A Run

Every Home, Every Where
With
Pride… Passion… &…Performance…
PREFACE

With
Pride…. Passion…. &…Performance….
With deep sincerity and immense sense of pleasure, I had completed my

training at this technically marvelous plant of WHIRLPOOL OF INDIA
LTD. (FRO)
The purpose of training is to develop skills of performing
Work effectively and efficiently .I feel that the training at Whirlpool is
different than the other industries in the manner that here you are given
the opportunity to meet the challenges of routine work.
It also develops favorable attitude on the part of trainee in regard
to actual job requirement in management skills, industrial and human
relations. My two months of training at this plant gave me enough
opportunity to fulfill the above stated needs of industrial training and I
utilized the same with best of my efforts.
ARUN JEVARIA
1
With
ACKNOWLEDGEMENT
In the modern technical education set-up more stress is being laid
on practical experience of students. For this purpose, various workshop
practice and industrial trainings are arranged for management students.
After 2nd semester, I had undergone summer training at WHIRLPOOL
OF INDIA LTD. FARIDABAD REFRIGERATION
ORGANIZATION (FRO) Faridabad, Haryana.
I am extremely grateful to Mr. Sanjay Aggarwal,
Senior Manager (Finance), Mr. Pawan Kumar (Manager), Mrs. Reena
Aggarwal (HR. Manager) Mr. Naresh Johar (Deputy Manager), Ms
Sarika Shukla (Sr. Executive) for their valuable support and guidance
during my training period. My sincere thanks to all the people of finance
department who had given me opportunity to work with such a world
class company and helped me a lot to complete my curriculum.
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CONTENTS
Page Nos.
 Company Profile............................................................... 5
 Product Profile.................................................................. 37
 Research Methodology...................................................... 50
 Information from SAP...................................................... 52
 Project 1 Evaluation of fixed Assets
• Introduction to Fixed Assets .............................................. 58

• Findings .............................................................................. 63
• Recommendations............................................................... 69
 Project 2 Movement of Inventory in Whirlpool
• Introduction ......................................................................... 71
• ABC Analysis....................................................................... 75
• Perpetual Inventory System................................................. 77
• Kanban................................................................................. 78
• Milkrun................................................................................ 82
• JIT....................................................................................... 84
 Recommendations
 Limitations......................................................................... 88
 Annexure............................................................................ 89
3
With
Sanjay Aggarwal (Senior Manager)
Pawan Kumar
(Manager) Naresh Johar Surender Bisht Kamal Sehgal
(Deputy Manager) (Senior Executive) (Sr. Executive)
Sarika Shukla
(Sr. Executive)
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With
COMPANY PROFILE
The Refrigeration industry in India is fast growing and with the advent of global
brands the industry has woken up to new opportunities and new challenges.
Whirlpool’s association with India goes back to the year 1987 with the establishment
of the joint venture TVS Whirlpool Ltd.
Whirlpool Corporation is the world’s leading manufacturer and market of
major home appliances the industry is fast growing. There has been a rapid entry of
global brands which has resulted in local infrastructure / industry waking up to
opportunity and of course the threats.
Whirlpool plans to launch products to suit the Indian customer in various

income groups. Whirlpool portfolio will follow its top-4 agenda in India:
• Refrigerators,
• Washing machines,
• Air conditioners
• Microwaves
All high growth areas, which allow it to leverage WOI’s existing strengths.
The Whirlpool products currently available in the market include Refrigerators and
washing machines. Whirlpool guarantees performance, promise and reliability of its
products. Suitable warranties and a wide network of service centers back all
Whirlpool products. Emphasis is placed on after sales service and whirlpool strives to
achieve those goals.
In refrigerators the industry growth has been less than 27%. The 165L occupy
around 75% segment of market. The main players in the market are LG, Godrej, BPL,
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With
Whirlpool, Electrolux, Samsung and Videocon. Whirlpool has a market share of

about 30% and is the market leader.
THE WHIRLPOOL MISSION STATEMENT
 WE WILL BE DEMANDING OF OURSELVES SO AS TO CARE FOR OUR CUSTOMERS LIKE NO OTHER

BRAND DOES.
 WE WILL SERVE WITH PRIDE IN EVERY INDIAN HOME AND BRING PROSPERITY TO OUR
INVESTORS.
 WE WILL DARE TO CHANGE THE STANDARDS OF OUR INDUSTRY AND BE THE ENVY OF OUR
COMPETITORS.
 WE WILL BE THE LEADER IN HOME APPLIANCES WITH ALL OTHERS WILL WANT TO EMULATE.
ABOUT WHIRLPOOL CORPORATION
Whirlpool Corporation is the world’s leading manufacturer and

marketer of major home appliances. Headquartered at Benton Harbor, Michigan, the
major brand names in about 140 countries. Though now a global leader, the company
began as a family owned machine shop located in a small town on eastern shore of
lake Michigan.
THE HISTORY
♦ Founded in 1911 as Upton Machine Company produced motor driven wringer
washer.
♦ Sold first order of washers in 1916 to Sears Roebuck and Co- our largest retail
customer today.
♦ In 1950 the company was renamed the ‘The Whirlpool Corporation – automatic
dyers were added to washer line.
♦ In 1958 Whirlpool made it’s first investment outside North America in Brazil.
Revenues reached $ 1 billion in 1968.
♦ Whirlpool purchased ‘Kitchen Aid’ brand in 1986 and began its globalization
efforts in 1980’s.
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With
WHIRLPOOL CORPORATION TODAY.

♦ World’s leading manufacturer and marketer of major home appliances.
♦ Full line of major home appliances.
♦ Manufacturer: 12 countries.
♦ Revenue: $ 12 billion.
♦ Employees: 45000 worldwide.
THE WHIRLPOOL VISION

‘EVERYHOME, EVERYWHERE
WITH
PRIDE, PASSION AND PERFORMANCE’
Whirlpool, in its chosen lines of a business will grow with new

opportunities and be the leader in an ever-changing market. We will be driven by our
commitment to continuous quality improvement and to exceeding all our customer’s
expectations. We will gain competitive advantage through this by building our
existing strengths and developing new competencies. We will be market driven,
efficient and profitable. Our success will make Whirlpool a company that worldwide
customers, employees and stockholders can depend on.
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With
Core Competencies
• Innovation: Unique and compelling solutions valued by our customers and
aligned to our brands create competitive advantage and differentiated
shareholder value.
• Operational Excellence (OPEX): A methodology for solving problems &

continuous improvement of products & processes through pursuit, acquisition,
and utilization of knowledge using critical thought and planned
experimentation helps us achieve operational excellence.
• Customer Excellence: Excelling the customer expectation from the company,

its brands, products and services are a three-step process. The three steps are:
Know a customer, be a customer, Serve a customer.
• Knowing a customer helps us know who our customers are, how to treat them,
how we add value, and what the drivers of brand loyalty are. This information
is gathered from the customer's data base history. This way we are better able
to customize products for them and recommend the right product to solve
problems. Being a customer is important to share customer knowledge and
insights, drive actions based on customer insights, be passionate about our
brands and customer loyalty and provide a positive voice for our brands. We
show empathy for customers and seek to resolve their problems by creating
consistent customer touch-points, with our endeavor always being to provide
unique solutions for the customer.
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THEN WHIRLPOOL WENT THE GLOBAL WAY.
Whirlpool strategy has been to remain focused on major home

appliances but to expand into markets not already served by Whirlpool. The goal has
been world leadership in a rapidly globalize major appliances industry.
Before Whirlpool began its expansion into Europe, a move that established the
company as a world leader in major home appliances, it undertook a global analysis
of markets and opportunities in home appliance industry. A conclusion was that the
industry would, over time, become global and a handful of companies would
dominate the manufacturer and the sale of home appliances. Whirlpool determined to
lead that globalization process and be one of those companies.
In 1980’s there was a major acquisition in Europe, joint ventures with
companies in Mexico and India and increased ownership in companies in Canada and
Brazil. Throughout the early 90’s the company continued its expansion in Latin
America and Europe and a manufacturing and marketing presence was established in
Eastern Europe.
In Asia, Latin America, North America and Europe, in all the

countries where it has presence was established in Eastern Europe. In Asia, Latin
America, North America and Europe, in all the countries where it has a presence,
Whirlpool seeks to set standards against which the global major domestic appliance
industry is measured. To that end the company vigorously pursues the goal of its
worldwide excellence system (WES).
Whirlpool’s strategy to shape and lead the emerging global home appliance industry
is working because the company consistently improves the quality of its products and
services while refining its understanding of customers and what they want from
whirlpool.
WHIRLPOOL IS POSITIONED GLOBALLY
North America #1
Latin America #1
Europe #3
Asia #Leading Western Company
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With
WHIRLPOOL IN ASIA
In 1992, the company decided to focus on the significant growth
opportunities in Asia and Latin America. As a result, stand-alone business unit was
established in these two major regions of the world. Thus the Whirlpool Asian
Appliances Group (WAAG) was formed.
In 1993, WAAG began a series of moves to increase its presence
in Asia and position the company to aggressively pursue potential business
opportunities throughout the region.
The company has been aggressively pursuing its Asian Strategy, which focuses on:
• Partnering to build win – win relationships.

