Inventory Management

Tyco Electronics
CHAPTER I INDUSTRY PROFILE History of Electronics Industry in India 1.1. Introduction

The Electronics Industry in India took off around 1965 with an orientation towards space and defence technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Black & White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a significant year in the history of television in India the government allowed thousands of colour TV sets to be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of computers and Telephone exchange, which were succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for Electronics during which the industry witnessed continuous and rapid growth. From 1991 onwards, there was first an economic crisis triggered by the Gulf War which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained through growth and development have continued with digitalisation in all sectors, and more recently the trend towards convergence of technologies. After the software boom in mid 1990s Indias focus shifted to software, while the hardware sector was treated with indifference by successive government. Moreover the step fall in customer tariffs made the hardware sector suddenly vulnerable to international competition. In 1997 the ITA agreement was signed at WTO where India committed itself to total elimination of all customer duties o IT hardware by 2005. In the subsequent years, a number of companies turned sick and had to be closed down. At the same time companies like Tyco, Moser Bare, Samtel Colour, Celetroniz etc. have made a mark globally.
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Current Scenario
In recent years the electronic industry is growing at a brisk pace. It is currently worth US$ 32 Billion and according to industry estimates it has the potential to reach US$ 200 billion by 2015. The largest segment is the consumer electronics segments. While is largest export segment is of components. The electronic industry in India constitutes just 0.7 per cent of the global electronics industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity. The output of the Electronics Hardware Industry in India is worth US$ 16.6 Billion at present. This growth has attracted global players to India.
The Growth Drivers

Behind the impressive growth of the electronics industry is the robust and consistent growth in Electronic Hardware of approximately 25 per cent due to a stable economy & large middle class of 350 million people, some of the other factors are; Highly talented workforce, especially for design and engineering services with good communication skills. Rising labour cost in china. Presence of global Electronics Manufacturing Service (EMS) majors in India and their plants for increasing investments in India. More outsourcing of manufacturing by both Indian and global original equipment manufacturers.
Major Players
Solectron Flextronics Jabil Circuits Samtel Group Moser Baer India Ltd. Tyco Electronics Midas Communication
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Challenges and Opportunities Challenges

Major challenges facing the Indian Electronics manufacturing market are an infrastructure that needs to be improved at the earliest possibility, easing of foreign investment procedure, which is underway, and a restructured government tariff that now makes domestically manufactured goods more expensive than important goods with zero tariff. There are also others problems, which are hampering the growth of the Indian electronics industry. Some of them are: Lack of World-class infrastructure. Lack of clear-cut government policy for the industry. Very little expenditure in Research and Development area. Power of Marketing not harnessed to the maximum
Opportunities
While the Electronics sector in India is currently small, there are several advantages that offer that can be effectively leveraged to achieve growth. These can be categorised under three heads: Manpower Market Demand Policy and Regulatory Support
On the whole the domestic market in India is very attractive from the point of view of the Electronics sector, and current trends indicate high growth potential for the sector in the future.
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1.2 .COMPANY PROFILE 1.2.1 Background and Inception of the Company

TE Connectivitys rich history is based on two great companies, each with impressive engineering prowess and heritage. AMP Incorporated, founded in 1941, developed a solder less method of attaching electrical terminals to wire which improved connection consistency and manufacturing efficiency. For 50-plus years, AMP led the fast-paced connector industry and was the leading maker of terminals, connectors and related products components found in virtually any finished electronic device from toasters to supercomputers. The company was quick to adopt a global strategy, first establishing operations in France in 1952 and Japan in 1956. By the late 1990s, AMPs global footprint extended to over 50 countries and annual sales exceeded US$5 billion. Raychem Corporation, established in 1957, had as its basis the then-new field of radiation chemistry technology (hence Raychem), which company founders combined with expertise in materials science to develop products such as aircraft wire and heat-shrinkable tubing. Raychem later applied these core technologies to introduce more products, including innovative circuit protection products that could automatically reset after circuit faults were cleared. In 1999, AMP merged with Tyco International Ltd. Later that same year, Raychem was acquired. These two electronics industry leaders combined to form the basis of Tyco Electronics. Over the next two years, more strategic acquisitions broadened the companys product portfolio to encompass electronics and electrical components and systems spanning over 20 distinct product categories. Today, the portfolio includes not only connectors, but also relays, fibre optics, circuit protection devices, and touchscreens encompassing approximately half a million different part numbers. No other supplier matches the array of products and services that Tyco Electronics offers. Tyco Electronics spun off from Tyco International in June 2007 and became an independent stand-alone company. In March 2011, Tyco Electronics changed its name to TE Connectivity to better reflect the products and solutions it provides to customers. Keeping focused on the customer, TE Connectivity now operates in over 50 countries, with manufacturing facilities in approximately 20 countries strategically located close to customers facilities. While there
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Tyco Electronics has been a shift of manufacturing operations to emerging regions such as China and Eastern Europe, the companys strategy maintains a well-balanced operating presence in all three major regions of the world.
1.2.2. Nature of the Business Carried

With a 50-plus year history of leadership, TE Connectivity is a global, $12.1 billion company that designs and manufactures over 500,000 products that connect and protect the flow of power and data inside the products that touch every aspect of our lives. Our nearly 100,000 employees partner with customers in virtually every industryfrom consumer electronics, energy and healthcare, to automotive, aerospace and communication networksenabling smarter, faster, better technologies to connect products to possibilities.
1.2.3 Vision, Mission and Quality Policy: Vision:

To be the customers first choice in every market Tyco serves by exceeding commitments, providing new technology solutions, leveraging its brands, driving operational excellence, and committing to the highest standards of business practice all of which will drive Tycos long-term growth, value and success.
Mission
We will increase the value of our Company and our global portfolio of diversified brands by exceeding customer expectations and achieving market leadership and operating excellence in every segment of our Company.
Values: Integrity
Tyco demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all laws and company policies. We are dedicated to diversity, fair treatment, mutual respect and trust.
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Accountability
Tyco honours the commitments we make, and take personal responsibility for all actions and results. We create an operating discipline of continuous improvement that is an integral part of our culture.
Teamwork
Tyco foster an environment that encourages innovation, creativity, excellence and results through teamwork. We practice leadership that teaches, inspires, and promotes full participation and career development. We encourage open and effective communication and interaction.
Innovation
Tyco always recognize that innovation is the foundation of our business. We challenge ourselves to develop new and improved ideas for all that we do. We encourage, expect and value creativity, openness to change, and fresh approaches.
Quality at Tyco:
It is the goal of TE to continually deliver safe, effective, high-quality products and services, on time, to our customers and internal operations. Processes and controls shall be implemented such that tasks are performed properly the first time, so that products and services meet established agreed-to requirements. Quality, customer satisfaction, continual improvement, maintaining the effectiveness of our quality management system, and compliance with customer and regulatory requirements, are the personal responsibility of every employee.
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Customer Satisfaction
Our success depends on customer satisfaction. We strive for extraordinary performance in every area of our business. We will only have satisfied customers when we understand their needs, requirements and preferences, and when our performance in every area is aligned to meet or exceed these expectations.
Error-Free Products and Services On Time
Every employee is responsible for the quality of their own work. Our goal is to reduce variability to achieve zero defects for our products and services while improving cycle times. A common set of metrics is used to measure, report and drive improvement. Each defect must be eliminated by systematic corrective and preventive measures.
1.2.4 Products Profile

Tyco conducts its business through four operating segments: Electronic Components is one of the worlds largest suppliers of passive electronic components, including connectors and interconnect system, relays, switches, sensors and wire. Its products are used primarily in the automotive, computer, communications equipment, industry machinery, household appliance, customer electronics, energy, lighting, commercial equipment and instrumentation markets. Network Solutions is a global supplier of infrastructure components and systems for the communication service provider, building networks and energy markets. Our products includes connectors, above and below-ground enclosures, heat shrink sleeves, cable accessories, surge arrestors, fiber optic cabling, copper cabling and racks for copper and fiber networks. Specialty Products is a leader in providing highly-engineered custom solutions, components and connectors for electronic systems, subsystems and devices in the aerospace, defence and marine; medical; touch systems; and circuit protection markets. Subsea Communications is one of the worlds leaders in developing, manufacturing, installing and maintaining some of the worlds most advanced fiber optic undersea networks.
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Tyco Electronics Its technology is found in more than 420,000 kilometres or 262,500 miles of undersea cables systems globally. A pioneer in the industry, it has more than 50 years of expertise in route surveying, system design, product development, system deployment, marine services, maintenance and repair.
Tycos markets
Tyco sells its products to manufacturers and distributors in a number of major markets.
Automotive Industry Telecommunications Industry Computer Industry Energy Industry Aerospace, Defence, and Marine Industry Appliance Industry Enterprise Networks Industry Medical Industry Service Industry
Tycos Product Range Tyco brings a performance advantage to every technology, product and service it provides, including connector systems, relays, fiber optics, circuit protection devices, wire and cable, touch screens, heat shrink tubing and panels, network interface devices, and undersea telecommunication systems. Tyco is continually honing our technological edge with the goal of delivering the best products- with the highest quality-every time.
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Tyco Electronics
Various Products
Its products can be broadly classifies into 4 groups listed below
Electronic Components
Tycos Electronic components segment is one of the worlds largest suppliers of passive electronic components, which includes connectors and interconnect systems, relays, switches, sensors, and wire and cable.
Connector Systems and Components. it offers an extensive range of

