1

CHAPTER I

INTRODUCTION

1.1 INTRODUCTION ABOUT MATERIALS MANAGEMENT

Materials management is concerned with management of material resources.

It considers the cost of materials as well as the cost we incur on materials and seeks to reduce
this cost. The objectives of materials management is to contribute to increased profitability by
coordinated achievement of least materials cost. This is done through capital investment,
capacity and personnel, consistent with the appropriate customer service level. Materials
management is an organizational concept in which a single manager has the authority and
responsibility for all activities; principally concerned with the flow of materials into an
organization

Materials management is a tremendous challenge and responsibility for such

an organization where materials form the largest single expenditure item. Analysis shows that
material account for nearly 60 percent of the total expenditure. Thus, the importance of
materials management lies in the fact that any significant contribution made in reducing
materials cost will go a long way in improving the profitability and rate of return on
investment.

Material management is the integrated functioning of an organization dealing with

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

Material control is vitally important to almost every type of business, whether product
or service oriented. Material control touches almost every facets if operations. A proper
balance must be struck to maintain proper materials with the minimum financial impact on the
customer. Material control is the activities that maintain stock keeping items at desired levels.
 2

1.2 INDUSTRY PROFILE

Rev. William Gregor (1761-1817) in the year 1781 discovered ilmenite at konwall in
England and state that this black and contains some important metals. But the fails to discover
which metal it was. After several years, in the year 1875 the Hungarian Scientist Martin Hen
Witch Kalpath found some metal contents in the ilmenite, about which Rev. William Gregor
mentioned. After a series of investigation he found these metal contents as titanium metal
named titanium after titan Greek mythology

WORLD SCENARIO

The use of titanium dioxide is very vast and it has been producing in various parts of
the world in different level, which includes multinational companies as well as small industries.
It is estimated that world’s total installed capacity for titanium dioxide production is of the
order of 4.22 to 4.83 million tonnes per annum.

The present global demand for Tio2 is 50 million tonnes, which is produced by 71
companies around the world. Of this, 29 million tonnes of Tio2 is produced by the chloride
route by 26 companies; the remaining 21 million tonnes are produced by 45 companies through
the sulphate process. Thus it is a clear indication that in the global market, the chloride
technology products are most in demand. To increase its presence in the international market
and counter the import competition, Indian companies are all set to expand its Tio2 production
capacity. These companies have to deal with fierce competition in the international markets as
well as in the domestic market with import duties coming down every year.

The main competitors

 In India
 Kerala Minerals and Metals Ltd, Kollam, Kerala
 Kilburn chemicals Ltd, Tamilnadu
 Colmack chemicals Ltd, West Bengal
 Mandviwala group, Gujarat
 Shivani min-chem industries, Jodhpur, Rajastan
 3

 Morhaba chemicals, Mumbai, Maharashtra

 Goldy minerals, New Delhi
 Outside India
 Shanghai four pole titanium industry co.ltd, china
 Golden bridge industries, china
 Metal Titanium co.ltd, china
 Hobei yonghui chemicals, Australia
 Shilaizhuang, china
 Aotai chemicals co.ltd, china
 Shijazhuang titanic chemicals co.ltd, china
 kronos

Global demand annual growth rate: 2005-2015;

 Asia- Pacific- 4.1%

 Central and south America- 3.2%
 Central and Eastern Europe- 2.4%
 Middle East and Aferica-5.6%
 North America- -0.1%
 Western Europe- -0.4%

INDIAN SENARIO

India has one of the most expensive deposits of a variety of minerals, particularly
Ilmenite and Rutile, which are primary material for the producyion of titanium dioxide
pigment. These deposits which along sea coast between Kayamkulam and Neendakara, a track
generally known as the chavara coast. Other major deposits of ilmenite are located at Ganjam
district of Orissa and along the Konkan coast of Maharashtra.

In India the titanium dioxide industry arrived almost with the dawn of independence.
First plant set up by the erstwhile state of Travancore in 1946 called Travancore titanium
product Ltd (TTP Ltd) situated at Thiruvananthapuram, but started its commercial production
in 1950.
 4

Titanium bearing minerals are found in the coastal sands of the western Kerala coast
and in the eastern region of Tamilnadu and Orissa. The mineral sands on the 22km belt
Southern Kerala is said to be one of the deposits. Beach reserve is also seen in Rathnagiri
(mahi), Ganjam (Orissa) and Srikakolam (AP). The reserve in Kerala and Tamilnadu is
around 25 million tonnes, there is about 20 million tonnes reserve in Orissa, this information
throws light into the possibilities of new manufacturers and competitions in titanium dioxide
pigment industry in the market with the increasing demand for the paints, rubber, plastics and
printing ink etc. the arrival of new manufacturer will be more in the near future. This will
ultimately result in tight competition.

India today possesses the richest technology for the manufacture of titanium dioxide
through the sulphate and chloride route. The two public sector manufacture, TTP Ltd and
Kerala Minerals and Metal Ltd (KMML) have substantial capacity additional programmes.
The capacity of TTP Ltd is expected to touch 30000 tonnes per annum and that that of KMML
is expected to touch 100000 tonnes per, apparenty, with the above capacities both TTP Ltd
and KMML will produced Tio2 beyond the requirement of the country. Keeping this in the
mind, both these unit started tapping the global market. Currently, four producers in India are
engaged in the manufacturing of Tio2 pigment (Rutile and Anatase ) with a total combination
capacity of 44560 metric tonnes per annum. These producers are;

1. Travancore titanium product Ltd (TTP Ltd), Thiruvananthapuram.

2. Kerala Minerals and Metals Ltd (KMML), Kollam.
3. Kilburn chemicals Ltd, Tamilnadu
4. Kolmac chemicals Ltd, Kolkata.
 5

Table 1.1

Major competitor and products grade

Company Grade of products

Travancore Titanium Product Ltd, Anatase grade

Thiruvananthapuram, kerala. Titanium dioxide pigment treated with
Sulphur
The Kerala Minerals and Metals Ltd, Chavara, Rutile grade
Kerala Titanium dioxide produced by Chlorination

In 2008, India has imported 83754 metric tonnes (MT) and exported 12787 MT of titanium
dioxide. And in 2009, it went up to more than 75000 MT in import in just 9 months. While in
2009, export were 3073 MT and that in 2010 were 5636 MT.

On 1 march 2011, India joined the elite club of advanced countries produce titanium
sponge with the capacity of 500 MT at KMML, Chavara near Kollam. Along with the hike in
demand for titanium dioxide, India Anatase and Rutile grade titanium prices firmed up by 4%
from jan 2011 till March.

STATE SCENARIO

The history of minerals separating in kerala started with the discovery of monazite in
the black beach sand at Manavalakurichi in the year 1909 by a German Scientist called
Shomburg. This black sand contains large stock of rate minerals. Kerala is enriched with huge
amount of minerals deposit stretch along the seashore between Neendakara and Kayamkulam.
These mineral deposits are commonly called black sand or dark sand.
 6

1.3 COMPANY PROFILE

Travancore Titanium Products Ltd (TTP Ltd), a public sector under taking under the
govt. of Kerala is the first white pigment producing unit in the whole south east Asia. The
company was incorporated in 18th of December 1946 at Trivandrum, the capital of Kerala,
India on the initiative of sir C.P.Ramaswamyiyer. The company was promoted by his highness
Chithiratirunal Balarama Varma, the maharaja of the erstwhile princely state to Travancore
(now Kerala state in India) with the technical collaboration of British titan products. The royal
vision was to convert the rich mineral sands of the country into wealth that would utilized for
the common good of the people. It is matter of pride that the manufacture of titanium dioxide
was taken up here in Thiruvananthapuram six decades ago by his highness late sri
Chithirathirunal
Balarama Varma who visualized the industrialization of kingdom by unearthing the rich
mineral deposit. Now Travancore titanium products ltd (TTP Ltd) is the leading manufacturer
of Anatase grade titanium dioxide in India with ISO 9001-2008 certification. In 1960
government of Kerala took over the management of the company. Now the administrative
control is vested with the department of industries, government of Kerala.

VISION

“To be the large producer of titanium dioxide products and to be the most preferred suppliers”.

MISSION

“Our missionis to ensure customer satisfaction by continuously improving our product quality
and to earn a reasonable profit”.

QUALITY POLICY

“To achieve customer satisfaction by effectively managing and delivering titanium related
products through continual improvement of the quality management system”.

COMPANY OBJECTIVES

 Customer satisfaction
 7

 Effective management of resources

 Continual improvement

GOVERNMENT BODY

Travancore titanium product ltd is governed by a board of directors consisting of six

members .The period of the board is as per the discretion of the government .The government
of kerala appoints the managing director on deputation for a period of 3 years.

