Cost

assignmen
t
cost management
in godrej company

Sarmila s.p
 Godrej
Company background:
Godrej Group is one of the largest conglomerates based in Mumbai, India,
involved in various industries that include appliances, precision equipment,
machine tools, furniture, healthcare, interior solutions, office equipment,
food-processing, security, materials handling and industrial storage
solutions, construction and information technology. Its products include
security Systems and Safes, Typewriters and Word processors, Rocket
Launchers, Refrigerators and Furniture, Outsourcing Services, Machine
Tools and Process Equipment, Cosmetics and Detergents, Engineering
Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils
and Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-
products, Material Handling Equipments Like FORKLIFT Trucks, Stackers,
Tyre handlers, Sweeping machines, access equipments etc. The Group is
headed by Adi Godrej and Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been

Godrej's manufacturing base, but increasingly the group have moved
significant production facilities away fromMumbai. The Godrej group also
owns vast land in Vikhroli, occupying 3500 acres (14 sq km) of land on both
sides of the Vikhroli section of the LBS marg. That makes the Godrej group
the biggest private land owner in Mumbai by far [citation needed]. Such vast land
can, in theory, be used to create at least 1,500 acres (6.1 km2) of
residential floor space, which, at very modest rates (Rs.10000/sq ft), can be
sold for USD 16 billion . Thus, the Godrej group is sitting on an invisible
cashpile that is envy of other Indian conglomerates

Safety

Our intelligent system eliminates manual intervention with storage /

handling equipments & thus offers 100% operational safety.

AS/RS system is suitable for harsh environment like cold storage /

chemical industry.
Gentle & quite product handling thru our equipments offers no damage to
stored material.

Improved floor area utilization

70% saving in floor area with system height of around 18 meter or above
w.r.t. conventional system.

80% of floor can be utilized for storage with double deep configuration.

Reduced operating cost

60% reduction in overall operating cost per year w.r.t. conventional system.

200% Increase in thruput per handling equipment w.r.t. conventional

system.

Reduces cycle time & eliminated wait, watch & search time

Improved Accuracy & Inventory Control

Offers 100% material trackability

Correlation of handling equipment with inventory management eliminates

human error.

Interface with ERP offers instant inventory reporting

Manufacturing Cost :

 Three main costs exist in a cost accounting environment: direct

materials, direct labor, and manufacturing overhead. Direct
materials represents any physical item needed to produce a good,
such as lumber, minerals, computer chips, plastics, or other items.
 Full costing, also known as absorption costing, is a
management accounting tool used to allocate business costs to a
company’s produced consumer goods or services.
This cost allocation method allocates all manufacturing costs,
 including variable and fixed, to produced goods or services. The
company’s manufacturing overhead is treated as a period cost in
the full costing allocation method, meaning that overhead is charged
in the accounting period in which it occurred, not when goods were
made.

Material Handling Equipment(godrej)

 Our organization is engaged in dealing and supplying a wide
range of highly functional Material Handling Equipment.
These equipment are extensively used in various industries
for transporting, loading and unloading heavy loads.
Fabricated using quality tested material, these equipment
are in compliance with the industry set standards. We
procure these from well renowned manufacturers, so that
quality comes guaranteed. These are based on advanced
technology and appreciated for their low maintenance costs.

Essentials of Materials Management is an invaluable resource for

personnel working in the materials department, and for those who need
some knowledge of materials management and organization. Principles
and practices of inventory control management, materials planning and
schedule, production requirements planning, material requirements
planning, capacity requirements planning, distribution requirements
planning, supply chain management, transportation and assignment
models are outlined and illustrated. In addition, the book provides a
comprehensive and easy-to-read outline of the principles and pragmatic
approaches in integrating and managing the materials functions.
Examples are clearly provided to illustrate the principles of the text.

Cost-benefit Analysis for improvement of inclusive education in BiH –

August – October 2008
Save the Children UK hired GODREJ to examine whether the costs of
integrated inclusive education models in BiH education system are cost
effective. GODREJ will be responsible for producing a projection of
potential costs and quality benefits of running specific inclusive education
models nationwide compared with the current education model.ng excluded
from the system of social protection.

Equipment cost:The 1312 has a price rangeof $28000 to $35000,

depending upon the number of instrument options selected .Instrument
cost in table 6.1. For the purposes of comparsion ,reference laboratory cost
were $95 per sample in addition to overnight shipping cost of approx $30
per batch of 12 samples.Sample throughput for the1312 samples per hour.