electrical and electronic interconnection products. These connectors include a wide variety of pin and socket, terminal, USB, coaxial, I/O, fiber optic, and power connectors, as well as sophisticated interconnection products used in complex telecommunications and computer equipment.
Relays. Its relay products can be used in a wide range of applications in the
automotive, telecommunications, and industries, including electric sunroofs, antilock braking systems, and fuel injections coils for the automotive industry.
Heat Shrink Tubing. It offers hundreds of reliable, cost-effective products

to seal, connect, insulate, protect, hold, and bundle high-performance electrical harnesses.
Application Tooling. It offers a broad portfolio of hand tools, semiautomatic bench machines, and fully- automatic machine systems for processing terminal products.
Sensors. It offers a customized engineering portfolio of non-contact position

and speed sensor technologies mainly for the automotive industry.
Antennas. It offers application specific and standard antenna products in a

variety of structures to enable our customer to complete the transmission of wireless voice and data over a full range of protocols.
Wire and Cable. It provides highly engineered cable and wire products to
the data transmission, telecommunication, and industrial markets.
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Fiber Optics. It manufactures fiber optic connectors, cable assemblies,

adapters, and accessories. It provides highly engineered products that connect, configure, and control light. It also offers identification products, memory card product, magnetics and switches.
Network Solutions
Tyco Network Solutions segment is one of the worlds largest suppliers of infrastructure components and systems for the telecommunications and energy markets. The products are grouped into the following product families:
Connector Systems and Components. It offers an extensive range of low, medium, and High-voltage connectors and splicers, cable assemblies, sealing systems, terminals etc.,
Heat Shrink Tubing. It offers heat shrink tubing, heat-shrinkable splice closures, sleeves, and moulded parts designed to better protect both high-and low-voltage circuits against harsh aerial, buried, and above-ground environments.
Fiber Optics. It offers fibers optic connectors, splices, fiber optic closures, fiber management systems, high density cable assemblies systems. These products find use in both local-area and wide-area networks.
Wire and Cable. We provide wire and cable for indoor and outdoor use in office, factory floor, school, and residential voice, data, and video networks, including copper and fiber optic distribution cables.
Racks and Panels. It provides racks and panels that are used to integrate, organize, and manage fiber and copper cables. In addition to the above product families which represents over 90% of the total Network Solution.
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Specialty Products
Tycos specialty products segment is a leader in providing highly-engineered custom solution, components, and connectors for electronic system, subsystem, and devices in the aerospace, defence, and marine; touch system; circuit protection; and medical markets. The following are the primary product families sold by the segment:
Connectors System and Components. it offers connector products including a wide variety of pin and socket, terminals, USB, coaxial, I/O, fiber optic, and power connectors, as well as Sophisticated interconnection products used in complex aerospace, defence, and marine and medical equipment.
Touch Screen. It develops, manufacture, and market a complete line of touch solutions for point-of-sale terminals, self-service, process control, medical, and consumer products.
Circuit Protection Devices. It offers a range of circuit protection devices, which limit the flow of current during fault conditions and automatically reset after the fault is cleared.
Wire and Cable. It provides highly engineered cable and wire products to the aerospace, defence, and marine and medical markets. Relays. Its relay products can be used in a wide range of high-performance applications for
Heat Shrink Tubing. It offers hundreds of reliable, cost-effective products to

seal, connect, insulate, protect, hold, and bundle high-performance electrical harnesses.
Subsea Communications
Tycos subsea communication segment designs, builds, maintains, and tests undersea fiber optic networks for both the telecommunications and oil and gas markets.
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1.2.5 Area of Operation

Tyco is a global company located in over 50 countries; 11 global design centres serving customers in more than150 countries. Over 150,000 customers located and the millions of consumers who used our customers products very day- relay on TE products to protect and connect the flow of data and power from where it starts to where it ends. In other words, they rely on TE to make every connection counts. Tyco established manufacturing presence in approximately 25 countries, its global coverage positions. Tyco near its customer allows us to assist them in consolidating their supply base and lowering their production costs.
1.2.6 Ownership Pattern:

It is 100% subsidiary of Tyco international. And it is fully funded by Tyco international ltd. Frederic M. Poses- the non-executive chairman of the TE connectivity board of directors. Thomas J. Lynch is the chief executive officer and a member of the Board of Directors of TE connectivity Pierre R. Brondeau- Board of Director.
Robert M. Hernandez- Board of director. Paula A. Sneed- Board of Directors since its inception in June 2007.
John C. Van Scoter began service on the TE connectivity Board of Directors in December 2008.
Employee Details
Tyco is having approximately 78000+ dedicated employees who are based throughout world, with approximately 30,000 employees in China alone. By maximizing the commitment of our approximate 7,000 engineers, and the reach of our 5,000-plus member sale force serving customer in more than 150 countries, it can collaborate with customer to provide highly engineered products and innovative solutions to meet their needs. Its diverse and capable management team is equally dedicated to creating and sustaining those powerful customer alliance-and to earning their business every day.
Tyco Electronics
1.2.7 Competitors
The industry in which Tyco operates is highly competitive, and we compete with thousands of companies that range from large multinational corporations to local manufacturers. Competition is generally on the basis of breadth of production offering, product innovation, price, quality, delivery, and service. Its markets have generally been growing but with downward pressure on price. Electronic Components. This segment competes against numerous companies, including Molex, Amphenol , FCI,JST, and Omron. Network Solutions. This segments major competitors include Corning,
Commscope, 3M, Cooper Industries, Thomas & Betts, and Hubbell. Specialty Products. This segment competes against numerous companies, including Molex, Amphenol, Deutsch, Radiall, 3M, smart Technologies, Wintek Corporation, Littelfuse, Polytronics, Bel fuse, ODU, and Lemo. Subsea Communications- This segment primarily competes against AlcatelLUCENT.
Customers
Behar Nokia IFB Whirlpool etc.
1.2.8 Infrastructure Facilities:

Appropriate infrastructure facility is provided to ensure that all process of the organization is carries out in a systematic manner to ensure that the products quality and safety is maintained. The annual business plan meeting is used as a platform to review and upgrade the infrastructure as the need may be the organization has provided an environment with an emphasis on personal, safety, hygiene, ergonomics, welfare and physical factors like lighting, temperature, noise, air quality, cleanliness etc.,
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Tyco Electronics Safety is of prime importance in the organization priorities to ensure smooth functioning, whenever necessary the machines are provided with sensing device to prevent accidents. The principal is extended to the use of drinking water also. The company practices 5S and is used as means to ensure that the premises is maintained in an orderly way. Different teams work on 5S to ensure the orderliness of different work area.
1.2.9 Achievements/Awards:
Silver Boeing Performance Excellence Award 2008-09 Ground-Breaking Aircraft Wiring Repair Wins Innovation Award- feb-11-2011 Customer and Recognition awards-2004 Tyco Electronics Wins $29589 Federal Contract for Electromagnetic Relays. Safety Award for 30th year for Environment, Health & safety.
1.2.10. Work Flow Model:

