Warehouse and Inventory Management in

Gold Plus Glass Industry Limited

Summer Internship Project Report

Submitted towards Partial

Fulfillment

Of

Post Graduate Diploma in Management

Academic Session

2018-20

(Approved by AICTE, Govt. of India)

Faculty Guide Submitted By

Dr. Ajay Kr. Patel Abhishek Tyagi

Associate Professor Batch- (2018-20)

 DECLARATION

I, undersigned, student of PGDM 4th Trimester at Jaipuria School of Business, hereby

solemnly declare that the project entitled ‗Warehouse and Inventory Management in Jaipuria
School of Business‘ is the outcome of my summer internship project that is prepared by me.
To the best of my knowledge, any part of this context has not been submitted earlier for any
degree, diploma or certification examination. The basic purpose of this project report was
experiencing and implementing the theoretical knowledge into practical Knowledge. This
Summer Internship Project Report is mandatory towards fulfillment of Post Graduate
Diploma in Management.

Abhishek Tyagi

(2018003)

PGDM 2018-20
 ACKNOWLEDGEMENT

This project is concluded with the support of direct and indirect cooperation of various
people, who have inspired me at every step of my work. It is a matter of pride for me to
acknowledge my profound gratitude to Gold Plus Glass Industry and Jaipuria School of
Business which facilitated me in gaining practical knowledge in the domain of Operations
and Supply Chain.

I would like to express my deep sense of gratitude to the respected guides, Mr. Umanath
Shettigar (Sr. Manager & HOD- Shipping) at Gold Plus Glass Industry and Dr. Ajay Kr.
Patel(Associate Professor) for his valuable help and guidance, I am thankful to him for the
encouragement, they have given me in completing the project.

I am also grateful to our Placement Head, Ms. Sweety Singh for giving me the opportunity to
work as an intern in Gold Plus Glass Industry.

I would also like to express my gratitude to our Faculty of Operations & Supply Chain, Mr.
Abhishek Jain who has helped me understand various aspects of Warehouse Management.

I am also thankful to the Director, Dean, faculty & staff members of Jaipuria school of
Business for their kind co-operation and help.

Lastly, I would like to express my deep gratitude towards my classmates, friends and parents
for all support and encouragement in successfully completing the tenure of the internship.
 PREFACE

Warehouse plays a key part in ensuring that a company meets its productivity goals.
Warehouse Management adds efficiency, consistency, and quality control to the process by
helping in moving goods through the warehouse at maximum speed, improving every stage
of the fulfillment process. Proper Warehouse and Inventory Management improves efficiency
of the human resources as they have exactly what they need at the right time.

The right Warehouse and Inventory Management can improve the sales and increase profits
not simply by helping sell more, but by selling faster and more accurately to happier
customers. Furthermore, the existing workforce is able to pick and receive more items in less
time, with fewer errors. This precision reduces customer inquiries and simplifies customer
support.

Proper Warehouse and Inventory Management helps in minimizing the loss incurred because
of the breakage of finished goods. Breakage is the most important especially for an industry
which manufactures fragile items like glass sheets and mirrors. Proper Inventory management
techniques help in storing right amount of inventory at specific places so that
mismanagement can be reduced and efficiency can be increased.

Also when inventory levels increases in the warehouse it becomes really difficult to locate the
required products which affects the efficiency and increases the loading time of the vehicles.
Proper Warehouse layout and Inventory Management helps an organization to locate every
single item precisely even when there is excess inventory stored in the warehouse.

Under this study an attempt has been made to study the existing Warehouse and Inventory
Management practices of the Gold Plus Glass Industry Limited and suggest changes so that
overall operational complexity can be reduced and the above mentioned environment can be
created which would help the organization to grow continuously.
 LIST OF GRAPHS

S.NO. TITLE PAGE NO.

1 ABC Analysis of Inventory

2 Truck Loading Time

3 Warehouse Handling Breakage

4 Transit Breakage

5 Transit Breakage Amount in May

 TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1 Title Page

2 Company Certificate

3 Declaration

4 Acknowledgement

5 Preface

6 List of Graph

7 Table of Content

8 Executive Summary

9 Summary of the Report

10 Introduction

11 Literature Review

12 Research Methodology

13 Data Analysis

14 Conclusion and Recommendations

15 Reference
 EXECUTIVE SUMMARY

Gold plus traces back its origins to 1985, when the first group entity started trading activity of
various types of glasses. The company specializes in manufacturing, processing & trading of
glass. Gold Plus Glass is the first 100% Indian owned company to manufacturing float glass
in country. Company has been awarded the ISO 901:2008 certification for its operations.
Existing Product Line of Gold Plus Includes Float Glass, Mirror, Frosted Glass, Clear
Reflective Glass, Architectural processed glass, Auto processed glass and lacquered glass.
Having such a wide range of inventory, Warehousing is the backbone of this industry. This
study depicts to identify the weak areas in the Warehouse Operations and suggest the
corrective measures so that high level of efficiency can be achieved.

This project is related to the descriptive research methodology. Secondary data source
method is used to collect the data from different departments and to analyze the problem
areas within the warehouse and further suggest the corrective measures.

Analyses are based on models such as ABC analysis and personal observations. Using an
ABC analysis lets you prioritize your inventory management by separating out products that
require a lot of attention from those that don‘t. Do this by going through your product list and
adding each product to one of three categories. Items in category A require regular attention
because their financial impact is significant but sales are unpredictable. Items in category C
require less oversight because they have a smaller financial impact and they're constantly
turning over. Items in category B fall somewhere in-between

The time period was not enough to conduct in depth study on the topic that was the biggest
limitation in the study.
 SUMMARY OF THE REPORT

The report subsumes various chapters that begin from a brief introduction of the report to the
key findings of the analysis of the project. This summary encompasses an overview for the
report which would enable the reader a better understanding and provide a deep yet brief
insight into the report. Following is the brief succinct of the chapters written.

Chapter-1 Introduction

This chapter serves as the introduction part of this research, which addresses the core value of
the research. Here, the overview of the company‘s profile, history of the company, products,
market area, customers and competitors will be discussed in a well manner. This chapter also
covers the meaning and advantages of the glass industry and sales concept in Gold Plus.
Along with a brief introduction the problem statement is included which in simpler words is
the research problem, which would give the reader a better perspective to the problems and
its reciprocating areas. Objective of the study is a necessity to the report as it gives a surface
area for the work done. Scope of the study is further included to enable the readers for any
future probability relating to the title of the study and it also gives an insight into how the
study can be used in the unforeseen.

