1. An
Organisational study
at
Jindal Steel And power
Submitted in the partial fulfillment of the requirement
for the Degree of
Master of Business Administration
Of
Bangalore University
Submitted by
Nischal Kumar Solanki
Reg no.:11RSCMA062
Under the guidance
of
Prof.Shayan Pal
Garden City College
Bangalore-560049
Page 1
2. DECLARATION
I, Nischal Kumar Solanki hereby declare that Industrial Training Report titled “An
Organisational Study at Jindal Steel And Power, Raipur” submitted in the partial
fulfillment of the requirement for the Degree of Master of Business Administration is
my original work and is not submitted for the award of any Degree, Diploma, Fellowship
or other similar title or awards.
Place: Bangalore NISCHAL KUMAR SOLANKI
Date: Reg no: 11RSCMA062
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3. TABLE OF CONTENTS
Chapter Contents
Number
1. Industry Profile.
About BPO.
About Parent Company.
About diversified Areas of Parent Company.
Company Profile About Aegis
Vision, Mission, Motive.
2. Organization structure of JSPL, RAipur.
3. Functional Area.
Human Resource Management.
Marketing Department.
Material Management Department.
Information Technology & ERP.
Vigilance Department.
4. SWOT Analysis of the Company.
Strength.
Weakness.
Opportunity.
Threats.
5 Findings and Suggestion.
Findings.
Suggestions.
6 Conclusion.
7 Bibliography
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6. Industry Profile – Steel Industry
Indian steel industry plays a significant role in the country‟s economic growth. The major contribution
directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure &
constructions, automobile, transportation, industrial applications etc. Moreover, steel variant stainless
steel is finding innovative applications due to its corrosion resistive property. India is the fifth largest
steel producer at the global front and struggling to become the second largest producer in the coming
years.
The country has acquired a central position on the global steel map with its giant steel mills, acquisition
of global scale capacities by players, continuous modernization & up gradation of old plants, improving
energy efficiency, and backward integration into global raw material sources. Global steel giants from
across the world have shown interest in the industry due to its phenomenal performance. For instance -
the crude steel production in India registered a year-on-year growth of 6.4% in 2010 and reached 66.8
Million Metric Tons.
India has emerged as the fourth largest steel producing nation in the world, as per the recent figures
release by World Steel Association in April 2011. In 2010, India was the 5th largest producer, after
China, Japan, USA and Russia had recorded a growth of 11.3% in steel production as compared to
2009. Overall domestic crude steel production grew at a compounded annual growth rate of 8.4%
during 2005-06 to 2009-10. The Indian steel industry accounted for around 5% of the world‟s total
production in 2010.
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7. new research report “Indian Steel Industry Outlook to 2012” says that the, Indian crude steel
production will grow at a CAGR of around 10% during 2010-2013. Moreover, with the government
proactive incentive plans to boost economic growth by injecting funds in various industries, such as
construction, infrastructure, automobile, and power will drive the steel industry in future. The report also
reveals that, steel consumption in India is expected to grow significantly in coming years as per capita
finished steel consumption is far less than its regional counterparts.
The demand for steel in the country is currently growing at the rate of over 8% and it is expected that
the demand would grow over by 10% in the next five years. However, the steel intensity in the country
remains well below the world levels. Our per capita consumption of steel is around 110 pounds as
compared to 330 Pounds for the global average. This indicates that there is a lot of potential for
increasing the steel consumption in India.
Immense growth potential in Indian Steel Sector
Domestic crude steel production grew at a compounded annual growth rate of 8.4% in the last few
years.
Crude steel production capacity of the country is projected to be around 110 million tonne by 2012-13.
222 Memorandum of Understandings (MOU) have been signed with various states for planned capacity
of around 276 million tonnes by 2019-20.
Investments at stake are to the tune of $187 billion in the Steel sector.
Increase in the demand of steel in India is expected to be 14% against the global average of 5-6% due
to its strong domestic economy, massive infrastructure needs and expansion of industrial production.
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8. Demand of steel in the major industries like infrastructure, construction, housing, automotive, steel
tubes and pipes, consumer durables, packaging and ground transportation.
Target for $ 1 trillion of investments in infrastructure during the 12th Five Year Plan.
Infrastructure projects (like Golden Quadrilateral and Dedicated Freight Corridor) will give boost to the
demand in the steel sector in near future.
Projected New Greenfield & up-gradation of existing Airport shall keep the momentum up.
Increased demand of specialized steel in hi-tech engineering industries such as power generation,
automotive petrochemicals, fertilizers etc.
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12. OF FUNCTIONAL AREAS THE JSPL, RAIPUR
HUMAN RESOURCE MANAGEMENT
MARKETING
MATERIALS MANAGEMENT
INFORMATION TECHNOLOGY AND ERP
VIGILANCE DEPARTMENT
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13. HUMAN RESOURCE DEVELOPMENT
Human Resource Development (HRD) is the frameworks for helping employees develop their
personal and organizational skills, knowledge, and abilities. Human Resource Development
includes such opportunities as employee training, employee career development, performance
management and development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals in
service to customers.
Organizations have many opportunities for human resources or employee development, both
within and outside of the workplace.
Human Resource Development can be formal such as in classroom training, a college course,
or an organizational planned change effort. Or, Human Resource Development can be informal
as in employee coaching by a manager. Healthy organizations believe in Human Resource
Development and cover all of these bases.
The field of HRD or Human Resource Development encompasses several aspects of enabling
and empowering human resources in organization. Whereas earlier HRD was denoted as
managing people in organizations with emphasis on payroll, training and other functions that
were designed to keep employees happy, the current line of management thought focuses on
empowering and enabling them to become employees capable of fulfilling their aspirations and
actualizing their potential. This shift in the way human resources are treated has come about
due to the prevailing notion that human resources are sources of competitive advantage and
not merely employees fulfilling their job responsibilities. The point here is that the current
paradigm in HRD treats employees as value creators and assets based on the RBV or the
Resource Based View of the firm that has emerged in the SHRM (Strategic Human Resource
Management) field.
The field of HRD spans several functions across the organization starting with employee
recruitment and training, appraisals and payroll and extending to the recreational and
motivational aspects of employee development.
Indeed, one reason for the emergence of the RBV or the SHRM paradigm is that with the
advent of the service sector and the greater proportion of companies in the service sector,
employees are not merely a factor of production like land, labour and capital but in fact, they
are sources of competitive advantage. This is characterized by many CEO‟s calling employees
their chief assets and valuing their contribution accordingly. As a matter of fact, many IT and
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14. Financial Services companies routinely refer to employees as the value creators and value
enhancers rather than just resources doing their job.
What this has meant is that the field of HRD has become prominent and important for
organizations and has morphed into a function that takes its place among other support
functions in organizations and indeed, it is the main driver of competitive advantage.
Further, the field of HRD now has taken on a role that goes beyond employee satisfaction and
instead, the focus now is on ensuring that employees are delighted with the working conditions
and perform their jobs according to their latent potential which is brought to the fore. This has
resulted in the HRD manager and the employees of the HRD department becoming partners in
the organization‟s progress instead of just yet another line function. Further, the HR managers
now routinely interact with the functional managers and the people managers to ensure high
levels of job satisfaction and fulfilment. The category of people managers is a role that has
been created in many multinational companies like Fidelity and IBM to specifically look into the
personality related aspects of employees and to ensure that they bring the best to the table.
Finally, HRD is no longer just about payroll or timekeeping and leave tracking. On the other
hand, directors of HRD in companies like Infosys are much sought after for their inputs into the
whole range of activities spanning the function and they are expected to add value rather than
just consume resources. With this introduction, we will be moving into the module covering
HRD with each aspect of the HRD function and the associated topics being covered here. It is
hoped that the readers would gain an overall perspective about HRD after going through the
HRD module.
This module covers the HRD function in organizations from a wide variety of perspectives. At
the outset, after the introduction to the module in the previous article, it is time to look at some
theoretical perspectives about the HRD function. When the field of management science and
organizational behaviour was in its infancy, the HRD function was envisaged as a department
whose sole role was to look after payroll and wage negotiation. This was in the era of the
assembly line and manufacturing where the HRD function‟s purpose was to check the
attendance of the employees, process their pay and benefits and act as a mediator in disputes
between the management and the workers. Concomitant with the rise of the services sector
and the proliferation of technology and financial services companies, the role of the HRD
function changed correspondingly.
For instance, the RBV or the Resource Based View of organizations was conceptualized to
place the HRD function as a department that would leverage the human resources from the
perspective of them being sources of strategic advantage.