• Attracting, retaining and developing the best people.
• Ensuring quality in all respects of business.
• Offering four key products: refrigerators, washers, microwaves and air
conditioners.
• Exceeding customer needs and satisfaction.
Also in 1994 Great Techo Whirlpool Ltd. A marketing joint venture in Taiwan was
formed with great Techo Trade Co. Ltd.
In 1995 Whirlpool entered the fast growing home appliance market in the
People’s Republic of China through four majority owned joint ventures.
From a small volume exporter to niche markets thirty weeks ago, WAAG today
comprises 12000 people in 25 countries. With six manufacturing sites in India and
China and more coming up and over $US350 million in investments, Whirlpool is
well on it’s way to achieving its objectives in Asia.
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With
Whirlpool Corporation in Asia
Whirlpool Corporation is the leading major home appliance

manufacturer among western companies in Asia and is number one in
India. Its presence in Asia is concentrated in India, China and other
countries in the Asia Pacific area.
Key Statistics:
• Leader among Western companies, with No. 1 market position in India

• $457 million in 2006 sales
• Approximately 4,820 employees
Brands:
Whirlpool, Maytag, Kitchen Aid
Principal Products:
Air Conditioners, Compressors, Microwave Ovens, Refrigerators, Automatic Washers
Headquarters:
565 Jin Gang Road
Jingqiao Export Processing Zone
Pudong New Area
Shanghai, PRC 201206
Manufacturing Locations
India Faridabad, Pune, Pondicherry
China Shanghai, Shunde
Regional Offices:
Hong Kong
Singapore
New Delhi, India
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WHIRLPOOL IN INDIA
Whirlpool’s association with India goes back to the year 1987 with the
establishment of joint venture TVS Whirlpool Washing Machines Ltd. Headquartered
at Madras, with manufacturing base in Pondicherry, Whirlpool management expertise
and transfer of technology has helped to expand manufacturing capabilities and
product lines for increased market shares throughout region.
On February 24, 1995, Whirlpool acquired controlling

interest in Kelvinator of India, traditionally the countries largest manufacturer and
marketer of refrigerators. With the manufacturing base in Faridabad, Haryana this
association has also yielded a network over 3500 trade dealers.
Whirlpool is now selling the Whirlpool brand and Opera Brand Refrigerators,
replacing the Kelvinator brand name, with the largest investor in MDA industry in
India with financial commitments in access of INR 350 crores. Whirlpool sees a
tremendous opportunity in white good segments in India. The emerging market holds
promise and we believe that estimates of market potential are yet to be defined totally.
To meet the growing trend Whirlpool is expanding its local production capabilities in
both Washing Machines and refrigerators.
A new project in the Global No-Frost refrigerator plant in Ranjangaon, Pune,

plant will manufacture no frost CFC Free Refrigerators. The product form this plant
will specifically be designed for the Indian consumer and is backed with latest world-
class technology.
Whirlpool plans to launch products to suit consumers in various income

groups. Fridge and washing machines is just the beginning.
Whirlpool’s portfolio will follow it’s ‘Top_4’ agenda in India: refrigerators, washing
machines, air- conditioners and micro waves – all high growth areas, which allow it
to leverage WOI’s existing strengths.
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WHIRLPOOL’S GOAL IN INDIA
TO BECOME THE MOST PROFITABLE PRODUCER OF T-2 PRODUCTS;

REFRIGERATORS AND WASHING MACHINES, IN INDIA.
MANUFACTURING FACILITIES
Whirlpool has manufacturing facilities at three places:
Washing Machines Pondicherry, Madras Started April’94

Refrigerators Faridabad, Haryana Started Feb’95
CFC free ref. Ranjangaon, Pune Started March’98
WHIRLPOOL SHARES AND LISTING

Whirlpool of India.
Key Dates
Year Ending Month Mar
AGM Date (Month) Aug
Book Closure Date (Month) Aug
Listing Information
Face Value Of Equity Shares 10
Market Lot Of Equity Shares 1
BSE Code 500238
NSE Code KELVINATOR
BSE Group B1
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Whether The Company Forms A Part Of The Following Indices -

Sensex No
Nifty No
BSE-100 No
BSE-200 No
CRISIL-500 No
CRISIL MIDCAP-200 No
CNX FMCG No
Date Of Demat Status

Demat Scrip - NSDL (Mandatory) Jun 26,2000
Demat Scrip - NSDL (Total Lot) N.A.
Listed On Mumbai
BSE: 500238
NSE: KELVINATOR
Reuters: WHIR.BO WHIR.NS
Source: www. capitalmarket.com

http://www.moneycontrol.com/stocks/companydetails/hist_graph.php
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With
BRAND AMBASSADORS
Beautiful and Vivacious – Kajol
Like a fresh breath, Kajol wafted into the film world that thrived on
predetermined codes of demeanor. She carries the halo of
spontaneity. Kajol has made a distinctive indent into the Hindi film industry. Kajol is
outstanding in her acting. The flexibility of her acting can be seen from the various
characters done by this natural actress.
On association with Whirlpool:
"Whirlpool believes in providing world-class quality to its consumers. Whirlpool is a

'‘Perfect partner to the demanding homemaker' of today. Whirlpool's products are
stylish, modern and contemporary with elegant looks and reflect the sense of pride
homemakers take in choosing them for their homes."
The intense emotional hero – Ajay Devgan
Ajay Devgan, known more for his intense acting abilities carved a
niche for himself as an actor. Ajay is one actor who has gained stardom on the merit
of his performances, not based on Bollywood-style good looks.
On association with Whirlpool:
"Whirlpool brand has successfully emulated the dreams, aspirations and expectations
of Indian home maker through the years. It symbolizes a relationship based on
equality, love and romance, which is why I agreed to represent the brand," declares
Ajay Devgan. " We are very pleased to be associated with Whirlpool – the leaders in
home appliances”, he adds.
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Organisation Structure
Board of Directors
Mark Hu (Chairman)
Arvind Uppal (Managing Director)
Robert Lawrence Mink
Mahesh Krishna
S.J. Scarff
Anand Bhatia
Audit Committee
Anand Bhatia, Chairman

S.J. Scarff
Mark Hu
Directors Remuneration Committee

S.J. Scarff
Mark Hu
Investors Grievance Committee

Arvind Uppal
Mahesh Krishna
Share Transfer Committee

R.S. Narayan
Ravi Sabharwal
Seema Narang
New Share Certificate Committee

Robert Lawrence Mink, Chairman
Arvind Uppal
Mahesh Krishna
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WHIRLPOOL IN FARIDABAD
On February 24 th 1995; Whirlpool acquired controlling interest in

Kelvinator of India, traditionally the country’s largest manufacturer and marketer of
refrigerators. With the manufacturing base in Faridabad, Haryana, this association
also yielded a network of over 3500 trade dealers.
Whirlpool is now selling, the Whirlpool brand refrigerator, replacing
the Kelvinator brand name, with the later having reverted to Electrolux in the early
1997.
PRODUCTION CAPACITY IN FRO PLANT
The production capacity in Faridabad Refrigeration Organisation Plant (FRO) is

1095000 lakhs annually.
Whirlpool is expanding its local production capacities in both washing machines and
refrigerators
Component Supplier
1. Compressor Tecumseh
2 CRCA Steel Bushan Steel
3. Masterbatch SCJ, Alok
4 HIPS Granules Supreme
5. Wireharness Dudeja & Delton
6. Condesnsor STI
7 Packaging Box & Carton, Kemeka
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RAW MATERIAL AND POWER CONSUMPTION
Whirlpool of India, Faridabad caters to its power requirements through its own
powerhouse, which has 7 DG sets out of which 4 remain functional at a time. It also
consumes electricity from Haryana Electricity board.
Its monthly power requirement is around 1000000 KW/hr per

month out which it takes wound 200000 KW/hr from Haryana Electricity Board and
produces rest of the power in its own powerhouse.
This power consumption varies widely with season. In summers this rate is
as high as 1300000 KW/hr and it falls down to around 7500000 KW/hr in months of
December and January.
Whirlpool, Faridabad mainly deals with the assembly of refrigerators. The

outsource the raw material from different vendors and give the shape of refrigerator.
They have more than 200 vendors. Their main raw material and supplier are as listed
above.
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PRODUCT RANGE IN FRO
EXISTING MODELS ARE:
⇒ 165L RANGE
• MASTER PIECE
• FLAT DOOR REFRIGERATOR
• CORONA DELUXE
• BPL
• SINGER
⇒ OPERA RANGE
• 190 ELITE
• 190 DELUXE
• 215 ELITE
• 215 DELUXE
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ANALYSIS OF WHIRLPOOL FRO PLANT
STRENGTHS:
• Its technology
• Its manpower and their dedication towards work
• Training and education
• It’s sophisticated paint shop
• Whirlpool LOGO
• 5-S conscious
• Implementation of 6 sigma.
WEAKNESSES:
• Resistance to change
• Not much effective team work
• High rejections in door
• High rework in door
• High rework of closed system
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PRODUCTS DISTRIBUTION AND SERVICES
Whirlpool products currently available in the Indian markets include refrigeration

and washing machines, A.C.
The distribution of the entire whirlpool range is through an integrated sales

network, which resulted from the merger of Kelvinator of India’s network and
Whirlpool washing machines Ltd. Sales network. With the combined strengths,
Whirlpool aims to achieve critical in their distribution with over 4000 dealers.
Whirlpool calls them trade partners, an integral part of the chain of “

