Summer Internship Project Report On

“TRAINING IN THE FIELD OF PROCESS AND OPERATIONS IN PRINCE ALLOYS

PVT. LTD.”

submitted in the partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

MUNAWAR ALI K

(20MBMA58)

MBA 2020-22

Under the esteemed guidance of

Prof. Dr. Pramod Kumar Mishra

ASSISSTANT PROFESSOR

SCHOOL OF MANAGEMENT STUDIES

UNIVERSITY OF HYDERABAD

School of Management Studies, University of Hyderabad

Gachibowli, Hyderabad, Telangana 500046.

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 CERTIFICATE

SCHOOL OF MANAGEMENT STUDIES

UNIVERSITY OF HYDERABAD

This is to certify that the project titled “TRAINING IN THE FIELD OF PROCESS AND OPERATIONS” is

a bona-fide work done by MUNAWAR ALI K, bearing Registration No.20MBMA58, in partial fulfillment

of the requirements for the award of the M.B.A. degree under my supervision and submitted to the

Department of School of Management Studies, University of Hyderabad.

Place: School of Management Studies Prof. Dr.Pramod Kumar Mishra

University of Hyderabad Assistant Professor

Date: School of Management Studies

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3
 DECLARATION

I hereby declare that this Summer Internship Project titled “TRAINING IN THE FIELD OF PROCESS

AND OPERATION IN PRINCE ALLOYS PVT.LTD.” is a bona-fide work of my own as part of our

Summer Internship Project.

I hereby acknowledge that the information is genuine to the best of my knowledge and has been collected

from reliable sources and internet.

This project report is being submitted to School of Management Studies, University of Hyderabad for partial

fulfilment of post-graduation degree of Master of Business Administration

I declare that to the best of my knowledge that this report or a part of thereof has not been earlier submitted

for the award of degree at any other Institute or University

Signature of the candidate

MUNAWAR ALI K
Roll No:20MBMA58
School of Management Studies
University of Hyderabad

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 ACKNOWLEDGEMENT

I sincerely place on record my deep and heartfelt gratitude to all those who had helped me in completion of

this project. Any faithful effort in a new work need direction and guiding hands and I acknowledge the abiding

presence and abounding days of almighty right through the execution of the project.

I would like express my sincere thanks to PRINCE ALLOYS PVT.LTD. for trusting me and giving me this

opportunity to intern for two months.

I would like to thank Dr. Pramod Kumar Mishra (Assistant Professor) School of Management Studies,

University of Hyderabad, who gave me the golden opportunity to do this wonderful project on this topic

which also helped me in doing Research.

I perceive as this opportunity as a big milestone in my career development. I will strive to use gained skills

and knowledge in the best possible way, and I will continue to work on their improvement, in order to attain

desired career objectives.

Finally, I sincerely thank all our teaching staff, family members, friends and well-wishers for their moral

support throughout the project.

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 CONTENT

Declaration 3

Acknowledgement 4

Content 6

List of figures 8

List of tables 9

EXECUTIVE SUMMARY 10

CHAPTER 1: INTRODUCTION AND RESEARCH DESIGN 11-14

1.1 INTRODUCTION 12

1.2 OBJECTIVE OF THE STUDY 13

1.3 SCOPE OF THE STUDY 13

1.4 IMPORTANCE OF THE STUDY 14

1.5 RESPONSIBILITIES 14

CHAPTER 2: NATURE OF THE JOB 15-17

2.1 DESCRIPTION & NATURE OF THE JOB 17

CHAPTER 3: COMPANY PROFILE 18-27

3.1 COMPANY PROFILE 19

3.2 INTRODUCTION OF DEPARTMENTS 22

3.3 PRODUCTS OFFERED 24

3.4 RAW MATERIALS 26

3.5 TYPES OF SCRAP SHAPES USED 27

CHAPTER 4: PROCESS & DESIGN 28-36

4.1 MANUFACTURING PROCESS 29

4.2 PROCESS DESIGN 32

4.3 PROCESS & EQUIPMENTS 33

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 4.4 UTILITIES 35

CHAPTER 5: DATA ANALYSIS & INTERPRETATION 37-49

5.1 INVENTORY MANAGEMENT 38

5.2 DATA ANALYSIS & INTERPRETATION 39

CHAPTER 6: SUMMARY,SUGGESTION & CONCLUSION 50-52

6.1 SUMMARY 51

6.2 FINDINGS 51

6.3 CONCLUSION 52

CHAPTER 7: REFERENCE 53-54

7.1 REFERENCE 54

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 LIST OF FIGURES

Figure 1: Company Infrastructure 21

Figure 2: Ingots 23

Figure 3: Mild steel ingots 24

Figure 4: Process design 31

Figure 5: Melting the charge 33

Figure 6: Water balance diagram 36

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 LIST OF TABLES

Table 1: Raw Materials 26

Table 2: Material Balance 26

Table 3: ABC Analysis Steel during 2019-2020 44

Table 4: ABC Analysis Steel during 2020-2021 44

Table 5: Economic Ordering Quantity (EOQ) For (2017-2018) 46

Table 6: Economic Ordering Quantity (EOQ) For (2018-2019) 47

Table 7: Economic Ordering Quantity (EOQ) For (2019-2020) 47

Table 8: Economic Ordering Quantity (EOQ) For (2020-2021) 48

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 EXECUTIVE SUMMARY

This internship is based on the field of process and operations at PRINCE ALLOYS PVT.LTD. This

internship is a 3-month internship to understand the practical experience happening in manufacturing

industry. Basically, PRINCE ALLOYS PVT.LTD. It is a steel manufacturing industry where semi-finished

product like ingots are manufactured. I was under the guidance of the operations manager who gave me

assistance to work with most of operations-based knowledge of the company. This internship had provided

me with the opportunity to widen my practical knowledge in the area of operations management in addition

to the theoretical knowledge gained in classes. The main challenge of the internship was to handle the

inventory management and to get in touch with what have to be done in order for the improvement of the

business. The objective of the internship was to get familiarized with concepts of operations management

from ABC analysis, ordering cost, carrying costs, Economic order quantity to supply chain strategy of the

company.

The objective of the internship is to get knowledge about what and how mainly an operations manager would

be dealing with. The quantitative research is done based on the data provided by the company during

internship. All the analysis were done for a duration of 4-5 years based on the previous data provided by the

company. After all the quantitative analysis, it was found that the company is on the right track of process

improvement compared to the previous years.

