(First Page) MASTERS IN MANAGEMENT STUDIES

Summer Internship Report

Name of Company : FTECH ENTERPRISES

Address of Company : Gala No. 9/A,Egal Market, 90 Ft.Rd.,Next To Peninsula Hotel, Sakinaka,Andheri (East), Mumbai 400072.

Phone No.

: 9870482986

Email id.

: [email protected]

Submitted by: FIRDOS AHMED SHAIKH (Roll No.43) Name of Coordinator: x-------------x BESs Institute of Management Studies and Research ( Approved by AICTE & Affiliated to University of Mumbai)

May 2012

DECLARATION

I hereby declare that the Summer Internship Report submitted for the MMS Degree, BESs Institute of Management Studies and Research (Affiliated to University of Mumbai) is my original work and conducted in FTECH ENTERPRISES Company.

Place: Mumbai Date: FIRDOS AHMED SHAIKH Signature of the student

Certificate This is to certify that the Summer Internship Report is the bona fide internship work carried out by Mr. Firdos Ahmed Shaikh student of MMS, at BESs Institute of Management Studies and Research (Affiliated to University of Mumbai) during the May to July 2010, in partial fulfillment of the requirements for the award of the Degree of Master in Management Studies.

Place: Mumbai

Date:

Signature of the Director

Signature of the Coordinator

ACKNOWLEDGEMENTS

I wish to express my gratitude to MR.Firoz Shaikh from the Ftech Enterprises Company for providing me valuable information.

I am grateful to BESs Institute of Management Studies and Research for giving me an opportunity to pursue MMS. I wish to thank Professor Vikram D. Shikhare, Director, BESs Institute of Management Studies and Research who has been a perpetual source of inspiration and offered valuable suggestions to improve my practical Knowledge.

I am indebted to my Coordinator X-------------X Professor, BESs Institute of Management Studies and Research, for abundant guidance, support, and encouragement throughout my internship Study.

I would like to express my thanks to various people from the Ftech Enterprises Company for their support and direction.

Place: Mumbai Date: July , 2012

Signature of the student ( FIRDOS AHMED SHAIKH )

TABLE OF CONTENTS

Sr. No. 1. 2. 3.1 3.2 3.3 3.4 4 5 6 7 8 9 10 Company profile Genesis of the project Demand management

Content

Page No.

Demand management for MTO Demand forecasting Make to order v/s make to stock Objectives of Project Research Methodology Data analysis Discussion Outcome of the study Recommendations References

COMPANY PROFILE

FTECH ENTERPRISES ( Established in 1993) located in Navi Mumbai,Maharashtra are leading Manufacturer-Exporters of Central Air Conditioning accssories like One Piece Diffusers,Swirl Diffusers,VCD Quadrants,Grilles,Dampers etc. It is one of renowned One Star export house of india

Mr .FIROZ SHAIKH is Founder and Managing Partner of Ftech enterprises and is the inventor of One Piece Diffuser,which is Patented product all over the world. This design has altered the whole cost and efficiency equations in air conditioning industry.

FTECH ENTERPRISES is situated on the outskirts of Mumbai(BOMBAY), which are well equipped with latest CNC machines. High Speed machines,Hundred of power presss machines ranging from 10 to 250 tonnes. Above all,these units are Handled by 200 skilled workers, experienced Engineers and technically sound Directors.

FTECH ENTERPRISES is known for innovations.Over two decades FTECH ENTERPRISESS has developed many technologically improved products for air conditioning industry in the world.Egg Crate Grille is the latest addition in our existing wide product range.

The One-Piece Diffuser- High Quality ,energy Efficient,Economical,Good Looking is boon to the air conditoning industry. This wonder product has been invented by us and marketed all over the world. Ever since its establishment,We have manufactured millions of diffusers and exported to European Countries,Middle East ,South East Asia and othe developed countries.

We have received several honours in India.Best being the National Award for Research and Development granted by the Government of India. Internationally,the ASHRAE Team at AHR Expo 2003 honoured us by selecting our product for the AHR EXPO INNOVATION HONOURS which was held in Chicago(U.S.A) in january 2003.