Chapter-2 Literature Review

This chapter incorporates the various researches and studies on the topic related to
Warehouse or Inventory Management. This chapter would help the reader in developing a
deep study into the history of the topic which would further help him to gain a better
perspective to what the research holds. Researches and studies include topics such as
definition of Warehouse and Inventory Management.

Chapter-3 Research Methodology

This chapter illustrates the research methodology explored in the present study. This chapter
also presents the research problem, sampling, sample size, data collection, and statistical
tools. Furthermore, the other section mentions the sources of the research data. It also
describes the data collection methods of the research. Next, sampling, design and technique
that using in the research showed. This project is based on the descriptive research which
explains the different warehousing management techniques.

Chapter-4 Data Analysis

This chapter describes the analysis of the data collected from the warehouse and results of
analyses such as ABC analysis which will help the organization in efficient functioning and
manage its recourses properly.

Chapter-5 Conclusion

This last chapter depicts the key findings of the research. On the basis of the above chapter,
the results and conclusions have been derived. This chapter also includes the suggestions and
recommendations for the company and also discusses the limitations of the study.
 CHAPTER 1

INTRODUCTION
1. GOLD PLUS GLASS INDUSTRY LIMITED

Gold plus traces back its origins to 1985, when the first group entity started trading activity of
various types of glasses. The company specializes in manufacturing, processing & trading of
glass. Gold plus Glass is the first 100% Indian owned company to manufacturing float glass
in country. Company has been awarded the ISO 901:2008 certification for its operations.

1.1 PLANTS
 Gold Plus Glass has 1 float glass manufacturing unit (capacity 470 MT/Day in Line 1
and 700 MT/Day in Line 2) at Roorkee in Uttarakhand.
 Company also has 2 processing units - One in Sonipat (Haryana) and one in Kala
Amb (Himachal Pradesh)

1.2 PRODUCT LINE

Existing Product Line of Gold Plus Includes:

1.2.1 FLOAT GLASS

Float glass is a sheet of glass made by floating molten glass on a bed of molten metal,
typically tin, although lead and other various low-melting-point alloys were used in the past.
This method gives the sheet uniform thickness and very flat surfaces.
1.2.2 MIRROR

A mirror or looking-glass is something that reflects light. One common plane mirror is a
piece of special flat glass that a person can look into to see a reflection of themselves or what
is behind them.

1.2.3 FROSTED GLASS

Frosted glass is produced by the sandblasting or acid etching of clear sheet glass. This creates
a pitted surface on one side of the glass pane and has the effect of rendering the
glass translucent by scattering the light which passes through, thus blurring images while still
transmitting light.
1.2.4 CLEAR REFLECTIVE GLASS

Reflective glass is glass that has been treated with advanced coatings to reflect heat and
radiation from sunlight while allowing the natural light to come in. These glasses cut
substantial light and heat and are recommended to be used in double glazing (DG) format.

1.2.5 LAMINATED GLASS

Laminated glass consists of two or more glass permanently bonded together with one or
multiple layer of polyvinylbutyral (PVB). Used most commonly when safety is paramount.
When broken, the glass pieces tend to adhere to plastic (PVB) layer. These glasses are
commonly used in Automobiles.
1.2.6 LACQUERED GLASS

Lacquered glass is also known as back painted glass (BPG) is obtained by coating the back
surface of a float glass with lacquer. They offer an opaque and shiny surface.

1.3 MISSION AND VISION

 We shall achieve this through our continuous efforts to:
 Do our best to meet and exceed our customer‘s expectations.
 Do our best to meet and exceed our customer‘s expectations.
 Provide quality product to our customers on time, every time.
 Adopt latest technologies from around the world to upgrade our quality.
 Make gold plus a learning organization through continuous training.
 Create an environmentally safe and vibrant working culture.
 Increase our profitability through reduction in failure costs.

1.4 PRODUCTION FACILITIES

 381,000 Sq. Metres. Area for Float Glass Manufacturing Plant at Roorkee.
 27,000 Sq. metres. Area in Himachal Pradesh for processing of Toughened,
Laminated & Insulated Glass.
 10,500 Sq. metres. Area in Sonipat for Toughened, Laminated and Insulated Glass.
1.5 MANAGEMENT

Mr. Subhas Tyagi

(Chairman & Founder)

Mr. Suresh Tyagi

(Managing Director)

Mr. Jimmy Tyagi Mr. Vivek Dubey Mr. Maheshwari Ms. Neha Tyagi
(Director) (Director) Sahu (Director) (Director)

1.5.1 MR. SUBHAS TYAGI

 Established the foundation of Gold Plus in 1985.
 Promoter Director of the Company.
 Chief Mentor and is involved in strategic planning/growth.
 Recipient of various awards and recognition from Government for his social
contributions.
 Founder Member of Federation of Safety Glass in India (FOSG).
 Was the President of All India Glass Manufacturers Federation from April 2013 to
March 2014
1.5.2 MR. SURESH TYAGI
 Managing Director of the Company.
 Actively associated with the Company since incorporation.
 Vast knowledge & experience in execution of projects in various states from land
acquisition to commercial production of the plant.
1.5.3 MR. JIMMY TYAGI
 Completed MBA from SP Jain University (Dubai) – Finance & Marketing
 Joined the Company in 2006.
 Involved in setting-up and running of Float glass plant at Roorkee
1.5.4 MR VIVEK DUBEY
 Done graduation in Electronics from Delhi University and MBA from FMS -
Marketing.
 Associated with the group for the past 16 years.
 Marketing Director – Responsible for driving sales & marketing function across India
& overseas.
1.5.5 MR MAHESWAR SAHU
 Retired as an Additional Chief Secretary to the Government of Gujarat where he was
responsible for overall industrial development of state of Gujarat.
 Had held very significant positions in his career including the Joint Secretary to the
Government of India, Ministry of Communication & IT. He was the Chairman of
Gujarat State Finance Services Limited, Gujarat Industrial Development Corporation,
Gujarat Mineral Development Corporation Limited and Gujarat Industrial Corridor
Development Corporation Limited.
 Has more than 20 years of experience in industrial sector, 10 years in PSU
management and 10 years in service industry as Joint Secretary.
 Presently he is on the Board of GVFL Limited, GVFL Advisory Services Private
Limited and Heubach Colour Private Limited.
1.5.6 NEHA TYAGI
 BE in Electronics from Punjab Technical University and PGDM from IMT.
 Headed the IT Department of the Company.
 Successfully implemented ORACLE A in the Company.
 Inducted as Women Director in the Company.
1.6 KEY MILESTONES

• Started trading activity in various glasses.

1985

• Commission of first vertical automotive glass toughening plant under brand

name ―GOLD PLUS‖.
1996-

• Installation and commissioning of insulating glass line with technology

from Peter Lisex, Austria.
1997

• Commissioning of fourth vertical automotive glass toughening plant.

