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Aass Information Technology: AT Jindal Steel & Power LTD, Raigarh
Aass Information Technology: AT Jindal Steel & Power LTD, Raigarh
SUBMITTED BY
PLACE: - RAIGARH
ANAND KUMAR SWAMI
DATE-10.12.2012
REGD.NO -520920298
STUDY CENTER: AIT
CENTER CODE:-02962
1
STUDENT DECLARATION
not submitted for the award of any other degree, diploma, fellowship or any
2
EXAMINER’S CERTIFICATE
AT
Name – Name -
Qualification – Qualification -
3
BONAFIDE CERTIFICATE
FOR JINDAL STEEL & POWER LTD, RAIGARH is the bonafide work of
“ANAND KUMAR SWAMI” Reg. No 520920298 who carried out the project work
under my supervision.
SIGNATURE SIGNATURE
(Faculty) (Incharge)
4
Certified that this project report titled “A STUDY ON MATERIAL
MANAGEMENT” FOR JINDAL STEEL & POWER LTD, RAIGARH
Submitted in partial fulfilment of the requirement for the Degree of bachlore
of science in information technology of Sikkim manipal university of health ,
medical and Tecnological science. Students name ANAND KUMAR SWAMI
Has worked under my supervision and guidance and that No part of this report
has been submitted for thhe award of any other degree, diploma, felloship or
other similar Titles or prizes and that work has not been published in any
journal or magazine.
REGD.NO -520920298
Students name- ANAND KUMAR SWAMI
5
PROJECT EXAMINATION MARKS STATEMENT FOR MBA
Synops Methodo Analy Projec Viva Total Syno Metho Analy Proje Viv Total
is logy sis t internal psis dolog sis ct a internal
+ report evaluat y + repor evaluat
findin ors findin t ors
g marks g marks
5 10 25 25 35 100 5 10 25 25 35 100 20
Marks Marks Marks Marks Mark Marks Mark Marks Marks Mark Mar Marks M
s s s ks
IE1 IE2 IE3 IE4 IE5 IE1+IE EE1 EE2 EE3 EE4 EE5 EE1+E IE
2+IE3+ E2+EE
IE4+IE 3+EE4
5 +EE5
We hereby certify that the project examination has been conducted on the date as indicated above and the
information given above has been verified and found correct.
1. Internal Examiner Signature with Date 2. External Examiner Signature with Date
Name : Name :
6
ACKNOWLEDGEMENT
7
PREFACE
I hope that the report is quite sound to enlighten the Jindal Steel & Power Ltd.,
Raigarh they will definitely improve if they will adopt any of the suggestion.
This will be the best reward for me.
8
TABLE OF CONTENTS
CHAPTER – I Page No
A. Executive Summery 11
B. Research Methodology 12-20
C. Data Collection 21-25
D. Objective Of Study 26
CHAPTER – II
CHAPTER – III
CHAPTER – V
A. Findings 88-89
B. Suggestion/ Recommendation 90-91
C. Conclusion 92-93
D. Bibliography 94
9
CHAPTER – I
10
EXECUTIVE SUMMARY
In any industry various types of equipment are installed and various types of material used
so, we need of their spare. For reducing the production losses & problem solving in
minimum time.
If we found the problem but we don’t have any spare then there is a big time loss &
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RESEARCH METHODOLOGY
INTRODUCTION
RESEARCH PROCESS
RESEARCH DESIGNS
DATA COLLECTION
RESEARCH HYPOTHESIS
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INTRODUCTION
research report, which keeps the management in minimizing the risk & uncertainty
suggested solutions, collecting, organizing & evaluating data, making deduction &
Research seeks answers to certain questions which have not been answered so far
& which depend upon human efforts. It seeks to only those questions of which the answer
Research is devoted to find the condition under which a certain phenomenon occur & the
conditions under which it does not occur in similar circumstances. The term research
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contains of two words Re+ Search. “Re” means again & “Search” means to find out
something new. Thus, research is the process of which a person observes the phenomena
again & again collects the data & based on data he draws conclusion. This is clear by the
following:-
Thus, research means to observes the phenomena again & again from different
dimensions. For example, one finds many theories of learning due to the observation from
different dimensions.
