Vijay Summer Traning Report

A PROJECT REPORT ON

‘Rachna electronics’ A Project Report submitted in partial fulfilment of the requirements for the awards of the degree of

MASTER OF BUSINESS ADMINISTRATION TO By Vijay pratap singh Reg.id 10801367 Under the guidance of

Ms. NIDHI NEGI Vijay pratap singh MBA

anubhav

Acknowledgement I wish to express my sincere gratitude to my guide Mr.B.N.SHARMA (production manager ,Rachna electronicpvt.ltd.vision II) for providing valuable guidance and suggestions during this Project. Without her guidance and enriching suggestions this project would be lacking in competence. And last but not the least I would like to take this opportunity to thank all the members and associates from various organizations those have provided their valuable feedback and cooperation during the survey of this project. This acknowledgement would not be completed unless I also thank those who directly or indirectly helped me throughout the successful completion of the project. At the last I would like to express my thanks to the entire staff of RACHNA ELCTRONICS PVT .LTD for support me in every task of my internship Program and made my internship a truly memorable one.

( VIJAY PRATAP SINGH)

Vijay pratap singh MBA

Prefece The success of any industry depends upon efficient and effective planning by the Management of the organisation. In today’s world of stiff competition customer play a major role in the whole scenario of the business. Customers are today the king in the market and everyday seem to have understood it. Customers are having a wider choice than ever now days. In such a condition a companies marketing strategies and policies should be such that it matches the needs preference of the companies. It is the systematic and objective identification collection, analysis dissemination, and use of information for the purpose of assisting management in decision making related to the identification & solution of problems in marketing. Supply chain management can be classified into two main types that is conceptual and practical which are both useful, however problems identification research and problems solving research go hand in hand and a given marketing research project may combine both types of research. . Supply chain management today has grown like anything and the modern successful companies are spending huge amount of money for it to run company in a smooth and successful way. I consider myself lucky to get my summer training in branded namely RACHANA ELECTRICALS PVT LTD.. I underwent six weaks RACHANA ELECTRICALS PVT LTD of training at . It helped me to get a practical insight into the actual business environment and provided me an opportunity to make my management concept clearer. It is difficult to elaborate everything which learned during the training however, I have endeavored too many, comprehensive picture of details about working in the following pages. I have accumulated the desired information through personal observation, study of documents and discussions. Vijay pratap singh MBA

Table of Contents

 Cover Page

1

 Table of Contents

2

 Acknowledgement

3

 Preface

4

 Certificate  Introduction to the Mahindra &Mahindra (swaraj Division II)

5-11

 Introduction regarding project topic t d  Objective & Scope of the Project •

Project Objectives

•

Scope

 Literature View •

Human Resource Management

•

Training & development

•

12-14 15-17

18-45

Importance of Training & Development in companies

 Methodology

48

 Sample Survey

49-59

 Analysis

60-65

 Limitations

66-67

 Findings Vijay pratap singh MBA

68

 Conclusion

69-70

 Suggestions

71-72

 Bibliography

73

 Annexure

74

 Questionnaire

75-83

EXECUTIVE SUMMARY I worked as a part of Rachna Electricls PRIVATE LTD., during my summer internship program. This project was undertaken by me because today we see various heavy machines in front of us in the form of GEASER ,EMERSON RAD making machines and even other big machines , I always fantasized that how does these machines come into being, how does the heavy parts used in these machines are been moved from one place to another and it was an opportunity given by Rachna Electricls to me to carry out a survey over the FORKLIFTS made by REMSON and the condition of satisfaction which its clients derive from it. Rachna Electrical cis known for its reputation because many prestigious organizations have been awarding them the contract to identify the needs of customers to provide them required satisfaction and to take corrective actions to improve upon their business vis a vis their compet Rachna India has expert marketing research personnel who conduct surveys regularly and prepare the reqduired formats based on the needs of corporate clients as well as service provider. While working with RACHNA ELECTRICALS India & their team it was a unique experience at the planning stage all the participants were consulted, lot of deliberations took place & also due diligence took place while collecting data, designing input formats which can provide value based suggestion to the service provider to improve their overall efficiency & becoming market leader

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I don’t know whether my suggestion will bring joy to them or will be deemed as scrap because. I am not aware of their internal matters. But if I will find that my suggestions have been considered I will feel I have achieved what I had planned to the required goal. Therefore I can confidently say that my executive summary is my personal experience of learning & expression .The researcher of RACHNA ELCTRICALS appreciated this.

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SUMMER TRAINING PROJECT SYNOPSIS AT A GLANCE

Project Title

: ELECTRONIC GOODS

Company

: RACHANA ELECTRICAL.

Project Undertaken By

: Mr. VIJAY PRATAP SINGH

Project Guider

: Mr. B.N.SHARMA

Guider Designation

: PRODUCTION MANAGER

Duration Of the Project

: 1st July- 14th Aug 2009

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HISTORY OF Electronics industry Electronics industry, the business of creating, designing, producing, and selling devices such as radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits (see electronics). As sales of electronic products in the United States grew from some $200 million in 1927 to over $266 billion in 1990, the electronics industry transformed factories, offices, and homes, emerging as a key economic sector that rivaled the chemical, steel, and auto industries in size. The industry traces its origins to the invention of the two-element electron tube (1904) by John Ambrose Flemming, and the three-element tube (1906) by Lee De Forest. These inventions led to the development of commercial radio in the 1920s, which boosted radio sales to $300 million by the end of the decade. In 1947, the electronics industry made another important advance when John Bardeen, Walter Brattain, and William Shockley invented the transistor. Smaller, lighter, and more durable than the vacuum tubes that had been used in radios, transistors touched off a period of progressive miniaturization of electronic devices. Integrated circuits, which were developed in the 1950s, allowed the integration of several circuits into one circuit, and the introduction of analog devices in the 1960s vastly increased the amount of information that could be stored on a single silicon chip. Other important sectors that have made great advances since the 1970s include laser and optical electronics, digital electronics, and microwave electronics. Advances in the field of electronics have also played a key role in the development of space technology and satellite communications; inaugurated a revolution in the computer industry that led to the introduction of the personal computer; resulted in the introduction of computer-guided robots in factories; produced systems for storing and transmitting data electronically; greatly expanded the market for popular music and culture; and, in the process, transformed life at home, the office, and the factory. Many of these innovations, such as the transistor, had their origins in military research, which needed increasingly complex electronic devices for modern high-tech warfare. In the 1960s, the U.S. consumer electronics industry went into decline as manufacturers were unable to compete with the quality and pricing of foreign products, especially the electronic goods produced by Japanese companies such as Sony and Hitachi. By the 1980s, however, U.S. manufacturers became the world leaders in semiconductor development and assembly. In the Vijay pratap singh MBA

1990s semiconductors were essential components of personal computers and most other electronic items (including cellular telephones, televisions, medical equipment, and “smart” appliances). While U.S. companies are still a major presence in the semiconductor industry (representing about 40% of world sales in 1998), the consumer items themselves are mostly made overseas. Worldwide electronic sales were nearly $700 billion in 1997.

INTRODUCTION OF COMPANY

RACHANA Electricals PVT. Ltd. (Remson Appliances) An ISO 9001:2000 company This unit was established as Gemson Enterprises in the year 1976 with a view to manufacture heating element, table lamps & electric iron. Annual turnover was around 2lacs at that time.electric storage water heater were added in the product line in the year 1979 increasing the annual turnover to Rs.5lacs. The unit was renamed As Rachna Electricals Pvt. Ltd. in the year 1981 unit received its ISI certification for its products in the year 1983. In the year 1985 the unit achieved its target turnover of rs.50lacsper annum.