1.3.1 HISTORY

 Travancore Titanium Product Ltd (TTP Ltd) was incorporated on 18th December
1946 in collaboration with British titan products Limited, UK for the manufacture of
Anatase grade titanium dioxide pigment through sulphate route.
 The installed capacity of the plants was 1800 tones per annum.
 Through commercial operations start in 1950, the full production could be
maintained from1-1-1954 consequent on the central government granting tariff
protection and also after a loan of Rs.15 lakh from IFCI.
 The management of the company was vested with a managing agency, viz Indian
Titan products company Pvt Limited as per a managing agency agreement dated 3-
3-1947 on a remuneration of 10% of net profit. This arrangement continued till 15-
8-1960 taken over by the state government.
 The company stated its first expansion programme in 1957 for doubling the annual
production capacity from 1800 to 3600 tones.
 The research and development wing was set up in the company on 1961.
 Industrial license for 50 tones per day was completed in October 1963. However the
production was temporarily discontinued in 1963.
 Government approved the expansion programme for producing 50 tonnes per day in
1967.
 The sole selling agency agreement with TTP and co which has been existence since
1954was terminated on 30-06-1970 from which date TTP took over the sales
directly.
 8

 The next expansion programme to 24500 tonnes per annum including plant and
equipment for the production of coated Rutile grades was completed in 1973. The
installed capacity after the expansion was as follows;

Old plant: 6500 tones

New plant: 18000 tones

Total : 24500 tones

 As the capacity utilization was very low a committee appointed subsequently by the
government viz, Dr. V Cazir committee assessed the achievable capacity of the plant
as 15000 tonnes per annum of Anatase grade pigment.
 The resource mobilization policy committee set up in 1974 by the state planning
board recommended for the formation of a sale selling agency for the state of
products of government companies. Accordingly to Kerala State Industrial Product
Trading Corporation (KSIPTC) was formed in the years 1976.
 KSIPTC was appointed as the sole selling agents with efficient from March 1st 1979.
 Conversion of sulphate acid plant info DCDA technology by FEDO on turkey basis
at a cost of Rs. 193.69 lakhs was inaugurated on 13-09-1980.
 The DCDA project started in 1980 was commissioned in june 1984.
 Installation of a 1000 KVA generator was installed 66 KV substation commissioned.
 Order of constructing a new 800 tonnes per day sulphuric acid plant with the latest
emission control devices awarded to DMCC on 21-10-1993 at a cost of Rs.24.42
crores. The plant was commissioned on 29th March 1995.
 Production of Rutile by in house technology in 2002.
 Direct marketing again by TTP from 2003.
 ISO 9001-2000 company in 2004.
 Antidumping duty imposed on imports from China in 2004.
 Production of pigment by ‘in situ’ method of hydrolysis in 2006.
 New copperas Removal and acid neutralization plant for complete waste
management and environmental protection in 2011.
 9

WORKING HOURS

Three shifts - 6am to 2pm, 2pm to 10pm and 10pm to 6am

General shifts -8am to 4pm

Office time -9am to 5pm

1.3.2 DEPARTMENTATION

1. Production Department
2. Financial Department
3. Personnel Department
4. Engineering Department
5. Project Department
6. Safety Department
7. Medical Department
8. Material Department
9. Legal Department
10. Commercial Department
11. Training Department
12. Marketing Department
13. Research and Development Department
14. Security and vigilance Department

MATERIAL DEPARTMENT

The materials which are purchased by commercial department will have to be stored. It
is the duty of the materials department to receive, store and issue materials. The general stores
department (materials department) is concerned with the planning, directing and keeping a
track of items, its amount, location movement etc. presently there are 7000 to 8000 items.
Main functions of this department are inventory control. Store department or materials
department is headed by Dy. Materials manager.
 10

Chart 1.1

Material department structure

Chief Manager Commercial

Dy. Materials Manager

Asst. Manager/ Section Officer

Store Keeper Store Keeper Store Keeper

ASK ASK ASK ASK ASK ASK

Materials Assistants

FUNCTIONS OF MATERIALS DEPARTMENT

 Receipt of purchased material.

 Inspection of the received materials and receipt voucher is prepared.
 receipt voucher is compared with concerned indent of material.
 After inspection the quantity is recorded in the Bin Card (Kardex) as per the location
and code of each material.
 If there is any defect in materials received. It will be kept in the inspection counter and
inform the suppliers.
 11

 After inspection of materials received, an original copy of receipt cum inspection

report is sent to accounts department and one duplicate copy to purchase department,
one to computer cell and one retained in store department.
 Issue of materials to the concerned department which requires it. This issue is also
recorded in Bin Card and computer and the stock is updated.
 The materials section is also concerned with inventory control. They should inform to
the concerned department when the recorder level is reached.

The order quantity is decided by the general stores on the basis of lead time and
consumption rate. The ABC analysis is carried out as part of inventory control. There are 7500
items stored in the stores. It costs approximately 7.5 crores in inventory. There are ordering
level and ordering quantity for every item. They are fixed according to consumption of last
five years.

In TTP the store stock is managed by using “KARDEX” system ( bin card ) there is a
kardex card for every item. Opening stock, receipts, issue, rejection, closing stock, ordering
level quantity of materials etc are recorded in the Bin Card. Every item has a code that is
present in the card.

Materials are issued according to the requisition and are signed by the concerned
officer. In every stock card the issues of the material are posted and the stock is updated. All
the details in the Kardex card are also recorded in the computer go parallel.

ITEMS IN THE STORE

Production equipments and spares, electrical equipments and spares, instrumental equipments
and spares, civil items, lab chemicals and equipments, mechanical items, hardware items,
workshop items, safety and welfare items and vehicle part are the items kept in the stores
department
 12

Table 1.2

Employee details

Designation No. of employees

Executives 17
Managerial executives 92
Middle grade staffs 187
Workers 433
Total 729

Table 1.3

Information concerning shareholders

Particular No. of equity shares % of shares of

shareholders
1. Govt. of Kerala 1430564 80.94
2. KSIDC 139732 7.90
3. The peerless general finance 192228 10.88
investment co Ltd.
4. Others (public) 4893 0.28
Total 1767417 100
 13

1.4 PRODUCT PROFILE

Travancore Titanium Products Ltd is one of the largest industries in India that produces
Titanium dioxide in addition to Tio2. The company is manufacturing potassium titanates,
sodium titanate, and low phosphorous and special grade Tio2in low quantity. Titanium dioxide
is the whitest of white pigments and has replace other less effective pigment such as zinc
oxide lithopone etc.

Travancore Titanium Products Ltd produces two type of titanium dioxide. Anatase and
Rutile (TTP RD-01). The titanium dioxide is marketed under the trade name of ‘ ANJATUX’
and is available in four grade = ISI, RG,GP and GR.

The major row material used for production of Tio2 is illemenite. Illeminite is the
component of the orides of iron. Titanium and traces of other elements. The separation of Tio2
can done through sulphate route or shloride route.

“Travancore titanium product plant is based on sulphate route”

And chemical stability which lead to considerable economy in usage when compared
to other white pigments. Titanium dioxide is mainly used in the paint industries i.e about 55%,
14% of Tio2 is used for manufacturer of rubber goods and rest is used for the manufacturers of
probably ink textiles papers, cosmetics etc.

Few grades of titanium dioxide are produced namely:

 Anatase ISI grade

 Rutile ISI grade
 Anatase PG
 Rutile PG
 Anatase GP
 Rutile GP
 14

CHAPTER II

LITERATURE REVIEW

INTRODUCTION

A literature review is a text of a scholarly paper, which includes the current knowledge
including substantive findings, as well as theoretical and methodological contributions to a
particular topic. Literature reviews use secondary sources, and do not report new or original
experimental work. Most often associated with academic-oriented literature, such as a thesis,
dissertation or a peer-reviewed journal article, a literature review usually precedes the
methodology and results section although this is not always the case. Literature reviews are
also common in a research proposal or prospectus (the document that is approved before a
student formally begins a dissertation or thesis). Its main goals are to situate the current study
within the body of literature and to provide context for the particular reader. Literature reviews
are a basis for research in nearly every academic field.

A systematic review is a literature review focused on a research question, trying to

identify, appraise, select and synthesize all high quality research evidence and arguments
relevant to that question. A Meta analysis is typically a systematic review using statistical
methods to effectively combine the data used on all selected studies to produce a more reliable
result.

2.1 REVIEW OF LITERATURE

Materials handling makes production flow possible, as it gives dynamism to static
elements such as materials, products, equipments, layout and human resources (Stock &
Lambert, 2001; Chopra & Meindl, 2001). Groover (2001) highlights that despite its im-
portance, materials handling is a topic that frequently is treated superficially by the companies.
However, other authors have perceived its relevance. During the period in which Shingo
(1996) contributed to the development of the Toyota Production System, he developed the
Production Function Mechanism that proposes to explain how the production phenomenon
happens.
 15

Shingo (1996) indicated that, in the West, production was treated as a process of a
sequence of operations. In the Production Function Mechanism, the concepts are directly
related to a production analysis focus. A process analysis consists of an observation of the
production flows that turn raw materials into final products. From this concept, the author
highlights that the main analysis is the one associated with the process, because it follows the
production object. The analysis of the operations comes later because it focuses on production
subjects (operators and machines). When making this distinction, it is possible to perceive the
relevance of materials handling.

Beyond the basic function of movement, it is also relevant to cite the functions of
storage and information transfer, which occurs simultaneously and has both strategic and
operational dimensions. Organizations are relying on information systems using tools like
Electronic Data Interchange (EDI), or similar information technology resources, to gain in
precision and reliability, in the interchange, and availability of information (Lambert & Stock,
2001; Laudon & Laudon, 2006, Milan, Basso & Pretto, 2007).

According to Asef-Vaziri & Laporte (2005) an important proportion of manufacturing

expenses can be attributed to material handling and the most critical material handling
decisions in this area are the arrangement and design of material flow patterns. This idea is
shared by Ioannou (2002), which argues that an important aspect of any production system is
the design of a material handling system (MHS) which integrates the production operations

The relevance also occurs in another context. Ballou (1993) states that the storage and
handling of goods are essential among the set of logistics activities, and their costs can absorb
12% to 40% of its costs. In addition, the MHIA estimates that 20% to 25% of manufacturing
costs are associated to handling (Groover, 2001, p. 281). According to Sule (1994) apud
Sujono & Lashkari (2006), material handling accounts for 30–75% of the total cost of a
product along the production chain, and efficient material handling can be responsible for
reducing the manufacturing system operations cost by 15–30%.

