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CERTIFICATE
This is to certify that MAHERA MEHMOOD assigned the Research project on
“FINANCIAL PERFORMANCE OF PARLE-G”. He has submitted this project
report in accordance with the guide lines. To the best of my knowledge this is his
original work and not submitted elsewhere for reward of any other degree or any
diploma.
MR PRATEEK GABA (PROJECT HEAD)
ACKNOWLEDGEMENT
An individual cannot do project of this scale. I take this opportunity to express my
acknowledgement and deep sense of gratitude to the individuals for rendering
valuable assistance and gratitude to me. Firstly, I would like to express my gratitude
to our guide for providing me such an interesting topic for my school project and
their by supporting co-operating with me during my project. Their inputs have played
a vital role in success of this project. Then I express my sincere thanks to my teacher.
I take this opportunity to thank all dealers, customers who spared their precious time
to provide me with valuable inputs for project without which it would have not been
possible. I firmly believe that there is always a scope of improvement. I welcome any
suggestions for further enriching the quality of this project.
MAHERA MEHMOOD MBA IIIRD SEM
MAHIPAL
BBA IV SEM
PREFACEIn order to get the practical insight of various business problems related to the
project. It is necessary to include this project into the management course.
Keeping in view the above requirement the present “FINANCIAL
PERFORMANCE OF PARLE-GMARKET ANALYSIS OF REALTY
ADVISORS COMPANY FOR SELLING HOMES, FLATS & PLOTS” is
conducted to collect the information regarding the market performance of industry.
For conducting the study the following instrument is used.
MAHERA MEHMOOD MBA IIIRD SEM
DECLARATION
This is to certify that this Dissertation entitled “FINANCIAL PERFORMANCE
OF PARLE-GMARKET ANALYSIS OF REALTY ADVISORS COMPANY
FOR SELLING HOMES, FLATS & PLOTS” is based on my own individual and
original research work. My indebtedness to other works and publications has been
duly acknowledged at the relevant places in the Dissertation. Further, it has not been
submitted in part/full for any diploma or degree programme of any university.
MAHERA MEHMOOD MBA IIIRD SEM
CONTENTS
1.OBJECTIVE & SCOPE OF STUDY
2.RESEARCH METHODOLOGY
3.LIMITATION OF STUDY
4.HISTORICAL BACKGROUND
a.INDUSTRY PROFILE
b.COMPANY PROFILE
c.BRAND STRENGTH OF PARLE
5.ABOUT PARLE PRODUCTS PVT. LTD., PANTNAGAR
6.FUNCTION-WISE STUDY OF PLANT
7.INTRODUCTION TO INVENTORYFINANCIAL MANAGEMENT
8.DATA INTERPRETATION-
a.CHARTS / GRAPHS
9.SWOT ANALYSIS
10. CONCLUSION
11. RECOMMENDATION
12. BIBLIOGRAPHY
13. APPENDIX
a.QUESTIONNAIRE
OBJECTIVE & SCOPE OF STUDY
InventoryFinancial is as old as man. Inventories are held to
facilitate product display and services to customers, batching in
production in order to take advantage of longer production runs
and provide flexibility in production schedule.
The objectives of InventoryFinancial management are as follows: -
1. To satisfy the expected level of activities of the firm.
2. To provide a cushion in case the actual level of activity is
different than anticipation.
3. To carry a certain level of inventoryFinancial to meet a
contractual agreement.
4. To obtain a reasonable utilization of people and equipment.
5. To reduce dependencies of one another, and second, to
enable each organization schedule its operations
independently of another.
InventoryFinancial is an idle source having economic values. Optimum
inventoryFinancial means optimum investment. At the same time,
shortage must be avoided at any cost for preventing the stoppage of
production & consequent loss of goodwill & revenue.
Proper inventoryFinancial management sustains a satisfactory level of
supply of goods & services. The scope of inventoryFinancial
management, therefore, is to ensure the supply of right quantity of
materials at the right time with the right quality, at the right prices
from the right sources.
PREFACE
A long time ago, when the British ruled India a small factory was set up in the
suburbs of Mumbai city, to manufacture sweets and toffees. The year was
1929 and the market was dominated by famous international brands that were
imported freely. Despite the odds and unequal competition, this company
called PARLE PRODUCTS, survived and succeeded, by adhering to high quality
and improving from time to time.
A decade later, in 1939, PARLE PRODUCTS began manufacturing biscuits, in
addition to sweets and toffees. Having already established a reputation for
quality, the PARLE brand name grew in strength with this diversification. PARLE
GLUCOSE and PARLE MONACO were the first brands of biscuits to be
introduced, which later went on to become leading names for great taste and
quality.
HOW PARLE FOUGHT TO MAKE BISCUITS AFFORDABLE TO ALL?
Biscuits were very much a luxury food in India, when PARLE began production
in 1939. A part from GLUCOSE AND MONACO biscuits, PARLE did offer wide
variety of brands.
However, during the Second World War. All domestic biscuit production was
diverted to assist the Indian soldiers in India and the Far East. Apart from this,
the shortage of wheat in those days, made PARLE decide to concentrate on the
more popular brands, so that people could enjoy the price benefits.
Thankfully today, there’s no dearth of ingredients and the demand for more
premium brands is on the rise. That’s why; they now have a wide range of
biscuits and mouthwatering confectionaries to offer.
SUMMERY
This project “InventoryFinancial Management” has been undertaken
through the training programme at PARLE BISCUITS PVT. LTD. PANTNAGAR.
This project provides the knowledge and information about how the
inventoryFinancial is managed and also the study of the entire department
working in co-ordination with each other simply to achieve the organization’s
common goal.
Introduction part consists of the Introduction of the company viz.,
Company Profile, Quality Commitment, Vision, Mission Statement, Marketing
Strength, Customer Confidence and The Brand Strength.
Parle Biscuits Ltd. was established in 1939 at Mumbai (the mother unit).
Parle Biscuits Ltd, Pantnagar was established in 4th May, 2004. Its head office is
situated at Parle Products Pvt. Ltd., Ville Parle (east), Mumbai.
RESEARCH METHODOLOGY
Research methodology is a plan & procedure for carrying out the research.
Research methodology is the way of systematically solved the research
problem. This is the methodology adopted, while doing the project: -
TYPE OF RESEARCH DESIGN:
The research design is chosen as operational type.
STEPS IN RESEARCH:
Seven steps are followed in order to conduct the whole project.
SELECTION OF THE TOPIC
THEORY FOR THE TOPIC
SELETED RESEARCH DESIGN
DATA COLLECTED FROM THE COMPANY
ORGANIZING & ANALYZING THE DATA
DATA IS EVALUATED
CONCLUSION
SOURCRS OF DATA COLLECTION:
For collection of data both primary as well as secondary sources are
used.
Primary data:
Data collection design:
Questionnaire: A questionnaire was developed which gave me answers to all
questions (research objective) and it was approved for enquiry of workmen.
Secondary Data:
Secondary data are those that are already been collected by others. These are
available in journals, periodicals details, research publications, official records
etc.
Data presented here have been also taken from the official records of the
company.
DURATION OF THE PROJECT:
The project work has been done from 13th June, 2007 to 13th August, 2007 i.e. 4
weeks.
SAMPLE SIZE:
A sample of 25 workers was taken. They were chosen from different
departments. The past two years a record were taken and on the basis of this
record study was done.
It was found that for production batching system was adopted and process
layout was adopted.
Research Methodology
This chapter aims to understand the research methodology establishing a framework of evaluation
and revaluation of primary and secondary research. The techniques and concepts used during
primary research in order to arrive at findings; which are also dealt with and lead to a logical
deduction towards the analysis and results.
Research methodology has its special significant in solving operational & planning of industries to
gaining new knowledge relative problems.
Research design
The research design applied here was descriptive research & exploratory research design.
In case of descriptive research, we know the problem, we just have to find the solution to the
problem. Generally descriptive research design is applied after exploratory research design.
Methods of Descriptive Research Design
1. Survey
2. Interviews
3. Questionnaires
4. Other observations
DATA COLLECTION
This report is based primary and secondary data. Primary Data is collected by survey and personal
interviews.