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The company has installed state of the art plant & machinery for quality products and checking of finished components. Most modern lab has been established for carrying out checking /testing of finished products as per ISI norms Since inception unit has been continuously progressing and upgrading the manufacturing the manufacturing & quality control facilities. The objective has been to produce quality product at competitive price. With continuous interaction from user/market new lightweight, aesthetic look A.B.S. geyser have been developed and introduced as ‘MAGIC’ series recently in the market which have been received well all over India. At present our products are sold in Delhi, H.P., M.P., Maharashtra, Tamilnadu, kerala, karnatka, Sikkim, Bhutan& J&K, with a current turnover of Rs. 2crore/annum Our future plan is to explore possibilities of exploring our products to S.A.A.R.C. countries. Introducing OTG in the product range and achieve a target turn over of Rs. 5 crore in next five years. We at Remson and Rallison Group have eight units manufacturing a wide range of electrical appliances including mixies, grinders, electric irons, room heaters, and leaders in Copper Tank Electrical Water Heaters (geysers) & Gas water heaters. We also manufacture ceiling fans at our unit at Bhadi in Himachal Pradesh. The fans have been designed to offer 11 per cent electricity saving when compared to competition. We have a well-known name in the water heaters segment and have been given a ‘five-star rating’ by Voluntary Organisation in Interest of Consumer Education (VOICE) for being the most energy saving water heaters among ten leading brands. We have a 50 years old experience in manufacturing of domestic and industrial heating elements made up of copper, water heaters, water heater safety devices, highly durable room heaters, hot iron, hot iron heating coils, and of all Rallison Wires & Cables. Rallison is a company that has made a mark for itself in a short period of over a decade. All due to its commitment to provide a wide variety of wires and cables from one source and that too a third party guarantee ISI mark. Rallison is a dependable name for safe distribution of power that lights up your homes and your streets, power that runs your factories, keep communication channels open all though 24 hours. Vijay pratap singh MBA

Remson and Rallison enters CFL segment

The Rs 200-crore Remson and Rallison Electricals Limited has entered the cluttered compact fluorescent lamp (CFL) segment with a range of 25 lamps of varying wattage and designs. Addressing a press conference here, chairman S K Babbar said the CFLs were of the highest standard conforming to regulations of the Bureau of Indian Standards (BIS). Each CFL will last for 8,000 hours and come with an unconditional guarantee of one year. Babbar said the CFLs were being manufactured at the company?s new plant at the Narela Industrial Estate, Delhi. ?We have imported machines from Korea to produce high quality CFLs,” he disclosed. The range is priced between Rs 100 and Rs 190 and CFLs come in both retrofit and non-retrofit makes. He said that the common complaint of CFLs not emitting ‘adequate light’ or getting damaged easily had been solved. CFLs are supposed to have a longer rated life and use less electricity than incandescent light bulbs thereby saving enough money in energy costs to make up for their initial higher price within some 500 hours of use. Babbar said Remson and Rallison CFLs confirmed to this. Vijay pratap singh MBA

The Remson and Rallison Group has eight units manufacturing a wide range of electrical appliances including mixies, grinders, electric irons, room heaters, and geysers. Remson is a well-known name in the geysers segment and was given a ‘five-star rating’ by Voluntary Organisation in Interest of Consumer Education (VOICE) for being the most energy-saving geyser among ten leading brands. VOICE had conducted the comparative testing of water heaters in Delhi, Mumbai, Bangalore and Kolkata. Remson geyers were the only one to get the five star rating. Remson has also launched gas-run geysers, which come with a digital display panel. These are priced at Rs 3,500 onwards. Babbar said Remson had diversified in the wire and cable segment and merged with sister concern Rallison. It was also in the process of setting up a new plant at Bhiwadi in Rajasthan for increasing its wire and cable manufacturing capacity. “We have a small plant at Bhiwadi and now want to increase capacity through a modern plant,” he said. The group also manufactures ceiling fans at its unit at Bhadi in Himachal Pradesh. The fans, he said, had been designed to offer 11 per cent electricity saving when compared to competition. Babbar said the company was already exporting to Sri Lanka, Nepal, Singapore and South Africa and was planning to open an office at Dubai in the next few months. “We will then cater to the entire Gulf market from Dubai,” he said.

Remson and Rallison to go public in `07

Remson and Rallison Electricals Limited will go public in April 2007. The initial public offering is to fund the company’s expansion plans and its increased focus in the growing wire and cable segment. “We have a well-charted future plan for achieving a turnover of Rs 1,000 crore by 2010,” said chairman S K Babbar. Remson and Rallison Electricals is on the approved list of suppliers for a number of public sector and private companies such as National Thermal Power Corporation Limited (NTPC), Reliance, Tata, Bajaj, Philips, DLF,and BHEL. Vijay pratap singh MBA

Contact details Company Name: Remson Appliances Contact Person: Mr. Vishal Grover (Manager) Telephone: +(91)-(11)-28114089 Mobile: +(91)-9311107111 Fax: +(91)-(11)-28112644 Vijay pratap singh MBA

Address: G- 1- 118, Mayapuri Industrial Area, Phase No. 2, Maya Puri Delhi, Delhi - 110 064 (INDIA) Website: http://www.rallison.com

FACT FILE Nature of Business Year of Establishment Number of Employees Turnover

: : : :

Wholeseller 1985 101 to 500 People US$ 10-25 Million (or Rs. 40-100 Crore Approx.)

Rallison has unfolded the new dimensions of progress and development by taking the initiatives to build a forte of intellectual prowess and zero-defect quality to shield the imperative expectations of the cable and wire industry. Vijay pratap singh MBA

Rallison, as one of the leading manufacturers of wires and cables in North India has the largest dealer and distributor network all over the India, which enables its products to reach every nook and corner of the country. We cater to the diversified needs of our reverent customers, thus providing them with the comprehensive solutions of wires and cables such as PVC/PE insulated wires, LT-PVC/XLPE power control, instrumentation cables, Flexible and House wires. Rallison also manufactures the cables in accordance to the customer specifications. Rallison was awarded the ISO-9001 certificate in the year 2002. In addition to this, Rallison is the first Delhi based cable manufacturing company to attain an ISO-9002 certification. The foundation of Rallison was laid in 1985 as a small unit in Badli working hand-in-hand with Remson, which is a name to reckon with in the appliance industry and which has recently bagged a Gold Medal at IITF 2002 for its undisputed quality commitment. Our philosophy is to build a zero-defect product, which carries value satisfaction for our customers. Rallison strongly believes that learning and improving is a continuous process for the growth of any company. Keeping up pace with radical transformation of technology, time and again, Rallison has proved its urge for quality by getting Best Vendors Award from Philips India for consecutive three years. Rallison has spread its wings by exporting products to Philips India having branches in Singapore, Malaysia, and Hong Kong and is emerging as a true contender for globalisation. Today competitiveness is the loudly uttered word in domestic and international markets. Rallison keeps a constant vigil on all the technological developments taking place in the cable industry and adopts them to keep up with the ever-changing market trends. Rallison is adhering to the yardsticks of the latest technology, which matches the international standards of quality. Rallison boasts of its means of processing, state-of-the-art machinery and equipment imported from USA, UK and Germany. With the present setup at Mayapuri, New Delhi, well equipped with state-of-the-art technology coupled with efficient, competent and result oriented professional team working round the clock, enables us to niche our way to success. Rallison has learnt "how to learn and hear the unheard voices" which enhances its capabilities to face the future challenges. Keeping this in mind, Rallison has added a 2 acres of land unit at Bhiwadi, Rajasthan which will be fully operational by July 2003. Rallison's objective as a corporate is to provide utmost satisfaction to its customers. It is only then that we can have a relationship with our customers, which will be fondly Vijay pratap singh MBA

cherished by the generations to come. Commitment, Teamwork and Dedication to quality have led and are still leading Rallison to a future of growth and prosperity. We are committed to continuous improvements in all our operations to ensure the highest level of customer satisfaction. We maintain a highly skilled workforce devoted to meeting and exceeding customer needs. To meet the current worldwide demand for wires and cables, Rallison has undertaken several expansions of its production facility and quality measures. These expanded and improved facilities enable Rallison to significantly reduce quoted delivery time and remain a major player in the Indian and international markets. Commitment, Teamwork and Dedication to quality have led and are still leading Rallison to a future of growth and prosperity. We are committed to continuous improvements in all our operations to ensure the highest level of customer satisfaction. We maintain a highly skilled workforce devoted to meeting and exceeding customer needs. To meet the current worldwide demand for wires and cables, Rallison has undertaken several expansions of its production facility and quality measures. These expanded and improved facilities enable Rallison to significantly reduce quoted delivery time and remain a major player in the Indian and international markets.

Our Mission Vijay pratap singh MBA

Applied research & business consulting offer a real world educational platform within which remson & our clients learn from each other . It is our mission at market probe to grow based on our client partnerships . We will continue to help our clients to achieve their business goals & protect their long term assets : their customers , their employees & their brands .

To meet our mission , we at market probe subscribe to a set of core values :  Maintain the integrity of the data.  Protect the confidentiality of all the client’s information  Aspire to the highest standards of intellectual honesty  Stay flexible to the new ideas Achieve the epitome of clients service and self improvement Introduction to Supply Chain Management

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Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption . A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Below is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed into finished goods in a single step, and then transported to Vijay pratap singh MBA

distribution centers, and ultimately, customers. Realistic supply chains have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an arborescent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. These organizations have their own objectives and these are often conflicting. Marketing's objective of high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm, and those where each channel member operates independently. Therefore coordination between the various players in the chain is key in its effective management. Cooper and Ellram [1993] compare supply chain management to a well-balanced and well-practiced relay team. Such a team is more competitive when each player knows how to be positioned for the hand-off. The relationships are the strongest between players who directly pass the baton, but the entire team needs to make a coordinated effort to win the race.

