Inventory Control - Methods

 

Inventory Control - Methods

 

Method	Stands for	Based on
ABC	A / B / C	Pareto principle
FSN	Fast / Slow / Non   - Moving	On the level of consumption (moving), frequency of demands and their utility
GOLF	Government / Ordinary / Local / Foreign - Source	On the source of supplies
HML	High / Medium / Low - cost per unit	On the unit cost of items
SDE	Scarce / Difficult / Easily - availability of item	On the criteria of availability of item
SOS	Seasonal / Off seasonal - item	On the nature of supplies
VED	Vital / Essential / Desirable - items	On the criticality in end use
XYZ	High / Medium / Low - Inventory value	On inventory value of items at a given time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classification of Stores

 

Classification of Stores		Features
Ordinary		In General - Regular Turnover & constant Demand
Emergency		To meet Emergencies -Occasional Demand -  Not readily available in the Market - Do not ordinarily wear out - Not require Renewal
Surplus		Moveable Surplus - Not issued in past 24 months - Likely Demand in next 24 Months (initially declared as Moveable Surplus) Dead Surplus - Not issued in past 24 months - Not likely demand in next 24 Months.
Special		Required for Works & Special Purposes (other than Operation/Maintenance/Repairs)  Normally, such stores are directly dispatched to the Executives (without stocking in Depot)
Custody		For Special works and charged for such works  But keep with the Stores Department for safe custody  Maintains numerical records by Stores Dept.   Example: Items obtained by the Mechanical Dept for construction of Rolling Stock
Inactive		Items that had no issues for the last 12 months
Imprest		Standing advance of items to meet day-to-day operation/maintenance/repairs.    Charged off to Revenue Working expenses Final Heads Supervisors such as SSE, Signal Inspector, IOW, etc are allowed to maintain the Stock Imprest of nominated stores.  The limits up to which stocks are to be kept - 2 to 3 months of consumption. Examples: Consumable Stores like Cotton waste, oil, grease, etc.

Stores Contracts - Numbers Figures

 

Numbers - Stores 

Item	Number	Remarks
Limited Tenders
Limited Tender (ordinary items) - Non Gem items  - PCMM, CMM & Dy.CMM powers	Up to Rs. 25 Lakhs
Limited Tender - PCMM powers In Emergencies incl: items available in GeM-  PCMM powers  Safety / Passenger necessity items  Items for which approved list is issued by Centralised agencies like RDSO/CORE etc	Up to Rs. 10 Crores
Limited Tender - CMM powers In Emergencies incl: items available in GeM-  PCMM powers  Safety / Passenger necessity items  Items for which approved list is issued by Centralised agencies like RDSO/CORE etc	Up to Rs. 5 Crores
Limited Tender - Dy.CMM powers In Emergencies incl: items available in GeM-  PCMM powers  Safety / Passenger necessity items  Items for which the approved list is issued by Centralised agencies like RDSO/CORE etc	Up to Rs. 1 Crore
Limited Tender Panel should have minimum _____ except where approved list issued by RDSO/PUs	3 Firms
Urgency Certification
JAG Officers	Up to Rs. 10 Lakhs
SAG Officers	Above Rs. 10 Lakhs
Open Tenders (Non GeM Items)
PCMM	Unlimited
CMM	Up to Rs. 10 Crores
Dy.CMM	Up to Rs. 1 Crore
Notice Period (in IREPS)	21 days
Cost of Tender Document	Nil
PAC - Propriety Article Certificate - Signing powers
PHOD / CHOD	Above Rs. 25 Lakhs
SAG / CWM / ADRM	Up to Rs. 25 Lakhs
SG / JAG	Up to Rs. 15 Lakhs
STS	Up to Rs. 2 Lakhs
JTS	Up to Rs. 75 thousands
E-RA - Electronic Reverse Auction
Tender Value	Above Rs. 5 Crores
Proven / Known / Approved sources - Minimum	3
Qualified bidders - less than 3	Selection of vendors - Nil
Qualified bidders - 3 to 6	Selection of vendors - 3
Qualified bidders - More than 6	Selection of vendors - 50 % of qualified Vendors
MSEs - All qualified bids - within —---- price range of L-1 will be called	15 %
Duration of Auction (Between Start & Closing time)	30 minutes
Maximum auto extensions	5
MSME Policy
MSMED Act enacted in —------	2006
As per MSMED Act, any buyer who fails to make the payment to MSMEs, as per agreed norms or a maximum of —-------, would be liable to pay monthly compounded interest at 3 times the Bank Rate.	45 days
Miscellaneous
GFR - General Financial Rules Edition	2017 Year
25 % of Annual Procurement (not on Individual Procurement Quantity) reserved for MSEs