Secondary data is collected by the study of various reports. The reports studied under secondary
data.
THE DATA SOURCE The data has been taken from two sources
Primary data source
The primary data source has been collected through questionnaire by
Personally interviewing each respondent on a number of queries structured
in a questionnaire.
Secondary data source
Secondary data was collected from following sources
Prior research reports
Websites
Books
Personal consultation
THE AREA OF WORK
The investigation is around 100km. of Bareilly city. The reason for choosing this design is to get
responses from the industries.
The report is the result of a survey which was undertaken
around 100 Km. from Bareilly city. The objectives of the project have been fulfilled by getting
response from industries about the HR policies through a personal Interview in the form of a
questionnaire.
Another objective of this project has been to getting responses of employees about
their HR policies through questionnaire.
The responses available through the questionnaires are used to evaluate the HR
policies of the industries and to know the employees opinion about their HR policies. Parle is
willingness to analysis the internal and external environment of the industries.
The project also covers an analysis the job satisfaction of the employees.
]
THE SAMPLE SIZE
The sample size consists of 10 units of the industries around the 100 km. from Bareilly. The list of following companies is mention below under:-
1. L.H. Sugar Factories Ltd.
2. DABER INDIA LTD.
3. BRITANNIA
4. Nestlé
5. CENTURY PULA & PAPER
6. Perfetti Van Melle India Pvt. Ltd.
7. B.L. Agro. (P) Ltd.
8. Marcury Delicious Food Products (P) Ltd.
9. Ashok Leyland.
10. Bajaj Auto Ltd.
10 employees of each company were randomly selected and their opinion about their human resources policies was taken up.
LIMITATION OF STUDY
1-This project is based on the method of HR policies and due to constraint of time is not
possible to work on all tools and techniques of HR policies.
2- The data collection is also limited.
3- This project report is based on my own perception and finding so it can not use for
generalizing purpose.
4-Data are extracted from various employees and secondary sources so any error in the
statement will subsequent affect the company R&S process.
Data Analysis
For Employer
Ques: - what is the sector of this industry?1) Private Sector
2) Public Sector
3) Joint Sector
Conclusion:- By this question, I come to know that 60% industries are private sector , 30% in
public sector and 10% in joint sector.
Ques: - What is scale this industry?1) Large Scale
2) Medium Scale
3) Small Scale
Conclusion:- Answering this question is industries having 70% in large scale , 20% in
medium scale and 10% in small
Ques:- What is the number of manpower in your organization?1) Staff
2) Company roll
3) Contract based
4) Casual based
Conclusion:- Answering this question 20% employees are in staff, 35% employees are in
company roll, 25% employees are in contract based and 20% employees are in casual based.
Ques: - What are the methods adopted to improve productivity?1) Productivity improvement
2) Quality improvement
3) TPM
4) Other methods
Conclusion:- Answering this question 30% industries are adopting productivity improvement
method, 30% industries are adopting quality improvement method, 30% industries are adopting
TPM method and 10% industries are adopting others improvement methods.
Ques:- Do you have medical reimbursement scheme?1) Yes
2) No
Conclusion:- Answering this question 90% industries are having medical reimbursement
scheme.
Ques:- Are you providing canteen facilities?1) Yes
2) No
Conclusion:- Answering this question 90% industries are having the canteen facilities.
Ques:- What is the age of retirement of employees of this industry? 1) 56- 58 Years
2) 58–60 Years
3) 60- 62 Years
Conclusion:- Answering this question 20% industries are having employees retirement age 56-
58 years, 50% industries are having employees retirement age 58-60 years and 30% industries are
having employees retirement age 60-62 years.
Ques:- Do you have career plan for employees?1) Yes
2) No
Conclusion:- Answering this question 90% industries are having career plan for their
employees.
Ques:- Do you have services gifts scheme?1) Yes
2) No
Conclusion:- Answering this question 80% industries are having services gifts scheme.
Ques:- Do you have your own transport facilities?1) Yes
2) No
Conclusion:- Answering the question 90% industries are having own transport facilities.
Ques:- How much amount is deducted from transport Facilities?1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Conclusion:- Answering this question 10% industries are deducted 200-400 rs , 20%
industries are having 400-600rs, 40% industries are having 600-800rs and 30% industries are
deducted more than 800 rs.
Ques:- How much conveyance allowance is given to employees? 1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Conclusion:- Answering this question 20% industries are given 200-400rs conveyance
allowance, 30% industries are given 400-600rs, 30% industries are given 600-800rs and 20%
industries are given more than 800rs.
Ques:- Do you have house rent allowance?1) Yes
2) No
Conclusion:- Answering this question 90% industries are having house rent allowance.
Ques:- How much amount is deducted from house rent allowance?1) 200-500 Rs.
2) 500-800 Rs.
3) 800-1100 Rs.
4) More than 1100 Rs.
Conclusion:- Answering this question 20% industries are deducting 200-500rs from house rent
allowance, 30% industries are deducted 500-800rs, 40% industries are deducted 800-1100rs and
10% industries are deducted more than 1100rs .
Ques:- Do you have overtime facilities?1) Yes
2) No
Conclusion:- The result of this question came as 90% industries are having overtime facilities
for their employees.
Ques:- Do you have children’s allowance?1) Yes
2) No
Conclusion:- The result of this question came as 80% industries are having children allowance
for employees.
Ques:- Are you providing Bonus?1) Yes
2) No
Conclusion:- By this question 90% industries are providing bonus for their
employees.
Ques:- What is the method of calculation of Bonus?1) As per HR policy
2) As per Govt. norms
3) Both of these
Conclusion:- By this question 70% industries are adopting both methods i.e. as per HR policy
and as per govt. norms.
‘
Ques:- Do you have incentive schemes?1) Yes
2) No
Conclusion:- Answering this question 90% industries are having incentive schemes.
Ques:- Do you have any Awards?1) incentive
2) Attendance Award
3) Star of the month
4) Quality control Award
5) All of these
Conclusion:- Answering this question 90% industries are having all of these awards relative to
the industries.
For Employees
Ques:- What is your age?1) 20 – 35 Years
2) 35- 50 Years
3) 50 – 65 Years
Conclusion:- Answering this question 40% employees are 20-35 years, 50% employees are 35-
50 years and 10% employees are 50-65 years.
Ques:- Do you agree with your training programs? 1) Yes
2) No
Conclusion:- Answering this question 90% employees are agree with your training programs.
Ques:- Are you satisfied your canteen facilities?1) Yes
2) No
Conclusion:- Answering this question 90% employees are satisfied your canteen facilities.
Ques:- Are you agree with your medical facilities?1) Yes
2) No
Conclusion:- Answering this question 90% employees are agree with your medical facilities.
Ques:- Are you satisfied your health scheme policy?1) Yes
2) No
Conclusion:- Answering this question 70% employees are satisfied with your health
facilities.
Ques:- Are you satisfied your welfare programs?1) Yes
2) No
Conclusion:- Answering this question 80% employees are satisfied with your welfare programs.
Ques:- Are you having house rent allowance?1) Yes
2) No
Conclusion:- Answering this question 80% employees are having house rent allowances.
Ques:- Are you satisfied your Grievance handing procedure?1) Yes
2) No
Conclusion:- Answering this question 90% employees are satisfying with your grievance
handing procedure.
Ques:-Are you agree your promotion policy?1) Yes
2) No
Conclusion:- Answering this question 90% employees are agree with your promotion policy,
LIMITATION OF STUDY
Management of InventoryFinancial has some benefits as well as some
limitations also. Proper inventoryFinancial management is important to
the financial health of the corporation; being out of stock forces
customers to turn to competitors or results in a loss of sales. Excessive
level of inventoryFinancial, however, results in large inventoryFinancial
carrying costs, including the cost of the capital tied up in
inventoryFinancial warehouse fees, insurance etc.
The major problem with managing inventoryFinancial is that the demand
for a corporation’s product is to a degree uncertain and the supply of raw
materials used in its product is also some what uncertain. The
corporation’s own production process is somewhat uncertain due to
possible equipment breakdowns and labour difficulties.