DEFINITION
R.RAOK
2) “Research is and be honest, exhaustive, intelligent searching for facts and their
P.M. COOK
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OBJECTIVES OF RESEARCH METHODOLOGY
scientific procedures. The main aim of research is to find out the truth which is hidden
group.
iii) To determine the frequency with which something occurs or with which it is
TYPES OF RESEARCH
1) DESCRIPTIVE RESEARCH
something occurs or how two variables vary together. It describes the characteristic of
certain groups, e.g. users of a product with different age, sex, education, etc. It
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estimates the proportion of people in a specified population. Descriptive research
includes survey & facts finding enquires of different kinds. The major purpose of
& formal. Two basic types of research design used in descriptive research are.
It can be carried out in the areas such as a survey consumer attitude toward a new
b) Statistical design
of cases.
2) EXPLORATORY RESEARCH
In this research, the major emphasis is on the discovery of ideas & insights. It is
helpful in breaking broad & vague problem into smaller. The exploratory study may
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the problem. Exploratory study is characterized by flexibility & by flexibility &
informality.
a) Literature surveys
One of the most economical & quickest ways to discover hypothesis is the work of
others through a literature search. More useful sources of such information are books,
b) Experience surveys
Individuals with expertise, knowledge, & ideas about research subject may be
questioned. Such people include top executives, sales mangers, other relevant people of
the company in question & companies making similar products salesman, wholesalers,
retailers etc. It reflects an attempt to get all available information from the people who
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The arbitrary selection of a few extreme examples and through analyses of these. In
some instances, detailed & intensive case analysis of a few Selected individual or
3) QUALITATIVE RESEARCH
sciences where the aim is to discover the underlying emotions of human behavior.
4) APPLIED RESEARCH
5) EMPIRICAL RESEARCH
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regard for system & theory. Empirical research is appropriate when program is sought that
methods and research methodology. Research methods may be understood as all those
methods/techniques that are used for conduction of research. All those methods which are
used by the researcher during the course of studying his research problem are termed as
research methods. Since the object of research, particularly the applied research, is to
arrive at a solution for a given problem, the available data and the unknown aspects of the
problem have to be related to each other to make a solution possible. Keeping this in
view, research methods can be put into the following three groups:
i) In the first group we include those methods which are concerned with the
collection of data. These methods will be used where the data already available
ii) The second group consists of those statistical techniques which are used for
iii) The third group consists of those methods which are used to evaluate the accuracy
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Research Methodology is a way to systematically solve the research problem. It
study the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is necessary for the researcher to know not
For e.g. : an architect, who designs a building, has to consciously evaluate the
basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular
size, number and location of doors, windows and ventilators, uses particular materials and
not others and the like. He has to specify very clearly and precisely what decisions he
selects and why he selects them so that they can be evaluated by others also.
Thus, when we talk of research methodology we not only talk of the research
methods but also consider the logic behind the methods we use in the context of our
research study and explain why we are not using others so that research results are capable
1) ANALYSING DATA
After the data have been collected, the researcher turn to the task of analyzing them. The
categories, the application of these categories to raw data through coding, tabulating &
Direct Observation
This method requires that the researcher should personally & directly observe the
conditions & incidents of his field of study. Direct observation is the reliable method for
gathering informative concerning the life, status, conduct, behavior, language, festivals,
customs & traditions etc. In this observation, the observer should be absolutely detached &
Questionnaire
questions concerning different aspects of the subject of study, which is to be filled by the
respondents.
Schedule
These are particular type of questionnaire, which is replied by the researcher himself by
In an interview, the researchers meet people & discuss his social problems, with them &
Published sources
Government publication
The state govt. publishes data for their use that are very much accurate &
reliable.
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Reports of communities & committees
Various communities & committees of enquiry collect data that can be use
Many semi- govt. publications like municipal corporation board etc. publish
data pertaining to birth rate, death rate, literacy rate etc. that can be used for
investigation.
organizations etc.