One Piece Diffusers manufactured by FTECH are tested by ETL Laboratories USA- oldest testing laboratory in the world and which gives the correct technical details of our products.

Product Range:

ONE PIECE DIFFUSERS

FLAT DIFFUSERS & 3-CONE DIFFUSERS

OPPOSED BLADE DAMPERS

GRILLES-SINGLE AND DOUBLE DEFLECTION

ECG CRATE GRILLEVCD QUADRANTS & OTHER ACCESSORIES REQUIRED FOR CENTRAL AIR CONDITIONING SYSTEM

GENESIS OF THE PROJECT

FTECH ENTERPRISES located in Navi Mumbai,Maharashtra are leading Manufacturer-Exporters of Central Air Conditioning products Working for ftech enterprises for the period of 2 months was a great experience keeping my carrier in mind. Good ambiance ,proper facilities,supporting staff,and lots of learning was some of the key features of this organization While Working with this organisation i noticed few things which i discussed with sir. As this organisation makes hybrid products so they are involved in all types of scenario such as MTO,MTS,ATO AND ETO .But during the discussion sir told me to focus mainly on the area which means a lot to them which is MTO(Make to order). As ftech enterprises mostly deals with MTO products there is always pressure on organisation to meet customer needs in time by producing product before the due date and by fulfilling the specifications of product. During this quality according to the specifation of the product is also a major concern because even a slightest mistake can cause improper quality which will in turn effect the credibility and profitability of the organization So first thing which I found important to facilate demand management in this kind of organization is digitization by reducing the paper work. As this organisation is still using papers for documentation and less of digitization there is definitely need of change This can be done only if sales, purchase and accounting department are integrated by a computerized software i.e. ERP This software can also be useful in two ways 1. Whether the production is going according to the flow so that the customer demand can be met before the due date so that delivery can be done on time 2. As per the requirements of the customers proper planning of manpower, machine. Materials along with the cost required can be done

DEMAND MANAGEMENT

Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of historical sales data or current data from test markets. Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market

Demand forecasting is an activity a company does internally when it sets its sales budget. The demand forecast influences all upstream commitments and decisions. Forecasting is important and fundamental to any business. It is the act of looking ahead and anticipating the future.

Forecasting provides lead time to do the following: $ Respond to new situations (avoid surprises) $ Make optimal, and proactive decisions, instead of doing things by default, in a reactive mode TYPES OF DEMAND FORECAST

LONG TERM Long-term forecasts are for strategic management decisions such as those concerning new product introduction, large investments, acquisitions, entry into new regions or markets, and more.

MEDIUM TERM Medium-term forecasts relate to tactical,yearly,decisions.These include inventory planning, master production planning, subcontracting policies, hiring, setting staff/sales targets and bonuses, and more. SHORT TERM Short-term forecasts are for daily and weekly scheduling

TECHNIQUES OF DEMAND MANAGEMENT

Broadly speaking, there are two approaches to demand forecasting- one is to obtain information about the likely purchase behavior of the buyer through collecting experts opinion or by conducting interviews with consumers, the other is to use past experience as a guide through a set of statistical techniques. Both these methods rely on varying degrees of judgment. The first method is usually found suitable for short-term forecasting, the latter for long-term forecasting. There are specific techniques which fall under each of these broad methods.

Simple Survey Method: For forecasting the demand for existing product, such survey methods are often employed. In this set of methods, we may undertake the following exercise.

1) Experts Opinion Poll: In this method, the experts on the particular product whose demand is under study are requested to give their opinion or feel about the product. These experts, dealing in the same or similar product, are able to predict the likely sales of a given product in future periods under different conditions based on their experience. If the number of such experts is large and their experience-based reactions are different, then an averagesimple or weighted is found to lead to unique forecasts. Sometimes this method is also called the hunch method but it replaces analysis by opinions and it can thus turn out to be highly subjective in nature.