For Bowersox and Closs (1996), the main logistic responsibility in manufacturing is to
formulate a master-program for the timely provision of materials, components and work-in-
process. Stevenson (2001) understands that logistics (including materials and goods flowing in
 16

and out of a production facility as well as its internal handling) has become very important to
an organization to acquire competitive advantages, as the companies struggle to deliver the
right product at the correct place and time. The main challenge is to promote, with low cost, a
flow whose velocity allows the execution of manufacturing process with the expected
satisfaction level.

Materials handling study requires that several elements are considered. The first is a
handling system project, which covers activities of sequencing, velocity, layout and routing
(Groover, 2001). In order to complete the analysis, Groover (2001) recommends analyzing the
material itself (or object) to be transported. Therefore, it suggests the classification of Muther
and Hagan (apud Groover, 2001), which considers: (i) physical state (solid, liquid, gas); (ii)
size (volume, length, width, height); (iii) weight; (iv) condition (hot, cold, dry, dirty, sticky,
adhesive); (v) risk of damage (weak or strong); and (vi) safety hazards (explosive, flammable,
toxic, corrosive, etc.).

Additionally, the issue of equipment and devices must be examined. Dias (1993)
adopts the term “moving” to describe what, in this article, is called management (handling) to
adopt the terminology of Groover (2001). When dealing with equipment, Dias (1993) presents
a broad classification that covers five categories: (i) transporters (belts, chains, rollers, etc.);
(ii) cranes, hoists and lifts; (iii) industrial vehicles (carts, tractors, pallet transporters, forklifts);
(iv) positioning equipment, weighing and control (ramps, transfer equipment); and (v) stents
and support structures (pallets, holders, reels).

According to Chan, Ip & Lau (1999), a key factor in material handling system design
process is the selection and configuration of equipment for material transportation. This is
directly related to this study.

According to Gurgel (1996), the equipment should be selected based on some

preliminary considerations: take into account the utilization of the factory floor and its load
capacity; examine the dimensions of doors and corridors; pay close attention to ceiling height,
identify the environmental conditions and their nature, avoid the use of combustion engines
traction equipments in storage of food products, meet all safety standards to protect humans
and to eliminate the possibility of incurring criminal and civil liabilities arising from accidents,
 17

and examine all kinds of available energy options and their capacity to supply required
movements.

finally, the systems and information technology constitute essential factors for
materials handling management. Stair and Reynolds (2006), Laudon and Laudon (2006) and
O’Brien and Marakas (2007) support the study of fundamentals and general principles of
information systems.

In order to improve the performance of distribution operations and, in this specific

case, the internal material handling process, it is important to consider both human and
technical factors (Chakravorty, 2008). In this sense, this study assesses the internal customers’
perception of a material handling process improvement.

With regard to the attributes to be considered in a material handling system, according

to Kulak (2005), effective use of labor, providing system flexibility, increasing productivity,
decreasing lead times and costs are some of the most important factors influencing selection of
material handling equipment. These factors are directly related to some attributes found in the
present study.

The determination of a material handling system involves both the selection of suitable
material handling equipment and the assignment of material handling operations to each
individual piece of equipment (Sujono & Lashkari, 2006). Hence, according to Sujono &
Lashkari (2006) material handling system selection can be defined as the selection of material
handling equipment to perform material handling operations within a working area
considering all aspects of the products to be handled. In this context it is important to mention
that, in this study, only the selection of the material handling equipment was considered.

2.1.1 THEORETICAL FRAMEWORK

Materials Management is simply the process by which an organization is supplied with

the goods and services that it needs to achieve its objectives of buying, storage and movement
of materials. Materials Management is related to planning, procuring, storing and providing
the appropriate material of right quality, right quantity at right place in right time so as to co-
ordinate and schedule the production activity in an integrative way for an industrial
 18

undertaking. Most industries buy materials, transport them in to the plant, change the materials
in to parts, assemble parts in to finished products, sell and transport the product to the
customer. All these activities of purchase of materials, flow of materials, manufacture them in
to the product, supply and sell the product at the market requires various types of materials to
manage and control their storage, flow and supply at various places. It is only possible by
efficient materials management.
The materials requirements planning, purchasing, inventory planning, storage,
inventory control, materials supply, transportation and materials handling are the activities of
materials management. They will be discussed in details in various chapters to follow.
About 20-25 years ago, there was no cut-throat competition in the market to sell the
various consumer items manufactured by different industrial undertakings and the availability
of materials to manufacture these items was not scarce. Therefore, materials management was
not thought to be so important and its separate identity in the organization was not felt. But
today it has become an important management activity to streamline production.
Actually before the production begins it is necessary to ensure availability of all the
types of materials needed for production and its supply at the various production centers.
Planning, purchasing and scheduling are the main functions of materials management. It aims
at improved productivity. It is used to reduce the cost, which increases profitability and
streamlines the production. Apart from management of material cost and its supply it helps in
its proper utilization, transportation, storage, handling and distribution.
The market research and forecasting both for sales of company’s product and
purchasing of various materials required for producing the product are needed at the planning
stage.
Purchasing, procurement of materials, transportation, storage, inventory control,
quality control and inspection of materials and goods supplied at various production centers
before production are also managed as routine work. Materials handling, packaging,
warehouse planning, accounting, scrap, surplus and obsolete materials disposal, finished goods
safety and care are the activities managed by the materials management department.
Selection of personnel for marketing, purchasing, inventory control, stores
management and materials handling and their training and placement is also to be seen by the
materials management department
 19

This indicates that it is very essential to have a materials management department in

any organization to support the management in the production activities. It also helps in the
marketing, sales promotion and control of all the types of materials for its quantity, quality and
cost.
The International Federation of Purchasing and Materials Management accept the
definition of materials management given below. According to it, materials management is a
total concept having its definite organization to plan and control all types of materials, its
supply, and its flow from raw stage to finished stage so as to deliver the product to customer
as per his requirements in time. This involves materials planning, purchasing, receiving,
storing, inventory control, scheduling, production, physical distribution and marketing. It also
controls the materials handling and its traffic. The materials manager has to manage all these
functions with proper authority and responsibility in the material management department.
The historical background about the materials management is as follows.

Objectives and Functions of Materials Management

The objectives and functions of materials management can be categorized in two ways
as follows:
(I) Primary objectives
(II) Secondary objectives
They are discussed below:
(I) Primary objectives
This can be classified as:
 Efficient materials planning
 Buying or Purchasing
 Procuring and receiving
 Storing and inventory control
 Supply and distribution of materials
 Quality assurance
 Good supplier and customer relationship
 Improved departmental efficiency
 20

(II) Secondary objectives

There can be several secondary objectives of materials management. Some of them are
given below:
 Efficient production scheduling
 To take make or buy decisions
 Prepare specifications and standization of materials
 To assist in product design and development
 Forecasting demand and quantity of materials requirements
 Quality control of materials purchased
 Material handling
 Use of value analysis and value engineering
 Developing skills of workers in materials management
 Smooth flow of materials in and out of the organization
To fulfill all these objectives, it is necessary to establish harmony and good co-
ordination between all the employees of material management department and this department
should have good co-ordination with the other departments of the organization to serve all
production centers.
The basic objectives of management in an organization are:
 Sales increase through sales promotion
 Profit maximization
 Improvement in customer services
 Globalization of its product sales
 Meet the technological changes
 Good employer - employee relationship
 Selection of alternative materials
 Reduction in manufacturing and other cost.
 Social objectives
In order to fulfill these basic objectives of management the objectives of materials
management should be set in such a way that they should totally help to meet ultimate goals.
The functions of materials management are discussed below:
 21

In order to fulfill the objectives of materials management as stated above to meet the
basic objectives and goals, the functions of the materials management are also
categorized as primary and secondary functions.
(I) Primary Functions
To meet the primary objectives, the primary functions of the materials management are
given as follows:
(i) Materials Requirements Planning (MRP)
Planning of materials requirements in manufacturing is a necessary function in any
organization, as inventory of materials involve about 60% of the total investment of the
organization. The profit earned depends on the utilization of these materials and reducing the
inventory of the materials.
The latest technique used is called Just in Time (JIT) is referred practically to no
inventory. However, in the present situations in any of the organization particularly
manufacturing organization, it is not absolutely possible to keep no inventory of materials
required for production. The MRP is a technique used to plan the materials starting from the
raw materials, finished parts, components, sub-assemblies and assemblies as per Bill of
Materials (BOM) to procure or produce them to support a Master Production Schedule (MPS).
It is used on computers productively by any company that uses a MPS to manufacture
products that require assemblies, components and materials to produce the final products. The
MPS is exploded using the bills of materials to determine requirements of lower-level
assemblies, components, finished parts and raw materials. It plans orders to meet these needs.
(ii) Purchasing
All the organizations needs an efficient and economic purchasing and procurement of
its various supplies of materials from the suppliers. The materials management department has
to perform this function of purchasing and procurement of materials very efficiently. Since
50% to 60% of sales turnover is spent on the purchase of various materials, the amount of
profit earned on this sales very much depends how economically the materials are purchased
and utilized in the organization. The profitability depends on the efficiency by which this
particular function of purchasing and procuring the requisite materials at appropriate time will
be done and its availability is assured.
The function of purchasing can be stated as follows:
 22

 The requisition of material is necessary by proper authority to initiate its purchase.

