Accumulate of Raw materials in the Warehouse on the
Profitability of the Organization
1)
9)
Introduction of the Study
2) Background
3) Purpose of the Study
4) Review of literature
5) Problem Statement
6) Overall Objective
7) Specific Objectives
8) Research Questions
Research Design & Methodology
10) Scope and Limitations
11) Significance of the Study
12) Time frame of the Study
13) Referance
Introduction
Really any of the organization in this business world main target is earn more and
more profit so always the owner of the organization will lead his workers to
achieve his target. When we consider about the money, more than 60% of
organizational money is holding materials in the warehouse ,so warehouse
manager have responsibility to preserve materials in his custody and issue them
when the required parties are request .If the warehouse have enough space then
warehouse manager and his subordinators can easily perform their day today
duties without any problem ,But now a day’s many of the warehouse peoples are
suffering the space problem because of they are utilize their valuable space for
unwanted materials , and then they needs to spent their working hours to handle
these unnecessary materials ,it’s major issue for the warehouse and also the
organization .It will effect to the day today function of the warehouse also. Due
to this situation finally warehouse peoples are unable to fulfil their final target, it
will effect to the organization final target (Goal = Profit) very badly. So I think that
the accumulate surplus materials in the warehouse is a big issue for any of the
organizations.
About MAS
Founded1986
Head Office : Aitken Spence Tower, Colombo-02, Sri Lanka
Products : The pioneer of the concept of ‘total solutions’ in Sri Lanka’s apparel sector,
MAS is a preferred solutions provider to some of the world’s leading apparel brands,
including Victoria’s Secret, NIKE,PINK, Gap, lululemon, Marks & Spencer, Lands’ End, Tommy
Hilfiger, Hanes, Express, H&M, Old Navy, and Tesco.
MAS specializes in Active wear and sleepwear, Bras, textiles, knitted and woven fabrics,
sewing and embroidery thread, accessories and hangers, and also offers wet processing,
finishing and fabric printing.
48 Manufacturing Plants
80000 Associates
Operating in 15 Countries
With innovation at the core, passion to consistently deliver
‘THE inspired solution for branded clothing’ validates the
leadership position in the apparel industry
VISION AND MISSION
Vision is” To inspire, innovate, Create Value and Respect
Humanity ”
Mission is “To Inspire Innovation & Sustainability, Build Talent
&Strategic Relationships
Achieve Excellence & Ambitious Profitable Growth.
Purpose Of the Study
The purpose of the study is currently my working place ( MAS
Methliya ) warehouse is suffering a serious issue due to
unavailable of required warehouse space so due to this ,Space
problem will occur accumulating the raw materials in the
warehouse .That’s why I decided to select this study to get some
benefit for my organization and perform my job without any
difficulties .
Purpose Of the Study
1. Due to this Space problem it will take more time to unload raw materials and have to pay more demurrage cost
(Vehicle held up cost) for vehicle.
1. Due to unavailable of required space it is unable to stack one batch of raw materials in one location, it will occur
delay issuing of raw materials.
1. The warehouse manager needs to more labour force to perform day to day duties.
1. Top management has already hired another space (Logwiz & Expo Hub) to store raw materials this is really effect
to the profit of the organization.
1. Stock holding cost will increase due to surplus materials accumulate in the warehouse.
1. Organization profitability has dropped.
1. We have to spend extra transport cost & extra time to bring materials from Expo hub to MAS Methliya daily basis.
1. Organizational opportunity cost will held up due to this problem.
Problem Statement
“How does reduce the accumulating surplus materials in the
warehouse in order to increase the organization profitability “
Overall Objective
“To find out the impact of accumulate surplus materials in the
warehouse for organization profitability “
Purpose Of the Study
1. To examine the commitment of raw materials purchasing team (Fabric booking team) in
order to reduce the surplus raw materials accumulate in the warehouse.
1. To examine the commitment of material control department in order to maintain the
accurate forecast and reduce surplus raw materials.
1. To find out the efficient material dispose method in order to control the accumulate surplus
raw materials in the warehouse.
1. To identify the new strategies that will help to control the return raw materials from
Cutting department and sub contract companies.
Research Questions
1. How does the commitment of raw materials purchasing team help to reduce the
accumulate raw materials in the warehouse?
1. How does the commitment of material control department to determine the accurate
forecast of raw materials that will help to reduce the surplus raw materials in the
warehouse?