Tyco is an organization with an ISO-certificate ascertains the international standard of products carries on in the company. The diagram shows the given various activities involved in the flow of materials from the suppliers to the customer. In the first process the material are purchased from the supplier and are sent to manufacturing process, the manufacturing will be done according to the specification given by the customer. The marketing department will be involved in the work of collecting the design specification from the customer. Once the specification is collected from the customer the design department will design the product and the component development department will prepare a prototype of the product and it will be sent to the approval of the customer. Once the customer approve the design then under received from them. The production plant will be prepared by the production department for the assembly production and subsequently after the quality check, the products will be dispatched to the customer. The entire workflow is divided into 3 major process they are as follows: MOP (management oriented process) COP (customer oriented process) SOP (support oriented process)
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MOP COP SOP
Management Oriented Process
Customer Orientated process Support Oreintated Process
MOP deals with MR (Management representative) and IQA in order to achieve targeted profit the required steps will be taken by them, it is concerned with providing goods of higher quality and at a competitive price, for this purpose the quality assurance department is established, it performs the quality checking activities for each and every product. The main motive of Tyco is achieving zero PPM (zero products should be defective out of one million product produced) COP deals with making the customers satisfied by providing them with all the necessary services they required, various department are covered under COP, they are marketing, design, component, development, planning, dispatch etc., in the present competitive scenario where there is huge price competition, the importance of the above mentioned department are very much solicited. SOP is concerned with providing necessary services that supports the MOP and COP, SOP do also play an important role in the organization, unless SOP is working at 100% efficiency it is not possible for the organization to produce goods of right quality. SOP covers various departments they are source, maintenance, PED, HRD and QA.
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1.2.11 Future Growth and Prospects
For the year, Tyco as worked to lower costs, increase reliability, and devise new and novel ways to create and apply lighting products. Today, as the leader in passive electronic components, Tyco is looking expertise to work on your development programs. Computeraided engineering allows for some of the most sophisticated modelling and simulation in the industry. This allows you to validate a design before prototyping. The lighting industry is undergoing rapid changes in the quest for energy efficiency, longer life, and new application. TE total lighting solution incorporates its 50-plus years of experience with interconnects, circuit protection, thermal management, optic and device control into a packaging solution that can be easily integrated into your next lighting program.
Tyco is looking for a bright market in lighting industry The solar industry is undergoing rapid changes in the quest for higher efficiency longer life and new applications. Companies are looking for well-engineered, certified and reliable solar solutions that are available for their business needs. Tyco is also trying to efficient exploit opportunities in photovoltaic and solar thermal industry.
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CHAPTER II MCKENSYS 7S FRAME WORK

The McKinsey 7S model was named after a consulting company. McKinsey and Company, which has conducted applied research in business and industry. The McKinsey 7S Framework was created as a recognizable and easily remembered model in business. The seven variables, which the author term Levers, all begins with the letter S. These seven variables include structure, strategy, system, skills, style, staff and shared values, structure is defined as the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The system are the routine processes and procedures followed within the organization. Staff are described in terms of personal categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organizational as a whole. The way in which key managers behave in achieving organizational goals is considered to be the style variable; this variable is thought to
encompass the cultural style of the organization. The shared values variables, originally termed super ordinate goals, refers to the significant meanings or guiding concepts that organizational members share
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MckensyS 7S Framework:
From above 7 three are called Hard s these are such as Strategy Structure System And other four are called Soft S, namely Skills Staff Shared value Style 2.1. Strategy
Actions a company plans in response to or anticipation in its external environment. Tycos goal is to be the world leader in providing customer-engineered electronic components and solutions for an increasingly connected world. We believe that in achieving
Tyco Electronics this, we will increase net sales and profitability across our segments in the markets it serves. Its business strategy is based upon the following priorities Our strategy is to be Electronics industry first choice supplier through: Technological leadership Complete system capabilities Highest-value safety system solutions. Cost efficiency. Quality excellence. Highest level of service and engagement Deliver extraordinary customer service Dedicated and motivated employee Tyco is involved on eliminating the wastages that occurs in the process of production. It has identified various kinds of wastages and had given suggestions to eliminate it.
2.2. Structure:
The design of organizational structure is a critical task of the overall management of an organization. It is the skeleton of the whole organizational. It prescribes the formal relationship among various positions and activities. Basic for specialization and co-ordination influenced primarily by strategy and by organization size and density. The basic organization of the company is its department, reporting lines, areas of expertise, responsibility (how they inter-relate). Structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational chart.
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Board of Directors
Managing Director
Production Dept (Manager)
Finance Dept (Manager)
H.R Dept (Manager)
Marketing Dept (Manager)
Prod.Planning (Manager)
Deputy and Assistant Manager
Deputy Assistan Manager
Executive and Supervisor
Team Members
Team Members
Team Members
Team Members
Team Members
2.3 System:
Systems refers to the processes used to manage the organization. It means set of protocols which are identified to carry out the activities in the prescribed manner. This should be carried by the organization is all situations, system differs from organization to organization. There are various systems for various different like performance management system, production system. Here let we see the performance management system. Performance Management System: Creating and sustaining a competitive advantage is the best challenge faced by the organization today. It is very important to focus on the performance management in order to align the available talents with the companys performance needs and challenges. Performance is the decisive factor in meeting or falling short of objective of the company.
Tyco Electronics Performance management system is an essential system in the absence of which it is difficult to assess employees. Tyco believes in formulating and implementing a competitive performance management system in order to facilitate its human resources to perform and contribute towards the objective of the company and thereby sustain in the changing business environment. Company provides with fair, equitable, and transparent performance management review to all its employees and helps them to perform to the best of their abilities and potentials. Company will also bring about constant change / continuous improvements in the system so as to keep pace with changing performance standards and business requirement.
Companys approach to performance management: Communicate clearly the role and responsibility for the operating year This clarity helps the people to focus on companys goal Clarity between the supervisor and supervised Keep the whole process open Review help removing any halo-effect and make the assessment objective Review also helps across the organization commonality of standards Leads to planned and focused training and development plan helping individual growth as well as companies. Procedure for conducting performance review: periodicity of the review-half yearly and yearly.
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Annual Performance Review:

1. The HR department will enter the personal data and details of the training undergone during operating period in annual review sheet and submit it along with other sheet to the supervisor. 2. The supervisor will give self-appraisal format to his sub ordinate for the appraisal and ask him to appraise himself based on KRAs set and result achieved. 3. The supervisor will appraise his subordinate based on self-appraisal and overall rating should be given. Care must be taken to ensure that aberration due to personal prejudices, halo effect, stereo typing etc do not come in the way of objectives assessment. 4. The supervisor will arrange for review of his subordinates appraisal with is superior and HR representative. The review committee comprises of supervisor, supervisors supervisor and HR representative. 5. In case of rating excellence (E) and poor (P) the review committee shall involve CEO/ unit head also; signature of the entire reviewing member shall be obtained by appraise. At the same time, excellent performance to be directed towards the deem performance as performance standards change from time to time. At the end it should be fruitful dialogue and review for both the individual and should benefit the organization in achieving its goal. Appraiser and appraise will sign off the form, submit the same to the HR department for the further action.
2.4 Skill:
It is the ability that person requires to perform the tasks in the company. The skills differ from person to person and are also based on the work. In present situation there is more importance for multi skilled persons. In order to make emplo yees multi skilled the company takes necessary measures to provide training to them.
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Detailed Steps Taken to Impart Necessary Skills:

