Materials Management

Rupali Jewellers . THE FACTORY IS VISITED IS THE RUPALI JEWELLERS FACTORY LOCATED AT SHIV SHAKTI COMPLEX , GROUND FLOOR ,. S.V. ROAD , DAHISAR (E). MUMBAI –400068 AND HAVING THEIR OFFICE AT SUMAN KUNJ , ROSHAN NAGAR , CHANDAVARKAR LANE, BORIVALI (W).

RUPALI JEWELLERS ARE WELL ESTABLISHED MANUFACTURERS OF IMITATION JEWELLERY FROM PAST 20 YEARS .THEIR IMMITATION WORKS RANGE FROM STYLISH AND IN DEMAND CHAINS, BRACELETS , NECKLACES , RINGS , WEEDING BANDS AND JUST ABOUT EVERY BRIDAL JEWELLERY . THE JEWELLERY INDUSTRY REQUIRES CONSTANT INNOVATION AND CHANGE WHICH SHOULD BE IN TOUCH WITH THE CURRENT MARKET DEMAND . THIS IS THE PRIME FACTOR CONSIDERED BY THEM AND THIS FACTOR OF CONSTANT INNOVATION IN DESIGNS GIVES THEM AN EDGE OVER THE OTHER COMPETITORS.THE COMPANY SELLS THE MANUFACTURED IMITATION WORKS TO INDIAN SHOPS AND IS PLANNING TO EXPORT THEM TOO.

Description Of The Factory . THE FACTORY VISITED BY ME IS A SMALL SCALE FACTORY LOCATED IN A BUILDING ON THE GROUND FLOOR . IT IS SPACIOUS AND HAD ENOUGH ROOM FOR THE WORKERS TO MOVE. THE FACTORY HAD ENOUGH NATURAL LIGHT AND ARTIFICIAL LIGHTS WERE PROVIDED WHERE NECESSARY.

THE COMPANY HAS EMPLOYED ABOUT 20 WORKERS. THE EMPLOYEES ARE INCREASED IF THERE IS MORE DEMAND OF IMITATION JEWELLERY IN SHOPS AND ORDERS OR AS PER THE REQUIREMENTS DURING MARRIAGE SEASONS ETC DUE TO SEASONAL NATURE OF IMITATION JEWELLERY.

ORGANISATION STRUCTURE .

JOINT FAMILY. | ----------------------------------------------------------------------------------| | | MR CHIRAG MR JAINTIBHAI JANANI MR MAHESH |----------------------------------------|----------------------------------------| MANAGER | 20 WORKERS

DESCRIPTION OF RAW MATERIALS AND PRODUCTION PROCESS

.

THE COMPANY USES VARIOUS TYPES OF MATERIALS IN THE PRODUCTION PROCESS. THE COMPANY USES MATERIALS LIKE LEAD , COPPER , BRONZE, ZINC , LEAD , MS IRON , PRECIOUS STONES , PLASTIC STONES , GLASS BEADS ETC. THE COMPANY MAINLY MANUFACTURES IMITATION JEWELLERY IN LEAD , THE SECOND MOST MATERIAL USED IN THE MANUFACTURING PROCESS IS COPPER AND BRONZE . THE PRODUCATION PROCESS INVLOVES RAW MATERIAL GATHERING , CASTING AND MOULDING OF RAW MATERIALS , SEMI ASSEMBLING OF RAW MATERIALS , PLATING THE SEMI ASSEMBLED RAW MATERIALS , FINALLY ASSEMBLING THE RAW MATERIALS , FINISHING THE FINAL PRODUCT , PACKAGING THE FINSIHED PRODUCT AND ULTIMATELY DESPATCHING THE PRODUCT TO SHOPS . A DETAILED PRODUCTION PROCESS IS EXPLAINED IN THE FOLLOWING PAGES :-

RAW MATERIALS GATHERING :THE REQUIRED RAW MATERIALS ARE FIRST ACQUIRED AS PER THE REQUIREMENTS . THE FACTORY USES JUST IN TIME PRINCIPLES AND THUS THE A CATEGORY MATERIALS (LEAD) ARE KEPT IN STORE AS THE COMPANY GETS DISCOUNTS ON BULK PURCHASE. THE B CATEGORY MATERIALS (COPPER AND BRONZE) ARE STOCKED FOR ABOUT 15 DAYS TO A MONTH AND THE STOCK OF PRECIOUS STONES KEEPS ROTATING EVERY 5 DAYS .

