A STUDY ON MATERIAL

MANAGEMENT
OF
INTEGRAL COACH FACTORY,
LOCATED AT CHENNAI.

Submitted by
A.SUDHAN
Register No: 11309631046
 Need for material management
The raw materials can be used in an effective
manner.
The wastage of materials can be reduced.
It would help in completion of projects in
short span of time.
The specialized person can be appointed to the
optimum machinery.
The dumping of materials can be reduced.
 Scope for material management
Primary objective:-

 To study in detail about the materials utilized and how they are
maintained in an organization.
 
Secondary objective:-
 
 To focus on optimum use of resource available.
 To study on purchase of raw materials in ICF.
 To examine whether to make or buy the headstocks.
 To forecast the dispatch of materials for the future.
 To dispose the scraps in the industry.
 SCOPE AND SIGNIFICANCE OF THE
STUDY
 
 
The main purpose of the study is to study about the material management
techniques used in an organization and to deal with reducing the cost of the
materials.
 
To substantiate, this study is focused to
Reducing the cost of materials
Dispatch of coaches with regards to time period
Dispose scraps after the production process
To differentiate the materials based on the cost.
 
The study intended to analyze the materials utilized in an organization, the cost
involved, the storage process, the dispatch of goods and the disposal of scraps.
  Features of ICF
 
 Today the coach factory produces more than 1600
coaches of more than 170 varieties.
 Nearly 1336 coaches are manufactured every year,
and 6 coaches are manufactured per day.
 It employs about 13,000 persons.
 The factory is based on the job shop model of
production system.
 About six coaches are produced in a day.
 REVIEW OF LITERATURE
 ICF is an ISO 9001 certified organization, manufacturing different types of coaching
stock for the Indian Railways, and other customers. The raw materials and
components required for the manufacture of coaches is procured by the Materials
Management Department, through tenders. The Department is headed by the
Controller of Stores. In the year 2008-09, the total value of procurement by ICF was
in the region of Rs.1139 crores.
 
 
 Normally all tenders are issued as e-tenders in IREPS website. The Bulletin Tenders
are issued to all registered suppliers of ICF. For registration with ICF, the suppliers
are required to furnish the required information in the prescribed form, available
with the Registration Section of the office of the Controller of Stores/ICF. The
suppliers meeting the conditions mentioned in the form are registered for the item
groups applied for. Initial registration is for two years and on satisfactory
performance, the registration is made permanent.
 Materials management is an important element in project planning and control.
Materials represent a major expense in construction, so minimizing procurement or
purchase costs presents important opportunities for reducing costs. Poor materials
management can also result in large and avoidable costs during construction.
• First, if materials are purchased early, capital may be tied up and interest charges incurred
on the excess inventory of materials. Even worse, materials may deteriorate during
storage or be stolen unless special care is taken. For example, electrical equipment often
must be stored in waterproof locations. Second, delays and extra expenses may be
incurred if materials required for particular activities are not available. Accordingly,
insuring a timely flow of material is an important concern of project managers.
• Materials management is not just a concern during the monitoring stage in which
construction is taking place. Decisions about material procurement may also be required
during the initial planning and scheduling stages. For example, activities can be inserted in
the project schedule to represent purchasing of major items such as elevators for
buildings. The availability of materials may greatly influence the schedule in projects with
a fast track or very tight time schedule: sufficient time for obtaining the necessary
materials must be allowed. In some case, more expensive suppliers or shippers may be
employed to save time.
• Materials management is also a problem at the organization level if central purchasing
and inventory control is used for standard items. In this case, the various projects
undertaken by the organization would present requests to the central purchasing group.
In turn, this group would maintain inventories of standard items to reduce the delay in
providing material or to obtain lower costs due to bulk purchasing. This organizational
materials management problem is analogous to inventory control in any organization
facing continuing demand for particular items.
• Materials ordering problems lend themselves particularly well to
computer based systems to insure the consistency and
completeness of the purchasing process. In the manufacturing
realm, the use of automated materials requirements planning
systems is common. In these systems, the master production
schedule, inventory records and product component lists are
merged to determine what items must be ordered, when they
should be ordered, and how much of each item should be ordered
in each time period. The heart of these calculations is simple
arithmetic: the projected demand for each material item in each
period is subtracted from the available inventory. When the
inventory becomes too low, a new order is recommended. For items
that are non-standard or not kept in inventory, the calculation is
even simpler since no inventory must be considered. With a
materials requirement system, much of the detailed record keeping
is automated and project managers are alerted to purchasing
requirements.
 RESEARCH METHODOLOGY
RESEARCH DESIGN:
The study is intended to analyze the
material management in the premises of integral coach factory.
An attempt is made to study in depth about the material
requirement in a factory and how to reduce the cost of
materials. The research design selected for study is analytical in
nature.
ANALYTICAL RESEARCH:
The purpose of using analytical type of
research is to provide accurate and valid description of variables
involved in the research as the data’s are already procured.
Secondary Data Collection Method:
The secondary data are those which have already collected and
stored. Secondary data easily get those secondary data from
records, journals, annual reports of the company etc. It will save the
time, money and efforts to collect the data. Secondary data also
made available through trade magazines, balance sheets, books etc.
Secondary data collected through five years annual report of the
company, supported by various books and internet sites. The data
collection was aimed at study of material management of the
company.

Project is based on
  Annual report of Integral coach factory 2005-06
  Annual report of Integral coach factory 2006-07
  Annual report of Integral coach factory 2007-08
  Annual report of Integral coach factory. 2008-09
AREA OF STUDY:
The research was
collected from the premises of ICF especially from
the material planning office and the headstock shed
in ICF job shop.

DATA COLLECTION MODEL:

As the survey is to find out
purely the aspects regarding material management
data’s are collected from secondary method of data
collection. The researcher with the help of the
trainer collected the data’s from ICF.
 LIMITATION OF THE STUDY:

• Area of the study for material management is

confined to ICF perambur.
• Time factor can be considered as a main
limitation.
• Findings of the research may change due to
time, cost of materials, age condition of
economy etc.
• Inadequate data found in the premises.