the partners in progress . Thus sales team and trade partners form a formidable team
in the market with network across the country.
Whirlpool guarantees performance and promises reliability of all its

products. In fact, suitable warranties and a wide network of service centers back all
Whirlpool products. Emphasis is placed on after sales services and Whirlpool strives
to achieve 90% customer satisfaction by servicing products within 24 hours of
receiving the call. Whirlpool has its own 17 consumer service branches all over the
country and to cover other towns, there are 100 service partners. Trade partners are
also used for customer service.
At Whirlpool, consumer feedback is given a great deal of thought

while designing the products. All whirlpool products are suited to local customers
needs while conforming to international standards of quality and safety. Whirlpool is
driving the entire market of home appliances by launching products to suit consumers
in various income groups.
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CAPACITY OF THE PLANT
The company works in three shifts of eight hours duration each for seven days a
week. The actual production time is around 7hours 10 minutes. The FRO has
production capacity of about 3400 refrigerators per day but the demand is not that
high, therefore the company also manufactures for some other companies. On an
average around 2500-2600 refrigerators are produced everyday.
Maximum daily production till date has been 3200pcs. These days (May
and June) the production is around 3100pcs everyday.
ABOUT THE PLANT
The whole plant is broadly classified into six major parts, which are
• PRESS SHOP
• PAINT SHOP
• VACCUM FORMING
• EXTRUSION
• EVAPORATOR SECTION
• ASSEMBLY LINES
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PRESS SHOP
In the press shop, the following cabin and door is made.
C.R.C.A. Steel Cold Rolled Cold Annealed Steel sheet cut to the desired
size as per model and is fed into the Carriage Unit. Rolled conveyer, on Carriage
Unit shapes the sheet the roll forming of sheet is done to get the desired thickness.
T he thickness of door panel is 0.42 mm., that of back panel and cabinet is 0.38 mm
and for deck the thickness of sheet is 0.25 mm. After this sheet is send to Notching
and Punching (N/P) unit, where holes are punched into the sheet.
The next operation is roller edge bending. Here the edges of the sheets
are bend into U-shapes, where the liners are later inserted. The next step is t he roller
End Bending. Here the ends of the sheet are bended by 90 deg. Next sheet is folded
in the Folding Fixture by the application of Hydraulic Pressure.
Next, the folded sheets are sent for various spot welding operations.
First, the Back Panel is welded with the cabin. Then the bottom (deck) is welded.
The bottom panel is curved in shape and has space for the compressor to fit in. Doors
are also made here in the Press Shop.
Next operation is of removing sharp edges at the corners cabin and

doors are loaded on overhead conveyer and then are passed on to the Paint Shop for
further processing.
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A VIEW OF PRESS SHOP
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THE PAINT SHOP
The Cabinet/Door from the Press Shop is hanged on the overhead

conveyor line, manually. The locking system is deactivated so that the cabin is free to
rotate. Then the cabin is rinsed in soap solution to free all the dirt. Prior to this the
cabin is also soaked in a solution to free all the grease on the surfaces. This is
known as Degreasing.
The next step is Activation, where the cabin/Door is kept in a

medium which allows the exothermic reaction to take place. After this the
cabinet/door is coated with Zinc Phosphate, so that the pain sticks to the surface
nicely. This process is called Phosphating.
After phosphating the surface which results is very rough and

irregular. This is smoothened in the Passivation stage. Next, the cabin/door is dried
properly.
Now, the cabin/door is ready for the actual paining. First, the interior
areas of the cabin/door are painted manually by the painter. This is done because
during the process of paining by the electrostatic gun the interior areas are generally
left out.
Next, the cabin/door goes through the process of electrostatic paining

where the sides and the top surface of the cabin or the from side of the door is painted
by the electrostatic guns, which are three in no. Two to paint the sides and one at the
bottom to paint the top surface of the cabin.
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With
The painted obtained in this process does not have a proper

finishing. So, the cabin/door is now sent to the curing oven where it is heated to
specified temperature, to obtain a shine on the surfaces.
After this process, there is an Inspection process and the
passed components are sent for the foaming process.
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With
A VIEW OF PAINT SHOP
EXTRUSION PLANT
In the extrusion plant, the sheet for cabinet and door liner is prepared from :-
• HIPS (High Impact Polystyrene)
• Master batch
• 585 to provide gloss
• Regrind
The three components – HIPS, Master batch and regrind are fed to different pipes and
finally the mixture is prepared. The mixture contains 61.4 % HIPS, 1.6 % Master
batch, 35 % regrind and 2 % 585.
The mixture of these components is fed into a CNC Extrusion Machine in

above-mentioned proportions. The extruded material from the machine moves past
the two cylinders and takes the form of a sheet. The cabinet or door liner sheets of
definite size are cut by means of adjustable cutting knifes. The sheets produced are
then sent to Vacuum Forming plant.
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VIEW OF EXTRUSION PLANT
CABINET FOAMING SECTION
VARIOUS PROCESSES IN FOAMING: -
• The first stage is to unload the painted shells or cabinets from the overhead
conveyer line. This is done manually. Next, the shells are sent for Pre-
Foaming. Here among other things the liner and the anti-moisture tube
(A.M.T.) are fitted into the shell.
• Next, the shell is heated in the oven to a specified temperature to start the
chemical reaction of foaming. After this the shell is loaded into the
Foaming Plugs, 18 in no. Here a mixture of Isocyanate and Polyol is added
in between the liner and cabin. The foam expands and covers all the space
in between. After this the shell is unloaded, cleaned and inspected. The
shells, which are O.K, are sent to the assembly line.
• Doors are also foamed in the similar manner in Door Drum. Here after
addition of Isocyanate and Polyol, the door liner is placed over the door
shell. The foamed doors are then unloaded, inspected and sent to the
assembly line.
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A VIEW OF FOAMING SECTION

EVAPORATOR SECTION
VARIOUS PROCESSES IN EVAPORATOR SECTION: -
In the evaporator section, the freezer assembly is made.
The freezer assembly comprises of: -
 THE SERPENTINE COIL- Processes included in it are tube cutting, deburring,

flaring, dot punching, bending and argon welding.
 THE EVAPORATOR BODY- Processes included are cutting aluminium to size,

allochroming, clear coating, dehydration, clinching, folding and riveting the
Compliments.
 THE SUCTION LINE ASSEMBLY- Processes included are copper tube

shaping, vapour degreasing, putting of sleeve with the capillary tube, and heating
of suction line assembly in oven.
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 THE SOUND DEADENER ASSEMBLY- Processes included are sound

deadener formation, degreasing, butt welding of sound deadner, butt welding of
suction line, leak testing and inserting sleeve on butt welded joints.
A VIEW OF EVAPORATOR SECTION
ASSEMBLY LINE
There are three assembly lines.
VARIOUS PROCESSES IN ASSEMBLY LINE :-
• THERMOSTAT FIXING
• BULB, BOTTOM HINGE, REAR FIXING
• ANGLE TRAY FIXING
• TOP HINGE FIXING
• COMPRESSOR AND CLAMPS FOR CONDENSER FIXING
• FREEZING FIXING
• DOOR FIXING
• CONDENSER FIXING
• AMT CONNECTION, THERMOSTAT KNOB FIXING
• BRAZING OF SEALED SYSTEM, FREEZER DOOR FIXING, RELAY
FIXING
• COMPRESSOR EARTHING, DOOR HANDLE FIXING
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• VACUUMISATION: Here, a loop of nine vacuum pumps is employed to

vacuumise the compressor completely.
• GAS AND OIL CHARGING: Here, the Galileo Machine is employed for the
Gas and Oil charging. The machine has to be calibrated before use. For this
purpose, three parameters are set to evaluate the amount of gas charge in the
Compressor.
These parameters are:

o Weight
o Pulse
o Temperature
Weight here means the gas specification; Pulse is the value of

R.P.MxNo. Of Blades in the turbine, or in other words the no. Of blades passing
through a point in a minute. Temperature is the gas temperature at the junction of the
cylinder and the Galileo Machine.
During calibration the following data has been used for line no.3:
SL WEIGHT PULSE TEMPERATURE

