Chapter 1

Introduction

Material management is a scientific technique, concerned with Planning,

Organizing &Control of flow of materials, from their initial purchase to
destination. Material management is vitally important to almost every type of
business, whether product or service oriented. Inventory control touches almost
every facets if operations. A proper balance must be struck to maintain proper
inventory with the minimum financial impact on the customer. Material
management is the activities that maintain stock keeping items at desired levels. In
manufacturing since the focus is on physical product, material management focus
on inventory control.

Inventory means physical stock of goods, which is kept in hands for smooth and
efficient running of future affairs of an organization at the minimum cost of funds
blocked in inventories. The fundamental reason for carrying inventory is that it is
physically impossible and economically impractical for each stock item to arrive
exactly where it is needed, exactly when it is needed.

Material management is the integrated functioning of an organization dealing with

supply of materials and allied activities inorder to achieve the maximum co-
ordination and optimum expenditure on materials. Inventory control is the most
important function of inventory management and it forms the nerve center in any
inventory management organization. An Material Management System is an
essential element in an organization. It is comprised of a series of processes, which
provide an assessment of the organizations inventory.

Aim of material management is to get :

1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost
Purpose of material management
Primary:
Right price
High turnover
Low procurement
& storage cost
Continuity of supply
Consistency in quality
Good supplier relations
Development of personnel
Good information system
Secondary:
Forecasting
Inter-departmental harmony
Product improvement
Standardization
Make or buy decision
New materials & products
Favorable reciprocal relationships

Four basic needs of Material management:

1. To have adequate materials on hand when needed
2. To pay the lowest possible prices, consistent with quality and value requirement
for purchases materials
3. To minimize the inventory investment
4. To operate efficiently
 COMPANY PROFILE

Bharat Electronics Limited, was established at Bangalore, India by the

Government of India under the Ministry of Defence in 1954 to meet the
specialized electronic needs of the Indian Defence services. Over the years, it has
grown into a Multi-Product, MultiTechnology, Multi-Unit Company
manufacturing from Small Components to present day System of Systems. 80% of
BELs turn over comes from Defence. In this regard it is pertinent to understand
the nuances of Defence requirement. The requirements of Defence Customers are
becoming increasingly influenced by latest armament technology, military
doctrines and sometimes by evolving technologies. There is an enormous cost
associated with development of such technologies, with costs also allocated to
skilled scientific manpower and subsequent production infrastructure. Acquisition
Time frames tend to be longer and qualification procedures are complex. Platforms
have given way to complex systems. Weaponry, electronic suite and command and
control systems need to be looked at in totality. Thus what may appear as a single
discrete item in the purchase request would be part of the entire system and its
criticality would depend upon where it fits into the whole. The components/sub
systems used in Equipments/Systems need to be qualified for use in Military
applications. Any new item, getting introduced in the Equipment/ System during
the production stage, warrants qualification trials. This is time consuming and
hence delivery of the final product may get affected. Technological obsolescence is
faster which results in a big challenge in supporting the customer for more than 20
years after the delivery of the equipment/system. The optimal use of complex
platforms would depend on the training which the user undergoes and this requires
years of diligent work. This combination of man and machine is what matters in
times of war. User preference therefore needs to be accorded a very high priority.
It can make the difference between winning or losing a battle. In case the
requirements of such material cannot be met indigenously then they need to be
imported and here pure commercial terms do not always matter as defence material
exports are subject to a whole host of control regimes and export clearances
imposed by the sovereign states from which the material is sourced. Such control
regimes exist not only for components/ equipment but also for the production
technology, resulting in suboptimal transfer of technology.
Bharat Electronics outsources Products & Services requirements on need basis
from different categories of business partners viz., PSUs, Private Firms, MSMEs,
Foreign companies and Government Organizations as well. The outsourcing is
governed by the following procedures:
Purchase Procedure
Sub-Contracts Procedure
Work Contracts Procedure

The establishment and location are as follows:

Serial Year Of Establishment Location

No.
1. 1954 Bangalore
2. 1972 Ghaziabad
3. 1979 Pune
4. 1979 Taloja(Maharashtra)
5. 1984 Hyderabad
6. 1984 Panchkula(Haryana)
7. 1985 Chennai
8. 1985 Machhilipathnam (A.P.)
9. 1986 Kotdwara(U.P.)
 VISION, MISSION, VALUES AND OBJECTIVES OF BEL

VISION

- To be a world-class enterprise in professional electronics.