These institutions also conduct enquiry & publishes their report through
Newspapers & magazines also provides data for investigation, letters to the
editor (of newspaper & magazines both) are published that can be used.
Unpublished sources
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Personals rewards like bibliography, diaries, letters, memories etc. form an
document.
Official records
Other sources
Many other sources like film, radio, television, public speeches etc. are some
As secondary data, the researcher has used magazines & officials records
Of “JSPL”.
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RESEARCH HYPOTHESIS
25
OBJECTIVES OF THE STUDY
26
CHAPTER – II
27
COMPANY PROFILE
Jindal Steel and Power Limited (JSPL) is one of India's major steel producers with a
significant presence in sectors like Mining, Power Generation and Infrastructure.
With an annual turnover of over US$ 3.5 billion, JSPL is a part of the
US$ 17 billion diversified O. P. Jindal Group and is consistently tapping new
opportunities by increasing production capacity, diversifying investments, and leveraging
its core capabilities to venture into new businesses. The company has committed
investments exceeding US$ 30 billion in the future and has several business initiatives
running simultaneously across continents.
Mr. Naveen Jindal, the youngest son of the legendary Shri. O. P. Jindal spearheads JSPL
and its group companies. The company produces economical and efficient steel and power
through backward and forward integration.
From the widest flat products to a whole range of long products, JSPL today sports a
product portfolio that caters to varied needs in the steel market. The company also has the
distinction of producing the world's longest 121 metre rails and large size parallel flange
beams for the first time in India.
JSPL operates the largest coal - based sponge iron plant in the world and has an installed
capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. With a 0.6 MTPA wire rod mill
and a one million tone capacity bar mill at Patratu, Jharkhand, a medium and light
structural mill at Raigarh, Chhattisgarh and a plate mill to produce upto 5.00 metre wide
plates at Angul, Odisha. The company aims for a fast-paced growth so as to contribute
substantially to India's long term prosperity.
An enterprising spirit and the ability to discern future trends have been the driving force
behind the company's remarkable growth story. The company has scaled
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new heights with the combined force of innovation, adaptation of new technologies and
the collective skills of its 15,000 strong, committed workforce.
And the recognition it has received only further lends credence to this. JSPL has recently
been rated as the second highest value creator in the world by Boston Consulting Group;
11th fastest growing company in India by Business World; included in one of the Fab 50
Companies by Forbes Asia, 2009 and 2010; one of the Best Blue Chip companies as well
as the Highest Wealth Creator by the Dalal Street Journal. It has also been ranked fourth as
per Total Income in the Iron and Steel sector by Dun & Bradstreet.
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COMPANY INTODUCTION
JSPL has a state-of-the-art steel making plant at Raigarh, Chhattisgarh which can produce
up to 3 million TPA. Equipped with modern machinery, the plant boasts of world-class
production facilities.
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Modern rail and universal beam mill
Commissioned in 2003, the mill has a wide range of products ranging from long rails up to
121 meter to medium and large size parallel flange beams and columns. The product mix
includes: Track Rails, Crane Rails, Parallel Flange Beams and Columns and Channels.
To enhance its productivity & consistency in quality, the new tandem mill, the first of its
kind in India, was purchased from SMS Meer, Germany, and installed & commissioned in
Nov. 2006, in which its patent X-H technology is adopted for rolling of beams and
columns. Other sections like rails and channels are also rolled via the universal route.
Furthering our endeavor to provide a complete product basket and an enhanced structural
section range to its customer, JSPL is proud to announce the commissioning of its new
state-of-the-art 0.6 MTPA capacity Medium and Light Structural Mill (MLSM). Equipped
with advanced rolling mill technology and equipments from DANIELI, ITALY, it has
facility of rolling Parallel Flange Beams (100-300 mm), Channels (75-300 mm), Angles
(100-200 mm), Flats (50-300 mm) & Rails (30 Ib/y & 24 Kg/m). The mill is ISO 9001 and
14001 certified and also having BIS certifications for most of the sections.
