LIST OF CONTENTS

CHAPTER TABLE OF CONTENTS PAGE

NO NO
List of tables i
List of chart ii
Abstract iii
Chapter-1 INTRODUCTION
1.1 Introduction 1
1.2 Industry profile
1.3 Company profile
1.4 Objective of the study

1.5 Need for the study

1.6 Scope of the study
Chapter-2 MAIN THEME OF THE STUDY
2.1 Review of literature
2.2 Research Methodology
2.3 Limitations of the study

Chapter-3 ANALYSIS AND INTERPRETATION

Analysis and interpretation
Chapter-4 FINDINGS, SUGGESTIONS & CONCLUSION
4.1 Findings of the study
4.2 Suggestions
4.3 Conclusions
BIBILIOGRAPHY
ANNEXURE

LIST OF TABLES

1
TABLE NO TITLE OF TABLE PAGE NO
3.1.1

LIST OF CHARTS

2
CHART NO TITLE OF CHARTS PAGE NO
3.1.1

3
4
 CHAPTER –I
INTRODUCTION OF THE STUDY

Chapter - I
1.1 INTRODUCTION

Inventories constitute the most significant part of current asset of a large majority
of companies. On an average invigorates are approximately 60% of current assets. More
over the cost of inventory is nearly two third of total cost of production. Because of large
number of inventories maintained by the firms. A considerable amount of funds is
required to be committed to them. It is therefore absolutely imperative to manage
inventories efficiently and effectively in ordered to avoid unnecessary investment.
The organization faces a situation of excess in level of inventor resulting in
increasing inventory cost. An undertaking neglecting the management of inventories will
be jeopardizing its long term profitability.

5
 The excess level if inventories consume funds of the firm which cannot be used
for another purpose and thus it involves opportunity cost. The carrying cost such as cost
of storage, handling, insurance, recording and inspection also increase in proportion to
the volume of inventory. These costs will unfair the firms profitability further excessive
inventories called over long period decrease chives of liquidity. There may not be
possible to sell inventories in time and at full value.
Raw materials are difficult to sell as the holding period increases; there are
exceptional circumstances where it may pay to the company to hold stock of raw
materials, this possible under conditions of inflation and scarcity work in progress far
mote difficult to sell. Similarly difficulties may be faced to dispose of inventories while
in storage due to time of mishandling.
The objectives of the organization are to minimize the cost of inventory.
Therefore the size at a point of time and the various factors contributing towards it are
assuming lots of importance. It is in this contest “inventory control technique control
reference to ICF” is undertaken as it is a known fact that inventory management is “the
least gold mine” for managers.

1.4 OBJECTIVE OF THE STUDY

 To classify the material based on ABC analysis.

 To minimize the investment in inventory.

 To check the classification of items are proper in the company.

 To check the stock movement.

 To review the existing practices that is followed by ICF in the area of

inventory.
6
  To find out the non-moving items in the stores.

 To study inventory control technique practiced in ICF.

1.5 NEED FOR THE STUDY

 Inventories are assets of the company and require investment; therefore the
company should have a control towards investment in inventories.

7
  The inventories need not be viewed as idle assets rather these are an internal part
of firm’s operations.
 But the question usually arises as how much inventories the company should
maintain? If the inventories list is too big, they become a strain on the resources
however, if they said list is too small, the production or the distribution schedule of
the company is affected. Therefore the company must have an optimum level of
inventories.
 The basic financial problem is to determine the proper level of investment in the
inventories and to decide how much inventory must be acquired during each
period to maintain that level. The inventory may include raw material, work in
progress and finished goods.

1.6 SCOPE OF THE STUDY

 The study deals with the analysis and control of the inventory.
8
 The study is made to analysis the financial implication on inventory rejected
items, non moving items and excess inventory constituted idle inventory stock
recumbent memo items.

9
 CHAPTER – II

MAIN THEME OF THE STUDY

2. MAIN THEME OF THE STUDY

2.1 REVIEW OF LITERATURE

Inventories are goods held for eventual sale by a firm. Inventories are thus one of
the major elements, which help the firm in obtaining the desired level of the sales.

10
Inventories refer to stocks raw materials, components, spares or work in progress
maintained in an organization to have continuous production and sales.
Inventory management is one of the components of working capital management.
It involves the process of providing continuous flow of raw materials to production
department. More than 60% of the working capital will normally be invested in the
inventory. There can be disadvantage in holding either too much or too little inventory.
Therefore inventory management is primarily concerned with obtaining a correct balance
between two extremes.
Decisions relating to inventories are taken primarily by executives in production,
purchase and marketing departments. Usually raw materials polices are shaped by
purchasing and marketing executives. Yet as inventory management has important
financial implication the financial manager has the responsibility to ensure that
inventories are properly monitored and controlled.

2.1.2 TYPES OF INVENTORIES:

The three main types of inventories are,
 Raw materials

 Work in progress

 Finished goods

RAW MATERIALS:
Raw materials are an unprocessed natural substance or product used in
manufacturing process and that are converted by a manufacturer into a finished product.
There are the goods which have not yet been committed to production in manufacturing
firm. They consist of raw materials or finished components. They are the resources
purchased as inputs to the transformation process that have not yet been transformed.
Materials suitable for manufacturing or use or finishing are raw materials.
WORK-IN-PROGRESS:
Work in progress also called stock in progress refers to goods in the intermediate
stages of production. This includes those materials which have not yet been complete. It

11
refers to the raw materials engaged in various phases of production scheduled. The
degree of completion may be varying for units. Some units might have been just
introduced and some others may be 40% complete of there may be 90% complete. The
work in progress refers to partially produced goods. The value of work in progress refers
to raw materials cost, direct wages and expenses already inputted and the overhead if any,
so work in progress inventory contains partially produced completed goods. The purposes
of work in progress inventory I stop uncouple the various operations in the production
process so that machine failure and stoppage in one operation will not affect other
operations.
FINISHED GOODS:
Inventory that is in a saleable of shippable from based upon its location within the
supply chain. Finished goods are complete products awaiting sale. They are the final
output of the production process in manufacturing firm. An item considered as finished
goods in a supplying plant might be considered a component or raw material in a
receiving plant. Commodities that will not undergo further processing and ready for sale
to the final customers are generally referred to as merchandise inventory.

2.1.3 INVENTORY REVIEW SYSTEMS:

In most of the realistic inventory situations, certainty does not exist. Both
Usage and lead time fluctuate and can’t be predicted demand or usage of items can
be greater of lesser than anticipated due to external and internal factors. If these
are no inventory of items when required due to any reason a stock out situation
occurs. This situation can lead to a decrease in profits and some times even losses.
As a result a class of inventory systems has been developed to cope with the
situations where the Demand or the lead-time or both fluctuate.
• Perpetual Review Systems- under this system the recorder quantity
is fixed At the EOQ level but the frequency or ordering various
depending on the Fluctuations in consumption. Whenever the inventory
reaches the recorder Level on order for a fixed quantity is placed. This
system is also known as the fixed order quantity system or recorder point
inventory system or Q-system.

12
 • Periodic Review System This system is based on the determination
of a fixed period at which the order period. Here, the consumption,
demand and stock Level are calculated and the quantity ordered
which is required to make the stock Reach the maximum level on the
date of replenishment. Hence, the fluctuation Demand is taken care by
the safety stock.

2.1.4 TOOLS OF INVENTORY MANAGEMENT

Effective inventory management requires control over inventories. Inventory
control refers to a system, which ensures supply of required quantity of inventories in the
required time and at the same time prevents unnecessary investment in inventories. The
tools of inventory are as follows.

 ABC ANALYSIS:

ABC analysis is a form of inventory control wherein different degrees of control

are exercised over different items of stores on the basis of the investment involve. Under
this method the materials are managed by giving importance to items value. ABC
analysis convent rates on importance and exception. This approach is also known as
proportional value analysis (PAV), it also means “Always Better Control”.
Example: in the making of aircraft, cryogenic engines involving high costs will be
monitored closely while cost of tiers, nuts and bolts etc. will be given lesser attention.
Under this system the items are divided into three categories according to tier importance
in terms of value and frequency of replenishment during a period.
These categories are,
 A categories - Highly important

 B categories - Relatively less important

13
  C categories - Least important

Advantages:
 It ensures close control on costly items in which a large amount of capital
has been invested.

 It helps in developing scientific method of controlling inventories. Clerical

costs are reduced and stock is maintained at optimum level.

 It helps in achieving the main objectives of inventory control at minimum

cost. The stock turnover rate can be maintained at comparatively higher
level through scientific control of inventories.

Limitations:
 The system analyses the items according to their value and not according
to their importance of the production process. It may therefore sometimes
create difficult problems. Hence the system of ABC analysis should not be
followed blindly.