MISSION

- To be a customer focussed, globally competitive company in defence

electronics and in other chosen areas of professional electronics, through
quality, technology and innovation.

VALUES
Zeal to excel and zest for change
Integrity and fairness in all matters
Respect for dignity and potential of individuals
Strict adherence to commitments
Ensure speed of response
Faster learning, creativity and teamwork
Loyalty and pride in the company

OBJECTIVES

To become a customer-driven company supplying quality products

at competitive prices at the expected time and providing excellent
customer support.
To achieve growth in the operations commensurate with the growth
of professional electronics industry in the country.
To generate internal resources for financing the investments required
for modernization, expansion and growth for ensuring a fair return to
theinvestor.
In order to meet the nation's strategic needs, to strive for self-
reliance byindigenization of materials and components.
 To retain the technological leadership of the company in Defence and
other chosen fields of electronics through in-house Research and development
as well as through Collaboration/Co-operation with Defence/National
Research Laboratories, International Companies, Universities and Academic Ins
titutions.
To progressively increase overseas sales of its products and services.
To create an organizational culture which encourages members of the
organization to realize their full potential through continuous learning on
the job and through other HRD initiatives.

QUALITY POLICY

In the quest to be world-class, BHEL pursues continual improvement in the quality

of i t s p r o d u c t s , se r v i c e a n d p e r f o r ma n c e l e a d i n g t o t o t a l c u s t o me r
s a t i s f a c t i o n a n d business growth through dedication, commitment and team
work of all employees.
 PRODUCT AND MARKET OF BEL

I. Indian market
Bharat Electronics Limited is a major supplier of products and turnkey systems
to the Indian Defence Forces.

Over the years, BEL has diversified into manufacturing many civilian products as
well. Large turnkey telecommunication solutions are also being offered to the
civilian market. A brief list of the Customers in the defence and civilian market
segments and the products and services offered to them is given below:

PRODUCTS AND SERVICES CUSTOMERS

Telecommunications, terminals and
networks
Broadcast systems and satcom products
Electric voting machine
Solar products and systems
Turnkey systems and e-government
networks
components
Dept of telecommunication, paramilitary
forces, railways, Defence, Research and
Development Organization (DRDO)
All India Radio (AIR), Doordarshan (DD),
Indian Space Research Organisation (ISRO)
Election Commission Of India
Police, private and government organizations
and Individuals
ISRO, Police, State Government, Public
Sector Undertakings
AIR & DD, the National Radio and TV
Broadcasters, Instrumentation Industry,
Switching Industry, Entertainment Industry,
Telephone Industry and individuals
II. EXPORTS AND OFFSETS

Exports play a key role in BEL's strategic perspective. The ranges of products and
services exported have been increasing over the years. A number of international
companies are using the facilities at BEL for contract manufacturing the broad list
of products and services being exported are given below:

PRODUCTS AND SERVICES CUSTOMERS

Defence Communication equipment and Botswana, Indonesia, Suriname, Malaysia,
spare parts France, Russia, Sri Lanka & Switzerland
Radars & Sub-systems Indonesia, Egypt, Switzerland, Mauritius,
Myanmar , Seychelles, Sri Lanka & USA
Electronic Warfare products and services Russia, Brazil, Malaysia, USA
Opto-electronics products Sri Lanka, Nepal, Israel, South Africa,
Turkey
Semiconductor devices, Microwave Tubes Malaysia, Singapore, Turkey, Netherlands,
and Transmitting Tubes UK, USA, France, Hong Kong, Mauritius,
UAE
Solar Products & Systems Suriname, Germany, Zimbabwe,
Botswana, Kenya, Nigeria
Vacuum Interrupters Malaysia, UAE, Uganda, Turkey, UK,
Azerbaijan
Contract Manufacturing & Outsourcing USA, Canada, Belgium, Italy, Germany,
Services France, UAE Germany, Israel, Slovak,
Sweden
Electronic Voting Systems Sri Lanka, Uganda, Malawi, South Africa,
Namibia & Nepal
Radio & TV Broadcasting products and Nepal, Mauritius, Zimbabwe
Systems
Telecom and SATCOM systems Nigeria, Kenya
MATERIAL MANAGEMENT IN BEL

Material management department in B EL is responsible for all

t h e material movements in inside and outside the company.

The department is divided as material planning and control,

p u r c h a s e a n d stores.

Material Planning & Control

The function of the material planning and control is rise a purchase indent
after receiving direction from the project management and commercials
department.

The purchase indent consists of the details of the materials to be purchased and
other details about the materials required.

Purchase Section

After the purchase indent is raised the purchase section starts its work.

The purchase section is divided as purchase of indigenous

p u r c h a s e a n d import purchase.

In the indigenous purchase section takes care the purchase within the
India and in the Import purchase take cares the purchases from the foreign
countries.

The main functions of the purchase section are to request for

q u o t a t i o n , arranging for tender, conforming the order, vendor management.

The purchase function display the request for quotation in the

website and timeline of two weeks is given to submit the quotation.

The late tenders after the tender closing date are not accepted.
 But the late tenders are accepted in some special cases like due to postal delay,
scarcity, unreasonable increase of high price, product of only one
product is offered by many vendors.
Generally in tender firs the technical bid is done and this activity involves
thes c r u t i n i z e o f t e c h n i c a l c h a r a c t e r i s t i c s o f t h e p r o d u c t s . V e
n d o r s a r e o n l y qualified for financial bid only if they qualify the technical
bid.
The technical bid is conducted by the panel of engineers where they check all
the technical details of the products.
The financial bid is carried out by online system and where the BHEL follows
reverse auction system in the financial bid.
In the reverse auction system is online biding type where auction is conducted
to reduce the price of the product.
In the reverse auction all the vendors take part in a time and all the quotation
of vendors are displayed in the screen and lowest bid is displayed. If
any of the v e n d o r s w h o a r e n o t t h e l o w e s t b i d d e r i s r e a d y t o
g i v e c h e a p e r p r i c e t h a n lowest bid then he can enter his bid into the
system.
If no more entry is received in the screen for 10 minutes then the lowest price at
the time is consider as lowest bid and order is confirmed for that price.
After the confirmation of lowest bid purchase order is issue and the due date for
delivery of goods is specified and agreement is formed.
Then the purchase department arranges for the quality inspection in the
vendor satisfy the quality norms.
If the quality norms are not satisfied the products are returned for
rework to satisfy the quality norms at no extra cost.
Once the products pass the quality its taken to the stores.

MATERIAL MANAGEMENT IN ORGANISATION

The overall objectives of an organization tend to be achieved most efficiently

when the organization is structured by grouping similar activities together.

The process begins by dividing the total operation into its basic functional
components. Each component, in turn, is divided into a number of sub-functions.

The process is continued until each individual job encompasses a reasonable

number of related tasks. The basic aim is to have a system that is functionalized ,
has proper control over the activities and is well co-ordinate.
 Materials Management provides an integrated systems approach to the co-
ordination of the materials activities and the control of total material costs.
Obviously, the MM organization is derived from its fundamental objectives.
Since Materials management function ranges from receiving the material
requisition to placement of purchase orders and then on the other hand to
receiving the material and making it available to the users , a commonly seen
organization of materials management is divided into an integrated sections as :
Purchasing
Stores
Inspection
Traffic