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Source of Raw Materials:
Sinter …. 35 Kg
Coke …. 08 Kg
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Major suppliers
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CHAPTER-III
34
MATERIALS MANAGEMENT OF JSPL
Material Planning:
material, components spares and other items that go into meeting the
General:
In order to ensure that optimum inventory levels are maintained at all times, it
is necessary to plan and regulate the inflow of materials. For this purpose
are to be correctly prepared taking into consideration the stock and dues in and
the deliveries from suppliers are to be so regulated that both excessive holding
D) Coal tubs
F) Power/trailing cables
Material Programming:
(a) Even distribution of procurement work throughout the year for all
concerned.
supply.
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(c) Effective control on material costs.
benefits.
(e) Adequate time for general manages and controlling offers of various
stores.
(f) Even load of receipts spread over the whole year to enable proper
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MATERIAL INDENTING
authority for purchase action, actual purchase action will be taken only on
Types of Indents
38
a particular centrally procured item could not be anticipated and its
CONCLUSION:
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FLOW CHART OF PRODUCTION PROCESS
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OBJECTIVE AND PURCHASE
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The Materials Obtained Shall Be:
(A) Tender
tender committee. It is implied that the materials covered by the tender should
Types of Tender:
1) Single Tender
2) Limited Tender
4) Global Tender
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Tender Box:
Separate tender box are kept for different groups of tenders. They will be
marked x, y, z & are distinguished by different colors. The boxes are kept
locked & all the tenders received are deposited in the appropriate tender boxes
Tender Committee:
procured.
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(B) Registration of Suppliers:
including any additions in the list or removing names of such firms whose
performance are not found up to the mark. Each company will maintain the
suppliers together with the list of items for which they are registered to all
other subsidiary companies and coal India limited for their information and
guidance. This list should be circulated once in a year in the month of April.
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The name of suppliers added/deleted to/from lists should be circulated to all the
subsidiary companies.
MATERIAL BUDGET
expressing the plans, policies and goals of an enterprise for a definite period in
the future.
time”.
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(c)To establish control on the consumption of the materials.
(g) To detect the deviations, trace the defect and apply correctives.
(i) To suggest ways and means for improvement in the next period budget.
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STOCK VERIFICATION
General:
all items of stores held in the stores depots and colliery stores and to compare
the physical balances with stores recorded in the stock cards/ numerical
A) Stores and materials held tally with the descriptions and Specifications.
B) The actual balances agree with the balances recorded in the stock cards /
Ledgers.
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All items of plant & machinery, general and consumable stores, medicines and
medical stores, spare parts for mining and earth moving machinery and drilling
Responsibility:
under instructions from the chief materials manager by the stores personal of
- Duties :
staff is positioned in all the areas and other places for stock verification.
D) To carry out test check in the items verified by the stock verifiers.
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Stock Verifier:
following:
Authorities.
3) To test check the postings on the receipt and Issue side in the bin cards for
The items verified by him to ensure that the receipt and issue side
ISSUE OF MATERIAL
49
The term issue hereby means supply of materials from stores to the various
Generally, tools are issued to workers at the stores counter. Materials such as
cotton waste, emery paper, soap, etc, are collected from the stores either by
2) Requisition of material:
4) Control of waste:
Actual wastage should not exceed the standard Wastage fixed. Wastages
basis of requirements.
vigilance.
b) The depot officer and other personnel will ensure that necessary
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c) Every day, while opening the store, the depot officer will ensure that the
officer.
d) Visitors.
f) General precautions.
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FIRE PREVENTION
fire is of vital importance and must be the concern of all. Most fires can be
a) Smoking
b) Inflammable Materials
d) Stacking
e) Spontaneous Combustion
j) Fire practice
k) Water supply
Conclusion:
All fires have small beginning and can be effectively tackled at this stage.
most important the training in the use of this equipment are equally
important for effective control of fires in their initial stages. The persons
DISPOSAL OF STORES
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Disposal is a function of liquidating unnecessary Holdings in return for a price.
Unwanted Holdings:
d) Scrap
STANDARDISATION
55
Standardization is a process of systematization of stores, based on reduction of
in stock cover.
Aims of Standardization:
Increase productivity
Advantage of Standardization:
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a) Standardizations lead to simplifications.
material.
components.
materials.
