Professional Documents
Culture Documents
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Preface:It is well evident that work experience is an indispensable part of every professional course. In the same manner, practical training in any organization is must for each and every individual who is undergoing management course. Hence to fulfill this requirement, I completed The TwoMonths Summer Training at HINDUSTAN UNILEVER LTD.TEA FACTORY (Etah Unit). Entering in this organization is like stepping into altogether a new world. At first everything seems strange and unheard but as the time passes I understand the concept and working of the organization and thereby develop professional relationship. I have done my project in a very healthy atmosphere. I learn a lot of things which I could never have been learnt from my theory classes.
2.Payment methods
There are two types of payment methods; exchanging and provisioning Exchanging is to change coin, money and banknote in terms of the price. Provisioning is to transfer money from one account to another. In this method a third party must be involved. Credit card, debit card, money transfers, and recurring cash or ACH (Automated Clearing House) disbursements are all electronic payments methods. Electronic payments technologies are magnetic stripe card, smartcard, contactless card and mobile handset. Mobile handset based payments are called mobile payment.
This protects the financial condition of the firm from a forecast of expected cash inflows and outflows for a given period . Cash planning generally depends upon the size of the firm and philosophy of management. B . For Cash Budget: Most significant device to plan for and control cash receipts and payments. Firms decision for appropriate sources of finance should depend upon factors such as cost and risk. The firm can decide to invest surplus cash in marketable securities and earn profits. Helps to utilize funds in a better way
4. Cash Management
The efficient collection and payment of cash both inside the organization and to third parties is the treasury department .The involvement of the department with the details of receivables and payables will be a matter of policy. There may be complete centralization within a group treasury or the treasury may simply advice subsidiaries and divisions on policy matter viz. collection/payment periods, discounts, etc. Any position between these two extremes would be possible. Treasuries will normally surplus funds in an investment portfolio. Investment policy will consider future needs for liquid funds and acceptable levels of risk as determined by company policy.
Management of Cash
Management of cash is an important function of the finance manager. The finance manager has to provide adequate cash to each of the units. For the survival of the business it is absolutely essential that there should be adequate cash. Financial manager has to ensure that there are no funds blocked in idle cash. Hence, question of costs of idle cash must also be kept in mind by the finance manager. A cash management scheme is a delicate balance between the twin objectives of liquidity and costs.
Transaction Need: Cash facilitates the meeting of day to day expenses and other debt payments. In such cases, it is only the reserve cash balance that can enable the firm to make its payments in time. Speculative Need: Cash may be held in order to take advantage of profitable opportunities that may present themselves and which may be lost for want of ready cash. Precautionary Motive:Cash may be held to act for providing safety against unexpected events.
Payments
Beverages Culinary Products Ice Creams Popular Foods ( Annapurna / Modern Foods ) Oils and Fats
SUPPLY CHAIN
Supply Chain service levels as measured by CCFOT (Customer Case Fill on Time) were the highest achieved in the recent past. IT solutions based on SAP application systems led to significant improvements in planning and logistics efficiencies. The factories made significant progress in increasing plant and operational efficiencies and helped deliver innovations on time while working on improving product quality. The Company's initiative 'Lever care', focusing on connecting with customers and consumers, gave valuable inputs on product performance which helped to understand consumer behavior and to improve the quality of certain products in design and manufacturing.
Storage at factory
Blending
Packing
Dispatch
Bills should be signed by manager. Prepare one cash voucher. Commercial manager has the higher authority to sign the cheque and after that factory manager signs the cheque in the absence of commercial manger.
Structure of Payment
Overall cash payment limit is Rs. 20000. Receipt of cash limit is Rs. 20000. Above Rs.20000 limit payment and receiving is done through cheque.
(a) Factories The Factory management takes a monthly performance review. The key areas covered would be; Trial Balance (Financial Analysis) This is sent to the Head Office after the close of the book month, which primarily gives an indication of the financial performance. Business Analysis (A comparison of the Key Performance Indicators which are driven by the Annual Plan) (b) Branches Trial Balance (Financial Analysis) This is sent to the Head Office after the close of the book month, which primarily gives an indication of the financial performance. Business Analysis (A comparison of the Key Performance Indicators which are driven by the Annual Plan).
Overview
ACTIVITY: Purchases
The management of inventory is the key to efficient working capital management in the units. Units have to ensure that they carry optimum inventory at all points of time. It is with this intention the MRP module of MFGPRO is used for scheduling the purchasing activity.
Procedures
The Unit receives the Replenishment based Distribution Requirement Plan (Indent of Finished goods to the Depots) on a daily basis for the next 8 weeks. Similarly the Central Planning System sends the demand of Promotional Packs on a weekly basis for the next 8 weeks. There could also be manual demands of exceptional nature. These are the inputs for the MRP. The raw material / packing material requirements are also generated in this plan. This takes into account the existing stock of raw materials, pending orders and stock in transit. On MRP having been run the Production Plan is generated. The MRP takes into account the capacity of the unit and schedules the production plan accordingly. In some factories (e.g. GRF) where MRP is not installed the Production Plan is prepared manually on the basis of the above criteria.
Key Risks: The MRP may be run without proper tag count leading to the errors in the Indent generation / supplier scheduling as the physical stocks would not be accurate.
Control Points All unserviceable and open Indents should be closed prior to running MRP. In the absence of closing such indents they would be taken into account during the MRP run thus vitiating the ordering process.
