study of information system & study the existing material handling equipment’s and analyze its...
TRANSCRIPT
APRACTICE SCHOOL REPORT
ON
“How do Retail Organization Measure Employee Effectiveness”
and
“Study the Existing Material Handling Equipment’s and analyze its Financial
and Cost aspect.”
At
“ADHIYA”
Submitted byMS. SHARON C. RAJU
[Batch No. 2014-16]
MBA SEMESTER II (MAY 2016)
INDEX
PROJECT A PROJECT BCompany
Profile
Study of Retail Environment Study the Existing Material
Handling Equipment’s and
Analyze its Financial and Cost
aspect
Organogram Study of Information System Process of the Organisation
by Process Costing
SWOT Linear Programming Model Cost & Finance of
Equipment’s
How do Retail Organization
Measure Employee
Effectiveness
Findings
Conclusion
Bibliography
Company Information
Business Name Manilal Stores
Brand Name Adhiya
Total number of Employees Approximately 200
Primary Line of Business School and Industrial Uniforms
Type & No of machines Sewing Machines - 100
They Serve in Gujarat, Maharashtra, Rajasthan,
Jharkhand and Karnataka
Partner Mr. Anish Adhiya and others
Company Profile
“Adhiya” was established in the year 1939, in the name of Manilal Stores.They offer School and Industrial Uniforms. In the year 2007 they startedtheir own designing studio and in 2012 they came up with a new deliverysystem with the launch of this E-commerce website.
They are the first uniform company to launch e-commerce website, inGujarat, with their new brand name “Adhiya”. As on date they have a fullyautomated factory carrying the full procedure from cutting to stitching andfinishing of the garment and nine outlets in the city as well as in other citiesof Gujarat, such as Bardoli and Vapi.
The factory has the capacity to manufacture over two thousand garments aday. They manufacture products like shirts, shorts, skirts, pinafores,blazers, etc. and they trade products like belts, shoes, ties, socks, bags etc.from other manufacturers.
Company’s Mission
“To provide uniforms, the best in quality & comfortable to children”
Organogram
Active Partner
CEO
Management Team
Production Manager
Marketing Manager
Purchase Manager
Factory & Godown
Handles Customers
Contacts Vendors
SWOT Analysis
Strength
• Use of ERP system helped to know the availability of the product easily without searching it manually
• Launching of E-commerce website helped to reduce the rush of customers
Weakness
• Negligence or delay in placements of orders, by the customers, may lead to non-fulfillment of the same in time.
• Even after having so many employees, when more orders come it becomes a big problem to manufacture so many clothes on time
Opportunity
• New opportunities are new customers & every new day is challenging for them
• Continually look for new sales opportunities
Threat
• Schools changing the uniform without informing (deadstock) lead to huge loss.
Project –A
Study of Retail Environment
Meaning of Retailing
Retailing
Retailing means “Every sale of Goods and Services to final
consumer” – Food products, apparel, movie tickets; services
from hair cutting to e-ticketing.
The players involved in this act are known as retailers. Retailers
can be manufactures, distributors or wholesalers
Wholesaler
A wholesaler is an intermediary entity in the distribution channel
that buys in bulk and sells to resellers rather than to consumers.
Manufacturer
The process of converting raw materials, components, or parts
into finished goods that meet a customer's expectations or
specifications.
1. There is direct end-user interaction in retailing
2. Final consumers make many unplanned or implusivepurchases
Large % of customers do not look at ads before shopping
They do not prepare shopping list
Make fully unplanned purchases
Retailer’s ability to forecast, budget , sufficient personnel on the selling floor becomes difficult
3. Functional
Price, convenience and store experience are functional characteristics that make up a strong retail brand. These functional characteristics are common to almost all retail stores.
CHARACTERISTICS OF RETAILING
Major Retailer Types
Specialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom
Franchising – Franchising is a form of licensing in which
franchiser provides the exclusive rights to sell its products
and/or services for a specified period of time in a specified
geographical area. Franchising actually is a French word that
means honesty or freedom.
Retail Environment of Adhiya
Adhiya is a retailer which has retail outlets of uniforms, in the
name of “Manilal Stores” in Surat, which plays an
intermediator role between the manufacturer and the
consumer.