CLASSIFICATION OF MATERIAL
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It is essential for the employees of the material department to know about the
important materials being put to use in the organization. The operating Staff,
during the process of storage, since he is responsible for their safe custody ,
meticulous handling and storing without exposing them any risk of damage ,
fire or pilferage.
classifying the material before they are sent for inspection , entered into the
nature use & service , so that easy handling of inventory may be possible.
Several items carried into a store are generally divided into the following
major types.
1) Raw material :
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These are the raw materials and other supplies, parts and Sub-
2) Purchased components :
These materials, other than above, purchased from the market and or
3) Work-in-progress :
These are complete finished products ready for sale. These products
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Have been manufactured or assembled from production and in
process inventories.
5) MRO Inventories :
6) Spares :
These are also called feed stocks .These are important inventories.
The spares are governed by special policies and their problems are of
special nature.
7) Inflammables :
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Those items which are highly susceptible to fire, such as petrol
diesel , kerosene , films , paints , paper etc. fall under this category.
8) Packing materials :
9) Chemical :
Items like carbide, acids, etc can be classified under this category.
CODIFICATION
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Any business organization stores a large number of items, often running into
Several departments use the same item by different names and store them in
different places.
The digits of which indicate the group, the subordinate, the type and the
dimension of the item. Sometimes the location and suppliers name are also
of which indicates the group, the sub-group, the type, and the dimension of the
item.
Advantage Of Codification :
3) Prevents duplication.
INVENTORY CONTROL
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Inventory control is a system which ensures the provision of the required
control are to obtain the maximum inventory turnover with sufficient stock to
“Inventory control is, then, concerned with the control of the quantities or
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For proper inventory control standardizations of material products as well
Just to avoid the chances of over and under investment as well as running
E.O.Q, reordering points, safety level etc. should designed in such a way
that the clerical cost of maintaining these records must be kept at minimum.
7) Experienced personnel:
The last but not the least important requirement of a successful inventory
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1) To minimize the financial investment in inventories:
Material of the required quality at the required time with the minimum
amount of capital.
Situation.
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The maintenance of higher level of finished goods inventory relieves
inventory control.
all items.
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8) To provide scientific base:
INSPECTION OF STORES
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Inspection is an essential tool of quality control of all goods and materials
following:
Shape
Colour
Composition
Strength
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SAP
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SAP
INTRODUCTION
The R/3 System consists of a number of components that are completely
integrated with one another. This integration allows the various departments
and units of an enterprise to share and maintain the same information.
The Materials Management (MM) module is fully integrated with the other
modules of the SAP System. It supports all the phases of materials
management: materials planning and control, purchasing, goods receiving,
inventory management, and invoice verification.
PURPOSE
The blueprint design for the SAP R/3 system for TEGA started on Sept 2004.
The discussions between representatives of TEGA & PwC resulted in
crystallizing the organisation structure and the processes that are to be
configured in the SAP system. The design agreed to is documented here.
The expectation is that this document, after being signed off by the process
owners identified by TEGA, will be taken as the basis for all configurations
required to be done in the realization stage and all development work required
to go live on SAP. This document tries to achieve the following.
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MATERIALS MANAGEMENT ORGANISATION STRUCTURE:
Process Flow
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Determination of Requirements
The purchasing component helps the buyer determine the sources of supply.
User use the determination of the source of supply to create Requests for
quotation (RFQs) and then to enter quotations. User is accessing the existing
Purchase Orders and Conditions in the System.
The purchasing system adopts information from purchase requisition and the
quotation to help to create Purchase Orders. They are also creating manual
purchase order directly for stock, non-stock items, services etc.
The buyer monitor the processing status of the purchase order online at any
time and determine whether goods or an invoice have been received for the
relevant purchase order item.
The Goods receiving requester confirms the receipt of the materials by simply
entering the Purchase Order Number. The system compares the goods receipt
quantity with the purchase order quantity. By specifying permissible
tolerances, buyers can limit over deliveries and under deliveries of ordered
materials.