 Inventory control should be preceded by a value analysis. A very effective

tool for those purposes is ABC analysis control to be effective as well as
economical should be based on the ABC analysis.

 Profits are made only at time of final sale, and that the management should
put in greater effort for finished goods inventory.

 ECONOMIC ORDER QUANTITY:

EOQ refers to the quantity to be purchased every time so as to minimize the total
of two types of costs associated with purchase. The size of the order for which both
the ordering and carrying cost are minimum is known as Economic Order Quantity.
The ordering cost or order placing costs consists of salary of the staffs; they are in
charge of ordering goods, transportation costs, cost of stationary, typing cost, postal,

14
 telephone charges etc,. Carrying costs refers to the cost of capital, cost of storage,
insurance cost and cost of spoilage etc, both these cost should be maintained at
minimum for a specific quantity of materials.

The ECONOMIC ORDER QUANTITY can be determined by;

 FSN ANALYSIS:

Under this method materials are grouped according to movement. They are fast
moving, slow moving, non moving items.
F= Fast moving item which are stored in large quantity and close watch on
the movement of such items are kept.
S= Slow moving items which are frequently needed by the production
department accordingly moderate quantity with moderate quantity with moderate
supervision will be maintained.
N= Non moving items which are rarely required by the production
department. These non moving items should have to be reduced in production.

15
2.2 RESEARCH METHODOLOGY
Research methodology is a systematic and objective process of identifying
formulating the problem by setting objectives. It is the method for controlling, editing,
calculating, evaluating, analyzing and interpreting data in order to find justified solutions.
Descriptive……..
ANALYTICAL RESEARCH:
In analytical research the researcher has to use facts or information already
available, and analyze these to make a critical evaluation of the material
The research method used for the project involves an analytical research, which
has been carried out respect to the existing system in the company and a critical
evaluation of the same is made.

Sources of Data:
 Secondary Data

Secondary Data:
Secondary data is the information obtained from the already existing ones where
the data are collected from the various books of journals. They are as follows

a. Stock book:
It provides the information such as date, quality, and value of the stock
received and issued. This enables to calculate the price of raw materials.

b. Purchase journals:
It provides the information such as date, quantity, and value of the goods
purchased. This enables to calculate the standard quantity and price of raw
materials.

c. Raw materials and store transaction:

It provides the information such as date, quantity, and value of raw
materials (i.e.) stored in the stores. This enables to understand the way of
monitoring the inventory.
16
 d. Annual report:
It provides all the information about the ICF for the accounting period.
This enables to understand the existing performance of the company.

TOOLS:
 ABC Analysis
 EOQ Analysis
 FSN Analysis

17
2.3 LIMITATIONS OF THE STUDY
 The study is limited to raw materials only.

 The study is based on information available in the records and the

information given by the executives.

 Analysis mainly contains the high value items.

 Reports are prepared only with the availability of facts and figures.

 The study is limited to secondary data only.

18
 CHAPTER – III
ANALYSIS AND INTERPRETATION

19
3. ANALYSIS AND INTERPRETATION

3.1 ABC ANALYSIS

Table 3.1.1. Table Showing ABC analysis for the period 2006-2007
SL ANNUAL ANNUAL ANN Cum Category
NO: U.L. NO. DESCRIPTION REQT. VALUE CONSUM Cumm m%
62310732 TUBES GALVD. LIGHT 1,242.00 1218.4 A
1 CLASS DIA 50M 1513253 1513253 21
70017130 PLAINGRIND WHEELF 61 1232.64 A
2 FACED200X10X40 75191 1588444 22
70037073 PLAINGRIND WHEEL 2 2,627.00 A
3 ROS D450X63X254 5254 1593698 22
70057000 CENT LESS 20 4,872.59 A
4 GRINDEHD500X150X304.8 97452 1691150 23
70061725 C.LES CTRL GR WH 2 10,920.00 A
5 D300X200X127ROS 21840 1712990 24
70107002 TAPER CUP GR WHEEL 52 1133.08 A
6 D100X40X31.75 58920 1771910 24
70137006 DIAMOND WHEEL CHP 2 1,456.00 A
7 BRKR D90X5X10 2912 1774822 24
70137109 DISC CENTRE DEPRESED 2,749.00 73.66 A
8 180X7X22.23 202491 1977313 27
72010307 HSS H.H.S 2,593.00 26.61 A
9 BLADE300X13X0.63X1.0P 69000 2046313 28
72017910 SEGMENT CIRCU SAW 5 373 11303.68 B
10 TPS D1010MM 4216273 6262586 86
72047094 INDEX INSERT TPKN 22 2,100.00 84.8 B
11 04 PD R P30 178080 6440666 89
72202520 DRILL TWIST HSS PS 2.50 65 7.91 B
12 MM IS 51 514 6441180 89
72202622 DRILL TWIST HSS PS 3.00 70 11.94 B
13 MM IS 51 836 6442015 89
72202671 DRILL TWIST HSS PS 3.50 90 11.98 B
14 MM IS 51 1078 6443094 89
72202695 DRILL TWIST HSS PS 3.70 322 19.36 B
15 MM IS 51 6234 6449328 89
72202701 DRILL TWIST HSS PS 3.80 20 9.68 B
16 MM IS 51 194 6449521 89
72202725 DRILL TWIST HSS PS 4.00 302 19.18 B
17 MM IS 51 5792 6455314 89
72202749 DRILL TWIST HSS PS 4.20 340 22.21 B
18 MM IS 51 7551 6462865 89
19 72202750 HSS P.S J.S.DRILL 4.3MM 237 16.37 3880 6466745 89 B
72202774 DRILL TWIST HSS PS 4.50 108 31.45 B
20 MM IS 51 3397 6470141 89
72202828 DRILL TWIST HSS PS 180 34.78 B
21 5.00MM IS 510 6260 6476402 89
72202830 DRILL TWIST HSS PS 5.10 1,274.00 21.63 B
22 MM IS 51 27557 6503958 89
72202877 DRILL TWIST HSS PS 5.50 150 34.24 C
23 MM IS 51 5136 6509094 90
24 72202920 DRILL TWIST HSS PS 390 37.61 14668 6523762 90 C

20
 6.00MM IS 510
72202956 DRILL TWIST HSS PS 6.30 1222 40.97 C
25 MM IS 51 50065 6573827 90
72202970 DRILL TWIST HSS PS 6.50 22 38.19 C
26 MM IS 51 840 6574668 90
72010307 HSS H.H.S 2,593.00 26.61 C
27 BLADE300X13X0.63X1.0P 69000 6643667 91
72017685 BAND SAW BLADE 195 442 C
28 6.4WX0.9TX1.8PIT 86190 6729857 93
72017790 HSS MC.H.S 50 695.59 C
29 BLADE525X45X2.25X6.3P 34780 6764637 93
72017910 SEGMENT CIRCU SAW 5 373 303.68 C
30 TPS D1010MM 113273 6877910 95
72017946 SEGMENT CIRCU SAW 4 35 191.35 C
31 TPS D910 6697 6884607 95
72017958 SEGMENT CIRCU SAW 5 214 331.76 C
32 TPS D910X5TP 70997 6955603 96
72017960 SEGMENT CIRCU SAW 6 27 205.92 C
33 TPS D400X6TP 5560 6961163 96
34 72046752 TIP CARBIDE B16 P20 7 38.69 271 6961434 96 C
35 72046806 TIP CARBIDE C20 P20 20 191.14 3823 6965257 96 C
36 72046818 TIP CARBIDE C25 P20 10 104.47 1045 6966302 96 C
37 72046855 TIP CARBIDE D10 P20 10 227.24 2272 6968574 96 C
72046909 INDEX INSERT KNUX 16 30 111.29 C
38 04 15R12 S4 3339 6971913 96
72047021 INDEX INSERT TPUN 16 50 77.42 C
39 03 08 P30 3871 6975784 96
72047033 INDEX INSERT TPUN 22 100 92.09 C
40 04 12 P30 9209 6984993 96
72047094 INDEX INSERT TPKN 22 2,100.00 84.8 C
41 04 PD R P30 178080 7163073 98
72047770 PARTING OFF 40 104.18 C
42 INSERTWIDIA 4MM 4167 7167240 99
72047811 DRILLINGINSERT WCMX 300 198.67 C
43 08 04 12 R53 59601 7226841 99
72047951 DRILLING INSERT WCMX 140 162.33 C
44 06 03 08P40 22726 7249567 100
72060013 HSS HARDEN&GROUND 20 170.56 C
45 SQ 10X10X200 3411 7252978 100
72060025 HSS HARDEN&GROUND 14 161.2 C
46 SQ 12X12X150 2257 7255235 100
72090728 HSS HAND TAPS C PITCH 13 321.96 C
47 M8X1.25 4185 7259421 100
72090868 HSS HAND TAPS C PITCH 9 539.2 C
48 M12X1.75 4853 7264273 100
72090960 HSS HAND TAPS C PITCH 9 741.56 C
49 M16X2.00 6674 7270947 100
72094941 HSS LONG M/CTAP CP TY 8 200.23 C
50 B M10X1.50 1602 7272549 100
TOTAL 7272549

(Sources: Secondary Data)

INTERPRETATION:
 It is found that, out of 100 items only 18% of items consume 70% of total
consumption value. Hence, it is called ‘A’ category items.
 Out of 100 items, 26% of items consume 20% of total consumption value. They
are called ‘B’ category.
21
  In the last case, 56% of items consumes 10% of total value, hence they are called
‘C’ category.