Human resource development is responsible for arranging and coordinating the training programmes to be conducted in the organization. Maintaining the records of training needs, preparation of annual training calendar and evaluation of effectiveness of the training programmes conducted etc. The basic objective of training is to upgrade and improve the available skills and to train the human resource in specific skills areas in tandem with the demanding performance standards, latest technologies and management principles. The head of HR will also coordinate with the heads of department by providing the information on programmes conducted by the institutes or resources persons the training calendar for the organization is prepared every year in the beginning of the calendar year and revised time based on training needs. Identification of training needs: department heads will be provided with identification of training needs blank forms training needs for all the staff members will be identified by their department head using this form, unit heads will identify the training needs of department heads. Apart from common training programme on the job training and multi skilling is also important to assemble operators time to time, filled in training need identification forms of all the staff members are collected scrutinized and unit heads approval is obtained by HR, on approval from the unit head, these training programmes are compiled and a list of identified training needs is prepared based on the priority of the company and feasibility of such programmes, staff training calendars is prepared in consulting with HODs and unit heads.
Induction Training:
It is arranged for the new entrants (fresh graduates) by HR as per the schedule (minimum 10 days) in consultation with the concerned department head or unit head. The entire department will be covered during the induction. The candidate is supposed to cover the maximum sub work in each allotted department within the limits specified therein. At the end of the training the candidate has to report to concerned HODs. He will appreciate based on his knowledge and correct misconception and candidate clarifies the doubts during the review.
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Effectiveness Evaluation:
Appropriate periodical training effectiveness evaluation matrix available to the concerned heads of the departments for the evaluation of the effectiveness of the training imparted to all his subordinates. Evaluation is made on individual basis depends upon the nature of training imparted and also the stated objectives of the training identified assess or the company has to concentrate on the comparative changes in His / Her attitude, performance, skills, etc, before and after the training programme conducted.
Various Internal Training Programmes on the Job Training: (a) For staff: QC facilitation Waste elimination TPM implementation (b) For operators (programmes) Awareness on checklist and control charts Servicing of serving machines computer fundamentals In-depth final inspection 3C and 5S QC Waste elimination ISO 14001 emergency preparedness Standardization Work instruction TPM
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Various External Training Programmes on the Job Training Programme names Effective facilitators Know shop on safety health and environment Break through thinking Defect prevention 2.5. Shared Values:
Shared values: guiding concepts, fundamental ideas around which a business is build must be simple, usually at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. Life-company has passion for saving lives. Customer-company is dedicated to creating satisfaction for our customers and value for the driving public. Employees- Company is committed to the development of peoples skills, knowledge and creative potential. Innovation-company is driven for innovation and continuous improvement. Ethics-company is adhering to the highest level of ethical and social behaviour. Employee motivation and empowerment: HRD is responsible for monitoring the employee satisfaction in the company in line with companys corporate strategy. HR department will find out the level of satisfaction through employees satisfaction survey and individual counselling besides the executives / worker meeting in three months companys business, working conditions, quality issues etc., Working condition Safety Occupational health and hygiene of employees Welfare schemes Training and learning opportunities to employees
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Retention policy Employees participation in management
These are used for external communications besides the web site of the company provides with various information related to the company.
2.6. Staffing:
Staffs are the important assets of the company unless there is motivated work force it is not possible to achieve the goals. For any work human efforts are essential unless there is human effort work may not yield desired results. The work force has to be clearly defined according to their jobs and their authority and responsibility has to be defined properly. The companies people resources and how they are developed; training and motivated. Tyco has a dedicated work force of 78,000+ professionals, which share the vision of the Tyco. Training and development is a continuous process at Tyco, which has been intensified to tune the staff to the organization environment requirement. A team of senior executive headed by the Managing Directors and consisting of highly qualified and experienced technical staff directs the operation in Tyco. Here let we see the job responsibilities matrix of the senior operations manager who controls the overall production activities in the company. Responsibilities of senior manager-operations: Responsible for operations including production, planning, material, plant, maintenance, logistics and stores. Lead and contribute the implementation of best management practices like TPM, 5S standards.
Line Functions: Monitoring day to day dispatch, production, sales figure etc., Monitoring purchases team and extending necessary coordination for purchase related issues.
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Daily periodical performance review of subordinates in line with agreed goals and target. Development and growth of subordinates by identifying the proper needs for the subordinates.
2.7. Style:
The culture of the organization of two components: Organizational culture: the dominant values and beliefs and norms which develop over time and relatively enduring features of organizational life. Organizational style: more matter of what managers do than what they say; how does a companys manager spent their time? What are they focusing attention on? Symbolism the creation and maintenance of meaning is a fundamental responsibility of managers
Style mainly talks about how an organization operates and shows itself to the outside world i.e., to its customer and its suppliers. In Tyco, the style of the organization is the top down and is totally a participative environment between the employees and top management. Tyco believes that associates perform better in a environment than permits freedom of expression and being informal. The company encourages associates to voice out their views without any fear. The ideas given are evaluated not on the basis of the person but on the basis of rules of politeness. Tyco believes that every associate is a leader and discourages hierarchical barriers as the associates are free to reach out to one another in the company. Tyco has distributed the responsibility to each associate in terms of different units to help them create value and develop them as leaders of their own independent business. The responsibilities that are distributed for day to day leadership of the company in different units brings the decision making closer to action and create more leadership opportunities to the associates.
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Functional Analysis HR department Production department Material department Production planning and controlling department Marketing department Finance department
HR Department Every organization consist of HRD department which is inevitable in todays fast changing world so is the case with Tyco which has an effective HRM department. The total manpower of the company, as on 31.12.2010 was 1625nos.
HRD in TE: HR is integral part of every management, which deals with human beings
which includes management of skills, ability. In others words it is a function of putting a right person on the right job and developing job skills by training and sustaining in order to enable optimum utilization of time and cost.
Head Human Resources
Time Office Assistant
Assistant HR
Administration assistant
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Tyco Electronics
Objective:
To achieve excellence in business by exceeding customer expectation through well motivated and competent employees working in culture of team work and continuous improvement with professional integration. To attract and retain talent To develop the potential pursuits of organizational goals through self-development Tyco believes and strives towards: Achieving total customer satisfaction through human resource excellence thereby ensuring long term competitiveness. Building a quality culture amongst all concerned that will help us exceed customer expectation continuously
Functions:
Maintaining and updating employees data bank, employees files, keep track of appraisals, etc., Assisting in training need survey and evaluation of the same. To assist in recruitment, selection, induction etc., Assisting in organizing the training programs Maintaining training attendance, training details, individual training history etc.,
Production Department
The production department plays a pivotal role in any organization. It is responsible to convert the abstract ideas and concepts into concrete physical products. Production involves the step by step conversion of one form of material into another through mechanical processing or assembling so as to create or enhance the utility of the products or services. Production Management deals with decision making related to production process so that the resulting goods or services are produced according to specification in the amounts and by schedule demanded and at minimum cost.
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Tyco Electronics The production process at Tyco comprises of 4 main functions: Pre Stocking Pre Assembly Level 1 Final Assembly and Quality check Packaging
Materials Department:
Materials department is a separate headed by senior manager. Under him deputy manager, assistant manager and executives are working. The material department gets requirement from the PPC (Production Planning and Control) department. As soon as the requirement is received, the manager obtains quotations from the suppliers. Then the price is tabulated. The decision-making is obviously based on the actual requirements. The material department purchases raw materials like capital items, package materials and engineering spare parts. Before purchasing the materials are examined by the qualified technical team. So that good material purchased at minimum cost
Productions planning and controlling (PPC):

It plays very vital role in production process. PPC includes planning, routing, scheduling and controlling. The main purpose of this department is to maintain process and meet customer demand well with the time. In Tyco, this is located in the factory and controls all over production. The PPC department is informed the requirements from marketing department. According to the requirement, it prepares production schedule. All the sub department of the production have to fallow that schedule. It co-ordinates with departments like production and marketing.
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Tyco Electronics
Finance Department: Finance is the lifeblood of any organization. Hence it becomes very important to manage finance properly. It knits the financial system directly contributing to the growth of the organization and hence the economy. Like the other companies the finance department in the company, does not have separate department for accounting and costing, both accounting and costing operation are done in single department. Finance manager heads the financial department of Tyco. These managers are responsible for co-ordination of financial department with banks, income tax dept., sales tax dept. and giving suggestions to the director regarding further investment. Financial executives are in change of accounting supervision and salary. Main functions relating to accounting aspects are: Passing of journal entries for day to day transactions. Calculation of IT liability and its payments. Issue of cheques for salary payments to employees. Payment to suppliers from whom the materials are bought. Writing of bank books. Maintaining fixed assets register and preparation of depreciation schedule. Preparing the balance sheet. Providing information on cash position of the organization.
The system of costing practiced by the company is the process costing; the overall financial position of the company has been very good indicating its steady growth.
Marketing Department For every organization to carry out its sales efficiently and effectively what they need is good marketing department. It is the process of planning and executing the conception, pricing, promotion and distribution of goods and services and ideal to create exchange with target group that satisfy customer and original objectives
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Tyco Electronics
CHAPTER III SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment it is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strength, weakness, opportunities, and threats. Strength and weakness are internal factors opportunities and threats are external factors. What makes SWOT powerful is that, with a little thought it can help you uncover opportunities that you are well placed to take advantage of. And by understanding the weakness of your business you can manage and eliminate threats that would otherwise catch you unaware. A word of caution, SWOT analysis can be very subjective. Do not relay on SWOT too much two people rarely come up with the same final version of SWOT.
SWOT Analysis of TE Connectivity
3.1. Strength:
Huge Market share: Tyco has a market share of above 65% makes of companies have the monopoly in the country and dominant players in the market. Manufacturing Simplification: Migrating facilities from higher-cost to lowercost countries, consolidating within countries, and transferring product line to lower-cost countries. These initiatives are designed to help & maintain competitiveness in the industry, and position Tyco for profitability growth in the years ahead. Customer Service: high customer satisfaction due to high customer oriented design and requirements. Quality Achievement: it has high quality progress among the various players in the market. Pricing: depend on the R&D and design evaluation and quality assurance. It has a competitive pricing strategy and negotiation is hardly done with the customers.
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Tyco Electronics
Delivery: timely distribution and timely service to the customer. Have a direct and easy distribution channel which reduces various indirect and unnecessary costs. Economies of scale are maintained in this process.
Financial Stability: no capital borrowings from any financial institutions or any banks, debt ratio is not there. Continuous progress in the profit helps the company to take more new profitable projects. Financial budgeting is done for the up-coming years and reviewed at every quarters depending upon the market response for the effective and efficient use of funds.
Adaptability: the company has easy adaptability towards the competitive and changing market situations. Brand Strength: they are well known in the business market and all the dealings are done at the business level where the customer approaches direct. They have earned the goodwill by providing the better quality products and customer satisfaction.
Ethics: it follows the very good ethical business and they take the customer complaints seriously and continuous development is been done to reduce the customer complaints and they are transported when it comes to quality.
3.2. Weakness:
Low margins and returns Communication Barriers: among the department. Dependence on specific end markets Location: there are only few numbers of locations to supply to customers compared to competitors where as they have so many branches all over India. Infrastructure: no proper planning in the inventory because of which the stocks get piled up and which increase the cost to the company ultimately resulting in the less profit margin. To increase the layout space they need to maintain the proper control on the inventory. there is no proper flow of information
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Tyco Electronics
3.3. Opportunities:
Positive outlook for global integrated telecommunications market Quality: Achievement in quality standards globally. Robust growth in consumer electronic industry. Expansion of assembly plants in various parts of the company to attract huge customer proportion nationally. New product diversification and development continuous increase in performance and economic growth nationally and globally. Public Relation: it is good and always thinking of making it better. Political Factor: acquiring of government and political support and polices helped this organization towards a better environment and provides the opportunity for growth. Competitors and Competitive action :since they are having better technology and the quality products because of which they are able to enjoy good demand in the market and always moving towards more market share capturing and leaving no space for the new entrance and also becoming threats for the other competitors.
3.4. Threats:
Tyco is only facing threats from the chines market because they are the bulk producers and able to provide the products at the cheaper price. Unfriendly environment regulation. High labour Turnover: experienced employees are moving out and because of which it increases the cost to the company. Economic slowdown in US. Inventory level: increase in the unnecessary stock causes the financial deficits.
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Tyco Electronics
CHAPTER IV ANALYSIS OF FINANCIAL STATEMENT Introduction:

For any company in the competitve world it is separately identified and gets its recognition, only whrn they stable competitive edges. Here are some aspects that increase the TYCOs corporate stability:
Creation Of Shareholders Value:

The shareholders values are highly dependent on the performance of market growth of the company. When sales increases, profit increases and market stability of the company increases and that increases the intrest of the public to invest more in the company shares and also earning per share increases when there is huge profit and intern divident paid to them increases and their value increases. Highlights Entered into an agreement to acquire ADC to establish TE as a world leader in providing connectivity for broadband networks. This merger, which was completed in FY2011, will add revenue to the company. Grew its China automotive business 66% in FY2010 compared to the market growth rate of 50%. Made three technology acquisition to strengthen its product range and technology base in fiber optic connectivity, magnetic for high-speed data communication and touch technology. Expanded emerging market engineering by 45% in China, India and Brazil in FY2010, Substantially complete the transformation of its electronic distribution channel, which accounts for about 15% of its revenue. The transformation will enable Tyco to better focus on large and small customers.
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Tyco Electronics
Products Wise Net Sales Tyco net sales reporting segment as a percentage of its total net sales was as follows: (Table No-4.1) Products Electronic Components Network Solutions Specialty Products Subsea Communication Total 100% 100% 100% 14% 13% 06% 17% 14% 11% 15% 12% 08% Fiscal 2011 .67% Fiscal 2010 58% Fiscal 2009 65%
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Markets Wise Sales Tyco sells its products to manufacturers and distributors in a number of major markets. The approximate percentage of our total net sales by market in fiscal 2010 was as follows: Markets Percentage Automotive Telecommunications Industrial Computer Energy Aerospace, Defence, and marine Appliance Enterprise Networks Service Providers Medical Others Total 35% 16% 9% 8% 7% 5% 5% 4% 4% 3% 4% 100%
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Tyco Electronics
Financial Statement (Table No-4.2) Statement of Operations Data 2011 2010 2009
($ in millions) ($ in millions) ($ in millions) Net Sales Cost of Sales Gross Margin Selling, general, and administrative expenses Research, development, and engineering expenses. Acquisition and integration costs Restructuring and other charges, net Pre-separation litigation charges (income) net Impairment of goodwill Operating income (loss) Interest income Interest expense Other income (expense), net Income (loss) from continuing operations before income tax Income tax (expense) benefit Income (loss) from continuing operations Income (loss) from discontinued operations, net of income tax
$12,070 $8293 $3777 $1538
$10,256 $7720 $2536 $1408
$14,373 $10,200 $4173 $1573
$585
$436
$593
$08 $137 $(7) $375 $144
---
--$219 $22
--$1516 $20 $(155) $(177) $1558
$3,547 $3474 $17 $(165) $(48) $(3670)
$103 $,663 $32 $(190) $486 $1991
$(493) $1065
$567 $(3103)
$(554) $1437
$44
$(156)
$255
Tyco Electronics
Net income (loss)
$1109
$(3259)
$1692
Less: net income attributable to noncontrolling interests Net income (loss) attributable to Tyco Electronics Ltd.
$(6)
$(6)
$(5)
$1103
$(3265)
$1687
Highlights
Net sales increased $1,814 million, or 17.7%, to $12,070 million in fiscal 2011 from $10,256 million in fiscal 2010. In fiscal 2010, net sales decreased $4,117 million, or 16.7%, in fiscal 2011. On an organic basis, net sales increased $1,712 million, or 16.7%, in fiscal 2011. The increase primarily resulted from strong growth in our Electronic Components segment and, to a lesser degree, our Speciality products segment, partially offset by a decline in our subsea Communications segment. On an organic basis, net sales decreased $3,542 million, or 24.6%, in fiscal 2010, primarily as a result of declines in its Electronic Components, Specialty Products, and Network Solutions segments. In fiscal 2011, foreign currency exchange rates positively impacted net sales by $188 million, or 1.8%. Foreign currency exchange rates, primarily the Euro, negatively impacted net sales by $474 million, or 3.3%, in fiscal 2010. Price erosion adversely affected net sales by $169 million, $187 million, $187 million in fiscal 2011, 2010, and 2009, respectively.
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Tyco Electronics
CHAPTER V LEARNING EXPERIENCE

The main purpose of the organization study is to make the student acquainted with the practical knowledge about the overall functioning of the organization. It gives the opportunity to study the human behaviour and also makes one ready to face different situations, which normally would come across while work in the office or factory environment. Successful identity: Tyco entered into an agreement to acquire ADC to establish TE as a world leader in providing connectivity for broadband networks. This merger, which was completed in FY 2011, will benefit a lot to increase its annual revenue. Departmental study: the visit to various departments gave an idea about the importance of each department and their contribution towards the achievements of the company objectives Production: I learnt about concepts such as multi elimination and 5S which explains about defect identification and reduction and economic utilization of resources. Human resources: I had seen friendly relationship among staffs in working environment. There is high employee motivation and satisfaction where open door policy makes the employee easily get rid from their grievances and high flow of thoughts and participation. Research and development: I learnt about new products and developments.
Assembly line visit: the assembly line in Tyco is carried on the basis of customer cell concept. In this the total production is divided into three groups with the cell wise responsibility from production to dispatch including solving process related quality issue etc. each cell consist of cell in charge and two team leaders. This cell is mainly created with the purpose of excelling the customers expectation in terms of quality, delivery and competitive environment. Interaction with department heads: the interaction with different department heads explained me about the unity among them. In satisfying the company needs. The company always tries to feel the pulse of the customer because customers are the purpose of the business.
Tyco Electronics
Tyco is a global company a world leader in connectivity with approximately 79,000+ employees operating from locations in over 50 countries; 11 global design centers; approximately 7,000 engineers located close to customers; and more than 5,000 sales professionals serving customers in more than 150 countries. During the ten weeks, it was totally a new experience entering into the organization. Most of the time was spent visiting various places in the factory, various departments, interacting with people etc.
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Tyco Electronics
CHAPTER 6
A STUDY ON INVENTORY MANAGEMENT 6.1 STATEMENT OF PROBLEM

A study of inventory management at TE connectivity is undertaken in order to know the inventory performance and position of the company and to know the strength and weakness and to assess the profitability of the company. Inventories constitute most significant part of assets of large majority of the companies in India. Inventory a double edged sword is usually an asset of an organization, if not used properly it will become liability. It is therefore 0overcome unnecessary investment. And To identify the problems/challenges involved in the Inventory Management process at TE connectivity.
6.2 OBJECTIVES OF THE STUDY

The main objectives of the study are:-
OBJECTIVES:
To study the Inventory Management System followed in Tyco Electronics. To study the growth and various turnover ratios of inventory management at Tyco Electronics. To study the proposition trends in Total Inventory in Total Cost of Production. To know the inventory performance be analysing the data using Ratio and Statistics. To suggest measures for improving the Efficiency in Inventory Management at Tyco Electronics Ltd.
6.3 Scope of the study

This study is to find the facts and opinions of inventory management and control at plant. In accordance with the present trends it aims mainly at finding out the inventory control procedures at TE. This study gives the brief information about the inventory management of the indo TE The study was done by using annual reports, inventory manualetc.
6.4 Methodology of data collection

a) Primary data
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Tyco Electronics The primary data is collected by personal interviews with officials. b) Secondary data Files, annual reports, periodicals, manuals and text book. Which have already been passed through the statistical process are the secondary data used. c) Field work This was under taken individually to collect various information regarding the study by visiting following sections. Stores department Information regarding stocking of materials receipts and issues to workshops. Inventory control procedures in various wards inside the through department were obtained. Accounts department Remaining all the information was obtained from accounts department personal interviews with section officials.
Plan of analysis
The analysis and interpretation was collected from finance department thus processed and tabulated is in the form of tables and graphs. The table thus obtained by calculating average, percentage, turnover ratio, graphs and diagram in respect of the stock of raw materials sales & inventory control procedures and thus to draw conclusion from the analysis done.
6.5 Limitation of the study.