The outcome of the best of marketing procedure:
Marketing helped them in increasing the volume of sales.
By doing research function , they found the requirements of
the customers, identify potential customers, Understanding
your existing customers, to know the targets for areas such as
growth, sales and the introduction of new products/services.
The customer get satisfied by adopting better quality
It helped for attracting new customers to buy their product.
How Adhiya discovers new customers?
A market is a group of potential customers with similar needs who are willing to
exchange something of value with sellers offering various goods and services
that can satisfy these needs. The marketer has the option of either approaching
the entire set of customers with a uniform marketing approach or adopting a
differentiated approach for different sets of customers. So Adhiya uses
Customer Segmentation &.Target marketing.
Adhiya also do product differentiation strategy and segmentation to attract the
right customer.
It helped Adhiya to reduce the risk of deciding to whom their product to be
marketed.
Segmentation- A market segment consists of a group of customers who share a
similar set of needs and wants. Rather than creating the segments, the
marketer’s task is to identify them and decide which one to target. Segment
marketing offers key benefits over mass marketing. The company can offer
better design, price, disclose, and deliver the product or services.
Target market-A target market is the market (customers) a company wants to
sell its products and services to, and to whom it directs its marketing efforts.
Identifying the target market is an essential step in the development of a
marketing plan.
Target Market of Adhiya
Industries Schools colleges Hospitals
Study of Information System
Information System
An information system is a set of interrelated components that
work together to collect, process, store, and disseminate
information to support decision making, co-ordination, control
analysis and visualization in an organization.
Business partnerships and other organizations rely
on information systems to carry out and manage their
operations, interact with their customers and suppliers, and
compete in the marketplace. Information systems are used to
run inter-organizational supply chains and electronic markets.
What are the most common types of information system in an organization?
Transaction Processing System
A small business processes transactions that result from day-to-
day business operations, such as the creation of paychecks and
purchase orders, using a transaction processing system, or
TPS.
Management Information System
Small-business managers and owners rely on an industry-specific
management information system, or MIS, to get current and historical
operational performance data, such as sales and inventories data.
The MIS can create prescheduled reports, which company management
can use in strategic, tactical and operational planning and operations.
Decision Support System
A decision-support system, or DSS, allows small-business managers
and owners to use predefined or ad hoc reports to support operations
planning and problem-resolution decisions.
DSS, users find answers to specific questions as a means to evaluate
the possible impact of a decision before it is implemented.
Executive Support System
The executive support system, or ESS, contains predefined reports
that help small-business owners and managers identify long-term
trends in support of strategic planning and non-routine decision
making.
Study of Information System Used by ADHIYA
What is an ERP System?
Enterprise resource planning (ERP) is business process
management software that allows an organization to use
a system of integrated applications to manage the business
and automate many back office functions related to
technology, services and human resources.
ERP software integrates all facets of an operation, including
product planning, development, manufacturing, sales and
marketing.
How did the ERP System help Adhiya in Retailing?
ERP Software offers different functional departments involved
in the operations or inventory processes are integrated into a
single system.
It helps them to keep track of the inventory, order placements,
loss prevention, to check the availability of the products; ERP
is very important system for this organisation.
SWOT Analysis of ERP in ADHIYA
Strength
Helps in routine decision making
Allow streaming of business process
Wide view of enterprise workflow
It allows integration with systems of associates and business
partners
Weakness
Its usage is complex
They required significant employee training
Security issues
Opportunities
They overlooked retail sector by the major ERP solution
providers.
Threats
High complexity of such systems
Security concerns regarding sharing of data over a network
(Topic-3)
Linear Programming
Linear programming
Linear programming (LP; also called linear optimization) is a
method to achieve the best outcome such as maximum profit
or lowest cost in a mathematical model whose requirements
are represented by linear relationships
Linear programming is a special case of mathematical
programming (mathematical optimization).
Also, linear programming is a technique for the optimization of
a linear objective function, subject to linear equality and linear
inequality constraints
ADVANTAGES OF LP
LP helps in attaining the optimum use of productive
resources. It also indicates how decision-maker can employ
his productive factors effectively by selecting and distributing
these resources.