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15. The shift in the way the human resources were viewed as yet another factor of production to
being viewed as sources of competitive advantage and the chief determinant of profits was
mainly due to the changing perceptions of the workforce being central to the organization‟s
strategy. For instance, many software and tech companies as well as other companies in the
service sector routinely identify their employees as the chief assets and something that can
give them competitive advantage over their rivals. Hence, the HRD function in these sectors
has evolved from basic duties and is now looked upon as a critical support function.
With the advent of globalization and the opening up of the economies of several nations, there
was again a shift in the way the HRD function was conceptualized. In line with the RBV and the
view of the resources as being international and ethnically diverse, the HRD function was
thought of to be the bridge between the different employees in multiple locations and the
management. Further, the present conceptualization also means that employees have to be
not only motivated but also empowered and enabled to help them actualize their potential. The
point here is that no longer were employees being treated like any other asset. On the contrary,
they were the centre of attraction and attention in the changed paradigm. This called for the
HRD function to be envisaged as fulfilling a role that was aimed at enabling and empowering
employees instead of being just mediators and negotiators.
Finally, the theory of HRD also morphed with the times and in recent years, there has been a
perceptible shift in the way the HRD function has come to encompass the gamut of activities
ranging from routine tasks like hiring and training and payroll to actually being the function that
plays a critical and crucial role in the employee development. The theory has also transformed
the function from being bystanders to the organizational processes to one where the HRD
function is the layer between the management and employees to ensure that the decisions
made at the top are communicated to the employees and the feedback from the employees is
likewise communicated to the top
PERSONNEL MANAGEMENT
Personnel management can be defined as obtaining, using and maintaining a satisfied
workforce. It is a significant part of management concerned with employees at work and with
their relationship within the organization.
According to Flippo, “Personnel management is the planning, organizing, compensation,
integration and maintainance of people for the purpose of contributing to organizational,
individual and societal goals.”
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16. According to Brech, “Personnel Management is that part which is primarily concerned with
human resource of organization.”
NATURE OF PERSONNEL MANAGEMENT
1. Personnel management includes the function of employment, development and
compensation- These functions are performed primarily by the personnel management in
consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution to the
concern.
3. Personnel management exist to advice and assist the line managers in personnel
matters. Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy
schedules, plans, work methods. The problems and grievances of people at work can be
solved more effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential
fully to the concern.
6. It also motivates the employees through it‟s effective incentive plans so that the
employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.
ROLE OF PERSONNEL MANAGER
Personnel manager is the head of personnel department. He performs both managerial and
operative functions of management. His role can be summarized as :
1. Personnel manager provides assistance to top management- The top management are
the people who decide and frame the primary policies of the concern. All kinds of policies
related to personnel or workforce can be framed out effectively by the personnel manager.
2. He advices the line manager as a staff specialist- Personnel manager acts like a staff
advisor and assists the line managers in dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends problems and
grievances of employees and guides them. He tries to solve them in best of his capacity.
4. Personnel manager acts as a mediator- He is a linking pin between management and
workers.
5. He acts as a spokesman- Since he is in direct contact with the employees, he is
required to act as representative of organization in committees appointed by government. He
represents company in training programmes.
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17. FUNCTIONS OF PERSONNEL MANAGEMENT
Following are the four functions of Personnel Management:
1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development
Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization. Human Resource
Planning has got an important place in the arena of industrialization. Human Resource
Planning has to be a systems approach and is carried out in a set procedure. The procedure is
as follows:
1. Analyzing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment program
4. Design training program
STEPS IN MANPOWER PLANNING
1. Analyzing the current manpower inventory- Before a manager makes forecast of future
manpower, the current manpower status has to be analyzed. For this the following things have
to be noted-
• Type of organization
• Number of departments
• Number and quantity of such departments
• Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts- Once the factors affecting the future manpower
forecasts are known, planning can be done for the future manpower requirements in several
work units.
The Manpower forecasting techniques commonly employed by the organizations are as
follows:
a. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
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18. b. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
d. Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
e. Other methods: Several Mathematical models, with the aid of computers are used to forecast
manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment program- Once the current inventory is compared with future
forecasts, the employment program can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
4. Design training program - These will be based upon extent of diversification, expansion
plans, development program ,etc. Training program depend upon the extent of improvement in
technology and advancement to take place. It is also done to improve upon the skills,
capabilities, knowledge of the workers.
IMPORTANCE OF MANPOWER PLANNING
1. Key to managerial functions- The four managerial functions, i.e., planning, organizing,
directing and controlling are based upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore, staffing becomes a key to all
managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in
the industrialization world of today. Setting of large scale enterprises require management of
large scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for further
participation and employment of employees in a concern. Therefore, all types of incentive plans
becomes an integral part of staffing function.
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19. 4. Better human relations- A concern can stabilize itself if human relations develop and
are strong. Human relations become strong trough effective control, clear communication,
effective supervision and leadership in a concern. Staffing function also looks after training and
development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best
possible manner. Higher productivity is a result of minimum wastage of time, money, efforts
and energies. This is possible through the staffing and its related activities (Performance
appraisal, training and development, remuneration)
NEED OF MANPOWER PLANNING
Manpower Planning is a two-phased process because manpower planning not only analyses
the current human resources but also makes manpower forecasts and thereby draw
employment programmes.
Manpower Planning is advantageous to firm in following manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever
required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training
program can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.
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20. TYPES OF RECRUITMENT:
1. INTERNAL RECRUITMENT - is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an organization. Internal
sources are primarily three - Transfers, promotions and Re-employment of ex-employees. Re-
employment of ex-employees is one of the internal sources of recruitment in which employees
can be invited and appointed to fill vacancies in the concern. There are situations when ex-
employees provide unsolicited applications also.
Internal recruitment may lead to increase in employee‟s productivity as their motivation level
increases. It also saves time, money and efforts. But a drawback of internal recruitment is that
it refrains the organization from new blood. Also, not all the manpower requirements can be
met through internal recruitment. Hiring from outside has to be done.
Internal sources are primarily 3 types
a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees is one of the
internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited
applications also.
2. EXTERNAL RECRUITMENT - External sources of recruitment have to be solicited from
outside the organization. External sources are external to a concern. But it involves lot of time
and money. The external sources of recruitment include - Employment at factory gate,
advertisements, employment exchanges, employment agencies, educational institutes, labor
contractors, recommendations etc.
a. Employment at Factory Level - This a source of external recruitment in which the
applications for vacancies are presented on bulletin boards outside the Factory or at the Gate.
This kind of recruitment is applicable generally where factory workers are to be appointed.
There are people who keep on soliciting jobs from one place to another. These applicants are
called as unsolicited applicants. These types of workers apply on their own for their job. For this
kind of recruitment workers have a tendency to shift from one factory to another and therefore
they are called as “badli” workers.
b. Advertisement - It is an external source which has got an important place in
recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of
market and scattered applicants can get information from advertisements. Medium used is
Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges which are run by
government. Most of the government undertakings and concerns employ people through such
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21. exchanges. Now-a-days recruitment in government agencies has become compulsory through
employment exchange.
d. Employment Agencies - There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by private
individuals supply required manpower to needy concerns.
e. Educational Institutions - There are certain professional Institutions which serves as an
external source for recruiting fresh graduates from these institutes. This kind of recruitment
done through such educational institutions is called as Campus Recruitment. They have special
recruitment cells which help in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a particular
area. They enjoy goodwill and a stand in the company. There are certain vacancies which are
filled by recommendations of such people. The biggest drawback of this source is that the
company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply manpower to the
Factory or Manufacturing plants. Through these contractors, workers are appointed on contract
basis, i.e. for a particular time period. Under conditions when these contractors leave the
organization, such people who are appointed have to also leave the concern.
Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people. Effective
selection can be done only when there is effective matching. By selecting best candidate for
the required job, the organization will get quality performance of employees. Moreover,
organization will face less of absenteeism and employee turnover problems. By selecting right
candidate for the required job, organization will also save time and money. Proper screening of
candidates takes place during selection procedure. All the potential candidates who apply for
the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it motivates more
of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data.
While selection is a negative process as the inappropriate candidates are rejected here.
Recruitment precedes selection in staffing process. Selection involves choosing the best
candidate with best abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order-
1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligibility criteria laid down by the organization. The skills, academic and family
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22. background, competencies and interests of the candidate are examined during preliminary
interview. Preliminary interviews are less formalized and planned than the final interviews. The
candidates are given a brief up about the company and the job profile; and it is also examined
how much the candidate knows about the company. Preliminary interviews are also called
screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill
application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc. These tests are used to objectively
assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required job or
not. But such interviews consume time and money both. Moreover the competencies of the
candidate cannot be judged. Such interviews may be biased at times. Such interviews should
be conducted properly. No distractions should be there in room. There should be an honest
communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.
