities have been incorporated at Take-up
station. Railway track has been laid which is 09.38 km long through major
one villages acquiring 110 acre approx. of land.
2 lines each 340 mtr. Long accommodating one rake length for fuel
oil stock. These lines are laid over ballast less platform and have
concerts floor in order to recover spillage / leakage while handling
fuel oil stock.
2 line each 340 mtr. Long to accommodate off loading of completing
Naphtha rake, an alternative fuel for power plant.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
An Introduction
Inventories are the important part generally in most of the companies today.
In India inventories constitue the major portion (i.e. 60 %) of current assets.
Due to this much large portion of inventories in the firms, a good amount of
fund are associated with it. So, it is required to pay a considerable attention
towards the management of the inventories so that efficient and effective
control can be possible.
Production management
Marketing management
Financial management
BOOKS
IFFCO
IFFCO
MRR No B.Vr. No Name of P.O. No. Bill No Adv.To Ledger tools stores Steel
& Date & Date Party & & Date & Date vendors/ Folio
Place Suppliers No.
For
Goods
Supplies
Rs. P.
1 2 3 4 5 6 7 8 9 10
Cement Spares Claims Capital Others Amount Taxable Register Delears Purchase
Recover Items Amount Code Amount ed S.T. Form Form
able Amount Code Form Amt. S.C. within
Code Amt state
Unregiste
red
Dealers
SC Amt
Rs. P. Rs. P. Rs. P. Rs. P. Rs. P. Rs. P.
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
RESEARCH METHODOLOGY
Significance of Research
“All progress is born of inquiry. Doubt is often better than overconfidence. For it leads to
inquiry, and inquiry leads to invention” is a famous Hudson Maxim in context of with the
significance of research can will of research can will be understood. Increased amounts
of research make progress possible. Research includes scientific and inductive thinking
and promoted the development of logical habits of thinking and organization. The role of
research an several fields of applied economics, whether related to business or to the
economy as a whole, as greatly. Increased in modern times. The increasingly complex
nature of business and government has focused attention on the use of research and
solving operational problems. Research, as an aid to economic policy, has gained assed
importance, both for government and business.
Meaning Of Research:
Research in common parlence refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation.
Objective Of Research
the truth which is hidden and which has not been discovered as yet. Though each
research study has its own specific purpose, we may think of research objectives as
falling into a number of following broad groupings:
CONCLUSION
The methodology adopted by me during my summer training which was of four – five
weeks was based on the Principles and concept of Research Methodology.
Problem :
The problem which was discussed in this training was to check the effectiveness and
efficiency of the inventory management in IFFCO Aonla Unit and to analyse the
investment of funds in inventory and to suggest the measures for more effective control
and smooth supply without unnecessary investment of funds in inventory..
Research Design :
It is a blue print for the collection, measurement and analysis of data, my design focuses
attention on the following aspects:
What the study is about and why is it being made ?
Information Required:
Primary Data collection through the Depth Interview with the Managers, Account
Officer, and Survey of peoples in Purchase department and store section.
The execution is done in the following ways :-
Personal Interview
Secondary Data collection from the concern’s internal sources and the other sources like
Internet, IFFCO Magazines and the Account Manual and Annal Reports of the unit.
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Long as inventory level is going down. But the fact is that is if inventories
are minimised without guaranteeing adequate operations, inventories have
been mismanaged rather than controlled efficiently. Thus, the two basic
objectives of inventory control appear to be conflicting in nature.
Inventories should increase or decrease in amount or time as related to sales
requirements and production schedules.