Escolar Documentos
Profissional Documentos
Cultura Documentos
SUMMER PROJECT
Prepared by
Nikunj B Gevariya
Submitted to
July, 2010
Page 1
DECLARATION
Place: Veraval
Date:
Nikunj B Gevariya
(MBA SEM-2)
Page 2
COLLEGE CERTIFICATE
Page 3
COMPANY CERTIFICATE
Page 4
PREFACE
The golden opportunity for any management student is to know about the
actual managerial work of any industry. Practice makes man perfect. In this
perspective it is the necessity of practical training for every MBA student to
support and to expand the deep sense of practical Management work.
The aim and purpose behind this industrial training is to lead the students to
get more efficiently skills and the knowledge of real managerial work/practices
which may help them to become a successful manager.
Management field is like a coin. It has two sides one is theoretical and another
is practical management approach. Both are very necessary aspects to learn
for management students. As a part of practical approach, industrial training is
very important for the management students.
In Gujarat Technological University, for all the MBA students the industrial
training of 45 days and project report work are compulsory to undergo as a
part of study during the summer vacation after completion of 2 nd semester.
As a summer trainee I have visited Indian Rayon (A unit of Aditya Birla Nuvo
Ltd.) Veraval, Gujarat. It was great opportunity for me to explore such a big
and vibrant company. And I tried my level best to make this training most
successful.
Page 5
ACKNOWLEDGEMENT
Everybody Lives And Act Partly According to his own, partly according
to
Endurance, Hard work And Gradual Progress. Thats how I reached this level
and now as I stand at threshold of outside world.
I am thankful to Indian Rayon (A Unit of Aditya Birla Nuvo Ltd.), Veraval for
giving me opportunity to complete my summer training in the unit.
I am heartily thankful to Ms. Shraddha Mehta (HR dept.) for co-operating
and allowing me to visit the plant and specific departments. I would like to
thank Mr. J. V. Dave (Librarian) for his co-operation.
Thanks to Mr. V.G.Patoliya for arranging my summer training in Indian
Rayon.
My heartiest gratitude goes to Mr. Anil Dixit and Mr.B.D. Rachch (Stores)
Thanks are also due to Mr. Kamal Sharma (GM), Mr. Stayendra Puri,
Goswami, Mr.Naresh Shah from Materials Deptt.
I would also like to thank Mr. D.P.Modani from SCM Dept.
Deeply express my gratitude to all the professors of my college and
Special Thanks To Dr. T.D Tivari (Director,SPCAM) and Ms.Sheetal Malik
(Faculty,Marketing) who guided me and even helped me in completing my
project.
And at last bow to all those who are directly or indirectly associated with the
successful completion of my summer training.
Last, but not least, I thank my family, my parents for educating me, for
unconditional support and encouragement.
Page 6
EXECUTIVE SUMMARY
Four elements form a significant part of the costs pulp which is exported
from Sweden and is the major raw material, power, CS2 and labor.
Power accounts for 16% of the cost, CS2 accounts for 30%, Labor 11-12%
and rest is accounted by pulp. Indian rayon is working on bringing efficiencies
in procuring raw materials.
Page 7
Content
Sr.no
Topic
Page no.
09
Company profile
16
Production department
22
31
Marketing department
33
Finance department
38
40
SWOT analysis
76
79
10
Research methodology
80
11
81
12
82
13
Recommendations
83
14
Conclusion
84
15
Abbreviations
85
16
Bibliography
86
Page 8
INDUSTRY OVERVIEW
The Aditya Birla Group is Indias first truly Multinational Corporation. Global in
vision, Rooted in Indian values, the Group driven by a performance ethic
pegged on value creation for it multiple stakeholders. The Aditya Birla Group
is Indias second largest business house Of India. A US $ 7.5 billion
conglomerate, with a market capitalization of US $ 8.5 billion, it is anchored by
an extraordinary force of 72,000 employees belonging to over 20 different
nationalities. Over 30% of its revenue low from its operations across the
world. The Groups products and services over distinctive customer solutions.
Its 72 state of art manufacturing units and sect oral services span India.
Page 9
In India:
A Premier Branded garments player
The Second largest player in Viscose filament yarn
The Second largest in the Chlor-alkali sector
Among the Top Five Mobile Telephony companies
A leading player in Life insurance and Asset management
Among the Top Three supermarket chains in the Retail business
Page 10
MAJOR COMPETITORS:
1. RELIANCE INDUSTRY
2. TATA GROUP
3. HINDUJA GROUP
4. GODREJ GROUP
SECTORWISE COMPETITORS
Textiles
Copper
Cement
Telecommunication
Aluminium
Reliance
Vedant group
Ambuja
Bharti airtel
Reymond
Essar
Unitech
Reliance
Mayur
Sail
Vodafone
Tata
BSNL
Page 11
CORPORATE STRATEGIESDIVERSIFICATION
Page 12
Page 13
Page 14
Vision:
To be a premium global
conglomerate with a clear
focus on each business.