Supply Chain Decisions We classify the decisions for supply chain management into two broad categories -- strategic and operational. As the term implies, strategic decisions are made typically over a longer time horizon. These are closely linked to the corporate strategy (they sometimes {\it are} the corporate strategy), and guide supply chain policies from a design perspective. On the other hand, operational decisions are short term, and focus on activities over a day-to-day basis. The effort in these type of decisions is to effectively and efficiently manage the product flow in the "strategically" planned supply chain.

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There are four major decision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas.

Location Decisions The geographic placement of production facilities, stocking points, and sourcing points is the natural first step in creating a supply chain. The location of facilities involves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which the product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service. These decisions should be determined by an optimization routine that considers production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production limitations, etc. (See Arntzen, Brown, Harrison and Trafton [1995] for a thorough discussion of these aspects.) Although location decisions are primarily strategic, they also have implications on an operational level. Vijay pratap singh MBA

Production Decisions The strategic decisions include what products to produce, and which plants to produce them in, allocation of suppliers to plants, plants to DC's, and DC's to customer markets. As before, these decisions have a big impact on the revenues, costs and customer service levels of the firm. These decisions assume the existence of the facilities, but determine the exact path(s) through which a product flows to and from these facilities. Another critical issue is the capacity of the manufacturing facilities--and this largely depends the degree of vertical integration within the firm. Operational decisions focus on detailed production scheduling. These decisions include the construction of the master production schedules, scheduling production on machines, and equipment maintenance. Other considerations include workload balancing, and quality control measures at a production facility.

Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw materials, semi-finished or finished goods. They can also be inprocess between locations. Their primary purpose to buffer against any uncertainty that might Vijay pratap singh MBA

exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical in supply chain operations. It is strategic in the sense that top management sets goals. However, most researchers have approached the management of inventory from an operational perspective. These include deployment strategies (push versus pull), control policies --- the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location. These levels are critical, since they are primary determinants of customer service levels.

Transportation Decisions

The mode choice aspect of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Therefore customer service levels, and geographic location play vital roles in such decisions. Since transportation is more than 30 percent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firm's transport strategy. Vijay pratap singh MBA

Supply Chain Modeling Approaches Clearly, each of the above two levels of decisions require a different perspective. The strategic decisions are, for the most part, global or "all encompassing" in that they try to integrate various aspects of the supply chain. Consequently, the models that describe these decisions are huge, and require a considerable amount of data. Often due to the enormity of data requirements, and the broad scope of decisions, these models provide approximate solutions to the decisions they describe. The operational decisions, meanwhile, address the day to day operation of the supply chain. Therefore the models that describe them are often very specific in nature. Due to their narrow perspective, these models often consider great detail and provide very good, if not optimal, solutions to the operational decisions. To facilitate a concise review of the literature, and at the same time attempting to accommodate the above polarity in modeling, we divide the modeling approaches into three areas --- Network Design, ``Rough Cut" methods, and simulation based methods. The network design methods, for the most part, provide normative models for the more strategic decisions. These models typically cover the four major decision areas described earlier, and focus more on the design aspect of the supply chain; the establishment of the network and the associated flows on them. "Rough cut" methods, on the other hand, give guiding policies for the operational decisions. These models typically assume a "single site" (i.e., ignore the network) and add supply chain characteristics to it, such as explicitly considering the site's relation to the others in the network. Simulation methods is a method by which a comprehensive supply chain model can be analyzed, considering both strategic and operational elements. However, as with all simulation models, one can only evaluate the effectiveness of a pre-specified policy rather than develop new ones. It is the traditional question of "What If?" versus "What's Best?". Network Design Methods As the very name suggests, these methods determine the location of production, stocking, and sourcing facilities, and paths the product(s) take through them. Such methods tend to be large scale, and used generally at the inception of the supply chain. The earliest work in this area, although the term "supply chain" was not in vogue, was by Geoffrion and Graves [1974]. They introduce a multicommodity logistics network design model for optimizing annualized finished product flows from plants to the DC's to the final customers. Geoffrion and Powers [1993] later give a review of the evolution of distribution strategies over the past twenty years, describing how the descendants of the above model can accommodate more echelons and cross commodity detail. Breitman and Lucas [1987] attempt to provide a framework for a comprehensive model of a production-distribution system, "PLANETS", that is used to decide what products to produce, where and how to produce it, which markets to pursue and what resources to use. Parts of this ambitious project were successfully implemented at General Motors. Cohen and Lee [1985] develop a conceptual framework for manufacturing strategy analysis, where they describe a series of stochastic sub- models, that considers annualized product flows from raw material vendors via intermediate plants and distribution echelons to the final Vijay pratap singh MBA

customers. They use heuristic methods to link and optimize these sub- models. They later give an integrated and readable exposition of their models and methods in Cohen and Lee [1988]. Cohen and Lee [1989] present a normative model for resource deployment in a global manufacturing and distribution network. Global after-tax profit (profit-local taxes) is maximized through the design of facility network and control of material flows within the network. The cost structure consists of variable and fixed costs for material procurement, production, distribution and transportation. They validate the model by applying it to analyze the global manufacturing strategies of a personal computer manufacturer. Finally, Arntzen, Brown, Harrison, and Trafton [1995] provide the most comprehensive deterministic model for supply chain management. The objective function minimizes a combination of cost and time elements. Examples of cost elements include purchasing, manufacturing, pipeline inventory, transportation costs between various sites, duties, and taxes. Time elements include manufacturing lead times and transit times. Unique to this model was the explicit consideration of duty and their recovery as the product flowed through different countries. Implementation of this model at the Digital Equipment Corporation has produced spectacular results --- savings in the order of $100 million dollars. Clearly, these network-design based methods add value to the firm in that they lay down the manufacturing and distribution strategies far into the future. It is imperative that firms at one time or another make such integrated decisions, encompassing production, location, inventory, and transportation, and such models are therefore indispensable. Although the above review shows considerable potential for these models as strategic determinants in the future, they are not without their shortcomings. Their very nature forces these problems to be of a very large scale. They are often difficult to solve to optimality. Furthermore, most of the models in this category are largely deterministic and static in nature. Additionally, those that consider stochastic elements are very restrictive in nature. In sum, there does not seem to yet be a comprehensive model that is representative of the true nature of material flows in the supply chain.

Rough Cut Methods These models form the bulk of the supply chain literature, and typically deal with the more operational or tactical decisions. Most of the integrative research (from a supply chain context) in the literature seem to take on an inventory management perspective. In fact, the term "Supply Chain" first appears in the literature as an inventory management approach. The thrust of the rough cut models is the development of inventory control policies, considering several levels or echelons together. These models have come to be known as "multi-level" or "multi-echelon" inventory control models. For a review the reader is directed to Vollman et al. [1992]. Multi-echelon inventory theory has been very successfully used in industry. Cohen et al. [1990] describe "OPTIMIZER", one of the most complex models to date --- to manage IBM's spare parts inventory. They develop efficient algorithms and sophisticated data structures to achieve large scale systems integration. Vijay pratap singh MBA

Although current research in multi-echelon based supply chain inventory problems shows considerable promise in reducing inventories with increased customer service, the studies have several notable limitations. First, these studies largely ignore the production side of the supply chain. Their starting point in most cases is a finished goods stockpile, and policies are given to manage these effectively. Since production is a natural part of the supply chain, there seems to be a need with models that include the production component in them. Second, even on the distribution side, almost all published research assumes an arborescence structure, i. e. each site receives re-supply from only one higher level site but can distribute to several lower levels. Third, researchers have largely focused on the inventory system only. In logistics-system theory, transportation and inventory are primary components of the order fulfillment process in terms of cost and service levels. Therefore, companies must consider important interrelationships among transportation, inventory and customer service in determining their policies. Fourth, most of the models under the "inventory theoretic" paradigm are very restrictive in nature, i.e., mostly they restrict themselves to certain well known forms of demand or lead time or both, often quite contrary to what is observed. The preceding sections are a selective overview of the key concepts in the supply chain literature. Following is a list of recommended reading for a quick introduction to the area Idea The definition, put forward by an American professional association, is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise.[1] Supply Chain Management can also refer to Supply chain management software which are tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Supply Chain Management Problems Supply chain management must address the following problems: •

Distribution Network Configuration: Number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers.