1999

• Commencement of manufacturing of architect curing and flat automotive

toughened glass with technological assistance from Finland, Austria and
2000 Italy.

• Installation and Commissioning of laminating line with technological

assistance from China for manufacturing of flat and bend laminating
2003 glasses.

• Started operations in Himachal Pradesh with technology assistance from

China and Italy
2005

• Installation and commissioning of fully Automatic insulating Line with

technology assistance from Korea for manufacturing of energy proof glass
2009 and started production of Float Glass.

• Commissioning of Mirror Coating Line and Float Glass Production

Capacity Increased to 470 MT/Day also started production of Reflective
2010 Glass and Frosted Glass.

• Launch of Lacquered glass & Colored Safety glass.

2012
1.7 SWOT ANALYSIS

SWOT analysis is a strategic planning technique used to help a person or organization

identify strengths, weaknesses, opportunities, and threats related to business competition or
project planning. It is intended to specify the objectives of the business venture or project and
identify the internal and external factors that are favorable and unfavorable to achieving those
objectives. SWOT analysis of Gold Plus Glass Industry is as follows:-

1.7.1 STRENGTHS
 High entry cost to set up a float glass industry prevents large number of players
entering.
 Demand in infrastructure projects and buildings.
 Demand in Automotive Segments (More people having cars).
 Recyclability of the waste up to 90%.
1.7.2 WEAKNESS
 Poor Supply Chain as chances of breakage is high.
 Shipping cost is very high.
 Large number of breakage claims gets received.
 Weak presence over web, print media and social media.
 Weak presence in neighbouring countries.
1.7.3 OPPORTUNITY
 Large untapped markets offer a huge potential.
 Automobile and real estate sector growing very fast would help glass sector to grow.
 Access to financial market to raise money through debt.
1.7.4 THREATS
 Slowdown in Infrastructure and Automotive sectors affects demand.
 Price war among players.
 Tough competition from MNC‘s.
 Cheap imports of glass from outside countries.
1.8 PORTER FIVE FORCES ON GOLD PLUS GLASS INDUSTRY LTD.

Porter Five Forces is a holistic strategy framework that took strategic decision away from just
analyzing the present competition. Porter Five Forces focuses on - how Gold Plus Glass
Industry Ltd. can build a sustainable competitive advantage in Materials industry. Managers
at Gold Plus Glass Industry Ltd. can not only use Porter Five Forces to develop a strategic
position with in Materials industry but also can explore profitable opportunities in whole
Materials sector.

Gold Plus Glass Industry Ltd. Porter Five (5) Forces Analysis for Materials Industry

1.8.1 Threats of New Entrants

New entrants in Materials brings innovation, new ways of doing things and put pressure
on Gold Plus Glass Industry Ltd. through lower pricing strategy, reducing costs, and
providing new value propositions to the customers. Gold Plus Glass Industry Ltd. has to
manage all these challenges and build effective barriers to safeguard its competitive edge.

How Gold Plus Glass Industry Ltd. can tackle the Threats of New Entrants

 By innovating new products and services. New products not only bring new
customers to the fold but also give old customer a reason to buy Gold Plus Glass
Industry Ltd.‘s products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants
are less likely to enter a dynamic industry where the established players such as Gold
Plus Glass Industry Ltd. keep defining the standards regularly. It significantly reduces
the window of extraordinary profits for the new firms thus discourage new players in
the industry.
1.8.2 Bargaining Power of Suppliers

All most all the companies in the Materials industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins Gold Plus
Glass Industry Ltd. can earn in the market. Powerful suppliers in Materials sector use
their negotiating power to extract higher prices from the firms in Materials field. The
overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Materials.
How Gold Plus Glass Industry Ltd. can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices
go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Gold Plus Glass Industry Ltd. can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have significantly
less bargaining power compare to Wal-Mart and Nike.
1.8.3 Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying
the minimum price as possible. This put pressure on Gold Plus Glass Industry Ltd.
profitability in the long run. The smaller and more powerful the customer base is of Gold
Plus Glass Industry Ltd. the higher the bargaining power of the customers and higher
their ability to seek increasing discounts and offers.

How Gold Plus Glass Industry Ltd. can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce
the bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Gold Plus Glass Industry Ltd. keep on coming up with new
products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Gold Plus Glass
Industry Ltd. to its competitors.
1.8.4 Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute
to storage hardware drives. The threat of a substitute product or service is high if it offers
a value proposition that is uniquely different from present offerings of the industry.

How Gold Plus Glass Industry Ltd. can tackle the Treat of Substitute Products /
Services
  By being service oriented rather than just product oriented.
 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.
1.8.5 Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Gold Plus Glass Industry Ltd.
operates in a very competitive Materials industry. This competition does take toll on the
overall long term profitability of the organization.

How Gold Plus Glass Industry Ltd. can tackle Intense Rivalry among the Existing
Competitors in Materials industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just
competing for small market.
1.9 MARKETING MIX

Neil Borden in the year 1953 introduced the term Marketing mix, an extension of the work
done by one of his associates James Culliton in 1948.

A mixture of several ideas and plans followed by a marketing representative to promote a

particular product or brand is called marketing mix. Several concepts and ideas combined
together to formulate final strategies helpful in making a brand popular amongst the masses
form marketing mix.

1.9.1 Product
 Goods manufactured by organizations for the end-users are called products.
 Products can be of two types - Tangible Product and Intangible Product (Services)
 An individual can see, touch and feel tangible products as compared to intangible
products.
 A product in a market place is something which a seller sells to the buyers in
exchange of money.
1.9.2 Price
 The money which a buyer pays for a product is called as price of the product. The
price of a product is indirectly proportional to its availability in the market. Lesser its
availability, more would be its price and vice a versa.
 Retail stores which stock unique products (not available at any other store) quote a
higher price from the buyers.
1.9.3 Place
 Place refers to the location where the products are available and can be sold or
purchased. Buyers can purchase products either from physical markets or from
virtual markets. In a physical market, buyers and sellers can physically meet and
interact with each other whereas in a virtual market buyers and sellers meet
through internet.
1.9.4 Promotion
 Promotion refers to the various strategies and ideas implemented by the marketers
to make the end - users aware of their brand. Promotion includes various
techniques employed to promote and make a brand popular amongst the masses.
1.10 ANALYSES OF THE MARKETING MIX OF GOLD PLUS GLASS INDUSTRY

1.10.1 Product

Gold Plus Glass Industry deals in the manufacturing of a wide range of float glasses which
includes Clear Glass, Frosted Glass, Mirror, Reflective Glass, Dusk Grey Glass and
Lacquered Glass.