Chart 3.1.1 Chart Showing ABC Analysis for the Period for 2006-2007

(Sources: Table no. 3.1.1)

22
Table 3.1.2 Table Showing ABC analysis for the period 2007-2008
SL ANNUAL ANNUAL ANN Cumm Cate
NO: U.L. NO. DESCRIPTION REQT. VALUE CONSUM Cumm % gory
6231073 TUBES GALVD. LIGHT CLASS 1,468.00 218.4 A
1 2 DIA 50M 320611 320611 5
7001713 PLAINGRIND WHEELF 68 11194.37 108182 A
2 0 FACED200X10X40 761217 8 16
7003707 PLAINGRIND WHEEL ROS 1 2,957.50 108478 A
3 3 D450X63X254 2958 6 16
7005700 CENT LESS 35 4,877.60 125550 A
4 0 GRINDEHD500X150X304.8 170716 2 19
7006172 C.LES CTRL GR WH 2 9,858.33 127521 A
5 5 D300X200X127ROS 19717 9 19
7010700 TAPER CUP GR WHEEL 14 11133.08 143108 A
6 2 D100X40X31.75 155863 2 21
7013700 DIAMOND WHEEL CHP BRKR 2 1,456.00 143399 A
7 6 D90X5X10 2912 4 21
7013710 DISC CENTRE DEPRESED 2,352.00 65.52 158809 A
8 9 180X7X22.23 154103 7 24
7201030 HSS H.H.S 3,220.00 1122 520093 B
9 7 BLADE300X13X0.63X1.0P 3612840 7 77
7201791 SEGMENT CIRCU SAW 5 TPS 312 1361.92 562585 B
10 0 D1010MM 424919 6 83
7204709 INDEX INSERT TPKN 22 04 PD 3,250.00 83.3 589658 B
11 4 R P30 270725 1 87
7220252 DRILL TWIST HSS PS 2.50 MM 75 12.96 589755 B
12 0 IS 51 972 3 87
7220262 DRILL TWIST HSS PS 3.00 MM 41 12.84 589807 B
13 2 IS 51 526 9 87
7220267 DRILL TWIST HSS PS 3.50 MM 166 17.25 590094 B
14 1 IS 51 2864 3 88
7220269 DRILL TWIST HSS PS 3.70 MM 130 19.36 590345 B
15 5 IS 51 2517 9 88
7220270 DRILL TWIST HSS PS 3.80 MM 10 9.68 590355 B
16 1 IS 51 97 6 88
7220272 DRILL TWIST HSS PS 4.00 MM 69 16.19 590467 B
17 5 IS 51 1117 3 88
7220274 DRILL TWIST HSS PS 4.20 MM 122 23.72 590756 B
18 9 IS 51 2894 7 88
7220275 HSS P.S J.S.DRILL 4.3MM 267 23.09 591373 B
19 0 6165 2 88
7220277 DRILL TWIST HSS PS 4.50 MM 136 33.08 591823 B
20 4 IS 51 4499 1 88
7220282 DRILL TWIST HSS PS 5.00MM 200 34.78 592518 B
21 8 IS 510 6956 7 88
7220283 DRILL TWIST HSS PS 5.10 MM 1,576.00 19 595513 B
22 0 IS 51 29944 1 88
7220287 DRILL TWIST HSS PS 5.50 MM 185 34.24 596146 B
23 7 IS 51 6334 6 88
7220292 DRILL TWIST HSS PS 6.00MM 482 36.06 597884 B
24 0 IS 510 17381 6 89
25 7220295 DRILL TWIST HSS PS 6.30 MM 72 40.97 2950 598179 89 B

23
 6 IS 51 6
7220297 DRILL TWIST HSS PS 6.50 MM 88 91.63 598986 B
26 0 IS 51 8063 0 89
7201030 HSS H.H.S 3,220.00 22 606070 C
27 7 BLADE300X13X0.63X1.0P 70840 0 90
7201768 BAND SAW BLADE 200 466.88 615407 C
28 5 6.4WX0.9TX1.8PIT 93376 6 91
7201779 HSS MC.H.S 10 695.59 616103 C
29 0 BLADE525X45X2.25X6.3P 6956 2 91
7201791 SEGMENT CIRCU SAW 5 TPS 312 361.92 627395 C
30 0 D1010MM 112919 1 93
7201794 SEGMENT CIRCU SAW 4 TPS 3 374.39 627507 C
31 6 D910 1123 4 93
7201795 SEGMENT CIRCU SAW 5 TPS 3 416 627632 C
32 8 D910X5TP 1248 2 93
7201796 SEGMENT CIRCU SAW 6 TPS 25 205.92 628147 C
33 0 D400X6TP 5148 0 93
7204675 TIP CARBIDE B16 P20 20 146.58 628440 C
34 2 2932 1 93
7204680 TIP CARBIDE C20 P20 20 191.14 628822 C
35 6 3823 4 93
7204681 TIP CARBIDE C25 P20 20 104.47 629031 C
36 8 2089 4 93
7204685 TIP CARBIDE D10 P20 10 227.24 629258 C
37 5 2272 6 93
7204690 INDEX INSERT KNUX 16 04 30 111.29 629592 C
38 9 15R12 S4 3339 5 93
7204702 INDEX INSERT TPUN 16 03 08 50 77.42 629979 C
39 1 P30 3871 6 93
7204703 INDEX INSERT TPUN 22 04 12 30 92.09 630255 C
40 3 P30 2763 8 93
7204709 INDEX INSERT TPKN 22 04 PD 3,250.00 83.3 657328 C
41 4 R P30 270725 3 98
7204777 PARTING OFF INSERTWIDIA 400 108.29 661659 C
42 0 4MM 43316 9 98
7204781 DRILLINGINSERT WCMX 08 04 425 204.67 670358 C
43 1 12 R53 86985 4 99
7204795 DRILLING INSERT WCMX 06 100 167.79 672036 C
44 1 03 08P40 16779 3 100
7206001 HSS HARDEN&GROUND SQ 15 103.6 672191 C
45 3 10X10X200 1554 7 100
7206002 HSS HARDEN&GROUND SQ 5 161.2 672272 C
46 5 12X12X150 806 3 100
7209072 HSS HAND TAPS C PITCH 8 429 672615 C
47 8 M8X1.25 3432 5 100
7209086 HSS HAND TAPS C PITCH 11 652.95 673333 C
48 8 M12X1.75 7182 8 100
7209096 HSS HAND TAPS C PITCH 7 741.56 673852 C
49 0 M16X2.00 5191 9 100
7209494 HSS LONG M/CTAP CP TY B 8 274.5 674072 C
50 1 M10X1.50 2196 5 100
6740725
(Sources: Secondary Data)

INTERPRETATION:
 It is found that, out of 100 items only 16% of items consume 70% of total
consumption value. Hence, it is called ‘A’ category items.
 Out of 100 items, 34% of items consume 20% of total consumption value. They
are called ‘B’ category.
24
  In the last case, 50% of items consumes 10% of total value, hence they are called
‘C’ category.