2) Reasoned Opinion-Delphi Technique: This is a variant of the opinion poll method. Here is an attempt to arrive at a consensus in an uncertain area by questioning a group of experts repeatedly until the responses appear to converge along a single line. The participants are supplied with responses to previous questions (including seasonings from others in the group by a coordinator or a leader or operator of some sort). Such feedback may result in an expert revising his earlier opinion. The Delphi Techniques, followed by the Greeks earlier, thus generates reasoned opinion in place of unstructured opinion; but this is still a poor proxy for market behavior of economic variables.

3) Consumers Survey- Complete Enumeration Method: Under this, the forecaster undertakes a complete survey of all consumers whose demand he intends to forecast, Once this information is collected, the sales forecasts are obtained by simply adding the probable demands of all consumers. The principle merit of this method is that the forecaster does not introduce any bias or value judgment of his own. He simply records the data and aggregates. 4) Consumer Survey-Sample Survey Method: Under this method, the forecaster selects a few consuming units out of the relevant population and then collects data on their probable demands for the product during the forecast period. The total demand of sample units is finally blown up to generate the total demand forecast. 5) End-user Method of Consumers Survey: Under this method, the sales of a product are projected through a survey of its end-users. A product is used for final consumption or as an intermediate product in the production of other goods in the domestic market, or it may be exported as well as imported. The demands for final consumption and exports net of imports are estimated through some other forecasting method, and its demand for intermediate use is estimated through a survey of its user industries.

Complex Statistical Methods: (1) Time series analysis or trend method: Under this method, the time series data on the under forecast are used to fit a trend line or curve either graphically or through statistical method of Least Squares. The trend line is worked out by fitting a trend equation to time series data with the aid of an estimation method. The trend equation could take either a linear or any kind of non-linear form. The trend method outlined above often yields a dependable forecast. The advantage in this method is that it does not require the formal knowledge of economic theory and the market, it only needs the time series data. The only limitation in this method is that it assumes that the past is repeated in future. Also, it is an appropriate method for long-run forecasts, but inappropriate for short-run forecasts. Sometimes the time series analysis may not reveal a significant trend of any kind. In that case, the moving average method or exponentially weighted moving average method is used to smoothen the series.

Moving Averages: Perhaps the simplest of all time series forecasting techniques is a moving average. To use this method, we calculate the average of, say, three periods of actual demand and use that to forecast the next period's demand. If this three-period average is to be used as a forecast, it would have to forecast demand in a future period, such as Period 8.

Because each average moves ahead one period each time, dropping the oldest value and adding the most recent, this procedure is called a moving average. The number of periods to use in computing the average may be anything from 2 to 12 or more, with 3 or 4 periods being common. If the time series is such that there is no upward or downward trend, then the moving average is a satisfactory technique. If, how-ever, there is any trend or any seasonal effect, then the moving average will not work very well. Moving averages lag behind any trends.

(2) Barometric Techniques or Lead-Lag indicators method: This consists in discovering a set of series of some variables which exhibit a close association in their movement over a period or time. For example, it shows the movement of agricultural income (AY series) and the sale of tractors (ST series). The movement of AY is similar to that of ST, but the movement in ST takes place after a years time lag compared to the movement in AY. Thus if one knows the direction of the movement in agriculture income (AY), one can predict the direction of movement of tractors sale (ST) for the next year. Thus agricultural income (AY) may be used as a barometer (a leading indicator) to help the short-term forecast for the sale of tractors.

3) Correlation and Regression: These involve the use of econometric methods to determine the nature and degree of association between/among a set of variables. Econometrics, you may recall, is the use of economic theory, statistical analysis and mathematical functions to determine the relationship between a dependent variable (say, sales) and one or more independent variables (like price, income, advertisement etc.). The relationship may be expressed in the form of a demand function, as we have seen earlier. Such relationships, based on past data can be used for forecasting. The analysis can be carried with varying degrees of complexity. Here we shall not get into the methods of finding out correlation coefficient or regression equation; you must have covered those statistical techniques as a part of quantitative methods. Similarly, we shall not go into the question of economic theory. We shall concentrate simply on the use of these econometric techniques in forecasting. We are on the realm of multiple regression and multiple correlation. The form of the equation may be: DX = a + b1 A + b2PX + b3Py You know that the regression coefficients b1, b2, b3 and b4 are the components of relevant elasticity of demand. For example, b1 is a component of price