Training of employees takes place after orientation takes place. Training is the process of
enhancing the skills, capabilities and knowledge of employees for doing a particular job.
Training process moulds the thinking of employees and leads to quality performance of
employees. It is continuous and never ending in nature.
IMPORTANCE OF TRAINING
Training is crucial for organizational development and success. It is fruitful to both employers
and employees of an organization. An employee will become more efficient and productive if he
is trained well.
Training is given on four basic grounds:
1. New candidates who join an organization are given training. This training familiarize
them with the organizational mission, vision, rules and regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
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23. 3. If any updations and amendments take place in technology, training is given to cope up
with those changes. For instance, purchasing a new equipment, changes in technique of
production, computer implantment. The employees are trained about use of new equipments
and work methods.
4. When promotion and career growth becomes important. Training is given so that
employees are prepared to share the responsibilities of the higher level job.
The benefits of training can be summed up as:
1. Improves morale of employees- Training helps the employee to get job security and job
satisfaction. The more satisfied the employee is and the greater is his morale, the more he will
contribute to organizational success and the lesser will be employee absenteeism and
turnover.
2. Less supervision- A well trained employee will be well acquainted with the job and will
need less of supervision. Thus, there will be less wastage of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills
required for doing a particular job. The more trained an employee is, the less are the chances
of committing accidents in job and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They
become more eligible for promotion. They become an asset for the organization.
5. Increased productivity- Training improves efficiency and productivity of employees.
Well trained employees show both quantity and quality performance. There is less wastage of
time, money and resources if employees are properly trained.
WAYS/METHODS OF TRAINING
Training is generally imparted in two ways:
On the job training- On the job training methods are those which are given to the employees
within the everyday working of a concern. It is a simple and cost-effective training method. The
in-proficient as well as semi- proficient employees can be well trained by using such training
method. The employees are trained in actual working scenario. The motto of such training is
“learning by doing.” Instances of such on-job training methods are job-rotation, coaching,
temporary promotions, etc.
Off the job training- Off the job training methods are those in which training is provided away
from the actual working condition. It is generally used in case of new employees. Instances of
off the job training methods are workshops, seminars, conferences, etc. Such method is costly
and is effective if and only if large number of employees have to be trained within a short time
period. Off the job training is also called as vestibule training, i.e., the employees are trained in
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24. a separate area( may be a hall, entrance, reception area, etc. known as a vestibule) where the
actual working conditions are duplicated
Training methods pertain to the types of training that can be provided to employees to sharpen
their existing skills and learn new skills. The skills that they learn can be technical or soft skills
and for all categories of skills, some training methods are suggested here. The training
methods can range from onsite classroom based ones, training at the office during which
employees might or not might check their work, experiential training methods which are
conducted in resorts and other places where there is room for experiential learning. Training
methods include many types of training tools and techniques and we shall discuss some of the
commonly employed tools and techniques. For instance, it is common for trainers to use a
variety of tools like visual and audio aids, study material, props and other enactment of scene
based material and finally, the experiential tools that include sports and exercise equipment.
If we take the first aspect of the different training methods that are location based, we would
infer from the explanation that these training methods include the specific location based ones
and would range from classroom training done at the trainers‟ location to the ones done on the
office premises.
Further, the experiential training methods can include use of resorts and other nature based
locations so that employees can get the experience of learning through practice or the act itself
rather than through study material. It needs to be remembered that the trainings conducted in
the office premises often involve employees taking breaks to check their work and hence might
not be ideal from the point of view of the organizations. However, provision can be done to
locate the training rooms away from the main buildings so that employees can be trained in a
relaxed manner. For instance, Infosys has training centres that are exclusively built for training
and these centres give the employees enough scope and time for learning new skills.
The next aspect of the training methods includes the use of visual and audio aids, study
material, props and equipment. Depending on the kind of training that is being imparted, there
can be a mechanism to use the appropriate tools and techniques based on the needs of the
trainers and the trainees. The use of the training material often indicates the thoroughness of
the training program and the amount of work that the trainers have put in to make the training
successful. Of course, if the training material is good, it also means that the employees would
benefit from the scope and depth of the material though they need to invest time and energy as
well.
Finally, the bottom line for any training to be successful is the synergy between the trainers and
the trainees and this is where the HRD function can act as a facilitator for effective trainings
and ensure that the trainers and trainees bond together and benefit in a mutual process of
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25. understanding and learning. In conclusion, there are various ways to approach trainings and
some of the methods discussed above would be good starting points for follow up action and
partnership between the training agencies and the organizations.
AREAS OF PROGRAMMES AT HRD CENTRE:
o NON EXECUTIVE
ENHANCNG ENGINEERING SKILLS (MECHANICAL)
ENHANCNG ENGINEERING SKILLS (ELETRICAL)
MUTISKILL
HYDRAULICS AND PUMP
ELECTRONCS AND PLC
COMPUTER
UNIT TRAINING
o EXECUTIVE
COMPUTER
MANAGERIAL GENERAL MANAGEMENT
MANAGERIAL FUNCTION
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26. MARKETING DEPARTMENT
Marketing is defined as the process of determining the needs and wants of consumers and
being able to deliver products that satisfy those needs and wants. Marketing includes all of the
activities necessary to move a product from the producer to the consumer. Think of marketing
as a bridge
From the producer to the consumer. Marketing starts with market research, learning
process in which marketers get to know everything they can about the needs and wants of
consumers, and it ends when somebody buys something. Many companies feel that services
provided to customers after the purchase also are an important part of marketing. All of these
Enterprises -- production, advertising, transportation, processing, packaging, and selling -- are
included in the marketing process.
THE NINE FUNCTIONS OF MARKETING
In order for the marketing bridge to work correctly -- providing consumers with opportunities to
purchase the products and services they need -- the marketing process must accomplish nine
important functions.
The functions are:
BUYING - people have the opportunity to buy products that they want.
SELLING - producers function within a free market to sell products to consumers.
FINANCING - banks and other financial institutions provide money for the production
and marketing of products.
STORAGE - products must be stored and protected until they are needed. This function
is especially important for perishable products such as fruits and vegetables.
TRANSPORTATION - products must be physically relocated to the locations where
consumers can buy them. This is a very important function. Transportation includes
rail road, ship, airplane, truck, and telecommunications for non-tangible products such
as market information.
PROCESSING - processing involves turning a raw product, like wheat, into something
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27. The consumer can use -- for example, bread.
RISK-TAKING - insurance companies provide coverage to protect producers and marketers
from loss due to fire, theft, or natural disasters.
MARKET INFORMATION - information from around the world about market conditions,
weather, price movements, and political changes, can affect the marketing process.
Market information is provided by all forms of telecommunication, such as television, the
internet, and phone.
GRADING AND STANDARDIZING - Many products are graded in order to conform to
previously determined standards of quality. For example, when you purchase US No. 1
Potatoes, you know you are buying the best potatoes on the market.
THE FOUR UTILITIES OF MARKETING
The marketing process must also add "utility" to the products consumers want. Utility is the
use or satisfaction a person gets from a product. If you purchase a chain saw you anticipate
that you will receive a certain amount of utility from it. You will be able to use the saw to cut fire
wood, prune trees, and take care of a variety of jobs around your home. There are four types
of utility.
FORM UTILITY - a product must be processed into a form that the customer wants or
needs. For example, wheat is processed into bread, trees are processed into
lumber, and potatoes are processed into French fries. If you ordered French fries
with your lunch and the waiter brought you a raw potato, you probably wouldn't be too happy.
PLACE UTILITY - place utility involves transporting products to the location where
consumers can buy them. If you live in Alaska, you certainly wouldn't want to have to
drive to California to buy oranges. Thanks to our modern transportation systems you
don't have to; you simply drive to the local grocery store and oranges are there ready
to add to your shopping cart -- place utility.
POSSESSION UTILITY - possession utility establishes legal ownership of a product. When
you purchase something you normally receive a receipt; this provides legal ownership
and the right to use the product. Some products, computer software, for example,
also provide a user license. A license of this kind gives you the right to use the product
within certain guidelines. Stocks prove that you own part of a company .This is an example of
Possession Utility.
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28. TIME UTILITY - this could be described as being in the right place at the right time when
a customer is ready to purchase a product. Creating and keeping customers means
having products available for when they want them, and often this requires some type
of storage facility. Wheat is one example of a commodity that must be stored after it is
harvested. It is stored in silos until processors are ready to convert it into food products
such as bread or cereals.