Mission:
To deliver superior value to our
customers, shareholders,
Employees and society at large.
Values:
1. Integrity: Honesty in Every Action
2. Commitment: Deliver on the Promise
3. Passion: Energised Action
4. Seamlessness: Boundary Less in Letter and Spirit
5. Speed: One Step Ahead Always
Page 15
Company Profile
Junagadh-Veraval Highway,
Veraval-362266
Dist- Junagadh (Gujarat)
Corporate Office:
Industry Office,
1St Floor, 159 Church Gate,
Mumbai-400020
Brand Name:
Establishment Year:
1963
Board of Directors:
Page 16
Company Secretory :
Branch Auditors:
Auditors:
Solicitors:
Page 17
Advisors:
Bankers:
Competitors :
Century Rayon
Baroda Rayon
South Indian Rayon
Grasim Keshavram Rayon
Page 18
5 S Concepts
SEIRI -
SEITON-
Use.
SEISO-
Company Policy:
We are committed to be the preferred choice of customers while taking care
of the interests of all stakes holders by.
Meeting customers expectations for quality and services in premium
segment.
Adopting
eco-efficient
technology
to
maintain
pollution
free
environment.
Preventing occupational health and safety hazard by adopting safe
work practices.
Respecting
employees
right
and
providing
healthy
working
Page 19
Indian Rayon, the VFY unit of Aditya Birla Nuvo, is a major player in the
Indian viscose filament yarn business. The unit enjoys a 30 per cent domestic
market share, making it the second largest producer of viscose filament yarn
in India.
Branded 'Ray One', the viscose filament yarn is available in more than 400
shades. The yarn comes in a wide array of colours, including natural whites. It
ranges from the purest tints, through medium tones to vibrant deep shades in
fine to coarse deniers ranging from 75 to 1200.
With a capacity of 16,400 tonnes per annum (tpa), Indian Rayon is the first in
the country to adopt the most advanced VFY technology with 88 pot spinning
machines (PSY) and 17 continuous spinning machines on parallel yarn. It also
accounts for 50 per cent of VFY exports from India. Located at Veraval in
Gujarat, the VFY plant is the first in Aditya Birla Nuvo to be accredited with the
ISO 9001 and the ISO 14001 certification. It also has the OHSAS 18001 and
OEKO Tex certification.
Supply Chain Management in Indian Rayon
Page 20
Shree Morarji Vaidya one of the leading industrialist of Gujarat with a view to
manufacture viscose filament yarn (VFY) in collaboration with von-kohorn
international of USA started this organization.
Once a sick company and virtually on the verge of closure was taken over by
Shree Aditya Vikram Birla in 1966. Who believed consolidation, expansion
and diversification, because of his believed and sincerity toward work the
company has not only turned around but has also made up strong market
position today, by 1975 the Jayshree Textiles has merged with IndianRayon.
The Indian Rayon is public Ltd. Company.
Page 21
ORGANIZATION STRUCTURE
Executive
President
Production
Department
Engineering
Department
Commercial
Department
Administrat
ion
Department
Personal &
HRD
Department
Viscose
Maintenance
Finance
Raw
Material
Time Office
Spin bath
Electrical
Share
Legal
Welfare
Spinning
Instrumentati
on
Stores and
Purchases
Octroi
Labor Office
Internal
Audit
Sales
Personnel
After
Treatment
Textile
HRD
Chemical
Estate
Research &
Development
Security
Quality
Control
Page 22
INTRODUCTION OF PRODUCTION
DEPARTMENT
Page 23
Input:
Output:
Material
Products
Labour
Services
Production process
Capital
Information
Energy
Products of
Information
Services
Resources
Product Capacity
Business-wise capacity
As on
31 March 2008
31 March 2009
Manufacturing capacity
Viscose filament yarn
MTPA
16,400
16,400
Caustic soda
MTPA
82,125
91,250
Insulators
MTPA
38,800
38,800
Carbon black
MTPA
2,30,000
2,30,000
Flax yarn
Spindles
15,340
15,084
Worsted yarn
Spindles
25,548
25,548
Wool combing
Cards
Linen fabric
Looms
107
106
Urea
MTPA
8,64,600
8,64,600
Page 24
PRODUCTION PROCESS
VISCOSE SECTION
The process is carried out in the following stages:
Conversion of woo cellulose into alkali cellulose i.e. mixing of wood
pulp with NaOH
Conversion of alkali cellulose into sodium cellulose xanthate.