The information, which was needed, could not be made public by the organization The study are related to TE Bangalore only The finding and suggestion cannot be generalized. The study covered a wide concept hence wide collection and coverage of information was not easily possible.
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Tyco Electronics
Operational Definition of the Concept: Inventory: The raw materials, work-in-process goods and completely finished goods that
are considered to be the portion of a business's assets that are ready or will be ready for sale. Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners.
Working capital: A measure of both a company's efficiency and its short-term financial
health. The working capital ratio is calculated as: Working Capital= Current Assets Current Liability Working capital is the amount of funds in current use in the operation of business. It can also be regarded as that portion of firms total capital which is explained in short term operations. Working capital need not be in cash, It can be in the form of assets that can be turned into cash within one year. Working capital circulated within the firm by revolving from one form to another: cash, inventories, accounts receivable.
Normal Idle Time: Normal idle time is regular and mainly due to unavoidable reasons:
Time required going to department. Waiting time in changing jobs and machines. Time taken in receiving instruction from foreman.
Current Assets: current assets are all those assets which changes their form and substance and which are ultimately converted into cash during the normal operating cycle of business i.e. 12 months. In short all those assets which are charged into cash within a year are called current assets.
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Tyco Electronics Current Liabilities: Current liabilities, refers to all short term obligation or liabilities which are required to be replied within a period of one year out of short term or current assets. They include bills payable, sundry creditors, bank overdrafts etc.
Value of Production: value of production can be expressed as: sales + closing stock of finished goods and work in progress, opening stock of finished goods and work in progress.
Inventory of Working Capital: It is liquidity and also which helps to measure the short term solvency of any company. This ratio indicates the proportion of working capital tied up in inventories or stock. Operation is equal to inventory divided by working capital multiplied by 100.
Inventory turnover ratio: Inventory turnover ratio or stock turnover ratio is that ratio which indicates the number of times of stock is turned over during the year. Inventory management: inventory in general means stock of goods. It constitutes the most significant part of any companys current assets: they constitute approximately 60% of the current assets in public limited companies in india. Because of the large size of inventories maintained by the firm, a considerable amount of funds is required to maintain them, it is, therefore absolute imperative to manage inventories effectively and efficiently in order to avoid unnecessary investment.
The area of inventory management covers the following individual phases: o Determining the size of inventory to be carried. o Establishing the timing schedule and procedures and lot size of new order. o Ascertaining minimum safety levels. o Co-ordinating sales, production and inventory policies. o Providing proper storage facilities. o Arranging the receipt. o Developing the forms of recording these transactions. o Aligning responsibilities for carrying out the inventory control functions.
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Tyco Electronics Need for Holding Inventories: The question of managing inventories arises only when the company holds inventories. Maintaining inventories involves trying up of the companies fund and incurrence of storage and handling costs. If it is expensive to maintain inventories why do companies hold inventories?
There are general motives of holding inventories:
Transaction Motive: which emphasizes the need to maintain inventories to facilitate smooth production and sales operation?
Precautionary Motive: which necessitates holding of inventories to guard against the risk of unpredictable in demand and supply forces and other factors?
Speculative Motive: which influences the decision to increase or reduce inventory level to take advantage of price fluctuations. Thus a company should maintain adequate stock of materials for a continuous supply to the factory for an uninterrupted production.
The specific benefits that accrue from holding inventories are:
Avoiding lost of sales: Without goods on hand, which are already to be held, most firms would lose business. Though some customers are willing to wait if goods are no available, this cannot be taken as a breathing space for not holding inventory. It may so happen in the absence of inventory that the customer not getting goods from the company may look towards company competitors.
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Tyco Electronics
Gaining quantity discounts: In returns for making bulk purchases, the supplier of goods may give discount on the price of supplies. Thus the willingness of the company to buy in bulk and get discount on regular price will reduce the cost of goods sold there by contributing to profit margin.
Achieving efficient production runs: Each time a firm sets up workers and machines to produce
An item, starts-up cost is incurred. These are then absorbed as production begins. The longer the runs, the smaller the cost to begin producing the goods, longer runs involve lower costs as compared to frequent setups. Their benefits arise because inventories provide a buffer between purchasing and marketing goods.
Check the seasonality of materials: It is well known that certain materials are available only in particular season. This is very much true in agro-based industries. This necessitates the company to procure its entire production ends in that season and take the risk of storage of materials. Thus holding of inventories in this case provides a vital link in continuation of production.
Objectives of Holding Inventories:
To maintain a large size of inventory for efficient and smooth production and sales operation. To minimize investment in inventories and maximize profitability, both excessive and inadequate inventories are not desirable, these are two danger points with in which firm should operate.
The objective of inventory management should be to determine and maintain optimum level of inventory investment. The optimum level of inventory will lie between two danger points of excessive and inadequate inventories. The firm should always avoid a situation of over investment or under investment in inventories.
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Tyco Electronics The major dangers of over investment are: The necessary tie-up of firms funds and loss of profits. Excessive carrying costs. The risk of liquidity.
The excessive level of inventories consumes funds of the firm, which cannot be used for any other purpose and thus it involves an opportunity cost. The carrying costs such as the costs of storage handling, insurance, recording and inspection. In proportion to the volume of inventory. These costs will impair the firms profitability further. The aim of inventory management thus should be to avoid excessive pilling up of inventory and facilitate smooth functioning of production and sales operation,
An effective inventory management should: Ensure a continuous supply of materials to facilitate uninterrupted production.
Maintain sufficient stock of raw materials In periods of short supply and anticipate price changes.
Maintain sufficient finished goods inventory for smooth sales operation and efficient customer services.
Minimize the carrying cost and time.
Control investment in inventories and kept it an optimum level.
Overhead Costs Associated with Inventories:
Material Cost: These are the costs of purchasing the goods including transportation and handling costs.
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Tyco Electronics Ordering Costs: Ordering costs are the costs that are associated with the preparation of purchase order and follow up measures taken by the purchase department, transportation of materials ordered from inspection and handling at the warehouse for storing. The larger or more frequently orders are made, the higher are such costs. Placing fewer order of larger amount can minimize these costs.
Carrying cost: These are the expenses of storing goods, these costs include insurance, rent or depreciation in warehouse, salaries of stores keepers, security personnels financing costs of money locked up in inventories, obsolescence, spoilage and taxes, by and large, carrying costs are considered to be given percentage of the value of inventory held in the warehouse, despite some of the fixed element of costs which comprise only a small portion of total carrying costs.
Cost of Funds tied up with Inventory: When a firm commits its resources to inventory, it is using funds that otherwise might be available for their purpose. The firm has lost the use for other profit making purpose, which is termed as opportunity cost.
Cost of Running Out of Goods: This cost associated with the liability to provide materials to the manufacturing operation and to the marketing department. If requisite inventories are not available these costs constitute both quantitative and qualitative dimension.
Inventory Valuation
Many method of materials costing and inventory valuation has come into use among them the most common methods of materials costing and valuing inventory
First in First out Method: Here the earliest acquired stock is assumed to be used first. The stock which is bought first is issued first. In other words the principle is that the materials are issued in this order and at the price of their original purchase.
This method is claimed to be accurate for the reason that the materials are charged into production at actual cost in order of receipt. The closing inventories are valued at the most recent prices. If the closing inventory balance includes materials at several different prices, the problem of considerable clerical work is involved. This method
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Tyco Electronics assumes that the order in which materials is issued from the stores. Hence the materials with this issued first are priced on the basis of cost of material received earliest.
Last in last out Method: this method is opposite of the FIFO method. It assumes that the manner at which is acquired last is issued first. Hence materials issued are priced on the basis of the cost of recent purchases.
Weighted Average Cost Method: under this method issues are priced at the weighted average cost of materials in stock the weights being proportionate to quantities. To get total weighted average cost figures, a new weighted average cost is calculated each time a delivery is received.
Standard Price [Cost] Method: under this method a standard price is pre-determined when materials are purchased the stock account is debited with standard price. The difference between the actual price and the standard price is carried to a variance account. Material issued is charged as per the standard price. Current price method: according to this method issues are prices at their replacement or realizable prices at the time of issue. Simple average method: under this method, materials issued are valued at average price. It is calculated by dividing the total price of the materials in the stock, from which the material to be priced could draw by the number of prices could draw by the number of prices used in that total.
The issue price is determined as follows: Issue price = unit price of material in stock / number of purchases.
Inventory Control Techniques

