INTRODUCTION

Inventory is generally defined as “stock at a particular location”. Traditionally

inventory for a manufacturing business is classified as raw materials, work-in-progress,
finished goods and MRO (Maintenance, Repairs and Operating supplies). For retail and
distribution businesses, majority of the inventory can be labeled as finished goods. For
service industries, majority of the inventory can be labeled as consumables.

Effective inventory management plays a critical role in the smooth and efficient
running of any business. Reducing excess inventory and investing in the right inventories
lead to improved customer service, increased inventory turnover, reduced costs and
increased profitability.

OBJECTIVES OF THE STUDY

• To learn various inventory management procedures followed at ECIL.

• To understand relative advantages and disadvantages of various techniques.

• To review the ABC Analysis and understand the impact of business dynamics on
inventory

• To evaluate and monitor inventory management function at corporate level.

NEED FOR THE STUDY

• To analyze and study the management of inventory in the company.

• To discuss the pattern of the data and highlight whether the unit has been
operating with high or low.

• To know about the company’s inventory.

 METHODOLOGY

The total required data for the study has been collected by using the methodology
of categorizing it in two ways viz., primary data and secondary data. Data collection was
made in systematic manner, as follows.

PRIMARY DATA

The primary data comprises information obtained by the candidate during discussions
with Heads of Departments and from the meeting with officials and staff.
SECONDARY DATA

The secondary data is collected from various sources available with the
organization like Organizational websites, Newspapers and magazines Organizational
literature , Library books.

The data is very useful because the company’s back ground and its objectives can
be known from these courses itself.

INDUSTRIAL PROFILE

The worldwide electrical and electronic industry is the most flourishing and
extremely diversified sector consisting of manufacturers, suppliers, dealers, retailers,
electrical engineers, electricians, electronic equipment manufacturers, and trade unions.
This sector has been growing at a rapid pace with the invention of innovative
technologies and an ever-increasing customer inclination towards electronic goods and
services.

The global electrical and electronics sector is highly fragmented, comprising of

various auxiliary sectors namely electronic components, computer and office equipment,
telecommunications, consumer appliances and industrial electronics.

Comprises of various establishments engaged in designing, manufacturing,

marketing, supporting, selling and distributing of broad range of electronic components
such as bolts, clamps, fasteners, rivets, lighting, semi conductor, integrated circuits,
microprocessors, cables and wires, switches, sensors, keyboards, sockets, timing devices,
laser modules, solar devices, test and inspection equipment, scientific and technical
instruments etc. US, Japan, Europe, China, Taiwan, and Hong Kong are the leading
markets of electronic components in the world. Semiconductor sector is the largest and
highly profitable sector. The global semiconductor industry is worth $248 billion, of
which China accounts for $ 63 billion. China, United States and Japan are the largest
semiconductor producing countries in the world.

COMPANY PROFILE

Electronics Corporation of India Limited, well known as ECIL, was formed in the
year 1967, to be the torch bearer of the technology revolution in the 70’s with the motto
of “R&D and Self-reliance”, the key factors for growth. Today ECIL is well known in
India for pioneering the electronics and computer revolution and has always been the
leader in these fields by bringing out a number of 'firsts', especially in the area of national
infrastructure building. Over the years the company has blossomed into a multi-product
and multi-disciplinary organization providing key technology inputs, system integration
and system solutions in the areas of Information Technology, Strategic Electronics ,
Communications, Control and Automation, Instrumentation and Components.

Over the years, ECIL has set up extensive infrastructure for design, development,
manufacturing and quality assurance which includes, CAD/CAM, computer networks for
material management and MIS, antenna spinning facility, antenna test range, quality
control and calibration laboratories, and all that is required to enable the company to
perform.

ECIL's expertise: As a center of excellence, ECIL’s forging ahead in IT education

is supported by umpteen numbers of Companies; Corporate’s spread across all over the
country. “To grow and excel in the electronics business, consistent with international
standards and national priorities, as well as to pursue the goal of self reliance”.
 FINDINGS

• Total Inventory

There was good coordination between the Marketing, planning,

procurement, production and distribution functions of ECIL, higher
inventory turnover was possible.

• Raw material

For few finished products, most of the important raw materials are either
self manufactured or procured locally.

SUGGESTIONS

Demand Planning:

Setting up of an exclusive department to towards planning of

finished goods and other materials.

Integration of all the functions of the organization enhances the prospects of

the company as a global player.

Leverage of e-commerce:

Sourcing and distribution through Internet. As of now very little efforts are
being put in sourcing the input material but no definite plans exist for the
purpose of marketing and distribution of finished goods through e-
commerce. This has to be strengthened to increase the turnover of the
company.