 To select proper supplier for the materials requisitioned, before placing an order.
 To negotiate about the price of the material from the supplier and it will be purchased
at the cheapest price.
 The quality of material must be assured and should not be compromised with the cost
of the material.
 The material should be purchased of right quantity and right quality at proper time at
the cheapest cost.
 To set the proper purchase policy and procedure.
(iii) Inventory Planning and Control
The modern concept of inventory planning is that the materials should be purchased
and brought in the stores just before it enters the production or sold out so that inventory cost
is negligible. The zero inventories are the ideal planning. There are three types of inventories.
(i) Raw materials
(ii) Purchased goods
(iii) Finished parts and components
The inventory control of these various materials lies with the materials management
department, production department and sales department. Inventory at different levels is
necessary to make sure about the availability of all these types of materials and goods and
their proper flow from one facility to another at different levels of production centers in a
manufacturing concern.
The storing of various types of materials and parts as inventory is therefore very
essential before its delivery and use at different production centers. This involves inventory
planning and control of materials in the stores department. Many a time, the supplier may not
be in a position to supply the materials of the ordered quantity at the proper time. To maintain
the continuity in production and line balance in assembly work, the various types of
inventories are necessary to be maintained and kept in the stores.
The raw materials before being supplied to a production process, some of it is sent to
store as inventory and rest is sent to production facility as per its requirements and in the same
way, various parts manufactured and assembled as components and assemblies are also stored
 23

as finished parts inventories at the different places in the stores. The final products before
being supplied to the customers are also stocked as inventory of the final products of the
organization to meet the fluctuating demand and to regularize the supplies in the market. Thus,
the inventory control is a very important function of the materials management department.
The various types of inventory models are developed for the different materials to economise
the purchase, supply, inventory control and production control to analyze and optimize the
costs involved in ordering, set-up and inventory carrying of materials required in the
production.
(iv) Ascertaining and Maintaining the Flow and Supply of Materials
Distribution of materials requisitioned by the various production centers and other
departments must be ascertained and its flow and continuity of supply must be maintained by
the materials management department. Insufficient or zero inventories many times create the
situations of stock-outs and leads to stoppage of production. Failure of materials handling
devices is also responsible for disruption of material supplies. Alternatives or emergency
supply systems can be used for assuring production lines to continue.
Uncertainty in demand and production quantity is the main factor. As the customer
requirements as per his needs and liking, are changing very fast. The management has to
maintain continuity in production to meet this uncertainty in demand and control the situation
by proper flow of materials supply and distribution at various production facilities and other
departments as per changes in production quantity.
(v) Quality Control of Materials
The quality of the product manufactured by the organization depends upon the quality
of the materials used to manufacture that product. It is a very important and necessary function
of materials management to purchase the right quality of materials. The inspection, quality
control, simplification, specification, and standardization are the activities which are to be
followed for the measurement of quality of the materials. The quality assurance is decided by
inspection and checking. The various properties of materials as per their specifications and
standard. The size and dimensional measurements within tolerance limits assures the
interchangeability and reliability of components and parts.
Quality is largely determined by consumer taste and liking. The market is under
buyer’s control. Customer decides the quality of the product. Material quality control aims at
 24

delivering product at higher and higher quality at lower cost. The product will be specified not
only by its dimensional accuracy but its quality standards, durability and dependability, high
performance, reliability and aesthetic value. Each of this factor aids cost to the product. In
order to achieve high quality, the materials input to the product should be of high quality,
which will have higher cost. The performance decides the reliability, which is obtained
through high quality production. The performance is checked by quality inspection and
accuracy. This also aids cost to the product. The quality of the materials also decides the
selection of vendors and the relationship between buyers and suppliers. The specifications,
size and quality of materials must be referred and if possible the standard should be followed
for specifications and sizes. The types of tests required for assuring the quality should be
specified and conducted to establish the standards.
(vi) Departmental Efficiency
The objective of this function is to ensure the efficiency of the system adopted. If the
system and procedure adopted for materials management are inefficient or faulty, none of the
objectives mentioned above can be fulfilled, howsoever the procedure may be good. In order
to maintain the things in proper way as per planning an efficient control is necessary in the
department over each and every process. Management Information System (MIS) and
feedback control at every stage of working must be adopted to control and make the
management and employee work as efficiently as possible to achieve the best results.
(II) Secondary Functions
There can be number of secondary functions. Some of them are discussed below:
(i) Standardization and Simplification
The standards and specifications of various types of materials are fixed by design and
technical department of the organization and they are followed by production department.
Standards define the quality, reduction in sizes and variety, interchangeability of parts and
products. It ensures efficient utilization of materials and reduces wastages. Standard materials
are always available at reasonable cost. It also helps purchasing department in selection of
materials and vendors. If less variety of items purchased and put in the stores the types of
inventories will be reduced and in this way the cost of carrying the inventories in the stores
will be reduced. The objective of this function will be to produce standard product reducing
the overall cost of the product.
 25

(ii) Design and Development of the Product

The variety in product and functionality are the important factors to promote the sales
of a product. The new techniques of designing a product using Computer Aided Design
(CAD) has made possible to develop variety of products at faster rate. The new technological
development in manufacturing using Computer Aided Manufacturing (CAM) can produce
variety of products at much faster rate with all types of flexibility in the manufacturing as
compared to conventional methods.
Materials management department has to act according to use of such variety of
materials to produce variety of parts and ensure the supply of such materials. It should also be
decided how to purchase and produce such variety of products with flexibility and economic
cost.
(iii) Make and Buy Decisions
These types of decisions are the policy decisions of the management. The capacity of
the organization and the various facility developed by the organization to manufacture various
items is the main objective of every organization. This is the important planning activity of
every undertaking. But when a company grows fast, its sales increases at rapid rate then it
becomes an important matter to decide whether the company should buy the parts and
components or increase and establish its facilities to cope up with the increased demand and
sales. This will be greatly concern to materials management department. It will help in
selecting the suppliers to buy the items at reduced cost. The material evaluation, its
availability, alternative materials selection, procurement and inventory control are the
functions influence the make and buy decisions.
The make and buy decisions are largely based on cost economics and cost benefit
analysis made by the organization using the existing production capacity of labor, skill and
machines available with the factory and how best they can be utilized.
(iv) Coding and Classification of Materials
This is an important function of the materials management to help the production and
purchasing department of every organization. It uses its own methods of classification of
materials used to manufacture the product or a company selling various goods. ABC analysis
is one of the simple and standard method used by most of the firms for classification and
storing their variety of materials.
 26

The materials are recognized to purchase and store as an inventory by its codes and
nomenclatures. The various methods of coding are used by every organization to control the
variety of materials and its quantity and price rates.
(v) Forecasting and Planning
Materials requirements planning is based on correct forecasting of sales and demand of
the products in the market. The market fluctuations are to be observed to control production of
the organization. The various methods of forecasting are available and the materials
management department can choose the one which gives the best results to the company.
Forecast of future demand of sales sets the planning of materials supply. Analytical
methods are adopted for systematic forecasting and planning to procure the various materials
required for production.
In case of fluctuating demands, there can be uncertainties in supply as well. This can
be overcome by maintaining the proper quantity in inventory of short supply materials at
proper time. The different techniques available to use correct forecasting have to be utilized by
materials manager to plan the procurement, purchase, supply, managing the outside and inside
transport and storing of the materials to maintain the supply chain lines at every production
facility to meet the changes in production quantity and schedule of production to meet the
fluctuating demand of sales of products manufactured by the organization.
To fulfill the objectives and functions of materials management and control the
activities of this department, they are thoroughly studied and analyzed. The topics for this
study and analysis are given as follows:
(1) Materials management organization
(2) Materials requirements planning
(3) Forecasting
(4) Purchasing
(5) Inventory control
(6) Storing, warehouse planning and control
(7) Value analysis
(8) Materials handling
(9) Just In Time
The main functions of materials management are summarized as follows:
 27

(1) Materials planning as per production requirements for quantity and time
(2) Purchasing the required materials
(3) Make or Buy decisions
(4) Receipts and inspections of materials
(5) Storage, warehousing securities and preservation
(6) Distribution of materials
(7) Transportation should be expedited and must be economically done
(8) Inventory control
(9) Disposal of over stock, surplus, scrap and salvage of materials
(10) Developing new sources of supply at competitive way
(11) Ancillaries industrial development
(12) Indigenous source of supply for foreign materials
(13) Material cost control and cost reduction
(14) Co-ordination and co-operation with the other departments
(15) Research and developments in materials management and their use
Types of Materials
The various types of materials to be managed are:
(i) Purchased materials: They are raw materials, components, spare parts, oils, grease, cotton
waste, consumables and tools.
(ii) Work in process (WIP) materials: These are semi-finished and finished parts and
components lying on the shop floor.
(iii) Finished goods: These are the final products either waiting to be assembled in the
assembly lines or in stores which are stocked for final delivery waiting to sell.
The various costs involved in these materials are basic price, purchasing costs,
inventory carrying cost, transportation cost, materials handling cost, office cost, packing cost,
marketing cost, obsolescence and wastages.
 28

2.2 PROBLEM IDENTIFICATION

In Travancore Titanium Products Limited a sustainable part of current asset is covered

by materials. In today completion it become mandatory to keep large current asset in form of
materials so as to ensure smooth production it is necessary to strike a balance between all the
materials required for the production. In older days they have followed KARDEX system in
the organization for proper material management. Recently they have introduced database
administration system in the organization. So the researcher identified the chance to study
about the effectiveness of recently implemented material management system. So the
researcher chooses an analysis on material management in Travancore Titanium Product ltd at
Thiruvananthapuram.
 29

CHAPTER III

RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

 To study the materials handling practice in Travancore Titanium Products Limited.
 To identify the key factor promoting materials management in the company.
 To study the effectiveness of materials management techniques.
 To identify the safety stock level for various components.
 To identify materials requirement of the company for the next year.