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CHAPTER-I: INTRODUCTION

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1.1 INTRODUCTION

Production/operations management is the process of combining and transforming diverse resources employed

in the organization's production/operations subsystem into value-added products/services in a regulated way

in accordance with the organization's rules. As a result, it is the part of an organization that is responsible for

converting a variety of inputs into the necessary (products/services) with the required quality level.

Production management refers to a set of interconnected management tasks that are involved in the creation

of certain products. When the same notion is applied to services management, the resulting collection of

management tasks is referred to as operations management.

Consider the items you use on a regular basis to better understand operations management in manufacturing

and production: They were all created or manufactured by someone, somewhere, and their availability

required a tremendous deal of thought and effort. Businesses know what they want to produce, but the

challenge is figuring out how to do so in a way that maximizes productivity and efficiency. This decision is

based on input from senior management's operations managers.

In today's firm, operations managers, who are in charge of directing and supervising the conversion process,

play a critical role. They own almost three-quarters of a company's assets, like as goods, pay, and perks. They

also collaborate closely with the company's other important departments, such as marketing, finance,

accounting, and human resources, to guarantee that the company produces its items profitably and that its

consumers are satisfied. Marketing personnel assist them in deciding which products to produce or services

to provide. Accounting and human resources assist them in overcoming the difficulty of combining people

and resources to deliver high-quality items on time and within budget. They work on product creation and

design, as well as determining the most efficient manufacturing techniques.

When a firm starts making a new material, it has an option in terms of the manufacturing technique it chooses.

The type of process is determined by the facilities, the personnel, and the accessible information systems.

Each method has advantages, and some are better suited to specific tasks, such as huge batches of finished

goods or small quantities of personalized things. When deciding which manufacturing process to utilize, a

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number of things should be considered: what are the volumes to be produced, what are the needs to make the

product, and does the company manufacture a similar product?

Production line, continuous flow, bespoke manufacturing, and fixed position manufacturing are some of the

main manufacturing techniques they can choose from.

1.2 OBJECTIVES OF THE INTERNSHIP

Operations interns learn the management techniques on how to lead and supervise others. Interns usually gain

experience by being an unpaid employee in the operational department. They should possess skills

like attention to detail, excellent verbal and written communication skills, and strong phone presence.

The objective of the internship is to understand following points:

• career path exploration

• work experience

• skills development

• refinement

• confidence buildup

• Practice discipline

• Improve the interaction between student and his/her ordinate or workmate

• Practice adaptability in the working atmosphere

• Observe the daily work in the host company

• Enhance the Industrial Engineering knowledge in practice by seeing the practical work in the host

company

1.3 SCOPE OF THE STUDY

An ABC analysis determines the relative value of a group of inventory items based on a user-specified

valuation criterion. "ABC" refers to the rankings you assign your items as a result of this analysis, where "A"

items are ranked higher than "B" items, and so on.

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1.4 IMPORTANCE OF THE STUDY

ABC analysis is a strategy for inventory management that assesses the value of inventory items based on

their importance to the company. Items are ranked by ABC based on demand, cost, and risk data, and

inventory managers classify items based on those criteria. This aids business leaders in determining which

items or services are most important to their company's financial success.

Class A products are the most significant stock keeping units (SKUs) in terms of either sales volume or

profitability, Class B items are the next most important, and Class C items are the least important. Some

businesses may opt for a classification system that divides things into more than just three categories. (A-F,

for example).

1.5 RESPONSIBILITIES

• Process and manage accounts receivable (A/R) billing and handle billing correspondence with the

external clients.

• Draft corrective action plans, processes/procedures, and manage changes with end-users and other

subject matter experts (SME).

• Manage a team to leverage demand planning, supply , 6 sigma strategic sourcing processes, and

negotiate vendor pricing.

• Manage SharePoint database and spreadsheet for coverage opinion bills.

• Provide independent healthcare operations consulting services for free-standing specialty clinic and

third-party administrator manage care organization.

• Coordinate completion and administration of consulting agreements and facility vendors including

janitorial and construction crews, while managing general office duties.

• Implement request template, CSS, and JavaScript changes to existing site.

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• Learned how to cater to the needs of different departments by developing communication skills that

facilitate cohesiveness between company divisions.

• Review production schedules, engineering specifications, and relate information to obtain knowledge

of manufacturing methods, procedures, and activities.

• Plan and coordinate all schedule maintenance and unscheduled maintenance/repairs to facility,

aerospace grind equipment, and install support equipment.

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CHAPTER 2: NATURE OF THE JOB

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2.1 DESCRIPTION & NATURE OF THE JOB

The school of business familiarizes each student with the business world so that they can function comfortably

in it. However, theoretical study in the classroom is insufficient; practical experience is required, and the only

way to obtain practical experience is through an internship program. There are numerous financial

institutions, commercial enterprises, and businesses in the business world that give this service to us. If we

do not have the opportunity to participate in an internship, there will be a significant gap between our studies

and our experience, which I believe is beneficial to us. We, the business students, normally do this for three

months. Many organization’s in our country, particularly banks, FMCGs, textiles, and elite business firms,

provide internships. From May 20, 2021, I began my internship at Prince Alloys PVT LTD. The internship

lasted three months. I make every effort to gain complete information and experience from this job. I'm

working under the supervision of an Operations executive, which is one of Operations management's

domains.

My job at the company required me to work under the supervision of the operations manager. He assigned

me a portion of his work so that I could see firsthand how all of the activities are managed. I was responsible

for overseeing the planning and management of a production process as well as ensuring the availability of

required materials, equipment, and labor resources for a project. In addition, I need to develop cost estimates

and a budget for a manufacturing proposal. Inspections are typically conducted by operations managers in

manufacturing organizations to ensure that production machinery is working and efficient. So, I was with my

guide all this time watching how the inspection is done. I need to facilitate maintenance, repair or replacement

of damaged equipment .My role also involves overseeing the selection and procurement of manufacturing

raw materials. . The main challenge of the internship was to handle the inventory management and to get in

touch with what have to be done in order for the improvement of the business. The objective of the internship

was to get familiarized with concepts of operations management from ABC analysis, ordering cost, carrying

costs, Economic order quantity to supply chain strategy of the company.

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As part of their responsibilities, they conduct negotiations with contractors, suppliers, and vendors to ensure

a fair bargain for goods and services.so I got an overview on how the procurement of raw materials is done.