InventoryFinancial is difficult to manage because it carries so many lines
of responsibility. Poor inventoryFinancial management results in an
illiquid corporation.
Funding Agency UN Industrial Organization CFIB Tamilnadu Industries Department DFC Delhi HP Financial Corporation Rabobank - Corporate Solutions
Equipments and Suppliers
Apple International Eng. Pvt Ltd. Dong Yang Food Machinery Co Ltd KDR Industries India Multipack Pvt Ltd. VDI Exports Mechtech Designers & Engineers pvt. Ltd. Sun Beam Machines Biscuit Making Machinery Automatic wafer machinery Shri Dashmesh Castings Cream Biscuit Sandwiching Machines
Manufacturers in India WIBISCO
Britannia Industries
Parle Biscuits
Kabisco biscuit industry
Maxwellinc co.
sumo biscuits
Real Bakers Pvt Ltd.
Cremica foods
Global Companies Griffins Biscuit Company
Kambly, Switzerland
Ceylon Biscuits Ltd
Arnotts Biscuit
INDUSTRY PROFILE
About FBMI (Federation of Biscuit Manufacturers of India)
Established in 1950, from gathering of CEOs of small, medium and large Biscuit
manufacturing organizations in the country’s capital city, the Federation of
Biscuit Manufacturers of India, popularly known as FBMI has come to stay as
the premier forum of the organized segment the biscuit industry in India, by
virtue of its effective servicing and result oriented activities, with the prime
objective of protecting and promoting the interests and development of the
Biscuit industry.
During the five and a half decades of post-independent India, the biscuit
industry in the country has achieved a position of pre-eminence as the third
largest producer of Biscuits in the world, after the USA and China.
BISCUIT INDUSTRY IN INDIA
Biscuit industry in India in the organized sector produces around 60%
of the total production, the balance 40% being contributed by the
unorganized bakeries. The industry consists of two large scale
manufacturers, around 50 medium scale brands and small scale units
ranging up to 2500 units in the country, as at 2000-01. The
unorganized sector is estimated to have approximately 30,000 small &
tiny bakeries across the country.
The annual turnover of the organized sector of the biscuit
manufacturers (as at 2001-02) is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in
2001-02 is estimated at 1.30 million tonnes. The major Brands of
biscuits are - Brittania, Parle Bakeman, Priya Gold,Elite,Cremica,
Dukes, Anupam, Horlicks, Craze, Nezone, besides various
regional/State brands.
Biscuit industry which was till then reserved in the SSI Sector, was
unreserved in 1997-98, in accordance with the Govt Policy, based on
the recommendations of the Abid Hussain Committee.
Though dereservation resulted in a few MNCs, i.e. Sara Lee,
Kellogs SmithKline Beecham, Heinz etc entering the biscuit
industry in India, most of them, with the exception of SmithKline
Beecham (Horlicks Biscuits), have ceased production in the country.
Biscuit is a hygienically packaged nutritious snack food available at
very competitive prices, volumes and different tastes. According to the
NCAER Study, biscuit is predominantly consumed by people from the
lower strata of society, particularly children in both rural and urban
areas with an average monthly income of Rs. 750.00.
Biscuit can he broadly categorized into the following segments (Based
on productions of 2000-01):
Glucose 44%
Marie 13%
Cream 10%
Crackers 13%
Milk 12%
Others 8%.
As regards the consumption pattern is concerned. surveys and
estimates by industry from time to time indicate the average
consumption scenario in the four Zones have been more or less close
to each other, as below:
Northern States: 28%
Southern States: 24%
Western States: 25%
Eastern States: 23%
Biscuit manufacturing as well as other bakery products like Bread etc
are agro based industries, with the major inputs - wheat flour/atta
sugar, milk vanaspati/vegetable oil etc all being agriculture produces.
Biscuit Production
According to the production figures of members available upto the
calendar year 2003, the total production was 625000 tonnes as against
475000 tonnes in the previous year. The production of biscuit for the last
11 years is as under:
1993 - 167750 1994 - 180526
1995 - 202567 1996 - 222371
1997 - 362000 1998 - 400000
1999 - 425000 2000 - 450000
2001 - 465000 2002 - 475000
2003 - 625000
ASSOCIATE BODIES
All India Bread Manufacturers’ Association Suite No. 23, Second FloorIndra Palace, H-Block (Middle Circle) Connaught Place, New Delhi – 110 001
Shri Vinod TiwariPresident
Shri K P MohandasSecretary
Tel : 23327421, 23328784
Telefax : 23310760Email : [email protected] [email protected]
Confederation of Indian Food Trade & IndustryFederation HouseTansen MargNew Delhi – 110 001
Ms. Parna DasguptaDirector
Tel : 23738760-71Fax : 23320714, 23721504
Email : [email protected]
Confederation of Indian Industries23, Institutional Area Lodhi RoadNew Delhi – 110 003
Shri Dilip ChenoyDy. Secretary General
Shri D S ChadhaTechnical Advisor
Tel : 24629994-7Fax : 24626149, 24633168/246
Email : [email protected]
website : www.ciionline.org
PHD Chamber of Commerce and IndustryPHD House, 4/2 Siri Institutional AreaAugust Kranti MargNew Delhi – 110 016
Shri Ravi WigPresident
Dr B P DhakaSecretary General
Tel : 26863801-04Fax : 26863135Email: [email protected]
website : www.phdcci.org
Society of Indian Bakers’F-1, Jyoti Building 16-A/19, Ajmal Khan RoadKarol Bagh, New Delhi – 110 005
Shri Jai Prakash President
Tel : 25728771Fax : 25728771
Wheat Products Promotion SocietyAssocom-India, A-416, Ansal Chamber-I3, Bhikaji Cama PlaceNew Delhi 110 066
Shri R P JainPresident
Tel : 26185872Telefax : 26185878Email : [email protected]
COMPANY PROFILEABOUT THE COMPANY UNIT IN RDR:
BHOOMIPUJAN - 4 TH MAY 2004
MACHINE ERECTION ACTIVITY- 21 ST SEP. 2004
FOUNDED BY - MR. NAROTAM CHAUHAN
PRODUCT PROFILE IN PANTNAGAR PLANT:
PARLE – G BISCUITS
QHOLE COMPANY BRANDS:
PARLE – G
KRACKJACK
MONACO
MARIE CHOICE
HIDE SEEK
FUN CENTER
CHEESLINGS
JEFFS
SIXER
HUMAN RESOURCES:
PEOPLE PERSPECTIVE IS IMPORTANT
EMPLOYEE ORIENTED
CONTINUOUSLY MOTIVATE
TRAIN & DEVELOP THE WORKFORCE
EMPLOYEE PROFILE:
TOTAL NO. OF WORKERS - 900
STAFF MEMBERS - 62
Parle Products Pvt Ltd. Bombay promotes the company, which is Holding
company of the Parle Biscuits Pvt Ltd. The Directors of M/s Parle Products Pvt
Limited are:
BOARD OF DIRECTORS:
MR. ATUL K. SHAH
MR. R. S. NEVATIA
MR. BRAJESH K. TRIPATHI
MR. S. N. VERMA
AUDITORS:
DELLOIT HARSHSKIN & SONS
INTERNAL AUDITORS:
BOHARIWALA & COMPANKER
BANKERS:
UTI
HDFC
BANK OF PUNJAB
MOTHER UNIT:
PARLE PRODUCTS PVT. LTD.
NORTH LEVEL CROSSING
VILE PARLE (East)
MUMBAI
CORPORATE OFFICE:
NIRLON HOUSE
A.B. ROAD
MUMBAI
THE BISCUIT BASKET
Parle-G: The taste, energy and nourishment Parle-G offers, along with
its quality and value-for-money, contribute to making it an unchallenged
success. Apart from being India’s largest selling biscuits, Parle-G is the
winner of 8 Gold and 11 Silver awards at the Monde Selection.
Krackjack: A little sweet-A little salty…. That’s what makes Krackjack
very, very delicious! This delightful biscuit is acclaimed in India and
across the world for its controversial sweet and salty taste. Krackjack has
won 11 Gold, 3 Silver and 1 Bronze award at the “Monde Selection”.