Once the whole Materials Management function has been divided into its different
sub-functions as above, the sub-functions too are divided into their functions which
are usually seen to be as:
Administrative: Purchasing administration involves all the tasks associated
with the management process, with emphasis on the development of
policies, procedures, controls and the mechanics for coordinating
purchasing operations with those of other departments.
Buying: It addresses to a wide gamut of activities such as reviewing
requisitions, analyzing specifications, investigating vendors, interviewing
sales people studying costs and prices and negotiating.
Expediting: This is basically the order follow up activity involving various
types of vendor relationship work Reviewing Order status, providing
clarifications on transportation, writing and emailing vendors etc.
Special projects (Non routine) : In order to facilitate smooth purchasing in
a highly competitive business environment , purchasing authorities have to
keep building the capacity to do better by taking up as special projects
activities such as vendor development, vendor registration, value analysis,
market studies, system studies etc
Routine : Purchasing process or procedure involving routine or every day
activities such as dealing specific purchase file , placing orders,
maintaining records of commodities, vendors etc.
MATERIAL PLANNING

In any integrated Materials Management environment, planning for getting the

materials is the starting point for the whole MM function. Materials planning set
the procurement function and the subsequent material functions rolling.
Material planning is a scientific way of determining the requirements starting with
raw materials, consumables, spare parts and all other materials that are required to
meet the given production plan for a certain period.
Material planning is derived from the overall organizational planning and hence it
is always a sub-plan of the broad organizational plan.
Factors affecting Material planning:

1) Macro factors: Global factors such as price trends, business cycles,

government's import and export policies etc are called the Macro factors.
Credit policy of the government is a critical factor as banks follow these guidelines
only while extending financial support to a business entity.

2) Micro factors: These are essentially the factors existing within the organization
such as corporate policy on Inventory holding, production plan, investments etc.
For any organization, factors such as Lead time of procurement, acceptable
inventory levels, working capital, seasonality, delegation of power are micro
factors.

Techniques of planning materials:

There are a few techniques used for planning material for the given period. The
following two are, however, commonly used:

1) Materials Requirement Planning (MRP)

2) Requirement based on past consumption
MRP has, as its starting point, the annual production plan of the manufacturing
concern. Once a firm determines its annual production plan, the overall material
requirement, to meet the given production plan, is worked out. It is a detailed
analysis encompassing the materials and quantities available for use, materials with
quantities not available and hence needing procurement, the actual lead time of
procurement etc.
STORES MANGEMENT

The very essence of Materials Management gathers its relevance from Stores; a
place that keeps the materials in a way that the materials are well accounted for and
is maintained safe.

A typical Store has a process and a space within, to receive the incoming materials
(Receiving Bay), keep them for as long as they are required for use (Custody) and
then to move them out of stores for use (Issue). In a manufacturing firm this
process forms a cycle to maintain and run the activities of Stores. The basic
responsibilities of stores are to act as custodian and controlling agent for parts,
supplies, and materials, and to provide service to users of those goods. Well-
designed systems provide flexibility to absorb the shock demand variation,
And enable purchasing to plan ahead, practice forward buying, and so forth.

Thus, the terms Stores, Storehouse, or warehouse all of them refer to a building or
room or plce where materials are kept.

An organization usually has different types of stores like which it refers by

different names on the basis of material nature such as:

Raw Materials Store

Processed or Semi-Finishing Materials Store
Finished Goods Store
Yard Store

Such stores range from ordinary ones with shelves and bins to cold or
dehumidified storages, huge silos for storage of food grains or bonded stores for
keeping goods on which customs and excise duties have not been paid. Storage is
an essential and most vital part of the economic cycle and Storage Management is
a specialized function, which can contribute significantly to the overall efficiency
 SAP MATERIAL MANAGEMENT

SAP stands for Systems, Applications and Products in data processing. Amongst
the software provider, SAP comes up as the worlds third largest. 5 IBM
employees founded SAP in 1972 in Walldorf, Germany.