I need to also ensure production complies with established quality control specifications and standards. My

work description also entails monitoring and supervising the activities of production personnel to ensure

effective performance of job duties. Manufacturing operations managers delegate and assign work schedules

and tasks to technical employees. i got a brief idea on how to schedule tasks to the employees. They

implement action plans to ensure a cost-effective and high quality production. My guide headed me to also

liaise with other departmental heads such as the QA manager and packaging supervisor to ensure finished

products are of the best quality. In fulfilling my role, my superior ensure manufacturing and production

personnel comply with set health and safety policies when carrying out job duties.

He asked me to motivate a manufacturing team to achieve set objectives and target by setting up rewards for

an achievement. They also organize training programs to enhance personnel job skill and knowledge.

I usually produce reports of manufacturing operations, and I need to verify that there is no mistake in the

report which was done by the operations executive.

After that, he gave me some assignments based on my learning. After running each communication

successfully, I assisted my supervisors at their works whenever it was necessary. As days passed by, I was

more attached with the company and definitely with my guide. I got appraised for many times from my guide

and that made me feel proud that my work Is adding significant value to the organization. It is an immense

pleasure to me for working in such an organization. I have enjoyed every moment in the company and

achieved so many experiences that will absolutely help me to choose my right career path.

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CHAPTER 3 : COMPANY PROFILE

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3.1 ABOUT THE COMPANY

Prince Alloys Pvt Ltd in Koppam , Palakkad is a top player in the category Steel Fabricators in the Palakkad.

This well-known establishment acts as a one-stop destination servicing customers both local and from other

parts of Palakkad. Over the course of its journey, this business has established a firm foothold in its industry.

The belief that customer satisfaction is as important as their products and services, have helped this

establishment garner a vast base of customers, which continues to grow by the day. This business employs

individuals that are dedicated towards their respective roles and put in a lot of effort to achieve the common

vision and larger goals of the company. In the near future, this business aims to expand its line of products

and services and cater to a larger client base. In Palakkad, this establishment occupies a prominent location

in Koppam. It is an effortless task in commuting to this establishment as there are various modes of transport

readily available. It is at , Near Koppam KSEB Substation Koppam Palghat Kl In, which makes it easy for

first-time visitors in locating this establishment.

Company's authorized capital stands at Rs 60.0 lakhs and has 100.0% paid-up capital which is Rs 60.0 lakhs.

Prince Alloys Private Limited last annual general meet (AGM) happened on 28 Sep, 2017. The company last

updated its financials on 31 Mar, 2017 as per Ministry of Corporate Affairs(MCA).

M/s Prince Alloys Pvt ltd, situated at Near Koppam KSEB Substation, Manneyangode Post, Koppam,

Pattambi, Palakkad. is now manufacturing mild steel ingots through induction furnace route, having capacity

of 8000kg/3000kw and proposed to upgrade to produce m.s billets.

Prince Alloys Private Limited is majorly in Manufacturing (Metals & Chemicals, and products thereof )

business from last 25 years and currently, company operations are active. Current board members & directors

are THOOPPELY KUNJU MOHAMED ABDULKARIM, ABDUL KARIM ANUB SHA, AHMED

FAIZAL SHA and ANISH SHA THOOPPELY KUNJU.

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Company is registered in ROC-Ernakulam (Kerala) Registrar Office. Prince Alloys Private Limited registered

address is 9/78 ANAPURAMKADKINASSERY P O PALAKKAD KL 678707 IN.

The last reported AGM (Annual General Meeting) of Prince T M T Steels Private Limited, per our records,

was held on 16 September, 2020. Also, as per our records, its last balance sheet was prepared for the period

ending on 31 March, 2020.

COMPANY BASIC DETAILS

Company Name PRINCE ALLOYS PVT.LTD.

Company Activity METALS, CHEMICALS & PRODUCTS

THEREOF MANUFACTURING

CIN U27106KL1996PTC009909

Registration Date 11 JAN 1996

Category COMPANY LIMITED BY SHARES

Sub Category NON-GOVT COMPANY

Company Class PRIVATE

COMPANY STATUS

RoC ERNAKULAM

Company Status ACTIVE

Is Company Listed Un-Listed

FINANCIAL DETAILS

Authorised Capital 6000000

PaidUp Capital 6000000

Last Annual General Meeting Date -

Latest Date of Balance Sheet 2016-03-31

Latest Date of Annual Report 2016-03-31

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CONTACT DETAILS

State KERALA

PIN Code 678707

Country INDIA

Address 9/78 ANAPURAMKADKINASSERY P O

PALAKKAD KERALA INDIA 678707

Email [email protected]

Fig.1 Company Infrastructure

3.2 Introduction of departments

Marketing department:

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Marketing department of steel mill is not only responsible of developing marketing plan, but it is also

responsible of designing sales policies. It also handles all type of customer related issues. Directly

interacting with customers, providing them all updates, and making sales and marketing policies

accordingly are the responsibilities of marketing department.

Personnel/HR department

The personnel department is responsible for dealing/ maintaining personal files of all officers and workers

from general managers to grade-I (workers). However, there are separate sections for officers and workers

for dealing them. It takes care of all issues from recruitment and selection to retirement of employees

including discipline related issues.

Production Planning and Control (PP&C):

The department works for planning and controlling the overall production of the products in. When marketing

department present its monthly demand to PP&C, it starts to plan the production of each product with

respect to its size, quantity and quality and other requirements as well and informs to concerned

production unit/department. PP&C is also the control unit of Prince alloys Steels who keeps the record of

raw material, under process and finished material and control overall production.

Purchase Department:

The department is responsible of whole process of procurement. It maintains and keeps record of

procurement files of all users from all departments of prince alloys steels. From generating a need of

purchasing something, either it is a small ball point or a big conveyer belt to making the purchase

order, purchase department is record keeper of all the activities performed between these two ends. We

can say that it coordinates all the departments as well as their activities including in procurement process.

Finance Department:

Finance department is responsible to manage the financial resources of Prince alloys steel in efficient

way to run the industry smoothly without any interrupt. This department tries to raise the funds in lower rates.

The main functions of finance department include scrutiny of purchase material, manage cash in-flow and
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out-flow of the industry and keep the record of the same, make projected budget on monthly, quarterly

and annually basis.

3.3 PRODUCTS OFFERED

Prince Alloys Pvt Ltd in Koppam has a wide range of products and / or services to cater to the varied

requirements of their customers. The staff at this establishment are courteous and prompt at providing any

assistance. They readily answer any queries or questions.

They are now manufacturing mild steel INGOTS through induction furnace route having capacity of

8000kg/3000kw and proposed to upgrade to produce MS BILLETS.