3.2 SCOPE OF THE STUDY

Every organization need material for the smooth running of its activities. It serves as a
link among production processes. The investment in materials constitute the most significant
part of the current assets/ working capital in most of the undertakings. Thus, it is very essential
to have proper control and management of materials. The purpose of material management is
to ensure availability of materials in sufficient quantity as an when required and also to
minimize investment in inventories

3.3 RESEARCH DESIGN

The research design used in this project is Analytical and descriptive in nature the
procedure using, which researcher has to use facts or information already available, and
analyze these to make a critical evaluation of the performance.

3.4 CENSUS METHOD

The survey is conducted through employees of materials department in Travancore

Titanium Product Ltd. 12 members are working in Materials department. The researcher
collects information from all the employees working in materials department.

3.5 PERIOD OF THE STUDY

The period of the study at Trivandrum Titanium Product Ltd, Thiruvananthapuram is

for two months
 30

3.6 RESEARCH INSTRUMENT

The instrument used in collecting the primary data was structured questionnaire

3.7 VARIABLES USED IN THE STUDY

1. Cost

2. Safety in service

3. Service reliability

4. Agility

3.8 DATA COLLECTION METHODS

 Primary data

All material related data are collected through, personal interviews and discussion with
manager, who is in charge of material section and questionnaire

 Secondary data

1. Material related data collected from management report maintained in materials

department.

2. Data collected from company website, books and journals pertaining to the topic.

3.9 TOOLS USED IN THE ANALYSIS

 Percentage analysis

 Weighted average method

 ABC analysis

 FSN analysis

 Inventory turnover ratio

 Safety stock analysis

 Trend analysis
 31

ABC ANALYSIS
ABC analysis is a basic analytical tool which enables management to concentrate its
efforts where results will be greater. The concept applied to inventory is called as ABC
analysis.

Statistics reveal that just a few items account for bulk of the annual consumption of the
materials. These few items are called A class items which hold the key to business. The other
items known as B & C which are numerous in number but their contribution is less significant.
ABC analysis thus tends to segregate the items into three categories A,B & C on the basis of
their values. The categorization is made to pay right attention and control demanded by items.

Table 3.1
Features of ABC analysis
A Class (High Value) B Class (Moderate Value) C Class (Low Value)

1. Tight control on Moderate control Less control

stock levels
Medium Large
2. Low safety stock
3. Ordered frequently Less frequently Bulk ordering

Individual Collective posting

4. Individual posting in
stores Monthly control Quarterly control
5. Weekly control
Moderate efforts Minimum efforts
reports
6. Continuous effort to
reduce lead time
 32

FSN ANALYSIS

All the items in the inventory are not required at the same frequency. Some are required
regularly, some occasionally and some very rarely. FSN analysis classifies items into fast
moving, slow moving, non moving items.

INVENTORY TURNOVER RATIO

Kohler defines inventory turnover as “a ratio which measures the number of times a
firm’s average inventory is sold during a year”.

A higher turnover rate indicates that the material in question is a fast moving one. A
low turnover rate, on the other hand, indicates over-investment and locking up of working
capital on undesirable items.

Inventory turnover ratio may be calculated in different ways by changing the

numerator, but keeping the same denominator. For instance, the numerator may be materials
consumed, cost of goods sold or net sales. Based on any one of these, the ratio differs from
industry to industry.

Stock turnover is measured in terms of the ratio of the value of materials consumed to
the average inventory during the period. the ratio indicates the number of times the average
inventory is consumed and replenished. By diving no. of days in a yeat by turnover ratio, the
number of days for which the average inventory is held, can be ascertained.

Net sales
Inventory turnover ratio =
Avg. inventory

No. of days in a year

Inventory velocity =

Inventory turnover ratio

 33

SAFETY STOCK
The economic order quantity formula is developed based on assumption that the
demand is known and certain and that the lead time is constant and does not vary. In actual
practical situations, there is an uncertainty with respect to the both demand as well as lead
time. The total forecasted demand may be more or less than actual demand and the lead time
may vary from estimated time. In order to minimize the effect of uncertainty due to demand
and the lead time, a firm maintains safety stock, reserve stocks or buffer stocks.

The safety stock is defined as “the additional stock of material to be maintained in

order to meet the unanticipated increase in demand arising out of uncontrollable factors”.

Safety Stock = (Maximum Lead time- Normal Lead time) * Demand

3.10 LIMITATIONS OF THE STUDY

 The entire analysis applies only to Trivandrum Titanium Product Ltd,

Thiruvananthapuram.
 The study takes into account only the quantitative data and the qualitative
aspects were not taken into account.

3.11 CHAPTERISATION
Chapter I deals with introduction, industry profile, company profile and product
profile. Chapter II consist review of literature and problem identification. Chapter III
consist of research methodology which includes objectives of the study, scope of the study,
research design, census method, period of the study, research instrument, variables used in the
study, data collection method, tools for analysis, limitations of the study and chaperization.
Chapter IV describes data analysis and interpretation which include percentage analysis,
weighted average method, ABC analysis, FSN analysis, inventory turnover ratio, trend
analysis and safety stock analysis. Chapter V consists of findings, suggestions and
conclusion.
 34

CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS

Table 4.1

Age wise classification of Respondents

Sl. No Particular No. of respondent Percentage

1 18 to 25 0 0
2 26 to 35 4 34
3 35 to 45 5 41
4 45 above 3 25
Total 12 100
Source: Primary Data
Chart 4.1

Age wise classification of respondents

50
41
40 34
30 25
20
10
0
0
18 to 25 26 to 35 35 to 45 45 above

Inference

Out of the 12 respondents, 41% of the respondents are 35 to 45, 34% of the respondents
are between 26 to 35, 25% of the respondents are above 45 and none of the respondents are
below 18 to 25 years of age.
 35

Table 4.2

Education qualification wise classification of respondents

Sl. No Particular No. of respondent Percentage

1 Illiterate 0 0
2 High school level 4 34
3 HSC 2 16
4 UG and above 6 50
Total 12 100
Source: Primary Data

Chart 4.2

Education qualification wise classification of respondents

60
50
50

40 34
30

20 16

10
0
0
Illiterate High school HSC UG and above
level

Inference

Out of the 12 respondents, 50% of the respondents are UG and above, 34% of the
respondents are High school level, 16% of the respondents are HSC and none of the
respondents are illiterate.
 36

Table 4.3

Marital status wise classification of the respondents

Sl. No Particular No. of respondent Percentage

1 Married 9 75
2 Unmarried 3 25
Total 12 100
Source: Primary Data
Chart 4.3

Marital status wise classification of the respondents

80 75
70
60
50
40
30 25
20
10
0
Married Unmarried

Inference

Out of the12 respondents, 75% of the respondents are married and 25% of the respondents
are unmarried about their marital status.
 37

Table 4.4

Opinion about cost of operation

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 0 0
4 Better 2 17
5 Much better 10 83
Total 12 100
Source: Primary Data
Chart 4.4

Opinion about cost of operation

90 83
80
70
60
50
40
30
20 17

10
0 0 0
0
1 2 3 4 5

Inference

Out of the 12 respondents, 83 percentage of respondent are much better, 17 percentage of

respondent are better and none of respondent are equal, worse and much worse about cost of
operation.

.
 38

Table 4.5

Opinion about safety in service

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 1 9
4 Better 2 18
5 Much better 9 73
Total 12 100
Source: Primary Data

Chart 4.5

Opinion about safety in service

80
73
70

60

50

40

30
18
20
9
10
0 0
0
Much worse Worse Equal Better Much better

Inference

Out of the 12 respondents, 73 percentage of respondent are much better, 18 percentage of

respondent are better, 9 percentage of the respondent are equal and none of respondent are
equal, worse and much worse about safety in service.
 39

Table 4.6

Opinion about safety in handling

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 1 9
4 Better 1 9
5 Much better 10 82
Total 12 100
Source: Primary Data
Chart 4.6

Opinion about safety in handling

90 82
80
70
60
50
40
30
20
9 9
10
0 0
0
Much worse Worse Equal Better Much better

Inference

Out of the 12 respondents, 82 percentage of respondent are much better, 9 percentage of

respondent are better and equal and none of respondent are worse and much worse about
safety in handling.
 40

Table 4.7

Opinion about tooling storage

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 worse 0 0
3 equal 3 25
4 better 3 25
5 Much better 6 50
Total 12 100
Source: Primary Data
Chart 4.7

Opinion about tooling storage

60
50
50

40

30 25 25

20

10
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 50 percentage of respondent are much better, 25 percentage of

respondent are better and equal and none of respondent are equal, worse and much worse
about tooling storage.
 41

Table 4.8

Opinion about reliability of the service

Sl. No Particular No. of respondent Percentage
1 Much worse 0 0
2 worse 0 0
3 equal 6 51
4 Better 2 16
5 Much better 4 33
Total 12 100
Source: Primary Data

Table 4.8

Opinion about reliability of the service

60
51
50

40
33
30

20 16

10
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 51 percentage of respondent are equal, 33 percentage of

respondent are much better, 16 percentage of the respondent are better and none of respondent
are equal, worse and much worse about reliability of the service.
 42