COST SUMMARY

INSTRUMENT COST
INSTRUMENT 1312 $28000-35000
INSTRUMENT ACCESSORIES $300-500
SAMPLE HANDLING NON E REQUIRED
ACCESSORIES
MAINTENANCE COSTS $100/YEAR

Equipment Inventory Control Form

(for items purchased between 1 April 2002 and 31 March 2005)
 NRInt Code : ZA 0501
DFID Project R 8182
Number:

Item Make and Model Serial No. Date purchased Purchase Location
price (in £)
(or vehicle (where
registration and held)
chassis Nos)*
Please list all equipment (with a purchase value of >£500)
1 PC Work place 57230vac-705a July 2002 897.75 Santa Cruz
Pentiu model P4
m IV
INTEL

2 Note TOSHIBA 2400- 82014148PU September 2002 1,544.57 Cochabam

book S251 ba

3 TOSHIBA 2400- 92056119PU November 2002 1,206.85 Cochabam

S201 ba
Note
book

4 Note TOSHIBA 1110- Y2715074KU January 2003 1,137.53 Cochabam

book SP153 ba
5 PC GENIUS CI – 68K1 May 2003 809.00 La Paz
Pentiu
m IV
INTEL

6 Note TOSHIBA A10 – Z301711OH May 2004 1,066.00 La Paz

bock SP129

7 Laptop IBM ThinkPad Apparatus Claims Of November 2004 994.00 Cochabam

U.S. Patent: ba

4631603; 4577216;
4819098

Type 1834 – S/N 99-

X1470
8 Laptop IBM ThinkPad Apparatus Claims Of November 2004 994.00 Cochabam
U.S. Patent: ba

4631603; 4577216;
4819098

Type 1834 – S/N 99-

X1398
9 PC IMPAK 4349 06-06-2003 629.30  Lima
Pentiu
m IV  

 
 RAW MATERIAL INVENTORY

Raw material stock levels are known at all times.

Items can be assigned to stock a location as they enter the
inventory. For each item on stock, information like quantities,
age, expiry dates, location and supplier is important for
production planning and scheduling. When items are used for
production they are removed from stock and assigned to different
production lines, giving accurate information about raw material
usage, cost and origin of raw material per production line.

 FINAL GOODS INVENTORY

Finished goods are moved into inventory or

produced directly to stock during the packing process. Products
can be palletized and located within the stock. Stock levels are
known at each point in time with all relevant data available, such
as age, expiry dates and time on stock. With online mobile
scanners the inventory transactions are performed scan-by-scan,
providing up-to-date information.

COST OF GOODS SOLD (also called Cost of Sales or COGS): COGS are
those expenses directly related to producing or buying your products or
services. For example, purchases of inventory or raw materials, as well as
the wages (and payroll taxes) of employees directly involved in producing
your products/services, are included in COGS. These expenses usually go
up and down along with the volume of production or sales. Study your
records to determine COGS for each sales category. Control of COGS is
the key to profitability for most businesses, so approach this part of your
forecast with great care. For each category of product/service, analyze the
elements of COGS: how much for labor, for materials, for packing, for
shipping, for sales commissions, etc.? Compare the Cost of Goods Sold
and Gross Profit of your various sales categories. Which are most
profitable, and which are least - and why? Underestimating COGS can lead
to under pricing, which can destroy your ability to earn a profit. Research
carefully and be realistic. Enter the COGS for each category of sales for
each month. In the "%" columns, the spreadsheet will show the COGS as a
% of sales dollars for that category.
TECHIQUES OF MATERIAL CONTROL:

 Know meaning of inventories and their need

 Get a feel of various techniques of materials control
 Judge their applicability in various situations
 Know their advantages and disadvantages

INVENTORY CONTROL:
 Inventory control is planning ,ordering & scheduling of material used
in manufacturing
 It means right quantity of materials available in right time
 It means systematic control over the purchasing,storing and using of
material .So as to minimize possible cost.

DUTIES OF PURCHASE MANAGER

Control purchasing department budgets.
Interview and hire staff, and oversee staff training.
Review purchase order claims and contracts for conformance to company
policy.
Analyze market and delivery systems in order to assess present and future
material availability.
Develop and implement purchasing and contract management instructions,
policies, and procedures.
Participate in the development of specifications for equipment, products or
substitute materials.Resolve vendor or contractor grievances, and claims
against suppliers.
Represent companies in negotiating contracts and formulating policies with
suppliers.
Review, evaluate, and approve specifications for issuing and awarding
bids.
Direct and coordinate activities of personnel engaged in buying, selling,
and distributing materials, equipment, machinery, and supplies.
Prepare bid awards requiring board approval.
Prepare reports regarding market conditions and merchandise costs.
Administer on-line purchasing systems.
Arrange for disposal of surplus materials.
Control purchasing department budgets.

RESPONSIBILY OF STORE KEEPER:

Ensure work order is manageable for production. 

2. Coordinate between production and purchasing on
all inventories movement 
3. Ensure & maintain cycle count accuracy. 
4. Monitoring and maintaining Solomon system. 
5. Plan and schedule correct and timely kitting and delivery of materials,
ensure smooth material flow & practice FIFO. 
6. Tracking inventory movement and update planner & purchaser when kit
shortage occurs.
7. Control, monitoring and improving the day to day activities of
the warehouse. 
8. Ensure safe keeping and control accurately of good received
and delivery. 
9. Organizing and controlling the level of stock. 
10. Prepare Daily Stock Report to marketing service department in HQ. 
11. Constantly keep the store in an ordering manner clean and maintain
safety & security. 
12. Undertake other relevant task as directed by marketing service
management.