Ingots

fig,2 Ingots

An ingot is a piece of relatively pure material, usually metal, that is cast into a shape suitable for further

processing. In steelmaking, it is the first step among semi-finished casting products. Ingots usually require a

second procedure of shaping, such as cold/hot working, cutting, or milling to produce a useful final product.

Non-metallic and semiconductor materials prepared in bulk form may also be referred to as ingots,

particularly when cast by mold based methods. Precious metal ingots can be used as currency (with or without

being processed into other shapes), or as a currency reserve, as with gold bars.

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MS Ingots are the raw material for the rolling mill, manufacturing TMT Bars. Our manufacturing process is

based on the Induction Furnace Process, wherein MS Ingots are produced by melting Pig Iron and Sponge

Iron together in an Induction Furnace. The Molten metal is then cast into a shape suitable for further

processing. It requires a second procedure of shaping, by means of moulds to produce the final product ready

for the Rolling Mill.

Mild Steel Ingots

Fig.3 Mild Steel Ingots

Mild steel ingots are the basic raw material for manufacturing various types of rerolled products. With the

increased infrastructural activities in the country, the demand for mild steel ingots are very high now-a-days.

We offer a wide range of steel ingots for applications like forging, upsetting, and ring-rolling applications.

The product quality of our steel ingots can be ensured, with the high purity, low gas content, fine and even

texture and other performance.

Our range of ingots include Steel Ingots, Alloy Steel Ingots and Mild Steel Ingots. We also specialize in

customizing steel ingots as per the drawings and specifications provided by the clients.

Mild Steel is cheap and easy to form, basically used for remelting, alloying and manufacturing of fabrication

of steel structures. Mild steel is often used when large quantities of steel are needed.

The Steel is generally made of low Carbon and Silicon.

Mild steel has a relatively low tensile strength. Therefore, it is not used for special purposes such

as reinforcement and heavy structure manufacturing.

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3.4 RAW MATERIALS

Scrap steel and iron ore are important feed stocks in the production of steel. Scrap steel is available on the

open market as a commodity from various suppliers. The price and quality of scrap steel fluctuate and

therefore require the periodic determination of the relative usage rate for each batch of steel made in a

particular period of time. The determination of the usage rate results in an optimization programming problem

that seeks to minimize scrap purchase costs. The solution of the programming problem should indicate which

scrap supplier to purchase from, what scrap type to use, and in what lot quantities, in order to fill customer

orders and to maintain desired inventory levels for the steel producer.

Scrap

Scrap consists of recyclable materials left over from product manufacturing and consumption, such as parts

of vehicles, building supplies, and surplus materials. Unlike waste, scrap has monetary value, especially

recovered metals, and non-metallic materials are also recovered for recycling.

Raw Material Quantity (MT/Month) Source Mode of

Transport
Existing Proposed
Sponge iron 2100 3800 Abundant in Rake
Locality
M.S Scrap 500 1000 Local Truck
Ferro Silicon 1950 3400 Coimbatore Truck
Ferro Manganese 43.875 75.900 Coimbatore Truck
CPC Coke 24.375 42.200 Coimbatore Truck

Table.1: Raw Material Details

SI. No. Raw Material Input Quantity Product(s) Product

(Kg) Quantity(Kg)
i) Sponge Iron 7000 M.S Ingot 8000
ii) M.S scrap 1800 Slag & Burning 944
Loss
iii) Ferro Silicon 4
iv) Ferro Manganese 90
v) CPC Coke 50kg

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 Total 8944 Total 8944

Table.2: Material Balance

3.5 TYPES OF SHAPES USED

Punching

Punching is a shaping technique in which a punch press is used to shove a tool called a punch through a

workpiece to cut a hole. Punching can be used on a wide range of sheet materials, including sheet metal,

paper, vulcanized fibre, and some types of plastic sheet. Frequently, the punch travels through the work and

into a die. During the procedure, a scrap slug from the hole is placed into the die. This slug may be recycled

and reused or dumped, depending on the substance pierced.

Punching is frequently the most cost-effective way for making holes in sheet materials in medium to high-

volume production. Blanking is the process of creating many usable bits from a sheet of material using a

specifically shaped punch. Hot punching is a technique used in metal forging to punch work while it is still

hot. Slugging is a punching technique in which the punch is stopped as soon as the metal fracture is complete,

and the metal is left in the hole rather than being removed.

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CHAPTER 4 : PROCESS & DESIGN

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4.1 MANUFACTURING PROCESS

Scrap metal can be found in both commercial and residential settings. A "scrapper" will typically offer their

services as a quick way to get rid of scrap metal for customers who don't need it.

Wrecking yards (also known as scrapyards, junkyards, or breaker's yards) process scrap for subsequent

melting into new goods. Customers may browse and purchase items before they are sent to the smelters at a

wrecking yard, depending on its location; however, many scrap yards that deal in large quantities of scrap do

not, often selling entire units such as engines or machinery by weight without regard to their functional status.

Customers must usually provide all of their own tools and labour to retrieve parts, and some scrapyards may

require a waiver of liability for physical damage before entering. Many scrapyards also offer bulk metals

(stainless steel, for example) per weight, generally at far lower prices than comparable retail purchases.

A scrap metal shredder is frequently used to recycle products that combine steel with a range of other

elements. Automobiles and white goods, such as refrigerators, stoves, and laundry washers, are examples.

Manually sorting goods like plastic, copper, aluminum, and brass takes a lot of time. Scrapyards, unlike

wrecking yards, usually sell everything by weight rather than per item. The major value of scrap to the

scrapyard is what the smelter will pay them for it, not the worth of whatever shape the metal is in. An auto

wrecker, on the other hand, would price scrap same based on its function, regardless of its weight. If a wrecker

is unable to sell something for more than the value of the metal in it, they will usually take it to a scrapyard

and sell it per weight. Due to the scrapyard's labour savings in separating the metals before sending them to

be recycled, equipment including pieces of several metals can typically be obtained at a lower price than

either of the metals.