Chart 3.1.2 Chart Showing ABC Analysis for the Period for 2007-2008

(Sources: Table 3.1.2)

25
Table 3.1.3 Table Showing ABC analysis for the period 2008-2009

SL ANNUAL ANNUAL ANN Cum Cate

NO: U.L. NO. DESCRIPTION REQT. VALUE CONSUM Cumm m% gory
6231073 TUBES GALVD. LIGHT 30 11215.28 A
1 2 CLASS DIA 50M 336458 336458 4
7001713 PLAINGRIND WHEELF 7 11194.37 A
2 0 FACED200X10X40 78361 414819 5
7003707 PLAINGRIND WHEEL ROS 1 12,957.5 A
3 3 D450X63X254 0 12958 427776 5
7005700 CENT LESS 10 4,877.67 A
4 0 GRINDEHD500X150X304.8 48777 476553 5
7006172 C.LES CTRL GR WH 1 19,858.3 A
5 5 D300X200X127ROS 3 19858 496412 5
7010700 TAPER CUP GR WHEEL 12 11193.19 A
6 2 D100X40X31.75 134318 630730 7
7013700 DIAMOND WHEEL CHP 1 1,144.00 A
7 6 BRKR D90X5X10 1144 631874 7
7013710 DISC CENTRE DEPRESED 842 1172.8 161937 A
8 9 180X7X22.23 987498 1 18
7201030 HSS H.H.S 265 15623.1 575949 A
9 7 BLADE300X13X0.63X1.0P 4140122 3 64
7201791 SEGMENT CIRCU SAW 5 108 448.92 580797 A
10 0 TPS D1010MM 48483 6 64
7204709 INDEX INSERT TPKN 22 04 250 2383.3 640380 B
11 4 PD R P30 595825 1 71
7220252 DRILL TWIST HSS PS 2.50 10 4812.96 645193 B
12 0 MM IS 51 48130 1 71
7220262 DRILL TWIST HSS PS 3.00 20 6612.84 658418 B
13 2 MM IS 51 132257 8 73
7220267 DRILL TWIST HSS PS 3.50 40 1117.25 662887 B
14 1 MM IS 51 44690 8 73
7220269 DRILL TWIST HSS PS 3.70 40 1116.18 667352 B
15 5 MM IS 51 44647 5 74
7220270 DRILL TWIST HSS PS 3.80 40 9.68 667391 B
16 1 MM IS 51 387 2 74
7220272 DRILL TWIST HSS PS 4.00 12 5515.6 674009 B
17 5 MM IS 51 66187 9 74
7220274 DRILL TWIST HSS PS 4.20 40 123.72 674504 B
18 9 MM IS 51 4949 8 74
7220275 HSS P.S J.S.DRILL 4.3MM 56 1123.09 680794 B
19 0 62893 1 75
7220277 DRILL TWIST HSS PS 4.50 10 1133.08 681927 B
20 4 MM IS 51 11331 2 75
7220282 DRILL TWIST HSS PS 20 34.78 681996 B
21 8 5.00MM IS 510 696 8 75
7220283 DRILL TWIST HSS PS 5.10 10 19 682015 B
22 0 MM IS 51 190 8 75
7220287 DRILL TWIST HSS PS 5.50 30 1134.24 685418 B
23 7 MM IS 51 34027 5 76

26
 7220292 DRILL TWIST HSS PS 70 7836.06 740270 B
24 0 6.00MM IS 510 548524 9 82
7220295 DRILL TWIST HSS PS 6.30 20 23540.97 787352 B
25 6 MM IS 51 470819 8 87
7220297 DRILL TWIST HSS PS 6.50 5 5591.63 790148 B
26 0 MM IS 51 27958 6 87
7201030 HSS H.H.S 3,630.00 23.1 798533 B
27 7 BLADE300X13X0.63X1.0P 83853 9 88
7201768 BAND SAW BLADE 200 466.88 807871 B
28 5 6.4WX0.9TX1.8PIT 93376 5 89
7201779 HSS MC.H.S 10 695.59 808567 B
29 0 BLADE525X45X2.25X6.3P 6956 1 89
7201791 SEGMENT CIRCU SAW 5 512 361.92 827097 C
30 0 TPS D1010MM 185303 4 91
7201794 SEGMENT CIRCU SAW 4 3 374.39 827209 C
31 6 TPS D910 1123 8 91
7201795 SEGMENT CIRCU SAW 5 3 416 827334 C
32 8 TPS D910X5TP 1248 6 91
7201796 SEGMENT CIRCU SAW 6 25 205.92 827849 C
33 0 TPS D400X6TP 5148 4 91
7204675 TIP CARBIDE B16 P20 60 146.58 828728 C
34 2 8795 8 91
7204680 TIP CARBIDE C20 P20 20 191.14 829111 C
35 6 3823 1 92
7204681 TIP CARBIDE C25 P20 20 104.47 829320 C
36 8 2089 1 92
7204685 TIP CARBIDE D10 P20 10 227.24 829547 C
37 5 2272 3 92
7204690 INDEX INSERT KNUX 16 04 172 197.6 832946 C
38 9 15R12 S4 33987 0 92
7204702 INDEX INSERT TPUN 16 03 50 77.42 833333 C
39 1 08 P30 3871 1 92
7204703 INDEX INSERT TPUN 22 04 30 92.09 833609 C
40 3 12 P30 2763 4 92
7204709 INDEX INSERT TPKN 22 04 4,550.00 83.3 871510 C
41 4 PD R P30 379015 9 96
7204777 PARTING OFF 1,040.00 108.29 882773 C
42 0 INSERTWIDIA 4MM 112622 0 97
7204781 DRILLINGINSERT WCMX 08 695 204.67 896997 C
43 1 04 12 R53 142246 6 99
7204795 DRILLING INSERT WCMX 230 167.79 900856 C
44 1 06 03 08P40 38592 8 99
7206001 HSS HARDEN&GROUND 25 103.6 901115 C
45 3 SQ 10X10X200 2590 8 99
7206002 HSS HARDEN&GROUND 25 161.2 901518 C
46 5 SQ 12X12X150 4030 8 100
7209072 HSS HAND TAPS C PITCH 18 415.25 902266 C
47 8 M8X1.25 7475 2 100
7209086 HSS HAND TAPS C PITCH 21 652.95 903637 C
48 8 M12X1.75 13712 4 100
7209096 HSS HAND TAPS C PITCH 8 741.56 904230 C
49 0 M16X2.00 5932 7 100
7209494 HSS LONG M/CTAP CP TY 58 274.5 905822 C
50 1 B M10X1.50 15921 8 100
TOTAL 9058228

(Sources: Secondary Data)

INTERPRETATION:

27
  It is found that, out of 100 items only 20% of items consume 70% of total
consumption value. Hence, it is called ‘A’ category items.
 Out of 100 items, 38% of items consume 20% of total consumption value. They
are called ‘B’ category.
 In the last case, 42% of items consumes 10% of total value, hence they are called
‘C’ category.

Chart 3.1.3 Chart Showing ABC Analysis for the Period for 2008-2009

(Sources: Table 3.1.3)

28
3.2 ECONOMIC ORDER QUANTITY

Table 3.2.1 Table Showing EOQ analysis for the period 2006-2007

SL ANNUAL ANNUAL
NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 62310732 TUBES GALVD. LIGHT CLASS DIA 50M 1,242.00 1218.4 5936
2 70137109 DISC CENTRE DEPRESED 180X7X22.23 61 1232.64 1308
3 72047094 INDEX INSERT TPKN 22 04 PD R P30 2 2,627.00 162
4 72047094 INDEX INSERT TPKN 22 04 PD R P30 20 4,872.59 377
5 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 2 10,920.00 80
6 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 52 1133.08 1260
7 70057000 CENT LESS GRINDEHD500X150X304.8 2 1,456.00 218
8 72017685 BAND SAW BLADE 6.4WX0.9TX1.8PIT 2,749.00 73.66 35918
9 72017958 SEGMENT CIRCU SAW 5 TPS D910X5TP 2,593.00 26.61 58039
10 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 373 11303.68 1068
11 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 2,100.00 84.8 29259
12 72047811 DRILLINGINSERT WCMX 08 04 12 R53 65 7.91 16854
13 72017790 HSS MC.H.S BLADE525X45X2.25X6.3P 70 11.94 14236
14 72202830 DRILL TWIST HSS PS 5.10 MM IS 51 90 11.98 16115
15 72047951 DRILLING INSERT WCMX 06 03 08P40 322 19.36 23978
16 70061725 C.LES CTRL GR WH D300X200X127ROS 20 9.68 8451
17 72202920 DRILL TWIST HSS PS 6.00MM IS 510 302 19.18 23330
70017130 PLAINGRIND WHEELF 340 22.21
18 FACED200X10X40 23004
19 72047033 INDEX INSERT TPUN 22 04 12 P30 237 16.37 22371
20 72202749 DRILL TWIST HSS PS 4.20 MM IS 51 108 31.45 10895
21 70107002 TAPER CUP GR WHEEL D100X40X31.75 180 34.78 13376
22 72017946 SEGMENT CIRCU SAW 4 TPS D910 1,274.00 21.63 45123
23 72090960 HSS HAND TAPS C PITCH M16X2.00 150 34.24 12306
24 72202828 DRILL TWIST HSS PS 5.00MM IS 510 390 37.61 18933
25 72202695 DRILL TWIST HSS PS 3.70 MM IS 51 1222 40.97 32110
26 72202725 DRILL TWIST HSS PS 4.00 MM IS 51 22 38.19 4463
27 72017960 SEGMENT CIRCU SAW 6 TPS D400X6TP 2,593.00 26.61 58039
70037073 PLAINGRIND WHEEL ROS 195 442
28 D450X63X254 3905
29 72202877 DRILL TWIST HSS PS 5.50 MM IS 51 50 695.59 1576
30 72090868 HSS HAND TAPS C PITCH M12X1.75 373 303.68 6516

