06-03-2013, 04:03 PM
Studying the Inventory of Tecumseh Products India private Ltd.
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INTRODUCTION:
Every enterprise needs inventory for smooth running of its activities. It serves as a link between the production and distribution process. The greater a time lag, the higher the requirement of inventory the unforeseen fluctuation of inventory demand and supply of goods, fluctuating inventory prices, necessitate the need for inventory management. The investment inventory constitutes the most significant part of the current assets inventory of the under taking. Thus it is very essential to have a proper control and management of inventory.
MEANING OF INVENTORY MANAGEMENT
Inventory management consists of maintaining for a given financial investment an adequate of something in order to meet and accepted pattern of demand. Inventory considers control over costs of inventory on one hand an handle the size of inventory on other hand. Controlling investments in inventories constitute crucial part in current assets.
INDUSTRY PROFILE
Indian electronics and IT plays a major role in both the production and exports. During the year (1992-97), the electronics industry has achieved an annual growth of 20% in production and over 40% in exports.
The production in the year (1997-2002) is targeted at about Rs.380 billion with a growth rate of 37% and exports at about Rs.490 billion with a growth rate of 52%. Overall production is based on Indian Electronics industry which is widely distributed and there are more than 3500 units engaged in the electronic production. Which include in 13 central public sector units with 29 manufacturing establishments, 65 units in state public sectors, 600 units in organized private sector and more than 2800 units in small scale sectors.
Electronics has made life simple. All of us in some form or other, directly or indirectly are using electronics goods. Demand for electronics goods has led to the establishment of many manufactures and development is on day-to-day basis. The thermal, hydro, nuclear plants and power transmission industries play a vital role for the establishment of heavy electronics industry.
ABOUT AIR COMPRESSORS:
Air compressors provide air at pressures higher than atmospheric. Refrigeration compressors and air conditioning compressors are designed specifically for air conditioning, heat pumping, and refrigeration enclosure air conditioners remove the heat generated by electronic devices from the inside of cabinets or enclosures.
Industrial air filters:
It reduces the number of particles in the air that passes through them. Breathing and ventilation air systems provide reliable and safe air supply sources to workers in hazardous industrial environments. Compressed air-purgers and vortex coolers are used for spot heating or cooling applications. Industrial air filters reduce the number of particles in the air that passes through them. Air filtration supplies the means to reduce the level of particulates in the air to a cleanliness standard required by any definition of “air conditioning”. It extends from the simple task of preventing lint and other debris from plugging heating/ cooling coils to removing particles as small as 0.1 micron which could cause a short circuit on microchips.
COMPANY PROFILE TECUMSEH
Mr. Ray Herrick a former employee of ford motor company started the company in 1937 the company went into public with an offering of 25000 shares. Mr. Ray Herrick has passed away in 1973 but vision lived through his son ken the current chairman of the board and his grandson Mr. Todd W Herrick who has been president and CEO since 1984 Tecumseh India is a preferred supplier to world who of the Ac & Industry in India and in Middle East SAARC Countries
Tecumseh products company is a US $ 2 billion cooling giant having a global presence and a global vision with 24 manufacturing locations in 4 continents a cross 100 countries employing over 20000 people it is the world largest independent compressors manufacturing company with 10% market share of the global 150 million units a year compressors Market.
WHAT IS INVENTORY
Despite its importance to the supply chain, inventory is not universally well understood. It is variously characterized, both positively and negatively, as an economic asset to a non-income-producing use of capital funds. Only when considered in light of all quality, client service and economic factors—from the viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory become clear. No matter the viewpoint, effective inventory management is essential to supply chain competitiveness.
Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. In other words, Inventory is a quantity or store of goods that is held for some purpose or use (the term may also be used as a verb, meaning to take inventory or to count all goods held in inventory). Inventory may be kept "in-house," meaning on the premises or nearby for immediate use; or it may be held in a distant warehouse or distribution center for future use. With the exception of firms utilizing just-in-time methods, more often than not, the term "inventory" implies a stored quantity of goods that exceeds what is needed for the firm to function at the current time (e.g., within the next few hours).
CONTROLLING INVENTORY
Inventory management, or inventory control, is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. There are several schools of thought that view inventory and its function differently. These will be addressed later, but first we present a foundation to facilitate the reader's understanding of inventory and its function. Firms that carry hundreds or even thousands of different part numbers can be faced with the impossible task of monitoring the inventory levels of each part number.