SAP is an enterprise resource planning software which is produced by the German

corporation.SAP is a enterprise information software that was basically designed to
manage resources, information and activities that are required to complete business
processes like procurement and managing orders, billing of orders and
management of human resources.SAP applications work with real time data. It has
the ability to be configured according to the needs of the business. It allows
business to make rapid changes in their business requirements through a common
set of programs.

ROLE OF SAP MM

SAP MM role in business process is as follows:

A business process in SAP is termed as Module.

SAP Materials Management (MM) is a part of Logistics area and helps to

manage the procurement activity of an organization from procurement.

It supports all aspects of material management (planning, control etc).

It is the backbone of the Logistics area which incorporates modules like Sales
and Distribution, Production Planning, Plant Maintenance, Project Systems,
Warehouse Management which are extremely obsessed on Materials
Management module.
FEATURES OF SAP MM

The features of SAP MM system are as follows:

SAP MM is one of the modules of SAP that deals with material management
and inventory management.
Material Management process ensures that there is never a shortage of
materials or any gaps in the supply chain process of the organization.
SAP MM speeds up the procurement and material management activities
making the business run smoother with complete time and cost efficiency.
It deals with managing the materials (products and or services) resources of an
organization with the aim of accelerating productivity, reducing costs and
increase improvement and at a similar time be versatile to accommodate
changes in day to day life.
It deals with the Procurement Process, Master Data (Material & Vendor
Master), Account Determination & Valuation of Material, Inventory
Management, Invoice Verification, Material Requirement Planning etc.

SAP MM INVENTORY MANAGEMENT

Procurement process starts with gathering requirements and ends with procuring
goods from vendors. Once goods are procured from vendor they need to be placed
in companys premises in correct place so that they can be consumed when
required. This introduces the term known as inventory management. Inventory
management deals with placing and handling stock received from vendors in
correct place within companys premises. The key points about inventory
management are as follows:

Inventory management deals with management of stock either on value or

quantity basis.
 Planning, entry and keeping records of all goods movement comes under
inventory management.

Goods movement will create a document that will update all stock quantity and
value in inventory that is known as material document.

Material document will be referred by a document number and document year.

Inventory management deal with the following terms which are as follows:

Movement Type

Goods Receipt

Reservation

Goods Issue
I. Movement Type
Movement type describes the type of stock posting in inventory. It represents the
posting in stock is due to which type of order like whether stock is posted against
goods receipt or goods issue. The important movement types in sap mm are as
follows:

101 - Goods receipt for purchase order or order

103 - Goods receipt for purchase order into GR blocked stock

201 - Goods issue for a cost centre

261 - Goods issue for an order

301 - Transfer posting plant to plant in one step

305 - Transfer posting plant to plant in two steps - placement in storage

311 - Transfer posting storage location to storage location in one step

313 - Stock transfer storage locations to storage location in two steps -

removal from storage.

Movement types can be reached out by following the below steps:

Path to reach Movement Type:

Logistics => Materials Management => Inventory Management => Goods
Movement => Goods Movement (MIGO)
TCode: MIGO

On SAP Menu screen select Goods Movement (MIGO) execute icon by following
the above path.
Select GR Goods Receipt drop-down. You will get a lot of standard movement
types and you can choose one according to your requirement.
II. Goods Receipt
Goods receipt is the phase in which the material is received by the ordering party
and the condition and quality are verified. Depending upon the movement type
stock is posted in inventory with the help of goods receipt. Goods receipt will
show increase in warehouse stock. Goods receipt has two scenarios which are as
follows.

Creation of Goods Receipt

Cancellation of Goods Receipt

Goods receipt can be posted by following the below steps.

Path to post Goods Receipt:

Logistics => Materials Management => Inventory Management => Goods
Movement => Goods Movement (MIGO)
TCode: MIGO

On SAP Menu screen select Goods Movement (MIGO) execute icon by following
the above path.
Goods receipt can be posted against various documents. Select the required
document from the drop-down. For example in this case we are selecting purchase
order. Select the movement type according to the requirement.

