SUMMER TRAINING REPORT

UTTARAKHAND POWER CORPORATION LTD.

(UPCL)

at
UPCL Head office Urja Bhawan ,Dehradun
(4 Week Practical Training i.e.,7-7-2023 to 7-8-2023)

Submitted By:
KAJAL KUMARI (57584)
INDUSTRIAL AND PRODUCTION ENGINEERING(UG)
G.B. PANT UNIVERSITY OF AGRICULTURE AND TECHNOLOGY, PANTNAGAR

Under the Supervision of

ER .MOHIT DABRAL SUPREDENTING
ENGINEER (MM)

UTTARAKHAND POWER CORPORATION LTD.(UPCL)

DEHRADUN,UTTARAKHAND

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 ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude to all those who made my summer
training at Uttarakhand Power Corporation Limited (UPCL) Urja bhawan, a truly
enriching and valuable experience.

Primarily, I extend my sincere thanks to the Head Officer SE of Material

Management providing me with this exceptional opportunity to undergo training
under their guidance and mentorship. Their support, encouragement, and
expertise played a pivotal role in shaping my understanding of Material
management and Function of Supply chain management.

I am deeply indebted to all the staff members at UPCL's urja bhawan for their
warm welcome and willingness to share their knowledge. Their generosity in
providing me with hands-on training, allowing me to explore the function of
Material management and Planning of Supply chains to meet the Material
Requirements was instrumental in enhancing my practical knowledge.

Lastly, I would like to acknowledge my family for their unwavering support and
encouragement during my training. Their belief in my abilities motivated me to
make the most of this opportunity and strive for excellence. The knowledge and
skills I have acquired during this period will undoubtedly serve as a solid
foundation for my future endeavors in the field of Industrial and Production
Engineering. Thank you all for being an integral part of this journey .

Kajal Kumari
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 LEARNINGS DURING THE TRAINING
During the course of my summer training at Uttarakhand Power Corporation
Limited (UPCL) Urja Bhawan, Dehradun I had the opportunity to acquire
valuable knowledge and practical insights related to the Material Management
sector. This section highlights the key learnings and experiences gained during
the training:

1. Understanding Aim of Material Management

2. Insight into function of Supply Chain Management
3. Role and Responsibilities of UPCL
4. Challenges Faced by Material Management officers
5. Components of controlling and regulating the flow of Material
6. Objectives or 5 Rs of Material Management
7. Function and Importance of Material Management
8. About Function of Inventory Control Management
9. Economy in Material Management
10. Procurement , Procurement Cycle and Objectives of Procurement System

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 INTRODUCTION
During my four-week summer training at UPCL's head office in Urja bhawan
Dehradun, I had the opportunity to gain valuable insights into the functioning of
various Method for Planning, Organizing and Controlling all Activities related to
the flow of Material in the Organization in India, Aim of material Management ,
Objective of material Management and Procurement.

Aim of material Management

To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost

Purpose of material Management

1. To gain economy in purchasing
2. To satisfy the demand during period of replenishment
3. To carry reserve stock to avoid stock out
4. To stabilize fluctuations in consumption
5. To provide reasonable level of client services

Objective of material Management

Primary Secondary
1. Right price 1. Forecasting
2. Low procurement 2. Standardization
3. Low storage cost 3. Product improvement
4. Consistency in quality
5. Good supplier relations
6. Useful information system

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Elements of material Management
1. Demand estimation
2. Identify the needed items
3. Calculate from the trends in consumption during last 2 years 4. Review
with resource constraints .

The work undertaken by materials management experts can be broken down into
five different types, as follows:
1. Material Requirements Planning
This important step in material management directly affects profits as the lower
the amount of material used, the lower the cost of production and the more profit
is delivered. Reducing material overspend has caused some industries to consider
‘Just in Time (JIT)’ strategies that require ridiculously small levels of inventory.
However, this still requires careful planning to maintain without impacting
production schedules.
2.Purchasing
Purchasing should be done economically and on time to maintain material
supplies and increase final profits by lowering expenses.
3.Inventory Control
It means stocking adequate number and kind of stores, so that the materials are
available whenever required. scientific inventory control results in optimal
balance . Inventories are required to control the flow of raw materials, purchased
goods and finished parts and components.

Function of inventory control

1. To provide maximum supply service, consistent with maximum efficiency &

optimum investment.