Conversion of sodium xanthate into viscose solution.
The process is carried out in the following steps.
Steeping:
This is a process for mixing of pulp in Caustic Solution. Two distinct features
of this process are:
Swelling of pulp fibers due to absorption of caustic for complete
formation of Alkali Cellulose.
The cellulose sheets are saturated with a solution of caustic soda or Sodium
Hydroxide and allowed to steep for enough time for the caustic solution to
penetrate the cellulose and convert some of it into Soda Cellulose the
Sodium Salt of Cellulose. This is necessary to facilitate controlled oxidation of
the cellulose chains and ensuing reaction to form cellulose Xanthenes.
Page 25
Shredding:
It increases the surface area of Alkali Cellulose and ensures the rapid &
uniform aging & Xanthation. It contains three rollers rotating at different
speed. Each roller is attached with lingering wire which cuts the mat into small
pieces. Form Shredder Alkali Cellulose is carried to maturing drum.
Maturing (Aging):
The main function of maturing drum is to decrease the degree of
polymerization of Alkali Cellulose by the effect of temperature and time to
facilitate Xanthation. Alkali Cellulose takes about 7-8 hour to pass form inlet to
outlet of the maturing drum.
Xanthation:
This is a main reaction, which is carried out during Viscose preparation. There
are 5 Xanthomates equipped with agitator and are jacketed, through which
cold water is circulated to control the production temperature. Xanthation is
carried out under vacuum. Xanthation period is 60 min. Rate of Xanthation
depends upon the water temperature circulating through jacket. From
Xanthation batch is dumped into dissolver.
Dissolving:
In this stage the viscose is uniformed by eight dissolver vessels, which are
equipped with agitator, which makes viscose uniformed. The dissolving time is
3 hours. The dissolver viscose, which is transferred to ripening room.
Page 26
Filtering:The viscose is filtered to remove undisclosed materials that might disrupt the
spinning process or cause defects in the rayon filament.
Sodium sulphate is a min by product, which is, requires 22 tons per day. This
by product Na2SO4 should be removed from spin bath solution and spin bath
solution transferred to spinning section by total six drums out of which two of
them are in old spin bath dept. while other four are in new spin bath dept.
Page 27
SPINNING SECTION
In this section viscose solution from viscose section is directly supplied
through dye units to spinning machine for bright and colored yarn. The
merging pump drives fixed amount viscose in one minute depending upon the
capacity of the pump. Viscose temperature is about 28 degree centigrade.
Spin bath solution is also following with high speed from the spin bath section
at 56 degree centigrade to spinning section. Viscose coming from heat cons
in the contact with spin bath coagulation is viscose which taken place to from
yarn of particular denier.
Denier is a weight of 9000 meters of dry yarn grams. Its denier and filaments
e.g. 225/40 that means 225 denier with 40 filaments specify yarn. Jet is made
of anti corrosive material consisting of 70% Au. (Gold) 29% Pt (Platinum) and
0.5% Rh. The yarn coming out is passed through a cup tube length 550 mm
of 450 depending upon denier.
1. Wrapping section
A collection jacket is wrapped on cakes by wrapping machine for following
purpose.
To avoid disturbance in yarn during washing
To identity the denier filament of cakes
To avoid any external setting dust and other impurities.
Page 28
2. Washing section
After loading the carries is put for washing the carries is moved on dual a rail
which is hanged on roof.
3. Drying section
To maintain the temperature inside the dryers hate exchanger are used for
this atmosphere air is sucked in through the tubes to meet the air. Then with
the help of blowing fans air is circulated in the dryer.
TEXTILE SECTION
The dry cakes are now dry for wining. The yarn is in the form of censor, and
hank time duration of coming depends upon the denier of yarn. The textile
department places where the manufacturing process of Rayon Yarn comes to
an end. Although it comes under production processes but its function is
auxiliary and very important in nature.
Mainly three section in this department
C.C.R (Cake Conditioning Room)
Coining
Reeling
Page 29
PACKING SECTION
After winning the cones a hank, they are sent to the packing section where
they are visually check by the inspectors an grades are given as per their
quality.
At present cones are packed in cardboard boxes. Then the cartoons, which
are filled by inspection side, helpers, are first bought to the weighing balance
where the weight is balance as per pre-determine standard. After that a
computer packing slip is made having various necessary details. On is paste
on cartoon, second is kept inside the cartoon and third is kept for record
purpose. After that the cartoons are stepped with Polly propylene type. Finally
B.O.P.P. adhesive tape is applied at the joint of top flaps of cartoons. These
fully packed and sealed cartoons are sent to bonded stores room for sales
department to be dispatch.