MARKETING STRATEGIES OF STEEL INDUSTRY
Global marketing strategies are not standard product and market strategies that assume the
world to be a single. Global marketing strategies are also not about global presence or about
large companies. A company can very well operate in as many as countries, but if what it does
in one country has no meaning for what it does in the other country, it is no different from the
domestic companies. To qualify as pursuing global strategy a company needs to be able to
demonstrate two things:
1) It should be able to contest in any market it chooses to compete in.
2) It should be able to bring its entire resources to bear on any competitive situation it finds
itself in, regardless of where that might be.
The following are the main attributes of global marketing strategy:
1) Standard products and marketing mix: There is a need to aim for a standard core in the
product and to limit marketing adaptation to these aims. The more integrated the companies
become economically, the less latitude there is any way for things such as price discrimination
and channel selection. The same applies to situations where buyers themselves are global and
expect similar products and terms on a worldwide basis.
2) Sourcing assets and not just products: Sourcing products and components internationally
based has long been a feature of international business. However this attribute implies that
global marketing strategies are much about asset deployment for market access purpose as
they are about asset accumulation abroad.
3) Market access in line with breakeven: In order to be competent in the global market a
company need not be the biggest in its kind. Instead it should be able to generate the volume
of sales the required infrastructure demands.
4) Contesting assets: The other feature of global companies is it can neutralize the assets
and competencies of its competitors. For example, if a competitor is forced to switch from a
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29. low-cost to high-cost factory, it too can do so. Similarly if a competitor gains access to a new
technology, it can do the same.
5) Functions have a global orientation: The competition at the global market level is not just
at the product or service level. It is also about building and maintain multinational infrastructure.
The above five attributes taken together operational the global strategy.
Conclusion: Global marketing strategies is gaining importance as more and more business
organizations are looking to compete in the global market
MARKETING OF JSPL
Jindal Steel And Power Limited JSPL is India‟s leading steel maker presents the world of
steel..Backed by over five decades of experience of producing quality steel and creating the sinews of a
modern India.
JSPL s five integrated steel plants (ISPs) produce the widest range of steel products that fulfil
diverse needs of our customers.
JSPL works closely with its customers understanding their needs and matching it with the right
product. In case, you do not find your specific product here (by the laws of probability chances
do exist, despite the fact that JSPL has the largest and widest products range in steel), and
need something exclusive (in terms of quality, size, etc.) still, JSPL is the answer.
For JSPLs dedicated R&D Centre, one of the most modern and largest in the country, it is an
everyday affair to churn out customized products and JSPLs 5 ISPs give shape to their
research capabilities.
All this, to make every customer of JSPL steel feel special, and satisfied.
JSPLs ongoing up-gradation and expansion program will further enhance our capability to add
to JSPLs product basket and provide more special quality steel for niche industry needs.
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30. ENLISTING NEW CUSTOMER INTO THE ORGANIZATION
DETAILS REQUIRED FROM NEW CUSTOMERS
New customers desirous of starting import of Mild steel products of JSPL on sustained basis
are requested to send the following details/documents for enlistment.
1. Customer profile (Details of the customer / Firm) who will establish the Letter of Credit.
2. Name, Address, Telephone & Fax number, e-mail of the Contact person overseas and the
same of the representative in India (if any).
3. Last two years balance sheet of the company desirous of doing business with JSPL.
4. Name, address of the Bank through which the Letter of Credit will be established.
5. A certificate from the banker about business dealing with the customer
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31. MATERIALS DEPARTMENT
STORE KEEPING:
Store is an area of Materials Management Department and has an interface with many user
departments in its daily operations. The other areas being purchase, Inspection, PIVD, SRG etc,. The
basic purpose served by it, is the provision of uninterrupted service to production departments. Store is
the finishing area where materials management activities come to an end. The indenting of materials,
processing of indents, finalizing indents, procurement of materials with necessary formalities, inspection
of materials and finally the account and custody of materials are covered under the materials
management activities.
Arrival of materials at destinations, unloading them, arranging for their inspection (wherever necessary)
and finally taking account action together with custody , with the objective of efficiently and
economically providing the right material at the right time whenever required in the right condition to all
user departments are the Storekeeping functions.
Receiving the materials either at stores location or at users site, acceptance of the right material at the
right time are to be carefully carried out, so as to see that the supplier does not suffer from inordinate
delay both in unloading and account action. Similarly the internal customer i.e., the user departments
do not find any difficulty for drawl of materials in time.
The storekeeper in a store plays a vital role in all the above activities depending upon the duty allotted
to him by his controlling officers. The concern storekeepers looking after the various sections of the
stores are the key functionaries around which all the Storekeeping activities revolve.
The Storekeeper has to prepare a well co-ordinated plan and accordingly co-ordinate with all the
necessary agencies such as; the supplier, transporter, purchase, inspection, FM(M) and the laboratory
(if necessary) and the user departments. All the agencies do have their role to play as and when
approached by the store.
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32. Storekeeping job though sounds much simple are an intricate job. The Storekeeper has to foresee,
visualize the shape of things to come in the days ahead wherein he has to function within limited
resources. Accordingly he decides and plans how to keep the materials where to keep them safely so
that they can be safely and securely issued to the user without any difficulty.
MATERIALS MANAGEMENT
The Stores Department is a part and parcel of the Materials Management Department, which is
functioning under the overall control of the Executive Director, Materials Management. The Stores
Department is headed by Deputy General Manager I/C (MM), Inspection & Stock Control, who is
assisted by DGM.(MM) Stores Administration, DGM.(Stock Control) and other executives of Stores
department. There are all together 21executives working in stores Department as on date.
There are Five Main Stores and Five Sub-Stores in Material Management Department of Rourkela
Steel Plant.
1. CENTRAL STORES
2. MODERNIZATION STORES
3. REFRACTORY STORES
4. PLANT STORES – II
5. CSM STORES
6. SUB –STORES:
BLAST FURNACE SUB-STORES
COLD ROLLING MILL SUB-STORES
HOT STRIP MILL SUB-STORES
SINTERING PLANT SUB-STORES
TRAFFIC SUB-STORES
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33. As we know that Store keeping function is an inseparable part to any organization, whether industrial or
service oriented, public or private, small or large. Even though store keeping does not add any value to
the product in normal sense, it is an essential function and just cannot wished away. The Storekeeping
activities in Rourkela Steel Plant, are carried out according to the Stores Procedures, Standard
Operating Practices and Stores Manual. These activities are discussed in detail in the preceding
chapters.
MATERIAL RECEIPT & ACCOUNTING
Various material required in the plant are received various sources from outside which are verified and
accounted for in the Stores. Materials are received from various sources through various modes of
transportation. The major mode of transportation in our plant is receipt through Rail and Road. Other
than this the materials are received through courier, registered post or by hand also.
1.0 RECEIPT:
The receipt function is the last step in the Purchasing activity and the first link in the Stores Function.
This deals with the function of Receiving and physically handling delivered materials and verifying that
the delivery corresponds exactly as to the nature and quantity as per specified in Purchase Order.
The Storekeeping functions starts with the arrival of Consignments / Materials at the Material Gate i.e.
the Traffic Gate of JSPL. All incoming materials to the plant are physically checked for number of
Packets by CISF. The Stores representative i.e. the Storekeeper checks the validity of the delivery after
checking an on-line entry is made regarding A/T No., Challan No., Consignment Note (C/N), Type of
vehicle, Vehicle No. etc. in the Integrated Material Management System(IMMS) and the truck
movement permit is generated. Entry of materials at Traffic Gate is permitted between 8:30 am to 12:30
pm and 3:30 pm to 4:30 pm. The GARN Lead Time calculation is started from the time of Gate entry.
On reaching the materials at Stores, the representative of the Supplier / Transporter reports the Stores
Gate, where the documents are checked and entered into a register manually. The Central Store Gate
is computerised, where Data is picked-up from Traffic Gate entry. On giving the A/T No. only entry time
and receiving Bay location is fed in the system and correction / updation, if any, is also done here.
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34. 1.1 WEIGHMENT:
Weight of minor raw materials such as Tin Ingot, Copper cathode, Nickel Lead etc., are weighed in Dial
Scale/Electronic scale of metal bay in piles. Certain other raw materials such as Aluminium ingot, Zinc,
Oil and Lubricants, Graphite, Electrode, Casting Powder (Indigenous, Carbon dioxide, are weighed in
RSP road weigh bridge controlled by PPC.
