FIELD TRAINING REPORT

AT
N SPARKLES MODULAR
Submitted in partial fulfilment of the requirement for
The award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
(BUSINESS PROCESS MANAGEMENT)
Submitted By
RAJESHWRI PRIYA S.G
(REG.NO.15BPM033)
Under the Guidance of
Mrs.
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
(BUSINESS PROCESS MANAGEMENT)

JULY
2017
DEPARTMENT OF BUSINESS ADMINISTRATION
(BUSINESS PROCESS MANAGEMENT)
P.S.G.R.KRISHNAMMAL COLLEGE FOR WOMEN
(College with Excellence)
(An Autonomous Institution-Affiliated To Bharathiar University)
(Reaccredited With A Grade by NAAC, an ISO 9001:2008 Certified Institution)
Peelamedu, Coimbatore 641 004.

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CHAPTER TITLES PAGE NO.

I INTRODUCTION 1

II PROFILE OF THE COMPANY 2

III BUSINESS DESCRIPTION AND COMPANY INFORMATION 3

PRODUCTION PLANT OF N SPARKLES MODULAR

IV 7

V PRODUCTION PROCESS OF N SPARKLES MODULAR 12

VI OBJECTIVES OF THE STUDY 15

VII REVIEW OF LITERATURE 16

VIII INVENTORY CONTROL BY USING ABC ANALYSIS 17

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IX DATA ANALYSIS & INTERPRETATION

X SUGGESTIONS 20

X1 CONCLUSION 21

CHAPTER 1

2
 1.1 INTRODUCTION

Every organization needs inventory for smooth running of its activities. It serves as a
link between production and distribution processes. The investment in inventories constitutes
the most significant part of current assets/working capital in most of the undertakings. Thus,
it is very essential to have proper control and management of inventories.

The purpose of inventory management is essential in N Sparkles Modular is to ensure

availability of raw materials in sufficient quantity as and when required and also to minimize
investment in inventories.

So, I took this Inventory Management as a topic for my internship project,

to give findings and suggestions by analysing ABC control technique.

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 1.2 PROFILE OF THE COMPANY

N SPARKLES MODULAR is a furniture factory which was registered in 2006 and owned
and operated by S.BALAMURUGAN and S.SUBASH NARMAESHVER. Company was
created to specialise on manufacturing of office and home furniture.

N Sparkles Modular current operations are to manufacture a furniture and selling to clients.
Factory is currently operating from a manufacturing unit about 12000 square feet having
17 employees in Tirupur, which has more space for production, storage and office space.

Sparkles marketing is made up of mainly private sector departments and the public sector to a
lesser extent. Company is competing against generalised large furniture manufacturers, cheap
imported furniture distributors, and the mainstream merchandise in the major furniture
channels and office supply stores. The market is large and favours procurement.

Sparkles also make complementary pieces to fill out the office suite, including file cabinets,
system tables, and workstation. We also make custom designs to fit exact measurements.

Company is maintain relationships with a high quality plywood company to supply the high
quality plywood which are used for manufacturing Furniture in N Sparkles Modular.
There are also other reputable mica and hardware suppliers who can supply us with raw
materials for our production. Company has number of specialty manufacturers for furniture
fittings, drawer accessories, glass, shelving accessories, and related purchases as their
suppliers.

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 1.2 COMPANY PROFILE
Company name : N Sparkles Modular

Country/Region : India/ Tamilnadu

Business type : Manufacturing

Year established : 2006

No. of employees : 18

Production capacity : 20 to 30 Furniture

Main product : Cupboards, Tables and Workstation

Address : kalipalayam

Peruthulavu road, Tirupur

Email : nsparklesmodular@gmail.com

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 3. Business Description and Company Information

3.1 Mission

N Sparkles modular Is Furniture factory forms pleasant, productive office environments with
well-designed furniture that incorporates new technology into the classic office mode, in
which real people can work happily. Company focuses to the look and feel of good wood and
fine furniture as well as to high-powered personal computing. Sparkles always provide the
best possible value to our customers who care about quality home furniture, we always wants
to create and nurture a healthy, creative, respectful, and fun office and workshop
environment, in which our employees are fairly compensated and encouraged to respect the
customer and the quality of the product we produce. Sparkles seek fair and responsible profit,
enough to keep the company financially healthy for the long term.