elasticity of demand. The reflect the direction as well as proportion of change in demand for x as a result of a change in any of its explanatory variables. For example, b2< 0 suggest that DX and PX are inversely related; b4 > 0 suggest that x and y are substitutes; b3 > 0 suggest that x is a normal commodity with commodity with positive income-effect. Given the estimated value of and bi, you may forecast the expected sales (DX), if you know the future values of explanatory variables like own price (PX), related price (Py), income (B) and advertisement (A). Lastly, you may also recall that the statistics R2 (Co-efficient of determination) gives the measure of goodness of fit. The closer it is to unity, the better is the fit, and that way you get a more reliable forecast. The principle advantage of this method is that it is prescriptive as well descriptive. That is, besides generating demand forecast, it explains why the demand is what it is. In other words, this technique has got both explanatory and predictive value. The regression method is neither mechanistic like the trend method nor subjective like the opinion poll method. In this method of forecasting, you may use not only time-series data but also cross section data. The only precaution you need to take is that data analysis should be based on the logic of economic theory. (4) Simultaneous Equations Method: Here is a very sophisticated method of forecasting. It is also known as the complete system approach or econometric model building. In your earlier units, we have made reference to such econometric models. Presently we do not intend to get into the details of this method because it is a subject by itself. Moreover, this method is normally used in macro-level forecasting for the economy as a whole; in this course, our focus is limited to micro elements only. Of course, you, as corporate managers, should know the basic elements in such an approach. The method is indeed very complicated. However, in the days of computer, when package programmes are available, this method can be used easily to derive meaningful forecasts. The principle advantage in this method is that the forecaster needs to estimate the future values of only the exogenous variables unlike the regression method where he has to predict the future values of all, endogenous and exogenous variables affecting the variable under forecast. The values of exogenous variables are easier to predict than those of the endogenous variables. However, such econometric models have limitations, similar to that of regression method.

DEMAND MANAGEMENT FOR MTO(MAKE TO ORDER)

The focus of demand management in the MTS and ATO environment was largely on satisfying customers from the appropriate inventory finished goods or components . In the make to order and engineer to order environment there is another resource that needs to be taken into account engineering. Moving the customer order decoupling point to raw materials or even suppliers puts independent demand information further into the firm and reduce the scope of dependent demand information. Moreover ,the nature of the information needed from customers changes. we knew what the customer could buy in the MTS and ATO environment but not if when or how many in the make (engineer) to order environment on the other hand we are not sure what they are going to buy. We need, therefore, to get the product specification from the customers and translate these into manufacturing terms in the company. This means that a task of demand management in the environment is to coordinate information on customer product needs with engineering

The need for engineering resources in the engineer to order case is some what different than in the make to order case. In the make to order environment, engineering determines what material will be require ,what steps will be required in manufacturing and the cost involved The materials will come from companys inventory or be purchased from suppliers. In the engineer to order environment more of this same information is needed from customer although more of the details design may be left to engineers than the customers. Because of the need for engineering resources in this environment demand management s forecasting task now includes determining how much engineering capacity will be required to meet future customer needs.This may be complicated because some orders scan be in progress, even though they arent Completely specified and engineering,so materials co-ordination is still important

MAKE TO STOCK V/S MAKE TO ORDER

Introduction.
The processes of make-to-order and make-to-stock are similar at first sight. The major difference is that in make-to-order, production orders are linked to one or more sales orders whereas in make-to-stock production, orders are the result of production planning, which in its turn is based on a sales prognosis. Let us have a look at make-to-order first and see what implications it has for your ERP system, then focus on make-to-stock and finally draw our conclusions.