Category	Reservation Percentage Target	If Annual Procurement is 100 Nos, the reserved quantity is ____
MSE	25 % of Annual Procurement (not on Individual Procurement Quantity)	25 Nos
SC / ST (of MSEs)	4 % sub-target of 25 % of above Target	4 Nos (not 1 No)
Women (of MSEs)	3 % sub-target of 25 % of above Target	3 Nos (Not 0.75 No)

• Who are eligible: MSEs registered under Udyam Registration Portal w.e.f 01.07.2020 

•  MSE Policy - W.e.f 01.04.2012.  But mandatory from 01.04.2015 onwards. 

Udyam Portal 

Context

• Retail and wholesale traders reinstated under the MSME category by the Government in July 2021 are topping the table of the top 10 segments or sub-sectors in the MSME sector based on the number of registrations on the Udyam portal.

Udyam Portal

• https://eudyogaadhaar.org/ 

• Launched and maintained by MSME Ministry on 1st July, _____

• Only Official portal to register a new MSME or re-register of already registered under UAM - Udyog Aadhaar Memorandum 

•  Seamlessly integrated with Income Tax, GST & GeM 

• The details of Investments & Turnover are taken automatically from Govt databases. 

MSME Sambandh Portal: 

  

• Launched on 8th December 2017 

•  Sharing fact sheets of public procurement of all central entities. 

• Facilitating Official login to enter the data. 

• Monitoring the progress of procurement by Central Govt Ministries / Depts / CPSUs  

• Uploading procurement details by all the above entities on a monthly / Annual basis

Data for 2022-23 FY  

Category	Procurement (in Crores Rs)	Percentage Actual	Targetted Percentage
Total	172436	100
MSMEs	61592	36 %	25 %
SC/ST MSMEs	1438	0.83 %	4 %
Women MSMEs	2059	1.20 %	3 %

 

Benefits for MSMEs 

1. Tender cost - Free 

2. No EMD (Earnest Money Deposit )

3. Relaxations in Prior Turnover Criteria and Prior Experience Criteria 

Note: However, SD (Security Deposit) or PBG (Performance Based Guarantee) are not exempted.  

• All Central entities - should organize VDPs ( Vendor Development Programmes) to develop MSMEs 

• SC/ST MSMEs - NSIC should conduct outreach programs and open a special window i.e., SPRS (Single Point Registration Scheme) 

• NSIC stands for National Small Industries Corporation 

• 358 items - Reserved exclusively for MSMEs 

Champion Portal

• Launched on 1st June 2020

• To address the grievances of MSMEs 

• Set up in the Ministry of MSME

• CHAMPION stands for Creation & Harmonious Application of Modern Processes for Increasing Output & National Strength 

• Backed by AI - Artificial Intelligence, Big Data Analytics, as well as Machine Learning, in conjunction with ICT - Information & Communication Technology 

• Linked with the CPGRAMS (Centralized Public Grievance Redress And Monitoring System 

•  Classification of MSMEs 

Category	Investment in Plant & Machinery	Annual Turnover
Micro	Rs. 1 Crore	Rs. 5 Crore
Small	Rs. 10 Crores	Rs. 50 Crores
Medium	Rs. 50 Crores	Rs. 250 Crores

 

Samadhan Portal: 

• After 14 years since the MSME Development Act came into existence in 2006, a revision in the MSME definition was announced in the Atmnirbhar Bharat package on 13th May, 2020. As per this announcement, the definition of Micro manufacturing and services units was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small units was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover. Similarly, the limit of medium units was increased to Rs. 20 Crore of investment and Rs. 100 Crore of turnover. The Government of India on 01.06.2020 decided for further upward revision of the MSME Definition. For medium Enterprises, now it will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.