Monaco: This original “O” shaped salted biscuit makes people exclaim
‘Oh, Monaco’. Whether plain or with toppings, Monaco is delicious. An
ideal party time delicacy one can create more scrumptious snacks by
combining Monaco with a choice of toppings. Light, crisp and fresh, it’s
no wonder that Monaco is India’s largest selling salted biscuits. Variants
include onion, methi, zeera and nimkin.
Marie Choice: “Solid Milk, Solid Taste”- this summarizes the qualities of
this delicious biscuit.
Hide & Seek: This cookie biscuit is made up of large quantity of
chocolate chips. Crunch into it or let it melt in the mouth to seek out the
real taste of chocolate.
Fun Center : Parle’s Fun Center range has the highest cream content
amongst biscuits in the category. Best of all, one gets a choice of
delicious, creamy flavors, such as, orange, elaichi (cardamom), and
chocolate cream.
Jeffs: Rectangular shaped, salted biscuit, flavored with cumin seed
(Zeera) fir that delicious, crunchy taste. The high-count of cumin seed
makes Jeffs a more scrumptious savory-an absolute must, for munching
just about anytime.
Sixer: This six-sided, salted delighted is one hard-to-resist savory.
Whatever the occasion, Sixer makes for a great salty snack. Be it a
picnic, a party, or just any snack time, Sixer gives that crunchy, munchy
delicious, salty taste that leaves one wanting for more!
EMERGING TRENDS OF THE BRAND
Since its inception in the 30’s, Parle biscuits have prided itself in offering
quality products that are affordable to the common man. The marketing mix
has evolved with the times………..
THE PRODUCT
Parle biscuits have a range of variants in its product portfolio. The popular
brands Parle- G, Krackjack, Monaco and its variants (Zeera, onion and Methi)
are available in packets of various convenient sizes. New products like hide &
seek are a foray in to the premium segment.
THE PRICING STRATEGY
The biscuit major has not bothered to raise the price of its flagship brand
“Parle-G” foe the past 6-8 years and has always tried to provide its offering at
nearly 33% discount as compared to other competitive brands.
THE PROMOTION POLICY
The consumer is the focus of all activities at Parle. Maximizing value to
consumer and forging enduring customer relationships are the core endeavors
at Parle. Parle-G “My Dream Come True contest “– was one of its biggest
promotional ventures (2.5 crore) which gave contestants a chance to fulfill
their dreams. Discounts, gift offer schemes are other popular promotional
offerings.
THE PLACE
The well-entrenched distribution system (the company covers 12-15 lakh
outlets across the country), with 39 depots at strategy points all over the
country. From the depots, the biscuit are sold to wholesalers and further to
retailers.
THE PACKAGING
Biscuit has under gone a swift transformation. From the earlier waxed-paper
packing, Parle’s BOPP offering is not only stylish and enticing but also
increases the shelf life of the biscuits.
PARLE PRODUCTS PVT. LTD. PANTNAGAR
The operations at Pantnagar unit started in 4th May, 2004 with two plants for
Parle-G. This unit has a capacity to produce 200-250 tones/day. The company
works in co-ordination with Parle Product Limited – Mumbai, Banglore,
Bhuj, Parle Biscuits Ltd. – Neemrana, Bahadurgarh, the forty CMU’s & the
thirty four depots. The factory operates in three shifts of eight hours each. At
present there is only one line operating – Parle-G.
Departments:
Purchase
Finance & Accounts
Quality Assurance
Production
Packaging
Dispatch
Stores
The organization follows a Flat Structure with less hierarical level. The
head of the department reports to the general manager through direct
communication. The working atmosphere is not stressful with enough work-
flexibility given to staff and managers.
The factory also has an Auditorium & Viewing gallery which is used during
the visit of school children and visitors.
FUNCTION-WISE STUDY OF
DEPARTMENTS AT PLANT
PURCHASE DEPARTMENT
Purchase is necessary to fulfill the need for raw material, packing material
and machinery. Raw material purchases are done through a tender system
wherein quotations are received from the suppliers and send for verification
to Bombay where maximum prices are fixed. The hence maintaining a
minimum inventoryFinancial of three days. The purchase order is placed
based on the aspects of
Price
Quality
Service (Delivery)
Orders are given in the following intervals:
Raw Materials 07 days
Packing Material 15 days
Chemicals 15 days
Engineering items 30 days
The MATERIAL INWARD NOTE (M.I.N.) is an essential document in the
purchase of goods and is necessary for payments. For replacement purposes
though there is no need for a new M.I.N.
Packing Materials, which include films for wrappers, inks, chemicals,
corrugated boxes, poly-bags, complaint slips, is ordered according to
production requirements and from reliable suppliers. Lead-time of a month is
given for packing materials.
In case of engineering items, “indents” are prepared according to the
requirements of the engineering department, stock verification takes place,
and if needed purchase orders are placed.
Following procedure is adopted for purchasing the
materials:
Purchase order given to the supplier based on the price and quality offered
by them.
Gate entry to stores
Sample testing (by quality assurance dept.)
Approval and unloading of stock to stores
M-I-N (Material Inward Note) prepared by stores
Crosschecking the bills (the order rate the quantity) with that of the purchase
order and rectification if necessary.
Payment of bills by the accounts dept. using the M-I-N.
FINANCE AND ACCOUNTS DEPARTMENT
Financial activities mainly include the following:
1. PAYMENTS & COLLECTIONS
2. BANKING TRANSACTIONS
3. CASH TRANSACTIONS
1. PAYMENTS:
Payment aspects include payments of bills of the Bahadurgarh factory as well
of the six contract-manufacturing units (CMU) under it. The payment of raw
materials is within a week except for sugar, which is an advance payment.
For engineering items it is done within a month. Payment includes the
following:
A. Payment to suppliers (of raw materials, packing, stores and
spares).
B. Payment of excise advance.
C. Payment of interim advance.
D. Processing charges.
E. Payment of depot and freight expense.
1. A) PAYMENTS TO SUPPLIERS:
Receive the M-I-N from stores.
Verification of the MIN from stores with the purchase order so as to cross check
actual rate with the supplier’s bill. MIN consists of quantity of raw material
accepted and shortage amounts.
Passing of the bills through the PURCHASE VOUCHER and updating of the
following ledgers:
Purchase book.
Supplier Ledger.
General Ledger.
Stock Ledger.
ACCOUNTING ENTRY: Purchases A/c Dr.
Cenvat A/c Dr.
To supplier A/c
PAYMENT TO SUPPLIERS OF CMU’S:
The payment to the suppliers at the CMU’s is done via Bombay, which verifies
the MIN, Bill rates according to the purchase order. The original copy is sent by
courier and also sent by email. The systems dept. downloads the data and
transfers it to the finance dept. for payment. Thereafter the supplier is firstly
credited by passing the PJV (purchase journal voucher) and then debited by
making the bank payment.
B) PAYMENT OF DEPOT AND FREIGHT EXPENSES:
The depot expenses from the Bahadurgarh factory are paid at the end of the
month. Schedules are compared with the actual payments and adjusted if
there are changes in rent etc… to be paid to the depot.
1. Depot Expenses include the following :
Godown rent.
Miscellaneous expenses.
Service charges.
Establishment expenses.
2. Computer Stationery
3. Secondary Freight
4. Incentives
5. Service TAX (10%)
2. BANKING TRANSACTIONS (FOR COLLECTIONS AND PAYMENTS):
These are a routine at Parle Biscuits Pvt. Ltd.
BANKS:
UTI
BANK OF PUNJAB
PUNJAB NATIONAL BANK
The daily balance and recent transactions at these banks are received through
fax, phone, and through the telebanking system. UTI send their bank balances
through telebanking system, whereas the balances at Bank of Punjab are
received by Phone. Daily balances are necessary to prepare the DAILY
LIQUIDITY REPORT.
This report is essential for:
FUND MONITORING
TO AVOID OVERDRAFT PROBLEMS.