3.2Objectives

3.2.1 Short Term Objectives-Within 12 months

Secure funding for working capital
Register onto the data base of all government and public sector entities

3.2.2 Medium Term Objectives-between 12 months and 36

months
Pay off the working capital

3.2.3 Long Term Objectives-beyond 36 months

Repay all the loan commitments

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 3.3Keys to Success

Companys keys to success are as follows

Uncompromising commitment to the quality of the end product,
Use of quality raw materials in all our products,
Quality workmanship,
Quality design,
Quality of end result.
As we increase our sales, we shall be able to buy at better prices, because of higher
volumes.

3.4Management

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 3.4.1 Organizational Structure

Managing partners

Accountant

production
operation manager store incharge
manager

carpenter logestic team

edge bander helper

marketing
fitter
executive

frame maker

machine operator

carpenter

carver

upholsterer

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 3.5THE MANAGEMENT TEAM PROCESS:

DELIVERING
UNDERSTANDING
Sales
Customer /Markets
Service
Marketing techniques
Network Planning

CUSTOMER

SUPPORTING
servicing
Rework
Exchange

Managing Member:

Roles and 1) Business Development

Responsibility Developing new markets other than Tirupur.
New Designs researching and creating new models of
furniture

2) Management
Strategic plan in coordination with staff and senior
managers
Business plan for each unit

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 3) Finance
Reporting monthly sales to the partners, explaining any
variations and defining actions to be taken if targets not
met.
Review increases in costs of any major items of raw
materials, component or labour service charges.

Management Team Gaps

Company depend on their professionals, their accountant and their solicitor, for some key
management help. Company don't have a strong background in finance or business
management, As N sparkles modular needs to develop more manufacturing technique, more
mass production.

Wages

Salaries are generally in line with market pay for the Coimbatore area in our industry, however
Coimbatore is on average a higher wage location than all other area.

4. PRODUCTION PLANT OF N SPARKLES MODULAR

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4.1 FACTORY LAYOUT:

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 STORAGE OF RAW MATERIEALS

12
 CUTTING AREA

CARVING MEACHINE AREA

13
 EDGE BANDING AREA

FITTING AREA

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WAREHOUSE AREA FOR FINISHED GOODS

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Product layout is employed in cutting wooden boards, edge banding, fitting and polishing
where in the facilities are carried out depending on the products,

Each and every products like Cupboards, File racks, Tables, Modular kitchen, Tv stand,
Wall panelling, Workstation etc.. are manufactured in this factory through the following
process

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FINISHED ITEMS
Modular kitchen

OFFICE CABINS

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WOODEN CUPBOARDS

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 5. PRODUCTION PROCESS OF N SPARKLES MODULAR

Manufacturing process of furniture in N Sparkles Modular categorised

below,

5.1 ASSEMBLY PROCESS:

The boards arrives at the first section and cutting is done by panel saw.
Its then processed at spindle moulder for getting different shapes.
Micas are pasted to the boards and allowed for drying for 12hrs.
Edges are finished with the help of automatic edge banding machine and manual edge
banding for low work.
Carpenters marks the measurements on the board parts for fitting
Each parts are distributed to the fitters for assembling one by one.
Another group of fitters adds accessories(handles, hinges, locks etc.) to the furniture
Polishing work is carried out to give finishes to the furniture.
Finally the supervisor inspects for correction and goes for packing.

5.2 STAGES OF MANUFATURING:

Stage 1: CUTTING
Stage 2: CARVING
Stage 3: MICA PASTING
Stage 4: EDGE BANDING
Stage 5: MARKING MEASUREMENTS
Stage 6: ASSEMBLING
Stage 7: FITTING ACCESSORIES
Stage 8: POLISHING
Stage 9: FINAL INSPECTION
Stage 10: PACKING
Stage 11: TRANSPORTING

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5.3 DIFFERENT CATEGORIES OF WORKER

Carpenters

The Carpenters processes wooden board products into furniture components, using a wide
range of machinery. Their main function is to set up, adjust, operate and maintain machines
like panel saw and spindle moulder. The Carpenters will cut the wooden boards and makes
different shapes according to design specifications.

Fitters

The Fitters receive the components from the wood machinist and assemble the piece of
furniture. They add the finishing touches such as doors, drawers and locks.