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•

Distribution Strategy: Including questions of operating control (centralized, decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping, Cross docking, DSD (direct store delivery), closed loop shipping); mode of transportation (e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal, including TOFC and COFC; ocean freight; airfreight); replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL).

•

Trade-Offs in Logistical Activities: The above activities must be coordinated well together in order to achieve the least total logistics cost. Trade-offs exist that increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy.

•

Information: Integration of and other processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration etc.

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Inventory Management: Quantity and location of inventory including raw materials, work-in-progress (WIP) and finished goods.

•

Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain. The way supply chain is designed has significant implications on companies working capital, and can have important consequences especially in leveraged and distressed companies. [2].

Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional. Activities/functions Supply chain management is a cross-function approach to manage the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the endconsumer. As organizations strive to focus on core competencies and becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity. Vijay pratap singh MBA

Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities. Strategic •

Strategic network optimisation, including the number, location, and size of warehousing, distribution centers, and facilities

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Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics

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Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management

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Information Technology infrastructure, to support supply chain operations

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Where-to-make and what-to-make-or-buy decisions

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Aligning overall organizational strategy with supply strategy

Tactical •

Sourcing contracts and other purchasing decisions.

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Production decisions, including contracting, scheduling, and planning process definition.

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Inventory decisions, including quantity, location, and quality of inventory.

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Transportation strategy, including frequency, routes, and contracting.

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[Benchmarking] of all operations against competitors and implementation of best practices throughout the enterprise.

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Milestone payments

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Focus on customer demand.

Operational •

Daily production and distribution planning, including all nodes in the supply chain.

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Production scheduling for each manufacturing facility in the supply chain (minute by minute).

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Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers.

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Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers.

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Inbound operations, including transportation from suppliers and receiving inventory.

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Production operations, including the consumption of materials and flow of finished goods.

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Outbound operations, including all fulfillment activities, warehousing and transportation to customers.

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Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.

Supply chain management Organizations increasingly find that they must rely on effective supply chains, or networks, to successfully compete in the global market and networked economy.[3] In Peter Drucker's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. During the past decades, globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and tradeoffs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mintzberg, 1979). In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances and business partnerships, there were found to be significant success factors, following the earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices.[4] Second, technological changes, particularly the dramatic fall in information communication costs, which are a significant component of transaction costs, have led to changes in coordination among the members of the supply chain network (Coase, 1998). Many researchers have recognized these kinds of supply network structures as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and "Next Generation Manufacturing System".[5] In general, such a structure can be defined as "a group of semi-independent organizations, each Vijay pratap singh MBA

with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001). The security management system for supply chain is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC. Developments in Supply Chain Management Six major movements can be observed in the evolution of supply chain management studies: Creation, Integration, and Globalization (Lavassani et al., 2008a), Specialization Phases One and Two, and SCM 2.0. 1. Creation Era The term supply chain management was first coined by an American industry consultant in the early 1980s. However the concept of supply chain in management, was of great importance long before in the early 20th century, especially by the creation of the assembly line. The characteristics of this era of supply chain management include the need for large scale changes, re-engineering, downsizing driven by cost reduction programs, and widespread attention to the Japanese practice of management. 2. Integration Era This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of internet-based collaborative systems. This era of SC evolution is characterized by both increasing value-added and cost reduction through integration. 3. Globalization Era The third movement of supply chain management development, globalization era, can be characterized by the attention towards global systems of supplier relations and the expansion of supply chain over national boundaries and into other continents. Although the use of global sources in the supply chain of organizations can be traced back to several decades ago (e.g. the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with the goal of increasing competitive advantage, creating more value-added, and reducing costs through global sourcing. 4. Specialization Era—Phase One—Outsourced Manufacturing and Distribution In the 1990s industries began to focus on “core competencies” and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements by extending the supply chain well beyond the four walls and distributing management across specialized supply chain partnerships. Vijay pratap singh MBA

This transition also re-focused the fundamental perspectives of each respective organization. OEMs became brand owners that needed deep visibility into their supply base. They had to control the entire supply chain from above instead of from within. Contract manufacturers had to manage bills of material with different part numbering schemes from multiple OEMs and support customer requests for work -in-process visibility and vendor-managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of multiple, individual supply chains specific to products, suppliers, and customers who work together to design, manufacture, distribute, market, sell, and service a product. The set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands. 5. Specialization Era—Phase Two—Supply Chain Management as a Service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non asset based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management. At any given moment, market forces could demand changes within suppliers, logistics providers, locations, customers and any number of these specialized participants within supply chain networks. This variability has significant effect on the supply chain infrastructure, from the foundation layers of establishing and managing the electronic communication between the trading partners to the more-complex requirements, including the configuration of the processes and work flows that are essential to the management of the network itself. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of best in class domain specific partners to contribute to the overall value chain itself – thus increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is the leading reason why supply chain specialization is gaining popularity. Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root in transportation and collaboration categories most dominantly. This has progressed from the Application Service Provider (ASP) model from approximately 1998 through 2003 to the On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS) model we are currently focused on today. 6. Supply Chain Management Building off of globalization and specialization, SCM 2.0 has been coined to describe both the changes within the supply chain itself as well as the evolution of the processes, methods and tools that manage it in this new "era". Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute that Web 2.0 brings is it helps us navigate the vast amount of information available on the web Vijay pratap singh MBA

to find what we are looking for. It is the notion of a usable pathway. SCM 2.0 follows this notion into supply chain operations. It is the pathway to SCM results – the combination of the processes, methodologies, tools and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to the effects of global competition, rapid price fluctuations, surging oil prices, short product life cycles, expanded specialization, near/far and off shoring, and talent scarcity. SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to quickly manage future change for continuous flexibility, value and success. This is delivered through competency networks composed of best of breed supply chain domain expertise to understand which elements, both operationally and organizationally, are the critical few that deliver the results as well as the intimate understanding of how to manage these elements to achieve desired results, finally the solutions are delivered in a variety of options as no-touch via business process outsourcing, mid-touch via managed services and software as a service (SaaS), or high touch in the traditional software deployment model.Supply chain business process integration Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become appropriate. Marketing, responding to customer demand, communicates with several distributors and retailers as it attempts to satisfy this demand. Shared information between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flow. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. The key supply chain processes stated by Lambert (2004) [6] are: •

Customer relationship management

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Customer service management

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Demand management

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Order fulfillment

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Manufacturing flow management

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Supplier relationship management

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Product development and commercialization

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Returns management

Much has been written about demand management. Best in Class companies have similar characteristics. They include the following: a) Internal and external collaboration b) Lead time reduction initiatives c) Tighter feedback from customer and market demand d) Customer level forecasting Vijay pratap singh MBA

One could suggest other key critical supply business processes combining these processes stated by Lambert such as: a. Customer service management b. Procurement c. Product development and commercialization d. Manufacturing flow management/support e. Physical distribution f. Outsourcing/partnerships g. Performance measurement a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service provides the source of customer information. It also provides the customer with real-time information on promising dates and product availability through interfaces with the company's production and distribution operations. Successful organizations use following steps to build customer relationships: •

determine mutually satisfying goals between organization and customers

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establish and maintain customer rapport

•

produce positive feelings in the organization and the customers

b) Procurement process Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship, where both parties benefit, and reduction times in the design cycle and product development are achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling and quality assurance, many of which include the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research into new sources or programs. c) Product development and commercialization Here, customers and suppliers must be united into the product development process, thus to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must: Vijay pratap singh MBA

1. coordinate with customer relationship management to identify customer-articulated needs; 2. select materials and suppliers in conjunction with procurement, and 3. develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. d) Manufacturing flow management process The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes, and sssssmust accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency of demand to customers. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. e) Physical distribution This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers, wholesalers, retailers). f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, to manage and control this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. Vijay pratap singh MBA

A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts internal measures are generally collected and analyzed by the firm including 1. Cost 2. Customer Service 3. Productivity measures 4. Asset measurement, and 5. Quality. External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) customer perception measurement, and 2) best practice benchmarking. Components of Supply Chain Management are 1. Standardization 2. Postponement 3. Customization Theories of Supply Chain Management Currently there exists a gap in the literature available in the area of supply chain management studies, on providing theoretical support for explaining the existence and the boundaries of supply chain management. Few authors such as Halldorsson, et al. (2003), Ketchen and Hult (2006) and Lavassani, et al. (2008b) had tried to provide theoretical foundations for different areas related to supply chain with employing organizational theories. These theories includes: •

Resource-based view (RBV)

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Transaction Cost Analysis (TCA)

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Knowledge-based view (KBV)

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Strategic Choice Theory (SCT)

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Agency theory (AT)

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Institutional theory (InT)

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Systems Theory (ST)

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Network Perspective (NP)

Supply chain sustainability Supply chain sustainability is a business issue affecting an organisation’s supply chain or logistics network and is frequently quantified by comparison with SECH ratings. SECH ratings are defined as social, ethical, cultural and health footprints. Consumers have become more aware of the environmental impact of their purchases and companies’ SECH ratings and, along with non-governmental organisations ([NGO]s), are setting the agenda for transitions to organically-grown foods, anti-sweatshop labour codes and locally-produced goods that support independent and small businesses. Because supply chains frequently account for over 75% of a Vijay pratap singh MBA

company’s carbon footprint[7] many organisations are exploring how they can reduce this and thus improve their SECH rating.