Make-to-order. Your production orders are caused by sales orders. This means that your ERP system must have a strong and intelligent link between its sales order module and the production-planning module. Sales orders must be translated into production orders. You should be able to monitor the progress of individual production orders so that you can keep your customers informed about a particular sales order. Let us illustrate it all with an example. A client orders a particular machine. The machine consists of many components listed on a bill of material. Some components are used in different machine models. The sales order is translated with the help of the bill of material into a production request. The production request will be combined with others (if there are any) to make a production schedule. The components for the machine are either to be manufactured or purchased. Some purchase components you keep in stock, others you purchase when needed. In a make-to-order environment production planning and purchasing can be quite hectic. If you have a pipeline of prospect orders the production planning and purchase departments can be prepared for things to come, but not if your production planning is totally dependent on the whims of your clients. Your ERP system must enable you to be flexible. For instance: delay one order and speed up another. A risk of make-to-order production is inefficiency and more wastage. Combining production orders as much as possible and refining the production process to its maximum potential can reduce this risk. To a certain extent the inventory manager can make sure that much used components are ready available in stock but the cost of having everything always in store is often prohibitive. Your purchasing department must be able

to act quickly and look for alternative suppliers fast when a preferred supplier cannot deliver. Just-in-time delivery arrangements must be made beforehand. The purchasing module of the ERP system must have this information readily available.

Make to stock. In this case production planning is based on a sales forecast for a certain time, a year, six months or a quarter. The ERP must be able to support the process of making a prognosis by providing statistical data and projections based upon historical information. The transformation of a sales forecast to a production planning is roughly similar to that described above. The advantage of producing for stock is that you are in most cases able to spread the production evenly over a given time period, avoiding most of the hectic scenes that often characterize make-to-order production. There is much room for achieving a highly efficient and effective manner of production. This does not mean that make-to-stock production is stable and free from erratic movements. Your production planning must be smoothly adjustable to changes in your sales forecast. An ERP system geared to make-to-stock production can in one aspect make life for your purchasing department easier: purchase orders are issued well in time on the basis of parameters as minimum stock, minimum order quantity and actual need (if the production quota for a particular article has been fulfilled, then the need for certain components will diminish)

Conclusions. There is a great similarity between the processes but also some important differences that have implications for the capabilities needed in your ERP system. Make-to-order:

The ERP system must have a strong and intelligent link between the sales order module and the production process module in order to transfer sales orders into production orders. Monitoring of individual production orders must be possible in order to meet the customers demands and to keep them informed about the progress of their orders. Production orders must traced back to sales orders. The ERP system must enable a highly flexible processing of orders in order to meet irregular sales demands. The ERP system should strongly support the inventory manager and the purchasing department, to ensure an uninterrupted flow of components and to keep stocks as low as possible.

You should take measures to reduce the risk of inefficiency and wastage. Make-to-stock: The ERP system must have strong statistical capabilities in order to support the sales forecasting process. Of course sales forecasting relies mainly on market expectations and projections but the statistical data provided by the ERP system is useful additional information. The sales forecast will be transformed into a production planning, similar as in make-to-order production. Make-to-stock leads to an evenly spread production schedule which is good for efficiency and effectiveness. However there is still need for flexibility to adjust to suddenly changing market circumstances. Purchasing must take into account the projected future need for components in relation to already fulfilled production quota.

OBEJECTIVES

To ensure uncertainty in demand To ensures proactive preventive maintenance is coupled with customers demands. Making recommendations for Service Improvement Plans Ensuring the Demand Management process is performed as designed. Ensuring the Demand Management process is fit for purpose. Ensuring process description meets objectives To mange the demand by reducing cost To manage demand With more efficiency,timely delivery,with minimum wastage To satisfy customers demand by fulfilling his needs To keep buffer stock so that delivery can be made within time In case of some problems such as power failure,defect in product or less availability of resources convincing the customer maybe the right thing to do first or else such action must be done which can cause minimum wastage or loss to firm and also which does not effect companys reputation

Personnel Leading and supporting the Demand Management team. Motivate the employees you are responsible for. Help them thrive in a challenging work environment. Understanding the full scope of the Demand Management process. Ensuring that all your co-workers in projects understand and follow all procedures they are involved with.