CASTING & MOULDING :THE GATHERED GOODS ARE THEN CASTE AND MOULDED INTO VARIOUS SHAPES AND SIZES ACCORDING TO THE DESIGN AND THE TYPE OF JEWELLERY FORMATION DONE . THE METAL IS HEATED AND MOULDED AND THEN IT IS PUT INTO VARIOUS SHAPES AND SIZES OF DIES .THE DIES ARE THEN KEPT FOR SOME TIME TO COOL AND THUS THE METAL IS CASTE INTO THE REQUIRES SHAPE AND SIZE .

SEMI ASSEMBLING :SEMI ASSEMBLING MEANS PUTTING ALL THE METAL CASTES TOGETHER BUT NOT FULLY. EXAMPLE : ONLY PUTTING TOGETHER 2 PIECES OF A NECKLACE TOGETHER OUT OF THE 10 PARTS

REQUIRED IN THE NECKLACE. IN CASE OF BANGLES AND BRACELETS THIS PROCESS DOES NOT EXIST.

PLATING :IN THE PLATING PROCESS THE SEMI ASSEMBLED ARE GIVEN PLATING OF GOLD OR SILVER OR WHATEVER THE INNOVATIVE PRODUCT DESIGN DEMANDS PLATING FOR. SOME OF THE MATERIALS IN THE FACTORY WERE GIVEN BRONZE PLATING . THE PLATING IS SOMETIMES OF A MIX BLEND MEANING A GOLD OUTLINE WITH SILVER PLATING INSIDE ETC GIVES THE PRODUCTS A ATTRACTIVE LOOK.

FINAL ASSEMBLING :THE NEXT PROCESS AFTER PLATING IS OF FINAL ASSEMLY OF PRODUCT. THE JEWELLERY IS PUT TOGETHER IN THIS STAGE AND THE FINAL PRODUCT IS PREPARED. THIS PRODUCT NOW NEEDS TO BE GIVEN PROPER FINISHING WHICH WILL GIVE IT A YET BETTER LOOK AND ATTRACTIVENESS.

PACKAGING AND DESPATCHING :THE FINAL PRODUCT IS PACKAGED INTO PLASTIC AND PUT IN BOXES OF VARIOUS SIZES AND SHAPES AS PER THE NEED OF THE PRODUCT. THESE PRODUCTS ARE THEN DESPATCHED TO VARIOUS SHOPS AND RETAIL OUTLETS .

OTHER INFORMATION OF THE COMPANY WITH RESPECT TO QUESTIONAIRE . WHETHER TO MAKE AN ITEM WITHIN THE USERS PLANT OR TO BUY IT FROM OUTSIDE SOURCES IS A MAJOR POLICY DECISION NORMALLY DECISIONS IN THIS ASPECT ARE TAKEN AT THE TOP LEVEL OR BY THE OWNERS OF THE COMPANY WHO RUN THE BUSINESS. MAKE OR BUY DECISION ARISE DUE TO A VARIETY OF REASONS. MOSTLY SUCH SITUATIONS ARISE DUE TO VARRIETY OF SUPPLIERS IN THE MARKET OF THE ITEMS THAT WE REQUIRE. THE MANAGEMENT THEN DECIDES TO EITHER MAKE THE ITEM OR TO BUY IT FROM THOSE WHO GIVE THE BEST AT THE CHEAPEST RATE. SOMETIMES AVAILIBILITY OF ITEMS FROM OUTSIDE SUPPLIERS MAY NOT BE ADEQUATE OWING TO STIFF COMPETITION FROM MANY END USERS. THIS MAY ALSO LEAD TO MAKING THE ITEM IN ONES OWN PLANT.

THE MAJOR FACTORS THAT ARE CONSIDERED WHILE TAKING DECISION REAGARDING MAKE OR BUY ARE :-

1) QUALITY REQUIREMENT 2) QUANTITY REQUIREMENT 3) COST ASPECT.