Name of parts
Date of packing
Quality grade and weight.
Registered trade mark of the company
The color of cones and hanks
Deniers
Page 30
Personnel department:
It mainly deals in the process of recruitment of manpower and act as a
consulting agent between the officers and the workers.
HR &Training:
It deals with the staff members of an organization and is accountable to the
vice president
Page 31
MANPOWER PLANNING
The process of determining manpower requirements and the means for
meting those requirements in order to carry out the integrate plan of the
organization.
Company uses PURTA which is known as the system of control though
budgets and standards in modern cost accounting and management costing.
PURTA summaries the objective of the whole organization. All the dept. that
is need of additional requirement of manpower has to contact the personnel
dept. which makes the arrangement of the require manpower. Every month
the personnel dept. issues personnel requisition from the dept. and this
forecasts its manpower demand of each dept. accordingly the requirements
are made.
In Company the workers and divided into three categories Permanent, Badli
and Temporary.
Categories
Permanent
Badli
Staff
Management Employees
Total manpower
No of person
2059
508
355
234
4205
Page 32
Marketing deals with identifying and meeting human and social needs. One of
the shortest definition or marketing is meeting needs profitable
A market may be considered as a convenient meeting place buyers and
sellers gather together for exchange of goods and services.
Marketing is a process by which individuals and group obtain what they need
and want by creating and exchanging products and value with others.
The company has a very efficient and excellent marketing department, which
tries to provide maximum satisfaction to the customer while having
reasonable. Profits on the other hand.
Page 33
OBJECTIVES OF MARKETING
The following are objectives of Rayon Industries Ltd.
To find new and new customers to sell them more & more of
companies product.
Try to make better and quality product.
To provide a successful distribution of customer products.
To study the market problem according to the circumstances and
suggest the solutions.
To sell their products in new areas to make new customers and
satisfied old ones.
To encourage the customers and know the fault in their products and
then try to make quality or faultless products.
Page 34
PRODUCT MIX
Product mix, which is called as product assortment, is the set of all product &
items that a particular seller offers for sale. A Companys product mix has
certain width, length, depth & consistency.
Companys product is VFY but along with it the Co. also manufactures some
chemicals and by-products, which are require for the production of Yarn and
the excess of this product is sold out in the market. Not only that, Company is
manufacturing the Yarn, which is of different colors and different qualitydenier wise as per the requirement of the client.
Company main product VFY has certain length in terms of:
Color yarn
Dull yarn
Spunned yarn
And it has depth in terms of:
Quality
Denier
Company width includes various other chemicals and by product:
Caustic soda
Sulphuric acid
NA2SO4
Page 35
Companies that, fails to develop new products are putting themselves at great
risk. Company can a new products though acquisition and development.
Indian Rayon has made efforts in technology absorption and in specific areas
that brings:
Development in its rayon division, i.e.
BRAND
The American marketing association defines brand is:
A name, term, sigh, symbol or design or a combination of them,
intends to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors. Thus brand
identifies the sellers of makers.
With six of the foremost name in the apparels business into its fold, Indian
Rayon is today the largest branded apparel Company in the country. The
portfolio includes leading brand names like Louis Philippe, San Frisco, Van
Heusen, Allen Solely, Peter England, and Byford together making Indian
Rayon the Undisputed Market Leader for branded mens wear.
Page 36
MARKETING RESEARCH
To manage a business well is to manage its future; and to manage the
future is to manage information.
Companies in its initial stages were using the service of professional persons
and sponsor trade delegation for the purpose of market research. But
thereafter from 1988, they installed their own quality control department of
market research. The company is also sending its higher-level executives to
the foreign countries for the purpose of survey and market research.
Page 37
Financial planning:
Management needs to ensure that enough funding is available at the right
time to meet the needs of the business. In the short term, funding may be
needed to invest in equipment and stock, pay employee.
In the medium and long term, Funding may be requiring for significant
additions to the productive capacity of the business or to make acquisition.
Financial control:
Financial control is a critically important activity to help the business ensure
that the business is meeting its objectives.
Page 38
Financial decision-making:
A key financing decision is whether profits earned by the business should be
retained rather than distributed to shareholders via dividends. If dividends are
too high, the business may be starved of funding to funding to reinvest in
growing revenues and profits further.
CAPITAL STRUCTURE:
Capital structure may be defined as the combination of debt and equity that
leads to maximum value of firm.
Capital structure refers to the mix of long-term sources of funds and such as
debenture, long-term debt, preference share capital and equity share capital
including reserves and surplus. The company should plan an optimum capital
structure.