The Fitters makers involve both handwork and some hand machines for drilling, sanding,
marking measurements and finally fits all the components and accessories to the furniture.

Frame-maker

The Frame maker work will be very similar in most respects to that of the Fitters, with a
greater work towards frames, rather than hinges, doors and fitting accessories.

Machine operator

The main task of machine operator is to runs the automated machines like
Spindle moulder and
Carving machine

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Carver

The shaping and decorative work applied to furniture is done by using carving machines and
by hand. Carver uses a custom made styles, techniques and methods.

Upholsterer

Upholsterer job is to apply all the soft finishes to the various pieces of furniture. The main
materials they use are fabrics, foams and various types of threading.

Edge banding operator

Operator job is to control automatic edge banding machine for pasting beading (both wooden
and pvc) on all corners of shaped boards

Helpers

Helpers do stuffs like internal mobility of raw material and goods from one work area to
another. They uses fork lifters for transferring materials, and some of them are assigned for
cleaning, packing, labelling, loading etc.

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 6. OBJECTIVES OF THE STUDY

6.1 PRIMARY OBJECTIVE

To analyse the efficiency of Inventory N SPARKLES MODULAR.

6.2 SECONDARY OBJECTIVE

To identify optimum level of inventory which minimizes the cost.

To identify the stock level for various components.
To classify the various components based on its value and movements.
To identify inventory requirement of the company for the next year.

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 7. REVIEW OF LITERATURE
7.1 MEANING OF INVENTORY

Inventory generally refers to the materials in stock. It is also called the idle resource
of a company. Inventories represent those items which are either stocked for sale or they are
in the process of manufacturing or they are in the form of materials which are yet to be
utilized.

7.2 INVENTORY CONTROL

The main objective of inventory control is to achieve maximum efficiency in

production & sales with minimum investment in inventory.

7.3 BENEFITS OF INVENTORY CONTROL

The benefits of inventory control are:

Improvement in customers relationship because of the timely delivery of

goods and services.
Smooth and uninterrupted production and hence, no stock out.
Efficient utilization of working capital.

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 8. INVENTORY CONTROL BY USING ABC ANALYSIS

MEANING:

The ABC system is a widely used classification technique to identify various items of
inventory for purposes of inventory control. On the basis of unit cost involved, the various
items are classified into 3 categories:

A, consisting of items with the large investment,

C, with relatively small investments but fairly large number of items and
B, which stands mid-way between category A & C.
Category A needs the most rigorous control, C requires minimum attention and B
deserves less attention than A but more than C.

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 B Class(Moderate Value)

A Class(High Value) Hinges

Plywood Runners
Particle board Locks
Mica Handles
Wooden beading Lights
Glue Hooks
Paints
Glass

C Class (Low Value)

Screw
Pins
Bush
Knobs
Nails
Hooks
Spring
Washer
Aluminium channels

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 Table 8.1 ABC Analysis

Categories Total No. Items in Class Percentage

A 7 45
B 6 35
C 9 20
Total 17 100

9. DATA ANALYSIS & INTERPRETATION

The above table shows the classification of various components as A, B & C classes
using ABC analysis techniques based on unit value.
From the classification, A classes are those whose unit value is more than Rs.2000 and
constitutes 45% of total components.
B classes are those whose unit value is between Rs.250-1500 constitutes 35% of total
components and
C classes are those whose unit value is less than Rs.25 constitutes 20% of total
components.
It is good that the company maintains its inventories based on its value using
controlling techniques.

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 10. SUGGESTIONS

The company is required to maintain stock for its components in order to avoid stock-
out conditions & help in continuous production flow.

Under ABC analysis, the management must have more control on A than B&C,
because A class constitutes more (45%) of higher values. There should be tight control
exercised on stock levels, to avoid deterioration. This is done through maintaining low safety
stock, continuous check on schedules & ordered frequently in inventories, in order to avoid
over investment of working capital.

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 11. CONCLUSION

A better inventory management will surely be helpful in solving the problems

the company is facing with respect to inventory and will pave way for reducing the huge
investment or blocking of money in inventory. From the analysis we can conclude that there
should be tight control exercised on stock levels based on ABC analysis & maintain high
percentage in fast moving items in inventories.

Proper implement and follow the norms and techniques of inventory management,
they can enhance the profit with minimum cost.

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