It will fetch all the details from the selected reference document like
material, quantity, plant. Select check tab to check the document.
Then click on save. A material document number will be generated.
Goods receipt is now posted against a purchase document.
Cancellation of Goods Receipt
Sometimes goods receipt is not posted correctly. So goods receipt needs to be
cancelled and it can be cancelled by following the below steps.

Path to cancel Goods Receipt:

Logistics => Materials Management => Inventory Management => Goods
Movement => Goods Movement (MIGO)
TCode: MIGO

On the same MIGO screen select from drop-down Cancellation against a material
document number. Provide the material document number.
It will fetch all the details from the material document. Select check tab to check
the document. Then click on save. A material document number will be generated.
Goods receipt is now cancelled.
III. Reservation
Sometimes, stock need to be blocked in advance so that it can be available at a
particular point of time. This is known as reservation. Reservation ensures that
stock is available and it can be used when required. Reserved quantity can be
viewed by TCode MMBE. Provide the material number and plant. Reserved
quantity can be seen in the reserved tab as shown below.

Reservation can be created by following the below steps.

Path to create Reservation:

Logistics => Materials Management => Inventory Management =>
Reservation => Create
TCode: MB21
On SAP Menu screen select Create execute icon by following the above path.

Enter the date, movement type and plant for which reservation is to be made.
Enter the order number against which you want to make reservation. Provide the
details of material and quantity that is to be reserved. Click on save. Reservation is
now made for the order.
IV. Goods Issue
Goods issue means moving stock out of inventory that may be due to several
reasons like withdrawing of material for sampling or returning the goods back to
vendor. So, goods issue will result in decrease in quantity in warehouse. Goods
issue can be done by following the below steps.

Path to post Goods Issue:

Logistics => Materials Management => Inventory Management => Goods
Movement => Goods Movement (MIGO)
TCode: MIGO

On SAP Menu screen select Goods Movement (MIGO) execute icon by following
the above path.
Select goods issue from drop-down. Goods issue can be posted against various
documents. Select the required document from the drop-down. For example in this
case we are selecting purchase order. Select the movement type according to the
requirement.
It will fetch all the details from the selected reference document like material,
quantity, plant. Select check tab to check the document. Then click on save. A
material document number will be generated. Goods Issue is now posted against a
purchase document.
 SWOT ANALYSIS
It focuses on the companys financial as well as overall performance and future.

STRENGTHS
Established Defence Electronics player in India
Good image and reputation
Committed work force with good infrastructure and manufacturing facilities
Well established systems and procedures including ERP
Decades of experience resulting in excellent domain knowledge and core
competencies in Defence electronics
Wide product range with strong product support network
Strong relationship with Armed Services, Defence Labs and Government
agencies
Loyal Customer base
Active learning from domestic and foreign collaborators
Financially sound and continuously profit making

WEAKNESSES
Gaps in some of the new technology areas
Conservative approach in Business Development & Marketing
Dependence on Defence market

OPPORTUNITIES
Growing Defence and Security needs
Governments emphasis on Make in India for manufacture of defence
equipments
Growing Defence budget allocation towards modernisation and upgrade
programs
Growing opportunities in Maintenance, Repair, Overhaul and Upgrade
programs
Increased impetus on modernisation of central paramilitary forces
Growing market for Solar based power plants and allied non-defence areas such
as Homeland Security, Smart City elements, etc.
 THREATS
Increasing competition from Indian Private industry and foreign OEMs
including their JVs in Defence sector
Rapid changes in technology
Difficulty in sourcing few critical technologies
Policy interventions favouring Private sector
 CHAPTER 2
RESEARCH AND DESIGN

OBJECTIVES OF RESEARCH

The main objectives of study:

To learn how the company manage various levels of inventory.

To analyze changes in the stock.
To study the various inventory ratio.
To analyze the inventory management techniques used in the company.
To study the Inventory Control Techniques of the company.

RESEARCH METHODOLOGY

The purpose of methodology is to describe the process involved in research

work. This includes the overall research design, data collection method, the field
survey and the analysis of data.