29
31 72090728 HSS HAND TAPS C PITCH M8X1.25 35 191.35 2515
32 72047770 PARTING OFF INSERTWIDIA 4MM 214 331.76 4722
33 72202750 HSS P.S J.S.DRILL 4.3MM 27 205.92 2129
34 72047021 INDEX INSERT TPUN 16 03 08 P30 7 38.69 2501
35 72046806 TIP CARBIDE C20 P20 20 191.14 1902
36 72060013 HSS HARDEN&GROUND SQ 10X10X200 10 104.47 1819
37 72202774 DRILL TWIST HSS PS 4.50 MM IS 51 10 227.24 1233
38 72046909 INDEX INSERT KNUX 16 04 15R12 S4 30 111.29 3053
70137006 DIAMOND WHEEL CHP BRKR 50 77.42
39 D90X5X10 4725
40 72046855 TIP CARBIDE D10 P20 100 92.09 6127
41 72060025 HSS HARDEN&GROUND SQ 12X12X150 2,100.00 84.8 29259
42 72094941 HSS LONG M/CTAP CP TY B M10X1.50 40 104.18 3643
43 72202671 DRILL TWIST HSS PS 3.50 MM IS 51 300 198.67 7225
44 72046818 TIP CARBIDE C25 P20 140 162.33 5460
45 72202956 DRILL TWIST HSS PS 6.30 MM IS 51 20 170.56 2013
46 72202970 DRILL TWIST HSS PS 6.50 MM IS 51 14 161.2 1733
47 72202622 DRILL TWIST HSS PS 3.00 MM IS 51 13 321.96 1181
48 72202520 DRILL TWIST HSS PS 2.50 MM IS 51 9 539.2 760
49 72046752 TIP CARBIDE B16 P20 9 741.56 648
50 72202701 DRILL TWIST HSS PS 3.80 MM IS 51 8 200.23 1175
(Source: Secondary Data)

INTERPRETATION:
It is inferred from the above analysis that the EOQ is greater in 72017958 and in
72017960 having the value of 58039 and having a minimum value of 80

Chart 3.2.1 Chart Showing EOQ Analysis for the Period for 2006-2007

EOQ OF INDEX INSERT TPKN

ANNUAL ANNUAL
SL NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 72047094 INDEX INSERT TPKN 22 04 PD R P30 2 2,627.00 162
2 72047094 INDEX INSERT TPKN 22 04 PD R P30 20 4,872.59 377
3 72047033 INDEX INSERT TPUN 22 04 12 P30 237 16.37 22371
4 72047021 INDEX INSERT TPUN 16 03 08 P30 7 38.69 2501
72046909 INDEX INSERT KNUX 16 04 15R12 S4 30 111.29
5 3053

30
 EOQ OF SEGMENT CIRCU SAW 5 TPS
ANNUAL ANNUAL
SL NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 2 10,920.00 80
2 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 52 1133.08 1260
3 72017958 SEGMENT CIRCU SAW 5 TPS D910X5TP 2,593.00 26.61 58039
4 72017946 SEGMENT CIRCU SAW 4 TPS D910 1,274.00 21.63 45123
5 72017960 SEGMENT CIRCU SAW 6 TPS D400X6TP 2,593.00 26.61 58039

EQ OF HSS
ANNUAL ANNUAL
SL NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 373 11303.68 1068
2 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 2,100.00 84.8 29259
3 72017790 HSS MC.H.S BLADE525X45X2.25X6.3P 70 11.94 14236
4 72090960 HSS HAND TAPS C PITCH M16X2.00 150 34.24 12306
5 72090868 HSS HAND TAPS C PITCH M12X1.75 373 303.68 6516
6 72090728 HSS HAND TAPS C PITCH M8X1.25 35 191.35 2515
7 72060013 HSS HARDEN&GROUND SQ 10X10X200 10 104.47 1819
8 72060025 HSS HARDEN&GROUND SQ 12X12X150 2,100.00 84.8 29259

31
9 72094941 HSS LONG M/CTAP CP TY B M10X1.50 40 104.18 3643

EOQ OF DRILL TWIST HSS PS

ANNUAL ANNUAL
SL NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 72202830 DRILL TWIST HSS PS 5.10 MM IS 51 90 11.98 16115
2 72202920 DRILL TWIST HSS PS 6.00MM IS 510 302 19.18 23330
3 72202749 DRILL TWIST HSS PS 4.20 MM IS 51 108 31.45 10895
4 72202828 DRILL TWIST HSS PS 5.00MM IS 510 390 37.61 18933
5 72202695 DRILL TWIST HSS PS 3.70 MM IS 51 1222 40.97 32110
6 72202725 DRILL TWIST HSS PS 4.00 MM IS 51 22 38.19 4463
7 72202877 DRILL TWIST HSS PS 5.50 MM IS 51 50 695.59 1576
8 72202774 DRILL TWIST HSS PS 4.50 MM IS 51 10 227.24 1233
9 72202671 DRILL TWIST HSS PS 3.50 MM IS 51 300 198.67 7225
10 72202956 DRILL TWIST HSS PS 6.30 MM IS 51 20 170.56 2013
11 72202970 DRILL TWIST HSS PS 6.50 MM IS 51 14 161.2 1733
12 72202622 DRILL TWIST HSS PS 3.00 MM IS 51 13 321.96 1181
13 72202520 DRILL TWIST HSS PS 2.50 MM IS 51 9 539.2 760
14 72202701 DRILL TWIST HSS PS 3.80 MM IS 51 8 200.23 1175

32
Table 3.2.2 Table Showing EOQ analysis for the period 2007-2008

SL ANNUAL ANNUAL
NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 62310732 TUBES GALVD. LIGHT CLASS DIA 50M 1,468.00 218.4 15243
2 72047094 INDEX INSERT TPKN 22 04 PD R P30 68 11194.37 458
3 72047094 INDEX INSERT TPKN 22 04 PD R P30 1 2,957.50 108
4 70057000 CENT LESS GRINDEHD500X150X304.8 35 4,877.60 498
5 70137109 DISC CENTRE DEPRESED 180X7X22.23 2 9,858.33 84
6 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 14 11133.08 208
7 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 2 1,456.00 218
8 72017685 BAND SAW BLADE 6.4WX0.9TX1.8PIT 2,352.00 65.52 35227
9 72047811 DRILLINGINSERT WCMX 08 04 12 R53 3,220.00 1122 9960
10 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 312 1361.92 2814
11 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 3,250.00 83.3 36725
12 72047770 PARTING OFF INSERTWIDIA 4MM 75 12.96 14144
13 72202830 DRILL TWIST HSS PS 5.10 MM IS 51 41 12.84 10506
14 70061725 C.LES CTRL GR WH D300X200X127ROS 166 17.25 18239
15 72202920 DRILL TWIST HSS PS 6.00MM IS 510 130 19.36 15236
16 72047951 DRILLING INSERT WCMX 06 03 08P40 10 9.68 5976
70017130 PLAINGRIND WHEELF 69 16.19
17 FACED200X10X40 12138
18 72202970 DRILL TWIST HSS PS 6.50 MM IS 51 122 23.72 13334
19 72090868 HSS HAND TAPS C PITCH M12X1.75 267 23.09 19993
20 72202828 DRILL TWIST HSS PS 5.00MM IS 510 136 33.08 11921
21 72017790 HSS MC.H.S BLADE525X45X2.25X6.3P 200 34.78 14099
22 72202877 DRILL TWIST HSS PS 5.50 MM IS 51 1,576.00 19 53548
23 72202750 HSS P.S J.S.DRILL 4.3MM 185 34.24 13667
24 72090960 HSS HAND TAPS C PITCH M16X2.00 482 36.06 21496
25 72017960 SEGMENT CIRCU SAW 6 TPS D400X6TP 72 40.97 7794
26 72202774 DRILL TWIST HSS PS 4.50 MM IS 51 88 91.63 5762
27 72047021 INDEX INSERT TPUN 16 03 08 P30 3,220.00 22 71131
28 72046806 TIP CARBIDE C20 P20 200 466.88 3848
29 72090728 HSS HAND TAPS C PITCH M8X1.25 10 695.59 705
30 72046909 INDEX INSERT KNUX 16 04 15R12 S4 312 361.92 5459
70037073 PLAINGRIND WHEEL ROS 3 374.39
31 D450X63X254 526
32 72202956 DRILL TWIST HSS PS 6.30 MM IS 51 3 416 499
33 72046752 TIP CARBIDE B16 P20 25 205.92 2049
70137006 DIAMOND WHEEL CHP BRKR 20 146.58
34 D90X5X10 2172

