PROJECT REPORT ON MATERIALS

MANAGEMENT

Contents
LANCO AT A GLANCE....................................................................................................2
Genesis and evolution.....................................................................................................2
Corporate profile.............................................................................................................5
Project............................................................................................................................. 7
LANCO Projects Limited drives our businesses in the construction sector. We own one
of Asias largest banks of sophisticated construction equipment.....................................7
Power.............................................................................................................................. 9
Communications........................................................................................................... 10
Shipping ports & logistics...............................................................................................11
Current status...................................................................................................................... 14
layout of LANCO paradeep plant...........................................................................................17
MATERIALS MANAGEMENT...............................................................................................17
Areas of Concentration.....................................................................................................18
Goals............................................................................................................................. 18
Quality Assurance......................................................................................................... 18
Standards...................................................................................................................... 18
Promoting Sustainability................................................................................................18
Improving circulation infrastructure................................................................................18
Benefits......................................................................................................................... 19
FUNCTIONS AND DUTIES OF STORES DEPARTMENT:-.......................................................23
standard operating procedure................................................................................................27
Safety measures............................................................................................................... 29
Perpetual Inventory.......................................................................................................39
A monthly stock count procedure would involve a complete stock count i.e. counting the
entire inventory. A weekly perpetual inventory system on the other hand would involve

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counting some of the quantity on a weekly basis such that the entire stocks are counted
at least twice a year or once every quarter. Inventory Schedule...................................39
Inventory Count Sheets.................................................................................................39
Cut Off Procedures........................................................................................................40
Third Party Stocks......................................................................................................... 40
Comparison with System Stock.....................................................................................40
Variance Analysis.......................................................................................................... 40
physical verification of capital goods .....................................................................................41
inventory of steel....................................................................................................................54
figures....................................................................................................................................56
physical verification of steel..................................................................................................58
inventory of cement..............................................................................................................60
stacking procedure of cement............................................................................................61
inventory of diesel...............................................................................................................64
stacking procedure of diesel...............................................................................................64
problems.............................................................................................................................65
suggestions.........................................................................................................................65
stores credit to management..............................................................................................66
references.........................................................................................................................67

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LANCO AT A GLANCE

Genesis and evolution

The LANCO Group was founded in 1969, by brothers Mr Shashi Ruia and Mr Ravi Ruia.
The 21st century for the Group has been all about consolidating and growing the
businesses

The Ruia familys origins are in Rajasthan. Sometime in the 19th century, they moved to
Mumbai and set up their own business. In 1956, Mr Nandkishore Ruia, father of Mr Shashi
Ruia and Mr Ravi Ruia, moved to Chennai, capital of the south Indian state of Tamil Nadu, to
begin independent business activities. He mentored his two sons in the intricacies of
business. When Mr Nandkishore Ruia passed away in 1969, the brothers laid the foundation
of the Group.
The LANCO Group began its operations with the construction of an outer breakwater in
Chennai port. It quickly moved to capitalize on every emerging business opportunity,
becoming Indias first private company to buy a tanker in 1976. The Group also invested in a
diverse shipping fleet and oilrigs, when the Government of India opened up the shipping and
drilling businesses to private players in the 1980s.
Then, in the 1990s, LANCO began its steelmaking business by setting up Indias first sponge
iron plant in Hazira, a coastal town in the western Indian state of Gujarat. The Group went on
to build a pellet plant in Visakhapatnam, and eventually a fully integrated steel plant in
Hazira.
Through the 1990s, with the gradual liberalization of the Indian economy, LANCO seized
every opportunity that came its way. It diversified its shipping fleet, started oil & gas
exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set
up a power plant near the steel complex in Hazira. The construction business helped the
Group build most of its business assets. LANCO also entered the GSM telephony business,
establishing Indias first mobile phone service in Delhi (branded LANCO Cell phone) with
Swiss PTT as the joint venture partner.
The 21st century for the LANCO Group has been all about consolidating and growing the
businesses, with mergers and acquisitions, new revenue streams and strategic geographical
expansion

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The LANCO spirit

The LANCO Group has been foraying into new international markets, and exploring new
business areas in a bid to keep its entrepreneurial spirit alive, and to keep growing

VISION
we will be a respected global entrepreneur, through the power of positive action.
MISSION
We are committed to innovative growth, through our personal passion, reinforced by
a
professional
mindset,
creating
value
for
all
those
we
touch.
Spirit
The LANCO Group has changed significantly in recent years and continues to evolve, to
keep pace with the changing times. We have undertaken a sustainable journey of
transformation by foraying into new international markets, and exploring new business areas
in a bid to keep our entrepreneurial spirit alive, and to continue growing.
To mark the phenomenal growth witnessed over the last four decades, the Group recently
unveiled its new brand identity marking a very important milestone in its journey and
reflecting a new beginning for the Group. A new brand identity reinforces all the positives to
fulfil our vision to be a global entrepreneur through the power of positive action.
We aim to have a robust value system comprising positive attitude, positive action and
positive achievement.
We endeavour to create enduring value for customers and stakeholders in core
manufacturing and service businesses, through world-class operating standards, state-ofthe-art
technology
and
the
positive
attitude
of
our
people.
Privately owned and professionally managed, the Group is judiciously invested in the
commodity, annuity and services businesses. Forward and backward integration, the use of
state-of-the-art technology, in-house research and innovation have made LANCO Global a
force to reckon with in each of its businesses.

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Finally, the LANCO way is all about keeping its entrepreneurial spirit alive, and to keep
growing with a passion to progress and the power to succeed with a renewed strength of
purpose and commitment.

Corporate profile
Moving beyond Indian frontiers, the LANCO Group continues to grow internationally through
focused strategies

The LANCO Group is a multinational conglomerate and a leading

player in the sectors of Steel, Oil & Gas, Power, Communications,
Shipping Ports & Logistics, Construction and Minerals. With operations
in more than 20 countries across five continents, the group employs
60,000 people, with revenues of about USD 15 billion.
LANCO began as a construction company in 1969 and diversified into
manufacturing, services and retail. Over the last decade, it has grown
through strategic global acquisitions and partnerships, or through Greenfield and Brownfield
development projects, capturing new markets and discovering new raw material sources.
Today, the Group continues to expand its global footprint, focusing on markets in Asia, Africa,
Europe, the Americas and Australia. LANCO invests significantly in the latest technology to
drive forward and backward integration in its businesses, and on leveraging synergies
between these businesses. It also focuses on in-house research and innovation to be a lowcost manufacturer with high quality products and innovative customer offerings.
Alongside its ambitious business pursuits, LANCO has been committed to its social
responsibility. The Group runs community outreach initiatives in all its plant locations, with a
focus on education, healthcare, environmental and agricultural development, and selfemployment.
LANCO is committed to sustainable business practices. Our HSE (Health, Safety and
Environment) management system is on par with global standards. We are also taking
climate change initiatives to reduce our carbon footprint. This includes several CDM (Clean
Development Mechanism) projects that can earn the company CER (Certified Emission
Reduction) credits. A growing number of our businesses with new businesses joining the list
every year are certified to international environment standards, like ISO 9001 / 14001, and
health and safety standards, like OHSAS 18001.
The LANCO Group is widely regarded as a responsible and conscientious global employer.
It has experience in managing businesses in different geographies with a culturally diverse
workforce. This is why its people practices are sensitive to cross-cultural nuances. The
Groups people strategy is focused on promoting a learning culture that continually enhances
the professional skills of its employees.

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Board of directors
Listed here are the promoter directors of the LANCO Group. Each company under the
Group is independently run by a team of professionals

promoter Directors

Mr Shashi Ruia
Chairman
LANCO Group

Mr Ravi Ruia
Vice Chairman
LANCO Group

Mr Prashant Ruia
Group Chief Executive
LANCO Group

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Mr Anshuman Ruia
Promoter Director
LANCO Group

Ms Smiti Kanodia
Promoter Director
LANCO Group

Mr Rewant Ruia
Promoter Director
LANCO Group

Management team

Mr J Mehra Director, LANCO Group

Mr Malay Mukherjee CEO, Steel Business Group
Mr Naresh Nayyar CEO, Energy Business Group
Mr Shishir Agarwal CEO, Exploration & Production Business
Mr Sanjay Mehta CEO, Shipping & Logistics Business Group
Mr Rajiv Sawhney CEO, Telecom Business Group
Mr Aparup Sengupta CEO, Aegis
Mr Alwyn Bowden CEO, Projects Business Group
Mr Pradeep Mittal CEO, Minerals & Mining Business
Mr Vikash Saraf Director, Strategy & Planning, LANCO Group
Mr VG Raghavan CFO, LANCO Group
Mr Adil Malia Group President, Human Resources
Mr SM Lodha Group President, Assurance and Cost Control
Mr Sunil Bajaj Head, Corporate Relations Group

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be understood

has a science of studying how research is done scientifically. In it we study the various steps
that all generally adopted by a researcher in studying his research problem along with the
logic behind them.
The scope of research methodology is wider than that of research method.

Meaning of Research

Research is defined as a scientific & systematic search for pertinent information on a

specific topic. Research is an art of scientific investigation. Research is a systemized effort
to gain new knowledge. It is a careful inquiry especially through search for new facts in any
branch of knowledge. The search for knowledge through objective and systematic method of
finding solution to a problem is a research.

RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in
a manner that aims to combine relevance to the research purpose with economy in
procedure. In fact, the research is design is the conceptual structure within which research is
conducted; it constitutes the blue print of the collection, measurement and analysis of the
data. As search the design includes an outline of what the researcher will do from writing the
hypothesis and its operational implication to the final analysis of data.

The design is such studies must be rigid and not flexible and most focus attention on the
following ;
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Research Design can be categorized as:

TYPES OF RESEARCH
DESIGN

EXPLORATORY
RESEARCH
DESIGN

DESCRIPTIVE
&

EXPERIMENTAL
RESEARCH
DESIGN

DIAGNOSTIC

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig
out new relationship. Research design is flexible enough to provide opportunity for
considering different aspects of problem under study. It helps in bringing into focus some
inherent weakness in enterprise regarding which in depth study can be conducted by
management.

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METHODOLOGY
SOURCES FOR DATA COLLECTION :-

1. PRIMARY DATA :
It is collected directly by the company and Approaching of different levels of
heads and managerial people. Responses collected with the help of the schedule
administered to the employees and management of LANCOis the main primary
source of data for this research work. The primary data are collected in three phases.
In the first phase, the purpose and objectives of study are explained to them and
requested to go through the schedule thoroughly. In the second phase, doubts of the
respondents about the contents of the schedules are collected from the respondents
by holding further discussions to elicit additional information.

2. SECONDARY DATA :
It can be collected through company libraries, books, news papers, Maxines
and websites. The secondary sources of data are collected from the magazines,
journals, bulletins, web sites and annual reports, etc., published by the organization
.In addition to these, several structured interviews, and unstructured interviews, have
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also been conducted with experts on the subject and also a number of persons who
are connected in one way or other, either directly to know about job satisfaction of the
employees.

COLLECTION OF DATA :-

A questionnaire with a set of questions was constructed and administered to

the sample employees of the organizations to elicit first hand information relating to the job
satisfaction of employees at Lanco Industries Ltd.

Data should be collected in different ways as

Informal interviews
Questionnaires
Direct observations.

SAMPLE SIZE :-

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Data is collected from 150 respondents. This is a sample from total population of
employees.This response may consider as the total people opinions, because of lack of
time. The sample size was put 150 chosen from various functional areas of the
organization. Stratified random sampling system has been followed to select employees of
Lanco Industries Ltd.

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Project
LANCO Projects Limited drives our businesses in the construction sector. We own one of
Asias largest banks of sophisticated construction equipment
With over 5,000 people, we are a global engineering, procurement
and construction (EPC) company headquartered in Dubai,
with offices in India, China and the Czech Republic.

the

LANCO

We honed our skills in the construction of industrial plants and

infrastructure as the turnkey EPC Company for most of the LANCO
Groups world-class projects and supporting infrastructure. Marine
construction is one of our special strengths. Indeed, the very origin of
Group
was
in
specialized
marine
construction.