Table 4.9

Opinion about route efficiency

Sl. No Particular No. of respondent Percentage
1 Much worse 0 0
2 Worse 0 0
3 Equal 6 50
4 Better 3 25
5 Much better 3 25
Total 12 100
Source: Primary Data

Chart 4.9

Opinion about route efficiency

60
50
50

40

30 25 25

20

10
0 0
0
Much worse Worse Equal Better Much better

Inference

Out of the 12 respondents, 50 percentage of respondent are equal, 25 percentage of

respondent are much better and better and none of the respondent are worse and much worse
about route efficiency.
 43

Table 4.10

Opinion about operator’s autonomy

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 worse 0 0
3 equal 2 16
4 better 2 16
5 Much better 8 68
Total 12 100
Source: Primary Data
Chart 4.10

Opinion about operator’s autonomy

80
68
70

60

50

40

30

20 16 16

10
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 68 percentage of respondent are much better, 16 percentage of

respondent are equal and better and none of the respondent are worse and much worse about
Operator’s autonomy.
 44

Table 4.11

Opinion about Operator’s performance and availability

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 4 34
4 Better 2 16
5 Much better 6 50
Total 12 100
Source: Primary Data
Chart 4.11

Opinion about Operator’s performance and availability

60
50
50

40
34

30

20 16

10
0 0
0
Much worse Worse Equal better Much better

Inference

Out of the 12 respondents, 50 percentage of respondent are much better, 34 percentage of

respondent are equal, 16 percentage of the respondent are better and none of the respondent is
equal, worse and much worse about Operator’s performance and availability.
 45

Table 4.12

Opinion about agility of operations

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 4 34
4 Better 3 25
5 Much better 5 41
Total 12 100
Source: Primary Data

Chart 4.12

Opinion about agility of operations

45
41
40
34
35
30
25
25
20
15
10
5
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 41 percentage of respondent are much better, 34 percentage of

respondent are equal, 25 percentage of respondent are better and none of the respondent are
worse and much worse about Agility of operations.
 46

Table 4.13

Opinion about the setup time

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 worse 0 0
3 equal 5 41
4 better 3 25
5 Much better 4 34
Total 12 100
Source: Primary Data
Chart 4.13

Opinion about the setup time

45
41
40
34
35
30
25
25
20
15
10
5
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 41 percentage of respondent are equal, 34 percentage of

respondent are much better, 25 percentage of respondent are better and none of the respondent
are worse and much worse about the setup time.
 47

Table 4.14

Opinion about materials handling quickness

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 Worse 0 0
3 Equal 0 0
4 Better 7 58
5 Much better 5 42
Total 12 100
Source: Primary Data
Chart 4.14

Opinion about materials handling quickness

70

60 58

50
42
40

30

20

10
0 0 0
0
Much worse Worse Equal Better Much better

Inference

Out of the 12 respondents, 58 percentage of respondent are better, 42 percentage of

respondent are much better and none of the respondent are equal, worse and much worse about
materials handling quickness.
 48

Table 4.15

Opinion about tooling handling quickness

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 worse 0 0
3 equal 4 33.33
4 better 4 33.33
5 Much better 4 33.33
Total 12 100
Source: Primary Data
Chart 4.15

Opinion about tooling handling quickness

35 33.33 33.33 33.33

30

25

20

15

10

5
0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 33.33 percentage of respondent are better, equal and much
better and none of the respondent are equal, worse and much worse about Tooling handling
quickness.
 49

Table 4.16

Opinion about Situation after the change

Sl. No Particular No. of respondent Percentage

1 Much worse 0 0
2 worse 0 0
3 equal 0 0
4 better 1 8
5 Much better 11 92
Total 12 100
Source: Primary Data

Chart 4.16

Opinion about Situation after the change

100 92
90
80
70
60
50
40
30
20
8
10
0 0 0
0
Much worse worse equal better Much better

Inference

Out of the 12 respondents, 92 percentage of respondent are much better, 8 percentage of

respondent are better and none of the respondents are equal, worse and much worse about
Situation after the change.
 50

Table 4.17

Opinion about materials Management

Sl. No Particular No. of respondent Percentage

1 Very good 9 75
2 Good 2 16
3 average 1 9
4 poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data

Chart 4.17

Opinion about materials Management

80 75
70

60

50

40

30

20 16
9
10
0 0
0
Very good Good average poor Very poor

Inference

Out of the 12 respondents, 75 percentage of respondent are very good, 16 percentage of

respondent are good, 9 percentage of the respondent are average and none of the respondents
are average, poor and very poor about Materials Management.
 51

Table 4.18

Opinion about Inter departmental coordination

Sl. No Particular No. of respondent Percentage

1 Very good 10 82
2 Good 1 9
3 Average 1 9
4 Poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data

Chart 4.18

Opinion about Inter departmental coordination

90
82
80
70
60
50
40
30
20
9 9
10
0 0
0
Very good Good Average Poor Very poor

Inference

Out of the 12 respondents, 82 percentage of respondent are very good, 9 percentage of

respondent are good and average and none of the respondents are average, poor and, very poor
about Inter departmental coordination.
 52

Table 4.19

Opinion about Training in Material Management

Sl. No Particular No. of respondent Percentage

1 Very good 5 42
2 Good 5 42
3 Average 2 16
4 Poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data
Chart 4.19

Opinion about Training in Material Management

45 42 42
40
35
30
25
20
16
15
10
5
0 0
0
Very good Good Average Poor Very poor

Inference

Out of the 12 respondents, 42 percentage of respondent are very good and good, 16
percentage of respondent are average and none of the respondent are very good and very poor
about Training in Material Management.
 53

Table 4.20

Opinion about Research & Development

Sl. No Particular No. of respondent Percentage

1 Very good 4 34
2 Good 3 25
3 Average 5 41
4 poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data

Chart 4.20

Opinion about Research & Development

45
41
40
34
35
30
25
25
20
15
10
5
0 0
0
Very good Good Average poor Very poor

Inference

Out of the 12 respondents, 41 percentage of respondent are average, 34 percentage of

respondent are very good, 25 percentage of the respondent are very good and none of the
respondent are poor and very poor about Research & Development.
 54

Table 4.21

Opinion about Professionalism

Sl. No Particular No. of respondent Percentage

1 Very good 11 91
2 Good 1 9
3 average 0 0
4 poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data
Chart 4.21

Opinion about Professionalism

100
91
90
80
70
60
50
40
30
20
9
10
0 0 0
0
Very good Good average poor Very poor

Inference

Out of the 12 respondents, 91 percentage of respondent are very good, 9 percentage of

respondent are good and none of the respondents are average, poor and very poor about
Professionalism.
 55

Table 4.22

Opinion about Profit variation

Sl. No Particular No. of respondent Percentage

1 Very good 5 42
2 Good 2 16
3 Average 5 42
4 Poor 0 0
5 Very poor 0 0
Total 12 100
Source: Primary Data

Chart 4.22

Opinion about Profit variation

45 42 42
40
35
30
25
20
16
15
10
5
0 0
0
Very good Good Average Poor Very poor

Inference

Out of the 12 respondents, 42 percentage of respondent are very good and average, 16
percentage of respondent are good and none of the respondents are poor and very poor about
Profit variation.
 56

Table 4.23

Opinion about Materials wastage is low then profit

Sl. No Particular No. of respondent Percentage

1 Increased 6 50
2 Decreased 0 0
3 No change 6 50
Total 12 100
Source: Primary Data

Chart 4.23

Opinion about Materials wastage is low then profit

60
50 50
50

40

30

20

10
0
0
increased decreased No change

Inference

Out of the 12 respondents, 50 percentage of respondent are increased, 50 percentage of

respondent are no change and none of the respondents are decreased about Materials wastage
is low then profit.
 57

4.2 WEIGHTED AVERAGE METHOD-1

Table 4.24
The material handling practice
Factor Much Better Equal Worse Much Total Average Rank
better worse
Cost of 10 2 0 0 0 58 3.86 I
operation [50] [8] [0] [0] [0]
Safety in 9 2 1 0 0 56 3.73 III
service [45] [8] [3] [0] [0]
Safety in 10 1 1 0 0 57 3.80 II
handling [50] [4] [3] [0] [0]
Tooling 6 3 3 0 0 51 3.4 VI
storage [30] [12] [12] [0] [0]
Reliability 4 2 6 0 0 46 3.06 XI
of the [20] [8] [18] [0] [0]
service
Route 3 3 6 0 0 45 3 XII
efficiency [15] [12] [18] [0] [0]
Operator’s 8 2 2 0 0 54 3.6 IV
autonomy [40] [8] [6] [0] [0]
Operator’s 6 2 4 0 0 50 3.33 VII
performance [30] [8] [12] [0] [0]
and
availability
Agility of 5 3 4 0 0 49 3.26 VIII
operations [25] [12] [12] [0] [0]
Setup time 4 3 5 0 0 47 3.13 X
[20] [12] [15] [0] [0]

Materials 5 7 0 0 0 53 3.53 V
handling [25] [28] [0] [0] [0]
quickness
Tooling 4 4 4 0 0 48 3.2 IX
handling [20] [16] [12] [0] [0]
quickness
 58

ANALYSIS & INTERPRETATION:

From the above table it is inferred that cost of the operation (I rank) is the factor which
mostly lead to the material handling practice as compared to other factors, like Safety in
handling (II rank), Safety in service (III rank), Operator’s autonomy (IV rank), Materials
handling quickness (V rank), Tooling storage (VI), Operator’s performance and availability
(VII rank), Agility of operations (VIII rank), tooling handling quickness (IX rank), Setup time
(X rank), Reliability of the service(XI rank) and Route efficiency (XII rank)
 59