LP techniques improve the quality of decisions. The decision-
making approach of the user of this technique becomes more
objective and less subjective.
Linear programming is most suitable for solving complex
problems.
Helps in simplicity and productive management of an
organization which gives better outcomes.
Steps In Application
Identify problem as solvable by linear programming.
Formulate a mathematical model of the unstructured problem.
Solve the model
Implementation Linear Programming
Problem Showing LP Model to minimize the cost of production in ADHIYA
Adhiya is a manufacturing company of uniforms. They
produce 2 forms of clothes for Winter (A) and for Formal use
(B).Cost of producing each unit of product A and B is Rs.60
&Rs. 50.Product A requires 2 Machine Hours. The contract is
to supply atleast 500units of product A to its customers. Total
Machine Hours for product A 300hrs. For the product A and B
requires 6 and 4 Labours Hrs. Available labor hrs is 400.
Formulate the problem as LPP to minimize its cost.
Decision Variables
X1= No of units of Product A
X2= No of units of Product B
Data Given
Resources/
Constraints
A B Total
Supply Customers 1 - ≥ 500
Individual
Constraints
2 - ≤ 300
Labour Hours 6 4 ≤ 400
Cost (Rs.) 60 50
Objective Function
ZMin = 60x1 + 50x2
Subject To Constrain
1. Supply Customers = x1 ≥500
2. Individual Constraints = x1 ≤ 300
3. Labor Hours = 6x1 + 4x2 = ≤ 400
Non-Negativity Constraints
X1, X2 ≥ 0
(Topic-4) How do Retail organization measure
employee effectiveness?
"If you can measure it, you can improve it." -Peter Drucker,
Employee Effectiveness
Employee effectiveness means when a worker produces a
desired outcome in the best possible way. Labor output acts
as a key parameter for measuring employee effectiveness.
Employee effectiveness can be developed through a range of
activities that create a better working environment. Some
activities are:
Training and recertification
Improved communications
Rewarding and remuneration
Employee recognition
Improved leadership and teamwork
Re-equipment
Better corporate culture
SIGNIFICANCE OF EFFECTIVENESS
Effectiveness means 'doing the right things or occupying
oneself with the right things.
Effectiveness is essential for improving results; and in order to
perform effectively, clarity is needed.
If your employees do not know what results are expected of
them, there is a risk that they will work but will not perform. They
are not doing the right things and so contribute insufficiently to
the success of your organization.
Adhiya Measures their employees in the following steps:
Step 1: Defining Objectives
This step involves the identification of the organization’s goals and
objectives and the key performance outcomes that provide value for
customers, employees, and the organization in general. The goals of all
departments, divisions, and employees of the organization are united with
its strategic goals.
Step 2: Rating Employees on work performance
This helped their employee to do their jobs better, it identified the need of
training and education needed for their job. Maintained fairness on their
salary, benefits, wages, firing. And some of the workers in Adhiya wants to
know their performance of the job i.e. they need performance feed back to
work effectively according to the need of the organization.
Step 3: Ask to rate their job satisfaction
Adhiya ask their employee to rate on their satisfaction towards the job to
know about their requirements and interest towards the job
Step 4: Digital Tracking
They use a computer software named as PMS that allows to track their
employees on task completeness basis, and to know the time speed.
Step 5: Checking Quality & Quantity
Quantity addresses how much work is produced. A quantity measure can
be expressed as an error rate, such as number one percentage of errors
allowable per unit of work. Quality address how well the work is performed
and/or how accurate or how effective the final product is.
Step 6: Cost Effectiveness
It is measured the work done by employees reducing unit costs, reduce
time and reduce wastage.
Step 7: Absenteeism
The ability for employee to show up at work and on time. How it is
affecting their work performance and other employees.
Step 8: Physical Fitness
Adhiya invest more on employee’s health and physical fitness
(Topic-5) Study the existing Material
Handling Equipment’s
PROJECT- B
Material Handling
Materials handling is the art and science of moving, packing
and storing of substances in any form.