THE COMPANY MAKES A BUY DECISION WHEN IT COMES TO SMALL MATERIAL REQUIREMENTS LIKE SCREW ETC IF NECESSARY . THE COMPANY TAKES A MAKE DECISION IF THE COMPANY HAS TO MAKE SMALL BUT INNOVATIVE MATERIALS. IF THE COMPANY NEEDS PLASTIC BEADS , GLASS BEADS IN SOME SPECIAL SHAPES AND SIZES THEN THE COMPANY GOES FOR THE MAKE DECESION. TOTAL QUALITY CARE IS TAKEN BY THE COMPANY. THE COMPANY USES BRANDED RAW MATERIALS WHEN IT COMES TO GLASS BEADS , PLASTIC BEADS OR PRECIOUS STONES ETC. THE PACKAGING IS DONE IN ATTRACTIVE WAY AND THE PLASTIC USED IS SUCH THAT IT SAVES THE FINISHED JEWELLERY FROM GETTING DAMAGED TO A CERTAIN EXTENT. THE PLATING IS DONE WITH RELIABLE PLATING PROCESS AND IS DONE ACCORDING TO THE LATEST TRENDS AND FASHONS FOLLOWED. CARE IS TAKEN THAT THE MATERIAL DOES NOT FADE OUT THE SHINING AND IS NOT ALLERGIC TO PEOPLE.

INVENTORY CONTROL IS THE PROCESS WHEREBY THE INVESTMENT IN THE MATERIALS , COMPONENETS , SPAREPARTS , ETC. WHICH ARE CARRIED IN STOCK IS REGULATED WITHIN THE PREDETERMINED LIMIT SET IN ACCORDANCE WITH THE INVENTORY POLICY ESTABLISHED BY THE MANAGEMENT . THE NORMAL RAW MATERIAL USED BY THE COMPANY IS STOCKED FOR ABOUT 1 MONTH STOCK ON HAND AND MAINTAINING A AUTOMATIC PROVISION WITH THE SUPPLIER TO SUPPY A PARTICULAR AMOUNT OF STOCK AT THE END OF THE MONTH. STOCK OF PRECIOUS STONES KEEPS CHANGING IN 5 DAYS BECAUSE OF CONSTANT AND FAST CHANGE IN FASHION. THE COMPANY SELECTS THE SOURCE OF SUPPLY ON THE BASIS OF THE CREDIT AND THE REGULARITY OF SUPPLY GIVEN BY THE COMPANY. THE COMPANY HAS TO GIVE ORDERS TO ONLY THAT COMPANIES AND SUPPLY THE MATERIALS FROM THE COMPANY WHICH GIVES THE COMPANY THE MOST OF THE CREDIT FACILITIES FOR THE LONGEST DURATION . EVEN THE SUPPLY FACTOR OF THE MATERIALS IS TO BE CONSIDERED. THE COMPANY WHICH GIVES THEM BETTER SUPPLY FACILITIES ON PROPER TIME PERIOD DECIDED AND WHICH HELPS THE COMPANY FULFILL THEIR OBJECTIVE OF JUST IN TIME IS GIVEN THE ORDER.

THE COMPANY MANUFACTURES THE PRODUCT FOLLOWING THE MAKE ON ORDER SYSTEM . THUS THERE IS VERY LESS CHANCES OF SURPLUS PRODUCTION. THE COMPANY TAKES FULL CARE THAT THE MATERIALS AND THE PRODUCTION IS EXACTLY AS PER THE DEMAND. BUT THE COMPANY HAS TO TAKE INTO CONSIDERATION SOME DEFECTIVE PIECES . IF THE PRODUCTION PROCESS IS FULFILLED WITHOUT ANY DEFECTIVE PIECE THEN IF AT ALL THERE IS ANY SURPLUS THEN THE PRODUCED MATERIAL IS SHORT TRADED . THE MEANING OF SHORT TRADING MATERIAL MEANS THAT THE FINISHED PRODUCT IS SOLD AT A MUCH CHEAPER RATE . SUPPOSE A SURPLUS OF NECKLACE IS PRODUCDED WITH A MRP OF 150 RUPPES THEN THE NECKLACE IS SHORT TRADED AT RUPPES 7080 . THE PRICES CAN GO EVEN LOWER IF THERE IS NO DEMAND FOR THE SURPLUS PRODUCED.