RESEARCH DESIGN
Research design is a basic plan, which guides the data collection and analysis
phases of the project. It is a framework which specifies the type of information to
be collected, the resources of data collection procedure. It specifies the methods
and procedures for collection, measurement and analysis of data.

D. Slessinger and M. Stephenson defines research as, the manipulation of things,

concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the
practice of an art.
TYPES OF RESEARCH

1. Exploratory research: exploratory research studies are also termed as formulate

research studies. The main purpose of such studies in that of formulating a
problem for more precise investigation or of developing the working hypothesis
forms an operational point of view.
2. Descriptive research: descriptive research studies are also termed as diagnostic
research studies. These determine the frequency with something occurs or its
association with something else.

In the project, information pertaining to Material Management and their

demographic profile was collected; hence it is a descriptive research.

DATA COLLECTION

One of the important tools for conducting research is the availability of necessary
and useful data. For the purpose of analyzing data, it is necessary to collect the
vital information.

Both primary and secondary data has been used for drafting the report of this
project.

1. Primary data: In this study, the primary data is collected through well-formed
questionnaire. The questionnaire consists of quantitative and qualitative
multiple choice questions and the respondents are asked to choose the one
choice which suits them the best amongst the multiple choices.
2. Secondary data: Secondary data is the data which is already has been collected
and assembled. Secondary data is collected from the sources of internet and
newspaper.
SAMPLING DESIGN

Sampling may be defined as the selection of some part of an aggregate or totality,

on the basis of which judgment about the aggregate or totality is made. In the other
words, it is the process of obtaining information about an entire population by only
examining a part of it. Convenience sampling technique is used in the study.
According to convenience sampling method, it is assumed that entire population is
homogeneous and the samples are selected in such a way that each and every unit
in the population has equal chance of occurrence or equal probability of
occurrence. In other words, the sampling units are selected conveniently. A
convenience sampling is obtained by selecting convenient population units.

SAMPLING INSTRUMENT

Interaction with respondents was in the form of interview held with the help of
questionnaire. The questionnaire consisted of a set of questions, asked to the
respondent or his/her response; the questionnaire was structured and non-
disguised. It was done in a prearranged order and the object of the research was
revealed to the respondent.
LIMITATIONS OF STUDY

1. Some people were not ready to fill the questionnaire.

2. Many of the surveyed people did not reply all the questions.
3. The time period given for the study was very limited.
4. The sample size was very small which may not represent the entire
population.
5. Companys employees dont provide enough data for study.

ANNEXURES

Q1) Demographic Information

Name-

City/Town-

Phone No.-

Email Address-

Q2) Are you using file life cycle SAP for MM Module?

(a) Yes
(b) No

Q3) From how many years you are using SAP?

a) 1-2 years
b) 3-4 years
c) 5-6 years
d) More than 10 years

Q4) Are SAP servers immune to virus?

a) Yes
b) No
Q5) What are the major problems that you can identify in the system overall?

a) delivery times
b) quantities
c) Quality
d) relations with suppliers

Q6) How do you typically place an order?

a) Visit store
b) Phone
c) Email
d) Fax

Q7) Problems associated with the ordering process?

a) Lost of order o Fax not received

b) Too many papers to fill out
c) Not a good definition of what is wanted
d) Poor communication with supplier
e) Vague stated requirements
f) Materials not available

Q8) What are the procedures used to evaluate potential suppliers?

a) Price offered by supplier

b) Experience of supplier
c) Reputation
d) Previously worked with the supplier

Q9) What are the typical problems associated with the qualification process?

a) Time taken for the qualification process

b) Too many suppliers to qualify

Q10) Typical problems associated with received materials from suppliers?

a) Lack of conformance to requirements
b) Quality problems
c) Damaged materials
d) Non-conformance with requirements
e) Late deliveries
f) Incorrect type of materials delivered
g) Incorrect sizes delivered
h) Incorrect quantities delivered