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Winter Project Vaibhav
Winter Project Vaibhav
Winter Project Vaibhav
M.B.A.(SEM-I)
[WINTER PROJECT]
SUBMITTED TO:
ROLL NO: 02
ACKNOWLEDGMENT
I have pleasure in successful completion of this work titled
: TO DECREASE THE WORK LOAD WITHOUT HAMPERING THE NET
PROFIT OF THE FIRM
The special environment at S.K.N.SSBM, Pune that always supports
educational activities, facilitated my work on this project.I acknowledge
the support and encouragement extended for this study by Principal
Dr.Rajshree shinde
I greatly appreciate the motivation and understanding extended for the
project work, by Mr.G.G. Agrawal And staff of the surveyed firm, who
responded promptly and enthusiastically to my requested actions
despite their congested schedules. I am indebted to all of the fellow
suppliers to the firm, who helped to implement the project through their
support and suggestions.
I am very much thankful to Prof.Sanmath shetty for his encouragement
and guidance for this project work.
I acknowledge the authors, whose works gave me insight and information
related to this subject.
I am thankful to my father and mother as well the friends who encouraged me
to extend my reach; with their help and support, I have been able to complete
this work.
Signature
Date:
DISCLOSURE- The abovesaid firm is of my father. I have been a part of it for many years. So I knew
the problems and short-comings before hand. It also gave me liberty and freedom to exercise my
decision fearlessly. Yet I have tried my best to do it absolutely professionally with full dedication.
INDEX
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. DATA ANALYSIS
4. FINDINGS
5. MEASURES TAKEN
INTRODUCTION
Vaibhav Agencies is a Pharmaceutical Distributorship firm
located in Nagpur.Started in year 2002 it has progressed consistently in terms
of sales and distribution.
With the years passed by, the revenue of the firm increased
consistently and so the work load. Currently there are around 9 people
working in the firm. The total area of the working place is about 10x12 feet.
As far as selling is concerned the number of brands that are
currently sold by the firm ranges about 2500. All the items are sold in cash
only and delivered at the same time. The trade timing is such that almost
90% of the sales takes place in just 4 hours i.e; between 3pm to 7pm. Also all
the bills has to be dispatched at the same time and payment has to be taken
immediately.
Also as regards to purchasing, all items are purchased from the
stockists situated in the same market as it being a centralized one i.e; all the
stockists and sub-stockists are located in the same complex. So it becomes
absolutely necessary to manage stock without hampering the selling process.
Thus its a firm where place is a constraint and where sales
and purchase activities have to be balanced in such a way that customer
doesnt have to wait for long because they have got another supplier waiting
for them very next door.
The firm gets margin ranging from 5 to 10 percent of which 3
to 4 percent gets exhausted in mere billing process. Also it has to pay interest
of about 12% per annum on the bank credit facility used.
RESEARCH METHODOLOGY
As such the problems with the firm were very well explained by
the owner and workers. Also as the student itself has worked there
personally so even he was knowing the short-comings before-hand.
The firm is using a software provided by MICROTEK SOFTWARES
which keeps record of all the transactions that has taken place since the firm
started in a yearly pattern.
Inputs were taken from the customers, workers and some well
known people of the market for their invaluable experience as they are the
key role players.
The owner of the firm itself has a very vast knowledge of business
of about 30 years.
Also having been closely associated with the firm for so many
years even the student himself knows the basics of , if not the whole market,
the firm atleast.
Also a detailed study of data was made using the information
stored in the software used by firm.
DATA ANALYSIS
FINDINGS
xyz syrup
Now considering the net loss in profit that the firm will incur
due to discontinuance of cheap brands. If we take the total revenue
generated out of these items to be Rs 8 lakhs per annum which is far more
than actual revenue earned out of them, the net profit earned out of these
would amount to Rs 16000 @ 2% profit on sales.
But it can be seen that due to discontinuance of these many
items the work load has decreased drastically and it has actually created an
opportunity for shortening the work force. Work force shortening was infact
necessary as the workers were not having enough space to walk or work
owing to small floor area and the condition gets worse during peak hours.
Thus even if one worker is discontinued, the firm will save Rs.
24000 per annum ( if we consider the very basic salary as Rs 2000 per month)
which alone is capable of nullifying the net loss of abovesaid Rs 16000.
Thus it can be seen that owing to all such measures taken the
work load has decreased drastically while the net profit has infact increased.
CHANGES IN INVOICING- The culture of market is such that one man comes
to do purchasing for almost 5 to 10 customers. Also there are some major
customers who purchases in bulk. Order from such customers and purchasers
was then started to be taken on telephone that too in the lean hours of
morning when the billing is almost nil. This helped a lot in reducing work load
during peak hours and also the delivery got smoothened as by the time they
come to the shop their order gets processed, checked and packed.
STAFF SATISAFACTION- Staff is the backbone of any organization. A happy
employee is necessary for smooth working of an organization. Therefore
considering current inflation the salaries of the staff were increased
proportionately.
CUSTOMER SATISFACTION- The customers were not happy with the expiry &
breakage policy of the firm. To resolve all these, firstly one time settlement
of all their claims were done. Then a cart was installed in front of the shop
for putting expiry & breakage and they were asked to drop the packets of
their expiry and breakage items with the name of their firm inside it in
between 1st to 18th of every month. Thus customer satisfaction was given
priority and efforts were taken to achieve the same.
STOCK VERIFICATION- Stock verification was initiated by taking 3 to 4
companies daily in order to match the actual stock with that shown by
software. As this helps in maintainance of proper inventory and also reduces
the time loss.
CONCLUSION
All the above measures helped in reducing the work load drastically.
Also it was found that the daily turnover had not suffered any drastic decline
owing to discontinuance of so many products. The main reason behind it
being improved sales and purchasing pattern.
The firm has immense potential to improve and capture market if it can find
some solution to the constraint of available space.
SUGGESTIONS
It has been suggested that the firm should go for bulk purchase and avail bulk
discount which is very prominent.
It has been suggested that the firm should keep on searching for products
having prominent margin.
It has been suggested that fast moving items should be purchased in bulk.
It has been suggested that slow moving items with schemes should be
purchased only in one lot of scheme to avoid blockage of space and working
capital.
It has been suggested that all the financial statements should be tallied in the
same month.