WEIGHTED AVERAGE METHOD-2

Table 4.25
Key factor promoting material management
Factor Very Good average poor Very total Average Rank
good poor
Materials 9 2 1 0 0 56 3.73 III
management [45] [8] [3] [0] [0]
Inter 10 1 1 0 0 57 3.8 II
departmental [50] [4] [3] [0] [0]
coordination
Training in 5 5 2 0 0 51 3.4 IV
material [25] [20] [6] [0] [0]
management
Research and 4 3 5 0 0 47 3.13 VI
development [20] [12] [15] [0] [0]
professionalism 11 1 0 0 0 59 3.93 I
[55] [4] [0] [0] [0]
Profit variation 5 2 5 0 0 48 3.2 V
[25] [8] [15] [0] [0]

ANALYSIS & INTERPRETATION:

From the above table it is inferred that professionalism (I rank) is the factor which
mostly lead to the key factor promoting materials management as compared to other factors,
like inter departmental coordination (II rank), Materials management (III rank), Training in
material management (IV rank), Profit variation (V rank) and Research and development (VI
rank).
 60

4.3 ABC ANALYSIS

ABC analysis is a basic analytical tool which enables management to concentrate its
efforts where results will be greater. The concept applied to inventory is called as ABC
analysis. ABC analysis tends to segregate the items into three categories A,B & C on the basis
of their values. Items up to 70% consumption value come under A class, next 20% under b
class and the rest under the C class.
Table 4.26
ABC Analysis for all materials

A class B class C class Total

Category No. of % No. of % No. of % Total %

items items items items

Civil items 22 10 24 11 178 79 224 100

Electrical items 105 9 151 13 907 78 1163 100

Hardware items 41 11 30 8 307 81 378 100

Instrument items 18 10 22 12 144 78 184 100

Lab items 31 12 47 18 185 70 263 100

Engg. Spares 557 15 743 20 2416 65 3716 100

Safety items 10 8 11 9 104 83 125 100

Workshop items 50 10 55 11 397 79 502 100

Raw materials 3 10 3 10 26 80 32 100

Acid plant items 51 11 56 12 362 77 469 100

Total 888 1142 5026 7056

 61

Table 4.27

ABC Analysis

Class Total No. items in Classes Percentage

A 888 12

B 1142 16

C 5026 72

Total 7056 100

Chart 4.24

ABC analysis

a
12% b
16%

c
72%

ANALYSIS & INTERPRETATION:

The above table shows the classification of various components as A, B & C classes
using ABC analysis techniques based on unit value. From the classification A classes are those
whose cumulative annual usage percentage up to 70 and constitute 12% of total components.
B classes are those whose cumulative annual usage percentage between 70 and 90 and
constitute 16% of total consumption. The rest 72% items are classified under C class.
 62

4.4 FSN ANALYSIS

All the items in the inventory are not required at the same frequency. Some are
required regularly, some occasionally and some very rarely. FSN classifies items into Fast
moving, Slow moving and Normal moving. Items up to 70% consumption rate come under F
category, next 20% under S category and the rest under N category.

Table 4.28

FSN Analysis for all materials

F category S category N category Total

Category No. of % No. of % No. of % Total %

items items items items

Civil items 6 3 13 6 205 91 224 100

Electrical items 104 9 174 15 885 76 1163 100

Hardware items 19 5 30 8 329 87 378 100

Instrument items 4 2 7 4 173 94 184 100

Lab items 8 3 18 7 237 90 263 100

Engg. Spares 371 10 408 11 2937 79 3716 100

Safety items 4 3 5 4 116 93 125 100

Workshop items 30 6 45 9 427 85 502 100

Raw materials 1 4 2 6 29 90 32 100

Acid plant items 32 7 37 8 400 85 469 100

Total 579 739 5738 7056

 63

Table 4.29

FSN Analysis

Categories Total No. items in Classes Percentage

F 579 8

S 739 10

N 5738 82

Total 7056 100

Chart 4.25

FSN analysis

90 82
80
70
60
50
40
30
20 10
8
10
0
F S N

ANALYSIS & INTERPRETATION:

The above table shows the classification of various components as FSN items using
FSN analysis techniques based on movements. From the classification F items are those which
move fast and constitute 8% of total components. S items are those which moves slowly
constitute 10% of total components and N items are those which are normally move (normal
moving items). According to data analysis, there are 82% of normal-moving items.
 64

4.5 INVENTORIES TURNOVER RATIO

This ratio is also known as stock turnover ratio, it establishes the relationship between
sales or cost of goods sold to average inventory. This ratio reveals the number of times
inventory is turned over during a given accounting period. Higher the ratio, the better it is
because it shows that inventory is rapidly turned over.

The formula for the ratio is Net sales

Avg. Inventory

Table 4.30

Inventories Turnover Ratio & Velocity

Year Net Sales (Rs.) Avg. Inventory (Rs.) Ratio Velocity (in Days)

2010 680199600 378895331 1.795218 203

2011 1289568446 213733723 6.033528 60

2012 1194081312 394641262 3.025739 121

2013 1338824064 220701342 6.066225 60

2014 1009583410 240438230 4.19893 87

 65

Chart 4.26

Inventories Turnover Ratio

Ratio
7
6.033528 6.066225
6
5
4.19893
4
3.025739
3 Ratio
1.795218
2
1
0
2010 2011 2012 2013 2014

Chart 4.27

Velocity

Velocity (in Days)

250
203
200

150
121
87 Velocity (in Days)
100
60 60
50

0
2010 2011 2012 2013 2014
 66

ANALYSIS & INTERPRETATION:

Inventory turnover is the ratio of cost of goods sold by a business to its average
inventory during a given accounting period. Inventory turnover ratio is 1.8 in 2010 and
increase to 6 in 2011. Then it decreases to 3.1 in 2012. In 2013 it increases to 6 again and
reduces to 4.1 in 2014. This means inventory turnover ratio shows a mixed increasing and
decreasing trend.

In the case of velocity the inventory holding days varies from 60-203 days on an
average. It was 203 days in the initial years the company is able to reduce this to 60 days
which shows a good position. This is because of the assured demand of the product and good
control over the materials.
 67

4.6 SAFETY STOCK ANALYSIS

Safety stocks are the minimum additional inventory which serves as a safety margin to
meet an unanticipated increase in usage resulting from an unusually high demand and an
uncontrollable late receipt of incoming inventory.

Among the 10 classification made five of the major A class items where selected from
each classification for safety stock analysis.

Table 4.31

Safety stock analysis

Sl.No Max. lead time Normal lead Demand Safety stock

time
1 0.56 0.33 63 14.49
2 0.67 0.53 21 2.94
3 0.92 0.79 22 2.86
4 0.40 0.26 4 0.56
5 0.48 0.33 4 0.60
6 0.33 0.32 60 0.60
7 0.48 0.37 57 6.27
8 0.48 0.40 25 2
9 0.43 0.32 66 7.26
10 0.38 0.36 30 0.60
11 0.92 0.56 4 1.44
12 0.82 0.62 146 29.2
13 0.44 0.39 44 7.50
14 0.98 0.66 374 119.68
15 0.33 0.27 636 38.16
16 0.42 0.32 36 3.6
17 0.27 0.18 190 17.10
18 0.34 0.24 733 73.30
19 0.34 0.29 60 3
20 0.45 0.27 96 17.28
21 0.36 0.32 89 3.56
22 0.35 0.29 7 0.42
23 0.34 0.23 5 0.55
24 0.27 0.23 5 0.20
25 0.33 0.26 6 0.42
26 0.46 0.32 4 0.56
27 0.35 0.30 100 5
28 0.27 0.26 21 0.21
 68

29 0.35 0.21 8700 1218

30 0.22 0.20 2400 48
31 0.33 0.25 2566 205.28
32 0.29 0.20 345 31.05
33 0.38 0.27 264 29.04
34 0.42 0.32 1264 126.4
35 0.25 0.21 125 5
36 0.32 0.25 756 52.92
37 0.27 0.20 450 24.3
38 0.29 0.21 321 25.68
39 0.33 0.28 861 43.05
40 0.35 0.29 255 15.3
41 0.36 0.20 78 12.48
42 0.28 0.22 245 14.7
43 0.27 0.21 2689 161.34
44 0.41 0.35 156 9.36
45 0.36 0.30 2365 141.9
46 0.37 0.29 758 60.64
47 0.39 0.31 564 45.12
48 0.30 0.21 230 20.7
49 0.27 0.22 1560 78
50 0.29 0.23 123 7.38

ANALYSIS & INTERPRETATION:

In the above table, safety stocks for the various components calculated are shown.
Actual demand is given for each component for a period of 1 year and the lead-time is
calculated at a maximum days & normal days and these were converted into per annum. So,
from calculation of safety stock, we can able to determine how much the company can hold
the inventory in reserve stock per annum.
 69

4.7 TREND ANALYSIS

Regression means dependence and involves estimating the values of a dependent
variable Y, from an independent variable X.