Particular
2008-09
2007-08
Share capital
Reserves & surplus
Preference share Capital
Secured Loans
Unsecured Loans
95.00
5396.50
25.5
5033.10
3860.90
95.00
3510.50
50.00
4463.5
2184.40
Share capital of Indian Rayon remains same but the secured loans granted by
Indian Rayon have increased compared to previous year and its reserve &
surplus also increased.
Page 39
Supply
Chain
Strategy
Supply
Chain
Planning
Logistic
Supply
Chain Mgt.
Supply
chain
Enterprice
Application
Product
Lifecycle
Mgt.
Procurement
Asset Mgt.
Page 40
These functions are increasingly being outsourced to other entities that can
perform the activities better or more cost effectively. The effect is to increase
the number of organizations involved in satisfying customer demand, while
reducing management control of daily logistics operations. Less control and
more supply chain partners led to the creation of supply chain management
concepts. The purpose of supply chain management is to improve trust and
collaboration among supply chain partners, thus improving inventory visibility
and improving inventory velocity.
Scope of Supply chain activities can be grouped into strategic, tactical, and
operational levels of activities.
TACTICAL:
Sourcing contracts and other purchasing decisions.
Production
decisions,
including
contracting,
locations,
Page 41
OPERATIONAL:
Daily production and distribution planning, including all nodes
in the supply chain.
Production scheduling for each manufacturing facility in the
supply chain (minute by minute).
Demand planning and forecasting, coordinating the demand
forecast of all customers and sharing the forecast with all
suppliers.
Sourcing planning, including current inventory and forecast
demand, in collaboration with all suppliers.
Inbound operations, including transportation from suppliers
and receiving inventory.
Production
operations,
including
the
consumption
of
including
facilities,
Page 42
Page 43
A. Demand
Planning
and
Forecasting
Accurate
demand
involves
warehousing,
delivering,
invoicing
and
payment collection.
E. Return - Return and refund are important parts and also the
problem parts of supply chain management. Supply chain
management systems should have infrastructure in place for
receiving defective and excess products back from customer
Page 44
Advantages of SCM
Reduce overhead charges
Eliminates paperwork
Increase the speed of transactions
Facilitate Real-time data exchange
Increase revenue
Makes distribution more customer friendly
Receive regular forecasts for execution of production and sales plans
Analyze different supply line models and subsequently optimize them
Automate warehouse inventory management
Connect elements of market analysis and friendly interface relations
with suppliers
Economies of scale and scope
Concentration to core competence
Lead time reduction
Flexibility to customers
Disadvantages:
Supply chain management is tailored to specific industry and particular
company.
Systems are often tightly integrated a limited few suppliers and trading
partners.
The purposes of SCM are more of collaboration than price negotiation.
The cost of implementation is higher.
Many mistakes are done at first.
Has an internal resistance to change.
Its hard to gain trust from your suppliers and partners.
Page 45
Supplier Rationalization
Particular
Total Vendors
De-activated as on 25.03.09
Active as on 25.03.09
No of Vendors
3559
1414
2145
For critical items like Pulp, Furnace oil, Sulphur, Coal, Zinc, Charcoal
etc. are procured from dedicated developed sources.
Pulp is imported form Ekman Ltd ( Domsjo, Sewden)
Furnace oil from IOCL, Asoj for our DG operations.
Coal imported from Indonesian origin for high VM.
Zinc is arranged from Hindustan Zinc, Udaipur
Salt is procured from selected vendors
Charcoal is arranged from south origin in India.
LDO (Light diesel oil) - IOC (Indian oil corp.)
Page 46
INVENTORY MANAGEMENT:
Inventory is being maintained in following categories.
1. Min-max items which is maintained by Stores as per Re order Level.
2. Department Indented Items- PR raised by user dept as per budget
norms.
3. Insurance Items - PR raised by user dept as per budget norms.
Fast consumable items are maintained in stores as min-max items in
order to meet our plant requirement for all the time and every time. In
this category we are keeping a stock of total 1921 items.
We have adopted a system for VMI (vendor managed inventory).
inventory turnover ratio etc. and necessary corrective actions are taken
on time.