4.1.1 Process details

Production process consists of procuring of mild steel scrap of the type such as end cuttings, misrolls,

punchings etc. from known sources. Mixed up scrap when received in bulk is segregated in type wise as

above. Other materials such as cast iron, alloy steels, non metallic is also sorted out. scrap thus segregated

29
and sponge iron are charged into the furnace for melting. It will also be ensured that no foreign matter apart

from segregated, identifiable m.s scrap of known composition will be introduced in the furnace while

charging or melting. During the melting operation samples at ½ and ¾ level will be analyzed for carbon and

manganese percentage. A ladle sample will be taken as soon as the heat is ready for tapping and analyze all

the required elements. After ensuring the chemical composition, molten metal will be tapped at a temperature

of 1580+20 C into the ladle. After undergoing any ladle treatments, such as alloying and degassing, and

arriving at the correct temperature, the ladle is transported to the top of the caster machine where the

continuous casting process is taking place. In this process, molten metal flows from a ladle, through a tundish

into the mold. The tundish holds enough metal to provide a continuous flow to the mold, even during an

exchange of ladles, which are supplied periodically from the steel making process. The tundish can also serve

as are fining vessel to float out detrimental inclusions into the slag layer. If sold inclusion particles are allowed

to remain in the product, then surface defects may from during subsequent rolling operations, or they may

local internal stress concentration, which lowers the fatigue life. To produce higher quality product the liquid

steel must be protected from the exposure to air by a slag cover over the liquid surface in each vessel and by

using ceramics nozzles between vessels. If not, then oxygen in the air will react to form detrimental oxide

inclusions in the steel.

Once in the mold, the molten steel freezes against in the water cooled walls of a bottomless copper mold to

form a solid shell. The mold is oscillated vertically in order to discourage sticking of the shell to the mold

walls. Drive rolls lower in the machine continuously withdraw the shell from the mold at a rate or casting

speed that machine the flow of incoming metal, so the process ideally runs in steady state. The liquid flow

rate is controlled by restricting the opening in the nozzle according to the signal fed back from a level sensor

in the mold.

The most critical part of the process is the initial solidification at the meniscus, found at the junction where

the top of the shell meets the mold, and the liquid surface. This is where the surface of the final product is

created, and defects such as surface cracks can form, if problems such as level fluctuations occur. To avoid

this, oil or mold slag is added to the steel meniscus, which flow in to the gap between the mold and shell. In
30
addition to lubricating the contract, a mold slag layer protects the steel from air, provides thermal insulation,

and absorbs inclusions.

Below mold exit, the thin solidified shell (6 - 20 mm thick) acts as a container to support the remaining liquid,

which makes up the interior the strand. Water or air mist sprays cool the surface of the strand between the

support rolls. The spray flow rates are adjusted to control the strand surface temperature with minimal

reheating until the molten core is solid. After the center is completely solid (at the metallurgical length of the

caster, which is 10 - 40m) the strand is cut with oxyacetylene torches into slabs billets of any desired length,

which are dispatched for rolling into long products, such as bars, angles etc.

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4.2 PROCESS DESIGN

Fig.4: Process flow chart

32
Summary of process

M.S. ingots are made by melting scrap metal in induction furnaces and casting the resulting ingots in cast

iron moulds. M.S. scrap purchased on the open market serves as the raw material for the production of M.S.

ingots. M.S. scrap bought from the open market is used to make the requisite quantities of M.S. ingots. The

electro magnet and crane feed into furnace carry required quantities of M.S scraps from the stock yard into

the furnace yard through trucks. Manual shoveling is required at a minimum. The molten metal is put into

the cast iron moulds from the induction furnaces. After cooling, the ingots are removed from the Moulds.

4.3 PROCESS AND EQUIPMENTS

Induction Furnace

It's similar to a transformer, with the induction coil as the primary and the charge as the secondary. Capacitor

banks are placed into the circuit to improve the power factor. When compared to other types of meeting units,

the induction furnace's main advantage is its low capital cost. Its installation and operation are both relatively

straightforward. There is virtually no noise associated with its operation, and there is very little heat loss due

to rotation from the furnace because the bath is continually covered. When alloy additions are made, the

molten metal in an induction furnace is automatically circulated by electro-magnetic action to provide a

homogeneous result in the shortest time possible. The key consideration while manufacturing mild or carbon

steel in an induction furnace is maximizing the furnace's efficiency and eliminating delays.

The Charge

Scrap is the primary raw material used in the induction furnace to produce steel. The charge should be

compact, with a variety of small bits of steel scrap mixed in with clean turnings, borings, and a moderate

amount of commercial quality heavy melting. This is to create the beginning conditions for a high flux

channel across the charge, allowing for easier heat generation and melting to begin. The switches allowing

current to the induction coil are closed as soon as the furnace is charged

33
 Fig 5 : melting the charge

Melting the Charge

When the furnace is turned on, a large amount of current flows through the coils, creating an induced magnetic

field inside the central chamber where the crucible is located. The induced magnetic flux so created cuts

through the scrap mix's highly resistant route, generating a large amount of heat and causing scrap to melt.

The magnetic flux can be changed by altering the furnace's power input. The charge begins to sink as a puddle

of molten metal forms at the bottom. Any residual charges are gradually added at this stage. At a temperature

of around 1200°C to 1670°C, the scrap put into the furnace is heated and melted. Any unpleasant slag is

skimmed off as soon as the charge has melted clearly, and the appropriate alloying ingredients are added.

34
When these additions melt as well, the temperature is raised by raising the power input to the desired pouring

temperature. The current is subsequently shut off, and the molten material is put into iron moulds. The furnace

crucible is tilted using a hydraulic mechanism, and the molten material is poured into iron moulds. The

finished product, M.S. ingots, is formed once this is cooled. After that, the moulded material is rolled with a

roller machine.

4.4 UTILITIES

1)Water Demand & Its Source

The total daily water consumption will be roughly 270 KL, of which 5 KL will be used for home purposes

and 2.75 KL will be created as sewage water, which will be pumped to a septic tank and then to a soak pit.

Around 258 litres of water will be required for industrial cooling, of which 231 litres will be recycled. Water

for plantation and sprinkling will require an additional 7 KLD. The total fresh water need for cooling makeup

water and other purposes will be 39 KLD. Groundwater is the source of water.

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 Fig.6 Water balance diagram

2)Power Demand & its Source

Power distribution includes the electric power supply and distribution for a steel ingot mill with auxiliaries,

as well as the illumination system for the in-plant and outdoor areas, including internal road lighting.

WBSEDCL is the power provider. Currently, the existing plant receives HT 3.4 MW of electricity, but after

expansion, the power need will be increased to 6 MW. In the event of an emergency or power outage, a 125

kVA D.G. set is also used. For the D.G. set, diesel will be used as a fuel.