Broadly the following types of materials could be received Raw Material Engineering Stores Packing Materials Procedures;
GeneralThe truck reports at the factory gate and the hand over the challan to the security at the gate. The challan is handed over to the store by the security indicating the date and time of arrival. Stores department checks the challan particulars with the PO particulars. A store directs that the goods can be let in by indicating in the challan or by preparing an Arrival form. This initializes the process of arrivals. Security updates the arrival form (or incoming register where Arrival form is not used) with the details and time of entry in factory. Stores personnel enter the details of challan number, lorry number in Delivery Challan Maintenance Module. Vehicle is brought to the weigh bridge. The weigh bridge clerk checks for any additional items in the vehicle. Gross weight of material is taken and mentioned in the arrival form. The goods are now unloaded at the designated godown and samples obtained for Quality Control department. For some materials QC is made at the time of issue to shop floor and not on arrival.
The Factory is responsible for payment of the freight up to factory for raw materials. Factory also pays the primary freight on finished goods from Factory to CFAs. The freight rates from factories to C&FAs are negotiated with the transporter jointly with central authority by the commercial managers of the unit and the Branch Transport Manager. However, Primary freight payments are made at the branch for dispatches made by 2p/3p factories of HPC. Procedures (Factory) Raw Material Freight Logistics department of the Unit fixes the rates for raw material freight. The freight amount is linked to the Purchase Order. At the time of GRR preparation the freight amount is also calculated and credited to the POR Account. The treatment is different for the following If the raw material is inclusive of freight then entire amount is treated as material cost and the credit stands to POR Account.
If the freight is to be paid separately then the freight amount is treated as a separate tax class in MFGPRO. Finished Goods Freight Primary Freight - Factory The freight rates are fixed by tender every quarter, destination wise. On receipt of acknowledged challan payments are made. In case of GIR claims debit note is received from branches the amount is kept in an Advance Account and adjustment is made on receipt of transporter bills.
Administration and other Miscellaneous Expenses include the following Rates and Taxes, Filing Fees Telephones, Postage & Courier Charges Printing & Stationery Other Miscellaneous Expenses Procedures The bills received are checked and passed by the relevant department and the particulars about the type of expenditure; the due date of payment etc is forwarded with the supporting bills to the Accounts Department. On the payment date, the APV is generated and the cheque prepared and forwarded as per the procedure discussed in Bank Payments. At the end of the month, a provision is made for the expenses accrued. Key Risks Unauthorized payments leading to fraud. Errors in recording leading to wrong accounting. Control Points Ensure that the bills are authorized by the relevant authorities. Management Checks Check that all original supporting are duly attached before passing the bill. Check the arithmetical and accounting accuracy of the bill.
Cash receipts will cover the following Recovery of advance for travel expenses/ other expenses advance from employees Miscellaneous scrap Lunch Coupons Cash receipts on account of other group companies Procedures On receipt of the cash, the cashier will prepare a manual Cash Voucher and get it authorized by relevant authority as per Schedule of Authority (SOA) applicable for the unit before posting. On authorization, the accounting entry is recorded and the Voucher is filed, sorted on document date and number. All the relevant supporting documentary evidences are attached to the voucher to ensure completeness. A manual receipt is issued to the party. Procedures in MFG/PRO as per SOP All cash receipts will be processed through JV module (Ref. MFG/PRO SOP). However, some units follow the procedure of accounting receipts through the AP module. After the cash transactions for the day are prepared the cashier will forward the cash receipts to the Accounts Clerk who will process a JV/APV to record cash receipts. After all the JVs/APVs for the day have been entered, the Accounts Clerk will print the cash account details and hand it over to the cashier, to enable him to check his cash balance on hand as on that date.
Research Methodology
In the present fast track business environment marked by cutthroat competition, manyorganizations rely on business research to gain a competitive advantage and greater market share. Business Research is the pursuit of truth with the help of study, observation, comparison and experiment, the search for knowledge through objective and systematic method of finding solution to a problem.
To portray accurately the characteristics of a particular individual, situation or a group, Research comprises the following: 1. Defining and redefining problems. 2. The fountain of knowledge for the sake of knowledge is an important source of providing guidelines for solving different business, governmental and social problems. 3. An art of formal training which enables one to understand the new developments in one's field in a better way. 4. Search for knowledge, scientific and systematic search for pertinent information on specific topic, an art of scientific investigation. 5. Careful investigation or inquiry especially through search for new facts in any branch of knowledge. 6. Systematized effort to gain new knowledge. 7. A movement from the known to the unknown. 8. An original contribution to the existing stock of knowledge making for its advancement.
Problem Discovery
Survey (Interview, Questionnaire) Experiment (Laboratory, Field) Secondary Data Study Observation
Competition
Last price Market cap. (In cr.)
63,322.88 12,117.00 9,104.04 5,723.65 5,191.80 5,085.59 3,489.04 2,999.63 2,573.74 828.01
Sales turnover
Net profit
Total assets
HUL Dabur Colgate Godrej Consumer Gogrej Ind Marico P and G Gillette Emami Jyothy Labs
290.40 140.00 669.45 222.75 163.05 83.50 1,074.85 920.55 414.15 114.10
20,601.56 2,417.91 1,770.82 1,088.01 880.97 1,921.85 645.02 588.84 651.01 350.85
2,496.45 373.56 290.22 161.55 19.33 142.12 131.41 117.37 67.36 40.88
2,483.46 877.17 220.98 599.80 1,628.10 676.21 346.64 425.40 324.20 352.51
In this figure HUL is no.1 in Product Quality. The image of company is also high in comparing the other companies. In delivering and billing it is similar to P&G.
Tea Factory, Village- Asrauli, G.T.Road ETAH-207001(U.P.) Tel. No. 05742-233315, 231951 Fax No. 05742-234479
Website: - www.hul.co.in
Registered Office: Hindustan Uniliver Ltd. Uniliver House, B.D. Sawant Marg, Chakala, Andheri (East) Mumbai-400099(Maharashtra)