We have built 320,000 bpd of refining capacity and developed over 10 million tons of steel
capacity. We have laid more than 5,000 km of pipelines and developed 1,200 MW of power
projects, and are developing another 4,800 MW.
Our offshore EPCI capabilities currently execute a USD 220 million project for ONGC. We
own over 3,000 nos. construction equipment worth over USD 250 million.
We have 12,000tpa (tons per annum) of fabrication facility with waterfront load-out facility
and also have a dedicated Engineering Centre specializing in Engineering and Design for
the Process and Industrial sectors, with over 1,200 engineers. With over USD 6 billion
procurement capability, we have global procurement support in the Middle East and China.
The ISO 9001:2000 certified pipeline division of our construction business unit is a specialist
in onshore, offshore and cross-country pipelines, from construction to commissioning. The
pipeline division holds the distinction of building the worlds second longest slurry pipeline
LANCO Steels 267km Bailadilla-Vizag slurry pipeline.
Our customers can rely on our skilled, engineering team, large bank of the latest
construction equipments, and our talent for scouting the globe to procure the best materials
and equipment at competitive prices.
Our long and impressive list of clients includes most major Indian ports,
the National Highway Authority of India, the Gujarat Water Supply and
Sewerage Board, the Gas Authority of India, Hindustan Petroleum and
ONGC. Our expertise is also internationally recognized, whether for the
pipelines we laid in Qatar or the cold rolling mill we built in Indonesia.
We have won contracts from government agencies through local and
international competitive bidding, meeting the stringent requirements of
the World Bank and the Asian Development Bank.
With four decades of project management expertise, LANCO Projects Limited is strategically
placed to support the infrastructure explosion in India and abroad

Oil and Gas

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LANCO Oil operates a fully integrated oil company of international size and scale in India

LANCO Oil's assets include developmental rights in proven exploration

blocks, a 10.5 mtpa refinery on the west coast of India and over 1,300
LANCO-branded oil retail outlets across India. Plans are under way to
increase its exploration acreage in various parts of the globe, expand
its refinery capacity to 36 mtpa, and open 3,000 outlets countrywide.
Our global portfolio of onshore and offshore oil and gas blocks, with
about 70,000 sq km is available for exploration. We have over 300,000
bpd (barrels per day) of crude refining capacity that is being expanded to 750,000 bpd, with
a goal to reach a global refining capacity of 1 million bpd. We have a 50 percent stake in
Kenya Petroleum Refineries Ltd., which operates a refinery in Mombasa, Kenya, with a
capacity
of
80,000
bpd.
Our Exploration and Production (E&P) business has participating interests in several
hydrocarbon blocks for exploration and production of oil and gas. This includes the Ratna
and R-Series blocks on Bombay High, and an E&P block in Mehsana, Gujarat, which has
currently started commercial production. It has also been awarded a Coal Bed Methane
(CBM) block at Raniganj in West Bengal, and two more E&P blocks in Assam, India. The
overseas E&P assets include three onshore oil and gas blocks in Madagascar, Africa, and
one offshore block each in Vietnam and Nigeria.
We have a 10.5 mtpa refinery at Vadinar in Gujarat, which started commercial production on
May 1, 2008. It has been built with state-of-the-art technology and has the capability to
produce petrol and diesel suitable for use in India as well as advanced international markets.
It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine Fuel (ATF) and kerosene.
The refinery has been designed to handle a diverse range of crude from sweet to sour
and light to heavy. It is supported by an end-to-end infrastructure setup including SBM
(Single Buoy Mooring), crude oil tankage, water intake facilities, a captive power plant
(currently 120 MW, being expanded to 1,010 MW), product jetty and dispatch facilities by
both rail and road.
The refinery is strategically located in Vadinar, a natural all-weather,
deep-draft port that can accommodate Very Large Crude Carriers
(VLCCs). Vadinar also receives almost 70 percent of Indias crude
imports. Post its expansion to 36 mtpa, the refinery will run at a Nelson
Complexity of 12.8. This means it will be able to refine all varieties of
crude, producing Euro 5 grade fuels. It will also be among the largest
single location refineries in the world thus leveraging on economies of
scale.
.

Power

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LANCO Power operates four power plants with a combined capacity of 1,220 MW in three
locations across India

LANCO Power has two gas-based plants, of 500MW and 515MW

capacities in Bhander and Hazira respectively, a 120MW co-generation
plant
in
Vadinar
and
an
85MW
plant
in
Algoma.
Work is currently under way to expand the current generation capacity
of 1,220MW to 6,100MW by 2012, with a target to reach 11,470MW in
the near future. The company will set up three coal-based plants of
1,200MW each in Gujarat, Madhya Pradesh and Jharkhand,
aggregating 3,600 MW. An additional 1,280MW is also under construction 1160 MW in
Gujarat and 120MW in Srikalahasti to supply power and steam to the expanded refinery.
An

additional

5,370

MW

is

under

development.

As the first private company with a license to enter the transmission and power trading
segments, we are now a fully integrated, end-to-end player in the power sector. By using the
latest technology and equipment, we generate and supply power at very competitive price
points. LANCO currently has complete fuel linkages secured for all projects under execution.
We also have the capability to execute power projects for other companies.
LANCO power is exploring opportunities for new projects based on thermal, wind and hydro
energy. We are also committed to reducing emissions from our plants and earning carbon
credits. The 500MW combined cycle power plant at Hazira is eligible for Certified Emission
Reductions (CERs) under the Kyoto Protocol's Clean Development Mechanism (CDM).
The investments made towards the projects under execution are over USD 4 billion

Communications
LANCO Telecom Infrastructure is one of the largest independent telecom infrastructure
service provisioning companies in the country.

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Vodafone-LANCO is a joint venture of LANCO Communication Holdings Ltd and the UKbased Vodafone Group. It is one of Indias largest cellular service companies. We have over
100 million telecom subscribers in India and Kenya. We have majority stake in the telecom
assets of the Dhabi Group in Uganda and the Republic of Congo.
We operate integrated IT enabled services through the Aegis brand name, with a presence
in interaction services, back office services and value-added services. Aegis operates in 40
locations and employs over 40,000 employees in India and the US, with expertise in the
telecom, insurance, banking and healthcare domains.
We have launched India's first countrywide chain of multi-brand and
multi-service outlets in the telecom retail space. The MobileStore Ltd
currently runs 1,300 outlets, branded The MobileStore. In the next two
years, over 2,500 outlets will come up across 650 cities.
LANCO Telecom Infrastructure is one of the largest independent
telecom infrastructure service provisioning companies in the country. It
builds telecom tower infrastructure and shares it with several telecom
operators in India. It has a pan-India presence in telecom tower infrastructure with more than
4,500 telecom towers operational. LANCO has a 14 per cent stake in Indus Towers, Indias
largest
tower
company,
which
has
over
100,000
towers.
LANCO Communications Holdings Limited acquired a 49 per cent stake in Econet Wireless
International Limited by subscribing to fresh capital in the company. EWI has a 70 per cent
shareholding in Econet Wireless Kenya. LANCO and Econet Wireless Kenya have launched
'yu' Kenyas third mobile cellular network. This is a GSM-based mobile services network
in Kenya with close to a million subscribers.

Shipping ports & logistics

LANCO is an end-to-end logistics services provider with investments in ports and terminals,
logistics services, sea transportation and oilfield drilling services

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Our integrated business model provides opportunities to cater to the

complete supply chain management services to clients in oil and gas,
steel and power generation industries. We are one of Indias largest
operator of ports and, building a cargo handling capacity (both dry and
bulk
cargo)
of
over
150
million
tons.
Our ports and terminals business operates a crude oil and petroleum
products terminal at Vadinar and includes the construction of a dry bulk
port at Hazira and a coal jetty at Salaya, all in the state of Gujarat. The Vadinar terminal, is
an all-weather, deep-draft port, which provides crude oil and petroleum products storage,
handling and terminal services. The port has a Single Point Mooring system capable of
handling crude capacity of up to 27mmtpa, and marine facility for export of petroleum
products
of
up
to
6.5mmtpa.
The dry bulk port being constructed at Hazira involves setting up a 30mtpa all-weather,
deep-draft port and jetty facility. The port will have a berth of 550 meters length, and an
alongside depth of 12.5 meters. The proposed berth will handle the import of iron ore,
pellets, coal, limestone and export of finished steel products. The port facility at Salaya
comprises setting up a 10mtpa marine material handling facilities to cater to the need of
imported coal requirement and export of petroleum coke.
LANCO's logistics business provides end-to-end logistics services
from ships to ports, lighter age services, intra-plant logistics and
dispatch of finished products. We own trans-shipment assets to provide
lighter age support services, and onshore and offshore logistics
services. We also operate a fleet of 4,200 trucks (38 of which we own)
to provide inland transportation of steel and petroleum products.
Our sea transportation business provides transportation management
services for crude oil and petroleum products, and dry bulk cargo to the global energy, steel
and power industries. With an experience of more than 220 ship years, we own a diverse
fleet of 25 vessels, and a further 12 new building vessels are on order at an investment of
over USD 0.6 billion.
Our oilfields drilling business offers onshore and offshore contract drilling, and offshore
construction services. We offer contract drilling services to global oil majors, with a fleet of
13 onshore rigs and one super-specialty semi-submersible offshore rig; 2 new jack-up rigs
on order

STEEL

LANCO Steel is a global producer of steel with a footprint in India, Canada, USA, the Middle
East and Asia

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We are a fully integrated flat carbon steel manufacturer from iron ore to ready-to-market
products with a current capacity of 8.6 million tonnes per annum (MTPA). With our
aggressive expansion plans in India, as well as Asia and the Americas, we aim to achieve a
capacity of 14 MTPA by 2011-12. Our products find wide acceptance in highly discerning
consumer sectors, such as automotive, white goods, construction, engineering and
shipbuilding.
LANCO Steel is one of India's largest exporters of flat products,
exporting to the highly demanding US and European markets, and to
the growing markets of South East Asia and the Middle East.
A number of major client companies have approved our steel for their
use, including Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway,
and Maruti Suzuki. LANCO Steel has acquired extensive quality
accreditations. Our lean team gives us one of the highest productivities
and lowest manpower costs among steel plants internationally
Seamless integration
A major strategic advantage is our high level of forward and backward integration. We are
totally integrated - from raw material to finished products, adding value at every stage of the
manufacturing process.
Bailadilla facility: Iron ore beneficiation
At Bailadilla, where some of the world's richest and finest ore is available, we have set up a
beneficiation plant of 8 MTPA capacities, which ensures the highest quality iron ore. The iron
ore slurry is pumped through a 267 km pipeline (the second longest in the world) to the pellet
plant, yielding advantages in quality, cost and real time inventory management.
Visakhapatnam facility: Pelletisation
The slurry is received at our pellet plant at Visakhapatnam, which has a capacity of 8 MTPA,
providing vital raw material for the steel plant at Hazira.
Hazira
Our steel complex at Hazira, Gujarat, houses a 5.0 MTPA sponge iron
plant, the world's largest gas-based sponge iron plant in single location.
The plant provides raw materials for our state-of-the-art 4.6 MTPA hot
rolled coil (HRC) plant, the first and largest of India's new generation
steel mills. This plant is fed with inputs from four electric arc furnaces
and three casters. The complex's sophisticated infrastructure includes
independent water supply and power, oxygen and lime plants, a
township and a captive port capable of handling up to 8 MTPA of cargo
with modern handling equipment like barges and floating cranes

facility

Hazira Pipe Mill

Hazira Pipe Mill is located at Hazira, Gujarat has a combined capacity of 0.6 MTPA of helical
submerged arc welded (HSAW) and longitudinal submerged arc welded (LSAW) steel pipes
along with internal and external coating facilities of up to 2mn square meters annually. This
pipe making facility is backed by external and internal anti corrosion coating facilities.

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Cold rolling complex

At the other end of the value chain, our downstream facilities include a 1.4 MTPA cold rolling
complex, which adds further muscle to our steel making facilities. The complex comprises
two pickling lines of 1.4 MTPA capacity, a reversing mill and a 1.2 MTPA tandem mill, two
galvanizing lines of an aggregate capacity of 0.5 MTPA, a batch annealing furnace of 0.7
MTPA, and a skin pass mill of 1.0 MTPA. This enables us to get into the genre of products
that are tailor-made for the automotive, white goods, shipbuilding, agriculture and
construction industries - segments that had been the exclusive domain of a few international
manufacturers. LANCO now holds the leadership position in the cold rolling, galvanizing and
pre-coated segments.
Pune, Maharashtra
We have a 0.6 MTPA cold rolling plant, a 0.5 MTPA galvanising plant, a 0.4 MTPA colour
coating plant, and a 0.7 MTPA pickling line.
Distribution outlets
LANCO Steel is the first steel company to set up an end user distribution chain for steel
products under the brand name LANCO Hypermart. It has a strong network of over 474 steel
retail outlets. These outlets are conveniently located across the length and breadth of the
country to cater to the customized requirements of small and medium enterprises.
The hypermarts offer a comprehensive range of flat steel products for a variety of
applications. Other product lines, like longs, structural, and tubular, are also being developed
to make LANCO Hypermart a one-stop-shop for steel products.
Services (across India)
Largest Steel Service Centre facilities in India with an annual capacity of 2.6 million tonnes
located in Pune (Maharashtra), Hazira (Gujarat), Bahadurgarh (National Capital Region),
and Chennai (Tamil Nadu).
Canada facility: LANCO Steel Algoma
Established in 1901, LANCO Steel Algoma is an integrated steel producer based in Sault
Ste. Marie, Ontario, and Canada. The plant's current production capacity is 4 MTPA. Some
of the key equipment at the plant includes a low-cost, technologically advanced Direct Strip
Production Complex (DSPC), a slab caster, a 106-inch strip mill (one of the widest in North
America), a 166-inch plate mill, a cold mill and blanking facility that helps produce steel
customized for client requirements, and a welded beam division.
Indonesia facility: PT LANCO Indonesia
PT LANCO is Indonesia's largest private sector flat products company, with a domestic
market share of 35 percent and a history of process and product innovation. After a major
expansion drive, its CR capacity has been enhanced to 0.4 MTPA and its newly set up
galvanizing capacity is 0.15 MTP.