2. To provide cushion between forecasted & actual demand for a material.

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4.Material Supply Management
Supply chain management can require materials to be distributed to different sites
or production centres, each of which needs to be continuously supplied. Lack of
stock can lead to financial losses through having to source replacement
production materials or having to halt production schedules .

5.Quality Control
Quality control of materials is also important, since good quality materials lead
to good quality products. Factors such as durability, dimensional accuracy,
dependability, performance, reliability and aesthetic value can all be important
quality factors for materials management, depending upon the applications.
All five of these types need to work together for the successful management of
materials from purchase and supply through to utilisation.

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 UTTARAKHAND POWER CORPORATION LTD.

Uttarakhand Power Corporation Limited (UPCL) is a state-owned power

distribution company responsible for distributing electricity to various regions in
Uttarakhand, including Dehradun. UPCL plays a crucial role in ensuring
uninterrupted power supply to consumers in its operational area.
Challenges Faced by UPCL:
During the training, I learned that UPCL faces several challenges that impact its
financial stability and operations. One of the primary issues contributing to losses
is electricity theft by locals. Unauthorized connections and tampering with meters
lead to revenue losses for the company.
Additionally, UPCL struggles with non-payment of bills by many government
industries and officials, which further adds to the financial burden. These
challenges make it difficult for UPCL to achieve profitability compared to
UJVNL and PTCUL.
Working of UPCL head office Urja bhawan:
At the UPCL head office urja bhawan Dehradun, I got to witness the day-to-day
operations of the distribution of matrial. Urja bhawan consist of various
department and I got a chance to explore in material Management sector it was
responsible for managing material supply in various areas of uttrakhand,
including dehradun, haridwar, rishikesh, roorkee, kotdwar, haldwani, chamoli,
uttarkashi, tehri, shrinagar etc.

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 ERP SYSTEM
An ERP system consist of software components called module, that each focus
on an essential business function as finance and accounting ,HR, production ,
materials management or customer relationship management(CRH).
Organization only use to run their particular business. SAP create a centralized
system for businesses that enables every department to access and share common
data to create a better work .

MM SAP MODULE
SAP MM (Materials Management) is an essential module in the SAP ERP Central
Component (ECC) and equips organisations with materials, inventory and
warehouse management capabilities. The primary role of SAP MM is to ensure
that all materials of an organisation are maintained in the right quantities at the
right time in the right place. It ensures that there are no shortages or supply gaps
in an organisation's supply chain.
Features of SAP MM Module
1. It deals with Inventory Management and Material Management.
2. It is a process that keeps in check the scarcity or violation in the Supply
Chain of a company.
3. It Manages Procurement activities.
4. To accelerate productivity and cut costs, it manages the Material
(products/services) and resources of a company.
5. It handles Master Data, Valuation of Material, Material Requirement,
Invoice Verification, etc.
Advantages of SAP MM Module
1. It minimizes the cost of operations.
2. It reduces inventory losses by removing unnecessary or obsolete material.
3. Automatic Material Management and procurement activities lead to a
smoother as well as efficient process.
Structure of an Organization In SAP MM Module
An organization is formed of various levels and several units. These units
follow a regular hierarchy. Each of these units has a special function that
constitutes together to describe the structure of an organization.

• Client

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 • Company code
• Plant
• Storage location
• Purchasing organization
• Purchasing group

Material Management by UPCL

In UPCL all process of Material management are done in online mode and all
process monitoring under MMS (Material management system)

Material Management System “MMS”

Material Management system “MMS” is a complete solution to control day-to-
day supply chain operations. MMS tracks every item down to its individual units
anywhere in the laboratory and covers the complete material life cycle from initial
receiving (check-in) to disposal.

Two types of material Management systems

1. Centralized inventory
2. Decentralized inventory

Centralized inventory
Centralized inventory refers to keeping all stocks in single location , as opposed
to maintaining multiple storage locations. In case of Centralized inventory top
management makes the decisions.

Decentralized inventory
Decentralized inventory is defined as inventory that is held in many locations.
In case of decentralized inventory lower and middle management make the
decisions.

Centralized material management

Step1: Check past 2 or 3 years yearly consumption pattern of material.