IT IS TO BE UNDERSTOOD THAT IN EACH AND EVERY MANUFACTURING PROCESS THERE ARE SOME DEFECTIVE PRODUCTS AND THERE ARE SOME SCRAP PRODUCED. “ Disposal of scrap when handled in an imaginative manner can result in handsome returns to the organization ” SAYS A BOOK ON MATERIALS MANAGEMENT. THE TYPES OF SCRAP PRODUCED ARE METAL WIRES LIKE COPPER WIRES , BRONZE WIRES , ETC. THE SCRAP PRODUCED IS RECYCLABLE AND IS SOLD AS SCRAP. IT IS NOT USED TO MAKE ANY OTHER PRODUCT OR BY PRODUCT . THE SCRAP IS NOT RECYCLED BY THE COMPANY BUT IS SOLD TO THE COMPANIES WHO RECYCLE SCRAP. THE FACTORY USES SPECIAL MATERIALS LIKE PRECIOUS STONES AND BEADS BUT THESE MATERIALS ARE NOT STOCKED AND DO NOT REQUIRE SPECIAL WAREHOUSING.

THE COMPANY HAS TO FOLLOW LICENSING POLICIES . VARIOUS LICENSES LIKE GHUMASTHA , POLLUTION CONTOL , FACTORIES LICENSE ETC ARE ACQUIRED BY THE COMPANY. THE COMPANY HAS DESIGNING MONOPOLY OVER OTHER COMPANIES.

GENERALLY THE LIFO AND FIFO METHODS ARE USED IN COMPANIES. THE MEANING OF METHOD IS EXPLAINED BELOW :-

LIFO :LIFO MEANS LAST IN FIRST OUT. IN THIS METHOD THE GOODS WHICH ARE PRODUCED THE LAST ARE EXPOSED OR DISTRIBUTED IN THE MARKET FIRST. THIS MEANS THAT THE GOODS WHICH ARE THE LATEST ARE DESPATCHED FIRST.

FIFO :FIFO MEANS FIRST IN FIRST OUT. IN THIS METHOD THE GOODS WHICH ARE PRODUCED THE FIRST ARE EXPOSED OR DISTRIBUTED IN THE MARKET FIRST. THIS MEANS THAT THE GOODS WHICH ARE PRODUCED BEFORE HAND ARE DESPATCHED IN THE MARKET.

THE LAST IN FIRST OUT (LIFO) METHOD IS APPLICABLE TO THE JEWELLERY INDUSTRY DUE TO THE FAST CHANGE IN FASHION AND TRENDS .

TRADING A/C OF THE COMPANY . MATERIAL COSTING APPROX :– 45 %

LABOUR COST APPROX :– 35 - 40 %

PACKAGING COST APPROX :- 5 - 7 %

ADMINISTRATION EXPENSES APPROX :- 5 – 7 %

PROFIT MARGIN APPROX :- 10 %

THE PROFIT MARGIN DIFFERS FROM COMPANY TO COMPANY. IF THE PARTY IS MAKING CREDIT PAYMENTS THEN THE PROFIT MARGIN IS ABOUT 15 % AND IF CASH PAYMENTS ARE MADE THEN THE PROFIT MARGIN IS ABOUT 8 % .

Conclusion . THE VISIT TO THE FACTORY OF RUPALI JEWELLERS WAS A VERY INFORMATIVE AND EDUCATIONAL ONE . ALTHOUGH ALL THE MANUFACTURING PROCESSES AND MATERIALS INFORMATION WAS NOT PROVIDED , THERE WERE MANY ASPECTS THAT WERE VERY NEW AND PRACTICAL WHICH CANNOT BE SEEN IN THE BOOKS . GOOD SUPPORT WAS GIVEN BY THE AUTHORITIES WHICH MADE THIS PROJECT WHAT IT IS . SOME INFORMATION LIKE THE TRADING A/C OF THE COMPANY WAS NOT EXPOSED BUT ONLY THE PERCENTAGES WERE REVEILED .