After the CISF gate entry of trucks/handcarts, each consignment is weighed either at PPC road weigh
bridge or at stores Dial/Electronic scale as per the SOP with a Weighment memo prepared by the
concerned store keeper and counter signed by the concerned officer. The Weighment memo depicts
date, name of the material, source of supply, A/T No. , C/N no., challan no., & date and space for
recording Gross weight, Tare weight, sign of the weigh bridge operator and witness wherever
necessary. The Gross weight is taken first and after the unloading the tare weight is taken. Out of 3
copies, the 1st is handed over to the stores, the 2nd retained by the weighbridge and the 3rd to the
supplier/transporter.
1.2 UNLOADING:
Unloading of materials from trucks or hand carts or by hand is with reference to A/T clause. It is either
unloaded by the supplier/transporter or the stores. Depending upon the size/dimension it is either
unloaded manually or with the help of equipment.
All the main Stores have gates functioning with store keeping staff and attendants. The gate asks for
the documents accompanying the truck/hand carts. The documents are sent for verification to the
stores officer in charge of receipt and if it is found that the matter belongs to that store and the
documents ok, then the truck/hand cart is allowed inside for unloading with necessary entries at the
gate. Of course the trucks/hand carts carried materials required to be weighed at the PPC road
weighbridge are sent to Weighment and after gross weight is taken at the weighbridge, the
truck/handcart is allowed for unloading.
Before unloading, the seal (if any), the condition of the containers are checked by the storekeeper in
presence of the supplier/transporter‟s representative, if they are ok, if it is not ok either the seal is
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35. broken/missing, containers damaged, then suitable remarks are made on the challan/consignment note
with the supplier‟s/transporter representative‟s signature.
The concerned Bay store keeper (s) decides as to how and where the materials are to be unloaded. If
heavy consignment, then EOT crane or forklift has to be put on the job of unloading. The storekeeper
has to have a logistic approach while unloading keeping the accessibility, safe up-keep of the material,
self life in case of chemicals, susceptibility of being exposed to nature etc,.
1.3 DAY BOOKING :
After the materials are unloaded at the specified Bay/Yard, Day Booking is immediately taken up. In
case of weighable material it is only after tare weight is taken, Day booking taken place. Day booking
however in all cases is to be done within 24 hours. The details about the consignments are fed in the
IMMS on line. The A/T no., the document no., & date, the challan no., & date, no. of packages, quantity
CENVAT details, Way Bill no. & date are also entered online. Then automatically the Daybook is
allowed in the system and the Day book no. is allotted. The Daybook no. & date is recorded in the
consignment note/ challan/ invoice/Waybill etc. At the end of the day the printout of the entire Daybooks
raised in a section is taken up and put in the register. The D-3 declaration enclosing the EDGP and
Waybills (triplicate copies) are sent to F & A (stores bill) and Purchase respectively.
However incase of large consignment and materials having the storage facility at site, are sent directly
to user Departments for unloading only after raising of Day Book and Direct Delivery Note (DDN) at
Stores.
1.4 INSPECTION:
Inspection is a skilled operation and is done by specialised / trained personnel, proper testing facilities
and methods. The purpose of inspection is to ensure that that the materials delivered are the same as
those ordered, of the right quantity–dimensions, chemical characteristics etc., and are in proper
condition.
The Inspection is of two types like: - 1) Inspection at Stores and 2) Pre-dispatch Inspection. IN
Inspection at Stores; the concerned Storekeeper prepares a check report manually and put-up
physically to Inspection Department. Inspection Department deputes an Inspecting Officer, who
conducts the inspection after checking the documents required by A/T goes through TC / GC /MTC etc,
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36. and checks the material delivered and they are according to the A/T stipulation then the case is passed
with the remarks “Inspected and Accepted” or else the case is rejected with qualifying remarks.
In Pre-dispatch Inspection; when the consignment arrives with pre – dispatch I/C (inspection certificate)
along with other documents, the concerned store-keeper checks dispatched from the loading points
with 45 days of issue of I/C and whether the material is having the suppliers identification the necessary
tag, seal, impression or embossment as mentioned in the I/C. In other words, the material is correlated
with the I/C, challan etc., with regard to the quantity in A/T requirement/ supplier‟s
identification/inspection‟s mark of certification then it is treated as OK and GARN is raised accepting the
material or else is rejected with reasons giving in the remarks column of the GARN.
Sometimes, joint inspection with user department is also conducted as per A/T terms, where lab test is
required. Sample is drawn by inspection in presence of Concerned Storekeeper for testing at Research
& Control Laboratory (RCL). After the test report, materials at inspection, acceptance or rejection GARN
is raised.
For Refractory items, where accounting is made in set, Day-booking is made after completion of supply
against sets. Since set consists of large volume of materials, supplies are made in number of
consignments in duration of some days. Refractory Stores maintains manual register for each such item
separately. All Invoice No., Challan No. with dates, items as per BOM with quantity, A/T no., supplier
are entered in the register. After completion of the supplies of all components of set of material, the
supplier gives the completion certificate (or otherwise) stores raises Day Booking and enters line items
against all such multiple invoice (one invoice with one or more items in one line entry) & one Daybook is
raised for multiple invoices.
In all cases, where Way-bill requirement exists, stores checks the second copy of Way-bill and sends
back to purchase through system generated memo. Submission of D-3 forms for Excisable goods: each
stores submits declaration of D-3 forms DFT copies of EDGP to Finance and Accounts Excise section,
after Day-booking.
Modernization Stores receives Capital, AMR & Revenue items. AMR & Revenue items are
accounted and issued as per normal Stores Procedure against Stores Issue Note. In case of Project
items against a single Catalogue, multiple items are received in phases, as per BOM. The single supply
continues to a longer period till the project is completed. Inspection also carried out challan wise may
be at Firms premises or at Stores by Inspection. If required by the Project, material issued on manual
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37. delivery note, if it is inspected and accepted material before raising GARN but finally GARN is raised
after getting Supply Completion Report from supplier endorsed by Indentor.In these cases, Daybook is
done in Computer (not IMMS), which is developed by C&IT for tracking the material. Day Books are
done in different series in Day Book Tracking System. Finally a single Day Booking is done in IMMS
system, generated against all the consignments and GARN is raised. In the GARN, in remarks column,
all the tracking Day Books are mentioned. For Capital items Manual A/T, where no catalogue numbers
are in A/T, manual Day Book is done against receipt of materials and material issued on manual
delivery note. No Garn is raised. Payment is made against receipted challan and commissioning. The
CSM Store receives materials like Cement, Pipes, Structural materials. Refractory store receives
refractory materials like, Bricks, Lining materials etc., in case of refractory stores, materials are issued
multiple items against single stores requisition and the entire process of multiple issues is manual. After
all issues are complete, Stores Issue Note is generated and Bin Card is posted.
Plant Stores–II (PS-II) mostly handles Chemicals, Ferro alloys, Sulphur etc., PS II has two bays and in
case of materials received in wagons it is directly send to the user department with DDN. In PS II
sieving analysis is done for the purpose of inspection.
Besides the 5 main Stores, materials are received in 2 Sub – Stores (S/S). The SP – I S/S receives
safety shoes. Traffic S/S receives diesel directly but GARN is accounted in PS-II. The receiving
activities take place at Oil Godown, which is under the Central Stores for oil and lubricants under
Consumer Operated Lube Depot (COLD) agreement. Which belongs to IOC, and not in RSP inventory.
It is only after the drawl of material by the user on line, payment is released to the supplier i.e. IOC.
This is a model set up years ago with the help of IOC as an inventory reduction measure. Other than
IOC items the V section of C/S takes the account action of the rest oils and the custody remains with
Oil Godown.
STORAGE , MATERIAL ISSUE AND ACCOUNTING
The materials received from various sources need to be stored properly in Stores for ensuring
the proper upkeep of material till its use, to ensure security and safety of the material, the ease of
retrieval and handling. Material required for use in various departments are collected from Stores
against Stores Issue Note (Requisition Slip ). The various aspects of storage and material issue are
discussed below :
1.0 CUSTODY:
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38. Every custody section of stores has an earmarked area within its bay for receiving all incoming
consignments. Hence, as soon as materials are brought first kept in this place. The custodian in
charge, checks the goods & identify the items with a tag and further follow up action taken for shifting
the materials to its respective locations. While checking the following practices are followed.
a) Check the description of the supplied material given in the documents with physical number of
goods received as delivery.
b) Checking should carry on to ensure where damage or breakage is there.
c) If earlier stock in the Bin Card is there, the materials are to checked and matched with the
existing one.
d) To possibility the materials are to be stored in the original packing as given by the supplier.
e) The seals of the reputed firms need not be un-sealed since it runs a risk the contents of the
material, be damaged or deteriorated.
f) Mention the location on the Bin-Card and all relevant documents.