Current account facilities all over India are provided by UTI, Bank of Punjab,
Corporation Bank, and standard chartered. Collections from all the other banks
get transferred to Bank of Punjab, which is the main bank of Parle
4.CASH TRANSACTIONS:
These are also essential for the following purposes:
Medical and conveyance reimbursement to staff and workers.
Small purchases of stores.
Fir travel which includes hotel payment, tel. and D.A. – the sum
varies with the category of Staff.
Day to day expenses for stationary and Freight Charges in few
cases.
There is a Mediclaim scheme provided for senior management staff, which can
be availed by them during the year. Daily cash transactions are about Rs.
20000 or so. Monthly wages and salaries, leave travel concessions are given
through the Bank of Punjab using respective accounts.
QUALITY ASSURANCE / CONTROL DEPARTMENT
In concurrence with the trademark of quality that Parle stands for the Quality
Assurance department seeks to control and maintain quality in three stages:
1.QUALITY CHECKING.
2.PROCESS CHECKING.
3.QUALITY PACKING.
1. Quality Checking:
It is necessary to use standard inputs for a quality consumable product such as
Biscuits. All the raw materials used, need to be quality tested and approved
before consumption. Therefore sample testing is done and the test report is
sent to the store mentioning the date after issuing a batch no. the following
tests are done for some of the raw materials :
Wheat Flour:
Spreading factor test.
Moisture %
WAP (water absorbency power)
Gluten %
Sedimentation value
Ghee:
Moisture %.
FFA (free fatty acids).
Peroxide value
Iodine value.
Rancidity Test.
Chemicals:
Purity Tests.
Moisture % .
A testing report register is maintained (authorization by stores and QC dept.)
which contains details of the supplier, the item and the quantity accepted.
2. Process Checking :
Issue of raw material from “stores” to the mixing section
involves:
1. Checking the request of the mixing section.
2. Issuing raw materials as per FIFO SYSTEM (First in First Out).
3. Maintenance of good storage conditions for all raw materials.
4. Checking the stock of raw materials (daily / shift basis).
Weighing of the raw materials:
Weighting of raw materials as per batch requirement (by the mixing
section).
Mixing of the raw materials & checking the quality of batch
prepared:
1. Checking the mixing period.
2. Checking the presence of all raw materials as per formula.
3. Fermentation time and room temp.
Weighing of raw biscuits after molding / cutting :
This is necessary for controlling the final weight of biscuits as per
requirement.
Testing of biscuits after Baking for :
1. Weight, Taste & Colour.
2. Stack weight/length and width.
3. Quality packing:
This section is automated and the following quality measures are undertaken
during packaging.
1. Aesthetic value of the packet (checking the printing shades of
wrapper).
2. Positioning of the packet on the machine and proper sealing of
pakets (lengthwise and crosswise).
3. Mentioning the source of manufacture, Pkd., MRP, bar code,
ingredients, weight and slug length.
4. Checking the no. of biscuits and Moisture % of biscuits (when
packed).
5. Checking presence of broken biscuits during packaging.
6. Proper polypack sealing & Coupons in poly bags with proper
batch and Pkd. no.
7. Proper taping of corrugated boxes (mentioning the batch and
Pkd. no.).
8. Proper palletizing and loading of the boxes.
PRODUCTION DEPARTMENTThe sales team in the market estimates the requirements at the wholesalers
end and reports to the head office at Mumbai. The allotted product
requirements are dispatched to all the production units, where the monthly
production schedule is prepared by the production team.
The factory has Two plant producing Parle-G. The total capacities of the
plants (tone/month) etc.
PARLE-G CONTENTS
Parle-G is the soft dough variety of biscuit. Around 75 batches of Parle-G are
produced per shift.
Standard Requirements Packaging Standards
Moisture % 2-2.5 Net wt. 100
Protein 6.5 No. of Biscuits 16
Energy 450 Kcal. No. of packets in a poly
bag 24
Ca 50 m No. of poly bags in a c-
box
6
Fe 2 m
MANUFACTURING PROCESS: It describes the products manufacturing process. Description of the manufacturing process (Include a diagrammatic scheme):
Sugar is ground
Wheat flour, ground sugar, chemicals are passed through separate sieves and discharged into a high speed mixer other ingredients i.e. vegetable fat,
skimmed milk powder, water,
Chemicals are flavors are separately discharged into the same mixer
The ingredients are mixed in the mixer for a prefixed time to form the dough
The dough is discharged to a hopper & passed through a metal detector & dough is removed if metal piece is found
The dough is transffered to a rotary moulding die to form biscuits in the desired shape. The biscuits are transferred to a wire band on which the biscuits
travel in the baking oven.
Baked biscuits are checked for proper baking and colour.
Baked biscuit are cooled on a conveyor.
Baked biscuits are again passed through a metal detector and biscuits are automatically removed if a metal piece is present
The baked biscuits are checked for dimensions and weight before wrapping.
The biscuits are wrapped on an automatic wrapping m/c.
Wrapped biscuits are first packed in poly bags and then in corrugated boxes.
PROCESS FLOW DIAGRAM FOR BISCUITS:
Receiving of Raw Materials
Insepction and testing
Storage of raw materials in different stores as per required storage conditions
Preparation of various raw materials for Batch preparation and weighing
Wheat Flour sieving Sugar grinding sieving of chemicals
Other additives
Mixing of all ingredients
Dough transfer to hopper and then to conveyor belt
Metal detector
Moulding
Baking
Final inspection
Cooling
Automatic Packing
Storage
Dispatch
INVENTORY FINANCIAL MANAGEMENT
WHAT IS INVENTORYFINANCIAL?An inventoryFinancial is a stock or store of goods. The term inventoryFinancial
includes the following categories of items:-
1. Production Inventories: - Raw Materials, parts and components which
enter the firm’s product in the production process.
2. MRO Inventories: - Maintenance, Repair and Operating supplies which
are consumed in the production process, but, which do not become part
of the product.
3. In-Process Inventories: - Semi-finished products found at various
stages in the production operation.
4. Finished Goods Inventories: - Completed products ready for
shipment,
INVENTORYFINANCIAL COSTS:
Inventories cost money. The cost factor must be considered while taking any
decision regarding inventories. InventoryFinancial cost includes ordering
cost, carrying cost, out of stock or storage cost and capacity cost. The
elements of each of the cost are the following:
1. Ordering Costs
A. Cost of placing an order with a vendor of materials:
a) Preparing a purchase order
b) Processing payments
c) Receiving and inspecting the material.
B. Ordering from the plant:
a) Machine set-up.
b) Start-up scrap generated from getting a production run
started.
2. Carrying Costs
A. Costs connected directly with materials:
a) Obsolescence.
b) Deterioration.
c) Pilferage.
B. Financial Costs:
a) Taxes.
b) Insurance.
c) Storage.
d) Interest.
3. Out-of –Stock Costs
A. Back ordering
B. Lost sales
4. Capacity Costs
A. Overtime payments when capacity is too much.
B. Lay-offs and idle time when capacity is too large.
INVENTORYFINANCIAL MANAGEMENT &
CONTROL:Because of high costs involved in inventories, their proper management and
control assume considerable importance. InventoryFinancial management
involves the “development and administration of policies, systems and
procedure, which will minimize total costs relative to inventoryFinancial
decisions and related functions such as customer service requirements,
production scheduling, purchasing and traffic.”
On the other hand, InventoryFinancial control is defined in a narrower
sense that inventoryFinancial management and pertains primarily to the
administration of established policies, systems and procedures. For Example,
the actual steps taken to maintain the stock levels or stock records refer to
inventoryFinancial control.
Benefits of InventoryFinancial Management &
Control:
The benefits of InventoryFinancial Management & Control are as follows:
InventoryFinancial control ensures an adequate supply of materials and
stores, minimizes stock of inputs and storage and avoids costly
interruptions in operations.
It keeps down investment in inventories, inventoryFinancial carrying
costs and obsolescence losses up to the minimum.
It facilitates purchasing economies through the measurement of
requirement basis of recorded experience.
It permits a better utilization of available stocks by facilitating inter-
department within a company.
It serves as a means for the location and disposition of inactive and
obsolescence stores.
Perpetual inventoryFinancial values provide a consistent and reliable
basis for preparing statements.