1 INDUSTRY PROFILE

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One cannot simply think of economic development without the growth of the Cement
Industry. Cement one of the basic elements for setting up storage and health infrastructure
plays a crucial role in economic development of a country.

Having more then a hundred and fifty years of history it had been used extensively
construction of anything from of building to projects. As such cement consumption may be
considered as one of the yardsticks in scaling economy. It is core sector industry and a rise
in the price of cement is bound to have inflationary effects on other industries with in the
economy.

India is the second largest cement producing country after China. The industry is
characterized by a high degree of
pressure on price realizations.

fragmentation that has creator intense competitive

Spread across length and breath of the country there are

120 large plants belonging to 56 companies of around 135 Million Tones (MT) as March
2002.

The industry was totally decontrolled in March 1989 and deli censed in July 1991
leading to a rapid increase in installed capacity from 61.55 Million Tones per annum in 198990 to 105.25 Million Tones per annum in 1996-97. Today cement ranks among the to five
industries in terms of their contribution to the union excise duty.

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Cement manufacturing involves hating a mixture of limestone and clay. Partial fusion
occurs and lumps called clinker are formed. The clinker is mixed with little amount of
gypsum to give ordinary Portland Portland Cement (OPC), mixing this with blast furnace slag
or husk yields. Portland Slag Cement (PSC) and Portland Pozzolonna Cement (PPC). The
producing capacities of are, PPC and PBFS are 70, 18 and 11 percent respectively. The
manufacturing process has also changed from the inefficient wet process to the more
efficient dry process 87% of the total capacity is of dry process and 13% is not.
Cement consumption growth is highly correlated to the GDP growth and serves and
a leading Indicator. More industrial activities and greater purchasing power means more
asset formation and thus more consumption of cement.

INDUSTRY STRUCTURE

The total world production of cement if to be around 1400 MT. Asia is the largest
consumer followed by Europe & the America. Indias installed capacity and production for
1996-97 was 105.25 Million Tones Per annum & 76.22 including mini and white sector. With
3.8 MT more already becoming operational this year and another 3 MT to be added, there
will be 57 large cement companies with 114 plants and an installed capacity of 109 Million
Tones per annum.

Before 1991 the Government uses to be the biggest consumer of cement accounting
for almost 40%-45%. Since then its share has been coming down and now stands at about
30%. About 37% is estimated taken up by the retail segment.

The cement sector is relatively insulated from international trade. Being a very bulky
item, International Trade is very limited and only between neighboring states. Although India
has been consistently exporting cement in the volume of exports took a beating after the
southern Asian crises. From a peak of 2.68MT 1998-99 cement exports from India have slid
down to 2.06MT in 1998-99.

21 | P a g e

With the expected huge demand in the Asian countries the future India being a
convenient country for the export oriented activities and with the cheaper labour there are
many cement companies entering India.

Cement is preferred as building material in India. It is used extensively in house hold

and industrial construction. Earlier government sector used to consume 50% of the cement
sold in India, but in the last decade it share has come down to 35% rural areas consume
less 23% of the total cement. Availability of cheaper building material for the nonpermanent
structure affects the rural demand.

The budget gave substantial incentives to private sector construction companies.

Ongoing liberalization will lead to an increase in

industrial activities and infrastructure

development so it is hoped that Indian cement industry shall boom again in near future. The
National highway Act to allow private toll collection and

identified projects, bridge,

expressways for private construction.

MARKETING:

Cement being a commodity item has low margins and its bulky nature ensures that
the supply is determined by the economical transportation distance, this led to the formation
of regional markets, Western, Northern, Southern and eastern. And the concentration of
limestone deposits in a few states has a led to the concentration of limestone the formation
of cement plant clusters at seven locations. Having surpassed the period of shortage and
achieving high growth

in capacity, implying springing up many plants, the industry is

getting competitive. Hence the necessary and need for coordinated marketing efforts.

The surplus cement that emerged towards end of the 1980s necessitated the Indian
cement industry to develop marketing strategies and look for new areas of cement usage.
On such are identified was the coast of concrete roads.

22 | P a g e

Since 1988 the cement manufacturers association has propagated the

idea of

concrete roads through a series of seminars, workshops and deliberations at decisionmaking levels at both state and central governments discussion with metropolitan authorities
and other involved in road building activities. As a result the Delhi Matura road is under
construction. The city of Bombay has already completed construction of one-third of its 350
km arterial roads with concrete.

More concrete roads and likely to be built in India both in the private and government
sectors including toll roads and express highways. The government has recently asked for
private participation including foreign investment for the construction of toll roads, some
which are likely to be concrete.

The incentives offered to private builders include a guarantee of minimum reasonable

rate of return on their investments, increase debt equity ratio up to 100% foreign equity
participation development of service and rest areas along the road. Expressways between
Bombay Nasik, Bombay Pune, Bangalore Mysore and Bombay Vadodara are some
of the roads identified.

23 | P a g e

3.2 COMPANY PROFILE

ESTABLISHMENT:

Lanco group is a fast growing and leading Indian Industrial group, which has blazed a
trial

of

success

in

Civil

Engineering,

Pig

Iron,

Cement,

Surface

Transport,

Shipping Services and other areas of industrial activity. S.V.Contractors Seaways Shipping
Services limited. Kalahasti Castings Limited and Lanco Steels limited. Are all frontline
companies in their respective field of activity.

M/s Lanco Ferro Limited, producing Pig Iron, was established in the year 1993 on
June 9th at Rachagunneri (Vill), Srikalahasti (Mandal), Chitoor (District), A.P. It was renamed
as M/s Lanco Industries Limited. On the 1 September 1994, when the Management started
the production of cement. The cement unit with state of the art vertical shaft kiln well
qualified personnel producing Portland Slag Cement. The annual capacity of the cement
plant is 90.000 tones.
Lanco Industries limited is presently at internal assessment stage of ISO 9002
certification for its manufacturing process.

LOCATION OF THE PLANT:

Lanco Industries limited is located in between Tirupati and Srikalahasti with 30km
and 10 km distance respectively.
Location of the plant at this place i.e., at Rachagunneri Village of Chittoor District,
A.P. having the following advantages.
Cheap availability of required land.
There is more water resource.
The distances between the harbor and present work spot is less.
Proximity to the raw materials.

24 | P a g e

 Proximity to the marketing.

To have financial subsidy.
Nearer to the railway sidings.
Well connected to the road, rail and port.
Availability of labour at cheaper rate.

CURRENT OPERATIONS:

Presently company is manufacturing 53 grades, ordinary Portland, Portland Cement

(OPC) with brand LANCO. The different varieties of cement that are being manufactured
at the factory are:

Ordinary Portland Cement (OPC)

+Portland Slag Cement (PSC)
Portland Pozzolonna Cement (PPC)

At present company is manufacturing Lanco Cement 53 grade. At present about

8000 tones of various grades of cement is having daily manufactured at the factory.

SAILENT FEAUTRES OF LANCO CEMENT:

1. High Strength & High Quality and great durability.

2. A very perceptible saving in cost (20%-25%) due to low setting time.
3. Superior quality of the cement resulting in a better overall finish.
4. Stronger bonding with aggregates.
5. Full strength had given to any construction (Pig Iron).

A Lanco industry is importing coke from china. Japan and Australia because there is
scarcity of prime cooking coal, which is the raw material for producing coke.The coke, which
is imported, comes to Chennai port, which is approximately 100km away from the site. And

25 | P a g e

from there it is brought to the site. And also fluxes, which are required to produce Pig Iron
like Limestone, Dolomic, Quartzite and Manganese, are available in near by districts.

PLANTS UNDER THE GROUP

The Pig Iron Plant and Lanco Cement plant are the two plants, which are presently
under the name of M/s.Lanco Industries Limited and Lanco Construction Limited is the sister
of concern of it.

ADMINISTRATION:
The general administration of the company is carried out by the Managing Director,
and General Managers of Finance, Commercial, Operations, Materials, Purchase, Human
Resource and Administration.

The Chairman and Managing Directors are holding overall control on administration
in all aspects, with the help of Vice-President and other General Managers. The board
consists of five members as Directors, Vice-Chairman, a Managing Director and a Company
Secretary.

The name LANCO has been derived from the promoter of the promoter of the Group
Shri. Lagadapati Amarappa Naidu. The Lanco Group is a diversified multi faced
conglomerate with the business interests in Pig Iron, Cement, Power, Graded Castings,
Spun pipes, Information Technology and Infrastructure Development.

The Lanco Group is promoted by Young Technology with exceptional entrepreneur

skills with a mission and a great vision and the top agenda to put the group on the Global
Corporate may be during the next 10 years.

LANCO INDUSTRIES LIMITED

26 | P a g e

Established in the year 1993. An ISO 9002 Company, it had set up a state of the art,
integrated manufacturing facility for Pig Iron through mini-blast furnace route conforming to
the latest international technology with initial capacity of 1,00,000 TPA. Its quality products of
S G Grade Pig Iron are being supplied to foundries in the South. As a forward integration, it
has utilized the slag produced in the Pig Iron manufacturing process to install the cement
plant with a capacity of 90,000 TPA. The uninterrupted power requirement for the energy
intensive plant is being met through a 2.5 MW co-generation power plant. Due to serve
competition and survival, company has increased the production capacity from 90,000 TPA
to 1, 50,000 TPA from 2003.

LOCATION

Lanco Industries Limited is a rural based factory sprawling over many areas of land
with deep resources and congenial soil. It is located in Rachagunneri Village near Tirupathi.
Nearly 50% of the consumption of electrical power is supplied by APSEB, Government of
Andhra Pradesh and other 50% of power is maintained by the company owned DG sets and
power plants. Since it is rural area labour potential is available and also company is enjoying
the subsides from State Government.

The Lanco Group is a diversified multifaced onglo merale, with business interests in
Pig Iron, Cement, Power Graded Castings, Spun pipes, Real Estate Development,
Information Technology a past from infrastructure us development promoted by
entrepreneurial skills and the agenda to put the group on the global corporate map during
the next 10 years.

LANCO KALAHASTI CASTINGS LIMITED (merged with Lanco Industries Limited)

27 | P a g e

Established in 1997 and strategically located in close proximity to the mini blast
furnace of the Pig Iron Plant, it has a clear economic mileage over other casting sites. The
molten from the blast furnace is directly used as a basic raw material to produce graded
castings, cast iron pipes and Ductile iron spun pipes with a capacity of 60,000 TPA, which
will be gradually expanded to meet through 10 MW captive power plants. To emerge to meet
the necessities and the self-sufficiency, it was decided to enhance the production capacity
from 60,000 TPA to 90,000 TPA from 2003.

INTRODUCTION OF HR POLICY:
The Lanco Group is a diversified multi faced conglomerate with the business
interests in Pig Iron, Cement, Spun pipes, Coke Oven and 12MW Power plant. Plant located
Rachagunneri Village near Srikalahasthi.

PIG IRON DIVISION:

Established in the year of 1993. An ISO-9002 Company, with a state of the art,
integrated manufacturing facility for Pig Iron through Mini Blast Furnace route conforming to
the latest international technology with initial capacity of 1,00,000 TPA and subsequently
expanded and modernized and modernized to 1.75 LTPA. Its quality development products
of SG-Grade Pig Iron are being supplied to foundries in the Southern India. The
uninterrupted power requirement for the energy intensive plant is being met through a 2.5
MW Co-Generation Power Plant.

CEMENT DIVISION

Established in the year of 1996 the basic raw material is slag, produced in the
pig Iron manufacturing process to install the Cement Plant with a capacity of 90,000 TPA.

28 | P a g e

SPUN PIPE DIVISION

Established in 1997 and strategically located in close proximity to the Mini Blast
Furnace of the Pig Iron Plant, It has a clear economic mileage over other casting sites.
The molten metal from the Blast Furnace is directly used as basic raw material to
produce Graded Castings, Cast Iron Pipes and Ductile Iron Pipes with a capacity of
90,000 TPA.

COKE OVEN PLANT

Established in 2005 the basic raw materials for the mini blast furnace, the Coke
Oven Plant capacity of 9000 TPM.

POWER PLANT

It has proposed to set up a Power Plant of 12 MW.. Power Plant will be set up in the
existing land of Coke Oven Plant. Waste heat of flue gas from coke oven will be utilized
in waste heat recovery Boiler to produce steam. Steam produced in the above process
will be utilized to run on T.G Set for generating power.
Power generated from the Power Plant will be used for in house consumption and
balance power will be fed into the APSEDB grid.