It is the storage, protection, movement and control of
materials of materials during the course of the distribution,
manufacturing, warehousing, consumption and disposal.
Material handling combines a wide range of manual, semi-
automated and automated equipment and systems that
support logistics and make the supply chain work.
Their application helps with:
•Forecasting
•Allocation of Resources
•Production planning
Objectives of Material Handling
Inventory management and control
Customer delivery
After-sales support and service
Lower unit materials handling cost
Reduction in manufacturing cycle time
Better control of the flow of materials
Better working conditions
Better quality
Enhanced storage capacity
Higher productivity
Use of Material Handling Equipment’s in Adhiya&
Types of Equipment’s they use
In this industry they use Material Handling Equipment’s for garment products
after finishing sending it to godown, without any damages products reaches to
godown.
These equipment’s make loading and unloading of goods easily to the place
where it is to be distributed.
It helps them to minimize the use of labourers for lifting products
It is less time consuming activity , it takes less time to reach the place where it
should be placed
It helps them to cut down indirect cost of labour.
Reduces the overall cost by improving material handling
Some of the Material Handling Equipments
used by Adhiya
Fabric Roll Stand- There is several traditional ways
to unwind cloth rolls during the spreading process.
They use custom-made roll stands, generally kept on
the floor. This creates displacement problems and is
prone to tilts during sudden tension. As a practical
and scientific solution to this problem is table
mounted roll stand.
This provides wrinkle free, neat and clean, and easily
adjustable spreading system, depending on the
properties of the fabric. Even fabric width can be
adjustable as per specific requirements.
Besides giving better quality spreading by ensuring
smooth movement of rolls, the stand also eliminates
one/two hands, which are used for maintaining the
roll movement in the conventional system.
Cloth Clamp- These are used in different tailoring
houses for holding the fabric or the clothing to make
incisions saving both time and money
Fabric trolleyCloth Clamp
Fabric Roll Stand
Geared travelling trolleySteel Trolley
Fabric roll fork lift
Carton transfer trolley
Hanger trolley
Sewing machine table
extension (left/right/front)
Table For Sewing Machine are manufactured on
automated cnc machines, from high quality plywood
using a special bonding process for excellent
performance and durability. Our engineering
department is capable of handling complicated and
intricate profiles to match different types of industrial
sewing/lockstitch/overlock machines, etc, as per
requirement of their customer.
Cost & Finance Of Material Handling Equipment’s
Materials handling is the movement and storage of materials at the lowest possible
cost through the use of proper methods and equipment.
The essential requirements of a good materials handling system may be summarized
as:
Efficient and safe movement of materials to the desired place.
Timely movement of the materials when needed.
Supply of materials at the desired rate.
Storing of materials utilizing minimum space.
Lowest cost solution to the materials handling activities
Cost & Finance Of Material Handling Equipment’s
Equipments Cost
Steel Trolly 8000
Geared Travelling Trolly 4500
Sewing Machine table 3100
Fabric Trolly 11500
Fabric Rolling Machine 4.5l
Hanger Trolley 27000
Total 504100
1 Rent Rs. 2,88,000/-
2 Depreciation Rs.2,47,250/-
3 Interest on Capital
Investment
Rs. 20,97,880/-
4 40% of Wages of Staff &
Labour
Rs. 16,12,800/-
5 40% of other contingent
expenses
Rs. 72,000/-
7 Total Fixed Cost: Rs.
43,17,930/-
8 Profit Rs.
42,87,870/-
Use of Process Costing
Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced. Processing cost is used when nearly identical units are mass produced.
An account is opened for each process which is debited with materials cost, labour cost, direct expenses and overhead.
The output of a process is transferred to the next process in the sequence and the finished output of the last process is transferred to the finished Goods Account.