33
 35 72202749 DRILL TWIST HSS PS 4.20 MM IS 51 20 191.14 1902
36 72202671 DRILL TWIST HSS PS 3.50 MM IS 51 20 104.47 2573
37 72047033 INDEX INSERT TPUN 22 04 12 P30 10 227.24 1233
38 72202695 DRILL TWIST HSS PS 3.70 MM IS 51 30 111.29 3053
39 72046855 TIP CARBIDE D10 P20 50 77.42 4725
40 72094941 HSS LONG M/CTAP CP TY B M10X1.50 30 92.09 3356
41 72046818 TIP CARBIDE C25 P20 3,250.00 83.3 36725
42 70107002 TAPER CUP GR WHEEL D100X40X31.75 400 108.29 11300
43 72060013 HSS HARDEN&GROUND SQ 10X10X200 425 204.67 8472
44 72017958 SEGMENT CIRCU SAW 5 TPS D910X5TP 100 167.79 4539
45 72017946 SEGMENT CIRCU SAW 4 TPS D910 15 103.6 2237
46 72202725 DRILL TWIST HSS PS 4.00 MM IS 51 5 161.2 1035
47 72202520 DRILL TWIST HSS PS 2.50 MM IS 51 8 429 803
48 72060025 HSS HARDEN&GROUND SQ 12X12X150 11 652.95 763
49 72202622 DRILL TWIST HSS PS 3.00 MM IS 51 7 741.56 571
50 72202701 DRILL TWIST HSS PS 3.80 MM IS 51 8 274.5 1004

(Source: Secondary Data)

INTERPRETATION:
It is inferred from the above analysis that the EOQ is Greater in 72047021 and
having a value of 71131 and having a minimum value of 84 falls in 70137109

34
Table 3.1.2 Table Showing EOQ analysis for the period 2008-2009

SL ANNUAL ANNUAL
NO: U.L. NO. DESCRIPTION REQT. VALUE EOQ
1 72047094 INDEX INSERT TPKN 22 04 PD R P30 30 11215.28 304
2 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 7 11194.37 147
3 72047811 DRILLINGINSERT WCMX 08 04 12 R53 1 12,957.50 52
4 72047770 PARTING OFF INSERTWIDIA 4MM 10 4,877.67 266
5 72017685 BAND SAW BLADE 6.4WX0.9TX1.8PIT 1 19,858.33 42
6 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 12 11193.19 193
7 70137109 DISC CENTRE DEPRESED 180X7X22.23 1 1,144.00 174
8 70057000 CENT LESS GRINDEHD500X150X304.8 842 1172.8 4982
9 72017910 SEGMENT CIRCU SAW 5 TPS D1010MM 265 15623.1 766
10 72047951 DRILLING INSERT WCMX 06 03 08P40 108 448.92 2884
11 72046909 INDEX INSERT KNUX 16 04 15R12 S4 250 2383.3 1904
12 72047094 INDEX INSERT TPKN 22 04 PD R P30 10 4812.96 268
13 72094941 HSS LONG M/CTAP CP TY B M10X1.50 20 6612.84 323
14 72090868 HSS HAND TAPS C PITCH M12X1.75 40 1117.25 1112
15 70061725 C.LES CTRL GR WH D300X200X127ROS 40 1116.18 1113
16 72046752 TIP CARBIDE B16 P20 40 9.68 11952
17 72090728 HSS HAND TAPS C PITCH M8X1.25 12 5515.6 274
18 72017790 HSS MC.H.S BLADE525X45X2.25X6.3P 40 123.72 3343
19 62310732 TUBES GALVD. LIGHT CLASS DIA 50M 56 1123.09 1313
20 72010307 HSS H.H.S BLADE300X13X0.63X1.0P 10 1133.08 552
21 72090960 HSS HAND TAPS C PITCH M16X2.00 20 34.78 4459
22 72017960 SEGMENT CIRCU SAW 6 TPS D400X6TP 10 19 4265
23 72060025 HSS HARDEN&GROUND SQ 12X12X150 30 1134.24 956
24 72047021 INDEX INSERT TPUN 16 03 08 P30 70 7836.06 556
25 72046806 TIP CARBIDE C20 P20 20 23540.97 171
70037073 PLAINGRIND WHEEL ROS 5 5591.63
26 D450X63X254 176
27 72047033 INDEX INSERT TPUN 22 04 12 P30 3,630.00 23.1 73704
28 72060013 HSS HARDEN&GROUND SQ 10X10X200 200 466.88 3848
29 72202920 DRILL TWIST HSS PS 6.00MM IS 510 10 695.59 705
30 70107002 TAPER CUP GR WHEEL D100X40X31.75 512 361.92 6993
31 72046855 TIP CARBIDE D10 P20 3 374.39 526
32 72046818 TIP CARBIDE C25 P20 3 416 499
70017130 PLAINGRIND WHEELF 25 205.92
33 FACED200X10X40 2049
34 72202750 HSS P.S J.S.DRILL 4.3MM 60 146.58 3762
35 72017958 SEGMENT CIRCU SAW 5 TPS D910X5TP 20 191.14 1902
70137006 DIAMOND WHEEL CHP BRKR 20 104.47
36 D90X5X10 2573
37 72017946 SEGMENT CIRCU SAW 4 TPS D910 10 227.24 1233

35
38 72202877 DRILL TWIST HSS PS 5.50 MM IS 51 172 197.6 5485
39 72202749 DRILL TWIST HSS PS 4.20 MM IS 51 50 77.42 4725
40 72202956 DRILL TWIST HSS PS 6.30 MM IS 51 30 92.09 3356
41 72202828 DRILL TWIST HSS PS 5.00MM IS 510 4,550.00 83.3 43454
42 72202671 DRILL TWIST HSS PS 3.50 MM IS 51 1,040.00 108.29 18221
43 72202695 DRILL TWIST HSS PS 3.70 MM IS 51 695 204.67 10834
44 72202970 DRILL TWIST HSS PS 6.50 MM IS 51 230 167.79 6884
45 72202701 DRILL TWIST HSS PS 3.80 MM IS 51 25 103.6 2888
46 72202774 DRILL TWIST HSS PS 4.50 MM IS 51 25 161.2 2315
47 72202622 DRILL TWIST HSS PS 3.00 MM IS 51 18 415.25 1224
48 72202830 DRILL TWIST HSS PS 5.10 MM IS 51 21 652.95 1054
49 72202725 DRILL TWIST HSS PS 4.00 MM IS 51 8 741.56 611
50 72202520 DRILL TWIST HSS PS 2.50 MM IS 51 58 274.5 2703

(Souce: Secondary Data)

INTERPRETATION:

It is inferred from the above analysis that the EOQ is Greater in 72047033
and having a value of 73704 and having a minimum value of 42 falls in 72017685

36
3.3 FSN ANALYSIS

Table 3.3.1. Table Showing FSN analysis for the period 2006-2007

Duration
SL U.L. ANNUAL ANNUAL On B/W
NO: NO. DESCRIPTION REQT. VALUE EOQ No.Of.Orders Orders
6231073 TUBES GALVD. LIGHT 1,242.00 1218.4
1 2 CLASS DIA 50M 5936 0.2092 157
7204709 INDEX INSERT TPKN 22 04 61 1232.64
2 4 PD R P30 1308 0.0466 147
7204709 INDEX INSERT TPKN 22 04 2 2,627.00
3 4 PD R P30 162 0.0123 128
7005700 CENT LESS 20 4,872.59
4 0 GRINDEHD500X150X304.8 377 0.0531 186
7013710 DISC CENTRE DEPRESED 2 10,920.00
5 9 180X7X22.23 80 0.0251 03
7201791 SEGMENT CIRCU SAW 5 52 1133.08
6 0 TPS D1010MM 1260 0.0413 400
7201791 SEGMENT CIRCU SAW 5 2 1,456.00
7 0 TPS D1010MM 218 0.0092 78
7201768 BAND SAW BLADE 2,749.00 73.66
8 5 6.4WX0.9TX1.8PIT 35918 0.0765 198
7204781 DRILLINGINSERT WCMX 2,593.00 26.61
9 1 08 04 12 R53 58039 0.0447 97
7201030 HSS H.H.S 373 11303.68
10 7 BLADE300X13X0.63X1.0P 1068 0.3492 578
7201030 HSS H.H.S 2,100.00 84.8
11 7 BLADE300X13X0.63X1.0P 29259 0.0718 67
7204777 PARTING OFF 65 7.91
12 0 INSERTWIDIA 4MM 16854 0.0039 364
7220283 DRILL TWIST HSS PS 5.10 70 11.94
13 0 MM IS 51 14236 0.0049 93
7006172 C.LES CTRL GR WH 90 11.98
14 5 D300X200X127ROS 16115 0.0056 147
7220292 DRILL TWIST HSS PS 322 19.36
15 0 6.00MM IS 510 23978 0.0134 54
7204795 DRILLING INSERT WCMX 20 9.68
16 1 06 03 08P40 8451 0.0024 182
7001713 PLAINGRIND WHEELF 302 19.18
17 0 FACED200X10X40 23330 0.0129 222
7220297 DRILL TWIST HSS PS 6.50 340 22.21
18 0 MM IS 51 23004 0.0148 147
7209086 HSS HAND TAPS C PITCH 237 16.37
19 8 M12X1.75 22371 0.0106 179
20 7220282 DRILL TWIST HSS PS 108 31.45 10895 0.0099 14