1.1 POSTING OF GARN:
Custody scrutinizes the GARN as per physical receipt of material, i.e. tally description, quantity, Cat.
No., CTC Code, Unit code, match with existing Stock etc and in case of discrepancy, issue is reverted
to Inspection, Indentor for review/justification and also with physical Bin Card and then posts the
GARN. On posting GARN, it updates Inventory Master & A/T quantity, A/T status. Material can be
drawn / issued only after GARN posting is complete.
1.2 LOCATION:
The location of the stock of each item is maintained in the Bin Card; so that any item can easily be
traced, located for transaction like receipt & issue.
There are two ways of maintaining item locations: Fixed location & Random locations. In the fixed
location system materials are stored in a specific place every time it is received. In Random location
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39. system, items are stored in different locations based on the availability of space and corresponding
location reference is given on the Bin Card against the corresponding stock.
1.3 ISSUE:
The term issue implies the normal supply of materials from Stores to various user departments. Efficient
issue of materials from the Stores is the benchmark to judge the performance of store keeping
functions. Most user departments judge the effectiveness of Stores by the service level of Stores.
The issue of material by Custody is as per requisition, raised on line in Integrated Material Management
System (IMMS) by the user departments. The requisition can be of Capital Items and Revenue Items.
In case of capital items, Finance online clears the Requisition slips. Finance checks ACO code, A/T no.
Also for Cement & structural issued for any project, Finance clears SIN, before issue of Materials.
In case of revenue i.e. centrally procured items & Stock Control items, the requisition is cleared online
by various agencies. After release the Requisition Slip is printed by the respective Indenter /user.
Concerned Department releases quantity for items indented by them (For other Dept‟s stock, clearance
from owner Dept is required), Stock Control for Stock Control items including mechanical and electrical
spares, which were procured earlier by CEC. Safety Dept. for Safety Items, PPC for MRM items, LUHP
for Hydraulic Hoses & Lubes. System checks consumption budget availability before raising requisition.
On availability of budget the requisitions can be printed by Indenter /User and get the hardcopy signed
by an authorized signatory of that department. Each requisition slip is valid for eight days from the date
of generation for physical drawl. More than one requisition can be generated & released even if total
release qty is more than stock availability and the stock is issued on first come first basis on submission
of released requisition slip (hard copy). i.e. generation & release does not assure issue from Stores.
Physical Signature cards at Central Stores are maintained by Administration for Consumables items
and respective bays of Custody for Spares. Blank physical specimens Signature card are issued by
Stores. At other Stores and Sub-Stores Cards are maintained by them and signature verification also is
done by them. C.S. Administration does administrative job related Signature card like issue, change in
name, feeding in system etc. Materials are issued after verification of signature of the person drawing
the item from Stores. At C/S for consumables, Stores Admn person verifies the signature in requisition
slip and for Spares the concerned Bay Store Keeper verifies the specimen signature. Custody cross
checks the signatures in requisition slip and card.
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40. 1.4 BIN CARD POSTING:
Bin Card is the most authenticated record of the custody stores of a particular item as regards
receipts, issue and balance. Hence, it is the mirror of the custodian through which the custodian can
know the location, balance and the history of the material. In all stores of RSP simultaneously physical
bin card as well as on-line system based Bin Card is maintained. On line Bin Card facilitates the
Indentor for quick enquiry of location & balance of the particular item. The Bin Card contains the
complete information of stock number, description, unit, location of the material, source of receipt,
received quantity, issue quantity, document reference, name of the party from whom received or to
whom issued so on.
The requisition slip is sent in duplicate and the Storekeeper checks the requisition slip for
completeness. As per the requisition slip the corresponding bin card to that catalog number is located.
The bin card indicates the location of the material. In IMMS provision has been made to have the
master data of BIN location for one entry only where as in some cases material is kept in more than
one BIN location because of the volume. Material is taken out and issued to department. Requisition
slip is posted and Stores Issue Note (SIN) confirming the issue is generated. This automatically up
dates the Bin card in system. One Copy SIN is handed over to Dept. and the other is retained by
Custody. Physical Bin cards are up dated IMMS Bin Card updates on issue of SIN. The copy of SIN is
deposited at gate for taking out the material from Stores Gate.
1.5 STOCK TRANSFER VOUCHER:
In case of transfer of material from Main Stores to Sub stores, a requisition is received from sub-
stores, which is called Stock Transfer Voucher (STV requisition slip). STV is printed from IMMS on pre-
printed stationery, which has color-coded copies for easy identification, is prepared in IMMS and the
printed document is brought to stores against Requisition Slip received from Dept. For Stock Control
and centrally procured items, STV is cleared on line by different agencies and material is given based
on the printout with signature. In such cases, total quantity of inventory does not change since this is
considered as a change in location. The location code in IMMS is changed. Inventory status changes
as soon as Requisition Slip is posted. STV is posted in Bin Card manually and data base is updated
automatically.
1.6 BOOK TRANSFER VOUCHER:
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41. In some cases, material from one stock number is moved to other stock number (item no.) in
same/multiple location and/or category code, which is known as Book Transfer Voucher (BTV). BTV is
generated online and bin card entry is made in manual as well as system.
1.7 STOCK VERIFICATION:
Stock verification is done on a regular (as per schedule) basis by Stock Verification team under Finance
Department. Stock Ledger is the basis for verification. Stock in the ledger is crosschecked with Physical
Bin Card Stock and actual stock. The verification report is submitted to Finance & Stores for compliance
in case of anomaly. In cases of physical excess / shortages in material, with clearance from Competent
Authorities, Stock Adjustment Voucher (SAV) is prepared by Finance. It is a system-generated printout
and affects the inventory. MIS reports can be generated to see the SAV‟s in a period of time. Based on
instruction from management MM officials also conduct Stock Verification on few occasions.
1.8 STOCK RETURN NOTE (SRN):
In case, the user department collects material on SI note and thereafter discovers that the material is
not the intended material, then the user generates Stock Return Note (SRN) from IMMS and returns the
material to Stores after re-inspection of material. If the material is used, the same cannot be returned.
STV is also prepared for sending materials (Obsolete) from stores to CDY for disposal along with a
memo.
1.9 CYLINDER TRACKING SYSTEM:
In this system, all cylinders received from and dispatched to Suppliers are maintained. The cylinders
lying at various Dept can also be tracked. Cylinders are sometimes provided by vendors based on
Guarantee / Deposit. While raising SI Note by Stores, the IMMS checks with Bin card entry the
inventory level and whether the requested quantity is available or not. If available then available stock
will be issued.
1.10 EMERGENCY ISSUE:
In case of emergency issue of material, mostly beyond normal duty hours, user from the concerned
department submits a Note sheet signed by HOD and gives it to the concerned Emergency Duty Officer
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42. (EDO) in Stores. After checking the note sheet, Stores gives a written memo to CISF and concerned
Store Keeper. Concerned Stores/Bay is opened in presence of CISF and material issued. Transaction
is regularized later through requisition slip and Note-Sheet.
1.11 MISCELLAUNOUS;
Material is issued to suppliers for Recondition items/Conversion items. (Under Inventory Category for
sending the material and thereafter is received back under IC for receipt of re-conditioned material.
Material is issued on loan to sister steel plants. Against dispatch note, excise clearance etc. This is
done in case of urgency.
1.12. PRESERVATION;
There is a time tag between the receipt & actual use of the material. Different materials get deteriorated
to different extent during the storage period based on the nature of the items. So the items need to be
preserved to maintained their useful life. Items need to be initially preserved to avoid deterioration
during the storage and subsequently they need to be verified for any change in their conditions and
corrective action need to be taken to restore the preservation.
The materials which are rusted due to long storage in the open Yard are attended for
preservation by the section of the custodians of stores. Before every monsoon, the materials are re-
painted and stock numbers and other descriptions are again written by paint on the body of the
material. In Central Store there is a provision for preservation i.e. a specific format on which concerned
store keeper (s) of custody, reports the custody officer about the materials ( Bearings or Spares ) which
are getting rusted or supposed to be unusable due to long storage. The custody officer make necessary
arrangements i.e. cleaning or greasing of the components accordingly. In other stores the concerned
store keepers look after this matter.
Besides this a A/C store is there under Central Stores where rubber items such as
Diaphragms, some kinds of V-Belts, PVC tapes, certain chemicals and adhesives, electronic
components and computer spare etc., are stored for proper preservation.