Process Costing is used in such industries producing standardized products
Cost are ascertained separately for each job which is cost unit
Cost are calculated when a job is completed
Process Account showing the process of Garment Production in Adhiya
Process A shows Cutting Expenses,
Process B shows Stitching expenses,
Process C shows Finishing expenses
Process A Process B Process C
Materials 20 35 10
Labour 6 14 8
Direct Expenses 2 5 3
Process A Account
Particulars Per Piece Total Particulars Per
Piece
Total
To Material 200 2000000
To Labour 60 600000 By output transferred
to Process 2
280 2800000
To Direct Expense 20 200000
Total 280 2800000 28 2800000
Output: 10000
Process B Account
Particulars Per Piece Total Particulars Per
Piece
Total
To Material 350 3500000
To Labour 140 1400000 By output transferred
to Process 3
540 5400000
To Direct Expense 50 500000
Total 540 5400000 54 5400000
Process C Account
Particulars Per
Piece
Total Particulars Per
Piece
Total
To Material 100 1000000
To Labour 80 800000 By output
transferred to
Process 2
210 2100000
To Direct Expense 30 300000
Total 210 2100000 21 2100000
Finished Stock A/C
Units ₹
To Process C 10000 2100000
FINDINGS
They use simple method of distribution channel “Manufacturer- retailer-
customer” helped them in direct interaction with the customers, and also
helped them in knowing their requirements, satisfaction level.
For satisfaction of customers and to attract more they do customization for
any customer according to their need. On time availability of uniforms and
provide according to customers interested design helped to attract many
customers to buy from Adhiya stores.
Adhiya’s online supply of uniform to schools gained more trust and to
success of the organization.
Adhiya adopted modern ERP software that provided them automation,
smooth work and kept track of work flow.
Customization can only be done with the help of ERP in Adhiya
They monitor over all work of the organization through ERP.
Use of new technologies in Adhiya like automated cutting machines for
cutting fabrics in bulk, automatic button stichers get them a speedy
workflow.
Adhiya use Linear programming to solve their problems of high cost, for
wastage of resources, manpower planning.
Adhiya initiated to measure employees performance level by rating
employees on work performance basis. Asked them to rate on the
employees job satisfaction level
Started tracking their daily productivity, task completeness through digital
system.
Adhiya use Pallet racking, Carton transfer trolley for storage and handling
the shape & size of the tools according to the product. These are non-
automated equipments. To ensure the safety of product during storage
they use high quality equipments.
Use of fabric Trolley & Fabric roll fork lift help to shift the goods from one place to another and also helped to reduce the labour cost and increased the level of profit
Adhiya’s garment material stored & moved easily reduced the damage of material. It reduced accident during material handling.
Button Sewing machines reduced the use of hand work by labour, it is speedy and in 1 sec- 5 buttons are stitched.
Conclusion
The overall objective of the organization is to Speed up their work with less cost and maximizing the profit. Adopting customization strategy they found a rapid increase in the sales and profit. On time delivery system done by Adhiya gained the trust of people and schools tend to buy uniforms in future also. Placing retail stores in every corner of surat helped customers buy near to home.
Adoping a credit policy encouraged schools and some institutions to buy in bulk that increased the sales turnover. With the implementation of ERP in Adhiyahelped to increase the stock sales, helped to check the availability of products.
ERP also helped Adhiya in formulation of price control. Enables them to have greater insight and visibility into their supply chain operations. By formulating the method of LP Model Adhiya improved their profitability, able to use resources without wastage & also reduced their risks, minimized cost.
Adhiya don’t have any particular scale for measuring effectiveness but they measured by doing some effective steps that helped them to know the job satisfaction level, their performance level, cost effectiveness, interest of the employees towards their job etc.
Adhiya using Fabric Roll Stand for neat, wrinkle free, clean and adjustable spreading of fabric .The main objective is to minimize the cost of material handling. Use of Automated fabric cutter helped to cut the layer of bundle of cloth. It is time consuming 50% of the time is saving by using it.
BibliographyBOOKS:
“Market Your Way to Growth”- PHILIP KOTLER
Aswathappa, Tshaka, M.N. Arora, J.K Sharma, Ravi Kishore
WEBSITES:
https://commlabindia.wordpress.com/2011/03/31/why-is-it-important-to-evaluate-the-effectiveness-of-training-programs/
http://www.slideshare.net/hrtalksblog/employee-engagement-9147086
http://www.slideshare.net/rohit3615/materials-handling-15528281
http://www.adhiya.com
Thank You