Page 47
Page 48
S.NO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
COUNTRY
Morocco
Brazil
Libya
Italy
Spain
Canada
Tunisia
Egypt
U.K
Iran
Thailand
Germany
U.A.E
Indonesia
QUANTITY
37806.05
25200
24859
24531
23930.56
12896.72
12666.08
12602.78
11000
5938
3291
2617.40
553.32
256
198144
%
19.08
12.72
12.55
12.38
12.08
6.51
6.39
6.36
5.55
3.00
1.66
1.32
0.28
0.13
100%
PORT
Pipavav
Mundra (Gujrat)
Pipavav
Pipavav
Pipavav
Mundra
Pipavav
NhavaSeva (JNPT)
Mundra
Mundra
Pipavav
Pipavav
NhavaSeva (JNPT)
Mundra
Page 49
Customers:
Page 50
IN INDIA:
MARKET PROFILE:
Page 51
Page 52
MATERIALS:
Raw Materials
Pulp
Lignite
Furnace Oil
Coal
Sculpture
Salt
Zinc
Charcoal
Auxiliaries
Spare Parts
Process items
Process chemicals
Dyes
Daily use items
Packing Cartels
Machinery
spare parts
General items
Soap
Bucket
Oil
Civil items
Electrical
items
Page 53
VALUE ENHANCEMENT:
Page 54
Activity
Saving In Pulp
Transportation
From Pipavav
port In Place of
Qty in MT
18000
Mumbai to
Vaerval
Rate/MT In
Rs.
Pipavav to
Veraval
Rate/MT in
Rs.
Saving Per
Year
1200
235
173.70
(Rs. In Lacs)
Sweden
Nhavaseva Port
Veraval
Sweden
Pipavav Port
Veraval
LEAN ORIENTATION:
Salt Trucks were getting unloaded manually before 01-05-07. Truck
Tripler system has been commissioned and under operation from
01-05-2007.
Salt trucks are getting unloaded through tippler system and detention
time has been reduced. Turnaround of trucks is improved.
Quick delivery of pulp to viscose dept is adopted by hydraulic crane.
E.g. Pulp was supplied to Viscose dept. by manual system. Now it has
been delivered by hydraulic Crane resulting reduction in manpower
from 23 to 3 with speedy and safe delivery to users. Also delivery time
has reduced from 8 hours to 2 hours
Supply Chain Management in Indian Rayon
Page 55
Inventory turnover ratio for finished goods and stores items has also
been increased compare to last three years.
Coal unloading time has been reduced drastically from 9.26 to 6.25 hr.
Average cycle time for VFY is enumerated for last 9 years in and found
reduction from 6.96 to 6.63 days Production should be done in
minimum days.
7.2
7.1
Targe
t
7.12
6.96
6.9
6.9
6.9
6.87
6.79
6.8
6.8
6.76
6.7
6.69
6.6
6.6
6.6
6.63
6.6
6.6
6.6
6.5
6.4
6.3
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Kaizen Scheme:
Kai in Japanese means Change and Zen means good. The literary
meaning of Kaizen is change for good.
Kaizen is the Japanese philosophy of continuous improvement by all the
employees in an organization so that they perform their tasks a little better
each day. It is a never ending journey centred on the concept of starting new
each day with the principle that the methods can always be improved.
Page 56
Page 57
Rejection:
Special measures are also taken by Indian rayon to reduce the rejection
percentage by the customers. Special steps are taken to improve the quality
of the rayon, because if the quality is good their material is less rejected and
they get full payment, since the customer pay less in case the thread is not
good..
Moreover there is no recycling of the rayon, therefore rejected material either
gets wasted or purchased by the customer at very less rate.
Thus, rejection should be very less; otherwise it leads to extra cost.
Delivery Management:
Focus on supply chain management to ensure on time receipt of inputs
and on time delivery of output to customers.
Operational bottlenecks are identified and removed in delivery process
of inputs like OTIF delivery, purchase order time, overall lead time of
critical spares and consumables, custom clearance etc.
Lead-time for critical stores & spares items are identified, measured
and appropriate steps are taken to reduce the overall lead-time
Door delivery of materials to user dept. by Stores (namely Zinc, Soda
Ash, Coning Oil, AT chemicals etc.).
Reduction in incoming inspection by way of self certification by
Vendors (Viz. Resins, IBR pipes & fittings, chopped mat etc.).
Lead time is reduced from 30 days to 17 days for dyes and from 30
days to 21 days for packing items.
Indian rayon ensures timely delivery of finished product to our
customers in order to meet out delivery schedule. We have kept a
penalty clause in transportation contract for delay in delivery.
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The
spun
yarn
is
collected
in
Pots
in
the
form
of
Cakes.
The Cakes are removed from Pots at specified times and sent for washing,
bleaching and various chemical treatments in After Treatment. Afterwards, the
cakes are dried in Tunnel Dryers, conditioned in Cake Conditioning Room,
wound as Cones in Textile before inspection and packing in Packing
Department.