NO.
1 87 705 36
2 97 863 36
3 118 1020 36
Apart from above, other parameters used in the setting of a program for a particular
slot are:
• Evacuation Time
• Vacuum Testing Time
• Leak Testing Time
• Vacuum Upper and Lower Limits
• Recovery Time
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• Reference Pressure
1. EVACUATION TIME is the time set for the compressor to be evacuated to the
Upper limit of Vacuum. The Compressor should be evacuated to the upper limit in
the specified time; otherwise the machine gives an alarm and stops the further
process. It is kept at around 40-60 seconds.
2. VACUUM TESTING TIME is the time specified for the compressor to be

further vacuumised from the upper specification limit to the lower specification
limit. Again, if the compressor is not vacuumised in the prescribed time the
machine gives a signal and further process is stopped. It is kept at around 40-60
seconds.
3. LEAK TESTING TIME the machine stops the vacuumisation process and
checks the pressure in the compressor. If the pressure drops below the lower
specified limit in a time less than equal to the Leak Test Time, the machine gives a
Group Leak Signal and the process again stops. It is kept at around 5 seconds.
4. RECOVERY TIME is the time specified for the excess gas in the filler tubes to
be recovered by the machine. This reduces wastage of the refrigerant. The Upper
and Lower limits are set in such a manner that the Lower specified limit is above
the
5. REFERENCE PRESSURE in the machine. The Reference Pressure is the

lowest level of Vacuum that the machine can obtain. All the pressures are
measured in terms of micrometers of mercury, where 760 mm of mercury
corresponds to 1 Atmosphere. The upper limit is generally set above 1000
micrometers of mercury and the lower limit is set around 300 micrometers of
Mercury.
o SEALING OF THE CHARGING LINE

o INSPECTION IN TEST LOOP BY CONNECTING TO THE MAINS
SUPPLY
o CABINET AND DOOR CLEANING
o CRISPER TRAY AND SHELVES FIXING
o OUTSIDE CLEANING
o PLASTIC PARTS FIXING
o FINAL INSPECTION
o BAR CODING AND PACKING
32
With
A VIEW OF ASSEMBLY LINE
PRODUCTS WORLDWIDE
33
With
 Washers
 Refrigerators
 Microwaves
 Air conditioners
 Dryers
 Dishwashers
 Freezers
 Cooking ranges
 Exhaust fans / ovens / hoods etc.
SOME BASICS ABOUT REFRIGERATION

In olden days food was stored in caves where the temperature
remained lower than outside air temperature. At around 2500 B.C, Indians,
Egyptians, Romans, etc. produced ice by keeping water in porous pots open to cold
34
With
atmosphere during the night. The evaporation of water in cold dry air accompanied
with radiative heat transfer in clear night caused the formation of ice.
Back in the old days, Earthen Pots were used to cool water. Jacob’s Perkiness
invented artificial refrigeration in the year 1834. In the beginning of the 19th century,
there was tremendous progress in the refrigeration systems to replace natural ice
using a system engine, a very low speed power-developing source to power the
compressor.
In the beginning of 20th century, large sized refrigeration machines
were under progress using ammonia and water as coolants from the third decade
onwards; considerable growth has taken place in the refrigeration industry. Now no
longer a refrigerator considered a luxury but a necessity. In India the first commercial
refrigerator was developed in the year 1956 by ALLWYN and then other companies
came into the market.
METHODS OF REFRIGERATION
 Vapour Absorption System.

 Vapour Compression System.
 VAPOUR ABSORPTION CYCLE

In vapour absorption system, heat energy is used to circulate the refrigerant. The heat
energy is obtained from a gas flame, an electric heater, or a kerosene flame. It does
not have a moving part, therefore the maintenance cost is minimum.
Components in use are:

 Boiler and Generator.
 Condenser
 Evaporator
 Absorber connecting to suction pump.
VAPOUR COMPRESSION SYSTEM
35
With
In the vapour compression system the low-pressure refrigerant is compressed to high

pressure by the compressor, using mechanical energy in the form of motor. It is then
condensed to the liquid state in the condenser and then again evaporated to the
gaseous state by extracting heat from the evaporator area. Most of the modern
refrigerators including the one falling under this category. The main components used
in the refrigerators manufactured here are:
 Condenser.
 Capillary.
 Charging line.
 Dip tray
 Oil cooler inlet.
 Anti moisture tube.
 Evaporator
 Drier and Accumulator.
 Compressor
 Cooler Outlet
 Sound Deadener
 Suction and Discharge Line.
The provision compartment is cooled by natural air circulation. The cold in contact
with the evaporator moves down, from the back of the evaporator to the lower portion
of the provision compartment, being heavier in weight. The warm air in the provision
compartment being lighter in weight, moves upward form the front side of the
evaporator being cooled. The air circulates in the cabinet due to convection current
arising because of natural temperature difference between the evaporator and the
provision compartment. The 165L, 220L and 310L models fall in this category called
Direct Cool Refrigerators.
WORKING OF THE SYSTEM
The refrigeration system consists of four very important

components namely, Compressor, Capillary, Condenser and Evaporator. When these
components are joined together the refrigerant (R-12) charged then these forms the
Hermatic Sealed System.
36
With
The compressor compresses the gas to increase pressure. The high-pressure gas
that passes through the anti- moisture tube to heat the cabinet
front pilaster which is in contact with the gasket of the door. The heating prevents the
internal moisture condensation. Return gas from the anti moisture tube comes back in
the compressor oil cooler tube to cool compressor and oil and then moves back to the
condenser tube. Due to heat transfer at high pressure R-12 gets condensed in the
condenser and the liquid refrigerant passes through the drier
Before entering the capillary. Liquid ref. Now moves in the

capillary and pressure start dropping.
At the outlet of the capillary the low pressure liquid enters the
evaporator and passes through the evaporator tube. Due to low pressure the temp. of
the refrigerant is lower and therefore the tube gets cooled and we get frosting on these
tubes. The un-vapourised liquid enters the accumulator and all the vaporized liquid
returns to the compressor through the connecting tube called the suction line. The part
of the capillary is in contact with the suction line to avoid formation of frost on the
suction line and to utilize the returned clod vapour for heat transfer to improve the
efficiency of the system. Return vapours are again compressed in the compressor and
the cycle continues.
ANATOMY OF A DIRECT COOL REFRIGERATOR
COMPRESSOR
The compressor is the heart of the refrigerator .It pumps the
refrigerant through the entire system. It draws cool refrigerant gas in through the
suction line from the evaporator coils. At the same time it compresses the gas and
pump it into the discharge line. The compressed air sharply rises in temperature and
enters the condenser.
Oil is charged into the compressor to:

Provide lubrication to the moving parts.
Cool the compressor body.
Oil charge depends on the type of compressor used in the refrigerator, ML-033 and
ML-043 types of compressors use 400cc of oil.
The quantity of refrigerant charge depends on the size and design of the sealed
system.
165ltr uses 135gms.
37
With
220ltr uses 100gms.

310ltr uses 155gms.
The refrigerant used is Freon-12 (di chloro di fluoro methane or CCl2F2) . it has a
boiling point at –21.6 deg. F. it is used generally to cool up to –110 deg. F. this is
commonly known as R-12.
CONDENSER
The condenser is the cooling coil for the hot refrigerant. It expels
the heat of the refrigerant to the room outside the cabinet and changes refrigerant to
liquid state.
It may be noted that support wires are used in the condenser tube
and the whole assembly is painted black. This is done to increase the heat transfer
area and reflect the atmosphere at a faster rate.
DRIER
The hot liquid refrigerant from the condenser enters the drier. The
drier contains synthetic zeolite composed of soda, alumna and silica. It removes any
moisture and impurities from the refrigerant.
CAPILLARY
The capillary is a small diameter tube connecting the condenser to
the evaporator. The capillary tube is carefully calibrated in length and internal
diameter. Its resistance or pressure drop due to length of the tube and diameter,
regulates the exact amount of refrigerant into the evaporator.
HEAT EXCHANGER
Soldering a portion of the capillary tube to the suction line forms

the heat exchanger. The purpose of the heat exchanger is to increase the overall
capacity and efficiency of the system by using the cold sucked gas leaving the
evaporator to cool the warm liquid refrigerant passing through the capillary tube into
the evaporator. Suction cooled liquid expands at lower pressure giving more cooling
effect and heated vapour ensures no liquid particles at the compressor suction.
EVAPORATOR
The liquid refrigerant at low pressure leaves the capillary and
enters the larger tubing of the evaporator. Due to sudden increase in the tube diameter,
expansion takes place and the temperature of the refrigerant drops rapidly. In the
38
With
processes of the passing through the evaporator, the refrigerant absorbs heat gradually
and changes to gaseous form at the same pressure.
ACCUMULATOR
Rate of evaporation of the refrigerant from the evaporator changes
with heat load on the evaporator. It evaporates at a faster rate on high load and at a
slower rate on low load. Accumulator serves the purpose of a storage vessel which
stores the unevaporated excess liquid when the load is low and supplies extra liquid to
the evaporator when the load is high .it also prevents liquid refrigerant from flowing
into the suction line and also entering into the compressor.
ANTI MOISTURE TUBE

The anti moisture tube is in contact with the door of the
refrigerator. The basic advantages of the anti moisture tube is as follows:
It provides external condensation at the front pilaster.
Acts as an oil cooler.
THERMOSTAT
Thermostat ensures that the temperature in the freezer and the
provision compartment are maintained as per specified requirements. The thermal
capillary senses the freezer plate temperature and cuts off the compressor when the
temperature is attained and cuts in when temperature rises for a particular setting.
There are three types of thermostats:
Defrost Thermostat (push button)- Used in the 165 L, 220L,310L refrigerators.The

push buttonnis used for defrosting the refrigerator.
Non – Defrost Thermostat – used in deep freezers.
Constant Cut-In Thermostat – used in vertical plate evaporators for two door
models.
RELAY
The function of the starting relay is to connect the starting winding
of the compressor motor at the time of starting and disconnect as soon as the motor is
up-to its running speed .the motor used in the hermetic compressor is fractional H.P.
split phase, which has two windings.
 Main winding (running)
39
With
 Auxillary winding(starting)
When the refrigerator is switched on, there is a starting current (2-
4 times the rated current) in the running winding, this induces electromagnetic force
in the relay coil which picks the plunger and connects the starting winding with the
running winding. As the motor arrives to a speed the current reduces, thus reducing
the electromagnetic force and cutting of the starting winding.
The relay consists of:

 Relay coil
 Plunger
 Switch silver contacts
 Plastic body
OVERLOAD PROTECTOR
The overload protector protects the compressor during high
current, high compressor temperatures and overload conditions. It is connected in
series with the compressor winding
It consist of:
Nichrome wire
Bimetallic switch
Switch silver contacts
When the bimetallic strip is heated by nichrome wire, the
temperature of the strip increases and stresses are setup in the disc, tending to buckle
it, thus opening the contacts and cutting off the supply to the compressor. When the
disc cools down to a certain temperature, it snaps back to its original position, thus
making the contact and starting the compressor.
NO FROST REFRIGERATORS
In no frost refrigerators cooling is carried out by forced air
through fan motor. The fin and tube evaporator is concealed and cold air is sucked
through the coil and fan and circulated in the freezer and cabinet compartments by
providing opening inside the duct arrangement. Ice formation on the fin and heating
the coil once or twice in a day terminates tube evaporator.
The defrost water falls on the tray over the compressor and evaporates.
This technique makes sure that freezer does not get clogged by the frost .No frost
means that there is no formation of ice in the freezer due to which ice trays, food and
other items do not get struck.
40
With
The following additional components are added to achieve these characteristics:
 Fan motor
 Heater
 Thermal cut out
 Duct
QUALITIES OF A REFRIGERANT
 Low boiling point

 Safe and non toxic
 Should liquify easily at moderate temperature and pressure.
 Mixes well with oil.
 Non corrosive with metal
The refrigerant used in this plant is Freon-12 (CCL2F2). Its boiling point is –
21.6deg F. It is commonly known as R-12.
CFC SUBSITUTES
The depletion of ozone layer by the use of CFC refrigerants has lead
to the lookout for other eco-friendly refrigerants. Efforts are made to find substitutes
with similar refrigeration properties like CFCs but with a lower effect on the ozone
layer. The essential requirement for the substitutes will be that they should be
compatible with vapour compression and heat transfer systems.
Examples are:
HFC-134 ( Hydro fluoro carbon)
HFC-134a
HCFC-22 ( Hydro chloro fluoro carbons)
HCFC-14b
ISOBUTANE
PROPANE
AMMONIA
SPECIFICATIONS OF REFRIGERATORS
41
With
Refrigerators are specified as the volume of the refrigerator. For

example 165 lt. indicates the total space inside the refrigerator or the volume. Volume
is measured by filling the cabinet with water to take 165-3%+0
MODEL VOLUME OF CABINET INSIDE FREEZER SPACE
165 lt. 152.5 lt. 12.5 lt.

220 lt. 205 lt. 15 lt.
310 lt. 378 lt. 32 lt.
MARKET SHARE OF TOP 3 COMPANIES IN REFRIGERATORS IN

MONTH OF MAY’07
MARKET SHARE
LG 25.5%
WHIRLPOOL 23.2%
GODREJ 16.9%
OTHERS 34.4%
MKT SHARE (%)
LG
OTHERS
26%
34%
WHIRLPO
GODREJ OL
17% 23%
42
With
SOLD (UNITS)
VALUE
(IN CRORES)
LG 1.37 LAKH 149.59 cr
WHIRLPOOL 1.24 LAKH 138.24 cr
GODREJ 90,900 86.13 cr
VALUE (CRORES)
GODREJ
1 WHIRLPOOL
LG
0 50 100 150 200

IN CRORES
43
With
SALES in the month of MAY'07
140000
120000
100000
LG
UNITS 80000
SOLD 60000 WHIRLPOOL
40000 GODREJ
20000
0
1
FROST FREE REFRIGERATORS
SOLD VALUE MARKET

(IN UNITS) (IN CRORE) SHARE
LG 47200 72.51 CR 30.6%
SAMSUNG 36900 65.88 CR 23.9%
WHIRLPOOL 34100 53.94 CR 22.1%
44
With
MARKET SHARE (IN FROST FREE

SEGMENT)
35
30
25
20 LG
15 SAMSUNG
10
5 WHIRLPOOL
0
1
MARKET SHARE
DIRECT COOL
MARKET SHARE
WHIRLPOOL 23.6%
LG 23.5%
GODREJ 19.4%
45
With
MARKET SHARE OF DIRECT COOL
19.40% 23.60% WHIRLPOOL

LG
GODREJ
23.50%
Analysis of Market Share
According to ORG data for May, the domestic refrigerator market stood at Rs
574.11 crores in terms of value and 5.37 lakh units in terms of volume.
The frost-free segment formed 28.6 per cent of the entire market, worth Rs
246.74 crores with a total of 1.54 lakh units sold during the period. The direct-cool
segment stood at 71.4 per cent of the whole market, worth Rs 327.37 crore (3.83 lakh
units).
46
With
However, what is interesting is the frost-free segment grew at 50.2 per cent in
terms of volume and 60.8 per cent in terms of value while the direct-cool segment
grew at a considerably slow pace of 3.3 per cent in terms of volume and 11.3 per
cent in terms of value for the month of May.
In fact, the above trend was also visible in the five-month period of January-May
for the current calendar year, where the frost-free segment grew at a rapid pace of
45.9 per cent in terms of volume and 53.8 per cent in terms of value as opposed to a
slow growth of 6.3 per cent in terms of volume and 12.1 per cent in terms of value in
the direct-cool segment.
As far as the frost-free refrigerator category is concerned, it is certainly growing at a

much faster pace than the direct-cool category. Frost-free refrigerators offer several
advantages — they don’t need manual defrosting, are easy to maintain, and the price
difference between the direct cool and frost-free segments has narrowed considerably,
CETMA said.
Source:
http://www.ibef.org/artdisplay.aspx?tdy=1&cat_id=60&art_id=16113
Research Methodology
Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions; collecting, organizing and evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.
47
With
----Clifford Woody
Research MeThodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.
SOURCES OF DATA COLLECTION

To understand the system better and to make practical suggestion for improvement, it
is imperative to think in an innovative manner and with in the constraints imposed by
the system. To affect this plan and to get deeper in to the system, the following
sources were adopted.
PRIMARY SOURCES
DIRECT OBSERVATION:
48
With
Since the procedure for various function are lengthy and complex, the best way to get
aquatinted with the system is direct observation so as to get a first hand experience of
the issues and problem facing the organisation in carrying out the particular
procedure.
The direct observation of various documents at the time of auditing helped

understanding the various aspects of the procedures as also the problems and issues
arising there from. It also helps enhancing the perception about the possible issues
that might arise in future, if the same procedure is being followed.
Similarly the direct observation of the issue procedure has helped to understand the
pressures at the time of auditing and practical constraints in the procedure due to slow
speed. This method helps us to understand the current procedure followed by different
area owners.
INQUIRY:
The inquiry through questioning the staff member or through investigation is another
method to get aquatinted with the system and procedures. While the inquiry from the
experienced staff member may help in bettering the perception process about the
system, procedures and the constraints there in, but this method must be used very
cautiously for it may give a particular mindset and reduce the chances for own
innovative thinking.
Information from SAP

The system used in whirlpool is latest version of Sap (4.7) .The first step in the assets
inventory is collecting information from the system sap. Every person in whirlpool
has it different login id and password provided to him or her according to their
authority. The person who is responsible for maintaining assets record can’t access
the information related to the assets. In the system all the records of the assets are
maintained assets class wise i.e.
 Plant and machinery

 Land and building
49
With
 Moulds
 Equipments
 Office Equipments
 General Equipments
 Furniture and fixtures
To access the assets record we have to enter:
Company code 9101

Business area 2100
Cost center 912114, 912115, 912116, etc
Date last months date
SAP (4.7 VERSION)
50
With
Gate Entry
51
With
Gate Entry
Code 103
No material can enter the factory premises, without entering the details in
Goods Receipt Purchase Order
Stores
52
With
Stores
Code 105
Goods received note being entered into the system. Items become part of
inventory after this movement.
Stores
53
With
Stores
Code 311
Issue of material from stores to shop floor.
54
With
Process Flow Diagram For Refrigerators
Vendors Central Store Press Shop/ Paint Shop
Cabinet Foaming
Extrusion
Door Foaming
Vaccum Foaming
Line 2 Line 3
Line 1
Finished Goods Godown
55
With
Introduction To Fixed Assets
Also called: Capital Assets
DEFINITION: An accounting term that describes tangible property used in the

operation of a business such as buildings, machinery, fixtures, furniture and
equipment. It does not include items normally consumed in the course of business
operation or production.
Fixed asset, also known as property, plant and equipment (PP&E), is a term used
in accountancy for assets and property, which cannot be easily converted into cash.
This can be compared with the current assets such as cash or bank accounts, which
are described as liquid assets. In most cases, only tangible assets are referred too as
fixed.
Fixed assets normally include items such as land and buildings, motor vehicles,
furniture and fittings and plant and machinery. These often receive favorable tax
treatment (depreciation allowance) over short-term assets because they depreciate
over time.
56
With
Purpose or need of Fixed Asset Verification