IDENTITY CARD

29 | P a g e

All the employees are issued with an identity card, which has a photograph,
name & employee no. duly signed both by the employee and the Competent Authority.
Every employee has to display the identity card while he/she is on duty. Their
admission into the premises can be denied by the security, if they are found not wearing
the identity card.

UNIFORM, SHOES & PROTECTIVE EQUIPMENT:

All the employees who are on the regular rolls of the Company are issued two
pairs of uniform and one pair of shoes. All the employees are expected to come to their
duties in uniform.
The employees working in the plant operations are provided with helmets and
safety shoes. Depending on the nature of work, it is obligatory on the part of employee to
draw the required safety appliances like gloves, goggles, respirators, and earplugs etc.
from the stores through safety department and use them. Failure to do so shall attract
appropriate actio

WORKING DAYS & TIMINGS:

Since ours is a continuous process industry the factory shall run continuously for 24
hrs on all the days through out the years. Therefore, three shifts are run with duration of 8
hrs and the weekly holiday shall be on staggered manner. Sunday is a normal weekly
holiday for non-technical personnel (Administrative staff). The other employees are
specifically informed about their weekly off days.

TIMINGS

30 | P a g e

The shifts and General shift timings are as stated below:

S.NO

SHIFT

TIMINGS

01

6.00 TO 14.00

02

14.00 TO 22.00

03

22.00 TO 06.00

04

GENERAL - 1

8.00 TO 16.30

05

GENERAL - 2

9.00 TO 17.30

ATTENDANCE & PUNCTUALITY:

All the employees are expected to come for duty regularly and well in time to
maintain the punctuality.The employee at the time of entry and exit has to punch the card or
sign in the register that is kept at the Time Office.

ABSENTEEISM

All the employees are expected to be punctual and regular for the duty. The leave
rules give enough provision to avail them on a planned manner and also for exigencies. In
case if the employee does not report for work and absents him/her without permission of
intimation, then the management shall initiate appropriate disciplinary action against the
employee. This will ultimately, affect his performance and in the Evaluation systems.

3.3 PRODUCT PROFILE:

31 | P a g e

Lanco industries are manufacturing the following products in its group of companies.

SPUN PIPES

PIG IRON

CEMENT

POWER

COKE OVEN

SPUN PIPES:-

Pre-analyzed liquid metal from Blast Furnace is taken in to Induction Furnace. The
metal is superheated to a temperature of about 1520 o C and adjusted for chemical
composition by addition of Steel Scrap and Ferro Silicon. The adjusted metal is taken into a
converter for treatment to convert into SG iron. The adjusted from converter is transferred to
Spinning Machines through ladles. The metal is poured to unlined water-cooled metallic
moulds through a runner. The mould is kept at a slightly inclined position and rotated at high
speed. The uniform flow of metal and uniform travel of the mould is ensured through flow
control valves to achieve the uniformity in the thickness. Due to the centrifugal force the
metal is held against the mould wall and the solidification of metal takes place due to watercooling of mould. The pipe cast through above process known as DELVAD Process is heattreated to achieve the requisite physical properties and microstructure. After heat treatment
the pipes are coated externally with Zinc and then the pipes are finished before testing them
with hydrostatic pressure. The tested pipes are lined internally with cement and then cured in
the stream chamber. The lined pipes are ground and washed with water before sending
them for bitumen painting. The pipes are preheated before bitumen coating on external
surface. The coated pipes are sent to dispatch yard after marking
PIG IRON:-

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Blossoming of a fiery bud! exclaimed Dr. Shankar Dayal Sharma, the then
President of India while inaugurating the Pig Iron Plant of LANCO Industries Limited in
September 1994. And the bud has indeed blossomed!

Commissioned in a record time of 11 months, LANCO Industries Limited, a 90,000

tones per annum Pig Iron Plant, surpassed its rated capacity just after two years of
commissioning. Later it transformed the slag-a waste by-product, into productive Slag
Cement with setting-up of Cement Plant. The Pig Iron Plant capacity was upgraded to
1,50,000 tones per annum in the year 2003.

What represented the finest facet of India 's youthful techno-entrepreneurial strength
has today evolved to become the future of growth of Indian business- turning competition
into partnership. These words of Dr. Shankar Dayal Sharma, sums up the saga of LANCO
Industries Limited which has turned 12 years.

SALIENT FEATURES:

Virgin liquid metal from Mini Blast Furnace is made available to Ductile Iron Pipe
Plant.

Energy conservation through direct usage of liquid metal from Mini Blast Furnace in
Ductile Iron Pipe Plant.

Blast furnace gas generated is used 100% in Blast pre-heating, power generation
and Ladle heating areas.

Process water is recycled after treatment.

Captive power generation with MBF gases

33 | P a g e

CEMENT:-

Lanco Cement is the result of a unique blend of slag and clinker with the following
destructive characteristics.

Progressively increasing later stage strength.

100% no leakage & no honey combing on application.

Low heat of hydration, very low pore volume in concrete, high impermeability,
resulting in structures of high strength & long life.

Crack free structure & walls, result of low thermal stresses and absence of differential
volume change.

Super resistance to sulphate in concrete, resultant low corrosion, less alkali

aggregate reaction, and final outcome of long lasting super finish surfaces.

East workability with high concentration of fines.

POWER:-

Lanco Industries Limited (LIL) has installed a 12MW captive power plant (CPP) whose input
would be hot waste gases from non-recovery type Coke Oven as source of energy to
generate electricity of 79.2 MU annually.

CPP auxiliaries like

Water Treatment Plant.

Cooling Tower & cooling water system.

DG Sets 2 x 600KVA.

Compressors- 2 Nos.

Hot Gas Dampers(4 nos) with cooling system

34 | P a g e

Coke OVEN:-

Lanco Industries Limited is engaged in manufacturing of the ductile iron pipes manufactured
through a spinning process from 1999, with a capacity of 1,00,000 tons/year. To meet the
pipe plant requirement of hot metal Lanco operates a mini blast furnace with a capacity of
1,65,000 tons/year

Previously, Lanco use to import coke from Japan and China to meet the requirement
of the mini blast furnace but then due to the steep rise in the coke prices in the international
market

it

was

very

difficult

to

maintain

the

cost

of

hat

metal

produced.

Thus it was decided to install a coke manufacturing facility to meet the in-house coke
requirements. The company was attracted by the low cost of the non-recovery type of coke
ovens with its easy compliance with the pollution control norms without any major
investments. Now the company operates a coke oven plant with a set of 68 ovens based on
the Dasgupta Technology. The plant was commissioned in May 2005 and is producing to the
rated capacity of 1,25,000 Tons/year

35 | P a g e

Current status
Algoma currently is the third largest steel producer in Canada (behind Dofasco and Stelco)
both of which proved stronger corporate entities than Algoma. It remains the largest employer
in Sault Ste. Marie and currently has 3500 employees at the main plant. Algoma now
produces steel strip (i.e. plate and sheet type) which forms its main money maker along with
its blanking operations and welded beams.
LANCO Steel is a worldwide producer of steel selling to countries such as India, Canada,
United States and Asia. It is a fully integrated steel producer with a raw steel production
capacity of approximately 2.8 million tons per year. Many of its products are sold in
consumer sectors, such as automotive, white goods, construction, engineering and
shipbuilding. [4] The plant's current production capacity is 4 million tonnes per annum
(MTPA). Some of the key equipment at the plant includes a low-cost, technologically
advanced Direct Strip Production Complex (DSPC), a slab caster, a 106-inch strip mill (one
of the widest in North America), a 166-inch plate mill, a cold mill and blanking facility that
helps produce steel customized for client requirements, and a welded beam division.
Revenues are primarily derived from the manufacture and sale of hot and cold rolled sheet
and plate. Algoma's products are used in the automotive, construction, energy, manufacturing,
pipe and tube, and steel distribution industries. [1] The Direct Stripe Production Complex is a
new addition to LANCO Steel. DSPC is the newest thin slab caster coupled with direct hot
rolling in North America. The Heat-Treated Plate facility provides heat treated products for
abrasion resistant, ballistic and other specialty plate applications. First stage configured
blanks and large profile welded shapes and profiles are also made. [4]
LANCO Steel Algoma confirmed June 15, 2009 they have successfully started up a new, 70
MW Cogeneration Facility. A final performance test on Saturday, June 13 confirmed the
facility meets all necLANCOy operating standards as required by the Ontario Power
Authority. The cogeneration facility converts by-product fuels from the coke making and iron
making processes into electricity and steam for the steelworks. [3]
It features two 375,000 lb/hr boilers and a 105MW turbine combined with other related
components such as a generator, a blast furnace gas holder, condensate and feed-water
systems, a water treatment plant, a cooling tower, a transformer, and a distributed control
system. LANCO has set a precedent as the first integrated steel manufacturer in Canada to
construct a cogeneration facility fuelled with by-product gas from the operation. [3]
LANCO Steel is the biggest employer in Sault Ste. Marie, Ontario, and Canada. They
currently employ around 3,500 workers and have a major effect in the economy.

36 | P a g e

LANCO SRIKALAHASTI:
The LANCO group plans to invest Rs.15,000 crores for its upcoming steel plant in
Srikalahasti, with works for the plant set to start in January, a senior official said.
The 6 million tonne integrated steel plant will be commissioned in 2011, B K Panda, project
director of LANCO Steel Srikalahasti Ltd (LANCO), told reporters.
The project would need some 2,000 acres of land. The company is negotiating with local
landowners for acquiring some 1,100 acres of land.
The Srikalahasti government has given it 103 acres of land and the company expects some
200 acres from the government, Panda said.
LANCO general manager Bikram Mohanty said local people have welcomed the plant. The
state government and the district administration are also supportive, he said.
Panda said the company plans to have socio-economic development programs in the region to
help the living standard of the people. LANCO also will follow the government guidelines in
the rehabilitation of the people.
The company would function in an eco-friendly fashion using even low grade iron ore for
making pellets, which would be fed in blast furnaces. Currently, steel makers in the country
dump low-grade iron ore, which can cause environmental pollution.

PROGRESS OF LANCO STEEL SRIKALAHASTI

LTD(LANCO)
A road has come up which is in its final stage it is expected to be completed within
3months. It will link the plant with the National Highway.
A new helipad has been built which allows the landing of the chopper within LANCO
premises.
A chimney has come up into existence and the 4mt pallete plant will be operational
soon.
The laying down of the pipeline is in the final stages. It will facilitate the the flow
of slurry from paradip to dabuna which is around 250 kms.
A conveyer belt has come into existence.
The work of filtration building is in the final stages.
The work of BALLI building is in the final stages.
The captive power plant will soon be operational it is on its finishing stages.
The CRS building has been completed and is operational now.
The MRS building work is on the final stages.
The land acquisition process is going on at a rapid speed. We will soon acquire most
of the land. LANCO is paying a handsome amount of rupees 20 lakh per acre of
land.

37 | P a g e

MATERIALS MANAGEMENT
Big text Materials management is the branch of logistics that deals with the tangible
components of a supply chain. Specifically, this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts.

Areas of Concentration
Goals
The goal of materials management is to consolidate and efficiently handle core services. It
creates truck deliveries and service vehicle routes that reduce conflicts for vehicles and
pedestrians. Delivery sites and loading docks are more effective and reduce redundancy.
Cost is reduced when it comes to solid and hazardous waste removal, storage, and
recycling. Utility infrastructure and service equipment relocation can improve aesthetics.

Quality Assurance
A large component of materials management is ensuring that parts and materials used in the
supply chain meet minimum requirements by performing quality assurance (QA). While most
of the writing and discussion about materials management is on acquisition and standards,
much of the day to day work conducted in materials management deals with QA issues.
Parts and material are tested, both before purchase orders are placed and during use, to
ensure there are no short or long term issues that would disrupt the supply chain. This
aspect of material management is most important in heavily automated industries, since
failure rates due to faulty parts can slow or even stop production lines, throwing off
timetables for production goals.

Standards
The other major component of materials management will be gradual movement toward
compliance. There are standards that are followed in supply chain management that are
important to a supply chain's function. For example, a supply chain that uses just-in-time or
lean replenishment requires clarity. in the shipping of parts and material from purchasing
agent to warehouse to place of destination. Systems reliant on vendor-managed inventories
may begin to acquire up-to-date computerized inventories and begin to explore robust
ordering systems for outlying vendors to place orders on.

38 | P a g e

Promoting Sustainability
Many business and institutional campuses have cluttered, noisy, and oftentimes inefficient
service environments. Delivery trucks compete with pedestrians, loading docks are in plain
sight, trash dumpsters sprout up, and lobbies, hallways, and stairwells are cluttered with
unplanned storage. With forethought and creativity, these systems can reduce energy use
and carbon emissions, minimize traffic congestion, streamline operational flows, and
enhance aesthetics.

Improving circulation infrastructure

Redundancy can be reduced and effectiveness is increased when service points are
clustered to reduce the amount of redundancy. An effective materials management program
can also rLANCOve island approaches to shipping, receiving, and vehicle movement.
Solutions can include creating a new central loading location, as well consolidating service
areas and docks from separate buildings into one. Developing better campus circulation
infrastructure also means re-evaluating truck delivery and service vehicle routes. Vehicle
type, size, and schedules are studied to make these more compatible with surrounding
neighbourhoods. This will reduce truck traffic, creating a safer environment for pedestrians
and a more attractive environment for other uses.

Benefits
An effective materials management plan builds from and enhances an institutional master
plan by filling in the gaps and producing an environmentally responsible and efficient
outcome. An institutional campus, office, or housing complex can expect a myriad of benefits
from an effective materials management plan. For starters, there are long-term cost savings,
as consolidating, reconfiguring, and better managing a campus core infrastructure reduces
annual operating costs. An institutional campus, office, or housing complex will also get the
highest and best use out of campus real estate.
An effective materials management plan also means a more holistic approach to managing
vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As a
result, this means a greener, more sustainable environment and a manifestation of the
many demands today for institutions to become more environmentally friendly. In fact, thanks
to such environmental advantages, creative materials management plans may qualify for
LEED Innovation in Design credits.
And finally, an effective materials management plan can improve aesthetics. Removing
unsafe and unsightly conditions, placing core services out of sight, and creating a more
pedestrian-friendly environment will improve the visual and physical sense of place for those
who live and work there.

39 | P a g e

Introduction - Why Stocks are Held

Virtually every enterprise finds it necLANCOy to hold stocks (or inventory) of various
items and materials. That is because it would be practically impossible to operate with only
one of each item to be sold or used in manufacture or used in office work. A reserve or a
fund or inventory of each item or material used or sold frequently is therefore
maintained, so that as items or materials are sold or used they can be replaced or
replenished from the stocks held in reserve.
Let us take a footwear shop as an example to make these matters quite clear to you:There will be a variety of different shoes, boots, etc, on display - both in the shops windows
and inside the shop itself. It would be very inconvenient and time-consuming for a shop
assistant to have to remove the footwear from the display each time a customer wished to
try on a pair. And, in any case, only one size and colour of each style or type of shoe, boot,
sandal, etc., is likely to be on display at any one time. Instead, when a customer expresses
interest in a particular style, a shop assistant will ask the size he or she usually wears and
the colour preferred, and will then try to find the right size and colour from the pairs of
footwear held in reserve. In many cases pairs of popular items in the most commonly asked
for sizes will be kept inside the shop itself, on shelves or in cabinets. But other pairs will be
kept in another room - or perhaps in more than one room - to which the shop assistant can
go to find the footwear concerned; that room is the store room or stock room. When a
pair of shoes or other footwear is sold from those inside the shop, it must be possible to
replace that pair quickly, whenever possible, by another pair held in the store or stock room.
No business could operate efficiently if every time it sold an item or used up an item in
manufacture, it had to order a replacement from the supplier or manufacturer! Of course,
from time to time, items can run out of stock but, as you will learn during this Program,
efficient stock control will reduce or eliminate such happenings, and ensure that
replacements are received in good time, and are available when required to replace those
items sold or used

Why Stores are needed

In some countries the word store is used to refer to a retail outlet - such as a general
store or a department store - from which goods are sold, mainly to individuals, who are
commonly called consumers. However, in this Program on Stores Management & Stock
(Inventory) Control, we define a Store (with a capital S) as an area set aside into which all
the items and materials required for production and/or for sale/distribution are received
where they are housed for safekeeping, and from which they will be issued as required in
only a tiny minority of cases are sales made directly from Stores, and even in such cases
those sales are merely a subsidiary activity, and are not the primary functions of the
Stores, as given in our definition. The various items and materials received into, housed in
and issued from Stores are commonly referred to collectively as being stock or
inventory, hence the use of the term stock control.
THE TERM STORES, STOREHOUSE, WAREHOUSE ETC REFER TO THE PHYSICAL
PLACE BE IT A BUILDING OR A ROOM ETC. WHERE MATERIALS OF ALL VARIETY
ARE KEPT.

THE FUNCTION OF STORES IS TO RECEIVE, STORE AND ISSUE MATERIALS.

STORES ARE NORMALLY DIVIDED INTO VARIOUS SECTIONS SUCH AS -

RECEIVING SECTION

40 | P a g e

TOOL STORES

GENERAL STORES

RAW MATERIALS STORES

FINISHED PARTS STORES ETC.

STORES PLAYS A VITAL ROLE IN THE OPERATIONS OF A COMPANY

STORES NETWORKS ARE INCREDIBLY

OPPORTUNITY OF IMPROVEMENT

COMPLEX

AND

THEREIN

LIES

THE

At this stage, the following serve as a few examples to introduce the need
for Stores to us:Retail shops such as the footwear shop (or store), need Stores to house reserves of
goods for sale to customers and from which to replace those sold.
Wholesale businesses (often called simply wholesalers) purchase goods in large
quantities from the producers or manufacturers of them, so they need Stores in
which to hold the goods until they are required for supply in smaller quantities to
retailers.
A manufacturing concern, for example a steel industry, must hold stocks of all the
items (materials and components) which are used in making the different types of
steel.
An office is likely to need stocks of printed and plain paper, envelopes, pins, clips
and other items.
Even an enterprise which provides a service, like a garage for example, must hold
stocks: of spare parts for vehicles, consumables like oil, and, of course, tools for
use by its mechanics. In many cases the Store might be quite small, perhaps no
more than a stock cupboard in a small service concern, such as an estate agency, or
a small office. Other enterprises, however, require huge Stores to hold the vast
stocks of items, of many different kinds and sizes, which they must have available
if they are to be able to run efficiently and successfully. In between the two
extremes, there is an enormous range of different enterprises with Stores of
different sizes. Whatever the situation, you will find that the Stores of most
enterprises fall within the definition we have given you. A Store might be a
department or section of an enterprise, and be its Stores Department; often
that name is shortened simply to Stores (with a final letter s). For example, a
person might work in the Stores.

Stocks
The range of items and materials - stocks - which might be held in Stores is huge. The
variety and quantity of items and materials held in the Store of a particular enterprise will
depend on its size and on its range of activities. Broadly speaking, the various activities of
different enterprises can be divided according to the three main groups of enterprises:-

41 | P a g e

What is involved in Storekeeping:The term storekeeping covers the actual handling of the items or materials received into,
held in and issued from the Store. The work involves:
receiving items and materials, including the inspection of them
storing the various stock items in the most appropriate fashion, binning and/or
racking them by the best methods, and placing them in such a way that any item or
material in the Store can be located quickly and easily when it is required;
ensuring the safety of all items and materials whilst in the Store - that is,
protecting them from pilfering, theft, damage and deterioration; Ensuring, when
necLANCOy, that items issued from the Store are so packed that they will not be
damaged or caused to deteriorate whilst in transit to their destinations.

What is Involved in Stock Control (also known as Inventory Control)

What we refer to as stock control comprises mainly the clerical and administrative functions
of stores work. It involves:
ensuring that the right types and qualities of items needed for production, sale and
distribution, are always available when required;
ensuring that stock is issued in the correct sequence, that is, first in first out, so
that older stock is not allowed to deteriorate by being kept too long in the Store,
for instance because it has been hidden from view by more recently received
stock;
maintaining records showing the movement of items into and out of the Store,
controlling and monitoring those movements and maintaining full records of the
items in the Store;
ensuring that the correct stock levels of the various items are set and are
maintained, that orders and reorders are made (or requested to be made) in good
time, and that what is ordered is received;
checking, counting or otherwise measuring stock to ensure that records are
accurate and that no losses are occurring due to pilfering, theft, damage or poor
storage;
pricing and valuing the items in the Store

The Importance of Efficient Stores Management

In an enterprise with a small quantity of stock, one person might be placed in charge of it, if
the owner/manager does not look after it himself. Where the volume of stock is too large to
be handled on a part-time basis, one or more storekeepers will be required. Enterprises
with large quantities of stock must employ trained stores personnel (storekeepers, clerks,
etc) under the control of a Stores Manager (who might go by the designation of Head or
Chief Storekeeper, Stock Controller, stores administrator).
It is impossible to state at what stage a Stores Manager will be appointed by a particular
enterprise, as circumstances and sizes vary so greatly. But whatever its size and the volume
of its stocks, the success of the enterprise can depend to a large extent on the efficient
management of its Store and stocks.

42 | P a g e

Let us now examine why that is so.

All the possessions of an enterprise - that is, what it owns - are called its assets.
Frequently the value of the stocks of goods and/or materials held in its Store is as
great as - if not greater than - the total value of all its other possessions - e.g. land
and/or buildings, plant, machinery, motor vehicles, equipment, etc., and, of
course, money and investments - added together!
The items and/or materials in the Store cost money; if, through bad Stores
Management, there are too many held in the Store or if the wrong items or
materials are being held, money will be tied up - money which might be required
to buy other, needed items and/or materials or to pay the many expenses involved
in running the enterprise.
Conversely, if poor stores management has led to shortages of needed items and
materials, there will be hold-ups and interruptions in production, or losses of
production and/or losses of sales to customers and, indeed, losses of the customers
themselves, and losses of profits which can in turn lead to job losses and - in
extreme cases - to the collapse of the enterprise.
If items in the Store are lost, stolen or damaged in any way, the enterprise loses
money.
And it costs money to run the Store - on building maintenance and/or rent, on
salaries of stores personnel, on containers and equipment, on heating or cooling,
on lighting and power, etc. and the enterprise must receive a return from its
expenditure, in terms of efficiency, particularly as its Stores is non-productive

FUNCTIONS AND DUTIES OF STORES DEPARTMENT:You will have noted that earlier I stated that the Stores Department has a non-productive
Function. I can now explain what I meant.
Departments of an enterprise such as its Sales Department and/or its Production
department are directly involved in the primary or revenue-earning functions of that
enterprise. Their functions - or activities - are designed to bring money into the enterprise
as the result of producing and/or selling goods or services.
For example, if an enterprise has a Production Department, its function is to make or
manufacture goods or other items which will be sold to bring in money. The whole
function of the Sales department of an enterprise is to sell goods or other items (whether
produced internally or purchased for resale from other enterprises) and/or services, in return
for which customers will pay money to the enterprise.
In contrast, the Stores Department of an enterprise does NOT make or - in general - sell
goods or services to customers.
Its function is to:
Provide a SERVICE to the rest of the enterprise of which it is part.
The SERVICE provided by the Stores Department is ESSENTIAL to all other parts of the
enterprise, because it is basically intended to ensure that all other sections or departments
of the enterprise are furnished, when required, with the correct items, in the correct
quantities and of the correct qualities. As I explained earlier, the standard of the service
provided by the Stores Department will affect the efficiency and profitability of the entire
43 | P a g e

enterprise of which it is a part. Obviously, the Stores Department cannot be expected to

provide the best service unless it receives adequate information from other departments.
Furthermore, it must work closely in co-operation and co-ordination with those other
departments. The departments with which the Stores will have contact will, of course,
depend on the activities in which an enterprise is engaged. However, we now look briefly at
some of the major departments with which close contact by Stores Departments might be
necLANCOy.
The complete control on the materials is vested in the Stores Department. The field of
materials Management covers the following functions.
THE FOLLOWING ARE THE PRINCIPAL FUNCTIONS OF A STORE;

TO RECEIVE RAW MATERIALS, COMPONENTS, TOOLS, SPARES, SUPPLIES, EQUIPMENTS

AND OTHER ITEMS AND ACCOUNT FOR THEM.

TO PROVIDE ADEQUATE, PROPER AND EFFICIENT STORAGE AND PRESERVATION FOR

ALL THE ITEMS.

PHYSICAL CHECKING OF ALL INCOMING MATERIALS AS PER THE DELIVERY

CHALLAN / INVOICE AND PROPER MAINTENANCE OF DAILY GOODS RECEIPT REGISTER
OR RECORDS.

ARRANGE FOR INSPECTION OF INCOMING MATERIALS.

ENSURE THAT GOODS INWARD NOTES (GIN) ARE RAISED AND DISTRIBUTED WITHOUT
DELAY

ISSUE MATERIALS TO THE CONSUMING DEPARTMENTS AGAINST AUTHORISED

REQUISITIONS AND ACCOUNT FOR THE SAME.

MAINTAIN ACCURATE AND UP TO DATE RECORDS OF MATERIAL RECEIVED, ISSUED,

REJECTED, DISPOSED, AND QUANTITY ON HAND OF ALL THE ITEMS.

THE FOLLOWING ARE THE PRINCIPAL FUNCTIONS OF A STORE;

ENSURE THAT ALL DOCUMENTS RELATING TO RECEIPTS AND ISSUE ARE SENT TO
STOCK CONTROL, ACCOUNTS AND OTHER CONCERNED DEPARTMENTS.

UNDERTAKE STOCK VERIFICATION AS PER APPROVED PROCEDURE.

TO HIGHLIGHT STOCK ACCUMULATION, DISCREPANCIES AND ABNORMAL

CONSUMPTION AND INITIATE APPROPRIATE CONTROL ACTION, WHEREVER
NECLANCOY.

TO MINIMISE OBSOLESCENCE, SURPLUS AND SCRAP THROUGH PROPER CODIFICATION,

STANDARDIZATION, PRESERVATION AND HANDLING.

TO ENSURE GOOD HOUSEKEEPING SO AS TO MINIMISE THE NEED FOR MATERIAL

HANDLING.

TO MAKE AVAILABLE A BALANCED FLOW OF MATERIALS SO AS TO ECONOMISE ON

CAPITAL TIED UP IN INVENTORY.

44 | P a g e

TO ACCEPT AND STORE SCRAP AND OTHER DISCARDED MATERIALS.

DEPENDING UPON THE NATURE OF BUSINESS (I.E. MANUFACTURING, TRADING

SERVICES, ETC,) ONE OR MORE OF THESE FUNCTIONS MAY GAIN PRIMACY OVER THE
REST.

Basically the functions of store are as follows:i)

ii)
iii)
iv)
v)
vi)
vii)
viii)

Materials planning and programming of procurement and supplies.

Purchasing
Inventory control
Store keeping and warehousing
Materials handling and transportation
Codification and standardization
Value Analysis
Identification, Disposal of supplies, obsolete and scrap materials, etc.

The Production Department:

As the Stores Department must ensure that all items, materials and tools, as well as spare
parts for machinery, are always available for continuous, uninterrupted production, it requires
adequate warning about expected future needs, in terms of types, quantities, qualities (and
possibly even colours). Stores might also have responsibility for quality control and for
inspection (although these might be the responsibility of a separate department which,
again, must work closely with the Stores).
The relationship between the Stores and Production Departments

STORES

RAW MATERIALS
COMPONENTS,

Dept

PRODUCTION

DEPT

TOOLS ETC .

SCRAP AND
BY PRODUCTS
FINISHED PRODUCTS
REJECT AND DAMAGED
PRODUCTS

QUALITY
CONTROL
INSPECTION

STANDARD OPERATING PROCEDURE

45 | P a g e

An SOP is a written document or instruction detailing all steps and activities of a process or
procedure. These should be carried out without any deviation or modification to guarantee
the expected outcome. Any modification or deviation from a given SOP should be thoroughly
investigated and outcomes of the investigation documented according to the internal
deviation procedure.
All quality impacting processes and procedures should be laid out in Standard Operating
Procedures (SOPs). These SOPs should form the basis for the routine training program of
each employee. SOPs should be regularly updated to assure compliance to the regulatory
requirements and the working practice. A minimum review schedule of 3 years is
recommended Changes of SOPs are in general triggered by process or procedural
changes / adjustments. The internal site change-control procedure should manage these
changes.
Part of the activity list of such changes should be to update the related SOP. SOPs should
be in place for all quality systems plus the specific operational activities on site. The
structure of an SOP System and the total amount of individual SOPs should be carefully
taken into consideration too many SOPs could lead to a collapse of the SOP System.
System SOPs should not be mixed up to keep systems and interaction between quality
systems easy.
ISO 22000 essentially requires the documentation of all procedures used in any
manufacturing process that could affect the quality of the product.

46 | P a g e

STANDARD OPERATING PROCEDURE OF

LANCO Projects India limited (Paradeep)
Rejection
REJECTIO
N

Document
checking

Receiving
of materials

WAREHOUSE

Material
weighment

Final
weighment

GRN(USING)

IS
THE
QUALI
TY
MATC
HINGG

SAP

FREE
VENDOR

CHRG
NO
DEPARTME
NT

IS MIN
AVAILA
BLE

ISSUE
ISSUE
D
D

YES
PHYSIC
AL
VERIFICATI
VERIFICATI
ON
ON
WEEKLY

QUATERL
Y

AGEING
SLOW
MOVING
ANALYSIS

SALES REPORT

SELF LIFE
ITEMS

RECONCILATION WITH
VENDORS

RECONCILATION
STATEMENT

RECONCILATION WITH DEPT

47 | P a g e

Layout of LANCO
SOP,LAYOUT.docx

SAFETY MEASURES FOLLOWED IN LANCO

Safety is the state of being "safe" (from French sauf), the condition of being
protected against physical, social, spiritual, financial, political, emotional,
occupational, psychological, educational or other types or consequences of failure,
damage, error, accidents, harm or any other event which could be considered nondesirable. This can take the form of being protected from the event or from exposure
to something that causes health or economical losses. It can include protection of
people or of possessions.

Safety measures
Safety measures are activities and precautions taken to improve safety, i.e. reduce risk
related to human health. Common safety measures include:

Root cause analysis to identify causes of a system failure and correct deficiencies.

Visual examination for dangerous situations such as emergency exits blocked

because they are being used as storage areas.

Visual examination for flaws such as cracks, peeling, loose connections.

Chemical analysis

X-ray analysis to see inside a sealed object such as a weld, a cement wall or an
airplane outer skin.
48 | P a g e

Destructive testing of samples

Stress testing subjects a person or product to stresses in excess of those the

person or product is designed to handle, to determining the "breaking point".

Safety margins/Safety factors. For instance, a product rated to never be required to

handle more than 200 pounds might be designed to fail under at least 400 pounds, a
safety factor of two. Higher numbers are used in more sensitive applications such as
medical or transit safety.

Implementation of standard protocols and procedures so that activities are

conducted in a known way.

Training of employees, vendors, product users

Instruction manuals explaining how to use a product or perform an activity

Instructional videos demonstrating proper use of products

Examination of activities by specialists to minimize physical stress or increase

productivity

Government regulation so suppliers know what standards their product is expected

to meet.

Industry regulation so suppliers know what level of quality is expected. Industry

regulation is often imposed to avoid potential government regulation.

Self-imposed regulation of various types.

Statements of Ethics by industry organizations or an individual company so its

employees know what is expected of them.

Drug testing of employees, etc.

Physical examinations to determine whether a person has a physical condition that

would create a problem.

Periodic evaluations of employees, departments, etc.

Geological surveys to determine whether land or water sources are polluted, how
firm the ground is at a potential building site, etc

SAFETY COMPLIANCE
49 | P a g e

1. THE SERVICE PROVIDER AND HIS MEN SHOULD COMPLY WITH PPE REQUIREMENT
DECIDED BY THE ORGANIZATION SAFETY DEPARTMENT LIKE CUT RESISTANT HAND
GLOVES, SAFETY HELMETS AND SAFETY SHOES..
2. ALL THE PPES MUST BE WORN WHILE WORKING ON JOB.
3. THE SERVICE PROVIDER SHOULD BE COMPETENT ENOUGH TO SUPERVISE HISMEN.

JOB DESCRIPTION
1. THE SUPERVISOR HAS TO ENSURE PROPER PLANNING OF COMPETENT MANPOWER AS
DESIRED BY THE ORGANIZATION.
2. PLANNING OF COIL ON SADDLE AS PER PLAN RECEIVED FROM THE ORGANIZATION.
3. ISSUING AND SHIFTING OF WOODEN PALLETS FROM THE ORGANIZATION AS PER SIZE.
4. SEGMENT REMOVAL AND FIXING AS PER COIL I/D.
5. SHEAR GAP SETTING AS PER THICKNESS.
6. UNLOADING OF PACKETS FROM THE STACKER THROUGH EOT CRANE.
7. WEIGHMENT OF PACKET AND REPORTING TO THE SHIFT ENGINEER.
8. PACKET SHIFTING AND PROPER STACKING.

9. READINESS AND PLACING OF LOGO ON THE SHEET.

10. BARREL CORRUGATION M/C SETTING AND CORRUGATION COMPLIANCE AS PER IS 277
AND JIS STANDARD.
11. MAINTENANCE KNOWLEDGE OF ALL M/Cs IS MUST.

LANCO SCOPE OF WORK

1. CRANE, HYDRA & TAILOR FOR SHIFTING, DIS-MANTLING & ERECTION WILL BE PROVIDED
BY LANCO.
2. ALL RAW MATERIALS, POWER & CONSTRUCTION WATER WILL BE PROVIDED BY LANCO.

GENERAL SAFETY GUIDELINES

1. Service Provider must not operate any equipment in manual mode without permission
from authorized engineer.
2. Service Provider must not go to any equipment while moving.
3. No person is allowed to stand on coil car / slitting line.
4. No By-passing of interlocks and no pre assumptions for any equipment operation.
50 | P a g e

5. Use Proper PPE & Safety platform while packing.

6. Ensure that, fingers should be away from strapping procedure and while working with
tensioner.
7. Service Provider trained operator should handle consumables for packing of Coils.
8. Operators should be away from under crane, while crane carrying the Coil/ Plates to
packing saddle/ packing area.
9. Service Provider must remove the waste consumables immediately, disposal to specified
scrap bin and keep the area NEAT & CLEAN.
10. Service Provider must keep only good quality wooden logs for packing.
11. Service Provider must always wear sufficient PPEs inside the plants.
12. Service Provider must keep safe distance to the coils & packs while packing.
13. Service Provider must not modify any tools or equipments.
14. Service Provider must not touch any movable parts.
15. Service Provider must riggers must be alert while pack stacking procedure in yard.
16. Extra care to taken while packing with fork lifter. The signal should be given to fork lifter
driver by standing at least one meter away from pack.
17. Service Provider must keep the packs stack height maximum 6 feet and must not stack
the packs more than 6 feet height.
18. Rigger must ensure as coil properly gripped in sling-gofer/c-hook than after give the
signal to the crane operator.
19. Service Provider must not put wooden blocks for packing while the crane is moving with
load.
20. Service Provider must maintain good housekeeping standards and keep Yellow
pathway should be neat & clean.
21. Housekeeping is mandatory at each packing area. All loose wooden logs, straps etc to
be removed from site in frequent intervals.
22. Ensure sling offer should be locked with bolt in main hoist of crane.
23. Service Provider must not pack the packs very near to the rollers on the floor area in
flying shear line. There may be a chance of slipping & falling down.
24. Service Provider must ensure all hooks are properly hooked with chains while lifting with
spreader beams. The lifting signal to crane operator to be given after counter checking the
hooks position. There may be chance of hooks slipped off from chain.
25. Service Provider must not work near the stacker area in flying shear line.
51 | P a g e

SPECIAL "OHSAS" AND "ISO" CONDITIONS:

All safety rules, codes applied by respective government agencies both in India
and foreign countries regarding safety and environmental shall be observed and
complied to by the Bidder / service Provider and his workmen without exception.
The following Health and Safety points for OHSAS 18001 FOR OCCUPATIONAL
HEALTH & SAFETY MANAGEMENT SYSTEM are required to be complied by the
bidder /service Provider:
i. To ensure the health, safety and well being of all workmen and compliance to applicable
legislative requirements.
ii. To include all resource requirements for accident prevention during preparation of
estimates.
iii. To ensure proper briefing to workmen.
iv. Not to do wilfully any act which may cause injury to himself or to others.
v. Not to interfere unless duly authorized, remove or interfere with any moving/ stationary
machine/ equipment or facility.
vi. To use only the authorized means of access provided in the site.
vii. The bidder / service Provider shall have full responsibility and accountability of safe
execution of job at work place / site and safety of the personnel conducted inside the
premises of LANCO, Hazira.
viii. To maintain up-to-date list of employed workman at the work site and maintain identity
cards.
ix. To undertake immediate action to correct all unsafe conditions/ practices as identified/
reported.
x. To ensure that all sub - service providers are provided the necLANCOy documentation, ISI
approved or equivalent standards PPE and informed of their obligations.
xi. To issue standing instructions for prohibition of drugs and alcohol/ fighting/
gambling/horse play or keeping weapons at various worksite (any violation will result in
disciplinary action).
xii. Not to employ workmen with epilepsy/ deafness/ color blindness/ night blindness in any
site activities. All personnel deployed at their site shall have medical fitness certificate issued
by registered medical practitioner.
xiii. Ensure that employees are provided with appropriate ISI approved or equivalent
standards personal protective equipment PPEs and these should be at no cost to the
employees. These PPEs should be used in accordance with job requirements and replaced
as necLANCOy.

52 | P a g e

TRAINING & PPE

To provide adequate information, training to workmen; safety equipment of Indian standard
approved (IS) or any other equivalent specifications and ensure their proper

ENVIVORNMENT, SAFETY, HEALTH RULES, REGULATIONS AND MEASURES

TAKEN: Service Provider shall conduct their activities such that the personnel,
equipments, working methods, conditions are safe and without risk to health,
injury, accidents etc for their own personnel/equipments of our or other business
associates at the site.
Service Provider shall ensure that all the employees deputed by Service Provider
at our site are medically fit to carry out the activities in order to ensure that the
jobs entrusted are completed safely in time and without any hindrances. For this,
it is nec LANCOy for Service Provider to submit medical fitness certificate for all
their employees deputed at our site to our fire and safety department. In case at
any time, the persons deputed are found medically unfit, they shall be denied
entry in our premises and not allowed to carry out their jobs.
Service Provider shall ensure safety of their personnel & follow all safety
measures prescribed. Service Provider shall provide for all safety requirements as
per the demands of the services rendered at their own cost.
Service Provider shall ensure that all the tools and tackles deployed by Service
Provider are certified by competent authority for use in factory. Such certificate
should be duly valid at all points of time.
For the works to be carried out, Service Provider shall be deploying qualified
Supervisors who shall be qualified and who shall have knowledge and shall coordinate and supervise all the works including but not limited to the following
activities:-

i. Lifting and shifting of big vessel/pipes/gear boxes/big armature/motors etc. where chain
pulley blocks, cranes, winch machines, loaders etc are used.
ii. Activities/works being carried out at critical heights like crane girder levels, false ceiling
& roof jobs.
iii. Activities/works being carried out at environment having health and/or fire hazards.
iv. Activities/works being carried out in confined space/vessel entry/locations.
v. Activities being carried out on gas line/oil cellars/hydraulic stations/cable tunnels/cable
galleries/conveyors.
53 | P a g e

vi. Works being carried out near working/running machines.

vii. Excavation works where U.G.C. system (pipes + cables) exist.

If their personnel are deployed in dusty/noisy/oily areas, Service Provider must
ensure and practice the following:i. Observe the condition of hoses/o-rings/seals. If it is not in a good condition, then inform the
immediate supervisor/concerned officials to prevent the leakage.
ii. Immediately arrest the leakages and recover/collect the maximum amount of spilled oil in
the drum during the leakages.
iii. Put the filled-in drums at designated storage area.
iv. Wear ear plugs/muffs while working in the high dust areas.
v. Ensure proper handling of materials like scrap during bucket preparation.
vi. Ensure proper handling of materials like lime, dolime etc. while feeding.
vii. Ensure materials like scrap, etc are charged into the bucket from lesser height.
viii. Keep the fixed and movable elbow 100% clean.
ix. Arrest any leakage immediately.
x. Ensure proper handling of raw materials to minimize dust emissions
xi. Load the materials like lime-stone etc. from lesser height.
xii. Ensure periodical cleaning of joints and gaskets.
xiii. Ensure proper screening of oxide before charging to hopper.
All vehicles entering LANCO complex must have current and valid P.U.C.
certificate without which vehicle shall not be permitted for entry.
For jobs carried out in the plant, Service Provider shall obtain proper work permit
as per requirements.
For all the jobs done, Service Provider shall be compulsorily deploying a qualified
competent safety supervisor.
All scaffolding should be as per satisfaction of department engineer in-charge
should be done.
All their employees, worker, staff will have to undergo a safety and environment
training.
Service Provider/their supervisor should positively attend the safety and
environment meeting/other meetings conducted periodically.
Service Provider should comply with all safety and environment
requirements/rules and regulations as per guide lines of fire & safety; environment
department.
Service Provider shall maintain and ensure continuous availability of First Aid
facilities for all their personnel.

54 | P a g e

 Service Provider/Their personnel shall be restricted to the areas required for the
performance of their jobs. Wandering of their personnel/representatives through
plant areas other than the immediate job area is not permitted except without
prior written permission from concerned Head of Department.
Service Provider shall provide following personal safety gears and safety
equipment with specifications mentioned or as per latest rules and regulations.
Also Service Provider shall take adequate steps to ensure proper use by those
concerned: Safety goggles - toughened polycarbonate scratch resistant lenses with side
shield, Optically correct zero power, impact resistant and approved by BIS
specification no. IS: 7524 part -1 and further applicable amendments
Hand gloves
Safety helmet of yellow colour - moulded out of high impact, heat and chemical
resistant HDPE with brim for additional side protection, with 6 point ergonomic
adjustable head band and chin strap; and approved by BIS specification no. IS: 2925
-1984 and further applicable amendments
Safety harness with double lifeline - waist belt with shoulder strap, 6 mm thick
coated friction buckle and joint less d-ring, 44 mm wide nylon webbing, padded
back, nylon stitched along with copper rivets for additional safety, "quick fit" spring
loaded hook; and approved by BIS specification no. IS: 3521
Safety shoes - high ankle shoes, made from fine quality plain black leather,
padded Collar, D'rings, full below attached tongue, with steel toe cap as per is 5852
with direct Injection P.V.C. nit rile heel sole
Orange Fluorescent jackets for personnel deployed for up-keeping, cleaning,
Housekeeping jobs
Dungarees/Aprons of specified colours and make
For the mobile/heavy mobile equipments deployed, Service Provider shall ensure

following i. Equipments should work for 20 hours in a day/as per requirements & availability for each
equipment must be there accordingly.
ii. Deduction on pro-rata basis shall be made for breakdown hours or for non-availability of
equipment.
iii. Copy of a current and valid P.U.C. certificate for the equipment should be provided by
Service Provider and operators should have valid driving license.
iv. Service Provider shall keep and have all valid documents as per Motor Vehicle Act as
applicable in the state/region.
v. The above mentioned documents/certificates must be available at all times.
vi. Head light, tail light, reverse horn and rear view mirror of the equipment should be in
working condition for safe operation.
vii. If Service Provider are replacing any regular equipment deployed then Service Provider
shall inform the user department in writing.

55 | P a g e

 Service Provider shall keep proper supervision round the clock for optimum
utilisation.
Inside the plant premises, the speed of the vehicle should not exceed 20 KM per
hour/the limits defined at various places in the plant.
Service Provider shall comply with the following:Housekeeping/cleaning of the area including cleaning/removing the debris/scrap/waste and
shifting the same/surplus materials to the location specified/shown by the engineer-in charge
shall be carried out by Service Provider. Disposal of these should not be done to areas
which will create environment hazards and the disposal should not create damage to
environment land, water, air presently or in future. Service Provider shall dispose off waste
or scrap generated /dust only to designated areas and ensure that these are not disposed off
at any area.
Minimize pollution at source through environment-friendly processes, techniques
and processes
Reduce fugitive emission from loading/unloading and transportation of materials
(where applicable).
Develop/encourage adequate greenbelt in and around the plant.
Educate and develop an environmentally aware contractual workforce at all
levels.

LANCO celebrates this year as the accident free year as no life lost
during the commencement of the project and bags the safety
award.
SAP IN LANCO
Mill Products
The LANCO group is one of Indias largest business houses with an asset base of
US $ 3 billion and interests in core industries like Steel, Shipping, Oil and Gas,
Power, Telecom and Finance. LANCO entered the Iron and Steel business in 1989
by setting up a 1.76 million tonnes per annum facility to produce Hot Briquetted
Iron (HBI). This plant is the largest in the world. LANCO has also set up a 2 million
tonne flat products steel plant. Simultaneously, a backward integration project in
the shape of a 3.3 million tpa iron ore pelletisation plant has been set up to
manufacture and supply high quality iron ore pellets. LANCO has emerged as the
largest fully integrated manufacturer of high-quality flat products in the western
region of India . the hub of industrial activity in the country. LANCO needed a
fully integrated IT system to manage this huge set up.
The right data at the right place
According to Anil Kastuar, C.I.O. Steel Business, LANCO had a non-integrated
system focused solely on finance. .It was not linked to Production Planning,
Materials Management or Sales & Distribution Management. This is not an era
when decisions can be taken based on standalone solutions. They must be based

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on inputs from other business areas. We needed a solution and we looked at

SAP.s R/3, which fulfilled our objective.
Integration is of the essence in a
Complicated industry
To produce high-quality steel with the best ingredients, accuracy in the product
mix was crucial. To enable this there was a need for an integrated and live
information system. Dr P Bhattacharya, Chief Operations Officer, explains: .We
deal with complex products, sizes, 10 grades. The wrong slab in the wrong
furnace could create havoc. We needed a system to manage all this. We also had
to track everything from raw material to production and finally its shipment. The
transportation by road of say, 250 tonnes of steel a day, is dependent on a
powerful information system. LANCO selected SAP.s R/3 based on the strengths
of the system and on its success elsewhere. .Our corporate culture is driven by
respect for the best available in the market. SAP.s R/3 turned out to be the most
powerful, proven software that could run a complicated business such as ours..
.SAP is able to provide solutions for a variety of industries. It is not an
industry-specific solution. It is not a hardware-specific solution. It is an
enterprise-wide solution with industry specific components for
businesses like ours.

A live system is needed to facilitate each step in production planning

Dr Bhattacharya explains: .It is imperative that we know, right from the time we
take orders, what our likely delivery schedule will be. All information from raw
material procurement to inventory of finished products should be absolutely live.
We were looking for a solution that would give us all this.
.What I like about the SAP R/3 solution is that it binds every individual
and every department with one objective- Efficiency. There can be no
conflict of data. If there is a problem it surfaces the same day.
Implementation with a Big Bang
Anil Kastuar explains why LANCO chose to unfold the entire R/3 suite in one goes
calling it their Big Bang approach. .Our steel plant was close to being
commissioned and we needed to take care of each business process. Which is
why we decided to go for the Big Bang approach? Arun K Tiwary, GM Information
Technology, explains further: .Our modules included: Finance, AssetManagement, Product Planning, Plant Maintenance, Sales and Distribution,
Quality Management, Controlling, Commitment Accounting.. The first 12 months
saw the implementation of 3 modules: Finance, Material Management and
Controlling. All the production related modules went live in the 2nd phase, 3
months later.
.SAP Indias support is fantastic. Sometimes I wonder whether they.re a
part of LANCO Steel or SAP India..
LANCO had the help of their respected business managers in the implementation
stages. They also had the assistance of a team of IT professionals and
implementation consultants from Coopers & Lybrand. Avers D Ashok, Executive
Director, Coopers & Lybrand (India), .We believe this Big Bang implementation
was successful, primarily because of the client.s confidence in jointly taking a
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seeming risk. Our well qualified, dedicated and experienced consultants with
guidance from C&L.s global SAP Centre of Excellence . Hamburg, were able to
meet the stringent deadline because of team spirit and dedicated client users
and IT professionals..
.SAP were supportive and responsive. For example when we had a problem with
our Commitment Accounting, they flew down a consultant from Singapore to
help..
We can promise much shorter deliveries..
According to Dr Bhattacharya the cycle of customer enquiry to delivery has been
reduced. LANCO truck turnaround time is reducing. The ERP facility that SAP
offers as a part of its production planning module is used extensively. .We are
able to accurately plan our procurement of spares and goods, raw materials and
stocks. Accounting has become totally decentralised. Every transaction that
takes place in the plant updates the book of accounts automatically...For the first
time we are likely to close the first half of our balance sheets within 25 days of
our closing.

INVENTORIES OF LANCO
Since the LANCO SRIKALAHASTI STEEL LTD (LANCO) is in project state the
inventories are huge. The inventory basically consists of capital goods, steel
items (like bars, angle, beams, channel, and plate), cement and diesel. These
items are used for the purpose of the construction of the plant. The inventories
are of A category, the capital goods lying in the helipad, crs building, mrs
building, balli building, store yard, store shed worth more than 400crores.the
steel items like bar, angle channel, plate also worth in crores. Steel items are
stacked near crs building, Weigh Bridge, near chimney, etc. Stores department is
responsible for the stacking, handling and maintaining this high value items.

THE WORK THAT I UNDER TOOK DURING MY INTERNSHIP

PHYSICAL VERIFICATION OF CAPITAL GOODS

PHYSICAL VERIFICATION OF STEEL ITEMS
PHYSICAL VERIFICATION OF CEMENT
PHYSICAL VERIFICATION OF DIESEL
TAGGING OF STORE MATERIALS
STORE RACK BINNING
Physical verification of inventory

Inventory is physically verified by organizations to ascertain its existence and accuracy.

Depending on the size and nature of the organization it is verified either frequently or once
annually. Given below are steps which can be used to design the physical verification of
inventory process. These need to be fine tuned according to the nature of industry.
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Perpetual Inventory
Medium to large organizations having high quantity of stocks must design a perpetual
inventory count system. Physical verification of inventory on a perpetual basis helps to
monitor and control the stocks effectively. A perpetual inventory system can be either weekly
or monthly. An annual verification of stocks during year end audits can reveal differences
between physical and book quantities which would be difficult to identify and a rectification at
that stage may not be possible leading to an excessive write off.
weekly stock take procedure needs to be carried out on the day of the week when the
operations are expected to be at a minimum i.e. here is minimum movement of inventory.
Monthly physical verification needs to be carried out on the last day of the month after all the
invoices have been recorded and the inventory is dispatched
A monthly stock count procedure would involve a complete stock count i.e.
counting the entire inventory. A weekly perpetual inventory system on the
other hand would involve counting some of the quantity on a weekly basis
such that the entire stocks are counted at least twice a year or once every
quarter.
Inventory Schedule
The inventory schedule must be prepared prior to the stock count. It must specify the date
and time of the count and the staff who will be participating in the stock count. The schedule
must be communicated to the staff involved in the stock take.

Inventory Count Sheets

Area wise inventory count sheets must be available for the stock take. The inventory count
sheets need to be numbered and should have a complete list of all items in stock as per the
stock records on the computer system. The unit of measurement specified on the count
sheet should match the unit of measurement in which stock is required to be recorded in the
books. This will enable to compare the book stock with the physical stocks counted and
would reduce errors of conversion. For example if the book stock is in Cartons and Pieces,
the physical stock needs to be counted and recorded as Cartons and Pieces. If
the book stock is in kilograms, then the physical stock needs to be weighed and recorded in
kilograms.
A blind count is always beneficial i.e. the system stock should not be mentioned on the
inventory count sheet.
The staff involved in the stock count must initial / sign each and every page of the inventory
count sheet.
Cut Off Procedures
Adequate cut off procedures need to be followed. For instance, GRN (goods receipt note) for
all raw materials received need to be accounted prior to counting and included in the stock
count during physical stock take. Similarly finished goods for which invoices are entered
need to be segregated and transferred to dispatch section and should not be counted during
physical stock take. All pending sales invoices and GRNs need to be entered before
generating the stock count sheets from the system.
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Summarizing the above all goods just received for which GRN is not prepared and all sales
invoices entered which are not yet dispatched should be segregated and not counted during
the physical stock take.

Third Party Stocks

During stock counts, inventory belonging to third parties in our stores need to be identified.
Similarly on a monthly or quarterly basis it is important to obtain a confirmation from third
parties with whom our stocks are kept. For example obtaining a confirmation for stocks kept
on consignment basis.
Comparison with System Stock
The physical stock must be entered in the system to compare with the book stock. The
stocks must be entered in the same unit of measurement as present on the system. If
possible the staff entering the stock needs to be different from the staff involved in the stock
count to ensure segregation of duties. This would depend on the size of the organization and
the staff available. Entry should be done from the count sheets page by page to ensure all
items are entered. Any items which were not present in the count sheets and written
manually during physical stock should be entered with care and checked with similar items in
the system.
Subsequent data entry of sales invoices and GRN can be done only after comparing the
system stocks with the physical stock.
Variance Analysis
After entering the physical stocks, the variances, if any, must be analyzed. Huge variances
must be investigated by performing a recount of those items, verifying whether the entry of
physical stock was correctly done, whether any errors are present in data entry of invoices,
stock receipts and stock issue.
The variances need to be accounted for such that the system stock reflects the result of the
physical stock count.

CAPITAL GOODS LIST.xlsx

INVENTORY OF STEEL AS ON 31.03.14

MAIN SHEET OF STEEL.xlsx

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QUANTITY OF BEAM

QUANTITY OF CHANNEL

PHYSICAL VERIFICATION OF STEEL

STEEL INVENTORY.xlsx

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INVENTORY OF CEMENT AS ON 22.04.10

LOCATION

QUANTITY

GODOWN NO 4

1583 BAGS

BALLING
BUILDING
GOWODN NO 3

2703 BAGS

GOWODN NO 2

1060 BAGS

ISSUED

400 BAGS

TOTAL

1810 BAGS

6756 BAGS

GRAPHICAL REPRESENTATION OF INVENTORY IN TERMS

OF QUANTITY

GHRAFICAL REPRESENTATION OF INVENTORY IN TERMS

OF INR

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STACKING PROCEDURE OF CEMENT

IMPORTANCE OF PROPER STORAGE OF CEMENT
The binding property and strength of cement depend upon its capacity for chemical reaction,
which can take place in the presence of water. Cement if not stored properly can absorb
moisture from the atmospheric air or any other source and react with it chemically. The
strength of such type of cement when used would be adversely affected to the extent such
reaction would have taken place.
For prevention of cement against deterioration and retaining its freshness its storage should be
such that no dampness or moisture is allowed to reach cement either from the ground, walls or
from the environment. This becomes particularly important during the humid season and in
coastal regions when atmospheric air contains higher amount of moisture in it.
CEMENT GODOWN AT SITE
In most construction projects godowns are constructed at site for storage of a few days
requirement of cement. Even though such godowns are temporary in nature, they must
conform to the following requirement.

The walls must be plastered and made damp proof

The roof must be given an appropriate water proofing treatment
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The floor must be raised by atleast 80 cm above the ground level to prevent any
inflow of water. The flooring may consist of a 15 cm thick layer of dry bricks laid in
two courses over a layer of earth consolidated to a thickness of 15cm above the
ground level.

For further protection, cement bags should be stacked at least 10-20 cm clear above
the floor by providing wooden battens and planking arrangement. For saving timber
concrete may be used.

If any windows are provided , these should be few and small and normally kept
tightly closed to prevent entry of atmospheric moisture from outside.

A newly constructed godown should not be used for storage of cement unless its
interior is thoroughly dry.

PROPER METHOD FOR STACKING OF CEMENT BAGS

The arrangement should be such that it is convenient both for stacking and removal of cement
bags and it also leaves adequate space for movement and inspection of bags for counting
purposes
etc.,
No cement bags should be stacked in contact with an external wall. A clear space of at least
60 cm should be left between the exterior wall and the stacks
Cement bags should be placed closely together in the stack to reduce circulation of air as
much as possible. Cement bags should not be stacked more than ten bags high to avoid
lumping or warehouse pack under pressure. If the stack is more than seven bags high,
arrange the bags in header and stretcher fashion (i.e.) alternately length-wise and cross-wise,
to achieve interlocking between them and lessening the danger of toppling over, the
arrangement of two stacks with a height of seven bags and ten bags respectively.
For extra safety during rainy season, the stacks of cement bags should be enclosed
completely in polythene sheets (atleast 700 gauge thick) or similar material if it is anticipated
that cement would not be required for a prolonged period. This can be achieved by making a
large loose sack of the polythene sheet and arranging cement bags within it with flaps of the
sheet closing on the top of the pile. Care should be taken to ensure that the polythene sheet is
not damaged any time while in use.
TEMPORARY STORAGE AT SITE
Sometimes cement requirement of a day or two may have to be stored at site in the open. In
such cases cement bags should be laid on a dry platform made of wooden planks resting over
brick-masonry concrete, dry sand agregates raised about 15 cms above the ground level.
The stack must be kept fully covered with tarpaulin or polythene sheet and protected against
atmospheric moisture. The covering sheets must overlap each other properly. Temporary
storage on open storage should not be adopted in wet weather.

PROPER METHOD FOR REMOVAL OF CEMENT BAGS

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When removing bags from storage, cement bags should be removed from upto two or three
tiers on the backside rather than only from one tier on the front as shown in the figure. If the
rows are thus stepped back, there is less chance of over-turning of bags.

Stepping of Tiers while Removing Cement Bags

When removing bags for use, apply the First in, First out (FIFO) principle i.e. take out the
oldest cement first. Each consignment of cement should be stacked separately in the godown
so as to permit easy access for inspection and to facilitate removal in a proper sequence. It
would be desirable to pin a play card on each pile of cement indicating the date of its arrival
in the Godown.
STORAGE CAPACITY OF A CEMENT GODOWN
While working out the inside dimensions of a cement godown for storage of specified
quantity of cement filled bags, the following dimensions may be considered.
Length of Cement bags :70 cm (average)
Width: :35 cm (average)
Thickness :14 cm (average)
Clearance and passages :60 cm (average)
EFFECT OF STORAGE ON STRENGTH OF CEMENT
The cement when stored for longer period of time loses its strength characteristics. The
strength of cement when used after one year of its production loses its strength by about 4050% on application as compared to that of freshly produced cement. The loss of strength
characteristic of cement at different interval of times is as given below in the table.

Age of cement

% Reduction in its strength

3Months

20-30

6Months

30-40

12 Months

40-50

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TIPS FOR PROPER STORAGE OF CEMENT

Do not store in a building where walls, roof and floor are not completely weather
proof.
Do not store in a new warehouse until the interior is thoroughly dried out.

Do not make contact with a badly fitted windows and doors and see that they are kept
closed.

Do not stack against the wall. Always pile on the floor on wooden planks.

Do not forget to pile bags together.

Do not pile more than 15 bags high and arrange the bags in header and stretcher
fashion.

Do not take cement from one tier. Step back to three or four tiers.

Do not keep dead storage.

Do not keep bags on the grounds for temporary storage at work site. Pile on raised dry
platform and cover with tarpaulin or Polythene sheets.

INVENTORY OF DIESEL AS ON 22/04/10

OPENING BALANCE-7390 LTRS
LOCATION- BROWSER
ISSUED-2708 LTRS
TOTAL-4682 LTRS

STACKING PROCEDURE OF DIESEL

1. Diesel is kept in an container in LANCO steel.
2. Then it is transported through a truck.
3. It moves to different areas inside the project site and deliver fuel to the vehicles.
4. It takes the MIN while refuelling the vehicle is done.
5. By this process fuel is efficiently supplied to different department who need it.

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PROBLEMS:1. NO PERMANENT PLACE FOR STACKING OF GOODS

2. ITS NOT ESAY TO PICK UP ITEMS
3. MANY OF THE CAPITAL GOODS ARE EXPOSED TO SUNLIGHT AND MOISTURE,
RESULTING IN RUSTING.
4. REGULAR DISPLACEMENT OF ITEMS FROM ONE PLACE TO ANOTHER
CAUSING AMBIGUITY IN FINDING THE REQUIRED ITEM.
5. REGULAR CHANGE IN THE POSITION OF GOODS RESULTS IN THE LOSS OF
TIME, LOSS OF MONEY, LOSS OF MAN HOUR, AND OPORTUNITY COST IS
ALSO INVOLVED.
6. NO SHED FOR STACKING OF MATERIALS.
7. MANY OF THE WOODEN BOXES ARE BROKEN AND THE ELECTRICAL
MACHINERY INSIDE IS EXPOSED TO ATMOSPHERE.

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8. AS THE MACHINES ARE PACKED IN WOODEN BOX, WE NEVER KNOW THAT

WHETHER THEY ARE IN WORKING CONDITION OR NOT.WE ALSO HAVE TO
VERIFY THAT THE ITEMS INSIDE THE BOXES ARE NOT MISSING AND THEY
ARE NOT PURSUING ANY MERCHANDISE DAMAGE.
9. THE CONTRACTERS PICK UP ITEM WITHOUT MIN, WHICH CAUSES PROBLEM
WHILE RECONCILIATION.
10.
CEMENT BAGS SHOULD BE ISSUED WITHIN ITS LIFE PERIOD.

SUGGESTIONS:1. ACQUIRING OF SPACE FOR STACKING OF MATERIALS.

2. THERE SHOULD BE SPECIFIC PLACE FOR STACKING DIFFERENT ITEMS,
EXAMPLE-ONE AREA FOR STACKING OF CAPITAL GOODS, ANOTHER FOR
STEEL, ANOTHER FOR AGGREGATE.
3. REVIEW OF MATERIAL REQUIREMENT PLANNING.
4. WE SHOULD VERIFY THAT PRODUCTS ARE USED AT THE PROJECTED TIME
PERIOD.
5. FIXED POSITION LAYOUT SHOULD BE PREPARED.
6. A BIGGER WARE HOUSE NEEDED FOR STACKING.
7. ADDITIONAL EMPLOYEES SHOULD BE RECRUITED.

STORES CREDIT TO MANAGEMENT: Complete inventory visibility the most Himalayan task for the
management.
Judicious use of the inventory.
FIFO model used.
Its a cyclone prone area still then stores department is efficient
in material management.
Packing and stacking of material is done periodically.
Reallocation plan is always happening.
24 hr service to facilitate uninterrupted work to drive optimal
internal customer satisfaction.
Prevention of revenue leakage in term of astringent source of
revenue.
Satisfying external financial audit
Bring in transparent material management practice
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Helps in knowing obsolete items.

Helps in procurement, demand forecasting.
Curving practise of inferior suppliers
Claim management.
Reconciliation with vendors and suppliers.
Goods receipt note (GRN) preparation against the actual receipt.

REFERENCES:WEBSITE- WWW.LANCO.COM

BOOKS

OPERATIONS MANAGEMENT FOR COMPETITIVE STUDY.

Manual of instructions for purchase and maintenance of stores of NCSM.

.
Price lists and vocabulary of stationery stores and forms issued by the
Department of Stationery and Printing, Govt. of India.
Books on materials management, Inventory Control by famous authors
including publications of National Productivity Council, New Delhi.

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Introduction to Materials Management

by J. R. Tony Arnold, Lloyd M. Clive, Stephen N. Chapman, Ph.D.

Material Flow Management: Improving Cost Efficiency and Environmental

Performance
by Bernd Wagner (Editor), Stefan Enzler (Editor)

Applied Materials Management

by S. Chatterjee

Excellence In Warehouse Management: Minimizing Costs And Maximizing Value

by Stuart Emmett

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