Y =a+bx

Table 4.32
Calculation of inventory trend

YEAR (x) Inventories (Rs.) Y X( X=x-2012) X2 XY (Rs)

2010 378895331 -2 4 -757790662

2011 213733723 -1 1 -213733723

2012 394641262 0 0 0

2013 220701342 1 1 220701342

2014 240438230 2 4 480876460

TOTAL(Σ) 1448409888 0 10 -269946583

The Straight line equations:

To find A and B by solve the following equations

∑y=Na +b∑x ----------------------- (1)

∑xy=a∑x+b∑x² ------------------ (2)

Here n=5
 70

Substitute the entire table Values in equations (1), (2)

∑y=Na +b∑x ----------------------- (1)

1448409888 = 5a+b (0)

5a = 1448409888

a = 289681977.6

∑xy=a∑x+b∑x² ------------------ (2)

-269946583 = a (0) +10b

10b = -269946583

b = -26994658.3

The Straight line is y = 289681977.6 + (-26994658.3) X

To Find Trend Values:

When x=-2, y = 289681977.6 + (-26994658.3) (-2)

y= 343671294.2

When x=-1, y = 289681977.6 + (-26994658.3) (-1)

y= 316676635.9

When x= 0, y = 289681977.6 + (-26994658.3) (0)

y= 289681977.6

When x= 1, y = 289681977.6 + (-26994658.3) (1)

y= 262687319.3
 71

When x= 2, y = 289681977.6 + (-26994658.3) (2)

y= 235692661

When x= 3, y = 289681977.6 + (-26994658.3) (3)

y= 208698002.7

When x= 4, y = 289681977.6 + (-26994658.3) (4)

y= 181703344.4

When x= 5, y = 289681977.6 + (-26994658.3) (5)

y= 154708686.1

When x= 6, y = 289681977.6 + (-26994658.3) (6)

y= 100719369.5

Table 4.33

Inventory of future trend for 2015 - 2018

YEAR TREND

2015 208698002.7

2016 181703344.4

2017 154708686.1

2018 100719369.5
 72

Chart 4.28

Inventory of future trend for 2015 - 2018

250000000
208698002.7
200000000 181703344.4
154708686.1
150000000
YEAR
100719369.5 TREND
100000000

50000000

0 2015 2016 2017 2018

ANALYSIS & INTERPRETATION:

Trend line equation is a tool to make prediction and estimation which are examined in
terms of sales based on the study of six years from 2014 to 2018. This trend line estimate that
the sales are decreasing well negatively.
 73

CHAPTER V

FINDINGS, SUGGESTIONS & CONCLUSION

5.1 FINDINGS
 It is inferred that cost of the operation (I rank) is the factor which mostly lead to the
material handling practice as compared to other factors, like Safety in handling (II
rank), Safety in service (III rank), Operator’s autonomy (IV rank), Materials handling
quickness (V rank), Tooling storage (VI), Operator’s performance and availability (VII
rank), Agility of operations (VIII rank), tooling handling quickness (IX rank), Setup
time (X rank), Reliability of the service(XI rank) and Route efficiency (XII rank)
 From the above table it in inferred that professionalism (I rank) is the factor which
mostly lead to the key factor promoting materials management as compared to other
factors, like inter departmental coordination (II rank), Materials management (III
rank), Training in material management (IV rank), Profit variation (V rank) and
Research and development (VI rank).
 From the classification A classes are those whose cumulative annual usage percentage
up to 70 and constitute 12% of total components. B classes are those whose cumulative
annual usage percentage between 70 and 90 and constitute 16% of total consumption.
The rest 72% items are classified under C class.
 From the classification F items are those which move fast and constitute 8% of total
components. S items are those which moves slowly constitute 10% of total
components and N items are those which are normally move (normal moving items).
According to data analysis, there are 82% of normal-moving items.
 Inventory turnover is the ratio of cost of goods sold by a business to its average
inventory during a given accounting period. Inventory turnover ratio is 1.8 in 2010 and
increase to 6 in 2011. Then it decreases to 3.1 in 2012. In 2013 it increases to 6 again
and reduces to 4.1 in 2014. This means inventory turnover ratio shows a mixed
increasing and decreasing trend.

 In the case of velocity the inventory holding days varies from 60-203 days on an
average. It was 203 days in the initial years the company is able to reduce this to 60
 74

days which shows a good position. This is because of the assured demand of the
product and good control over the materials.
 Safety stocks for the various components calculated are shown. Actual demand is
given for each component for a period of 1 year and the lead-time is calculated at a
maximum days & normal days and these were converted into per annum. So, from
calculation of safety stock, we can able to determine how much the company can hold
the inventory in reserve stock per annum.

 The percentage of inventories decreases from 22.86 to 14.50 in the year 2010-2014. the
inventory for the year 2015 is expected to be 12.59 which is again in the decreasing
trend.
 75

5.2 SUGGESTIONS

 Classes A materials are directly linked to the success of the company. A classes
are important to constantly monitor the demand for it and ensure stock levels
match that demand. In this case it has only 10% constituting A class, which is
not so great. So the control is done through maintaining low safety stock,
continuous check on schedules and ordered frequently in inventories, in order
to avoid over investment of working capital.
 The company must not go to the Non-moving items as far as possible, because
there will be unnecessary blocking of working capital. This would hinder the
other activities of the organization.
 The inventory turnover ratio indicates whether investment in inventory is
within proper limit or not. It also measures how quickly inventory is sold. It
requires maintaining a high turnover ratio than lower ratio. A high ratio implies
that good inventory management and it also reflects efficient business
activities.
 The company should adopt new measures to reduce inventory conversion
periods, otherwise it will lead to increase inventory cost.
 The company is required to maintain safety stock for its components in order to
avoid stock-out conditions and help in continuous production flow.

 The past data shows decrease in inventory, the company is expecting more
inventories for future period i.e. 2015. The management is required to maintain
the increasing inventory trend in the forth coming year.
 76

5.3 CONCLUSION

A better materials management will surely be helpful in solving the problems the
company is facing with respect to materials and will pave way for reducing the huge
investment or blocking of money in materials. From the analysis researcher can conclude that
the Company can maintain safety stock for its components in order to avoid stock-out
conditions & help in continuous production flow. This would reduce the cost and enhance the
profit. Also there should be tight control exercised on stock levels based on ABC analysis &
maintain high percentage in fast moving items in inventories as per on FSN analysis for
efficient running of the inventory. Since the inventory Turnover ratio shows the increasing
trend, there will be more demand for the products in the future periods. If they could properly
implement and follow the norms and techniques of inventory management, they can enhance
the profit with minimum cost.
 77

BIBLIOGRAPHY

 REFERENCES BOOKS

 M Y Khan P K Jain “Financial Management” 4th edition Tata McGraw Hill.

 Martand Telsang “Industrial Engineering & Production Management” 2nd edition
S Chand & Co.
 R. Paneerselvam “Operations Research” 1st edition Prentice hall Of India Private Ltd.
 Rosenfield “Operations Research” 2nd editionsssss D.P. Disposal of Executive
Inventory.

 WEB SITES

 www.travancoretitanium.com
 www.inventorymanagementreview.org/2005/06/safety_stock
 www.inventorymanagementreview.org/inventory_basics/index
 www.inventorymanagementreview.org/justintime/index
 www.inventorymanagementreview.org/inventory_control/index
 78

APPENDIX
QUESTIONNAIRE ON MATERIAL MANAGEMENT

1. Name: ………………………………………………..
2. Gender:
a) Male b)Female
3. Age:
a) 18 to 25 b) 26 to 35 c) 36 to 45 d) 45 above
4. Educational Qualification:
a) Illiterate b)High school level c)HSC d) UG and Above
5. Marital status:
a)Married b) Unmarried
6. The department in which you work: ……………………………………………………….

7. How do you evaluate the cost of operations?

a) much worse b) worse c) equal d) better e) much better

8. How do you rate the safety in service?

a) much worse b) worse c) equal d) better e) much better

9. How do you assess the safety in handling?

a) much worse b) worse c) equal d) better e) much better

10. How would you rate tooling storage?

a) much worse b) worse c) equal d) better e) much better

11. How would you rate the reliability of the service?

a) much worse b) worse c) equal d) better e) much better

12. How do you assess route efficiency?

a) much worse b) worse c) equal d) better e) much better

13. How do you assess the operator’s autonomy?

a) much worse b) worse c) equal d) better e) much better

14. How do you assess the operator’s performance and availability?

 79

a) much worse b) worse c) equal d) better e) much better

15. How do you assess the agility of operations?

a) much worse b) worse c) equal d) better e) much better

16. How do you evaluate the setup time?

a) much worse b) worse c) equal d) better e) much better

17. How do you assess material handling quickness?

a) much worse b) worse c) equal d) better e) much better

18. How would you rate the tooling handling quickness?

a) much worse b) worse c) equal d) better e) much better

19. What is your overall assessment of the situation after the changes?

a) much worse b) worse c) equal d) better e) much better

20. Overall material management of the material department is

a) Very good b) good c) average d) poor e) very poor

21. Inter departmental coordination

a) Very good b) good c) average d) poor e) very poor

22. Training in material management

a) Very good b) good c) average d) poor e) very poor

23. Research and Development in material management

a) Very good b) good c) average d) poor e) very poor

24. Professionalism in material management

a) Very good b) good c) average d) poor e) very poor

25. Profit variation in material management

a) Very good b) good c) average d) poor e) very poor

26. Material wastage is low then profit is

a) Increased b) decreased c) no change

 80

TRAVANCORE TITANIUM PRODUCT LTD,

THIRUVANANTHAPURAM
HIGHLIGHTS

1. Equity – ownership of the company : Public Limited Company

2. Operational Status : Manufacturing and Sales
3. Marketing Status : International
4. Year of Starting : 1946
5. Name of the Products : Anatase and Rutile
6. Recruitment Policy of the company : Through KPSC
7. Induction and Training : Both On the job & Off the job training
8. Promotion : Based on experience and performance
9. Strength of the company : Skilled employees
10. Total Employees of the company : 729