(Economic order of quantity)

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EAQ = average monthly consumption X lead time [in months] + buffer stock-
stock on hand.
Step 2: After checking yearly consumption pattern of material, average of yearly
consumption of material are generated.
Step 3: On the basis of average of yearly consumption of material, requirement
generate was prepared.
Step 4: After requirement generate was prepared procurement order was passed.
Procurement Process in SAP MM Module
Every company requires material or service to satisfy their requirements, and
thus, they purchase them. This procedure is referred to as procurement.
Types of Procurement in SAP MM Module
I. Basic procurement
II. Special procurement

Basic Procurement
The procedure of buying the right material and services in an appropriate
quantity at the lowest rate and at the right time is referred to as Basic
Procurement.
Special Procurement
The Stocks which do not belong to a company and stored in a certain location
are referred to as special stocks. The approach to procure these stocks is known
as Special Procurement.

Procurement cycle
1. Review selection
2. Determine needed quantities
3. Reconcile needs & funds
4. Choose procurement method
5. Select suppliers
6. Specify contract terms
7. Monitor order status
8. Recepit & inspection
Step 5: Tender invite was passed by C&P.

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C&P takes administrative and financial approval from MD.
Two types of tender are:
1. Online
2. Two part bidding

Two part bidding:

The tender documents for items will be two- bid system consisting
of technical bid and Price bid.
• Technical bid:
The technical bid contains all technical details about the material like
qualifying requirement, past experience, types of material, turnover,
performance of material.
• Price bid:
The bid price is the highest price a buyer is willing to pay for a security
or asset. A bid price is generally arrived at through a process of
negotiation between the seller and a single buyer or multiple buyers.
Step 6: Purchase order was issued by DI.
Points to remember while purchasing
1. Proper specification
2. Invite quotations from reputed firms
3. Quantity & payment discounts
4. Payments terms
5. Delivery period , guarantee
6. Vendor reputation
7. Short listing for better negotiation terms.
8. Seek order acknowledgement.
Step 7: Inspection of material by I&QA
The main aim of the inspection is to prevent the production of non-standard items.
As such, an inspection of materials is of the utmost importance; both quality and
quantity must be checked and inspected systematically.

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Objectives of Inspection
1. To maintain product quality
2. To receive only the correct quantity of materials
3. To ensure that suppliers are careful and efficient
4. To utilize the money invested optimally

Advantages of Inspection

1. Ensures the quality of materials, thus helping to maintain steady

development
2. Improves goodwill due to high-quality production, thereby lowering costs
because the inspection of materials assures effective production
3. Enables low-cost procurement of statement items or branded products,
which favorably influences the cost curve due to less wear and tear,
wastage, and so on.
Step 8 Field Send requirement list to store center.

Under UPCL there are 2 division, 9 center and

8 sub-center.

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Step 9 : After all this process material like conductor, circuit breaker , electrical
conduit , electrical wire and cable, meter, switch , electrical box, motor control
,electrical connectors ,transformer are transported from store center to the field
and required area.

TRANSFORMER
1. Distribution transformer
2. Power transformer

Distribution transformer

An electrical transformer which is employed in the power system near the

load points for stepping-down the high voltage to the safest rated
Utilisation voltage.
Distribution transformers are designed in such a way that they have
maximum efficiency at 60% to 70% of load.
Capacity of distribution transformer are 16KVA, 25KVA, 63KVA,
100KVA, 400KVA, 500KVA.

Power transformer

An electrical transformer having extremely high MVA rating and is used

to transmit high electric power at high voltage level through the power lines
to the distribution centers.
The power transformers are designed in such a way that they have
maximum efficiency at or near the full load.
Capacity of power transformer are 3MVA, 5MVA, 8MVA, 10 MVA,
12.5MVA.

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Workshops under UPCL
Two main workshops are:
1. Dehradun
a) Roorkee
b) Rishikesh
2. Haldwani
a) Haldwani
b) Rudrapur
c) Kashipur

Work under workshops

Workshops repaired damaged and broken equipment like conductor, circuit
breaker , electrical wire and cable, meter, switch , electrical box, motor control
,electrical connectors and transformer.
Transformers which is above 20 years are not repaired under workshops. They
are just cut and crust.
Below 20 years transformers are repaired under workshops

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 CONCLUSION
My summer training at UPCL's urja bhawan was a valuable learning experience,
providing me with a deeper understanding of the material management, material
management is an important management tool which will be very useful in getting
the right quality & right quantity of supplies at right time ,having good inventory
control and adopting sound methods of condemnation and disposal will improve
the efficiency of the organization and also make the working atmosphere healthy
any type of organization , whether it is private ,government ,small organization ,
big. Organization and households. Even a common man must know about the
basics of material management so that he can get the best of the available
resources and make it a habit to adopt the principles of materials management in
all our daily activities .

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