Components of Supply Chain Management Integration The management components of SCM The SCM components are the third element of the four-square circulation framework. The level of integration and management of a business process link is a function of the number and level, ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan, 1985). Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link. The literature on business process re-engineering,[8] buyer-supplier relationships,[9] and SCM[10] suggests various possible components that must receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identified the following components which are: •

Planning and control

•

Work structure

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Organization structure

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Product flow facility structure

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Information flow facility structure

•

Management methods

•

Power and leadership structure

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Risk and reward structure

•

Culture and attitude

However, a more careful examination of the existing literature[11] will lead us to a more comprehensive structure of what should be the key critical supply chain components, the "branches" of the previous identified supply chain business processes, that is, what kind of relationship the components may have that are related with suppliers and customers accordingly. Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996). A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects of financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are in support of primary participants. Third level channel Vijay pratap singh MBA

participants and components that will support the primary level channel participants, and which are the fundamental branches of the secondary level components, may also be included. Consequently, Lambert and Cooper's framework of supply chain components does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components (see Bowersox and Closs, 1996, p.g. 93). That is, what supply chain components should be viewed as primary or secondary, how these components should be structured in order to have a more comprehensive supply chain structure, and to examine the supply chain as an integrative one (See above sections 2.1 and 3.1). Reverse Supply Chain Reverse logistics is the process of planning, implementing and controlling the efficient, effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal. Reverse logistics is also referred to as "Aftermarket Customer Services". In other words, anytime money is taken from a company's Warranty Reserve or Service Logistics budget, that is a Reverse Logistics operation.

Global Supply Chain Management Corporerate controlling for global value chain As we can recognize from the developing of supply chain management theory, it is more and more involved in globalization and multi-country supply chain. This gives the challenge not only on supply chain level (quantity oriented) and also value chain level (value oriented.) Supply and value chain trends can be concluded as following: Supply and Value Chain Trends •

Globalization

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Increased cross border sourcing

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Collaboration for parts of value chain with low-cost providers

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Shared Service Centers for logistical and administrative functions

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Increasingly global operations require increasingly global coordination and planning to achieve global optimums

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Complex of problems comprises also midsized companies to an increasing degree

This gives lots of benefits to manufacturer because it will be possible to have bigger lot size, possibility to get choices of lower taxes, and recognizing better environment (culture, infrastructure, special tax zone, sophisticated OEM) for their products. Meanwhile, on top of the problems we recogniz in supply chain management, we are going to face much more challenging when the scope of supply chain is global. Because the supply chain is given the circumstance of Vijay pratap singh MBA

bigger scope, the lead time is much longer. Furthermore, there are more issues involved such as multi-currency, different policy and different laws. The consequent problems includes:1. different currencies and valuation in different country; 2. different tax laws(Tax Efficient Supply Chain Management[12]); 3. different trading protocols; 4. lack of transparency of cost and profit.

Logistics Maintain Your Competitive Advantage! In an already crowded and dynamic global market, it is harder for business to maintain its Vijay pratap singh MBA

competitive edge and to continue to meet the demanding and sophisticated needs of its customers. Many companies, big and small, have turned to Operations Research/Management Science (OR/MS) solutions and tools to raise their profit margin and competitiveness. These decision support solutions have enabled them to make quicker, better and coherent decisions at both strategic and operational levels. Companies that had wisely invested on such solutions achieved significant reduction in operating costs, improved service quality and higher customer retention. All these translate to higher productivity and bigger returns on the company’s assets. Integrated Logistics Management The core enabling technology (besides IT) to bring about integrated logistics is operations research (OR). OR is the application of mathematical methods such as linear programming, game theory, statistical analysis and simulation to solve real world (complex) management problems. It always take a total systems and total cost perspective of the management problem so that the solution does not inadvertently create problems in other areas or that savings in one area does not worsen the overall company’s performance. Decision Support Systems (DSSs) are applications embodied with OR technologies to solve specialised problems. These systems have, time and again, proven to produced significantly better solutions to structured problems and in a much shorter time than those produced by the most experienced planner. Coupled with IT applications, it provide a powerful system to tackle and integrate the many aspects of logistics planning.

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Supply Chain Management Supply chain management is about suppliers, manufacturers, third party logistics providers, wholesalers and retailers sharing information so that goods move faster through the system. However, what is usually lacking is an overall global or regional strategic plan that integrates the activities of the many players. A strategic plan that ensure that the overall cost of delivering goods to customers is the lowest possible while maintaining the desired service level. Different OR techniques (such as optimisation and simulation technologies) lend themselves readily for addressing issues like: the appropriate product specialisation and production capacity of the plants; location and size of distribution centres; assignment of customers to be serviced by distribution centres; mode of transportation for every link in the supply chain; optimal inventory level to meet desired service level. The end result is a globally optimised supply chains that perform robustly under foreseeable future scenarios, thus avoiding costly infrastructure changes.

Tactical Transportation While supply chain design deals with the flow and stocking of goods, transportation optimisation examines the shipment (flow) process itself. The typical transportation optimiser will search for opportunities to aggregate compatible orders or splitting orders to fit the transportation media (e.g. containers), identify pooling points to consolidate orders for long haul using larger & hence cheaper media and routing of pick-up and drop-off orders to increase backhaul. The judicious use of OR to optimise shipment plan has been generating large savings in transportation. 10-35% reduction in freight expenses had been achieved through optimal aggregation/ consolidation, multi-modal multi-leg carrier selection, rating and routing of freight orders.

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Tactical Storage and Warehouse

Warehouses are long term investment and must be designed to grow with the business. Dedicated simulation software is able to model the impact of equipment selection, layout and work processes to derive the optimal design for the warehouse facilities. Other OR tools can also generate the optimal storage arrangement for efficient retrieval and turnover of stocks. By studying the range of business and cost scenarios over the planning horizon, the logistics planner would be able to ensure that the warehouse is optimally designed for its anticipated range of business scenarios. Packing & Stuffing

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Typical system that generates pick list for each vehicle do not necessary know if all items could fit into the vehicle. The discreteness of items will inevitably result in some space that cannot be used. Hence, knowing how items should be packed or stuffed so that capacity is well used is another important cost saver. The load planning software can be integrated with the routing software to generate an optimal stuffing plan that considers compatibility, stackability and unloading sequence. Planners are thus assured that the routes and loading plans would both work. Operational Fleet Routing & Loading The routes derived in transportation optimisation are mainly long-haul. For short haul deliveries, there are ready solutions, that are tightly integrated to warehouse management systems, to efficiently route fleets of vehicles and vessels and plan picking and loading. Stipulated time windows for pick-ups and deliveries and vehicular weight and spatial capacities would be respected, as will constraints such as delivery within x minutes upon pickup (useful for perishable goods). Time required at various stops - in terms of fixed time to park and variable time dependent on amount to be loaded or off-loaded - can be specified. Travel speeds along various types/zones of roads can be stipulated for both peak and non-peak hours or piped in either from GPS systems mounted on the vehicles or real-time traffic information services. The scheduled arrival and departure times for each stop can thus be worked out quite accurately. Routes can be generated dynamically and ad hoc backhaul or other opportunities can also be assigned to the most suitable vehicle. Managers can view over the web the progress of deliveries. The benefits of operational fleet routing include 5-25% reduction in fleet operating cost and improved customer service with better estimated arrival time.

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Vendor Managed Inventory Vendor managed inventory, coordinated by an integrated logistics system, allows inventory to be optimised together with transportation. By knowing the product value as well as storage capacity at each site, and routinely collecting information on consumption rate, current inventory levels, forecasted demand and status of shipments, the system can optimise the right quantities of replenishments to be sent at the right time to ensure that service levels are maintained while minimising cost of inventory and transportation.

