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“A STUDY ON INVENTORY MANAGEMENT”
STATEMENT OF PROBLEM
A study of inventory management at ABB LTD is undertaken in order to know the inventory performance and position of the company and to know the strength and weakness and to assess the profitability of the company. Inventories constitute most significant part of assets of large majority of the companies in India. Inventory a double edged sword is usually an asset of an organization, if not used properly it will become liability. It is therefore absolutely very important to manage inventories efficiently and effectively in order to overcome unnecessary investment. And “To identify the problems/challenges involved in the Inventory Management process at ABB ltd.”
OBJECTIVES OF THE STUDY
The main objectives of the study are:-
1. To study the tools and techniques of inventory management adopted at ABB Ltd.
2. To study the inventory control measures in inventory management.
3. To study the demand forecast of inventory management at ABB Ltd.
4. To study how ABC analysis and aging schedule is implemented in inventory management.
5. To determine the stock level in inventory management at ABB Ltd.
6. To identify problems related to inventory management and to find out suitable measures to overcome them.
7. To study the methods of valuation of inventory on ABB Ltd.
8. To study the inventory management procedure.
9. To make a comparative study of inventory management in last 5 years using ratio analysis technique.
Methodology of data collection
a) Primary data
The primary data is collected by personal interviews with officials.
b) Secondary data
Files, annual reports, periodicals, manuals and text book. Which have already been passed through the statistical process are the secondary data used.
c) Field work
This was under taken individually to collect various information regarding the study by visiting following sections.
Information regarding stocking of materials receipts and issues to workshops. Inventory control procedures in various wards inside the department were obtained.
Remaining all the information was obtained from accounts department through personal interviews with section officials.
Plan of analysis
The analysis and interpretation was collected from finance department thus processed and tabulated is in the form of tables and graphs. The table thus obtained by calculating average, percentage, turnover ratio, graphs and diagram in respect of the stock of raw materials sales & inventory control procedures and thus to draw conclusion from the analysis done.
Scope of the study
• This study is to find the facts and opinions of inventory management and control at ABB plant.
• In accordance with the present trends it aims mainly at finding out the inventory control procedures at ABB.
• This study gives the brief information about the inventory management of the indo ABB ltd
• The study was done by using annual reports, inventory manual…etc.
Limitation of the study
• Time restriction was only 30 days of project work in the organization.
• The information, which was needed, could not be made public by the organization.
• The study are related to ABB ltd Bangalore only
• The finding and suggestion cannot be generalized.
• The study covered a wide concept hence wide collection and coverage of information was not easily possible.