Process of InventoryFinancial Management &
Control:
InventoryFinancial Management & Control refers to the planning for quantities
of materials at all stages in the production cycle and evolving techniques
which ensure the availability of planned inventories. Four steps are involved in
the process:
A. Determination of optimum inventoryFinancial levels and
procedures of their records and adjustments.
B. Determination of the degree of control that is required for best
results.
C. Planning and design of the inventoryFinancial control systems and
D. Planning of the inventoryFinancial control organization.
Inventory Financial Control Techniques
InventoryFinancial control techniques are employed by the inventoryFinancial
control organizational framework of one of the basic inventoryFinancial
models, viz., fixed order quantity, re-order period system. InventoryFinancial
control techniques represent the operational framework to management and
help realize the objectives of inventoryFinancial management and control.
Several techniques of inventoryFinancial control are in use and it
depends on the policy of the firm to adopt any of the techniques. The
techniques most commonly used are the following:
Always better control (ABC) classification.
High, medium and low (HML) classification.
Vital, essential and desirable (VED) classification.
Scarce, difficult and easy to obtain (SDE).
Fast moving, slow moving and non-moving (FSN).
Economic Order Quantity (EOQ).
Two bin system.
Material Requirement Planning.
Just-in-time.
Max-Minimum System.
ABC Analysis:
One of the widely used techniques for control of inventories is the ABC
(Always Better control) analysis. The objective of ABC control is to vary the
expenses associated with the maintaining appropriate control according to
the potential savings associated with a proper control. For example, an item
having an inventoryFinancial cost of Rs. 1,00,000/- has a much greater
potential for saving expenses related to maintaining inventories on an item
with a cost of Rs. 100/-. The ABC approach is a means of categorizing
inventoryFinancial items into three classes “A”, “B” and “C”, according to
the potential amount to be controlled.
Once the inventoryFinancial is classified, we have a firm base for
deciding where we will put our control. Logically, we expect to maintain
strong controls over the “A”, items taking whatever social actions needed to
maintain availability of these items and hold stocks at the lowest visible
levels consistent with meeting demands. With the “C” group, we may
maintain somewhat higher safety stocks, order more months of supply,
expect lower levels of customer service, or all the three. Due to this
selective approach, the ABC analysis is often called the Selective
InventoryFinancial control Method (SIM).
The inspiration behind the ABC analysis has been drawn from Vilfredo
Pareto, an Italian economist and sociologist (1842-1923). Pareto’s principle
was brought to the attention of people concerned with inventoryFinancial
management by H. Ford Dickie, who applied Pareto’s law to
inventoryFinancial and developed the general concept of ABC analysis.
The following procedure is suggested for developing an ABC analysis:
1. List each item carried in inventoryFinancial by number or some other
designation.
2. Determine the annual volume of usage and rupee value of each item.
3. Multiply each item’s annual volume of usage by its rupee value.
4. Compute each item’s percentage of the total inventoryFinancial in terms
of annual usage in rupees.
5. Select the top 10 % of all items which have the highest rupee
percentages and classify them as “A” items.
6. Select the top 20 % of all items with the next highest rupee percentages
and classify them as “B” items.
7. Rest of the items is classified as “C” items.
The following Table illustrates the above procedure:
Example of ABC InventoryFinancial Analysis
InventoryFinancial Items
Annual use in Rs. % of total inventoryFinancial
usage in Rs.101
B102103104105
A106107108109
A110111
3000400002000100005000
400000700090008000
3000001000
0.3%4.0%B0.2%1.0%.05%
40.0%A0.7%0.9%0.8%
30.0%A0.1%
B112113
B114B115
50000150002000090000
5.0%B1.5%
2.0%B9.0%B
TOTAL 20 ITEMS Rs. 10,00,000 100.0%
Items “A” Items “B” Items “C”10611010% of 20 items10% of Rs. 1,00,000
102112114115
20% of 20 items20% of Rs. 1,00,000
All 9 remaining items.70% of 20 items
70% of Rs. 1,00,000
Economic Order Quantity Technique:
Economic Order Quantity (EOQ) is the technique which solves the problem
related to the size of the order. EOQ or Opt. Q (Optimum Quantity) is the order
size at which the comprising ordering costs plus carrying costs is the least.
Ordering Costs are the costs of placing a separate order multiplied by the
number of separate orders placed in the period.
Ordering Cost = (D/Q)S
Carrying Costs can be calculated based on the assumption that annual cost
of carrying a particular stock item on average, half the stock is on hand all the
time in addition to the safety or buffer stock.
Carrying Cost = (Q/2)H
Where,
Q = Order Quantity
D = Demand
S = Ordering Cost
H = Holding Cost
The following figure explains it graphically:
Graphing the two costs, viz., Holding Costs and Ordering Costs show exactly,
where the total cost curve is at its lowest point. An examination of the two
curves reveals that the carrying cost curve is linear i.e., the more the
inventoryFinancial held in any period, greater will be the cost of holding it. On
the other hand, Ordering cost curve is different. Ordering in small quantities
means more acquisition and higher ordering costs. The ordering costs
decrease with increase in the order size.
EOQ can be calculated with the help of a mathematical formula. Following
assumptions are implied in the calculation: -
1. Demand for the product is constant and uniform throughout the period.
2. Lead time (time from ordering to receipt) is constant.
3. Price per unit of product is constant.
4. InventoryFinancial holding cost is based on average inventoryFinancial.
5. Order costs are constant, and
6. All demands for the product will be satisfied.
EOQ = 2DS/H
Where,
D = Annual Demand
S = Cost of placing an order
H = Holding Cost per unit
EOQ Technique is highly useful in as much as it answers the question i.e., how
much to order and in so doing, establishes the frequency with which, orders
are applicable both to single items and to any group of stock items with simple
procurement costs. Its use causes the sum of the two costs to be lower than
the system of replenishment.
Just-in-Time Technique:
Just-in-Time (JIT) technique is highly used in recent management circles these
days. The concept is alternatively known as ZIPS (Zero InventoryFinancial
Production System), MAN (Materials As Needed), NOT (Nick Of Time) or ZIN
(Zero INventoryFinancial).
As a concept, JIT means that virtually no inventories are held at any stage of
production and that the exact number of units is brought to each successive
stages of production at the right time.
The JIT concept originated from the Motomachi plant of Toyota in Japan, where
system has been perfected and results achieved. The plant has a long line of
trucks outside with full loads of automotive parts and components for the
assembly line. As one truck comes out at one end of the plant, another gets
inside. There is no warehouse for the parts. Upholstered seats, for example,
are fed to the production line directly to the back of the truck.
Xerox, Maruti Udyog Ltd., and FSL (Food Specialities Ltd.) are the example of
such companies that are using JIT concept to catch up with the Japanese
standards of efficiency.
COMPONENTS OF THE INVENTORY FINANCIAL CONTROL SYSTEM
Adequate records are a must in any control system, but too many records can
have adjustor’s effect. No. one inventoryFinancial control system will work in
all plants. Each system must be developed to fill specific requirements.
Practically every system, however, makes use of certain forms that have
proved to be essential to good inventoryFinancial control. These include (1)
stores requisitions, (2) receiving reports, (3) balance-of-stores records, and (4)
material requisition forms.
Stores requisitions: The stores requisitions are a request from stores or
inventoryFinancial control to purchasing, giving the purchasing department
authority to buy the quantity and type of material specified. Stores requisitions
are used to obtain initial supplies and to replenish stocks.
Receiving reports: The form is usually executed in triplicate, with the original
going to purchase, one copy retained in stores and one sent to traffic or
receiving for use in expediting the order.
Balance-of-stores form: This is the most important inventoryFinancial
control record. Also called the perpetual inventoryFinancial card or a stock
record card, the balance of stores from is maintained for each
inventoryFinancial account. It usually contains information on materials
specification and description, quantity in hand, ordered, and in process and its
total value; economic order quantity; unit price; usage rate; recorder point;
processment interval and the minimum and maximum inventoryFinancial level.
If properly maintained, the balance of stores forms permits easy checking of
stock levels at all times, regardless of where the material is physically stored.