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CONCEPT OF SUPPLY CHAIN MANGEMENT

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Vijay pratap singh MBA

Rachna Electricals Pvt Ltd, Delhi

Document No: M-REPL

Design Control

As the organization is not involved in original design activities, the provision of ISO 9002 are applicable which exclude design & development requirements. Vijay pratap singh MBA

Rachna Electricals Pvt Ltd, Delhi

Document & Data Control

4.5.1

PURPOSE

4.5.2

SCOPE

4.5.3

RESPONSIBI LITY

4.5.4

DESCRIPTIO N i)

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To ensure a system to control all documents and data relating to Quality system in the organization. Applicable to all documents of internal & external origin relating to Quality system in the organization. M.R. is responsible for ensuring compliance to the system. He is also responsible for maintaining master list of documents, master copies of all current and obsolete documents & issue of all documents. Procedure for Documents & Data control exist, which ensure that:All documents of internal origin as required shall be prepared in consultation with respective Deptt. Incharge & got reviewed and approved before its issue, by the designated authorities –as detailed in the procedure. However this Q.M. is approved by MD

ii) iii)

v)

vi) vii)

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A master list is maintained by M.R. to identify the documents and their current revision status .A similar list is maintained for external origin documents. Any change required in any document of internal origin is made with the approval of concerned Approving Authority. The nature of change is suitably communicated while issuing any changed document. All documents of external origin of use under Quality system are identified by M.R. and kept current by appropriate interaction with issuing authority. A system exists for issue of appropriate documents on need to know basis, to all locations where operations essential to the effective functioning of the Quality system are performed All invalid/obsolete documents are removed from all points of use. Copies of Obsolete documents are retained for legal/knowledge preservation purposes, suitably identified by M.R.

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Vijay pratap singh MBA

Rachna Electricals Pvt Ltd, Delhi

4.6.1

PURPOSE

4.6.2

SCOPE

4.6.3

RESPONSIBILITY

4.6.4

DESCRIPTION i)

ii) iii)

iv) Vijay pratap singh MBA

PURCHASING

To establish and maintain a system to ensure that purchased product/service conforms to specified requirements Applicable to purchased product/ including Raw materials/components/ for finished product which directly affect the Quality of product manufactured by the organization. Purchase In charge & MD Are Overall Responsible The procedures for purchasing ensure that:A list of approved vendors selected on the basis of their ability to meet the purchase specifications is established, maintained and updated for all identified items &. Review of performance of vendors is carried out periodically. Vendor wise records of performance are maintained for the approved vendors as detailed in relevant procedures. Based on the system of periodic assessment of vendor's performance, appropriate controls are exercised over vendors, keeping in view the factors Such as the type of product/service and its availability. The purchase orders contain or refer to the relevant purchase specifications/Purchasing

v)

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data. Where verification of purchased product is required to be made at vendor's premises, the verification arrangement and the method of product release is specified in Purchase order. However no verification of purchased product by customer is applicable.

Rachna Electricals Pvt Ltd, Delhi

CONTROL OF CUSTOMER SUPPLIED PRODUCTS

As the customer does not provide any product for incorporation in the final Product for despatch, the Vijay pratap singh MBA

provisions of this clause are not applicable. Rachna Electricals Pvt Ltd, Delhi PRODUCT IDENTIFICATION & TRACEABILITY 4.8.1 4.8.2 4.8.3 4.8.4

PURPOSE

To establish and maintain a system for identifying the product and maintaining its traceability by suitable means appropriately. SCOPE Applicable to products at all stages from receipt of raw material/components to despatch of finished product. RESPONSIBIL Concerned production incharge is responsible for ITY maintaining identification and traceability at all stages from receipt to despatch. DESCRIPTION The procedure for product identification & traceability ensures that:i) Incoming Raw material/components are identified

Vijay pratap singh MBA

ii)

iii) iv)

and are stored at designated locations. Concerned Incharge production ensures maintenance of identification & traceability during process through ,Products name, stamp & marking For identification various components & products identification plates are affixed on them specific details covered in relevant procedure. The traceability of the finial product is maintained through its rate of manufacturing

Rachna Electricals Pvt Ltd, Delhi PROCESS CONTROL

4.9.1

PURPOSE

4.9.2

SCOPE

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To plan the production processes & ensure that they operate under controlled conditions. Applicable to processes relating to production &

4.9.3

4.9.4

despatch of Electrical Home Appliances by Rachna Electricals Pvt. Ltd. RESPONSIBI Concerned Incharge (production) is responsible for LITY ensuring compliance to the system for all stages of processing to despatch. Supervisor (maintenance) is responsible for ensuring compliance to the system of maintenance for all identified M/C/equipment. DESCRIPTIO The system for process control ensures that all N Production processes are identified & planned. The Processes are carried out under controlled conditions which include the following :Quality Plans. i) Documented Work Instructions defining the manner of ii) Production, equipment to be used, are made available at appropriate location. Use of appropriate resources including plant, iii) machinery and trained personnel with appropriate working environment. Compliance to the documented Work Instructions, iv) Procedures and other specified requirements is ensured. v) Suitable maintenance of equipment’s to ensure continuing process capability. Good housekeeping practices for ensuring conducive work atmosphere. vi) The criteria of workmanship which is stipulated in the or documented work instructions. vii)

s viii)

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Processes are carried out by experienced operators under constant monitoring, with specified control parameters, where applicable Following processes have been identified as special processes: a) Gas & Spot Welding b) Annealing c) Phosphating d) Paint Baking

These processes are operated by an experienced operators/works qualified for the process by virtue of having atleast one year's experience on respective m/c operation. These processes are pre-qualified with identified controlled parameters.

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Rachna Electricals Pvt Ltd, Delhi INSPECTION & TESTING

4.10.1 PURPOSE 4.10.2 SCOPE

To ensure that required Inspection & Testing of product is carried out at all stages ensuring that the end product conforms to specified requirements Applicable to product at receipt, inprocess and final inspection stages

4.10.3 RESPONSIBI LITY Incharge (LAB) for all incoming materials & inprocess i) and final products with the help of lab engineer.

4.10.4 DESCRIPTIO The procedures for inspection & testing ensure that:N All incoming critical materials are inspected /tested as i) per different criteria. Due consideration has been given to the control exercised at vendor's end for deciding the amount & nature of inspection, in the Quality plans for receipt inspection.

ii) Vijay pratap singh MBA

Under normal situation, incoming product is not used or processed until it has been inspected as per quality plan for receipt and inspection report indicating

iii) iv)

v)

vi) vii) viii)

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conformity is available . No product is released for urgent production/booking without completion of verification Inspection/Testing at incoming stage. Inprocess product is tested/inspected as per the Procedure & as per quality plans. Product is held back at each stage till the required inspection is completed at that stage and results have been authorized. Where required by quality plan, recording of inspection/results is done. Final Inspection is carried out as per inspection procedure to complete the evidence of product conformance to specified requirements for ISI mark products the inspection, testing & the recording is carried out as per the STI No material is released from final inspection stage to until desired testing at all stages is complete and verified as acceptable. No lot is dispatched until its Inspection as per the quality plan criteria has been satisfactorily completed & results have been authorized. Records are maintained to provide evidence that the product is inspected & tested and has Passed / Failed according to defined acceptance criteria.

Rachna Electricals Pvt Ltd, Delhi

SERVICING

As the organization does not undertake regular after sale servicing of products provision of This clause of ISO-9002 is not applicable. The complaints received from customers are attended Vijay pratap singh MBA

to promptly through undertaking minor repairs where required. This has been covered in Procedure for Resolution of customer complaint. Rates of job work orders RAJAN PLATERS(ELECTROPLATING) s.no. Item Cost(in Rs./unit) 1. Immersion heater 4.00 2. Ticona element with 5.00 pocket 3. Cup type element 4.00 4. Kettle element 4.00 5. Midget element 4.00 6. Sterlizer 4.00 7. Ass. Plate 7.00 (1.5 ltr.-10ltr.) Vijay pratap singh MBA

8.

Ass. Plate (15-35ltr.)

13.00

9.

Ass. Plate(Supreme) 15l &25l B.T.H.III Rod B.T.H.II Rod Midget with pocket Otg grill Otg elemnt polish(buff) Ass. Plate 100ltr. Ass. Plate 50ltr. Safety valve horiz. Ass. Plate(Supreme) 35l &50l Tikona d/rod

20.00

10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

1. 2. 3. 1. 2. Vijay pratap singh MBA

J.E. ENTERPRISES (power pressing of brass circle/sheet) Ass. Plate 6” Ass. Plate mini /6 ltr. Katori (all type) S.B. ENTERPRISES Deep drawing of copper circle Deep drawing of

8.00 5.00 5.00 8.00 4.50 25.00 15.00 1.00 25.00 6.00

1.25 1.00 0.65 6.00 9.00

copper circle (long size)

Rachna Electricals Pvt Ltd, Delhi PROCESS FLOW CHART

PROCESS FLOW CHART BUSINESS DEVELOPMENT Vijay pratap singh MBA

ORDER BOOKING & REVIEW PROCUREMENT & RECEIPT

INSPECTION & TESTING

STORAGE

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PACKING MATERIAL

PRODUCTS/ COMPONENTS

REPACKING

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SKIN PACKING

SHRINK PACKING

STAMPING/ LABELLING

FINAL INSPECTION

DOCUMENTATION

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LOADING & DESPATCH

SPECIFICATION-8

SECTION GEYSER

MATERIAL Clamps

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SPECIFICATION As per sample on the sample board

REMARKS

Element

Assembly plates Rubber Gasket Brass screw for assembly plate M.S. bolt M.S. washer Brass Nut (EARTHING) 10mm Brass Thimble (small/big) Rivet (for CRC body) Name plate for A.B.S. Geyser Name plate for CRC Geyser Name plate for immersion Katori tikona Katori sp. Hot Katori oval

SPECIFICATION-9

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As per sample on the sample board As per sample on the sample board As per sample on the sample board

Pressed 9hole

As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board

2/3 hole 2/3 hole 2hole

SECTION Element

GEYSER

MATERIAL

SPECIFICATION

Katori Cup Type Katori cup type Brass Top 1¼” Brass Top 1½” Brass Top 2” Brass Top2½” M.S. Top 2½” Screw for immersion Cup type washer M –patti Fiber Patti

As Per Sample On The Sample Board

FUSE NUT

1. 2. 3. 4.

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REMARKS 2 hole Big

As per sample on the sample board

2/3 hole

As per sample on the sample board

2/3/4/5 hole

As per sample on the sample board

2/3/4/5/6hole

As per sample on the sample board As per sample on the sample board As per sample on the sample board

6/7 hole 6/7 hole 7 hole

As per sample on the sample board As per sample on the sample board As per sample on the sample board As per sample on the sample board I.D. = 11.5mm+0.1mm O.D. = 17.8mm+ 0.2mm Material = Brass Melting Point = 90 º C +2 º C

For 15Ltr to 50Ltr C.R.C. & For 15Ltr, 25Ltr A.B.S.

-------DO-----

-------DO-----

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1. 2. 3. 4. 1. 2. 3. 4.

I.D. = 8.3mm+0.1mm O.D. = 13.7+0.2mm Material = Brass Melting Point = 90 ºC +2 º C I.D. = 11.7 +0.1mm O.D. = 17.0 +0.2mm Material = Brass Melting = 98 ºC +2 º C

For 6Ltr, 10Ltr C.R.C. & A.B.S. For Horizontal Geyser

Dealer /Distributor Registration Form 1. 2.

Name Of The Firm Name Of The Owner(s)

: :

1)______________________________ 2)_______________________________

3. Type Of Business

:

4. Annual Turnover For Last 3 Years : 3)_____________ 5. Areas You Want To Cover (subject to availability)

1)______________ 2)______________

:

6. What would be the sales target for next 3 years: 1)___________________ (ONLY FOR REMSON RANGE OF APPLIANCES)

2)___________________ 3)___________________

__________________________________________________ Signature Of The Prop rioter /Director/Partner Of The Firm

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RECEIPT INSPECTION FORM 1. ITEM :

4. SPECIFICATION REFERENCE:

2. LOT SIZE:

5.

VENDOR:

3. SAMPLE SIZE: TEST REQUIREMENTS: ABCD-

EFGH-

Requirements

samples

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Remarks A

B

C

D

E

F

G

H

PURCHASING INDENT Please arrange for the material/component/spare parts as described below: S.NO.________ S.No.

MATERIAL DESCRIPTION

Approved by.

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DATE:-________ QUANTITY

REQUIRED ON

REQUIRE D FOR

STOCK BALANCE

SIGNATURE OF G.M. DEPTTRGE To Purchase In charge

SPECIFICATION-10

SECTION

MATERIAL

Geyser

Corrugated boxes

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SPECIFICATION Length = 420mm Breadth =285mm Height =295mm No. of ply =5 Price in Rs. To be printed=1800 Colour of binding cloth- Red Length = 420mm Breadth =285mm Height =295mm No. of ply =5 Price in Rs. To be printed =2640 Colour of binding cloth-Blue Length =485mm Breadth =310mm Height =325mm No. of ply =5 Price in Rs. To be printed = 1980 Colour of binding cloth-Red Length=485mm Breadth=310mm Height=325mm

REMARKS For 6 ltr. Local

For 6 ltr. Outer

For 10 ltr. Local

For 10 ltr. Local

No. of ply=5 Price in Rs. To be printed=3000 Colour of binding cloth-Blue Length=610mm Breadth=385mm Height=375mm No. of ply=7 Price in Rs. To be printed = 2900 Colour of binding cloth-Red Length=610mm Breadth=410 Height=415mm No. of ply=5 Price in Rs. To be printed = 3800 Colour of binding cloth-Blue Length=530mm Breadth=360mm Height=360mm No. of ply=7 Price in Rs. To be printed =2900 Colour of binding cloth-Red

For 15 ltr. SQ. Local

For 15 ltr. SQ. Outer

For 15 ltr. RD. Local

SPECIFICATION-11 SECTION

MATERIAL

Geyser

Corrugated boxes

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SPECIFICATION Length=560mm Breadth=380mm Height=410mm No. of ply=5 Price in Rs. To be print ed=3800 Colour of binding cloth-blue Length=640mm Breadth=420mm Height=415mm No. of ply=7 Price in Rs. To be print ed=3200 Colour of binding cloth-Red

REMARKS For 15 Ltr. RD. Outer

For 25 Ltr. SQ. Local

Length=685mm Breadth=465mm Height=435mm No. of ply=5 Price in Rs. To be printed = 4200 Colour of binding cloth-Blue Length=670mm Breadth=365mm Height=360mm No. of ply=7 Price in Rs. To be print ed=3200 Colour of binding cloth-Red Length=700mm Breadth=375mm Height=410mm No. of ply=5 Price in Rs. To be printed=4200 Colour of binding cloth-blue Length=670mm Breadth=365mm Height=360mm No. of ply=7 Price in Rs. To be print ed=3550 Colour of binding cloth-Red Length = 760mm Breadth =460mm Height = 490mm No. of ply = 5 Price in Rs. To be printed =4690 Colour of binding cloth-Blue

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For 25 Ltr. SQ. OUTER

For 25 Ltr. RD. LOCAL

For 25 Ltr. RD. OUTER

For 35 Ltr. SQ. Local

For 35 Ltr. SQ. OUTER

SPECIFICATION-12 SECTION

MATERIAL

Geyser

Corrugated boxes

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SPECIFICATION Length =680mm Breadth =385mm Height =400mm No. of ply =7 Price in Rs. To be printed = 3550 Colour of binding cloth-Red Length =750mm Breadth =450mm Height =450mm No. of ply =5 Price in Rs. To be printed = 4690 Colour of binding cloth-Blue Length = 950mm Breadth =440mm Height =455mm No. of ply =7 Price in Rs. To be printed =4850 Colour of binding cloth-Red Length=980mm Breadth=470mm Height=490mm No. of ply=7 Price in Rs. To be printed = 5890 Colour of binding cloth-Blue Length =1070mm Breadth =470mm Height =480mm No. of ply =9 Price in Rs. To be printed = 7480 Colour of binding cloth-Red Length =1070mm Breadth =470mm Height =480mm No. of ply =9 Price in Rs. To be printed = 10200

REMARKS For 35 ltr. RD. Local

For 35 ltr. RD. OUTER

For 50 ltr. Local

For 50 ltr. Outer

For 70 ltr. Local

For 70 ltr. Outer

Colour of binding cloth-blue Length =430mm Breadth =310mm Height =625mm No. of ply =7 Price in Rs. To be printed = n.a. Colour of binding cloth-n.a.