1.10.2 Place

Gold Plus Glass Industry involves in selling in products with India and has reach in almost
every state. Some of the major states within India are

 UP
 Bihar
 Punjab
 Assam
 Uttarakhand
 Himachal Pradesh
 Tamil Nadu
 Andhra Pradesh
 Maharashtra
 Haryana
 Jammu and Kashmir etc.

Whereas the only country where Gold Plus Glass Industry has its reach outside India is
Nepal.

1.10.3 Price

Generally the company follows a Competitive Based Pricing and Mark-up Pricing. Example
of some SKU of Gold Plus-

 Clear Glass Branded, 2.5mm to 6mm ( Rupees 52 to Rupees 56)

 Clear Glass Unbranded, 2.5mm to 6mm (Rupees 49 to Rupees 53)
 Clear Glass Branded, 8mm to 12mm (Rupees 55 to Rupees 59)
 Clear Glass Unbranded, 8mm to 12mm (Rupees 52 to Rupees 56)
 Mirror Branded, 2.5mm to 5mm (Rupees 87 to Rupees 90)
1.10.4 Promotion

Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others. Gold Plus Glass industry involves in Direct Selling and Promotional
Strategies that Gold Plus Glass Industry follows are Discounts, Schemes and Incentives for
the Dealers.
1.11COMPETITORS OF GOLD PLUS GLASS INDUSTRY LIMITED

1.11.1 Asahi India Glass

Established in 1984 by BM Labroo, Asahi India is one of the largest glass companies in India
with a market capitalization of nearly Rs. 3306.02 Crore. Primarily famous for automobile
glass owing to a massive 77% share in the Indian automobile glass market, Asahi is also
popular for its Architectural Glass and Solar Glass variants as well. Set up as a joint venture
between Labroo family and Maruti Suzuki India, Asahi also boasts of India‘s first and largest
automotive repair & replacement network with 49 specialist centers spread across 28 cities in
India.

1.11.2 La Opala RG Limited

Founded by Mr Sushil Jhunjhunwala in the year 1986, La Opala is currently is India‘s

number tableware brand. Headquartered in Kolkata, Bengal, La Opala has become one of the
leading companies in glass manufacturing through its various popular brands like La Opala
RG, La Opala, Diva from La Opala and solitaire and offers an exquisite range of decorative
and handcrafted glasses and plates.

1.11.3 Borosil Glass Works Limited

One of the leading laboratory goods manufacturers in the nation, Borosil was founded by PK
Kheruka in the year 1962 and is based out of Mumbai. With over 50 years of hardcore
experience and presence in the glass industry, they have a market capitalization of Rs 480.96
Crore and are known for their Low Iron Solar Glass, Scientific and Industrial glass variants.

1.11.4 Saint-Gobain Sekurit India Pvt Ltd

With over 350 years of heritage behind Saint-Gobain, this is easily one of the most popular
glass companies across the globe. With a core business comprising mainly of Float Glass,
Automotive glass and Glass containers, this company has a worldwide presence in 67
countries and established it‘s presence in India way back in the year 1996. In 1997 it acquired
a majority stake in Sekurit India Pvt Ltd and is now known as Saint-Gobain Sekurit India Pvt
Ltd.
1.12 PROBLEM STATEMENT

Warehousing and Inventory control is also important to maintaining the right balance of stock
in the warehouses of the company. No company would like to lose a sale because they didn‘t
have enough inventories to fill an order. Constant inventory issues (frequent backorders, etc.)
can drive customers to other suppliers entirely. Complete control over your inventory leads to
provide better customer service. It will also help companies to get a better, more real-time
understanding of what‘s selling and what isn‘t. Excess inventory in the warehouses takes up
unnecessary space. Too much inventory can trigger profit losses whether a product expires,
gets damaged, or goes out of season. Key to proper inventory control is a deeper
understanding of customer demand for the products.

1.13 OBJECTIVES

This study depicts to evaluate the existing Warehouse and Inventory Management system of
Gold Plus Glass Industry Limited and suggest the necessary changes so that the system can
get much more efficient.

 To improve the inventory management within the warehouse.

 To reduce the Turnaround Time of the vehicles.
 Reduce the variance between location shown by system and physical location of the
inventory.
 To suggest the measures for the reduction of warehouse and transit breakage.

1.14 SCOPE OF THE STUDY

The direction or method a company chose for inventory and warehouse management will all
depend upon the nature of the business and the essentials that must be fulfilled. The bottom
line is that inventory control is vital to the survival of any business. If one don‘t have a good
handle on your inventory it becomes really hard to have a true account for how business is
doing. It‘s a competitive market out there and inventory excess or shortages become can
become reason of downfall.

As Gold Plus Glass Industry deals in Float Glass Manufacturing proper Warehousing and
Inventory Management becomes crucial because of the nature of finished goods. Under this
study attempts have been made to suggest some corrective measures in Inventory
management using ABC analysis and descriptive statistics.
ABC Analysis is a comprehensive way of segmenting the customers or products to make sure
that one get the most out of its time and your resources when servicing them by breaking the
items down into three easily distinguishable categories. ABC analysis is based on what is
called the Pareto Principle, an economic principle created by the economist Vilfredo Pareto.
Pareto gained notoriety for saying that most economic productivity comes from only a small
part of the economy. Essentially, it shows that there is an unequal relationship between your
input and your output.

ABC analysis is a method of analysis that divides the subject up into three categories: A, B
and C.

Category A represents the most valuable products or customers that a company have. These
are the products that contribute heavily to the overall profit without eating up too much of the
resources. This category will be the smallest category reserved exclusively for the biggest
money makers.

For example, a software company might engineer different pieces of software, but one is a
niche software that can be sold at a significantly higher price than the others. That‘s why it
accounts for about 60% of the overall revenue, although the company sells far less of these
products compared to other software categories. Hence, this specific software is a category A
product.

Category B represents your middle of the road customers or products. Many wrongly
approach this group as those who contribute to the bottom line but aren‘t significant enough
to receive a lot of attention.

Yet, category B is all about potential. The members of this category can, with some
encouragement, be developed into category A items.

Category C is all about the hundreds of tiny transactions that are essential for profit but don‘t
individually contribute much value to the company. This is the category where most of the
products or customers will live. It is also the category where one must try to automate sales as
much as possible to drive down overhead costs.
 CHAPTER-2

LITERATURE REVIEW
2 INTRODUCTION

The present paper focuses on the review of existing literature in the field of Inventory
Management which helps in capturing both conceptual and research based studies. A number
of studies have been conducted to depict the effect of ABC analysis in Inventory
Classification for Warehouse Managament and the process is still going on. The present study
is the summary of critical points of a particular topic consisting of essential findings as well
as theoretical an d methodological contributions. My paper shall discuss conceptual
studies of both Indian and other nationals.