Assets inventory should be done periodically in every organisation for assessment of:
• Capitalisation of assets in fixed assets is done for preparation of annual
financial statement.
• Assets inventory shows the picture of gross block
• Maintain proper records of fixed assets i.e. plant and machinery according to
the location where they are installed.
• To present report to management regarding the assets acquired, disposed,
obsolete, not working etc.
Depreciation
Depreciation is a the gradual and permanent decrease in value of an asset from

any cause
-------- By R.N Carter
“It is a matter of common knowledge that all fixed assets such as plant,
machinery, building furniture etc. gradually diminish in value as they get older
and become worn out by constant use in the business.
------- By JR Batliboi
In every business there are certain assets of a fixed nature tat are needed
for the conduct of the business operations.
Some examples of such assets are building, plant and machinery, motor vehicles,
furniture, office equipments etc. these assets have a definite span of life after the
expiry of which the assets will lose there usefulness for the business operations.
Fall in the value and utility of such assets due to their constant use and expiry of time
is termed as Depreciation.
In other words the process of allocation of the cost of a fixed asset over its
useful life is known as depreciation.
57
With
Special features or characteristics of depreciation: -
 Depreciation is decline in the value of fixed assets (except land). Such fall is
of a permanent nature. Once the value of an asset is reduced due to
depreciation, it cannot be restored to its original cost.
 Depreciation is a gradual and continuing process because the value of asset

will decline either by their constant use or obsolescence due to expiry of time.
 Depreciation is not the process of valuation of asset but process of

allocation of the cost of asset to its effective span of life.
 The term dep. is used only in respect of tangible fixed assets. The term is
not used for wasting assets such as mines, oil wells etc.
Causes of depreciation
 By constant use: Due to the constant use of fixed assets in business

operations. Wear and tear arise in them which results in the reduction of there
values.
 By expiry of time: The value of majority of assets decreases with passage of

time even if they are not being put to use in the business. Natural forces such
as rain, winds etc. contribute to the deterioration of their values.
 By expiry of legal rights: There is certain assets, which have a definite, span
of life such as lease.
 By obsolences: Due to new inventions and improved techniques the old assets
become obsolete and may have to be discarded even if they can be put to use
physically.
 By Accident: Some times a machine may be destroyed due to fire,

earthquake, flood etc.
58
With
 By depletion: It is the decrease in the value of wasting assets such as mines,

oil wells etc. due to there constant working.
 By permanent fall in market price: Due to the fluctuation in the mkt. Value
of fixed assets are not recorded because such as assets are not meant for resale
but for use in the business, sometimes the fall in the value of certain fixed
assets is treated as depreciation e.g. permanent fall in the value of
investments.
Methods of providing or allocating depreciation:
• Straight-line method
• Written down value method
• Annuity method
• Depreciation fund method
• Insurance policy method
• Revaluation method
• Depletion method
• Machine hour rate method
Straight-line method
The method is also termed as Original Cost method because under this method
depreciation is charged as a fixed percentage on the original cost of the assets. The
amount of depreciation remains equal from year to year and as such the method is
also known as Equal Installment method or Fixed Installment method
Yearly depreciation = Cost of the Asset- Scrap Value

Estimated life
59
With
Merits
• Simplicity
• Equality of depreciation burden
• Assets can be completely written off
• Knowledge of original cost and up to date depreciation
Demerits
• Difficulty in computation
• Unequal charge against income
• Undue pressure in later years
• Omission of interest factor
• Unrealistic to write off the value of asset to zero
• Difficulty in the determination of scrap value
60
With
Findings and Analysis
TOTAL ASSETS GROSS VALUE

8095.84 LACS
ASSETS AS PER ASSET REGISTER
ASSETS VERIFIED 8076.41 LACS
ASSETS NOT FOUND PHYSICALLY 9.86 LACS
ASSETS NOT IN USE/OBSOLLETE 80.56LACS
ASSETS
ASSETS FOUND PHYSICALLY BUT 1.00 Nos.
NOT IN FA
OBSERVATION SHEET
10000 Asset as per

8000 register
VALUE IN 6000
LACS 4000 Asset Verified
2000
0 Asset Not found
1
STATUS OF Asset not in use
ASSETS
61
With
COST DEPARTMENT NAME GROSS BLOCK

CENTER
2112 HR 1,919,343.95
2114 PROCUREMENT 7,566,815.00
2115 QUALITY 15,903,376.85
2131 PDC 7,956,568.98
2141 ADMIN 11,385.00
2143 STORE ROOM -
2145 MAINTENANCE ROOM 23,677,669.98
2146 TOOL ROOM 893,056.00
2147 POWER HOSE 67,475,087.07
2151 PRESS SHOP 120,025,052.09
2152 PAINT SHOP 72,514,364.15
2153 CO EXTRUSION 50,190,424.80
2154 VACCUM FOAMING 94,084,024.37
2156 CABINET FOAMING 111,759,343.34
2157 DOOR ASSEMBLY 55,858,284.51
2158 MAIN ASSEMBLY 179,749,425.27
809,584,221.36
TOTAL
62
With
63
With
SUMMARY SHEET
HR
PROCUREMENT
1,800.00
QUALITY
1,600.00
1,400.00 PDC
1,200.00
ADMIN
GROSS BLOCK 1,000.00
(IN LAKHS)
800.00 STORE ROOM
600.00
MAINTAINANCE
400.00
ROOM
200.00 TOOL ROOM
-
POWER HOUSE
1
PRESS SHOP
COST CENTER
PAINT SHOP
CO-EXTRUSION
VACCUME FOAMING
CABINET FOAMING
DOOR ASSEMBLY
MAIN ASSEMBLY
64
With
Cost Centre Cost Centre Gross Total Asset not in Asset not
(Code) Name use found Asset in use &

found
2112 HR 1919343.95 - - 1919343.95
2114 Procurement 7566815.00 - 204,618.00 7,362,197.00
2115 Quality 15903376.85 409,715.00 - 15493661.85
2131 PDC 7,956,568.98 - - 7,956,568.98
2141 Admin 11385.00 - 11385.00 0.00
2143 Stores 0.00 - - 0.00
2145 Maintenance 23677669.98 - - 23677669.98
2146 Tool Room 893056 729539 - 163517
2147 Power house 67475087.07 - 46525 67428562.07
2151 Press shop 120025052.0 4,288,611 1.00 115,736,440
2152 Paint shop 72514364.15 - - 72514364.15
2153 Co extrusion 50190424.80 320112 10152 49860160.8
2154 Vacuum foaming 94084024.37 - - 94084024.37
2156 Cab foaming 111759343.3 668200 - 111091143.34
2157 Door assly 55858284.51 - 537432 55,320,853
2158 Main assly 179,749,425.27 1,640,199.92 176,608.14 178594234
65
With
Assets found and Use HR
PROCUREMENT
QUALITY
PDC
ADMIN
STORE ROOM
MAINTAINANCE
ROOM
TOOL ROOM
POWER HOUSE
PRESS SHOP
PAINT SHOP
CO-EXTRUSION
VACCUME FOAMING
CABINET FOAMING
DOOR ASSEMBLY
MAIN ASSEMBLY
66
With
67
With
Problems occurred during physical verification of

Assets
 Wrong description of fixed asset’s Name

Due to incomplete or wrong description of assets in the assets register are difficult to
identify because assets are capitalised as per the invoice description.
 Fixed assets not found or scraped off

Fixed assets are scraped off without prior information to responsible department. This
can lead to over Capitalisation because the same is not written off in assets record.
 Fixed assets transferred to different cost center

Fixed assets are transferred to different cost center without any prior information.
Thus, in record, assets are transferred to different cost center and which creates
problem in physical verification to identify the assets.
 Obsolete fixed assets

The obsolete assets have been a matter of concern, especially with fast changing
technology. Obsolete fixed assets are not written off in the assets record because not
any prior information given. As a result, it shows the false picture of the gross block
in the books.
 Wrong description of regarding the cost center

In case, if the information regarding the cost center where the fixed assets are
installed is documented false or mentioned in different cost center. Thus during the
physical verification of assets is difficult to identify the assets.
 Wrong description regarding the number of items or quantity

installed
If it is not clearly mentioned that where and how many number of items are installed
in which cost center. It becomes difficult to identify the assets.
68
With
Suggestion for the assets
 The assets not found should be written off

The assets that are not found physically in the company, there is no need
to show them in the records. They should be written off in the books of accounts.
Because clear picture of gross block is necessary for the preparation of annual
financial statements. Thus these assets should be written off from the records.
Benefits
• It would help the company to show the actual picture of gross block.
• It would reduce the amount of depreciation and thus lead to increase the
profits of company.
 Suggestions for the assets not in use
If possible utilize the assets in any other department

The assets, which are not in use for one department, might be useful for any other
department. Thus it should be checked whether it could be used for any other purpose
or not.
Benefits
The assets, which are obsolete, may be useful for any other thus by utilizing obsolete
assets in other department will reduce the expenditure of the company.
 Refurbish and sell which are obsolete

The assets, which are obsolete for FRO that, might be useful for any other company.
Thus they should be refurnished and sell that assets to any one who needs that.
Benefits
Space used by the obsolete assets can be utilized for any other purpose.
Return form the sale of assets can be utilized in adopting new technologies and
innovation etc.
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INVENTORY
Definition:
Inventory is the stock of any item or resource used in an organisation: raw

materials, finished products, components parts, supplies and work in progress.
Inventory is a store of goods and stock. In manufacturing, items in inventory are

called Stock Keeping items, held at a stock (storage) point. Stock keeping items
usually are raw materials, work in progress, finished products and supplies.
Inventory Management a fruitful area for lowering overall operations costs