RESEARCH MEHODOLOGY

This research is done specifically for the purpose of finding out solutions for managing demand more properly in ftech enterprises ,so that customer orders can be mate before the due date and order can be delivered to the customer according to his specification and with required quantities Ftech enterprises is a manufacturer of central air conditioning products ,it deals with hybrid products which involves MTO,MTS,MTA and MTE scenarios . MTO is one of the process which are difficult to manage.The company manages the entire process of order receivable, producing goods and then dispatching it partly through digitization and partly through papered documentation The forecasting method used by company is moving average method of time series analysis which is more efficient method to carry out average of period of 6 months or 3 months . The forecasting here done simply by an excel sheet or by some calculation The entire MTO process consists of the following process in this organisation The customer places his order with required number of quantities along with his specifications The sales department receive this order in documented form then enters it in software of the company(customized software ultimate J) . sales department sends this list of order to production department production department checks the date when the order is needed along with it 1month lead time is taken into account by the company which is told to the customer If the order is in stock then it is fulfilled according to the date of customer or else lead time is taken into consideration. This buffer stock is maintained in case of only few customers which are regularly ordering products from company. This buffer stock is carried according to the moving average method discussed before for that particular product while the order is prepared the Quality control department keeps the track of the quality of product when the order is prepared the further transaction regarding the dispatch and receiving the amount decided for the sale of product is done by accounts department

TYPE OF RESEARCH

This research is said to be pure research as this involves testing and developing theories and hypothesis

OBJECTIVE

From the viewpoint of objectives, this research is said to be Exploratory research Exploratory research is undertaken to explore an area where little is known or to investigate the possibilities of undertaking a particular research study

INQUIRY MODE From the process adopted to find answer to research questions the approach is said to be structured approach Structured approach: The structured approach to inquiry is usually classified as quantitative research. Here everything that forms the research process- objectives, design, sample, and the questions that you plan to ask of respondents- is predetermined. RESEARCH PROCESS FORMULATING THE RESEARCH PROBLEM Ftech enterprises does has an software which helps in fulfillment of entire process of order receiving , order producing and dispatching it before date this entire process is done by various department such as sales ,production, quality control and accounting though this company has a software but the problem is that the department are not still interconnected as sales and production department works on software which is JOB SHOP and accounting department works on some other software and also many process in this 4 department are done manually instead knowing that this processes can still be digitise Also the company is using moving average forecasting method which is not best suited for organisation which involves MTO products There are no necessary preventive measures taken in case if companies quality found to be defective There may be also case where the order cant be mate before the date which

was decided for the fulfillment of the order FORMULATION OF OBJECTIVE The main focus of conducting this research is to fulfill the customer requirement within the time with the same specification and high class quality For this the demand management process needs to be strong This can be done if the paperless work concept comes into existence There should be a software that can help in planning the material, manpower and system requirement for the fulfillment of customers order within the time and with required specification Also new forecasting method need to be taken into consideration IDENTIFYING VARIABLE Here the identifying variable must be a organisation which has record of fulfilling the customers order before time with high class quality and with decided quantity

HYPOTHESIS

Paperless work in ftech enterprises can lead to improvement in demand management

As ftech enterprises deals with more of MTO products . The organisation should follow the concept of paperless work,that also suggest us about more of digitisation by the means of software which integrates all the department so that departments can get updated information whenever any order is placed. Most of the operations in ftech enterprises are partly manual and partly digitise. many a times it becomes difficult to retrieve information regarding the past orders because it was done manually this causes wastage of time. So the new customisation software which the company is going to undertake must include such a features that the data retrival becomes much simpler so that any past orders transaction can easily be retrived also the new system must consist of a function which can automatically calculate how much of production needs to be done daily to make the order ready before the due date the system must also have a functions which can help to calculate the manpower required , equipments required and also the material required to carry out the process

DATA COLLECTION
The data collected here is primary data which is collected for the first time for the purpose of fulfilling the requirement of this project METHODS FOR COLLECTING PRIMARY DATA INTERVIEWING Personally went to production department ask them the production flow Went to the sales department inquired about the flow Also went to quality control department asked them about measures taken for inspecting the quality