PURCHASING
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Purchase Requisitions
NORMAL PR –
Every material code in the material master has a specified LEAD TIME and as
and when a requistioner is creating a PR, system will automatically calculate
the delivery date for that material as per the lead time maintained and the
delivery date field will be unchangeable.
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URGENT PR –
When a requistioner require a material in lesser days other then specified the
he/she will use urgent type of PR and specified their required delivery date,
here the delivery date field will be changeable
Work flow will inform each and every end user about their respective
action so that lead time to perform a work will be laser and the efficiency
will improve
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WORK FLOW PROCESS FLOW CHART
PR/PO CREATION BY
END
USER
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Vendor Creation
Every vendor is identified with the code in SAP. It is called Vendor master
record.
Address
Payment terms
Delivery terms
Lead time to supply
GL Account for reconciliation
Each vendor record will be created at company code and purchase organization
level.
Normally vendor master contains the details of both accounts related and also
purely purchasing related, hence it is created in consultation with FI team.
Purchase Order
Purchase order is an agreement between the vendor and a company to supply
the goods at an agreed rate and at an agreed duration of interval.
Goods Receipt
Good Issue
Transfer Posting
Create Contract
Contract is an agreement between the vendor and the company to supply goods
and services as per the agreed terms and condition.
At the time of negotiating, it may not be clear as of how much is required and
when it is required. In such a situation, an open contract can be released on the
vendor.
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Raising of Receipt
PRs by user acknowledgement
by user
Preparation
of STO by Hand over of
purchase documents to
store for GR.
By Marketing
Materials
dispatch to
required
indented
Arrangement Dept.
made by Gr and issue
logistic for posting by
processing of store
delivery
Hand over of
Excise Invoice excise docu.to
to be raised Excise for
by marketing modvate
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Procurement Process (Procure-to-Pay)
28
85
CHANGE / DISPLA
DEPARTMENT ACTION CREATE DELETE Y REPORT
SAP P2P CYCLE
NEED OF MATERIAL
IF STOCK EXIST
USER DEPT STOCK CHECK MMBE MB52
USER DEPT RESERVATION MB21 MB22 MB23 MB25
RESERVATION PRINTOUT ZRES
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Chapter – IV
87
FINDINGS
As the main objective of this project is to know about the material management
I have find out in this project that the effective inventory control minimize the
inventories cost money & holding assets in the form of inventories results in
I have find out that the efficient store keeping minimize cost of production,
The JSPL has used the KODAK system for codification which is very useful
88
In JSPL the material is purchased from the different vendors. The company
give notice & issue the tender & the who supplier fulfill the terms & condition
requirement.
89
SUGGESTION
On the basis of my survey. I discovered few points that if considered will add
up to its profit & goodwill. Following are some suggestion with the best of my
knowledge.
3) The JSPL should adopt the best method of inspection & the inspection
Officer or inspector must be qualified & honest person for maintaining the
quality.
possibility of their being stolen or damaged due to fire or any other cause
is reduced & materials can be easily located & issued as when required by
production department.
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Material Management is a service function & having a great importance to
other section. By material management the company gets many benefits like
etc. and to adopt this material management function the company will achieve
their target.
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CONCLUSION
the cost of materials for any of the industry in the world is approximately 64%
to 65 % if the cost of material is reduce for the industry then any of company
in the world can make unbelievable profit. The main motive of this sentence is
to elaborate the value of material at the industry like JINDAL STEEL &
POWER. Where almost 1 lakh to 1.5 lakh materials are required to run plant,
every day. If these are used properly without miss use and with proper
JINDAL STEEL & POWER is a fully integrated plant, they have good
purchasing facility, they have well store system and also good inventory
Material management increases the profit, since the best quality of product can
be made at lowest possible cost. It makes good buyers & seller by providing
wheel of the industry moving. However lot of crises is arising before the
Many problems are faced by the materials management like material planning.
Design & specification, procurement & obsolescence are the main problem in
material management.
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Bibliography
BOOK REFRENCES:
1) VARMA, M.M.,
2) SHARMA, P.C.,
3) AGARWAL, C.B.,
INTERNET:
a) http://www.jindalsteelpower.com
b) http://en.wikipedia.org
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