2.1 INVENTORY CLASSIFICATION WITH ABC ANALYSIS (ERKAN KIYAK,

OĞUZ HAN TİMUŞ, MEHMET KARAYEL)i

For a substantial organization, managing the expansive inventory is a serious problem. One
of the methods to solve this problem used widely is classifying the inventory according to
some criteria and managing inventory according to this classification. In this study, ABC
classification methods are researched and Ng's model, which is one of the most widely used,
selected for further investigation. An illustrative example is presented to show the usability of
the Ng's method.

2.2 THE EFFECTIVENESS OF ABC CROSS ANALYSIS ON PRODUCTS

ALLOCATION IN THE WAREHOUSE (BIAMI MBAKOP & ARIANE KEVINE)ii

Timeliness is very essential in today supply chain, every product has a supply chain and
every activity in an organization is part of a supply chain operation. Therefore, there is a need
to effectively manage the allocation of products in our various stores in order to reduce the
expected retrieval time which leads to the success of the whole supply chain. The objective of
this study seeks to bring out the effectiveness of ABC cross analysis in the allocation of
products in CHOCOCAM warehouse in Douala which will help them to avoid wastage of
time and effort in doing unnecessary works.

This work first analyzes the sales value of products using the ABC analysis model. And
secondly analyzes the order frequency value of the same products via the use of the same
model (ABC analysis). It later cross analyses the two previous analyses by starting with the
items of the first analysis and comparing the classification with the second one, it leads to the
classification of products into classes of AA, AB, AC, BA, BB, BC, CA, CB, CC. This is
done to acquire more significant information and to address the company to the most fruitful
products allocation in terms of stocks organization.

2.3 WAREHOUSE LAYOUT OPTIMIZATION (GIOVANNI MIRABELLI, TERESA

PIZZUTI, CLAUDIA MACCHIONE, DEMETRIO LAGANÀ)iii

Warehouses are key points of logistic processes. The design of a warehouse is a complex
problem. It includes a series of interrelated decisions among warehouse processes, warehouse
resources and warehouse organizations. This article deals with the implementation of the
mathematical model for the Products Allocation Problem (PAP) in a multi-layer warehouse.
The main goal of this work is the identification of the optimal warehouse configuration for a
company operating in the sector of production and distribution of sports equipment and
sportswear. The final aim of the layout optimization is the minimization of the handling costs
and decentralization costs related to the stored products, which on turn depends on the
assignment of products to the storage slots. In order to solve the PAP model, a preliminary
ABC analysis has been carried out to identify more significant class of products in terms of
sales volume and handling movements. The consistency of the obtained solution has been
successively evaluated considering the cost saving that could be obtained implementing the
new layout configuration. Different scenarios have been analysed and evaluated. Numerical
cost results show a good quality solution.

2.4 AN ABC ANALYSIS OF MULTIPLE COMPONENT OF COMPRESSOR UNIT

(SHISHIR KUMAR & SHAILENDRA KUMAR SINGH)iv

Inventory constitutes the most common part of current assets of larger majority of leading
manufacturing industries. The main intention of this study is to conclude whether or not
multiple-products in the Manufacturing Company can be evaluated and understood using
inventory management techniques. The study is considered as qualitative single case study.
The study method employed includes ABC analysis. Data collection is mainly through the
interviews with the officers and Technical staff involved in inventory control operations.
Secondary data is collected from the online information system to provide the annual reports,
sales report, SRR Report.
2.5 ROLE OF ABC ANALYSIS IN THE PROCESS OF EFFICIENT ORDER
FULFILLMENT (SYED ABDUL REHMAN KHAN & QUIAN DONG)v

In today‘s world, every company is competing to enhance its time-based competitiveness.

The time it takes to complete all activities of the order cycle is an important part of customer
service. Accurate and fast order processing is a hallmark of high quality of service. This
paper addresses the most time-consuming and costly factor of ordering process—order
filling. According to the several researchers, order filling is composed of the physical
activities for: acquiring products through stock retrieval, purchasing or manufacturing;
packing products for consignments; scheduling the consignment for delivery; and preparing
shipping documentation. Usually these series of activities in order-filling process need space
of warehouses, making them a central part of company‘s logistics system. This paper is based
on a case study to identify how some simple approaches built in theory can be applied to
firm‘s current practice to enhance order-filling process. Specifically, a short plan consisting
of ABC analysis and relocation of current positions of inventory is tested, and a long-term
plan for redesigning the layout of warehouse is proposed.

2.6 R.S. CHADDA (1964)vi

Study had been made on inventory management practices of Indian companies. The analysis
suggested application of modern scientific inventory control techniques like operations
research. These modern scientific techniques furnish opportunities for the companies,
Companies can minimize their investment in inventory but there is continuous flow of
production. He argued that industrially advanced countries, like, USA, were engaged in
developing highly sophisticated mathematical models and techniques for modernizing and
redefining the existing tools of inventory investment.

2.7 PRODUCT POSITIONING OPTIMIZATION USING THE ABC METHOD

(LIVIA MARTINELLI TINELLI, KELEN C. TEIXEIRA VIVALDINI)vii

Due to the high levels of competitiveness, companies have searched for market
differentiation by promoting innovations, reducing prices, improving quality, increasing
productivity and efficiency, etc. Logistics, in this context, plays an important and decisive
role in the maintenance of current customers and gain of new customers and prominence in
the market. The heating/cooling issue of the sales is common in some seasons, and depends
on the world economic situation, climate change or holidays. This paper proposes a
warehouse automation scenario that aims at minimizing logistic costs and level of stocks,
enabling the warehouse flow monitoring. It allows the company to improve its performance
in handling finished product stocks. By verifying the sales quantity for previous periods it is
possible to obtain the relationship between the seasonality of each finished product. Based on
these data we can create an ABC Curve, based on Pareto´s Principle that facilitates studies of
a better allocation of the products in stocks by rearranging the warehouse, creating an order
of priority of the company's portfolio and deleting unnecessary displacements through the
best routes of the AGV´s (Automated Guided Vehicles). Therefore it is possible to obtain a
lean warehouse that operates with minimum safety inventories, as the need for marketing in
certain times of the year has been. This handling of stock of finished products enables the
proposed reduction in logistic costs and consequently, a substantial competitive edge. To
complement the work, the proposed optimization was applied to a middle-sized business in
the region of Sao Paulo, for better analysis and understanding of the impact generated by the
seasonal demand on the warehouse. This case allowed observing high logistic costs in the
company, highlighting the needs of the proposed optimization. In conclusion, the project can
be considered of great importance to improve the conditions and storage methods.