Material requisition form: This form authorises the storekeeper to issue a
specified quantity of a certain item for use in manufacture of specific order.
The material requisitions from may be initiated by production control or a
foreman. One copy of the form is forwarded to inventoryFinancial control for
entry on the balance of stores card and one copy is sent to accounting as the
basis for charges against the specified production order or the using
department. Another copy of the for usually accompanies the material as
identification and to indicate the destination of the stock.
Biscuits manufacturing requires a process layout and in this process
lay out batching system is adopted. Standard raw material in a batch
is as follows.
BATCHING SYSTEM
INGREDIENTS UNITMOISTURE
% INPUT QUANTITY
WHEAT FLOUR Kg. 12.5 100SUGAR (SYRUP) Kg. 0.1 42.13VANASPATI Kg. NIL 21.8SMP Kg. 3.5 0.9AMMONIA Kg. 100 0.35CITRIC ACID Kg. 7.5 0.008SODA Kg. 50 0.28SALT Kg. 3 1.1SMBS Kg. 30 0.02SOYA LECTHINE Kg. NIL 0.2PARLE FLAVOUR MIX Lt. 35 0.2
TOTAL 166.988
12.5
0.1
0 3.5
100
7.5
50
3
30
0
35
100
42.1
3
21.8
0.9
0.35
0.00
8
0.28
1.1
0.02
0.2
0.2
0102030405060708090
100110
Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.
WHEATFLOUR
SUGAR(SYRUP)
VANASPATI SMP AMMONIA CITRIC ACID SODA SALT SMBS SOYALECTHINE
PARLEFLAVOUR
MIX
MOISTURE % INPUT QUANTITY
In Parle Biscuits are manufactured according to batching system. One batch
takes around two to three minutes to complete. One batch contains raw
materials & chemicals according to the quantity shown in above table.
STANDARD OF PARLE BISCUIT LIMITED, PANTNAGAR
STANDARD OF PARLE-G PER BATCHINGREDIENTS UNIT QUANTIT
YMOISTURE OUTPU
T
BATCH % (Dry Wt.)
Wheat Flour Kg. 100 12.5 87.5Sugar (Including Syrup on Dry basis)
42.13 0.1 42.09
Vanaspati Kg. 21.8 - 21.8SMP Kg. 0.9 3.5 0.87Ammonia Bi Carbonate Kg. 0.35 100 0Citric Acid Kg. 0.008 7.5 0.01Soda Kg. 0.28 50 0.14Salt Kg. 1.1 3 1.07SMBS Kg. 0.02 30 0.01Soya Lecthine Kg. 0.15 - 0.15Parle Flavour Mix Lt. 0.2 35 0.13
100
42.1
3
21.8
0.9
0.35
0.00
8
0.28
1.1
0.02
0.15
0.2
12.5
0.1
0 3.5
100
7.5
50
3
30
0
35
87.5
42.0
9
21.8
0.87
0 0.01
0.14
1.07
0.01
0.15
0.13
0102030405060708090
100110
Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.
WheatFlour
Sugar(IncludingSyrup on
Vanaspati SMP AmmoniaBi
Carbonate
CitricAcid
Soda Salt SMBS SoyaLecthine
ParleFlavour
Mix
STANDARD OF PARLE-G PER BATCH QUANTITY BATCH STANDARD OF PARLE-G PER BATCH MOISTURE %
STANDARD OF PARLE-G PER BATCH OUTPUT (Dry Wt.)
Like raw material there is also a standard of Packing material which is shown as below: -
STANDARD FOR PACKING MATERIAL FOR ONE BOX OF
PARLE-G (144 Pkts. x 100 GM.)
Description Units Qty/BoxesWrapper Ks. 0.166C-Boxes Nos. 1Poly Bags Nos. 6BOPP Tape Nos. 0.002Complains Coupons Nos. 6
STANDARD FOR MANUFACTURING ONE C-BOX
C- Box manufacturing is an in-house procedure in Parle Pantnagar and for this
there is a separate plant for manufacturing of C- Boxes. Standard Qty. for
producing a C-Box is as below: -
S. NO. ITEM NAME UNIT STD. PER BOX
1 Kraft Paper Kg. 0.420
2 Black Ink Kg. 0.001
3 Starch Powder Kg. 0.014
4 G.I. Stitching Wire Kg. 0.002
CONSUMPTION OF RAW MATERIAL & CHEMICALS ON ONE
MONTH PRODUCTION
Daily Consumption data of all kinds of Raw & Packing material was taken on an
average basis and average consumption of raw material & chemicals was as
below:-
CONSUMPTION OF RAM MATERIAL AT PBPL, PANTNAGAR(ONE-MONTH PRODUCTION)
SL. NO. ITEM NAME UNIT DAILY REQ. QTY.
1. Maida Kg. 3830000
2. Sugar Kg. 1615000
3. Vanaspati Kg. 837000
4. S.M.P. Kg. 34000
5. Ammonium (A.B.C.) Kg. 13000
6. Citric Acid Kg. 234
7. Soda Bi Carbonate Kg. 10660
8. Salt Kg. 42000
9. SMBS Kg. 390
10. Soya Lacethine Kg. 5200
11. PFM Lt. 7500
DAILY REQ. QTY.
3830000
1615000
837000
34000 13000 234 10660 42000 390 5200 75000
50000010000001500000200000025000003000000350000040000004500000
Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Lt.
Maida Sugar Vanaspati S.M.P. Ammonium(A.B.C.)
Citric Acid Soda BiCarbonate
Salt SMBS SoyaLacethine
PFM
DAILY REQ. QTY.
C-BOXES RAW MATERIAL CONSUMPTION
Like raw material & chemicals ,Packing material issuance data was also taken
from stores department and one week consumption of packing material is as
below:-
DAILY REQUIRED QTY. OF PACKING MATERIAL PBPL, PANTNAGAR ON MONTHLY PRODUCTION
SL. NO. ITEM NAME UNIT DAILY REQ. QTY.
1. C. Boxes Nos. 416000
2. Wrapper Kg. 70000
3. Ploy Bags Kg. 16000
4. Coupons Nos. 2500000
5. BOPP Tape Roll 936
POWER & FUEL CONSUMPTION
Propane gas is used as fuel (to heat oven) & H.S.D electricity both are used as power at Parle
Pantnagar .Propane & H.S.D. consumption on an average basis is as below:
DAILY REQUIRED QTY. OF POWER & FUEL AT PBPL, PANTNAGAR ON MONTHLY PRODUCTION
SL. NO. ITEM NAME UNIT DAILY REQ. QTY.
1. Propane Kg. 156000
2. H.S.D. Lt. 72800
DAILY-REQUIRED QTY. FOR MANUFACTURING ONE-MONTH C-BOXES
DAILY-REQUIRED QTY. OF C. BOXES RAW MATERIAL
DAILY PRODUCTIONSL. NO. ITEM NAME UNIT DAILY REQ.
QTY.1. Stitching Wire Kg. 910
2. Kraft Paper Kg. 169000
3. Powder Gum Kg. 7000
4. Black Ink Kg. 500
MINIMUM & MAXIMUM STOCK LEVEL OF R.M.
AVERAGE & MINI-MAX LEVEL OF RAW MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION
SI.NO.
ITEM NAME UNITDAILY
AVERAGE QTY.
MINIMUM LEVEL
MAXIMUM LEVEL
1. Maida Kg. 300000 200000 400000
2. Sugar Kg. 450000 300000 500000
3. Vanaspati Kg. 90000 60000 120000
4. S.M.P. Kg. 12000 9000 15000
5. Ammonium (A.B.C.) Kg. 3500 2000 5000
6. Citric Acid Kg. 200 50 350
7. Soda Bi Carbonate Kg. 2500 2000 3000
8. Salt Kg. 8000 2000 6000
9. SMBS Kg 200 150 250
10. Soya Lacthine Kg. 2000 1000 3000
11. PFM Lt. 2000 500 3500
3000
00
4500
00
9000
0
1200
0
3500
200
2500
8000
200
2000
2000
2000
00
3000
00
6000
0
9000
2000
50 2000
2000
150
1000
500
4000
00
5000
00
1200
00
1500
0
5000
350
3000
6000
250
3000
3500
0
25000
50000
75000
100000
125000
150000
175000
200000
225000
250000
275000
300000
325000
350000
375000
400000
425000
450000
475000
500000
525000
Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg. Kg Kg. Lt.