Several techniques of the firm can be adopted any of the techniques. The ultimate objectives of inventory control programmers are to provide customer satisfaction at a minimum cost. What should be stressed however is the need to cover all items of inventory
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Tyco Electronics and all stages i.e. from the stage of receipt from supplier to the stage of their use. Some of the inventory control techniques are discussed below: Always better control (ABC) classification. High, medium and low (HML) classification. Economic order quantity (EOQ). Fast moving, slow moving, and non-moving (FNS). Material requirement planning (MRP).
Always Better Control (ABC) Classification: one of the widely used techniques for control of inventories is ABC analysis. An ABC analysis offers an important solution to the problem of a scientific planning and control of inventories and is an important technique of inventories management. It is based upon the value of different items constituting an inventory. The idea underlying an ABC analysis is in the recognition of the principle that some items of inventory are more important than others. Thus items are classifies under broad categories A,B and C which may differ from unit to unit. The ABC technique enables an enterprise to keep its investment low and avoid stock outs of critical items. Its objective is to reduce the minimum stock as well as the working stock. Generally a category items constitutes about 70% of the total value and about 15% of its total number. An item of low value constitutes 10% of the total value and about 60% of the total number. An item of category constitutes about 20% of the total value and about 25% of the total number. Items of A category are subjected to strict control with regard to purchase, storage and use items of B category are subject to moderate control. Items of C category are not subjected to much control.
High, Medium and Low (HML) classification: The classification is made in the basis of unit value of an item. Some items may be low classification follows the same procedure adopted in the ABC classification. Only difference is in (HML) classification, value is the criterion and not the annual consumption value.
Economic Order Quantity: There are two basic questions related to inventory management. What should be the size of the order? At what level should the order be
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Tyco Electronics placed? The determination of the appropriate quantity to be purchased in each lot to replenish stock as the solution to the order quantity problem necessitates resolution of conflicting goals. The optimum level of inventory is popularly referred as economic order quantity, it is also known as the economic lot size. The economic order quantity may be defined as that level of inventory order that minimizes the total cost associated with inventory management. The cost associated with inventories are ordering cost and carrying cost. EOQ refers to the level of inventory at which the total cost of inventory comprises acquisition or ordering cost is minimal.
FNS Analysis: for the purpose of control. Companied classify items into fast moving, slow moving, non-moving categories. Unfortunately companies do not dispose of non-moving items swiftly.
Material Requirement Planning: MRP is essentially a computerized planning and control system for the effective management of production and inventory in the manufacturing environment. The objective of the environment system is to order just the right parts in the quantity at the right time.
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CHAPTER VII ANALYSIS AND INTERPRETATION 7.1 Table Showing Value of Raw Materials to Total Inventory
In the table an analysis is made to study the performance of raw material to total inventory for a period of 5 years. Calculations: Value of raw material to total inventory turnover percentage is equal to raw materials divided by total inventory multiplied by 100
Table No 7.1 Year Raw materials (In millions $) 2007 2008 2009 2010 2011 279.50 331.05 375.60 408.75 364.80 Total Inventory (In millions $) 792.3 891.15 946.05 1009.65 860.70 Turnover Percentage 35.25 37.14 39.70 40.48 42.38
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Graph Showing Value of Raw Materials to Total Inventory. Graph No 7.1
Value of Raw Materials to Total Inventory

45 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011
Interpretation:
The above table summarizes the turnover of raw materials to inventory from the year 2007 to 2011 In the year 2007 there is 35.2% of raw material consumption. In the year 2008 there is again increase in the raw material consumption of 37.14% In the year 2009 also there is again increase in the raw material consumption of 39.7%. In the year 2010 and 2011 there is again increase in the raw material consumption 40.48% to 42.38% There is high consumption of raw material in the year 2011. The decrease in percentage of raw material to total inventory shows the effectiveness utilization of raw material and decrease in the expenditure. Here there is a continuous increase in the percentage of raw materials consumption i.e. from year 2008 to 2011. Increase in percentage of raw materials consumption shows an expense in purchase of raw material.
Tyco Electronics
7.2. Table showing value of work in progress to Total Inventory
In this table an attempt is made to study the performance of work in progress to total inventory.
Calculations:
Value of work in progress (WIP) to total inventory turnover percentage is equal to WIP divided by total inventory multiplied by 100.
Table No 7.2 Year WIP (In Million $) 2007 325.5 Total Inventory Turnover (In Million $) 792.3 Percentage 41.0
2008 2009
368.1 366.0
891.15 946.05
41.3 38.6
2010 2011
378.15 307.95
1009.65 860.70
37.4 35.7
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Graph Showing Value of Work in Progress to Total Inventory Graph No7.2
Interpretation
The above table summarizes the turnover of WIP to total inventory from the year 2007 to 2011 In the year 2007 an initial turnover of 41% is observed of WIP to total inventory In the year 2008 it is again observed that there is increase in turnover to WIP to total inventory of 41.3%. In the year 2009 here is decrease in the turnover of WIP to total inventory of 38.6%. In the year 2010 and 2011, also there is decrease in the turnover of WIP to total inventory of 37.4% to 35.17%. From the above data it is inferred that work in progress has been fluctuating and the production was considerable reduced. WIP contribute to sales of the company which has to be increased ultimately leading the company to make more profits. Therefore the company can increase the portion of WIP to earn more profits.
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7.3. Table Showing Value of Total Finished Goods to Total Inventory

In this table an attempt is made to study the performance of finished goods to total inventory.
Calculation:
Value of total finished goods to total inventory turnover percentage is equal to total finished goods divided by total inventory multiplied by 100.
Table No 7.3
Total Finished Year Goods (In Millions $)
Total Inventory (In Million $)
Turnover Percentage
2007
187.2
792.3
23.62
2008
192.0
891.15
21.54
2009
204.45
946.05
21.61
2010
222.75
1009.65
22.06
2011
187.95
860.70
21.83
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Tyco Electronics
Graph showing Value of Finished Goods to Inventory Graph No 7.3
Interpretation:
The above graph summarizes the turnover of finished goods to total inventory from the year 2007 to 2011. In the year 2007 it is observed that the turnover of finished goods to total inventory is 23.28%. In the year 2008 it is observed that the turnover of finished goods to total inventory is suddenly declined to 21.54% In the year 2009, there is slight increase in the turnover percentage of finished goods to total inventory to 21.61%.
In the year 2010 and 2011, there is again increase and decrease in the turnover
percentage of finished goods to total inventory of 22.06% to 21.83%.
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Tyco Electronics From the above data it is inferred that the finished goods have been fluctuating and the production has considerably decreased in the year 2011. Finished goods contribute to sales of the company which to be increased and leads to increase in the profits for the company. Therefore, the company has to increase its finished goods considerably to increase the sales and profit of the company.
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Tyco Electronics
7.4. Table Showing Analysis of Growth of Inventory over Last 5 years.

Here attempt is made to study the growth of inventory in Tyco India private limited, on a period of five progressive years i.e. from 2007 to 2011. In this table an attempt is made to study the growth of inventory for 5 years.
Calculations;
Calculation of percentage growth is equal to current year inventory minus previous year inventory divided by base year multiplied by 100.
Table No 7.4 Year Total inventory (in million $) 2007 792.3 ----Growth in Percentage
2008 2009 2010 2011
891.15 946.05 1009.65 860.70
12.48 6.16 6.72 14.75
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Tyco Electronics
Graph Showing the Trend in the Growth of Inventory over Last 5 Years Graph No 7.4
Growth of Inventory
16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011
Interpretation:
From the above analysis the growth of inventory in Tyco India private limited from the base year. The remaining percentage is calculated based on this year. In this table there is increasing trend in the inventory consumed by the organization. The inventory growth at the year 2008 was very high rate till the year 2010 it is also noticed that at the beginning of the year 2008 and also ending year 2011 the inventory growth is decreasing. Thus the companys inventory has been fluctuating over the year. The increase in growth of inventory shows that the organization has not utilized its resources effectively. The decrease in the growth of inventory shows that the organization has effectively utilized its resources.
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Tyco Electronics
7. 5. Table Showing Value of total Inventory to Total Current Assets

Here an analysis is made to study the performance of current assets. This is an overall analysis or a broad analysis of what amount of inventory is blocked up in current assets is studied.
Calculation:
Total inventory to total current assets turnover percentage= total inventory divided by total current assets multiplied by 100.
Table No 7.5
Year
Total inventory (in million $)
Total current assets (in million $)
Turnover percentage
2007
792.3
$7,245
10.93
2008 2009 2010 2011
891.15 946.05 1009.65 860.70
$10,545 $7,635 $5,579 $6,731
8.45 12.39 18.09 12.79
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Tyco Electronics
Graph Showing increase in the value of total Inventory to Total Current Assets. Graph No 7.5
Value of Total Inventory to Total Current Assets