DISCUSSION WITH MEMBERS OF ORGANISATION

Ftech enterprises is a manufacturer of Air conditioning product. This company mainly deals with on service demand which is MTO (make to order) industry. Many companies orders product from Ftech enterprises. Among them is L&T. L&T order around 20 products. To give a suitable example. We can say L&T orders a product called as Fork. The company accepts the order and fulfills their requirements and provide them timely delivery of product. For providing timely delivery Sachin Impex uses a strategy of keeping readymade stock. As L&T orders this product called as Fork every month. Thus company knows their requirement and prepares and stores the product. On 1 st April Ftech enterprises calculates the total company stock and also average of 6 months of order from L&T is taken out to carry out avgstock which would be required to know the companies requirement in advance. Basically this helps in preparing a buffer stock.

PROBLEM 1: Some product from L&T require more oil as they are oil based. So if this oil level is not maintain. Then the product becomes rusty and some of the products contain plating so till the time it reaches L&T the product becomes rusty.

How it is tackled? The company orders a sample of rusty item from L&T. Analyze that product. Quality and control does the procedure of preventive and corrective action. And if the company is faulty then they replaces the defective product. But if the company finds that its not their fault then they discuss it with L&T and further L&T may be responsible if company product is not faulty.

PROBLEM 2:

Delay sometime occurs due to less man power. Raw material shortage and if material not available.

How it is tackled?

In this case the company convinces the other party by Interacting with them and ensures them that they provide them their product if they will be given a little more time.

PROBLEM 3:

The company also orders the products from other company which may be required to make the product of L&T. Thus sometime the product such as coil may be damaged from middle.

How it is tackled?

In this case company can replace the defective part and can use the product in making final L&T product.

OUTCOMES OF STUDY

Ftech enterprises is a well known SME deals with central air conditioning products In this fast developing environment even a SME cannot survive without implementing integrated system it has become a need for each and every organisation When technology comes lots of complex processes becomes simpler Demand management is a need for manufacturing firm because if not managed properly it can effect both profitability as well as credibility If customer backlog is formed company can take following actions to the extent of the problem If the company is unable to meet demand of customer before decided date due to any reason such as power failure,machine defect,breakdown of machineand less availability of material in market the company can tackle that problem by Either convincing the customer by tellin him the problem which the company is facing If the machine is breakdown then mechanic can be called immediately and getting it repaired as soon as possible If it is not possible you can get it done by other companies in market If you are the alone provider and if the machine cannot be repaired but the customer is loyal to you and you want to fulfil his order any how then you should buy a new machine because the one time loss is always better than losing ur credibility in market by loosing ypur valuable customers

RECOMMENDATIONS

New customise software must include following function A function which allows the drag and drop service which allowes you to assign your worker to another job as soon as his 1st work is done The functions which can forecast the demand properly by the means of moving average method The software must be such that it can divide the production process into number of steps so that order can be easily comleted Each and every department must be link together so they can share there valuable information with each other Other suggestion The production department must be given a system so that they can carry out the daily production percentage All the department must be link so that they can easily send email and valuable information to each other instead of doing it manually The material required which is forecasted must be used to be converted into products instead waiting for order to be come Forecasting technique which is used must be changed from moving average to regression

REFERENCES

en.wikipedia.org/wiki/Demand_forecasting www.slideshare.net/yashpal01/demand-forecasting www.economypedia.com/wiki/index.php?title=Demand_forecasting www.manh.com/solutions/planning...forecasting/demand-forecasting www.statsoft.com/textbook/demand-forecasting http://www.itframeworks.org

(First Page)

Summer Internship 2010 Daily Record Diary

Name of Student : FIRDOS AHMED SHAIKH

Roll No.

: 043

Mobile No.

: 9867933831

Name of Coordinator :

Name of Company : FTECH ENTERPRISES.

Address of Company : Gala No. 9/A,Egal Market, 90 Ft.Rd.,Next To Peninsula Hotel, Sakinaka,Andheri (East), Mumbai 400072.

Name of Authority ( Company) :

BESs Institute of Management and Research 10, Nesbit road, Mazgoan, Mumbai 400010

Daily Record Date: Time In Time Out

Activities Performed:

Your Learning:

Signature of Authority: