sTRIVE final.pdf

I did my Summer
Internship with Jindal
Power Limited (JPL),
Tamnar (Chhattisgarh),
(officially
known as O P Jindal
Super Thermal Power
Plant) known to be
Harish Verma India’s first mega
PGP 2011-13 thermal power plant
having 1000 MW (4 X 250 MW) installed
capacity. The 1000 MW power plant, which
is operational for the last few years, requires
considerable amount to be invested for the
maintenance of inventory, the levels of
which are bound to increase with the number
of operational years of plant, thereby
creating a need to evaluate the inventory and
to maintain the same at optimal levels
perpetually.
My task included analyzing the material
management practices followed at JPL and
finding out the optimum level of inventory
to be maintained in order to ensure the
maximum plant availability. Managing large
inventory that involves thousands of plant
items, is a complex task. In thermal power
plant, the procurement is not essentially
done on the basis of Economic Order
Quantity (EOQ). Generally, long term
contracts are signed for the supply of
material required. Lead time plays a vital
role in calculation of optimal level. The
production plan dominates the inventory
Summer Internship
Harish Verma PGP2011-13
Indian Institute of Management Raipur
levels to be maintained. The inventory is
classified on ABC and VED. Further,
Optimum level of any inventory can be
based on its operations, maintenance
schedule and history. The optimum level of
insurance inventory is mainly based on
experience of engineers and managers.
There cannot be any optimal level of general
spares but efforts are made to keep them
close to zero.
I targeted the supply chain of power
generation, the process of power generation,
present and past inventory levels, material
procurement practices, and store
management practices. I had the opportunity
to visit all the concerned departments
namely operations, MRP, procurement,
stores on weekly basis, which helped me
understand the role and working of each of
the departments. I could gather major
information required for accomplishing the
task, by interacting with the concerned
officials and through official records and
SOP of departments.
The internship project helped me attain
insight into the efforts made to maintain the
inventory at optimal levels. It also helped
me in gaining hands-on experience of
managerial aspects of power plant
operations. My work was applauded by the
officials and I hope, my recommendation
would help JPL manage their inventory
levels and address the existing problem in an
efficient way.
28
NOVEMBER 2012