Internship 2012

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(First Page)

MASTERS IN MANAGEMENT STUDIES

Summer Internship Report

Name of Company : FTECH ENTERPRISES

Address of Company : Gala No. 9/A,Egal Market,

90 Ft.Rd.,Next To Peninsula Hotel,

Sakinaka,Andheri (East),

Mumbai 400072.

Phone No. : 9870482986

Email id. : [email protected]

Submitted by:

FIRDOS AHMED SHAIKH

(Roll No.43)

Name of Coordinator: x-------------x

BESs Institute of Management Studies and Research

( Approved by AICTE & Affiliated to University of Mumbai)

May 2012


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DECLARATION

I hereby declare that the Summer Internship Report submitted for the MMS

Degree, BESs Institute of Management Studies and Research (Affiliated to

University of Mumbai) is my original work and conducted in FTECH

ENTERPRISES Company.

Place: Mumbai

Date:

FIRDOS AHMED SHAIKH

Signature of the student


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Certificate

This is to certify that the Summer Internship Report is the bona fide internship

work carried out by Mr. Firdos Ahmed Shaikh student of MMS, at BESs

Institute of Management Studies and Research (Affiliated to University of

Mumbai) during the May to July 2010, in partial fulfillment of the requirements

for the award of the Degree of Master in Management Studies.

Place: Mumbai

Date:

Signature of the Director Signature of the Coordinator


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ACKNOWLEDGEMENTS

I wish to express my gratitude to MR.Firoz Shaikh from the Ftech Enterprises

Company for providing me valuable information.

I am grateful to BESs Institute of Management Studies and Research for

giving me an opportunity to pursue MMS. I wish to thank Professor Vikram D.

Shikhare, Director, BESs Institute of Management Studies and Research who

has been a perpetual source of inspiration and offered valuable suggestions

to improve my practical Knowledge.

I am indebted to my Coordinator X-------------X Professor, BESs Institute of

Management Studies and Research, for abundant guidance, support, and

encouragement throughout my internship Study.

I would like to express my thanks to various people from the Ftech

Enterprises Company for their support and direction.

Place: Mumbai

Date: July , 2012

Signature of the student

( FIRDOS AHMED SHAIKH )


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TABLE OF CONTENTS

Sr.

No.

Content Page No.

1. Company profile

2. Genesis of the project

3.1 Demand management

3.2 Demand management for MTO

3.3 Demand forecasting

3.4 Make to order v/s make to stock

4 Objectives of Project

5 Research Methodology

6 Data analysis

7 Discussion

8 Outcome of the study

9 Recommendations

10 References


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COMPANY PROFILE

FTECH ENTERPRISES ( Established in 1993) located in Navi

Mumbai,Maharashtra are leading Manufacturer-Exporters of Central Air

Conditioning accssories like One Piece Diffusers,Swirl Diffusers,VCD

Quadrants,Grilles,Dampers etc. It is one of renowned One Star export house

of india

Mr .FIROZ SHAIKH is Founder and Managing Partner of Ftech enterprises

and is the inventor of One Piece Diffuser,which is Patented product all over

the world. This design has altered the whole cost and efficiency equations in

air conditioning industry.

FTECH ENTERPRISES is situated on the outskirts of Mumbai(BOMBAY),

which are well equipped with latest CNC machines. High Speed

machines,Hundred of power presss machines ranging from 10 to 250 tonnes.

Above all,these units are Handled by 200 skilled workers, experienced

Engineers and technically sound Directors.

FTECH ENTERPRISES is known for innovations.Over two decades FTECH

ENTERPRISESS has developed many technologically improved products for

air conditioning industry in the world.Egg Crate Grille is the latest addition in

our existing wide product range.

The One-Piece Diffuser- High Quality ,energy

Efficient,Economical,Good Looking is boon to the air conditoning

industry. This wonder product has been invented by us and marketed all

over the world. Ever since its establishment,We have manufactured millions

of diffusers and exported to European Countries,Middle East ,South East Asia

and othe developed countries.


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We have received several honours in India.Best being the National Award for

Research and Development granted by the Government of India.

Internationally,the ASHRAE Team at AHR Expo 2003 honoured us by

selecting our product for the AHR EXPO INNOVATION HONOURS which

was held in Chicago(U.S.A) in january 2003.

One Piece Diffusers manufactured by FTECH are tested by ETL

Laboratories USA- oldest testing laboratory in the world and which gives the

correct technical details of our products.

Product Range:

ONE PIECE DIFFUSERS

FLAT DIFFUSERS & 3-CONE DIFFUSERS

OPPOSED BLADE DAMPERS

GRILLES-SINGLE AND DOUBLE DEFLECTION

ECG CRATE GRILLEVCD QUADRANTS & OTHER ACCESSORIES

REQUIRED FOR CENTRAL AIRCONDITIONING SYSTEM


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GENESIS OF THE PROJECT

FTECH ENTERPRISES located in Navi Mumbai,Maharashtra are leadingManufacturer-Exporters of Central Air Conditioning products

Working for ftech enterprises for the period of 2 months was a greatexperience keeping my carrier in mind. Good ambiance ,properfacilities,supporting staff,and lots of learning was some of the key features ofthis organization

While Working with this organisation i noticed few things which i discussedwith sir. As this organisation makes hybrid products so they are involved in alltypes of scenario such as MTO,MTS,ATO AND ETO .But during thediscussion sir told me to focus mainly on the area which means a lot to themwhich is MTO(Make to order). As ftech enterprises mostly deals with MTOproducts there is always pressure on organisation to meet customer needs in

time by producing product before the due date and by fulfilling thespecifications of product. During this quality according to the specifation of theproduct is also a major concern because even a slightest mistake can causeimproper quality which will in turn effect the credibility and profitability of theorganization

So first thing which I found important to facilate demand management in thiskind of organization is digitization by reducing the paper work. As thisorganisation is still using papers for documentation and less of digitizationthere is definitely need of change This can be done only if sales, purchaseand accounting department are integrated by a computerized software i.e.

ERP

This software can also be useful in two ways

1. Whether the production is going according to the flow so that the customerdemand can be met before the due date so that delivery can be done on time

2. As per the requirements of the customers proper planning of manpower,machine. Materials along with the cost required can be done


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DEMAND MANAGEMENT

Demand forecasting is the activity of estimating the quantity of a product or

service that consumers will purchase. Demand forecasting involves

techniques including both informal methods, such as educated guesses, and

quantitative methods, such as the use of historical sales data or current data

from test markets. Demand forecasting may be used in making pricing

decisions, in assessing future capacity requirements, or in making decisions

on whether to enter a new market

Demand forecasting is an activity a company does internally when it sets its

sales budget. The demand forecast influences all upstream commitments and

decisions. Forecasting is important and fundamental to any business. It is the

act of looking ahead and anticipating the future.

Forecasting provides lead time to do the following:

$ Respond to new situations (avoid surprises)

$ Make optimal, and proactive decisions, instead of doing things by

default, in a reactive mode

TYPES OF DEMAND FORECAST

LONG TERM

Long-term forecasts are for strategic management decisions such as those

concerning new product introduction, large investments, acquisitions, entry

into new regions or markets, and more.

MEDIUM TERMMedium-term forecasts relate to tactical,yearly,decisions.These includeinventory planning, master production planning, subcontracting policies,hiring, setting staff/sales targets and bonuses, and more.

SHORT TERMShort-term forecasts are for daily and weekly scheduling
http://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecasting


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TECHNIQUES OF DEMAND MANAGEMENT

Broadly speaking, there are two approaches to demand forecasting- one is to

obtain information about the likely purchase behavior of the buyer throughcollecting experts opinion or by conducting interviews with consumers, the

other is to use past experience as a guide through a set of statistical

techniques. Both these methods rely on varying degrees of judgment. The

first method is usually found suitable for short-term forecasting, the latter for

long-term forecasting. There are specific techniques which fall under each of

these broad methods.

Simple Survey Method:

For forecasting the demand for existing product, such survey methods are

often employed. In this set of methods, we may undertake the following

exercise.

1) Experts Opinion Poll: In this method, the experts on the particular product

whose demand is under study are requested to give their opinion or feel

about the product. These experts, dealing in the same or similar product, are

able to predict the likely sales of a given product in future periods underdifferent conditions based on their experience. If the number of such experts

is large and their experience-based reactions are different, then an average-

simple or weighted is found to lead to unique forecasts. Sometimes this

method is also called the hunch method but it replaces analysis by opinions

and it can thus turn out to be highly subjective in nature.

2) Reasoned Opinion-Delphi Technique: This is a variant of the opinion poll

method. Here is an attempt to arrive at a consensus in an uncertain area by

questioning a group of experts repeatedly until the responses appear to

converge along a single line. The participants are supplied with responses to

previous questions (including seasonings from others in the group by a

coordinator or a leader or operator of some sort). Such feedback may result in

an expert revising his earlier opinion. The Delphi Techniques, followed by the

Greeks earlier, thus generates reasoned opinion in place of unstructured

opinion; but this is still a poor proxy for market behavior of economic

variables.


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3) Consumers Survey- Complete Enumeration Method: Under this, the

forecaster undertakes a complete survey of all consumers whose demand he

intends to forecast, Once this information is collected, the sales forecasts are

obtained by simply adding the probable demands of all consumers. The

principle merit of this method is that the forecaster does not introduce any

bias or value judgment of his own. He simply records the data and

aggregates.

4) Consumer Survey-Sample Survey Method: Under this method, the

forecaster selects a few consuming units out of the relevant population and

then collects data on their probable demands for the product during the

forecast period. The total demand of sample units is finally blown up to

generate the total demand forecast.

5) End-user Method of Consumers Survey: Under this method, the sales of

a product are projected through a survey of its end-users. A product is usedfor final consumption or as an intermediate product in the production of other

goods in the domestic market, or it may be exported as well as imported. The

demands for final consumption and exports net of imports are estimated

through some other forecasting method, and its demand for intermediate use

is estimated through a survey of its user industries.

Complex Statistical Methods:

(1) Time series analysis or trend method: Under this method, the timeseries data on the under forecast are used to fit a trend line or curveeither graphically or through statistical method of Least Squares. Thetrend line is worked out by fitting a trend equation to time series datawith the aid of an estimation method. The trend equation could takeeither a linear or any kind of non-linear form. The trend methodoutlined above often yields a dependable forecast. The advantage inthis method is that it does not require the formal knowledge ofeconomic theory and the market, it only needs the time series data.The only limitation in this method is that it assumes that the past is

repeated in future. Also, it is an appropriate method for long-runforecasts, but inappropriate for short-run forecasts. Sometimes thetime series analysis may not reveal a significant trend of any kind. Inthat case, the moving average method or exponentially weightedmoving average method is used to smoothen the series.

Moving Averages: Perhaps the simplest of all time series forecastingtechniques is a moving average. To use this method, we calculate theaverage of, say, three periods of actual demand and use that to

forecast the next period's demand. If this three-period average is to beused as a forecast, it would have to forecast demand in a future period,such as Period 8.


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Because each average moves ahead one period each time, droppingthe oldest value and adding the most recent, this procedure is called amoving average. The number of periods to use in computing theaverage may be anything from 2 to 12 or more, with 3 or 4 periodsbeing common. If the time series is such that there is no upward ordownward trend, then the moving average is a satisfactory technique.If, how-ever, there is any trend or any seasonal effect, then the movingaverage will not work very well. Moving averages lag behind anytrends.

(2) Barometric Techniques or Lead-Lag indicators method: This consists

in discovering a set of series of some variables which exhibit a close

association in their movement over a period or time.

For example, it shows the movement of agricultural income (AY series) and

the sale of tractors (ST series). The movement of AY is similar to that of ST,but the movement in ST takes place after a years time lag compared to the

movement in AY. Thus if one knows the direction of the movement in

agriculture income (AY), one can predict the direction of movement of tractors

sale (ST) for the next year. Thus agricultural income (AY) may be used as a

barometer (a leading indicator) to help the short-term forecast for the sale of

tractors.

3) Correlation and Regression: These involve the use of econometric

methods to determine the nature and degree of association between/among a

set of variables. Econometrics, you may recall, is the use of economic theory,

statistical analysis and mathematical functions to determine the relationship

between a dependent variable (say, sales) and one or more independent

variables (like price, income, advertisement etc.). The relationship may be

expressed in the form of a demand function, as we have seen earlier. Such

relationships, based on past data can be used for forecasting. The analysis

can be carried with varying degrees of complexity. Here we shall not get into

the methods of finding out correlation coefficient or regression equation; you

must have covered those statistical techniques as a part of quantitative

methods. Similarly, we shall not go into the question of economic theory. We

shall concentrate simply on the use of these econometric techniques in

forecasting.

We are on the realm of multiple regression and multiple correlation. The form

of the equation may be:

DX = a + b1A + b2PX + b3Py

You know that the regression coefficients b1, b2, b3 and b4 are the components

of relevant elasticity of demand. For example, b1 is a component of price


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elasticity of demand. The reflect the direction as well as proportion of change

in demand for x as a result of a change in any of its explanatory variables. For

example, b2< 0 suggest that DX and PX are inversely related; b4 > 0 suggest

that x and y are substitutes; b3 > 0 suggest that x is a normal commodity with

commodity with positive income-effect.

Given the estimated value of and b i, you may forecast the expected sales(DX), if you know the future values of explanatory variables like own price (PX),

related price (Py), income (B) and advertisement (A). Lastly, you may also

recall that the statistics R2 (Co-efficient of determination) gives the measure

of goodness of fit. The closer it is to unity, the better is the fit, and that way

you get a more reliable forecast.

The principle advantage of this method is that it is prescriptive as well

descriptive. That is, besides generating demand forecast, it explains why the

demand is what it is. In other words, this technique has got both explanatoryand predictive value. The regression method is neither mechanistic like the

trend method nor subjective like the opinion poll method. In this method of

forecasting, you may use not only time-series data but also cross section

data. The only precaution you need to take is that data analysis should be

based on the logic of economic theory.

(4) Simultaneous Equations Method: Here is a very sophisticated method of

forecasting. It is also known as the complete system approach or

econometric model building. In your earlier units, we have made reference to

such econometric models. Presently we do not intend to get into the details ofthis method because it is a subject by itself. Moreover, this method is normally

used in macro-level forecasting for the economy as a whole; in this course,

our focus is limited to micro elements only. Of course, you, as corporate

managers, should know the basic elements in such an approach.

The method is indeed very complicated. However, in the days of computer,

when package programmes are available, this method can be used easily to

derive meaningful forecasts. The principle advantage in this method is that the

forecaster needs to estimate the future values of only the exogenousvariables unlike the regression method where he has to predict the future

values of all, endogenous and exogenous variables affecting the variable

under forecast. The values of exogenous variables are easier to predict than

those of the endogenous variables. However, such econometric models have

limitations, similar to that of regression method.


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DEMAND MANAGEMENT FOR MTO(MAKE TO ORDER)

The focus of demand management in the MTS and ATO environment was

largely on satisfying customers from the appropriate inventory finished goods

or components . In the make to order and engineer to order environment there

is another resource that needs to be taken into account engineering. Moving

the customer order decoupling point to raw materials or even suppliers puts

independent demand information further into the firm and reduce the scope ofdependent demand information. Moreover ,the nature of the information

needed from customers changes. we knew what the customer could buy in

the MTS and ATO environment but not if when or how many in the make

(engineer) to order environment on the other hand we are not sure what they

are going to buy. We need, therefore, to get the product specification from the

customers and translate these into manufacturing terms in the company. This

means that a task of demand management in the environment is to coordinate

information on customer product needs with engineering

The need for engineering resources in the engineer to order case is some

what different than in the make to order case. In the make to order

environment, engineering determines what material will be require ,what steps

will be required in manufacturing and the cost involved The materials will

come from companys inventory or be purchased from suppliers. In the

engineer to order environment more of this same information is needed from

customer although more of the details design may be left to engineers than

the customers. Because of the need for engineering resources in this

environment demand management s forecasting task now includes

determining how much engineering capacity will be required to meet future

customer needs.This may be complicated because some orders scan be in

progress, even though they arent Completely specified and engineering,so

materials co-ordination is still important


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MAKE TO STOCK V/S MAKE TO ORDER

Introduction.

The processes of make-to-order and make-to-stock are similar at first sight.

The major difference is that in make-to-order, production orders are linked to

one or more sales orders whereas in make-to-stock production, orders are the

result of production planning, which in its turn is based on a sales prognosis.

Let us have a look at make-to-order first and see what implications it has for

your ERP system, then focus on make-to-stock and finally draw our

conclusions.

Make-to-order.

Your production orders are caused by sales orders. This means that your

ERP system must have a strong and intelligent link between its sales order

module and the production-planning module. Sales orders must be translated

into production orders. You should be able to monitor the progress of

individual production orders so that you can keep your customers informed

about a particular sales order.

Let us illustrate it all with an example. A client orders a particular machine.

The machine consists of many components listed on a bill of material. Some

components are used in different machine models. The sales order is

translated with the help of the bill of material into a production request. The

production request will be combined with others (if there are any) to make a

production schedule. The components for the machine are either to be

manufactured or purchased. Some purchase components you keep in stock,

others you purchase when needed.

In a make-to-order environment production planning and purchasing can bequite hectic. If you have a pipeline of prospect orders the production planning

and purchase departments can be prepared for things to come, but not if your

production planning is totally dependent on the whims of your clients. Your

ERP system must enable you to be flexible. For instance: delay one order and

speed up another.

A risk of make-to-order production is inefficiency and more wastage.

Combining production orders as much as possible and refining the production

process to its maximum potential can reduce this risk.

To a certain extent the inventory manager can make sure that much used

components are ready available in stock but the cost of having everything

always in store is often prohibitive. Your purchasing department must be able


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to act quickly and look for alternative suppliers fast when a preferred supplier

cannot deliver. Just-in-time delivery arrangements must be made beforehand.

The purchasing module of the ERP system must have this information readily

available.

Make to stock.

In this case production planning is based on a sales forecast for a certain

time, a year, six months or a quarter. The ERP must be able to support the

process of making a prognosis by providing statistical data and projections

based upon historical information. The transformation of a sales forecast to a

production planning is roughly similar to that described above.

The advantage of producing for stock is that you are in most cases able to

spread the production evenly over a given time period, avoiding most of the

hectic scenes that often characterize make-to-order production. There is

much room for achieving a highly efficient and effective manner of production.

This does not mean that make-to-stock production is stable and free from

erratic movements. Your production planning must be smoothly adjustable to

changes in your sales forecast.

An ERP system geared to make-to-stock production can in one aspect make

life for your purchasing department easier: purchase orders are issued well in

time on the basis of parameters as minimum stock, minimum order quantity

and actual need (if the production quota for a particular article has beenfulfilled, then the need for certain components will diminish)

Conclusions.

There is a great similarity between the processes but also some important

differences that have implications for the capabilities needed in your ERP

system.Make-to-order:

The ERP system must have a strong and intelligent link between the salesorder module and the production process module in order to transfer salesorders into production orders.

Monitoring of individual production orders must be possible in order to meetthe customers demands and to keep them informed about the progress oftheir orders. Production orders must traced back to sales orders.

The ERP system must enable a highly flexible processing of orders in order tomeet irregular sales demands.

The ERP system should strongly support the inventory manager and thepurchasing department, to ensure an uninterrupted flow of components and tokeep stocks as low as possible.


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You should take measures to reduce the risk of inefficiency and wastage.Make-to-stock:

The ERP system must have strong statistical capabilities in order to supportthe sales forecasting process. Of course sales forecasting relies mainly onmarket expectations and projections but the statistical data provided by theERP system is useful additional information.

The sales forecast will be transformed into a production planning, similar as inmake-to-order production.

Make-to-stock leads to an evenly spread production schedule which is goodfor efficiency and effectiveness.

However there is still need for flexibility to adjust to suddenly changing marketcircumstances.

Purchasing must take into account the projected future need for componentsin relation to already fulfilled production quota.


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OBEJECTIVES

To ensure uncertainty in demand To ensures proactive preventive maintenance is coupled with

customers demands. Making recommendations for Service Improvement Plans Ensuring the Demand Management process is performed as designed. Ensuring the Demand Management process is fit for purpose. Ensuring process description meets objectives To mange the demand by reducing cost To manage demand With more efficiency,timely delivery,with minimum

wastage To satisfy customers demand by fulfilling his needs To keep buffer stock so that delivery can be made within time In case of some problems such as power failure,defect in product or

less availability of resources convincing the customer maybe the rightthing to do first or else such action must be done which can causeminimum wastage or loss to firm and also which does not effectcompanys reputation

o Personnel

Leading and supporting the Demand Management team.

Motivate the employees you are responsible for. Help them thrive in a

challenging work environment.

Understanding the full scope of the Demand Management process.

Ensuring that all your co-workers in projects understand and follow all

procedures they are involved with.


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RESEARCH MEHODOLOGY

This research is done specifically for the purpose of finding out solutions formanaging demand more properly in ftech enterprises ,so that customer orders

can be mate before the due date and order can be delivered to the customer

according to his specification and with required quantities

Ftech enterprises is a manufacturer of central air conditioning products ,it

deals with hybrid products which involves MTO,MTS,MTA and MTE scenarios

. MTO is one of the process which are difficult to manage.The company

manages the entire process of order receivable, producing goods and then

dispatching it partly through digitization and partly through papered

documentation

The forecasting method used by company is moving average method of time

series analysis which is more efficient method to carry out average of period

of 6 months or 3 months . The forecasting here done simply by an excel sheet

or by some calculation

The entire MTO process consists of the following process in this organisation

The customer places his order with required number of quantities along with

his specifications

The sales department receive this order in documented form then enters it in

software of the company(customized software ultimate J) .

sales department sends this list of order to production department

production department checks the date when the order is needed along with it

1month lead time is taken into account by the company which is told to the

customer

If the order is in stock then it is fulfilled according to the date of customer orelse lead time is taken into consideration. This buffer stock is maintained in

case of only few customers which are regularly ordering products from

company. This buffer stock is carried according to the moving average

method discussed before for that particular product

while the order is prepared the Quality control department keeps the track of

the quality of product

when the order is prepared the further transaction regarding the dispatch and

receiving the amount decided for the sale of product is done by accountsdepartment


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TYPE OF RESEARCH

This research is said to be pure research as this involves testing and

developing theories and hypothesis

OBJECTIVE

From the viewpoint of objectives, this research is said to be Exploratory

researchExploratory research is undertaken to explore an area where little is known ortoinvestigate the possibilities of undertaking a particular research study

INQUIRY MODE

From the process adopted to find answer to research questions theapproach is said to be structured approach

Structured approach:The structured approach to inquiry is usually classified as quantitativeresearch.Here everything that forms the research process- objectives, design, sample,and thequestions that you plan to ask of respondents- is predetermined.