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PROCUREMENT PROCESS:
PR Raised By User
Stock Availability Checking By
stores
Stock Availability
Cancelation of
Requirement
Enquiry Floated
Receipt of Quotation
Order placing
Technical Approval
Rate Negotiation
Order placing
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Procurement of Material:
After receipt of controlled indents (purchase Requisition) from the
Stores Department the concerned
For Indent other than those mentioned in above the concerned person
shall float verbal/written enquiries with regular suppliers. The vendor
register shall be referred to, for obtaining the list of suppliers. The
enquiry letters shall be prepared for written enquiries and sent to the
dispatch section Drawing shall be attached wherever necessary.
After obtaining quotations from suppliers the concerned person shall
prepare the comparative chart. The comparative chart along with
quotations shall be sent to indenting department wherever necessary,
for the departments scrutiny and revision in estimate value if there is
wide variation between the estimated value given by the department
and the suppliers quoted value. The department shall give approval of
quotations after analyzing the quotations
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DP+SH (Com)
Up to Rs. 50000
SH(Com)+DH(Com)
DH(Com)+FH(F&C)
FH(F&C)+UH
Page 62
The daily receipt of the materials (GRN) is available on line system. The
Stores department shall send short receipt memo (STCH) / transit loss
memo (STTL) to the Purchase Department. Rejection memo / report
shall be sent on Rejection of material. The concerned person shall
dispatch rejected goods to local and outstation suppliers after
completing the necessary formalities viz. Excise Invoice etc. and shall
get replacements by follow up through correspondence.
The Purchase Department shall receive a suppliers performance report
for critical items of General and Spares sections from the Computer
Department which gives item-wise details of P.O.No., P.O.Date, P.O.
due date, GRN No., GRN Date, P.O. quantity, rejection quantity and
percentage, delay days and balance quantity. This statement is
obtained once in a year.
A. Accounts Department shall send all the Bank intimation (IBC i.e. Inward
Bills collection) recorded by them in the register called as Bank
documents register to Purchase Department. The concerned person
shall verify the Purchase Order rates and terms/conditions. A note shall
be made on Purchase Order of the following: Document Sr. No./IBC
No./Invoice No./ Invoice date and Invoice Amount
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Any change in the order for major factors like change in specification,
quantity, price/discount, delivery period, penalty clause and also
change in vendors name, cancellation of the order partially or in Toto
shall be effected by issuance of the Amendment duly authorized by the
competent Authority.
If the Standard Format does not suffice the purpose to get all the
required details of changes then separate amendment letter shall be
issued. The copies of such amendment letter shall be distributed one
each to Party, Stores, Accounts, Bill Section, and concerned Indenting
Department. One copy shall be retained with Purchase Department.
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2. The Mumbai office shall receive the Bill of Lading / Airway Bill along
with other shipping documents from the supplier towards shipment of
the consignment.
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7. The concerned person shall scrutinize the Indent for estimated value on
the basis of last order, placed if any in the recent past.
10. The comparative price statement along with quotations shall be sent to
the indenting department wherever necessary for Technical scrutiny
and final recommendation and revision in estimated value, if required.
11. The concerned person shall prepare the order and the same shall be
signed by Authorized signatory.
12. The concern person shall note down the order details in the import
register before dispatch of order to supplier.
Page 66
2. The Purchase attendant shall confirm with the transporter about the arrival
of goods & if the goods are arrived, he shall check whether the goods are
physically in order.
3. The Purchase Attendant shall make carting arrangements for collecting the
goods from the transporters godown to our factory.
4. If the goods are physically found in order then Purchase Attendant shall
prepare transport Clearance slip to collect the consignment. The Purchase
Attendant shall make the entry of Transport Clearing Slip No. & Date in GC
Note Register on arrival of goods.
statement
Page 67
7. The Purchase Attendant shall forward the Statement for freight charges to
Stores dept.
to Bill
8. The Purchase Attendant shall make payment against Cash Memo to the
transporter towards freight charges in exceptional cases.
9. Cash / Debit memo towards freight payment, lorry receipt & carting
voucher shall be sent to Stores/Receipt Section through statements.
Page 68
5. For outstation suppliers book the consignment with the transport company
after necessary legal compliance and
Mail lorry receipt with covering letter to the party by registered post / Courier
service through the dispatch Section.
6. For local suppliers make carting arrangement and dispatch rejected goods
to parties.
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RE-EVALUATION OF VENDORS:
8. To generate performance statement on yearly basis.
9. To inform the parties their ratings on the basis of performance
statement.
10. If vendors performance found "poor" in past three years delete
vendor. Name from vendor
file, while
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Page 71
Transportation Channel:
Transportation:
The co. uses roadways and railways for transportation. The products are
distributed through trucks. The unit utilizes contract carriers. They give
contract to transport carriers. Transportation is done by truck up to Mumbai.
