08-06-2012, 03:07 PM
INVENTORY MANAGEMENT
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Inventory management is primarily about specifying the shape and percentage of stocked goods. It is required at different locations within a facility or within many locations of a supply network to proceed the regular and planned course of production and stock of materials.
The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment.
Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. It also involves systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status and handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. Also may include ABC analysis, lot tracking, cycle counting support etc. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs.
The objectives of Inventory Management are:
1.To identify and track all data processing assets in an Inventory System Repository.
2.To define the process by which assets are identified and maintained in the Inventory System.
3.To provide Inventory System access to all necessary personnel (data entry, update and deletion).
4.To provide a full range of reports that will satisfy informational requirements.
5.To document the Inventory Management System within the Standards and Procedures Manual.
6.To provide training to personnel responsible for supporting the Inventory Management System.
OBJECTIVES
From the problem taken for the study the following objectives have been
Considered.
Primary Objective:
The Primary Objective is to know how efficiently the inventory is managed
in Lucas-TVS
Secondary Objective:
• To classify the inventory scientifically.
• To exercise control over important items by way of ABC analysis.
• To estimate the ratios statiscally for future periods.
• To help eliminate unnecessary inventory held in stock and thereby reducingfunds locked in them.
• To find which part of current assets is efficiently employed and the contribution of inventory in it.
COMPANY PROFILE
Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc.,UK and TV Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas Industries of the UK and the Varity Corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the world's automotive, after market, diesel engine and aerospace industries.
The combination of these two well-known groups has resulted in the establishment of a vibrant company, which has had a successful track record of sustained growth over the last three decades.TVS is one of India's twenty large industrial houses with twenty-five manufacturing companies and a turnover in excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233 million during 2003-2004.
Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emerged as one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, two-wheelers and off-highway vehicles as well as for stationary and marine applications. With the automobile industry in India currently undergoing phenomenal changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of tomorrow.
Products:
Manufacturers of products Indian Market: Starter Motor, Alternator, Headlamp, Small Motor, Dynamo Regulator, Dynamo, Ignition Coil, Distributor, Diesel fuel injection. Small Motor: Wiper Motor, Blower Motor, Fan Motor. US/European Market: Starter Motor, Alternator, Small Motor, Dynamo Regulator, Dynamo, Auto Electricals. Small Motor: 14W Wiper Motor, WindShield Wiper Motor (GM Range), LRW Products. Auto Electricals: Telco Vehicles, Ashok Leyland Vehicles, Suzuki Vehicles.
INDUSTRY PROFILE
T V Sundram Iyengar & Sons Ltd., commonly known as TVS & Sons Ltd., was established in 1911. It is the holding company of TVS Group and is a diversified Group in the automobile field. While the core businesses also include auto components manufacturing & distribution, logistics etc., the company is known for its presence in automobile distribution in more than seven states. TVS & Sons’ involvement with all its associates dates back to several decades and is growing strong day by day.
The business activities include dealership for automobile vehicles, distribution of spares for after-market, sales & services support for garage equipment, sales & services products for special applications like construction & material handling. In its desire to reach out to the customers directly, TVS & Sons entered into the business of customer-centric car services through its brand “MyTVS”. MyTVS is an independent, multi-brand and integrated after-market car services business with core value of relationship and trust. MyTVS provides car owners regular periodic maintenance services and complete car body repair facility through MyTVS All Car Service and provides emergency roadside assistance through MyTVS 24x7 Emergency Services. The company has recently started two more initiatives, namely, MyTVS and TVS PartSmart.The company has attained a turnover of USD 1 billion (over INR 4,000 crores) and has employee strength of 5000.
TVS Motor Company Limited (BSE: 532343, NSE: TVSMOTOR) is the third largest two-wheeler manufacturer in India. It is the flagship company of the parent TVS Group employing over 40,000 people with an estimated 15 million customers.
It manufactures motorcycles,scooters, mopeds and auto rickshaws. It is India's only two-wheeler company to have won theDeming Prize awarded for commitment to quality control, received in 2002.
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Vengaram Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business. He began with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited. When he died in 1955 his sons took the company ahead with several forays in the automobile sector, including finance, insurance, manufacture of two-wheelers, tyres and components. The group has managed to run 33 companies that account for a combined turnover of nearly $3 billion.
