ABV-INDIAN INSTITUTE OF INFORMATION TECHNOLOGY AND

MANAGEMENT, GWALIOR

“CASE STUDY AND IT’S IT SOLUTION”

Submitted To: Submitted By:

Dr Anurag Shrivastava Gaurav Gupta (2010 MBA 06)

Mandeep Singh (2010 MBA 13)

Rohit Kr Singh (2010 MBA 24)

Vipin Tomar (2010 MBA 29)

 CONTENTS

1. ABOUT THE ORGANISATION

2. ORGANISATIONAL CHART
3. REAL PROBLEM
4. POSSIBLE SOLUTION
5. BEST POSSIBLE SOLUTION
6. DETAILS OF SOLUTION
7. ADVANTAGES OF SOLUTION
8. DISADVANTAGES OF SOLUTION
9. PURPOSE
10. IMPLEMENTATION
 ABOUT THE ORGANISATION

Badri Narain rubbers is a small scale industrial unit based

at Malanpur Industrial area, manufacturing a kind of specially raw
material product called “80 mesh crumb rubber” for tyre manufacturer
like Apollo Tyres J k Tyres & Ceat. The Manufacturing of the Product
called “80 mesh crumb rubber has been developed through mechanical
disk grinding process only first time in India by Mr Katare with an active
association of Technical staff of J K Tyre, Banmore.

Although operating at a very small level, the company

commands wide spread repute for quality all over the country in rubber
industry and area famous brand name for its kind of product.

Crumb rubber is generally a kind of recycled rubber

powder manufactured from scrap automobile tyres and auto parts in
different sizes of 20,30,40,60,80 mesh and above.

BN Rubbers manufacture 80-mesh crumb rubber

specifically from the peeled off portion of tread rubber of used and scrap
truck tyres as the tread part of truck tyres are made from the best of
rubber compound.

Internationally, 80-mesh crumb rubber is manufactured by

cryogenic process but the product involves a very high manufacturing
cost and not very economically viable for use. That why BN Rubber
manufacture 80-mesh crumb rubber by way of mechanical disk grinding
process at a considerably cheaper cost price with negligible property
loss.

BN INDUSTRY is strongly committed to produce quality

rubber products based on our skills, knowledge, experience and
expertise gained in developing innovative rubber  products. At the same
time management will give prime importance to the environmental
protection. BN Rubbers challenge the next millennium with their rubber
products equivalent to muscle. BN Rubbers shall maintain high quality
and sustained growth in sales, always keeping in mind obligation to the
environment and human society.
 The unit has been growing constantly and steadily during last
13 years since the company’s incorporation. The product is very well in
demand and the unit is working on three-shift basis round the year on
very sound and profitable lines. Since we have been supplying raw
material component for basic rubber compound used in manufacturing
automotives tyres by the world famous tyre manufactures in India having
international quality standards, BN RUBBERS have standardized their
process control system and are as ISO 9001:2008 certified company.

BN RUBBERS have been one of the best paying employers

in Malanpur and nearby Industrial areas and provide life time purposeful
employment. Having around 100 employees on our rolls, all employees
in our factory are well kept as in a family like atmosphere under an
umbrella of very easy and employee friendly service conditions.

The unit is having an existing annual demand to the level of

about 2800 MT on hand. We are further enhancing our capacity to the
level of 3000 MT as the use of our material is being under trail &
development in some other manufacturing companies in India. BN
RUBBERS are also planning to install Reclaim Rubber manufacturing
facility for a 4000 MT annual capacity shortly.
ORGANISATIONAL CHART

U
A
H
C
T
I
N
M
E
G
N
A
E
G
N
A
M
G
N
A
M
N
E
L
A
S
T
C
U
D
O
R
P
R
I
R
E
R
R
D
N
O
I
U
Q
D
N
A Y
T
I
L
U
O
C
A
N
M
A
E
H
E
I
K
R
A
M
T
R
T
N
C
L
O
S
T
N
D G
N

EXECUTIVE EXECUTIVE EXECUTIVE

WORKERS
REAL PROBLEM

For many small and medium enterprise, the largest asset on the
balance sheet is inventory. But without careful planning, inventory can
easily get out of whack, resulting in heavy markdowns due to overstocks
and ultimately, serious cash flow problems.

Since BN Rubbers Company makes raw material for tyre

industry, it totally depends upon the demand of its clients. As now days
due to rapid market fluctuation, demand of tyres is also affected, so to
maintain an optimal amount of inventory is a huge problem for company.
As BN Rubbers are small scale industry so it cannot hold large amount
of inventory because it blocks company capital. And to hold optimum
amount of inventory is also important weather it is of raw material or it is
of finished product.

As BN Rubbers depend upon some other industries (vendors)

to get raw material, packaging material etc. So to cope up with all the
industries are difficult task .and situation becomes worse when vendors
don’t fulfil their commitment. If the material BN industries gets from
vendors is not of good quality (quality parameters are set by BN
industries) that raw material is of no use and when vendors are late to
give material, it affects production.

As the unit head Mr. Rohit Katare told us that sometimes the
vendors also show their unwillingness to make and send product on due
date, and sometime because of transportation problem (due to
unavailability of vehicle or due to some traffic problem) , raw material
don’t come on time and in this case if they don’t maintain optimal amount
of inventory, it will become a huge problem.
POSSIBLE SOLUTION
According to us the Company has following alternative solutions :

1. Using Inventory Management Software.

2. Using more man power.
3. None

THE BEST SOLUTION

The best alternative out of them are using inventory
management software. The use of more man power for inventory
management increases the cost and also increases the error. Use of
man power is also not suitable for longer period which is the biggest
disadvantage .The growth of company is quiet well so that they have to
think about the solution which is suitable for longer period. The inventory
management software also has some advantages and disadvantages.
DETAILS OF SOLUTION
Inventory management software is a computer-based system
for tracking product levels, orders, sales and deliveries. It can also be
used in the manufacturing industry to create a work order, bill of
materials and other production-related documents.

Companies use Inventory Management Software to avoid

product overstock and outages. It is a tool for organizing inventory data
that before was generally stored in hard-copy form or in Microsoft Excel
spreadsheets.

Inventory Management software is made up of several

components, all working together to create a cohesive inventory control
system. These components include :

1. Asset tracking

When a product is in a warehouse or store, it can be tracked

via its barcode or other tracking criteria, such as serial number, lot
number or revision number.

2. Barcoding

Barcodes are the means whereby data on products and

orders is inputted into inventory management software. A barcode
reader is required to read barcodes and look up information on the
products they represent.

3. Order management

Once products reach a certain low level, a company’s

inventory management system can be programmed to tell managers to
reorder that product. This helps companies avoid running out of products
or tying up too much capital in inventory.

4. Service management

Companies that are primarily service-oriented rather than

product-oriented can use inventory management software to track the
cost of the materials they use to provide services, such as cleaning
supplies. This way, they can attach prices to their services that reflect
the total cost of performing them.
Advantages of using Inventory Management Software
1. Cost Savings

In many cases, a company’s inventory represents one of its

largest investments, along with its workforce and locations. Inventory
management software helps companies cut expenses by minimizing the
amount of unnecessary parts and products in storage. It also helps
companies keep lost sales to a minimum by having enough stock on
hand to meet demand.

2. Warehouse organization

Inventory management software can help distributors,

wholesalers, manufacturers and retailers optimize their warehouses. If
certain products are often sold together or are more popular than others,
those products can be grouped together or placed near the delivery area
to speed up the process of picking, packing and shipping to customers.

3. Updated data

Up-to-date data on inventory conditions and levels is also an

advantage inventory management software gives companies. Company
executives can usually access the software through a mobile device,
laptop or PC to check current inventory numbers.

4. Time savings

With the aid of restricted user rights, company managers can

allow many employees to assist in inventory management. They can
grant employees enough information access to receive products, make
orders, transfer products and do other tasks without compromising
company security. This can speed up the inventory-management
process and save managers time.
Disadvantages of using Inventory Management Software
1. Expense

Cost can be a major disadvantage of inventory management

software. Many large companies, such as Polo Ralph Lauren, Macy’s,
Nordstrom and Wal-Mart, use inventory management software, but small
businesses can find it difficult to afford it. Barcode readers and other
hardware can compound this problem by adding even more cost to
companies. The advantage of allowing multiple employees to perform
inventory-management tasks is tempered by the cost of additional
barcode readers.

2.Complexity

Inventory management software is not necessarily simple

or easy to learn. A company’s management team must dedicate a
certain amount of time to learning a new system, including its software
and hardware, in order to put it to use. Most inventory management
software includes training manuals and other information available to
users. Despite its apparent complexity, inventory management software
offers a degree of stability to companies. For example, if an IT employee
in charge of the system leaves the company, a replacement can be
comparatively inexpensive to train compared to if the company used
multiple programs to store inventory data.

But inspite of this disadvantages it is better for long period.

Purpose
Companies often use inventory management software to reduce their
carrying costs. The software is used to track products and parts as they
are transported from a vendor to a warehouse, between warehouses,
and finally to a retail location or directly to a customer.

Inventory management software is used for a variety of purposes,

including:

 Maintaining a balance between too much and too little inventory.

 Tracking inventory as it is transported between locations.
 Receiving items into a warehouse or other location.
 Picking, packing and shipping items from a warehouse.
 Keeping track of product sales and inventory levels.
IMPLEMENTATION
Inventory Power is designed specially for small and medium sized
enterprises (SME), such as computer stores, cell phones store,
bookstore, boutique, shoe store, retail stores, online shopping malls or
home business etc.

Inventory Soft provides a full solution for your company inventory

management.

Firstly, you need one Inventory Power Server program and

several Inventory Power POS program to build your company intranet.
Server program will build a database automatically when first installation,
no need install any other database like Microsoft SQL Server or Oracle.
Install pos program in each staff computer and connect each computer
to server program database file.

That's all, you have got everything you need to run inventory
management. With Inventory Power user-friendly interface and
functionalities you can control inventory, manage invoice, stock balance,
staff sales info with ease.

To enhance your inventory management, you might consider to install

more server program. For example, one computer for receiving &
storing, one computer for reporting etc.