36
CHAPTER 5 :DATA ANALYSIS & INTERPRETATION

37
5.1 INVENTORY MANAGEMENT

Inventory management is the practise of keeping track of assets created in the normal course of business for

the purpose of selling. Inventories include raw materials, work in progress, and finished goods. The goal of

good inventory management is to lower total costs of stock holding, both direct and indirect costs. The amount

of money invested in inventory, on the other hand, determines the value of inventory management to a

company. India's steel sector is booming as a result of rising global and domestic demand. The Indian steel

industry has risen to prominence as a result of the country's rapid economic growth and rising demand from

local and international sectors like as infrastructure, real estate, and automobiles. According to the latest

report from the International Iron and Steel Institute, India is the world's tenth largest steel manufacturer

(IISI).

There are three types of steel producers in India: primary producers, secondary producers, and other major

producers. The top five producers are Tata Steel, SAIL, and RINL, with ESSAR, ISPAT, and JVSL rounding

out the top five. The secondary sector is spread and consists of the following:

1. backward linkage from approximately 120 sponge iron producers who use iron ore and non-coking coal as

feedstock for steel producers;

2. approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces, and energy optimising

furnaces that use iron ore, sponge iron, and melting scrap to produce steel

3. Forward linkage with about 1,200 re-rollers that roll out semis into finished steel products for

consumer use.

India was the world's second-largest steel producer in 2018, producing 106.5 MT of steel. The rise of the

Indian steel industry has been spurred by the domestic availability of raw resources. Examples of such

resources include iron ore and low-cost labour. As a result, the steel sector has had a long history of prosperity.

Manufacturing production from India is a significant contributor. Steel production capacity in India has

grown. Production climbed to 137.975 million tonnes in FY19. As of 2018, India has the world's second-

largest economy. a producer of crude steel (up from the eighth spot in 2003). The Indian steel sector is cutting-

edge, with cutting-edge steel mills. It has always strived for continuous modernization and

up-gradation of older plants and higher energy efficiency levels. Indian steel industries are

38
classified into three categories such as major producers, main producers, and secondary

producers.

India’s finished steel consumption grew at a CAGR of 5.69 percent during FY08-FY18 to reach 90.68

MT. India’s crude steel and finished steel production increased to 106.56 MT and 131.57 MT in 2018-

19, respectively. In FY20 (till November 2019), crude steel and finished steel production stood at 73.17

MT and 67.52 MT respectively. During 2018-19, 6.36 MT of steel was exported from India. Exports and

imports of finished steel stood at 5.75 MT and 5.07 MT, respectively, in FY20P (up to November 2019).

In FY20 (till November 2019), crude steel and finished steel production stood at 73.17 MT and 67.52 MT

respectively. During 2018-19, 6.36 MT of steel was exported from India. Exports and imports of finished

steel stood at 5.75 MT and 5.07 MT, respectively, in FY20P (up to November 2019).

5.2 DATA ANALYSIS & INTERPRETATION

The Prince alloys PVT LTD uses several types of inventories. Inventory management is an attempt to

control the quantity and value of the inventory. Inventory management process state with classification of

different type of inventories to determine the degree of control required for each.

ABC Analysis:

The ABC approach is an analytical stock control method that focuses efforts on the items that require the

most attention. It is based on the assumption that only a small percentage of inventory items represent the

bulk money value of all materials used in the manufacturing process. While a relatively significant number

of things may represent a small percentage of the money worth of stores used, that small number of items

should be subjected to the highest level of continuous control possible. The materials on hand can be divided

into a variety of groups based on their importance under this method. i.e., the value and frequency with which

they are replaced throughout time. The first category, which we'll name the group of 'an' items, may make up

a small fraction of total products handled, but its total value may account for a significant amount of total

stock value. The second category, referred to as the 'B' group of items, may be less significant. All remaining
39
stock items that are quite vast in number but have a low value may be put in the third group, which consists

of 'c' items.

Categories of ABC analysis

In ABC analysis the items are classified in three main categories based on their respective

consumption value.

1. Category ‘A’ items: The items, which are most costly and classified as 'A' nearly 10% of

the total number of items stored will account for 70% of total value of all items stocked.

2. Category 'B' items: The items having average consumption value are classified as 'B'

nearly 20% of total value. Statistical sampling is general useful to control them.

3. Category 'C' items: The items having low consumption value are put in category "C"

nearly 70% of total number as items will account for 10% total value. Generally these items

are slow and non-moving items in the stores, which are frequently used for production

process but with more quality.

Advantages of ABC Analysis

• Closer and stricter control on those items that represent a major portion of total stock

value.

• Investment in inventory can be regulated and funds can be utilized in the best possible

manner.

• Saving in stocks carrying costs.

• Helps in maintaining enough safety stock for "C" category of items.

• Scientific and selective control helps in the maintenance of high stock turnover rate.

40
5.2.1 Classification and Codification

Classification of materials: Materials of a similar kind are grouped together in key groupings. These

groups are further divided into a variety of subgroups, such as soap, lubricating oil, cotton waste, and so on.

Raw materials, such as metals, are divided into 'ferrous' and 'non-ferrous' metals, and so on.

Codification of materials: In general, classification and codification are synonymous. Codification is the

process of creating unique symbols for each store item. These symbols can be either numeric or alphabetical.

Codes are the names given to these symbols. As a result, each substance has a code in addition to its own

name.

Advantages of Codification

▪ Codification has the following advantages

▪ Ambiguity in description is avoided.

▪ Length in description is minimized.

▪ Codification is essential in mechanized accounting.

▪ Codes also ensure secrecy.

▪ Each item of stores is easily identified particularly where the same item is known by more

than one name.

Stock Levels: An important necessity for successful material control and to minimise overstocking and

understocking of materials is to decide on several levels of materials, such as maximum level, minimum level,

and re-order level. By acting in accordance with these levels. Each item of material will be automatically held

within the relevant control limit. These levels are not permanent, and they must be revised in response to

changes in the conditions that govern them.

Factors

The following factors help in the fixation of these levels:

• Rate of consumption of materials.

41
• Lead the time, i.e., time lag.

• Storage capacity.

• Availability of funds for investment in inventories.

• Cost of storage.

• Risk of loss due to deterioration theft, fire etc.

• Seasonal factors - certain materials are cheaply available during certain seasons.

• Fluctuations in market price.

• Insurance costs.

The maximum stock level refers to the amount of materials above which no item's stock should be allowed

to rise. In some exceptional circumstances, this maximum threshold may be exceeded. For example, if a

certain lot was purchased at a low price, the maximum level could be exceeded. This level is determined after

considering the following factors:

• Rate of consumption of material.