Indian rayon pays Rs. 3.24/ton for a km.
Packaging:
Indian rayon has realizes the power of good packaging to create instant
consumer recognition of the company or the brand.
All the cones rapped in transport polythene sheets.
Each carton contains 24 cones.
For packing special labels are available in Indian rayon in two categories:1. Gummed labels
2. Un gummed labels
The ungummed labels are easily available from veraval and Rajkot but
for gummed labels they have to purchase from Bombay on special
orders.
Page 72
The boxes used for packing are known as corrugate boxes. They differ in size
depending upon the orders. They get these boxes from Rajkot and
Ahmedabad. The different types of boxes available in Indian rayon are: 5 Ply: 24 cones 50 kg
7 Ply: 24 cones 50 kg
5 Ply: 48 cones 50 kg
7 Ply: 48 cones 50 kg
5 Ply: 12 cones 36 kg
5 Ply: 27 cones 47 kg
5 Ply: 8 bobbin 45 kg
The gum that is used to paste the box from one side is also a special gum
which is of sodium silicate and is a very strong gum.
Around 1000 boxes are prepared for final use.
As far as paper cones are concerned on which rayon is rolled, Indian rayon
purchase that from Pushparaj co., Bombay.
Page 73
Process Steps:
Page 74
Activity Flowchart:
Page 75
SWOT ANALYSIS
STRENGTH:
Yarn produce here is of high quality then also management always
trys to Increase the quality of yarn in order to fulfil their potential
customer and new Ones. Total produced items wasted are being sold;
this shows the efficiency of sales activity.
Better pacing, carriage and transportation system with all modern
equipment and good after sales service.
Regular meeting and seminars are conducted in the entire department
in order to find our loopholes and solve the same.
Division also have continuous spinning yarn department in which the
modem technology is used for the spinning the yarn and its adopted
from Germany.
Page 76
Divisions have domestic as well as export market and for this they are
doing the Internet marketing in order to find new markets.
Division has WCM (World Class Manufacturing) cell in which they look
out for better way of manufacturing.
ISO 9002 for the better quality of the production carries division.
Division is certified by ISO 14001 for the good environment
management System, for their division has hoity-culture department in
order to look to the Surrounding environment.
Honoured by Safety Award.
WEAKNESS:
Cost of production is more due to existence of very old technology
installed in this division.
many process steps and process is more sensitive to normal process
variations
Division is unable to pay more attention toward proper human resource
Management.
Location away from consuming centres.
Bigger process cycle/ higher process stock.
Page 77
OPPORTUNITY:
Division should find new market area for its products specially
chemicals
More research activity should be done, as there is chance of finding
new markets.
VFY use for certain textile items is specific and indispensable.
Quality has more weight age in international market. Indian Rayon Pot
Spinning Yarn is next to Asahi Japan and better than Chinese and
Russian Yarn used in international market.
Biggest opportunity, when opening up of global market when MFA
expires in 2005. Quota restriction will go which will boost the export of
Yarn directly and though Textile in Worlds two biggest market Europe
and US.
THREATS:
Government
policies
are
the
main
hurdles
of
the
divisions
performance.
Emergence of cotton threads made the market share of Rayon Yarn
low.
Fashion changes are also basic threats for such division.
The Viscose Process is highly polluting. The basic raw material (pulp)
is again pollution prone.
Page 78
Page 79
Research Methodology
Secondary Data:
1. I collected the theoretical data from the reference books related to my
topic of Supply Chain Management.
2. I had collected some of the data from the journals, Magazines related
to the Viscose filament Yarn industries.
3. Some of Data collected from the company records and company
related websites like www.indianrayon.com, www.adityabirla.com,
www.rayoninternet.com etc.
Page 80
After completing this Project, we are more confident about Practical aspects
of business Management. So, objective to study this summer project is a
practical training program which gives actual practical exposure to
organizational working setup.
Supply Chain Management in Indian Rayon
Page 81
Page 82
Page 83
CONCLUSION
Indian Rayon, a unit of Aditya Birla Nuvo Ltd., is a heavy industry having
sound facility of manpower, finance and machinery.
At last, I would like to give my best wishes to the organization for the splendid
success and glorious achievement in the future.
Page 84
ABBREVIATIONS
SH-Sectional Head
DH-Departmental Head
PO-Purchase Order
FH-Functional Head
Admn-Administration
UH-Unit Head
GC-Goods Consignment
DEPT-Department
LR-Lorry Receipt
Page 85
BIBLIOGRAPHY
Books:
Websites:
www.indianrayon.com
www.adityabirlanuvo.com
www.rayonintranet.com
www.adityabirla.com
Page 86