From the firm’s viewpoint, inventories represent an investment: capital is required to
store materials at any stage of completion.
Purpose of Inventory:
• Enables the firm to achieve economies of scale

• Balances supply and demand
• Enables specialization in manufacturing
• Provides protection from uncertainties in Demand and Order Cycle
• Acts as a buffer critical interface within the supply chain.
Functions of Inventory
• The Decoupling Function

• Storing Resources
• Irregular Supply and Demand
• Quantity Discounts
• Avoiding Stock outs
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Inventory control is concerned with minimizing the total cost of inventory. In the
U.K. the term often used is stock control.
The three main factors in inventory control decision-making process are:
• The cost of holding the stock (e.g., based on the interest rate).
• The cost of placing an order (e.g., for row material stocks) or the set-up cost
of production.
• The cost of shortage, i.e., what is lost if the stock is insufficient to meet all
demand
The third element is the most difficult to measure and is often handled by establishing
a "service level" policy, e. g, certain percentage of demand will be met from stock
without delay.
Inventory Management and Inventory Control must be designed to meet the

dictates of the marketplace and support the company's strategic plan.
The many changes in market demand, new opportunities due to worldwide
marketing, global sourcing of materials, and new manufacturing technology, means
many companies need to change their Inventory Management approach and change
the process for Inventory Control.
Despite the many changes that companies go through, the basic principles of
Inventory Management and Inventory Control remain the same.
The underlying principles for accomplishing good Inventory Management and

Inventory activities are:
The Inventory Management system and the Inventory Control Process provides
information to efficiently manage the flow of materials, effectively utilize people
and equipment, coordinate internal activities, and communicate with customers.
Inventory Management and the activities of Inventory Control do not make decisions
or manage operations; they provide the information to Managers who make more
accurate and timely decisions to manage their operations.
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The basic building blocks for the Inventory Management system and Inventory
Control activities are:
 Sales Forecasting or Demand Management

 Sales and Operations Planning
 Production Planning
 Material Requirements Planning
 Inventory Reduction
The emphases on each area will vary depending on the company and how it operates,
and what requirements are placed on it due to market demands. Each of the areas
above will need to be addressed in some form or another to have a successful
program of Inventory Management and Inventory Control.
STORE MANAGEMENT & PROVISIONING
Provisioning is a part of Store management

• Present trends in consumption.
• Future planned It is a process of translating plans in to hardware which
includes: -
- Forecasting of future requirements based on past consumption.
- Utilization of equipment.
• Future planned utilization of equipment.
Objectives of Provisioning are:
a) Right kind of equipment available.

b) In the right quantity & quality.
c) In the right place.
d) At the right time.
e) At the right reasonable cost
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Material Management activities includes
 Material planning & programming.

 Purchasing.
 Inventory Control.
 Receiving & Accounting.
 Warehousing.
 Store Keeping.
 Transportation & Material handling.
 Disposal of surplus stores.
Two important aspects of Material Management are Inventory Control & ABC
analysis of Stock items.
 Inventory control determines systematically what items to hold in stock, when

and in what quantities to order them and how much to hold at any time.
 ABC Analysis `A’ – High value items,

`B’ – Medium value items,
`C’ – Low value items,
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‘ABC’ SYSTEM
Activity Based Costing analysis, it also is a way of dividing a Pareto Chart into three
regions (A, B and C), which contain 80%, 15% and 5%, respectively, of the
problems
ABC analysis is a technique of exercising selective control over inventory items.
The technique is based on assumption that a firm should not exercise the same degree
of control on all items of inventory. It should rather keep greater control over those
items, which are more costly as compared to those items, which are less costly.
According to this approach, the inventory items are divided into 3 categories
A, B, & C.
‘A’ class items includes more costly items, while ‘B’ Class items consist of less costly
items and ‘C’ Class items consist of least costly items.
Thus ABC analysis concentrates
On important items and therefore, is also known as Control by Importance and

Exception (CIE). This approach is also known as Proportional Value Analysis
(PVA), since the items are classified in importance of their relative value.
Inventory surveys in general have shown the following trends regarding the
components of Inventory manufacturing Organizations:
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PERCENTAGE OF
CATEGORY TOTAL VALUE PERCENTAGE OF

TOTAL QUANTITY
80 5
A
15 15
B
5 80
C
IN WHIRLPOOL (FRO)
‘A’ class items: These are the high value items, which constitutes about 80% of the
total value of material consumption in the production. The ‘A’ class has
approximately 35 items for which stringent controls have been placed.
‘B’ class items: The B class constitutes of those items, which make it about 15- 20%
of total consumption. There are approximately 100 items classified under this
category for which the control is limited to surprise check and periodic inventory.
C class items: This category constitutes of the minor item making all most 70-75% of
total items in the stop, but contributing only 5-10% of the total consumption of the
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material. Many of these items are placed under JIT so as to minimise the inventory
investment. For these items periodic reconciliation and a daily shortage list is
sufficient control.
PERPETUAL INVENTORY SYSTEM
As per the Institute of Cost And Management Accountant, London,

“The Perpetual or Continuous Inventory System is a system of records maintained by
the controlling departments which reflects the physical movement of stock and their
current balance.”
Thus it refers to the system of regular updating of stock records with each passing
transaction so as to reflect the current state of the stock balance at any point of time. It
also facilitates the regular stocktaking whereby the physical inventory is regularly
checked with the system stock and any adjustment required is made with the
immediate effect.
A perpetual inventory system is one in which the inventory quantities and values for
all purchases and issues are recorded directly in the inventory system as they occur.
Perpetual inventory system balances are verified by means of periodic physical
counts. A revolving physical count, where segments of inventories are counted at
different times, may be used, provided all inventories are counted at least every other
fiscal year.
The agency inventory officer is responsible for developing and implementing

procedures for recording inventory additions as received and reductions as used.
In Short:
• Perpetual inventory system updates inventory accounts after each purchase or

sale.
• Inventory subsidiary ledger is updated after each transaction.
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• Inventory quantities are updated continuously.
IN WHIRLPOOL (FRO)
In this organisation updating of Inventory is done in 2 ways:
I
• External Inventory check
• Internal inventory check
 External inventory check: It is done on quarterly basis. Generally in

the months of March, June, September, December.
In this system Whirlpool’s statutory auditors (S.R.batliboi) come for a physical

inspection and check the inventory. All the items whether A, B, C have to undergo
this check.
 Internal Inventory checks: Apart from External check, the company

also keeps a check on its inventory internally. Audit is done on various
items as follows:
A class items: - 80% items weekly basis and remaining on monthly basis.
B class items: - Majority items on monthly basis
C class items: - Quarterly basis at the time of external audit.
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KANBAN SYSTEM
Kanban means ‘sign’ or ‘instruction card’ in Japanese. In paperless control system,
containers can be used instead of cards. The cards or containers make up the Kanban
pull system
FLOW OF 2 KANBANS
Withdrawl Kanban
Storage Storage
Machine Parts Parts
Center A&B A&B Machine
center
Production
Kanban Material Flow
Card (signal) flow
The Japanese refer to Kanban as a simple parts-movement system that depends on

cards and boxes/containers to take parts from one workstation to another on a
production line.
Kanban stands for Kan- card, Ban- signal.

The essence of the Kanban concept is that a supplier or the warehouse should
only deliver components to the production line as and when they are needed, so
that there is no storage in the production area. Within this system, workstations
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located along production lines only produce/deliver desired components when they
receive a card and an empty container, indicating that more parts will be needed in
production. In case of line interruptions, each workstation will only produce enough
components to fill the container and then stop.
In addition, Kanban limits the amount of inventory in the process by acting as an

authorization to produce more inventories. Since Kanban is a chain process in which
orders flow from one process to another, the production or delivery of components
are pulled to the production line. In contrast to the traditional forecast oriented
method where parts are pushed to the line.
"Kanban represents an efficient tool to continuously rationalize the production

process and find the source of problems”. Since the circulation of Kanban will stop if
there is a production problem on line, it is easy to both spot and correct the problem
instantaneously.
THE KANBAN PROCESS- MORE THAN INVENTORY CONTROL
To managers outside of Japan, Kanban may look only like a pure production method
having little or nothing to do with the surrounding environment. This is a fallacy.
Instead, the concept takes form on the shop floor, in close interaction between the
work force and management, and more importantly, involves both internal and
external customers. Identifies Kanban as a production system, which draws many of
its elements from two primary sources: industrial re-engineering and work force
(Japanese) Kanban management.
Kanban scheduling systems operate like supermarkets. A small stock of every

item sits in a dedicated location with a fixed space allocation. Customers come to the
store and visually select items. An electronic signal goes to the supermarket's regional
warehouse detailing which items have sold. The warehouse prepares a (usually) daily
replenishment of the exact items sold.
In modern supermarkets Kanban signals come from checkout scanners. They travel
electronically (usually once a day) to the warehouse. Smaller stores still use visual
systems. Here, a clerk walks the aisles daily. From empty spaces he deduces what
sold and orders replacements
Advantages
• Low fixed stock (number of Kanbans in system)
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• Low lead-time
• Quality problems visible
• Highly stable
Disadvantages
• Inflexible (transfer batch fixed, except with "Variable Quantity Systems"

above)
• Can cause stoppages (often viewed as an opportunity to solve a problem)
• Highly stable! (But you may need to change it, or it may be an unstable
environment)
KANBAN IN WHIRLPOOL (FRO)
In the manufacturing Kanban system, a machine shop supplies components to final

assembly. Assembly is a manual operation with little setup and produces in lot sizes
of one, to customer requirements.
Machining is more automated and has significant setup costs. Machining produces in
batches to amortize the setup and sequence parts to minimize tool changes.
A small quantity of each part is maintained at machining. By observing the
quantities, the machinists know what products need to be made.
A Manufacturing Example
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In Whirlpool (FRO)
25 items are used in Kanban system in which cards are used.