• Amount of capital needed and available.

• Storage space available.

• Incidence of insurance costs which may be important for some materials.

• Costs of obsolescence and deterioration and Re-order quantity.

The formula for computing maximum level is as follows

Maximum level = Re-order level + Re-order quantity - (Minimum Consumption * Minimum

re-order period)

Minimum Level

The minimum level of a stock is the lowest point below which it should not ordinarily fall. This is effectively

a safety stock that will not be touched in most cases. However, if any item falls below this level, there is a

risk of production halting, thus management should prioritise the procurement of new supplies. The following

variables are taken into account while determining this level.

• Rate of consumption

42
 • The time required under top priority condition to acquire enough supplies to avoid a stoppage in

production.

Formula for computing minimum level is as follows

Minimum level = Re-order level - (Normal consumption *Normal re-order Period)

Ordering level (or) re - order level

This is the material level at which a fresh material order will be placed. To put it another way, this is the level

at which a purchase requisition is created. This level will be set somewhere in the middle of the range between

maximum and least. By re-ordering when stocks reach this level, new supplies will arrive just before the

minimum level is achieved in the natural course of events. It is determined after taking into account the rate

of consumption.

1. Minimum level.

2. Delivery time and

3. Variation in delivery time.

Formula for computing Ordering level (or) re - order level is as follows

Re-order level = (maximum consumption * maximum re-order period

Average stock level

This is computed with the help of the following formula

Average stock level = minimum level + ½ of re-order quantity.

Danger level

It is that level below which stock should not be allowed to fall except under emergency

conditions. When stock reaches this level urgent action for purchases is initiated.

Formula for computing danger level

Danger level = average consumption * maximum re - order period for emergency purchase.

Economic Order Quantity (EOQ)

The economic order quantity is that inventory level, which minimizes the total of ordering

costs and carrying costs. It is the question, how much to order the quantity when inventory is

replenished. If the firm buying raw materials, this is to purchase the quantity of each
43
replenishment and if it has to plan for production run, it is how much production to schedule.

It may be solved through EOQ.

EOQ Involves Two Types of Costs

• Carrying Cost

• Ordering Cost

Ordering Cost: Ordering cost is referred to as the cost of placing an order and securing the

supplies. Ordering cost depends upon the number of orders placed and a number of items

ordered at a time. Higher will be the ordering cost when frequent orders are placed. Similarly,

lesser the ordered quantity, higher the ordering cost.

Carrying Cost: Carrying cost or holding cost refers to the cost of keeping the materials

which includes capital cost, cost of storage and cost of deterioration and redundancy. Larger

the volume of inventory, higher the inventory carrying cost and vice versa.

EOQ For an item is arrived on the following assumptions.

• Demand is continuous at a constant rate

• The process continues infinity

• No constraints are imposed on quantities ordered, storage capacity, budget etc.,

• Replenishment is instantaneous.

• All cost is time invariant.

• No shortages are allowed.

• Quantity discounts are not available.

EOQ for an item is arrived by the following formula

EOQ = Economic order quantity

AC = Annual consumption of an item

44
Co = Cost of ordering an order

Ch = Cost of carrying one unit / year

ANALYSIS

ABC ANALYSIS

REQUIRED % OF REQUIRED NO.OF % OF

CLASS VALUE
QUANTITY(Tones) QUANTITY(Tones) ITEMS VALUE(Rs)

A 2746.24 84.18 10 87673270 97.37

B 40999 12.48 20 1918921 2.13

C 10950 3.33 29 452604 0.50

Total 328373 100.00 59 90044795 100.00

Source: Published Annual Reports of Prince Alloys PVT.LTD.

Table 3: ABC Analysis Steel during 2019-2020

Inference: Every year the company will take regular items. So, the percentage of ABC classification will

be the same. The required quantity of ‘A’ Class is 276424 and ‘B’ 40999 and ‘C’ 10950 the percentage of

“ABC” is 84.18%, 12.48% and 3.33% the number of “ABC”is 10,20,29 and the value these items is

87673270, 1918921, and 452604 and the total is 90044795. And the percentage of the value is 97.37,

2.13, 0.50 and the total percentage Is 100.

REQUIRED
% OF REQUIRED NO.OF % OF
CLASS QUANTITY VALUE
QUANTITY(Tones) ITEMS VALUE(Rs)
(Tones)

A 454211.17 59.49 10 17180855 75.61

B 68725.41 9.00 20 4122174 18.41

C 240612.32 31.51 30 1418652 6.24

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 Total 763548.9 100.00 60 22721681 100.26

Source: Published Annual Reports of Prince Alloys PVT.LTD.

Table 4: ABC Analysis Steel during 2020-2021

Inference: Every year the company is taking regular items. So, the percentage of ABC

classification will be the same. The required quantity of ‘A’ Class is 454211.17 and ‘B’

68725.41 and ‘C’ 240612.32 the percentage of “ABC” is 59.49%,9% and 31.51% the number

of “ABC” is 10,20,30 and the value of these items is 17180855, 4122174, and 14186552 and

the total is 22721681. And the percentage of the value is 75.61, 18.41, 6.24 and the total

percentage is 100.

EOQ ANALYSIS

S. Annual Ordering Carrying EOQ

Description
No. Demand Cost Cost (Rs.) (Tons)
(Tons) (Rs.)

1 Polyroplyene Compolymer 2,21,157 1,52,047 4,18,132 401

(RAD- MSP-035)

2 Lead Antimony (3.1) Alloy 3,86,174 3,23,955 8,90,878 529

3 12.25 COPPER WIRE 62,052 2,31,855 6,37,601 212

4 Recycled PPCP Pelletes 1,65,019 97,910 2,69,253 346

(Other Than B & W)

5 Antimony Trioxide (INDSTARRG) 22,830 72,871 2,00,397 129

6 DECO-Bromide 45,661 86,861 2,39,144 182

7 Runners SCRAP-PPC Black 53,731 36,940 1,01,587 190

8 20 x 2mm Copper Flats 10,568 35,508 97,648 891

9 POLY Carbonate Resin (XENOY) 14,391 32,029 88,063 102

10 50sqmm elastomeric black colour sccc 7,885 29,209 80,326 76

Source: Published Annual Reports of Prince Alloys PVT.LTD

46
 Table 5: Economic Ordering Quantity (EOQ) For (2017-2018)

S. Annual Ordering Carrying EOQ

Description
No Demand Cost Cost (Rs.) (Tons)
(Tons) (Rs.)

