Faculty Guide:- Prof. A.Mohan Sir.

By SHAKOOR HANIF LAKHANI MBA IV Sem, AGBS, PUNE

The Project aims at finding the efficiency of Inventory Management Technique in SSI. The survival and growth of small-scale industry (SSI) largely depends on its ability to innovate, improve operational efficiency and increase productivity. In order to enable small scale enterprises adopt more efficiently Inventory Management Technique, it is essential to demonstrate positive impacts of using those technique to increase productivity, higher profitability, reducing waste/scrap and also reducing rejection of Material.

 Primary

Objective

To assess the Inventory Management Techniques in Small Scale Industries

Secondary

Objective

To Study the Effectiveness of Inventory Management Techniques in Small Scale Industries

The sector accounts for about 45 per cent of the manufacturing output and 40 per cent of the total exports of the country. The sector is estimated to employ about 59 million persons in over 26 million units throughout the country. It contributes almost 40 percent of the gross industrial value added in the Indian economy. The production of SSI unit in India was Rs 84,413 crore in 1992-93, which increased and reached up to Rs. 9,82919 crore in 2009-10.

Table No. 1 Growth of SSI s Production in India:

Year Production (Rs crore) Current Prices 84413 98796 122154 Growth Rate

TABLE No. 2: Contribution of SSI units in GDP

Gross Domestic Product (GDP) 5.86 6.04 5.77 5.91 5.79 5.84 5.83 7.20 8.00 8.72

1992-93 1993-94 1994-95

4.71 17.04 23.64

Year

Total industrial production

1995-96
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

147712
167805 187217 210454 233760 261297 282270 314850 364547 429796 497842 709398 790759

20.92

1999-2000
13.60 11.57 12.41 11.07 11.78 8.03 11.54 15.78 17.90

39.74 39.71 39.12 38.89 38.74 38.62 38.56 45.62 45.24 44.86

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

15.83 42.49 11.47

2007-2008 2008-2009

2008-09
2009-10

880805
982919

11.39
11.59

Table No. 3 Employment Growth in SSI Sector:

Year 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Employment (lakh person) 174.84 182.64 191.40 197.93 205.86 213.16

Table No. 4: Growth of SSI Exports:

Growth Rate

Total exports
5.33 4.46 4.79

Year (Rs. Crores) 1991-92 44040

Exports from SSI sector Percentage share (Rs. Crores) 13883 31.5

3.42

1992-93
4.00 3.55

53688
69547 82674

17785
25307 29068

33.1
36.4 35.1

1993-94 1994-95

1998-99
1999-00 2000-01 2001-02

220.55
229.10 238.73 249.33

3.46
3.88 4.21 4.44

1995-96
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2002-03 2003-04 2004-05 2005-06

106353
118817 126286 141603.53 159561 202509.7 207745.56 252789.97 252137 291582 375339.52 456417.88

36470
39249 44442.18 48979.23 54200.47 69796.5 71243.99 86012.52 86013 97644 124416.56 150242.03

34.2
33.4 35.19 34.59 33.97 34.47 34.29 34.03 34.03 33.49 33.15 32.92

2002-03
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

260.21
271.42 282.57 294.91 594.61 626.34 659.35 695.38

4.36
4.31 4.11 4.37 101.62 5.34 5.35 5.47

Type of Research Sources of Data Sampling

Descriptive Primary Data

Primary data has been collected through Questionnaire Offline Questionnaire Online Form Telephonic Interview

Size => 30 Secondary Data Design => Non Probability Journals, Summer Internship Technique => Convenience Report, Seniors Dissertation

report, Internet, Government sites (of SSI), etc.

 Questionnaire

(Online, Offline)

Telephonic Software

Interview

Tools (SPSS, MS Excel) Tools (Chi Square, Pictorial Tools)

Statistical

 To

determine whether the Inventory Management Techniques are used in Small Scale Industries (SSI) or not.
determine whether those techniques helps in the overall operations or not SSI should adapt Management Techniques or not. Inventory

To

Whether

 Exploratory

research has been conducted to investigate the effectiveness of Inventory Management Technique in SSI. SPSS software has been used for analysis once the data is collected through the questionnaire. Mode Factor Analysis Chi Square Test

 Percentage

of goods stored in a Small Scale Plant

How much % of good you store

80 - 100 7%

0 - 30 16%

50 - 80 40% 30 - 50 37%

0 - 30 %

30 - 50 %

50 - 80 %

80 - 100 %

 Effectiveness

of the current Inventory Management Technique. 1 Not Effective at all 5 Very Effective
Effectiveness of the Inventory Management Tecnique
1 3% 5 10% 2 17%

4 27%

3 43%

 Overall

Quality of the current Technique.

How would you evaluate the overall qualtiy of this technique

1 7%

2 13% 5 33%

3 20%

4 27%

The SSI should use the Inventory Management Technique if possible on regular basis so that Higher Productivity can be achieved, Cost of the product can be managed, Can earn high profit, Can survive in market for a long time, No shortage can be faced, Condition of the material can be maintained, Quality of the product can be maintained, Systematic flow of overall operations can be maintained.

Thus every possible inventory management Techniques should be used effectively or strictly rather than placing the material or goods anywhere in the unit which will be flexible for own, employees and overall operations

research study on different type of company would provide a good result, good comparison and would give a good statistical analysis.