2.8 INVENTORY CONTROL USING ABC AND HML ANALYSIS (SHIBAMAY

MITRA , SUJIT KUMAR PATTANAYAK & PAPIYA BHOWMIK)viii

Inherent uncertainties in demands and supply make it difficult for supply chains to achieve
optimum inventory replenishment, resulting in loss of sales or keeping excessive inventories.
An unkempt inventory can take up to one-third of an organization‘s annual investment.
Therefore, in order to compete with invariably erratic demands, it is not only challenging to
develop an intelligent system to maintain and control an optimum level of inventory but has
also become mandatory. Here we have tried to study the inventory control system of an EMU
coach manufacturing industry using ABC and HML analysis method.

2.9 SKU CLASSIFICATION (VAN KAMPEN, TIM J., AKKERMAN, RENZO, VAN
DONK, DIRK PIETER)ix

Stock Keeping Unit (SKU) classifications are widely used in the field of production and
operations management. Although many theoretical and practical examples of classifications
exist, there are no overviews of the current literature, and general guidelines are lacking with
respect to method selection. The purpose of this paper is to systematically synthesize the
earlier work in this area, and to conceptualize and discuss the factors that influence the choice
of a specific SKU classification. ABC analysis has been used for the analysis.

2.10 IMPROVEMENT OF INVENTORY CONTROL PROCEDURES (FERRY

ANDIKA HARMEN, RAFIKA YUNIASIH1)x

This study aims to analyze the inventory management and propose improvements to
inventory control procedures at the Secretariat of the Tax Court. This study used a qualitative
method with case study approach. This study describes the facts relating to inventory
management activities, associated with the procurement planning, receipt of inventory,
storage and maintenance, distribution of inventory, and record keeping. The results showed
there are still weaknesses in the inventory management and control procedures. Therefore,
this study proposes the improvement of inventory control by applying the calculation of
buffer stock and reorder point, and make improvement to the procedures of; supplies
admission; storing and maintenance; distribution procedure; and record keeping.
 CHAPTER-3

RESEARCH METHODOLOGY
3 INTRODUCTION

Research in fact is about collecting information that tells us about something and it helps us
make informed decisions. In other words, it is a way of gathering data or information which
we then organize in a coherent way, so that we can act or use it. A basic research method is a
more formal way of going about asking questions. We usually begin with something very
specific we want to know. Then we ask the question or questions in a structured way. This
structure is called a methodology. Knowledge of research methodology is useful in terms
being able to apply the proper method to a certain project.

3.1 THE STUDY

A descriptive statistic is a summary statistic that quantitatively describes or summarizes

features of a collection of information. It refers to the usage of graphs, table or numerical
calculations to summarize and present the data in an efficient manner. It is used to analyses
and represents the data that have been previously collected. Descriptive research gives
meaning to the quality and standing of facts. It is something more and beyond data gathering.
It involves collection of data to answer questions concerning the current status of the subject
of the study. Descriptive statistics is used to describe the basic features of the data in this
study. They provide simple summaries about the sample and the measures. Together with
simple graphics analysis, they form the basis of quantitative analysis of data. Descriptive
research seeks to describe the current status of an identified variable. It involves gathering
data which first describes events and then organizes, tabulates, depicts and describe the data
collection. It provides essential facts and understanding which contributes in the
establishment of standard norms of conduct, behavior or performance. It also helps in 37
determining the perception of product characteristics. It also helps in determining the degree
to which marketing variables are associated it also provides basis for decision making.
Descriptive research is qualitative research since it describes characteristics of relevant
groups such as consumers, salespersons, competitors and market areas. It is also a
quantitative research which estimates population parameters and establishes relationship
between variables
3.2 DATA FOR ANALYSIS

Primarily a complete sales data of last 6 months has been taken in order to perform the ABC
analysis of the inventory. The results and conclusions are drawn on the basis of the result of
the analysis.

3.3 TOOLS FOR DATA COLLECTION

 Some data has also been collected from departments like Marketing, Shipping and
Warehouse using the integrated ERP used by the company.
 The data has been gathered through interaction and discussions with the executives
and managers working in the division.

3.4 TOOLS FOR DATA ANALYSIS

Collected data have been cleaned, edited, and re-arranged for analysis and drawing a
conclusion. Microsoft Excel has been used for preparing tables for calculation and for
constructing pie charts and graphs used. Microsoft Word has been used for preparing the
report.
 CHAPTER-4

DATA ANALYSIS
4.1 WAREHOUSING AT GOLD PLUS GLASS INDUSTRY LIMITED

The basic function of a warehouse is to receive customer orders, store or keep goods, retrieve
required items, and finally prepare and ship those items. Warehouse operations are divided
into three parts which is as follows.

4.1.1 RECEIVING/ IN-WARDING OF FINISHED GOODS

Receiving is the process of unloading, checking quality and quantity, and dissembling or
repacking items for storage. It is the setup operation for all other warehousing activities. It
allows the warehouse to schedule receipt and unloading within the warehouse. Product will
be inspected and any noted exceptions, such as damage, incorrect counts, wrong description,
and so on.

Receive Packed
Material from
Cold End

Ensure
Quality NOT OK?
Quality Standards
Check

OK?

Barcoding of the
Boxes OK? Quality

Check

Initiate Storing in
the Warehouse

End

FLOWCHART 4.1.1- RECEIVING/ IN-WARDING OF FINISHED GOODS

The In-warding process of finished goods seems perfectly fine and no issues have been
observed. Hence, we can conclude that no such changes are required in the following process.

4.1.2 PUT-AWAY/ STORING OF FINISHED GOODS

The put-away operation physically moves the items from receiving location to the storage
area of the warehouse, which is also known as the reverse of order picking. The term put
away defines the appropriate location for items and transferring them to the specified storage
location to wait for demand. When product is put-away, the storage location should also be
scanned to record where the product has been placed. This information will subsequently be
used to construct efficient pick-lists to guide the order-pickers in retrieving the product for
customers. Most of the principles which enhance or streamline the picking process work well
for put away.

Receive Barcoded Boxes

Identification of vacant places for

storage by Shift In-charge

Storage at the Identified Location

Location Mapping Using Bar Code

Scanner at the End of Every Month

End

FLOWCHART 4.1.2- PUT-AWAY/ STORING OF FINISHED GOODS

In the existing system Shift In-charge decides where to store the material and no such areas
are specified for specific Item. This approach should be avoided and material should only be
stored at the specified places so as to avoid the confusion during pickup.

Earlier the location use to get assigned to the goods at the end of every month. This approach
should be avoided and location should be assigned to the goods as soon as they get stored
using the barcode reader.
4.1.3 SHIPPING OF FINISHED GOODS

The final movement process occurs at the shipping operation. Shipping process involves
inspecting, packing, palletizing and loading items into a carrier for further delivery.