1 Polyroplyene Compolymer 2,55,182 1,75,439 4,82,460 431

(RAD- MSP-035)

2 Lead Antimony (3.1) Alloy 4,15,8800 3,48,875 9,59,407 550

3 12.25 COPPER WIRE 66,826 2,49,690 6,86,648 220

4 Recycled Ppcp Pelletes 1,91,713 1,05.441 2,89,965 373

(other than B & W)

5 Antimony Trioxide (INDSTARRG) 24,586 78,477 2,15,812 134

6 DECO-Bromide 49,173 93,650 2,57,539 191

7 Runners SCRAP-PPC Black 57,864 39,782 1,01,587 205

8 20 x 2mm Copper Flats 11,381 38,239 1,05,160 91

9 Poly Corbonate Resin (XENOY) 15,498 34,816 95,746 106

10 50sqmm elastomeric black colour sccc 8,491 31,456 86,505 79

Source: Published Annual Reports of Prince Alloys PVT.LTD.

Table 6: Economic Ordering Quantity (EOQ) FOR (2018-2019)

47
S. Annual Ordering Carrying EOQ
Description
No. Demand Cost Cost (Rs.) (Tons)
(Tons) (Rs.)

1 Polyroplyene Compolymer 2,72,194 1,87,135 5,14,624 445

(RAD- MSP-035)

2 Lead Antimony (3.1) Alloy 4,75,291 3,98,719 10,96,478 588

3 12.25 Copper Wire 76,372 2,85,360 7,84,740 236

4 Recycled PPCP Pelletes 2,19,100 1,20,504 3,31,388 399

(other than B & W)

5 Antimony Trioxide (INDSTARRG) 28,098 89,688 2,46,643 143

6 DECO-Bromide 56,198 1,07,029 2,94,331 202

7 Runners SCRAP-PPC Black 66,130 45,465 1,25,030 219

8 20 x 2mm COPPER FLATS 13,006 43,702 1,25,183 97

9 Poly Carbonate Resin (XENOY) 17,712 39,790 1,09,425 113

10 50sqmm elastomeric black colour sccc 9,704 35,949 98,862 86

Source: Published Annual Reports of Prince Alloys PVT.LTD.

Table 7:Economic Ordering Quantity (EOQ) FOR (2019-2020)

48
S. Annual Ordering Carrying EOQ
Description
No Demand Cost Cost (Rs.) (Tons

(Tons) (Rs.) )

1 Polyroplyene Compolymer 2,892,637 1,946,857 5,353,857 1,450

(RAD- MSP-035)

2 Lead Antimony (3.1) Alloy 3,332,951 2,305,090 6,338,997 1,556

3 12.25 Copper Wire 80,033 3,05,110 8,39,053 241

4 Recycled PPCP Pelletes 254,136 1,04,769 2,88,116 430

(OTHER THAN B & W)

5 Antimony Trioxide (INDSTARRG) 28,510 82,535 2,26,972 144

6 DECO-Bromide 55,949 1,02,913 2,83,010 202

7 Runners Scrap-PPC Black 166,095 8,305 22,838 348

8 20 x 2mm Copper Flats 22,291 87,144 2,39,646 127

9 Poly Carbonate Resin (XENOY) 35,424 115,004 3,16,261 161

10 50sqmm elastomeric black colour sccc 14,340 38,303 1,05,333 102

Source: Published Annual Reports of Prince Alloys PVT.LTD.

Table 8: Economic Ordering Quantity (EOQ) FOR (2020-2021)

Inference: In all the above years the indigenous items polypropylene co-polymer (RADMSPO35),

lead antimony (3.10) alloy, 12.25 copper wire, recycle ppcp pellets (other than B&W), antimony

trioxide (INDSTRARRG), Deco-Bromide, Runner scrap- ppc black, 20x2mm copper

flats, polycarbonate resin (xenoy) 5050sqmm Elastomeric black colour SCCC is increased by year

i.e., 2017-2021.

49
CHAPTER 6: SUMMARY, SUGGESTION & CONCLUSION

50
6.1 SUMMARY

It was found that the company is consuming same raw-material as per ABC Classification as ‘A’ Class

items ‘B’ class items and ‘C’ class items.

• Basically, the company was running on the basis of job work so, inventory management is not

given that much importance.

• Even the carrying cost is looking high i.e., 2.75% which constant for 4 years as it had a greater

impact on inventory maintenance cost.

• In general, when orders increase automatically EOQ decreases which inversely proportional. EOQ

for the past 4 years shows that the company is going for fewer orders.

• Generally, it is a known fact that the annual consumption of raw-materials increases year by year

as companies, growing. In such a way annual consumption from 2015-2016 to 2018-2019 has also

increased.

6.2 SUGGESTIONS

• As the company converted into own sales it should have its own inventory policy which can

produce better results by minimizing costs.

• The company has to implement a “JIT” (just in time) policy, which literally reduces inventory

cost.

• As of company is going for wide expansion in JSW STEEL -1 and JSW STEEL -2, it should

pay much more attention to research & development.

• A company is already maintaining ERP packages. But an employee also has to be given firm

training regarding that.

51
 • Even though inventory conversion the period is moderately good, still there are a lot of scopes

to improve it.

6.3 CONCLUSION

Optimum inventory is the goal of every organization. Over inventory and under inventory, both

cause financial impact and health of the business as well as effective business opportunities. The steel

industry is always an important part of the national economy in our country, which is the leading industry

to realize speeding up industrialization. Most countries that have implemented industrialized in the world

are almost putting priorities to develop basic industries including the steel industry. Our country also invests

a large number of money through a variety of financing channels, in order to improve the competitiveness

of the steel industry. The company is following inventory management techniques like EOQ, ABC analysis

can increase its profits. By supplying the finished products at reasonable prices to the customers and thus

increase its period of existence in the market. It can be concluded from the analysis that the company

inventory position is up to some extent satisfactory. The Indian steel industry plays a significant role in the

country’s economic growth. The major contribution directs the attention that steel is having a stronghold in

the traditional sectors, such as infrastructure & construction, automobile, transportation, industrial

applications, etc.

52
CHAPTER 7 : REFERENCE

53
7.1 REFERENCE

• Operations Management by William J Stevenson 12th edition.

• Operations and Supply chain management by F.Robert Jacobs and Richard B.Chase
• Data from Prince Alloys PVT.LTD.

54