37
 8 5.00MM IS 510
7201779 HSS MC.H.S 180 34.78
21 0 BLADE525X45X2.25X6.3P 13376 0.0135 78
7220287 DRILL TWIST HSS PS 5.50 1,274.00 21.63
22 7 MM IS 51 45123 0.0282 52
7220275 HSS P.S J.S.DRILL 4.3MM 150 34.24
23 0 12306 0.0122 47
7209096 HSS HAND TAPS C PITCH 390 37.61
24 0 M16X2.00 18933 0.0206 87
7201796 SEGMENT CIRCU SAW 6 1222 40.97
25 0 TPS D400X6TP 32110 0.0381 98
7220277 DRILL TWIST HSS PS 4.50 22 38.19
26 4 MM IS 51 4463 0.0049 47
7204702 INDEX INSERT TPUN 16 03 2,593.00 26.61
27 1 08 P30 58039 0.0447 87
7204680 TIP CARBIDE C20 P20 195 442
28 6 3905 0.0499 73
7209072 HSS HAND TAPS C PITCH 50 695.59
29 8 M8X1.25 1576 0.0317 37
7204690 INDEX INSERT KNUX 16 04 373 303.68
30 9 15R12 S4 6516 0.0572 49
7003707 PLAINGRIND WHEEL ROS 35 191.35
31 3 D450X63X254 2515 0.0139 42
7220295 DRILL TWIST HSS PS 6.30 214 331.76
32 6 MM IS 51 4722 0.0453 59
7204675 TIP CARBIDE B16 P20 27 205.92
33 2 2129 0.0127 122
7013700 DIAMOND WHEEL CHP 7 38.69
34 6 BRKR D90X5X10 2501 0.0028 111
7220274 DRILL TWIST HSS PS 4.20 20 191.14
35 9 MM IS 51 1902 0.0105 79
7220267 DRILL TWIST HSS PS 3.50 10 104.47
36 1 MM IS 51 1819 0.0055 39
7204703 INDEX INSERT TPUN 22 04 10 227.24
37 3 12 P30 1233 0.0081 48
7220269 DRILL TWIST HSS PS 3.70 30 111.29
38 5 MM IS 51 3053 0.0098 59
7204685 TIP CARBIDE D10 P20 50 77.42
39 5 4725 0.0106 97
7209494 HSS LONG M/CTAP CP TY 100 92.09
40 1 B M10X1.50 6127 0.0163 24
7204681 TIP CARBIDE C25 P20 2,100.00 84.8
41 8 29259 0.0718 04
7010700 TAPER CUP GR WHEEL 40 104.18
42 2 D100X40X31.75 3643 0.0110 199
7206001 HSS HARDEN&GROUND 300 198.67
43 3 SQ 10X10X200 7225 0.0415 79
7201795 SEGMENT CIRCU SAW 5 140 162.33
44 8 TPS D910X5TP 5460 0.0256 257
7201794 SEGMENT CIRCU SAW 4 20 170.56
45 6 TPS D910 2013 0.0099 79
7220272 DRILL TWIST HSS PS 4.00 14 161.2
46 5 MM IS 51 1733 0.0081 122
7220252 DRILL TWIST HSS PS 2.50 13 321.96
47 0 MM IS 51 1181 0.0110 107
7206002 HSS HARDEN&GROUND 9 539.2
48 5 SQ 12X12X150 760 0.0118 93
7220262 DRILL TWIST HSS PS 3.00 9 741.56
49 2 MM IS 51 648 0.0139 78
7220270 DRILL TWIST HSS PS 3.80 8 200.23
50 1 MM IS 51 1175 0.0068 234
(Source: Secondary Data)

38
INTERPRETATION:

It is inferred from the above analysis that the 25 Items falls in Fast Moving Items
and 14 Items falls in Slow Moving Items and remaining 11 Items falls in Non Moving
Items.

Table 3.3.2 Table Showing FSN analysis for the period 2007-2008

Duration
SL U.L. ANNUAL ANNUAL On B/W
NO: NO. DESCRIPTION REQT. VALUE EOQ No.Of.Orders Orders
6231073 TUBES GALVD. LIGHT 1,468.00 218.4
1 2 CLASS DIA 50M 15243 0.0963 157
7204709 INDEX INSERT TPKN 22 04 68 11194.37
2 4 PD R P30 458 0.1484 147
7204709 INDEX INSERT TPKN 22 04 1 2,957.50
3 4 PD R P30 108 0.0092 128
7005700 CENT LESS 35 4,877.60
4 0 GRINDEHD500X150X304.8 498 0.0703 186
7013710 DISC CENTRE DEPRESED 2 9,858.33
5 9 180X7X22.23 84 0.0239 03
7201791 SEGMENT CIRCU SAW 5 14 11133.08
6 0 TPS D1010MM 208 0.0671 400
7201791 SEGMENT CIRCU SAW 5 2 1,456.00
7 0 TPS D1010MM 218 0.0092 78
7201768 BAND SAW BLADE 2,352.00 65.52
8 5 6.4WX0.9TX1.8PIT 35227 0.0668 198
7204781 DRILLINGINSERT WCMX 3,220.00 1122
9 1 08 04 12 R53 9960 0.3233 97
7201030 HSS H.H.S 312 1361.92
10 7 BLADE300X13X0.63X1.0P 2814 0.1109 578
7201030 HSS H.H.S 3,250.00 83.3
11 7 BLADE300X13X0.63X1.0P 36725 0.0885 67
7204777 PARTING OFF 75 12.96
12 0 INSERTWIDIA 4MM 14144 0.0053 364
7220283 DRILL TWIST HSS PS 5.10 41 12.84
13 0 MM IS 51 10506 0.0039 93
7006172 C.LES CTRL GR WH 166 17.25
14 5 D300X200X127ROS 18239 0.0091 147
7220292 DRILL TWIST HSS PS 130 19.36
15 0 6.00MM IS 510 15236 0.0085 54
7204795 DRILLING INSERT WCMX 10 9.68
16 1 06 03 08P40 5976 0.0017 182
7001713 PLAINGRIND WHEELF 69 16.19
17 0 FACED200X10X40 12138 0.0057 222
7220297 DRILL TWIST HSS PS 6.50 122 23.72
18 0 MM IS 51 13334 0.0091 147
7209086 HSS HAND TAPS C PITCH 267 23.09
19 8 M12X1.75 19993 0.0134 179
7220282 DRILL TWIST HSS PS 136 33.08
20 8 5.00MM IS 510 11921 0.0114 14