Selection of truck for loading based on

ease of material availability

Truck arrival at loading point

Pre-staging of material by Forklift

Operator

Half barcodes to be stick on paper for

billing

Truck loading by Loading Operators

Inspection by Shift In-charge

NOT OK? Ensure

Quality
Check Quality Standards

OK?
OK?
Billing Initiation Quality

Check

End

FLOWCHART 4.1.3- SHIPPING OF FINISHED GOODS

In the existing system Shift In-charge calls vehicle for loading based on the ease of
availability of material because of which loading of some vehicles get delayed. To avoid this
it has been proposed that vehicle should be called for loading on FIFO basis.

Also rather than sticking barcode on page for billing, a system can be made where Shift In-
charge can scan the tags from the boxes against particular order using a Barcode Scanner at
the time when material is being loaded in the truck. Barcode scanner should deny if wrong
product is getting scanned. This will help in decreasing the time consumed during billing.
4.2 WAREHOUSE LAYOUT AT GOLD PLUS

IMAGE 4.2- WAREHOUSE LAYOUT

4.2.1 TRADITIONAL GRID LAYOUT

Conventional warehouse layouts, both for the storage area and order-picking area, imply a
traditional warehouse layout. This is the layout that can be found today in the majority
of warehouses. The basic form is rectangular, with parallel straight aisles. Gold Plus also
follows the same layout where each rectangular division has multiple racks for the storage of
glass boxes.

As such no necessary changes are required in the layout as Grid Layout is considered as one
of the best layouts in terms of efficiency. Also as far as Gold Plus is concerned the warehouse
is spacious and there is enough space available between two grids or the movement of
forklifts. Hence, we can conclude that the layout of the warehouse does not affecting the
efficiency of the warehouse and need not to be changed.
4.3 INVENTORY ARRANGEMENT

IMAGE 4.3- IDEAL INVENTORY ARRANGEMENT

No such technique of inventory management is used in Gold Plus Glass Industry Limited.
Earlier as stock was less, particular sections were specified for the particular inventory based
on the thickness. The earlier system of storage got disturbed as inventory started to grow and
new SKU‘s were added. Nowadays, it is quite hard to locate some of the slow moving items
as they don‘t move out too frequently.

Inventory Arrangement technique such as ABC Analysis is strongly recommended. Here,

ABC analysis will be done on the sales data of a fixed period. On the basis of the analysis the
inventory will be divided into three parts i.e. Fast, Slow and Nonmoving Inventory.

 A Items: Are of high value with low sales frequency.

 B Items: Are of moderate value with moderate sales frequency.
 C Items: Are of low value with high sales frequency.

No such system of Inventory arrangement exists in Gold Plus Glass Industry Limited. Hence
it is strongly recommended that the Finished Goods in the warehouse should be arranged
based on the ABC analysis done in section 4.6. According to which C or Fast Moving Items
can be placed near loading point. B or Moderate Moving Items can placed in the middle and
A or Slow Moving Items can be placed farther away. List of the items in all the three
categories is given in next pages.
4.4 ABC ANALYSIS

ABC is analysis of the inventory is done based on the sales data of last six months.

Item % Sales %

69.08 70

19.61 20
10 11.31

A B C

GRAPH 4.6- ABC ANALYSIS OF INVENTORY

4.4.1 INTERPRETATION

Out of the total inventory a total of 1530 items were sold in the last six months. The analysis
below was made on the sold items and result of the analysis is as follows –

 11.3% items (173 items out of total 1530 items) comprises 70% of the sales. Hence
these items can be classified as C or Fast Moving Items.
 19.6% items (300 items out of total 1530 items) comprises 20% of the sales. Hence
these items can be classified as B or Moderate Moving Items.
 69.1% items (1057 items out of total 1530 items) comprises 10% of the sales. Hence
these items can be classified as A or Slow Moving Items.

Rest of the inventory can be considered as Non Moving Items.

4.5 PICKING SYSTEM OF ORDERS AT GOLD PLUS

Being able to fulfill orders quickly and accurately is an absolute staple of good warehouse
management. After all, it‘s pretty much the entire reason for the warehouse existing in the
first place. Picking may seem like a simple concept at first. And it is when a company has
only few orders to deal with. But this becomes a much different story once its tarts dealing
with hundreds (or even thousands) of multiple item orders each day.

Gold Plus Glass Industry Limited follows Single Order Picking System.

4.5.1 SINGLE ORDER PICKING SYSTEM

This is the most basic picking method typically only used by those just starting out. Quite
simply, a picker will pick one order at a time in its entirety before moving on to the next. This
method is generally used by companies just starting out and aren‘t yet big enough to gain the
benefits of more complex picking methods.

Instead of using Single Order Picking System, Gold Plus can adopt Batch Order Picking
System. The picker can be assigned a batch consisting of a number of orders which have
nearly same products, picks them all in one go and then returns to a packing desk. The picker
will then get assigned a new batch to pick. The number of orders allocated to each batch will
be generally between 10 and 30. But this will really depends on the physical size of the
products and average order size.
4.6 TRUCK LOADING TIME

Truck Loading Time

0-20 Hours 20-40 Hours 40-60 Hours 60-80 Hours 80-100 Hours 100-120 Hours

3% 1% 1%

8%

46%

41%

CHART 4.8- TRUCK LOADING TIME

The above shown chart is based on the data collected of the vehicles dispatched in the month
of May. A total of 1117 trucks were dispatched and the result is as follows-

 Only 46% (516 out of total 1117) were dispatched within 20 hours of their arrival.
 41% (462 out of total 1117) were dispatched within 20-40 hours of their arrival.
 8% (90 out of total 1117) took around 40-60 hours in loading.
 4% (32 out of total 1117) took around 60-80 hours in loading.
 Around 16 vehicles took more than 80 hours in loading.

Ideal loading time is 24 hours as per the company guidelines. Hence we can conclude that a
majority of vehicles got dispatched after 24 hours which is a matter of concern.
The loading time of the vehicles was significantly high. Following are causes and
suggestions:-

4.6.2 CAUSES

Based on the observations made in the past two months the following causes has been
identified-

 Variance present in the inventory shown by the system and the physical inventory is
the main cause of the delay. Generally the material is not present at the locations
shown by the system and consumes a lot of time when searched manually.
 Vehicles are not called for loading in a particular order. Generally Shift In-charge
calls only those vehicles which are easy to load and material is easy to find.