20 18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011
Interpretation
The table above summarizes the value of total inventory to total current assets from year 2007 to 2011. In the year 2007 the initial turnover of inventories to total current assets is 10.93% In the year 2008 the turnover of inventories to current assets is 8.45% which shows decline in the value. In the year 2009, there is sudden increase in the turnover of inventories to current assets i.e. 12.39%. In the year 2010 there is further increase in the percentage of the turnover of inventories to total current assets is 18.08%.
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Tyco Electronics
In the year 2011 there is decrease in the turnover of inventories to total current assets to 12.77% the value is continuously fluctuating.
Here observed from table that there is slight decrease in the first two years in the initial stage, but later there is rapid increase of the turnover inventories to total current assets in the last 2 years. The rising depicts the purchases of material in the company and decrease in the year 2008 and 2011 depicts that there is an effective utilization of material and the company had made sales.
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Tyco Electronics
7.6. Table Showing Inventory Turnover Ratios

This is one of the most indications of inventory performance as it indicates the number of times inventories working capital has turned over or in other words it indicates the return of working capital employed. A slow turnover results in over investment in inventories and rapid turnover contributes to a higher working capital.
Calculation of Inventory Ratio: Inventory ratio is equal to net sales divided by

average inventory. Average inventory is equal to opening stock plus closing dividend by 2
Table No 7.6
Year
Sales (in million $)
Average inventory
Inventory turnover ratio(no of times)
2007
$11.432 -
2008
$12,574 773.1 16.26
2009
$14,373 829.95 17.32
2010
$10,256 865.2 11.85
2011
$12,070 874.65 13.80
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Tyco Electronics
Graph Showing Value of Inventory Turnover Ratios: Graph No 7.6
Value of Inventory Ratio

20 18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011
Interpretation:
From the above graph it can be observed that the percentages of ratios are fluctuating over a period of years. It is observed in year 2008 the percentage of ratio is 16.50%, there is further in over the next year 2009; but there is decrease in year 2010 and slight increase from 2010 to 2011. From this it is observed that the ratio of inventory to sales is fluctuating and the company is trying to maintain a stable ratio
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Tyco Electronics
7.7. Table Showing Inventory Holding Days
Calculation of Inventory Holding Days

The reciprocal of inventory turnover given average inventory holding a percentage term. It us calculated by dividing the inventory by sales
Calculations:
Days of inventory holdings is equal to inventory multiplied by 365 days divided by sales
Table No7.7 Total Year Sales (in million $) 2007 $11.432 inventory (in million $) 792.3 25.30 Holding Days
2008
$12,574
891.15
25.87
2009
$14,373
946.05
24.02
2010
$10,256
1009.65
35.93
2011
$12,070
860.70
26.03
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Tyco Electronics
Graph Showing the Inventory Holding Days Graph 7.7
Days of Inventory
40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011
Interpretation:
The days of inventory holdings is 25.29 days in year 2007, and each year it is slightly fluctuating. But the days of holding inventory have gone up to 35.93 days in 2010 and further it is decreased to 22 in the year 2010.
The company is also able to achieve till lower holding days by better management in inventory.
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Tyco Electronics
7.8. Cost of Total Inventory in Total Value of Production

To study the cost of inventory in the total value of production the value of production of last 5 years and the cost of total inventory are analysis have to know what percentage on inventory contributes to the value of production.
Calculations:
Value of Production= Sales + closing stock opening stock Turnover in Percentage= total inventory / value of production * 100
Table No 7.8 Total Year inventory (in million $) 2007 792.3 Value of Production (in million $) 9343.05 8.48 Turnover in Percentage
2008
891.15
9192.0
9.69
2009
946.05
10129.0
9.34
2010
1009.65
9602.2
10.51
2011
860.70
7836.01
10.98
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Tyco Electronics
Graph showing the cost of total Inventory in value of production over a period of 5 years.
Graph No 7.8
Turnover In Percentage
12 10 8 6 4 2 0 2007 2008 2009 2010 2011
Interpretation:
It is observed that in the year 2007, the percentage of inventory in the value of production in 8.48 which is moderate compared to other years
It is observed in the year 2008, the percentage of inventory in the value of production is 9.69% which are slightly higher than the previous year, which shows a considerable increase in inventory cost and has been less effective utilization of the resources.
In the year 2009 the percentage of inventory in the value of production is decreased from 9.69% to 9.34% which shows a slight decrease in the cost compared to 2008.
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Tyco Electronics
In the year 2009 and 2010 there is again drastic increase on the turnover percentage.
Therefore, it is concluded that the cost has increased to an incredible level of 10.98. The increase in cost in last year had decreased the production level in the company. Through which company has not earned much profit. This company can still further aim in the reduction of cost to facilitate effective utilization of the stock.
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Tyco Electronics
Chapter VIII
FINDINGS, SUGGESTIONS, AND CONCLUSION
8.1 Findings
There is a continuous increase in the percentage of raw materials consumption i.e. from year 2007 to 2010. Increase in percentage of raw materials consumption shows an expense in purchase of raw material. It was observed that major components that form inventory have been fluctuating over the year. This is due to change in production schedule. Value of total inventory to total current assets, there is slight decrease from first to second year in the initial stage. But there is a rapid increase in the last 3 years. The rising trend depicts the purchases of material in the company and decrease in the year 2009 and 2011 depicts that there is an effective utilization of material and the company had made sales. The inventory turnover ratio in the year 2008 is 16.50 %, in the year 2009 is 17.31% and in the year 2011 is 13.80%. Inventory holding days have been fluctuating between 24 and 36. The inventory ratio has been fluctuating and the company is trying to maintain a stable ratio. There is increasing in the inventory cost to an incredible level in the year 2010 of 10.98% which has decreased the production compared the early years. Through which company has not earned much profit. The important techniques adopted by Tyco for inventory control system are ABC analysis and FNS analysis. There is increase in the total assets and total working capital year by year. The Finance Department will strictly follow billing system and proper maintenance of records. This has led to good performance by department by department without any misrepresentation and mistake.
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Tyco Electronics
8.2 Suggestions
Based on the findings, the following suggestions are made: It is suggested to follow EOQ model for effective purchase of timely requirement. The company has to strictly follow the production schedule so to improve inventory management. It is also suggested to fallow scientific method like JIT just in time effectively. It is suggested that ABC and EOQ classification to be reviewed periodically. The company can reduce the cost involved in carrying these materials in order to increase the profitability of the company. Better coordination between production, marketing and finance department will help in achieving greater efficiency. Effective measure can be taken to reduce Non-moving items, which are leading to blockage of funds.
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Tyco Electronics
Conclusion
On the whole the domestic market in India is very attractive from the point of view of the Electronics sector, and current trends indicating high growth potential for the sector in the future. The company being the best in India has the right set of plans for the future growth and expansion along with the firm inventory management practices being followed there. It certainly has wide opportunity ahead if all the endeavours planned by the company are well executed at the right time.
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Tyco Electronics
Bibliography Books
BS Raman, Management accounting I M Pandey, Financial management (ninth edition) Shashi k Gupta and Neeti Gupta Management accounting and control system. Financial Management, Khan and Jain Tata Mc Graw Hill Website www.tycoelectronics.com www.electronicsarerna.com
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Tyco Electronics

CHAPTER I INDUSTRY PROFILE History of Electronics Industry in India 1.1. Introduction

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The Growth Drivers

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Challenges and Opportunities Challenges

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1.2 .COMPANY PROFILE 1.2.1 Background and Inception of the Company

1.2.2. Nature of the Business Carried

1.2.3 Vision, Mission and Quality Policy: Vision:

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Error-Free Products and Services On Time

1.2.4 Products Profile

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Connector Systems and Components. it offers an extensive range of

Heat Shrink Tubing. It offers hundreds of reliable, cost-effective products

Sensors. It offers a customized engineering portfolio of non-contact position

Antennas. It offers application specific and standard antenna products in a

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Fiber Optics. It manufactures fiber optic connectors, cable assemblies,

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Heat Shrink Tubing. It offers hundreds of reliable, cost-effective products to

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1.2.5 Area of Operation

1.2.6 Ownership Pattern:

1.2.8 Infrastructure Facilities:

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1.2.10. Work Flow Model:

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MOP COP SOP

Management Oriented Process

Customer Orientated process Support Oreintated Process

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1.2.11 Future Growth and Prospects

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CHAPTER II MCKENSYS 7S FRAME WORK

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Production Dept (Manager)

Finance Dept (Manager)

H.R Dept (Manager)

Marketing Dept (Manager)

Deputy and Assistant Manager

Deputy and Assistant Manager

Deputy and Assistant Manager

Deputy and Assistant Manager

Deputy Assistan Manager

Executive and Supervisor

Executive and Supervisor

Executive and Supervisor

Executive and Supervisor

Executive and Supervisor

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Annual Performance Review:

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Detailed Steps Taken to Impart Necessary Skills:

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Retention policy Employees participation in management

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