Maida Sugar Vanaspati S.M.P. Ammonium(A.B.C.)
Citric Acid Soda BiCarbonate
Salt SMBS SoyaLacthine
PFM
DAILY AVERAGE QTY. MINIMUM LEVEL MAXIMUM LEVEL
MINIMUM & MAXIMUM STOCK LEVEL OF PACKING MATERIAL
AVERAGE & MINI-MAX LEVEL OF PACKING MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION
SI.NO.
ITEM NAME UNIT DAILYAVERAGE
QTY.
MINIMUM LEVEL
MAXIMUM LEVEL
1. C. Boxes Nos. 52000 32000 72000
2. Wrapper Kg. 6000 2000 4000
3. Poly Bags Kg. 4500 1500 3500
4. Coupons Nos. 1000000 500000 1500000
5. BOPP Tape Roll 500 100 400
MINIMUM & MAXIMUM STOCK LEVEL OF POWER & FUEL
AVERAGE & MINI-MAX LEVEL OF POWER &FUEL AT PBPL, PANTNAGAR ON DAILY PRODUCTION
SI.NO.
ITEM NAME UNIT DAILYAVERAGE
QTY.
MINIMUM LEVEL
MAXIMUM LEVEL
1. Propane Kg. 20000 10000 30000
2. H.S.D. Lt. 15000 8000 22000
MINIMUM & MAXIMUM STOCK LEVEL OF C-BOX RAW MATERIAL
AVERAGE & MINI-MAX LEVEL OF C. BOXES RAW MATERIAL AT PBPL, PANTNAGAR ON DAILY PRODUCTION OF C. BOXES
SI.NO.
ITEM NAME UNIT DAILYAVERAGE
QTY.
MINIMUM LEVEL
MAXIMUM LEVEL
1. Stitching Wire Kg. 500 200 800
2. Kraft Paper Kg. 45000 15000 75000
3. Powder Gum Kg. 1200 600 1800
4. Black Ink Kg. 250 50 450
PRODUCTION LEVEL OF BISCUITS
AT PBPL, PANTNAGAR
(FOR THE YEAR 2005-06, 2006-07 & 2007-08)
MONTH
PRODUCTION IN MT
2007-08 2006-07 2005-06
PG CREAM
APR 4,000 - 4,200 -
MAY 4,300 - 4,300 35
JUN 5,000 - 4,800 600
JULY 5,000 - 5,500 1,500
AUG 4,800 40 5,200 2,000
SEP 5,300 2,400
OCT. 4,300 2,500
NOV 4,900 2,300
DEC 4,700 2,800
JAN 4,900 2,500
FEB 5,000 2,600
MAR 4,500 2,800
23,100 40.0 57,600 22,035
CONCLUSION
InventoryFinancial is as old as man. The primitive man’s inventoryFinancial
consisted of a few tools; as a shepherd, man had to tend his flocks and herds’;
later, he has his granaries and ware houses; today with industrialization, his
inventories cover a very wide range. As man has progressed and his needs and
activities multiplied, the range of inventoryFinancial has become larger and
more diversified.
Now a days, Inventories are held to facilitate product display and service to
customers, batching in production in order to take advantage of longer
production runs and provide flexibility in production scheduling.
Hence, to achieve the desire goal of an organization more efficiently and
effectively, organization has to make proper inventoryFinancial levels with the
help of InventoryFinancial Management and Control.
RECOMMENDATION
InventoryFinancial management and control refers to the planning for
optimum quantities of materials at all stages in the production cycle and
evolving techniques which would ensure the availability of planned
inventories
For proper determination of inventoryFinancial, the trend of sales must
be watched closely and inventories adjusted in advance of the change in
rate of production as determined by actual sales.
Proper inventoryFinancial system must provide follows up to unable the
answering of such questions: Has the vendor received the order? Has it
been shipped? Are the items correct? Are the procedures established for
re-ordering or returning undesirable merchandise?
BIBLIOGRAPHY
Education and knowledge within industry.
BOOKS: -
o Financial Management, Gupta K. Shashi, 2000, Kalyani
Publishers.
o Financial Management, Kishore M. Ravi, 2005, Taxmann Allied
Services Pvt. Ltd.
o Production and Operation Management, Aswathapa K. 2006,
Himalaya Publishers.
o Production and Operation Management, Nair N. G., 2002, Tata
Mcgraw-Hill Publishing Company Ltd..
o Research Methodology, Kothari C. R., 2003, Wishwa
Prakashan
SEARCH ENGINE: -
o www.parle-g.com
o www.google.com
o www.yahoo.com
o www. wikepedia.com
ANNEXURE
QUESTIONNAIRE
For employer
Name and address of the company:-
Name and Telephone no. and destination of the person to be contacted for clarification:-
Ques 1:- what is the sector of this industry?
1) Private Sector
2) Public Sector
3) Joint Sector
Ques 2:- What is scale of this industry?
1) Large Scale
2) Medium Scale
3) Small Scale
Ques 4:- What is average age of employees in your industry?
1) 20 – 35 Years
2) 35 – 50 Years
3) 50 – 65 Years
Ques 5:- What is an average service of employees in this industry?
1) 5 – 10 Years
2)10 – 15 Years
3) 15- 20 Years
Ques6:- What is the number of manpower in your organization?
5) Staff
6) Company roll
7) Contract based
8) Casual based
Ques10: - What are the methods adopted to improve productivity?
5) Productivity improvement
6) Quality improvement
7) TPM
8) Other methods
Ques11:- Do you have medical reimbursement scheme?
1) Yes
2) No
Ques12:- Are you providing canteen facilities?
1) Yes
2) No
Ques14:- What is the age of retirement of employees of this industry?
1) 56- 58 Years
2) 58–60 Years
3) 60- 62 Years
Ques16:- Do you have career plan for employees?
1) Yes
2) No
Ques17:- Do you have services gifts scheme?
1) Yes
2) No
Ques19:- Do you have your own transport facilities?
1) Yes
2) No
Ques20:- How much amount is deducted from transport Facilities?
1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Ques21:- How much amount is the conveyance allowance given to employees?
1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Ques22:- Do you have house rent allowance?
1) Yes
2) No
Ques23:- How much amount is deducted from house rent allowance?
1) 200-500 Rs.
2) 500-800 Rs.
3) 800-1100 Rs.
4) More than 1100 Rs.
Ques24:- What is the timing of shift for working employees?
1) 6 AM - 2 PM
2) 2 PM – 10 PM
3) 10 PM – 6 AM
4) 8 AM – 5 PM
5) All of these
Ques25:- Do you have overtime facilities?
1) Yes
2) No
Ques26:- Do you have children’s education allowance?
1) Yes
2) No
Ques27:- Are you providing Bonus?
1) Yes
2) No
Ques28:- What is the method of calculation of Bonus?
1) As per HR policy
2) As per Govt. norms
3) Both of these
Ques29:- Do you have incentive schemes?
1) Yes
2) No
Ques30:- Do you have any Awards?
1) incentive
2) Attendance Award
3) Star of the month
4) Quality control Award
5) All of these
For Employees
Ques1:- What is your age?
1) 20 – 35 Years
2) 35- 50 Years
3) 50 – 65 Years
Ques2:- Are you agree with your training programs?
1) Yes
2) No
Ques3:- Are you satisfy your canteen facilities?
1) Yes
2) No
Ques4:- Do you agree with your medical facilities?
1) Yes
2) No
Ques5:- Are you satisfied your health scheme policy?
1) Yes
2) No
Ques6:- Are you satisfied your welfare programs?
1) Yes
2) No
Ques:- Are you having house rent allowance?1) Yes
2) No
Ques:- Are you satisfied your Grievance handing procedure?1) Yes
2) No
Ques:-Are you agree your promotion policy?1) Yes
2) No