1. What are the new materials dispose methods in order to save the valuable warehouse
space?
1. What are the new strategies that will help to control the return raw materials?
The Research Design & Methodology
1. Theoretical Framework
The theoretical framework is the foundation on which
the entire research project is based .it is a logically
developed, described and elaborated network of
association among the variables deemed relevant to the
problem situation and identified through such processes
as interviews, observations and literature review “Uma
Sekaran.
The Research Design & Methodology
Commitment of Raw
material purchasing team
Accurate forecast of
material control team
Accumulate surplus raw materials
New material dispose
methods
Return materials Control
methods
Independent Variables
Dependent Variables
The Research Design & Methodology
2.Empirical Strategy or Model
(a) Sampling
Raw material purchasing team.
Material control department.
Cutting Department.
Warehouse workforce.
Organization top management.
Sub contract handling team
Finance Department
I will collect data from a representative sample of my target group.
The Research Design & Methodology
(b) Data Collection Methods & Techniques
“Data can be collected in a variety of ways, in different settings –field or lab and from
different sources. Data collection methods include interviews – face – to – face
interviews ,telephone interviews , computer-assisted interviews ,and interviews
through the electronic media-questionnaires that either personally administered ,sent
through the mail, or electronically administered ;observation of individuals and events
with or without videotaping or audio recording; and a variety of other motivational
techniques such as projective test “ ( Uma Sekaran )
I will use Questionnaire , interview and observation as my data collection method to
find out the “ commitment of raw materials purchasing team “ and “ commitment of
Material control team “
To get the top management opinion about the “ New material disposal methods “ and “
Return material control method “ I will use the Interview and Open ended questions
The Research Design & Methodology
(b) Data Analysis
After collecting the data by relevant parties, then we can use both
qualitative and quantitative method to analyze the data .
I will use both qualitative and also the quantitative data analysis method
in order to analyze the data of “ Commitment of raw materials
purchasing team “ and “ Commitment of material control team “
I will use only qualitative data analysis to analyze the “New material
disposal methods “and “Return material control method “because of
then I can select the best of the method from which I collected data.
Scope
The parameters with in which the study will be conducted in my organization. So I
have narrowed down broader area of supply chain involvement for the reduce the
accumulating materials in the warehouse and improve the organization profitability. I
will conduct my research within the boundary of my organization and within the
specific area of accumulate surplus materials and the warehouse space.
Limitations
With the limited time frame it is unable to cover the total area that related to my
research so I used a few selected variable and will studied about them, when I selected
variable I used the important variable for my research area and those variable can
cover the all my population and specific objectives . And also I would like to mention
that this study &its finding only indicate the situation in specific organization.
Significance of the Study
This study will help to management of the organization to increase the
profitability of the organization
The result of this study will definitely help to control the accumulate
surplus raw material in the warehouse and save the valuable space in the
warehouse.
Management of the organization can identify the weaker area of the
material control process.
Finally from the result of this study warehouse manager and his
subordinators can perform their day today activity without any difficulties.
This study will help to save organization money which allocated for Logiwiz
Hub & Expo Hub and the extra transport cost & demurrage cost .
Time Frame of the Study
Index
Action
1
Identify the research Problem
2
3
Literature Review
develop research Objectives (Overall
/Specific)
4
develop research Questions
5
Research Proposal
6
Data collection method
7
Data analysis
8
Writing research report
9
Writing revise research report
10
Submit the dissertation
2017-06
2017-07
2017-08
2017-09
2017-10
How this network is helpful to the Organization
 Helps to find critical / non-critical activities. So it is possible to allocate the critical people
on the critical task and medium performing people on the non-critical activities.
 Identify which activities can run in parallel, thus reducing the total process time
 Easy to read and understand the process
 Clearly highlight the sequence of the tasks in the process
 Can link between each tasks
 Show where the float can exist
 Resources can be allocated effective manner (man and machines )
 Set deadlines to work towards.
 Plan ordering of stocks/ materials or equipment.
 To maintain better cash flow
 Network can help solve problems that arise during the process.
Conclusion
When any project starting we need to have proper plan network
diagram. It will support to arrange the tasks and allocation the time
frame for each activities and identify the relationship between tasks.
It will link another activity and could arrange recourses in more
effective manner. (man and machines) It will help to identify the most
critical activities in the process for starting to understand and
visualize how your process will proceed.