39
 7201779 HSS MC.H.S 200 34.78
21 0 BLADE525X45X2.25X6.3P 14099 0.0142 78
7220287 DRILL TWIST HSS PS 5.50 1,576.00 19
22 7 MM IS 51 53548 0.0294 52
7220275 HSS P.S J.S.DRILL 4.3MM 185 34.24
23 0 13667 0.0135 47
7209096 HSS HAND TAPS C PITCH 482 36.06
24 0 M16X2.00 21496 0.0224 87
7201796 SEGMENT CIRCU SAW 6 72 40.97
25 0 TPS D400X6TP 7794 0.0092 98
7220277 DRILL TWIST HSS PS 4.50 88 91.63
26 4 MM IS 51 5762 0.0153 127
7204702 INDEX INSERT TPUN 16 03 3,220.00 22
27 1 08 P30 71131 0.0453 87
7204680 TIP CARBIDE C20 P20 200 466.88
28 6 3848 0.0520 73
7209072 HSS HAND TAPS C PITCH 10 695.59
29 8 M8X1.25 705 0.0142 37
7204690 INDEX INSERT KNUX 16 04 312 361.92
30 9 15R12 S4 5459 0.0572 49
7003707 PLAINGRIND WHEEL ROS 3 374.39
31 3 D450X63X254 526 0.0057 42
7220295 DRILL TWIST HSS PS 6.30 3 416
32 6 MM IS 51 499 0.0060 59
7204675 TIP CARBIDE B16 P20 25 205.92
33 2 2049 0.0122 122
7013700 DIAMOND WHEEL CHP 20 146.58
34 6 BRKR D90X5X10 2172 0.0092 111
7220274 DRILL TWIST HSS PS 4.20 20 191.14
35 9 MM IS 51 1902 0.0105 99
7220267 DRILL TWIST HSS PS 3.50 20 104.47
36 1 MM IS 51 2573 0.0078 129
7204703 INDEX INSERT TPUN 22 04 10 227.24
37 3 12 P30 1233 0.0081 48
7220269 DRILL TWIST HSS PS 3.70 30 111.29
38 5 MM IS 51 3053 0.0098 59
7204685 TIP CARBIDE D10 P20 50 77.42
39 5 4725 0.0106 97
7209494 HSS LONG M/CTAP CP TY 30 92.09
40 1 B M10X1.50 3356 0.0089 24
7204681 TIP CARBIDE C25 P20 3,250.00 83.3
41 8 36725 0.0885 94
7010700 TAPER CUP GR WHEEL 400 108.29
42 2 D100X40X31.75 11300 0.0354 199
7206001 HSS HARDEN&GROUND 425 204.67
43 3 SQ 10X10X200 8472 0.0502 79
7201795 SEGMENT CIRCU SAW 5 100 167.79
44 8 TPS D910X5TP 4539 0.0220 257
7201794 SEGMENT CIRCU SAW 4 15 103.6
45 6 TPS D910 2237 0.0067 79
7220272 DRILL TWIST HSS PS 4.00 5 161.2
46 5 MM IS 51 1035 0.0048 122
7220252 DRILL TWIST HSS PS 2.50 8 429
47 0 MM IS 51 803 0.0100 107
7206002 HSS HARDEN&GROUND 11 652.95
48 5 SQ 12X12X150 763 0.0144 93
7220262 DRILL TWIST HSS PS 3.00 7 741.56
49 2 MM IS 51 571 0.0123 128
7220270 DRILL TWIST HSS PS 3.80 8 274.5
50 1 MM IS 51 1004 0.0080 234

(Source: Secondary Data)

40
INTERPRETATION:

It is inferred from the above analysis that the 20 Items falls in Fast Moving Items
and 18 Items falls in Slow Moving Items and remaining 12 Items falls in Non Moving
Items.

Table 3.3.3 Table Showing FSN analysis for the period 2008-2009
Duration
SL U.L. ANNUAL ANNUAL B/W
NO: NO. DESCRIPTION REQT. VALUE EOQ No.Of.Orders Orders
7204709 INDEX INSERT TPKN 22 04 30 11215.28
1 4 PD R P30 304 0.099 157
7201791 SEGMENT CIRCU SAW 5 7 11194.37
2 0 TPS D1010MM 147 0.048 147
7204781 DRILLINGINSERT WCMX 1 12,957.50
3 1 08 04 12 R53 52 0.019 128
7204777 PARTING OFF 10 4,877.67
4 0 INSERTWIDIA 4MM 266 0.038 186
7201768 BAND SAW BLADE 1 19,858.33
5 5 6.4WX0.9TX1.8PIT 42 0.024 03
7201030 HSS H.H.S 12 11193.19
6 7 BLADE300X13X0.63X1.0P 193 0.062 400
7013710 DISC CENTRE DEPRESED 1 1,144.00
7 9 180X7X22.23 174 0.006 78
7005700 CENT LESS 842 1172.8
8 0 GRINDEHD500X150X304.8 4982 0.169 198
7201791 SEGMENT CIRCU SAW 5 265 15623.1
9 0 TPS D1010MM 766 0.346 97
7204795 DRILLING INSERT WCMX 108 448.92
10 1 06 03 08P40 2884 0.037 578
7204690 INDEX INSERT KNUX 16 04 250 2383.3
11 9 15R12 S4 1904 0.131 67
7204709 INDEX INSERT TPKN 22 04 10 4812.96
12 4 PD R P30 268 0.037 364
7209494 HSS LONG M/CTAP CP TY 20 6612.84
13 1 B M10X1.50 323 0.062 93
7209086 HSS HAND TAPS C PITCH 40 1117.25
14 8 M12X1.75 1112 0.036 147
7006172 C.LES CTRL GR WH 40 1116.18
15 5 D300X200X127ROS 1113 0.036 54
7204675 TIP CARBIDE B16 P20 40 9.68
16 2 11952 0.003 182
7209072 HSS HAND TAPS C PITCH 12 5515.6
17 8 M8X1.25 274 0.044 222
7201779 HSS MC.H.S 40 123.72
18 0 BLADE525X45X2.25X6.3P 3343 0.012 147
6231073 TUBES GALVD. LIGHT 56 1123.09
19 2 CLASS DIA 50M 1313 0.043 179
20 7201030 HSS H.H.S 10 1133.08 552 0.018 14

41
 7 BLADE300X13X0.63X1.0P
7209096 HSS HAND TAPS C PITCH 20 34.78
21 0 M16X2.00 4459 0.004 78
7201796 SEGMENT CIRCU SAW 6 10 19
22 0 TPS D400X6TP 4265 0.002 52
7206002 HSS HARDEN&GROUND 30 1134.24
23 5 SQ 12X12X150 956 0.031 47
7204702 INDEX INSERT TPUN 16 03 70 7836.06
24 1 08 P30 556 0.126 87
7204680 TIP CARBIDE C20 P20 20 23540.97
25 6 171 0.117 98
7003707 PLAINGRIND WHEEL ROS 5 5591.63
26 3 D450X63X254 176 0.028 127
7204703 INDEX INSERT TPUN 22 04 3,630.00 23.1
27 3 12 P30 73704 0.049 87
7206001 HSS HARDEN&GROUND 200 466.88
28 3 SQ 10X10X200 3848 0.052 73
7220292 DRILL TWIST HSS PS 10 695.59
29 0 6.00MM IS 510 705 0.014 37
7010700 TAPER CUP GR WHEEL 512 361.92
30 2 D100X40X31.75 6993 0.073 49
7204685 TIP CARBIDE D10 P20 3 374.39
31 5 526 0.006 42
7204681 TIP CARBIDE C25 P20 3 416
32 8 499 0.006 59
7001713 PLAINGRIND WHEELF 25 205.92
33 0 FACED200X10X40 2049 0.012 122
7220275 HSS P.S J.S.DRILL 4.3MM 60 146.58
34 0 3762 0.016 111
7201795 SEGMENT CIRCU SAW 5 20 191.14
35 8 TPS D910X5TP 1902 0.011 99
7013700 DIAMOND WHEEL CHP 20 104.47
36 6 BRKR D90X5X10 2573 0.008 129
7201794 SEGMENT CIRCU SAW 4 10 227.24
37 6 TPS D910 1233 0.008 48
7220287 DRILL TWIST HSS PS 5.50 172 197.6
38 7 MM IS 51 5485 0.031 59
7220274 DRILL TWIST HSS PS 4.20 50 77.42
39 9 MM IS 51 4725 0.011 97
7220295 DRILL TWIST HSS PS 6.30 30 92.09
40 6 MM IS 51 3356 0.009 24
7220282 DRILL TWIST HSS PS 4,550.00 83.3
41 8 5.00MM IS 510 43454 0.105 94
7220267 DRILL TWIST HSS PS 3.50 1,040.00 108.29
42 1 MM IS 51 18221 0.057 199
7220269 DRILL TWIST HSS PS 3.70 695 204.67
43 5 MM IS 51 10834 0.064 79
7220297 DRILL TWIST HSS PS 6.50 230 167.79
44 0 MM IS 51 6884 0.033 257
7220270 DRILL TWIST HSS PS 3.80 25 103.6
45 1 MM IS 51 2888 0.009 79
7220277 DRILL TWIST HSS PS 4.50 25 161.2
46 4 MM IS 51 2315 0.011 122
7220262 DRILL TWIST HSS PS 3.00 18 415.25
47 2 MM IS 51 1224 0.015 107
7220283 DRILL TWIST HSS PS 5.10 21 652.95
48 0 MM IS 51 1054 0.020 183
7220272 DRILL TWIST HSS PS 4.00 8 741.56
49 5 MM IS 51 611 0.013 128
7220252 DRILL TWIST HSS PS 2.50 58 274.5
50 0 MM IS 51 2703 0.021 234

(Source: Secondary Data)

42
INTERPRETATION:

It is inferred from the above analysis that the 28 Items falls in Fast Moving Items
and 12 Items falls in Slow Moving Items and remaining 10 Items falls in Non Moving
Items.

CHAPTER-IV
FINDINGS,SUGGESTIONS AND CONCLUSION

43
CHAPTER-4
4.1 FINDINGS OF THE STUDY

4.2 SUGGESTIONS OF THE STUDY

44
4.3 CONCLUSION:

45
46