RESEARCH PROCESS

FORMULATING THE RESEARCH PROBLEM

Ftech enterprises does has an software which helps in fulfillment of entireprocess of order receiving , order producing and dispatching it before date thisentire process is done by various department such as sales ,production,quality control and accounting though this company has a software but theproblem is that the department are not still interconnected as sales andproduction department works on software which is JOB SHOP and accountingdepartment works on some other software and also many process in this 4department are done manually instead knowing that this processes can stillbe digitiseAlso the company is using moving average forecasting method which is not

best suited for organisation which involves MTO productsThere are no necessary preventive measures taken in case if companiesquality found to be defectiveThere may be also case where the order cant be mate before the date which


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was decided for the fulfillment of the order

FORMULATION OF OBJECTIVE

The main focus of conducting this research is to fulfill the customerrequirement within the time with the same specification and high class qualityFor this the demand management process needs to be strongThis can be done if the paperless work concept comes into existenceThere should be a software that can help in planning the material, manpowerand system requirement for the fulfillment of customers order within the timeand with required specificationAlso new forecasting method need to be taken into consideration

IDENTIFYING VARIABLE

Here the identifying variable must be a organisation which has record offulfilling the customers order before time with high class quality and with

decided quantity


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HYPOTHESIS

Paperless work in ftech enterprises can lead to improvement in demandmanagement

As ftech enterprises deals with more of MTO products . The organisationshould follow the concept of paperless work,that also suggest us about moreof digitisation by the means of software which integrates all the department sothat departments can get updated information whenever any order is placed.Most of the operations in ftech enterprises are partly manual and partly

digitise.many a times it becomes difficult to retrieve information regarding the pastorders because it was done manually this causes wastage of time. So thenew customisation software which the company is going to undertake mustinclude such a features thatthe data retrival becomes much simpler so that any past orders transactioncan easily be retrivedalso the new system must consist of a function which can automaticallycalculate how much of production needs to be done daily to make the orderready before the due datethe system must also have a functions which can help to calculate the

manpower required , equipments required and also the material required tocarry out the process

DATA COLLECTION

The data collected here is primary data which is collected for the first time forthe purpose of fulfilling the requirement of this project

METHODS FOR COLLECTING PRIMARY DATA

INTERVIEWINGPersonally went to production department ask them the production flowWent to the sales department inquired about the flowAlso went to quality control department asked them about measures taken forinspecting the quality


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DISCUSSION WITH MEMBERS OF ORGANISATION

Ftech enterprises is a manufacturer of Air conditioning product. This companymainly deals with on service demand which is MTO (make to order) industry.

Many companies orders product from Ftech enterprises. Among them is L&T.

L&T order around 20 products. To give a suitable example. We can say L&T

orders a product called as Fork. The company accepts the order and fulfills

their requirements and provide them timely delivery of product. For providing

timely delivery Sachin Impex uses a strategy of keeping readymade stock. As

L&T orders this product called as Fork every month. Thus company knows

their requirement and prepares and stores the product. On 1st April Ftech

enterprises calculates the total company stock and also average of 6 monthsof order from L&T is taken out to carry out avgstock which would be required

to know the companies requirement in advance. Basically this helps in

preparing a buffer stock.

PROBLEM 1:

Some product from L&T require more oil as they are oil based. So if this oil

level is not maintain. Then the product becomes rusty and some of the

products contain plating so till the time it reaches L&T the product becomes

rusty.

How it is tackled?

The company orders a sample of rusty item from L&T.

Analyze that product.

Quality and control does the procedure of preventive and corrective action.

And if the company is faulty then they replaces the defective product.

But if the company finds that its not their fault then they discuss it with L&T

and further L&T may be responsible if company product is not faulty.


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PROBLEM 2:

Delay sometime occurs due to less man power. Raw material shortage and if

material not available.

How it is tackled?

In this case the company convinces the other party by Interacting with them

and ensures them that they provide them their product if they will be given alittle more time.