30 items are used in Kanban without cards; the purpose of this system is to
minimize inventory inflow.
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KANBAN IN WHIRLPOOL
MILKRUN
It is a routine trip involving stops at many places. It is basically used for local
components. A transporter is fixed which take the material from the local vendors and
delivers it to the company
It is just like a Milk Van Route, in which the milkman collects milk from many vendors
and delivers it to different customers.
In Whirlpool (FRO)
A transporter named TCI (Transport Corporation Of India) SUPPLY CHAIN

SOLUTION is fixed. They provide various vehicles to the company.
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The requirement is send to 5-6 Vendors, time and route is fixed from vendors and as
per schedule pick the orders.
Bulky components like freezer etc are not used in Milk run.
WOIL SUPPLY CHAIN - INBOUND
• Supply Vehicle Turnaround
–Faridabad :- 12 to 24 trips a day

–NCR region :- 3 trips a day
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Just in Time (JIT)
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JIT system is a system of Purchases and Inventory management whereby the stores
make adequate arrangements with the suppliers so as to bridge the gap between
delivery and consumption. The effect of the JIT system is that the system is able to
work with the minimum stock level and the cost of making an investment in keeping
the stores is passed on to the suppliers.
JUST-IN-TIME (JIT) PRODUCTION
Just in time (JIT) is defined in the APICS dictionary as “a philosophy of

manufacturing based on planned elimination of all waste and on continuous
improvement of productivity”.
It also has been described as an approach with the objective of producing the right
part in the right place at the right time (in other words, “just in time”).
Waste results from any activity that adds cost without adding value, such as the
unnecessary moving of materials, the accumulation of excess inventory, or the use of
faulty production methods that create products requiring subsequent rework.
JIT (also known as lean production or stockless production) should improve profits
and return on investment by reducing inventory levels (increasing the inventory
turnover rate), reducing variability, improving product quality, reducing production
and delivery lead times, and reducing other costs (such as those associated with
machine setup and equipment breakdown).
In a JIT system, underutilized (excess) capacity is used instead of buffer inventories

to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same
products and components are produced over and over again. The general idea is to
establish flow processes (even when the facility uses a jobbing or batch process
layout) by linking work centers so that there is an even, balanced flow of materials
throughout the entire production process, similar to that found in an assembly line. To
accomplish this, an attempt is made to reach the goals of driving all inventory buffers
toward zero and achieving the ideal lot size of one unit.
The basic elements of JIT were developed by Toyota in the 1950's, and became
known as the Toyota Production System (TPS). JIT was well established in many
Japanese factories by the early 1970's.
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JIT Just-in-Time manufacturing
`Just-in-time' is a management philosophy and not a technique.
It originally referred to the production of goods to meet customer demand exactly, in

time, quality and quantity, whether the `customer' is the final purchaser of the product
or another process further along the production line.
It has now come to mean producing with minimum waste. "Waste" is taken in its
most general sense and includes time and resources as well as materials.
Elements of JIT include:

 Continuous improvement.
 Attacking fundamental problems - anything that does not add value to the
product.
 Devising systems to identify problems.
 Striving for simplicity - simpler systems may be easier to understand, easier
to manage and less likely to go wrong.
 A product-oriented layout - produces less time spent moving of materials
and parts.
 Quality control at source - workers are responsible for the quality of their
own output.
 Preventative maintenance, Total productive maintenance - ensuring
machinery and equipment functions perfectly when it is required, and
continually improving it.
 Eliminating waste. There are seven types of waste:
• Waste from overproduction.

• Waste of waiting time.
• Transportation waste.
• Processing waste.
• Inventory waste.
• Waste of motion.
• Waste from product defects.
 Good housekeeping - workplace cleanliness and organisation.
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In Whirlpool (FRO)
Milk van route is used for local items. JIT is used in the items, which are delivered
to shop floor directly from Vendor.
For Example: Plastic components, Bush and Knobs.
In Whirlpool the JIT operations are being done on roughly 180 items in a separately
managed location primarily low value and high volume (C Class) items.
The JIT system presupposes the following attributes:
 The company should have reliable suppliers with adequate capacity to fulfill the
requirement on timely basis.
 The suppliers should have shared understanding of as well as acceptability for the
system and the requirement schedule.
 The procurement division must have elaborate scheduling arrangements for the
purchases including keeping buffer with vendors as well as alternative vendors.
 The store staff has to be ever alert about the situation so as to be able to act
quickly in the case of contingencies else the impact might be dreadful.
 Since JIT system discourages the inventory in excess of the current requirement
hence the system cannot afford to deviate frequently from the established plan
because it puts the stores arrangements under unnecessary stress and pressure to
perform. Thus the stable production schedule should be adhered as far as possible.
LIMITATIONS
This project is a result of my training in finance at WHIRLPOOL .It was a
successfully completed so that this report is prepared. But nothing is perfect we know
so this report also has some limitations, which is observed by me. These are as
follows:
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 Lack of time is one of the problems, which is faced by me during this training.
 Lack of supervision.
 Biased data as data is also collected through secondary sources, thus the bias of
publication might have entered into the research report.
 Lack of experience as this is very first report prepared by me so due to
inexperience there may be some limitation
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Every Home, Every Where

Every Home, Every Where

With deep sincerity and immense sense of pleasure, I had completed my

In the modern technical education set-up more stress is being laid

on practical experience of students. For this purpose, various workshop

practice and industrial trainings are arranged for management students.

After 2nd semester, I had undergone summer training at WHIRLPOOL

OF INDIA LTD. FARIDABAD REFRIGERATION

ORGANIZATION (FRO) Faridabad, Haryana.

I am extremely grateful to Mr. Sanjay Aggarwal,

Senior Manager (Finance), Mr. Pawan Kumar (Manager), Mrs. Reena

Aggarwal (HR. Manager) Mr. Naresh Johar (Deputy Manager), Ms

during my training period. My sincere thanks to all the people of finance

department who had given me opportunity to work with such a world

class company and helped me a lot to complete my curriculum.

 Information from SAP...................................................... 52

 Project 1 Evaluation of fixed Assets

• Introduction to Fixed Assets .............................................. 58

 Project 2 Movement of Inventory in Whirlpool

Sanjay Aggarwal (Senior Manager)

Whirlpool plans to launch products to suit the Indian customer in various

Whirlpool, Electrolux, Samsung and Videocon. Whirlpool has a market share of

THE WHIRLPOOL MISSION STATEMENT

 WE WILL BE DEMANDING OF OURSELVES SO AS TO CARE FOR OUR CUSTOMERS LIKE NO OTHER

ABOUT WHIRLPOOL CORPORATION

Whirlpool Corporation is the world’s leading manufacturer and

WHIRLPOOL CORPORATION TODAY.

THE WHIRLPOOL VISION

Whirlpool, in its chosen lines of a business will grow with new

• Operational Excellence (OPEX): A methodology for solving problems &

• Customer Excellence: Excelling the customer expectation from the company,

THEN WHIRLPOOL WENT THE GLOBAL WAY.

Whirlpool strategy has been to remain focused on major home

In Asia, Latin America, North America and Europe, in all the

WHIRLPOOL IS POSITIONED GLOBALLY

• Partnering to build win – win relationships.

Whirlpool Corporation in Asia

Whirlpool Corporation is the leading major home appliance

• Leader among Western companies, with No. 1 market position in India

Whirlpool, Maytag, Kitchen Aid

On February 24, 1995, Whirlpool acquired controlling

A new project in the Global No-Frost refrigerator plant in Ranjangaon, Pune,

Whirlpool plans to launch products to suit consumers in various income

WHIRLPOOL’S GOAL IN INDIA

TO BECOME THE MOST PROFITABLE PRODUCER OF T-2 PRODUCTS;

Whirlpool has manufacturing facilities at three places:

Washing Machines Pondicherry, Madras Started April’94

WHIRLPOOL SHARES AND LISTING

Whether The Company Forms A Part Of The Following Indices -

Date Of Demat Status

Source: www. capitalmarket.com

On association with Whirlpool:

"Whirlpool believes in providing world-class quality to its consumers. Whirlpool is a

The intense emotional hero – Ajay Devgan

On association with Whirlpool:

Anand Bhatia, Chairman

Directors Remuneration Committee

Investors Grievance Committee

Share Transfer Committee

New Share Certificate Committee

On February 24 th 1995; Whirlpool acquired controlling interest in

PRODUCTION CAPACITY IN FRO PLANT

The production capacity in Faridabad Refrigeration Organisation Plant (FRO) is