2.0 SUB-STORES:
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43. The materials used by multiple users are usually stored at Central Stores from where all the users get
the material. Where as the material which in particular user department only can be stored in a store
nearer to that department itself. Such stores are Sub-Stores in which all shop specific items and some
regularly used central items are stored.
Most of the major Departments get services through Sub- Stores for important and repetitive items both
Consumables and Spares. Departments getting a Sub-Store facility, give Requisition Slip to Sub-Stores
for Spares and for Consumables the request of requirement is made through entry in the Register kept
at all Sub-Stores. In turn Sub-Stores raises STV‟s against the Requisition Slips for the collection of the
material required by the department and contact the PCC for the transportation of the material. Sub-
Stores representative accompanies the vehicle earmarked for a Sub-stores and collects the material
from Main Stores through STV ( for stores transfer to sub stores ).
Though the main functions of sub-Stores are to collect consumables and spares from main
stores and issue these materials to the user departments to whom the S/S are attached to, but 2 out of
the 5 S/S also performs receiving function also (as mentioned earlier). SP –I S/S receives safety shoes
and issue the same to various departments of plant against requisition slips.
Besides performing the S/S function, Traffic S/S receives Diesel. Diesel is supplied to RSP by
Indian Oil Corporation (IOC),by the MoU between SAIL and IOC. Diesel comes in to the plant by road
tankers from IOC‟s Tata Nagar Depot and unloaded at Traffic S/S. Again the same is issued to
Locomotives of Traffic and Raw Material (T&RM) Department, and other production units against SI
Notes (Requisition Slips). T&RM is the main consumer of Diesel. At Traffic S/S the receipt and issue of
Diesel are done by following the “Diesel receipt and issue Procedure”, and GARN is accounted at PS –
II.
When the road tanker reports at Traffic S/S, the concerned storekeeper checks the challan,
way bill, gate entry no. and the seal of the tanker and note these particulars in the Diesel Receipt
Register. If found OK then the tanker is permitted to take inside of the unloading premises, where the
seal of the tanker is opened and the Dip (quantity in cm) and density of the tanker is measured. If there
is any shortage the same is mentioned in the challan and the signature of the driver is obtained on the
challan. Diesel is stored in 4 Vertical tanks ( T.No. 1 &2 having the capacity of 113650 liters each & T
No. 5 & 6 – 142000 liters, each having the total of 513000 liters.
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44. Before & after unloading of the Diesel the store keeper on duty measures the Dip of the Tank on which
Diesel to be unloaded, and mentions the details i.e. status of seal & Dip, the advised quantity, the
received quantity, shortage quantity (if any) etc., on the challan and raise a STV of the received
quantity and sends it to PS – II, along with the challan and Way Bill for GARN accounting and stock
charging.
The accounting of Diesel issue is done in every 24 hour i.e. 6 am of everyday. The Dip of all the 4 tanks
were measured by the storekeeper on duty and noted in the Dip Register and converted in to quantity
in liters by the help of the conversion chart provided by IOC to get the present stock quantity. The
present stock is again subtracted from the previous days stock to get the previous day‟s issue quantity.
Previously Diesel issue to locomotives were according to the Dip, but since May 2009 after the
amendment of “Diesel Procedures”, all issues are done through flow meter i.e. the opening meter
reading and the closing meter reading in every issue, quantity of issue and time is mentioned in the
Diesel issue register.
Hence Diesel is received in Dip and issue is done in flow meter, which are two different scale of
measurement there arises a differential i.e. (+/-) quantity. This differential is noted everyday and the
same is regularized at the end of the year by making SAV by the approval of the competent authority.
3.0 PLANNING CO-ORDINATION AND CONTROL:
Consuming Departments generally collect their requirement of input materials from Mains Stores .
Certain fast moving consumables and small spares of repetitive nature is serviced through a section
under administrative control of Executive looking after Sub-Stores PCC (Planning Co-ordination and
Control). The planning Co-ordination and Control deals with the transportation of materials from Main
Stores to Sub-Stores/ Departments.
PCC has a group of employees for co-ordination i.e. deployment of vehicle/manpower,
loading/unloading the materials. PCC maintains a manual register for work allocation and allocation of
vehicles for transportation. In the register all details for truck no., department/sub store, quantity etc are
mentioned. In another register details for labors engaged are mentioned against each work requests.
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45. PCC manually checks the register for day‟s requirement vis-a-vis availability of trucks/tempo and
employee reported that day and allocates them the job in order of requests received keeping in mind
the urgent requirement of Dept.
PCC also some time provides vehicle help to Dept for collection of their material against
Requisition slip. In such case manpower help is not given.
Transporters submit Challan for the jobs done in a month in the first week of next month. I/C PCC
verifies the job done by the transporter from their register. The job done is certified by SK I/C and
Officer I/C of PCC. Transporter finally submits the consolidated Bill to Consignment Control Section of
Stores for their scrutiny and clearance.
The materials purchased by a concern may be classified as stock items which are taken into store and
held until required or as direct deliveries to the point of consumption. The control of these materials
which are stock items is known as stock control.
The function of Stock Control is to obtain the maximum stock turnover consistent with the maintenance
of sufficient stocks to meet all requirements. Stock turnover is the ratio which the cost of materials used
per annum bears to the average stock of materials Discussion with regard to the quantity of materials
stocked after may consideration such as :
The availability of capital for the provision of stocks.
The availability of storage space
The cost of storage
Risk of loss due to fall in price, deterioration, obsolescence, theft etc.
Economic order quantities
Delivery delays
For effective control of materials, it is important to decide upon different materials. These levels are
maximum limit or level, minimum limit or level and reorder level or ordering point. Maximum, minimum
and re-order levels are not static. They are varied to suit the changing circumstances. Thus the
alternation takes place if the usage of certain materials is increased or decreased. If the re-order period
changes, or if, in the light of a review of capital available, it is decided that the overall inventory must be
increased or decreased.
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46. Principal functions of Stock Control are :
a) Indenting for AP items – Normal and Capital Repair Requirements. Rate Contract Indent requisition
with Price Variation Clause is also initiated by Stock Control.
b) Monitoring of materials based on requisition and managing release as per priority and consumption.
c) Follow-up of Supplies as per safety stock requirements thru Purchase Inspection etc.
d) Technical Scrutiny / Co-Ordinate technical scrutiny for AP items with concerned User Dept /
Centralized agencies.
e) Raise on line requisition for updating Specs for AP Items through SRG Inventory Management for
ABC, XYZ analysis, Non Moving (5 Years), Deemed Non Moving(4 years), Potential Non Moving ( 3
years), Deemed Obsolete, Obsolete, Deemed Surplus, Surplus declaration along with all approvals, as
per RSP / SAIL guideline g) MIS of Stores is co-ordinated by and maintained at Stock Control.
f) Task Force activities as Convenor for several TF items.
g) Stock Control is member of CPA items where RSP is CPA and also where other Plants are CPA.
CPA requirements are sent to CPA Plant after clearance of ) Stock Control also represents MM during
review meetings held in the Office of ED(W).
h) Stock Control co-ordinates & raises SDA for materials to be sent to other Steel Plant to meet their
urgent requirements.
i) SC clears the Non stock Consumable indents as screening committee member on line.
j) SC co-ordinates for Inventory control of stores & spares.
ADDITIONAL FUNCTIONS :
1. SC is also convener of Task Force items (10 TF groups), such as Minor raw materials, conveyor
belts etc where both AP and non-AP items are involved. Separate Screen for entry of Requirements etc
for Task Force.
2. Stock Control is the Nodal, Convenor & Member for Indents of Consumable items.
3. Stock control focuses on maintaining Optimum Inventory for stock items, Non-stock
consumable items & Task Force items , where S/C is the Convenor. Stock control focuses on “ No
stock out situation” for Stock items.
4. Various review period policies like 6/12/18 months are maintained depending upon the lead
time and rate of consumption. Stocks are reviewed periodically as per above policies and indents are
raised as and when required. SC updates Re-order level, Max. level of items, Safety stock level for
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47. items once in a year / or as required, depending on External procurement lead time of the items &
IMMS is updated. Re-order level-indenting policy is followed & indents are raised, when stock & dues-in
level falls below ROL. The items of a particular class (say 011 electricals) are divided into some groups
of similar nature of item, from procurement angle. (Source vendor & product code combination ). While
indenting, class & group are reviewed and system indicates how much to indent on the basis of P/S &
Dues-in & consumption pattern.