PROBLEM 3:

The company also orders the products from other company which may be

required to make the product of L&T. Thus sometime the product such as coil

may be damaged from middle.

How it is tackled?

In this case company can replace the defective part and can use the product

in making final L&T product.


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OUTCOMES OF STUDY

Ftech enterprises is a well known SME deals with central air conditioningproductsIn this fast developing environment even a SME cannot survive withoutimplementing integrated system it has become a need for each and everyorganisationWhen technology comes lots of complex processes becomes simplerDemand management is a need for manufacturing firm because if notmanaged properly it can effect both profitability as well as credibilityIf customer backlog is formed company can take following actions to theextent of the problem

If the company is unable to meet demand of customer before decided datedue to any reason such as power failure,machine defect,breakdown ofmachineand less availability of material in market the company can tackle thatproblem byEither convincing the customer by tellin him the problem which the companyis facingIf the machine is breakdown then mechanic can be called immediately andgetting it repaired as soon as possibleIf it is not possible you can get it done by other companies in marketIf you are the alone provider and if the machine cannot be repaired but thecustomer is loyal to you and you want to fulfil his order any how then you

should buy a new machine because the one time loss is always better thanlosing ur credibility in market by loosing ypur valuable customers


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RECOMMENDATIONS

New customise software must include following function

A function which allows the drag and drop service which allowes you to assignyour worker to another job as soon as his 1st work is doneThe functions which can forecast the demand properly by the means ofmoving average methodThe software must be such that it can divide the production process intonumber of steps so that order can be easily comletedEach and every department must be link together so they can share therevaluable information with each other

Other suggestionThe production department must be given a system so that they can carry out

the daily production percentageAll the department must be link so that they can easily send email andvaluable information to each other instead of doing it manually

The material required which is forecasted must be used to be converted intoproducts instead waiting for order to be come

Forecasting technique which is used must be changed from moving averageto regression


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REFERENCES

en.wikipedia.org/wiki/Demand_forecasting

www.slideshare.net/yashpal01/demand-forecasting

www.economypedia.com/wiki/index.php?title=Demand_forecasting

www.manh.com/solutions/planning...forecasting/demand-forecasting

www.statsoft.com/textbook/demand-forecasting

http://www.itframeworks.org
http://www.slideshare.net/yashpal01/demand-forecastinghttp://www.slideshare.net/yashpal01/demand-forecastinghttp://www.slideshare.net/yashpal01/demand-forecastinghttp://www.slideshare.net/yashpal01/demand-forecastinghttp://www.slideshare.net/yashpal01/demand-forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.statsoft.com/textbook/demand-forecastinghttp://www.statsoft.com/textbook/demand-forecastinghttp://www.statsoft.com/textbook/demand-forecastinghttp://www.statsoft.com/textbook/demand-forecastinghttp://www.statsoft.com/textbook/demand-forecastinghttp://www.itframeworks.org/http://www.itframeworks.org/http://www.itframeworks.org/http://www.statsoft.com/textbook/demand-forecastinghttp://www.manh.com/solutions/planning...forecasting/demand-forecastinghttp://www.economypedia.com/wiki/index.php?title=Demand_forecastinghttp://www.slideshare.net/yashpal01/demand-forecasting


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(First Page)

Summer Internship 2010

Daily Record Diary

Name of Student : FIRDOS AHMED SHAIKH

Roll No. : 043

Mobile No. : 9867933831

Name of Coordinator :

Name of Company : FTECH ENTERPRISES.

Address of Company : Gala No. 9/A,Egal Market,

90 Ft.Rd.,Next To Peninsula Hotel,

Sakinaka,Andheri (East),

Mumbai 400072.

Name of Authority ( Company) :

BESs Institute of Management and Research

10, Nesbit road, Mazgoan, Mumbai 400010


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Daily Record

Date:

Time In Time Out

Activities Performed:

Your Learning:

Signature of Authority:

Documents

Internship 2012