Ginni stands for gold in india.

Ginni filaments is one of the leading integrated manufacturers of cotton

yarn and unprocessed knit fabrics and knit garments in india.
The company is also starting a plant to manufacture spunlace nonwoven
fabrics for the first time in india in the last quarter of 2006 and has already
launched converted products in the same arena.

Ginni Filaments have five of the above :

Spinning
Weaving
Knitting
Dyeing
Finishing

 Business
Non woven
Consumer products

Objective, Scope and Philosophy

The basic objective of Purchase Management is to ensure Right Quality of material at
the right place and time from the right source at the Right Price.
Each of these objectives has its own significance and merits utmost knowledge, care,
diligence, focused attention and wisdom.
To avoid slippages in external and internal lead-time it needs both expertise and
experience.
The dynamics of the fast changing scenario in market conditions e.g. liberalized
economy, new technology/ process/ product and fast obsolescence need to be
understood and appreciated not only by purchase executives but also by the
executive of the user departments.

Evaluation of Purchase
Performance
The various activities in the purchase function
are evaluated and monitored periodically for
economy, efficiency and effectively. The
parameters for such evaluation are:
1. Adherence to lead-time
2. Extent of rejection
3. Budget compliance

Adherence to Lead Time

Against each purchase order the supplies are affected as

per the declared lead-time with a cushion of (+) 10%.
Incase the actual lead time differs by more than 10% from
the declared lead time then the total lead time slippage is
taken into account for rating calculation.
RATING = Declared Lead Time Slippage
Declared Lead Time

Extent of Rejection

Ratings are also provided to the vendors if their material is rejected

and for how many times the rejection has occurred. The rating is
given as under:
RATING = Value of Materials Supplied Value of Materials Rejected
Value of Material Supplied

Using Secondary Data such as Internet, Magazines & Newspapers.

It requires less cost, time & effort than primary data.

Data sources
A. Published Sources
1. Govt. Publications
2. Semi Govt. Publications
3. Reports of Committee and Commissions
4. Private Publications
5. Newspapers and Magazines
6. Research Scholars
B. Unpublished Source

Type of Research
Research is descriptive one.
Data are collected through secondary sources.
Information was taken from GINNI FILAMENTS
magazines, booklets, its website and the
intranet of the GINNI FILAMENTS. etc.
Informal interview of the finance and
operational department executives was
another way of collecting data.

Operating Profit & OPM

Operating Profit gives an indication of the current operational profitability of the business
and allows a comparison of profitability between different companies after removing out
expenses that can obscure how the company is really performing.

Applying Z - test

Applying t - test

TOP VENDOR RATING

PARAMETER VENDOR RATING

 Every supplier in the GINNI filamentsis aware of all the legal implications entering in
the contract with the GINNI FILAMENTS.
Any negotiation involving legal aspects would necessarily mean associating the
company legal advisor, but it is essential that purchaser should also have basic
knowledge of commercial and mercantile law.
ABC classification of the items, which are as follows:
A class items: items having annual consumption over rs. 1 lakh are
classified as A class.
B class items: items having annual consumption over rs. 10,000/- and
up to rs. 1 lakh are classified as B class.
C
class items: items have annual consumption up to rs. 10,000 are
classified as C class.

RECOMMENDATIONS AND SUGGESTIONS:

To make the system transparent, there should be open system applied in whole of the
purchase process. It would help to avoid the biased ness.
Loyal suppliers of the GINNI FILAMENTSshould be given more chances for supply in the
GINNI FILAMENTS.
Purchase Committee should consider efficient purchasing policy for enhancing the
productivity of the organization.
There should be a proper back up for the supply if there is a default by the loyal supplier.
From the basis of Analysis, we shall suggest that who are the loyal suppliers with the
outstanding and very good ratings should provide more than 30 days credit period.

LIMITATIONS
It was quenching time in the GINNI
FILAMENTS that use to deal in and
some employee could not give proper
attention towards our queries.
Some employee did not cooperate as
they thought; it is just wastage of time

There was no way to assess the

reliability of the employees. What ever
they said had to be assumed to be
truth.
Category wise search for employee was
a terrific job.