5. Requisition for material issue (Stores Requisition) is received online from different units /
plants/ by Sub Stores (document is STV) and quantity is checked w.r.t their consumption / any
reservation & released online by SC Store keepers / executives. While releasing qty., the IMMS screen
is displayed for the item (stock, consumption for last 4 years etc. & other related screen are available to
track pending indent & order, delivery etc.) & finally Qty. released. Qty. released may be same as
requisition qty. or less as per the decision taken by SC on the basis of the information, as viewed from
system. Stock control on regular basis takes out MIS reports for various items based on location,
department for ABC, XYZ analysis & Non-moving analysis. Various activities like declaration of
obsolete item after issue of notice to various agencies (including other Steel Plants) and departments
etc and with due approvals from CA is done by SC.
6. SC is also convener of Task Force items (10 TF groups), such as Minor raw materials,
conveyor belts etc where both AP and non-AP items are involved. Separate Screen for entry of
Requirements etc for Task Force.
INVENTORY MANAGEMENT & POLICY GUIDE LINES FOR STORE KEEPING
1.0 INVENTORY MANAGEMENT
For effective Inventory Management, control is exercised on all activities of Materials
Management like placement of order, receipt, storage & issues.
RAISING INDENT :
Indents for procurement of stores and spares raised by the authorized executive of
department subject to availability of budget with the approval of competent authority of the
department/office. The indents are raised in prescribed format . Past performance of vendors, who
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48. have supplied same or similar items, should be indicated in the format while raising the indent. In case
there is any deviation/complaint with reference to the quality parameters, it may be clearly specified in
the indent.
ORDER PLACEMENT :
Wherever feasible, staggered deliveries must be resorted to, keeping in view the requirements of
production units, to have proper control on Inventory.
For items having limited shelf life, the delivery schedule (time as well as quantity) should take care of
shelf life. (At least 80% of the shelf-life will be mandatory at the time of receipt stage).
For class „A‟ & „X‟ items, the quantity to be ordered is to be reviewed again before placement of order,
keeping in mind the future production plan, repair / replacement plan, stock at stores / shop floor,
pending indents, dues in etc.
For orders having overdue delivery, confirmation from head of user department may be obtained before
giving clearance for delivery.
Simplified Procedure to be formulated by CMMG and implemented for procurement of „Low Value
Items‟ (for indent value up to Rs.25,000/- ) in order to avoid „Stock-Out‟ and improve „Service Level‟.
Cancellation of pending Orders. In case a supplier, to whom an order has been placed, failed to
supply, appropriate action may be taken as indicated in clause 18 of PP2K. Where deliveries have
overshot the stipulated due date of the A/T and material has not been received, such orders will be
reviewed on regular basis and if required, orders pending for 2 years and more would be cancelled
after:
a) Obtaining a certificate from the indenter that these materials will not be required at least for coming
two years.
b) Ensuring that these materials are not required to be returned, if borrowed.
c) Ensuring that there are no requirement pending with Purchase Department for such materials.
d) Ensuring that no advance payment is pending with the supplier.
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49. e) Taking approval of Head of M.M. Department.
• Pending orders of stores & spares of those Equipment, which are under phasing out /
replacement / modification are to be identified and cancelled.
• Preference is be given to products manufactured by SAIL plants / units / subsidiaries as compared to
procurement from outside.
RECEIPTS:
For Receipt & Issue generally the Policy Guide Lines for Stores Management and Stores manuals of
individual Plants / Units are to be followed)
• Timely Delivery of items are be ensured.
• Receipts of the materials at stores are be immediately communicate to the users.
ISSUE / CONSUMPTION:
• PERIODIC REVIEW OF „A‟ & „X‟ CLASS ITEMS.
Each Plant / Unit shall institute a system for periodic review and monitoring of supplies and stock of
all „A‟ and all ”X” class items.
• DEVELOPMENT OF DATABASE FOR CAPITAL REPAIR ITEMS.
M. M. Department of each Plant / Unit shall develop and maintain databases for the bills of materials,
items, specification and list of vendors for the Capital Repair Jobs / High value Critical Items, and
utilize the same for the purpose of timely execution of future repair jobs/procurement.
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50. • CONTINUOUS AND CLOSE INTERACTION BETWEEN M.M. DEPARTMENT AND INDENTERS.
M.M. Department of each Plant Unit shall develop a system of keeping the indenters informed on
regular basis about the status of indent, delivery, receipt and stock at stores.
• Indenters shall be intimated if the materials are not drawn within three months of receipt. Drawl plan
may be asked for and reviewed periodically.
FAST MOVING AND SLOW MOVING ITEMS.
• Fast moving inventory is monitored closely in order to avoid stock out as well to control consumption.
• Slow moving / deemed non-moving items is reviewed periodically or otherwise the same may lead to
“non-moving”.
• Pending orders / Indents of slow moving items is reviewed annually in consultation with the indenting.
2.0 ABC & XYZ ANALYSIS FOR INVENTORY MANAGEMENT:
Stores & Spares items as reported at the beginning of the financial year, in the stock ledger, shall be
considered for analysis and for arriving at „ABC‟ & „XYZ‟ Categorization. Items like shop floor inventory,
store-in-transit, provisions and minor raw materials will be excluded while categorizing the items as
„ABC‟ & „XYZ‟.
• ABC Categorization:
Items which constitute top 70% ( seventy percent) of total consumption ( of stores & spares)
value, when arrange in descending order of consumption value will be termed as „A‟ class items. (
Consumption values will be based on that of previous financial year) Next 20% ( twenty percent) will be
termed as „B‟ class and the rest as „C‟ class items.
• XYZ Categorization:
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51. Items which constitute top 70% (seventy percent) of total stock value (of stores & spares)
holding, when arranged in the descending order of stock holding value, will be termed as „X‟ items. Next
20% (twenty percent) will be termed as „Y‟ and rest as „Z‟ category items.
• Inventory levels of all “A” & all “X” category items shall be monitored rigorously preferably on monthly
basis and feedback shall be given to HoMM & ED(W).
• Items of „X‟ category not consumed within three months of receipt shall be reported to HOD, MM. &
ED (W).
• Interplant Common Database for "A" and "X" items shall be established and shall be shared by the
Plants/Units. CMMG will co-ordinate and monitor this.
3.0 NORMS FOR INVENTORY HOLDING:
• Norms Of stores & spares Inventory Holding shall be kept within 5 (five) months in terms of
number of months consumption (for the time being). This norm to be lowered after wards.
• Category wise norms (i.e. General Stores, Spares, Rolls, Refractories, Ingot Mould, Bottom
Plates and others) shall be worked out by each Plant / Unit in such a manner that the overall inventory
does not exceed 5 (five) months consumption.
• Each Plant / Unit shall monitor the receipt and issues and will ensure that monthly cumulative
average of the ratio of receipt to issue does not exceed 0.9 for all „A‟ class items.
• For Automatic Procurement (AP) Items, individual Plant / Unit shall fix up Minimum Level,
Safety Level, Maximum Level and Re- Order Level. The norm for inventory of AP items &
consumables shall not exceed 3 months consumption.
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52. RECONDITIONING OF SPARES & EQUIPMENT:
Each plant shall fix the targets for identifying spares & equipment, which can be reconditioned
instead of fresh procurement. Separate allocation of funds may be made for the reconditioning activity.
A centralized cell / agency in each plant under Head of Maintaince. shall be responsible for this
activity. Plant to have a time based maintenance system for replacement and reconditioning of high
value spares. Item flow to be traced through the computerized MM system with suitable stores
valuation / pricing for the same.
INSURANCE INVENTORY:
a) DEFINITION OF INSURANCE INVENTORY.
An Item shall be considered as an Insurance Inventory
• Failure of which will result in stoppage of production process not only of the concerned shop but will
also affect the preceding & succeeding shops.
• Which normally does not fail but whose life expectancy is uncertain.
• Which is generally a tailor made item. If it is standard item, then not readily available.
• Which is identified / recommended by the Original Equipment Manufacturer (OEM) as Insurance item
at the time of procurement. Insurance spares shall be declared at time of procurement of Original
equipment. User department while recommending an item as Insurance, shall ensure the fulfillment of
any / all the above criteria. `Declaration of insurance spares shall be done with the approval of
Executive Director, (Works).Worthiness or physical condition of the insurance items may be examined
every year by each user. Insurance items in store may be installed in the plant within 5 to 10 years by
the user and the old one may be repaired / re-conditioned and kept in stores for future use.
• PAYMENT MODULE (FINANCE)
Interconnection of material management system with other available computer system should be done
within the financial year 2003-04.
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