4.6.3 RECOMMENDATIONS

 Inventory arrangement using ABC analysis will help the materials to be located
easily. As most of the fast moving items will be arranged near the loading area, they
will be easy to locate which automatically will reduce the loading time.
 Material should be called for loading in FIFO order. The vehicle entered first in the
company premises should be loaded first so that the waiting time of the truck can be
reduced.
4.7 WAREHOUSE HANDLING BREAKAGE

700
597.9
600

500
Quantity in MT

388.7
400
323 320.4
300 256.8

200 126
100

0
Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Months

Loss in MT

GRAPH 4.9- WAREHOUSE HANDLING BREAKAGE

The above graph shows the quantity of the warehouse handling breakage. The warehouse
handling breakage has increased significantly in the past months. Breakage in the month of
May-2019 has increased to 597.9 MT from 126 MT in Dec-2018. Warehouse breakage has
increased continuously in the last six months except in the month February-2019 where it was
256.8 MT, somewhat less than the other months.

Average Loss is around 335.46 MT which can be considered as really high.

As we have seen that the warehouse breakage has been constantly increased in the past six
months. Here are some of the causes and suggestions:-

4.7.2 CAUSES

 Unskilled contract manpower

 SOP not followed properly
 Inadequate training to forklift operators and helpers
 High Absenteeism of skilled manpower
 Scarcity of skilled manpower
 Unnecessary movement of inventory because of over stock.
4.7.3 RECOMMENDATIONS

 Unskilled contract manpower should be avoided so that improper handling of

inventory can be reduced.
 SOP should strictly be communicated to all the human resources working in the
warehouse
 Training session needs to be arranged for the workers so that they can understand the
SOP as well as work methodology.
 Unnecessary movement happens as no inventory arrangement models are being
followed. ABC analysis can be used for inventory arrangement which will help in
reducing the unnecessary movement of the inventory and breakage will be reduced.
 Skilled manpower hesitate to join because the low salary structure. Proper policies
should be made by HR department so that skilled manpower can be attracted.
4.8 TRANSIT BREAKAGE

40 38
34.2
35 31.2
30 27.7 28.1
26.2
Quantity in MT

25
20
15
10
5
0
Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Month

Loss in MT

GRAPH 4.10- TRANSIT BREAKAGE

The above graph shows the quantity of the transit breakage. The transit breakage has moved
in an up and down trend in the past six months. Breakage in the month of May-2019 has
increased to 34.2 MT from 27.7 MT in Dec-2018. Transit breakage increased in January from
27.7 MT to 38 MT in December and again got reduced to 26.2 MT in February. In March it
again got increased to 28.1 MT and went down to 28.1 MT in April. Last month the breakage
was recorded as 34.2 MT. Transit breakage was highest in the month of January where it was
38 MT.

Average Transit Loss in last six months is around 30.9 MT, which can be considered as
really high and incurring huge financial loss to the company.
 4.8.2 TRANSIT BREAKAGE AMOUNT IN MAY

Transit Loss in May

1.4
1.2
Amount in Lac

1
0.8
0.6
0.4
0.2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Dates

Target (In Rs.) Actual Loss Amount (In Lacs)

GRAPH 4.10.2- TRANSIT BREAKAGE AMOUNT IN MAY

As it can be seen in the above graph Gold Plus Glass Industry is incurring a heavy loss
because of the breakage in transit. The Loss target given by the management is Rs. 50,000. In
the month of May out of the 30 instances only 11 times the breakage loss is less than or equal
to the target whereas it is higher than 50,000 in most of the cases. Company incurred a total
loss of around 19 lacs in the month of May because of the transit breakage.

Company has incurred an Average Loss of around Rs. 60,000 in the month of May, which is
slightly higher than the target.
The transit breakage was analyzed to be significantly high. Following are the causes and
suggestions:-

4.8.4 CAUSES

Based on the observations the following causes has been identified-

 Scarcity of wooden base trucks.

 Improper loading as SOP not followed while loading the materials.
 Improper fitting of the boxes by using steel strips and wooden planks.
 Use of contractual manpower because of the scarcity of human resources.
  Inadequate training of operators and helpers.
 Poor road conditions.
 Inadequate Quality check mechanism by QC team.

4.8.5 SUGGESTIONS

 SOP has been prepared by the shipping department for the loading of trucks where
Pre-staging pattern and Loading pattern of the vehicle has been defined clearly. These
SOP‘s need to be strictly followed and department has to ensure that each and every
operator and helper must be aware of all the SOP‘s.
 SOP‘s has also been prepared for the binding of the material inside the truck so as to
avoid the pressure on glass because of the jerks and jolts during the journey. These
SOP‘s needed to be strictly followed so that the material can be tied using wooden
planks and steel strips. This way boxes will not move unnecessary during jerks and
breakage can be avoided.
 Contractual manpower needs to be avoided as loading operations require skilled
manpower. Whereas, contractual manpower changes frequently and has no assurance
if same person will be available for the same job next day. More skilled manpower
should be hired and HR Department should take necessary action in this direction.
 Training sessions can be arranged for the Operators and Helpers so as to enhance their
skills. It will definitely add value to the organisation as well as to the skills of
employees also.
 QC team does not have any specific set of SOP which they can follow during the
quality check. QC tem should have a specific set of Quality check mechanism so that
vehicles can be loaded without any error.
 CHAPTER-5

LEARNINGS AND CONCLUSION

5.1 LEARNINGS

 Variance present in the physical inventory and system inventory can badly impact the
efficiency of the warehouse operations and increases the turnaround time. Hence it is
necessary that physical inventory and system inventory should be accurate and
matched.
 Proper Warehouse Layout plays a major role in the efficient warehouse operations
and helps in reducing turnaround time as well as breakage of finished goods.
 Inventory should be classified and arranged within the warehouse using models such
as ABC analysis. It helps in fulfilling the orders quickly and reduces the loading time
of the vehicles. It also helps in reduction of breakage.
 SOP‘s should be strictly followed within every department. Ignoring the SOP‘s can
drastically affect the efficiency of the operations.
 Skilled Manpower is an important part of any organisation and unavailability of
skilled resources is the biggest problem for the industry and leads to financial losses.
 Too much dependency on contractual manpower also affects the operations within the
departments and leads to heavy losses.
 Training sessions should be organised within the departments such as warehouse and
shipping so that the unskilled resources can be converted into skilled one.

5.2 CONCLUSION

Gold Plus Glass Industry Limited is one of the largest glass manufacturing firms of India and
has competition with various MNC‘s. Currently because of the expansion plans some of the
mismanagement has been observed in the Warehouse and Shipping Operations which is
affecting the efficiency of the operations. In the following study several recommendations
have been provided for Warehouse and Inventory Management after studying the existing
system. These suggestions can be adopted by the organization so that the operations can get
much more efficient.
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