6 ltr. Master carton

SPECIFICATION-13

SECTION

MATERIAL

Geyser

Corrugated boxes

Geyser

Welding wire

Element

Welding wire

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SPECIFICATION Length =515mm Breadth =335mm Height =665mm No. of ply =7 Price in Rs. To be printed =n.a. Colour of binding cloth-n.a. For assembly plate nominal thickness of the welding wire =2.5mm+0.2mm For copper tank nominal thickness of the welding wire =3.5mm+0.2mm For heating element nominal thickness of the welding wire =1.5mm+0.2mm

REMARKS 10 ltr master carton

SPECIFICATION-14

SECTION

MATERIAL

Geyser

PVC Lead ( CRC)

----Do----Geyser ABS

PVC lead with Top

----Do----Element

Immersion Lead With Top

----Do--------Do--------Do-----

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SPECIFICATION Length of lead = 1.25 meter Ampere = 16 Lead specification = 32/20 ,3 core Length of lead = 1.25 meter Ampere = 16 Lead specification = 48/20 ,3 core Length of lead = 1.25 meter Ampere = 16 Lead specification = 32/20 ,3 core Length of lead = 1.25 meter Ampere = 16 Lead specification = 48/20 ,3 core Length of lead after Top = 2.0 meter Ampere = 6 Lead specification = 24/20 ,3 core Length of lead after Top = 2.0 meter Ampere = 16 Lead specification = 24/20 ,3 core Length of lead after Top = 2.0 meter Ampere = 16 Lead specification = 32/20 ,3 core Length of lead after Top = 1.15 meter Ampere = 6 Lead specification = 14/52 ,2 core

REMARKS For 15 Ltr. To 35 Ltr. For 6 Ltr. , 10 Ltr. , 50 Ltr & above For 15 Ltr. To 25 Ltr. For 6 Ltr. & 10 Ltr. For 1000 watt For 1500 watt For 2000 watt For 250 w & 500w

SWOT ANALYSIS STREGNTH •

The greatest strength of Remson India is its strong brand image Remson India is one of the major player in the Market Research.

•

Remson India focuses on Customer satisfaction, value and loyalty practice.

WEAKNESS •

The first weakness of Remson and Rallison India is its late entrance in the market.

•

Low availability of adequate infrastructural facilities

•

Lack of adequate quality control & testing methods as per international standards

OPPORTUNITY • Customer is interested in after sale services. • The increasingly demand of Market Research. Vijay pratap singh MBA

• The entire corporate sector is still not targeted as potential for marketing •

There is less awareness and low level of the penetration about the Corporate Scheme.

THREATS • Less awareness about the Market Research. • Brand loyalty of the customers. •

The old existing companies in the market

•

High inventory carrying cost

•

High taxation

•

High packaging cost

•

Competition between national and regional players

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NEED FOR THE PROJECT In today’s market consumers are rulers. Customers are not aware of the this type of product and they want to do after sale services. In this project we learn that How we can save the time in delivering the product to consumers.The past was sellers market. Companies use to make product and consumer buys it after sales service as provided on the description of the company. They want to provide better quality in less price . But now the face of the market has already been fully changed from sellers market, now it becomes buyers market. To survive in this competitive market, company should take proper care of their customer and consumer needs and wants which gave them optimum level of satisfaction. So they are providing the better quality services to the customer. This role of marketing departments in an organization is to create demand according to the product. Once customer knows the product and purchase he always looks for more such as a good prominent quality and timely after sales service.

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Research methodology Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion an getting result. Therefore, research methodology is the way to systematically solve the research problem. TYPE & SCOPE OF THE RESEARCH: Survey / Study conducted on understanding customer behavior leading towards understanding customer. This was carried out on personal interviews of the ex- customer of the company based on records provided by the company. SAMPLE DESIGN:The sample was designed based on the customers needs. All the information supposed to be done in the field only. The database of customer was provided by the company. We reached to the customer offices with prior information and by taking appointment as the data base of respondents were made available to us by the Remson and Rallison Company only. (1) Define the problem and its objectives :- This includes an effective job in planning and designing a research project that will provide the needed information. It also includes the establishment of a general framework of major marketing elements such as the industry elements, competitive elements, marketing elements and company elements. Vijay pratap singh MBA

(2)

Identify the problem :- Identifying the problem involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of company’s officials.

(3)

Determining the specific Information needed :- In general the producer, the manufacturer, the wholesaler and the retailer try to find out four things namely :(1) (2) (3) (4)

What to sell When to sell Where to sell How to sell

(4) Determine the sources of information :(a)

(b)

(4)

Primary Data :- Primary datas are those which are gathered specially for the project at hand, directly – e.g. through interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade association’s executives & other businessman & even competitors. Secondary Data :- These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports & journals, trade, professional and business associations publications & reports.

Decide Research methods for collecting data :- If it is found that the secondary data cannot be of much use, collection of primary data become necessary. Three widely used methods of gathering primary data are A) Survey B) Observation C) Experimentation

A) Survey Method :- In this method, information gathered directly from individual respondents, either through personal interviews or through mail questionnaires or telephone interviews. Vijay pratap singh MBA

B) Observation Method :- The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique. C) Experimental Method :- This method involves carrying out a small scale trial solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same as those that will be encountered later when conclusions derived from the experiment are applied to a broader marketing area. D) The Panel Research :- In this technique the same group of respondents is contacted for more then one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product.

(5)

Tabulate, Analysis and Interpret the Data :-

The report must give/contain the following information:a) The title of research b) The name of the organization for which it has been Conducted c) The objectives of research d) The methodology used e) Organization and the planning of the report f) A table of contents along with charts and diagrams used in the reports g) The main report containing the findings h) Conclusion arrived at end recommendations suggested i) Appendices (containing questionnaire / forms used sample design, instructions.) (1)

Follow-up the study :- The researchers, in the last stage, should follow up this study to find if his recommendation are being implemented and if not, why.

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LIMITATION – •

Now, companies are implementing a new type of supply chain management, where the firm views the supply channel as a whole system instead of concentrating of each part of the process.

•

supply chain is affected by external links with such members as suppliers, partners, and customers, they often forget that success also depends on internal departments that serve one another and contribute to the value adding process .

•

There may be severe resistance within the company when implementing SCM, because it requires modification of the attitudes and behavior of those involved in the system employees and the employer.

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•

A lack of understanding by senior management is another possible reason for the resistance to supply chain management given that an unwritten rule of business is to minimize risk and cover all angles.

Suggestion and recommendation •

•

Applications for Supply chain management accreditation must include documents as corporate templates that meet requirements and demonstrate its consistent implementation, including documentation that demonstrates the applicant’s ability to provide the required quality management for applicable contracts. establishing, and maintaining records of the above actions; and

• • •

Submitting applications for accreditation Project and contract activities Identifying requirements for tenders and contracts

•

Company should be increase the No. of employee.

•

Company should be improve their transportation system ,and supply chain management should be allocated at the right place.

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•

Service providers must allocate resources, including personnel with sufficient knowledge, skills and experience in quality management, and have corporate procedures for developing, implementing and maintaining their Quality Management System, Quality Management Plans, and Inspection and Test Plans, as applicable, and to monitor their effective implementation with contracts. Service providers that purchase or subcontract products and/or services would ensure each customer’s quality requirements are reflected in the applicable purchase or subcontract documents .

•

Planning and conducting its reviews, audits, inspections, witnessing and surveillance of the implementation of the supply chain Management System . controlling nonconforming services/products and undertaking appropriate corrective and preventive actions. claiming for payment for the work with evidence of conformity with requirements

• •

Conclusion Supply chain management in the service industry has taken off in recent years, and many companies are considering it. How a manager handles his company's supply chain will help determine if its product will make a profit in the marketplace. Because there is a lack of knowledge and understanding to assist managers in the service sector, it is crucial that today's managers obtain a full appreciation for what supply chain management is and how it can be implemented successfully. A better appreciation for the supply chain management process can be gained by understanding service industries. A crucial example is the health industry, which is expected to be one of the fastest growing industries in the future. Health care is attempting to implement a supply chain that delivers quality products at minimal cost. Some of the problems that have arisen have to do with the lack of an efficient program to deal primarily with health care facilities and just-in-time management. Benefits, limitations, and the implementation steps of SCM help show where the new health care phenomena are headed. SCM is not a passing fad but rather an evolution in the operations of services. We predict that services entering the SCM gate will save millions of dollars that would otherwise be spent because of a dysfunctional supply chain. Since the SCM concept is fairly new, it is vital that managers do not make a "leap of faith," so to speak, but research the process thoroughly. This should enable them to choose a supply chain that will be most beneficial in obtaining the main objective for any company, which is to make a profit. Vijay pratap singh MBA

references and bibliography – I have taken all the data from the official sites of Rachna electrical and few information from the books, which are given below. www.remsonappliances.com www.operationmanagment.com www.eletronicindustry.com www.indiamart.com http://www.rallison.com/php/home.php

• Reference to a book: KOTHRI, P. (2008), RESEARCH METHODOLOGY, Vijay pratap singh MBA

STAPHEN .(2008), OPREATION MANGEMENT • Reference for an article: Dorothy, Kristen, (2009), “BUSINESS STANDARD Annexure : 1. Training Calendar 2. Training Feedback Form 3. Training Attendance Sheet 4. Project topic proforma

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