Welcome to Major project presentation

on

“SUPPLY CHAIN MANAGEMENT”

INTRODUCTION

Project statement

“To study the supply chain management practiced

by small scale spinning industry and identifying key

impacting factors of their SCM system.”

INTRODUCTION

Project objectives

1. To study the existing SCM practice.

2. To identify the key impacting factors in their SCM.

3. To investigate the relative strength of those factors

4. To give a SWOT analysis of their SCM.

5. To give guidelines to practitioners to redesign their

strategy.

INTRODUCTION

Theoretical and methodological framework

Initial work

1. Questionnaire

design

3. Pilot study

4. Surveying

Information collected

1. Basic profile

2. SCM activities

3. Focusing factors

Discussion

and conclusion

LITERATURE REVIEW

Basic supply chain concept

LITERATURE REVIEW

SCM structure

Ult. supplier Supplier Manufacturer Customer Ult. customer

Service provider 1. IT

2. Bank

3. Market

Analyst

4. Product

design

5. logistic

Literature review

Actors in supply chain management:

Field of acting in supply chain management:

Suppliers

Manufacturers

Customers

Service provider

Logistic

Information sharing

Inventory

Manufacturing

Sourcing

LITERATURE REVIEW

Scholar’s work:

McMullan (1996) reported on a survey carried out to

assess the Supply Chain Management practices in Asia

Pacific. He found that many firms will be required to

change their organizational structures, relationships with

supply chain members and performance measurement

systems.

Quayle (2003) conducted a survey on SCM practices in UK industrial

SMEs. He found that there was a lack of effective adaptation from

traditional adversarial relationships to the modern collaborative “e” supply

chains. He again identified the issues that organizations need to improve

the performance of their supply chain.

DR Ratnajeewa and Lokugamage ( 2015) conducted a survey to

identify Factors Affecting Supply Chain Management Effectiveness Sri

Lankan textile industry. According to their analysis five factors strongly

affect to the effectiveness of supply chain management of Srilankan Textile

industry. They are planning, quality, sourcing, communication and

procurement. Organizations are suggested to use planning tools and

communication tools to improve sharing of information among supply chain

partners which helps increase the transparency and planning tools such as

MRP, MRPII, ERP, VMI, and DRP to improve the planning process.

LITERATURE REVIEW

Research gap:

Research in “Supply Chain Management”

on

Textile industrySmall and medium scale industries

Textile cluster-OverallSCM study on Specific cluster SCM research on specific

entities in a cluster

Not Yet………..

Why? Now what?

Lets know about

Panipat!!!

Munir

So, Now lets do some work? I mean

field work?

Welcome to

Panipat

Ok bhai!!….me also

coming…..

Overview of textile industry

Textile industry in Panipat

1947 - 2016

Overview of Textile industry

More than 50000 handlooms (pit looms & Frame Looms) are working

in Panipat under the owner ship of about 4200 different units.

The total exports from this Industry are estimated to be more than

1200 Cores

There are about 1500 units having 25000 ordinary power looms with /

without Jacquard attachments and 60 units having 1100 Shuttle less

looms.

Handloom industry in Panipat

Powerloom industry in Panipat

Overview of Textile industry

About 400 small and medium units are situated in and around

Panipat Town giving employment to about 60000 persons.

The total Turnover of this Industry is estimated to be more than 150

Crores.

There are about 400 units in Panipat and this Industry is providing

an employment to about 25000 persons .

Contributing a turnover of about 250 Crores to the Panipat Textile

Industry.

Carpet industry in Panipat

Woolen blanket industry

Overview of textile Industry

Cotton wet processing industry has about 350 dye

houses, 75 printing units catering its services to the

Panipat textile Industry.

Open end spinning-----------(aprox.45)

Shoddy yarn industry….....(300 aprox.)

Ring spun…………………...( 1)

Fancy yarn…………………..( 2)

Cotton processing Industry

Spinning Industry

No. of units

Overview of textile Industry

Raw material used: Waste cottons, Woolen rags, PET, Garment

industry cuttings.

Count range: 4-30 Nm-Shoddy yarn. 2-20 Ne for Open end yarn.

Customers: Mostly local agent. They hardly have direct customer

Labors: 15-300

Yearly turnover: 1 cr. to 30 cr.

Locations: Shimla moulana road, Old industrial estate, Passina

Kalan road, Swarn mall road, samalkha, Kabri road, Sugar mills road,

Sector 29, Sector 25. Mostly industries are located.

Overall profile of spinning industry in

Panipat

Overview of textile Industry

Market leaders: AKHSAY SPINNING MILLS

ANIL INTERNATIONAL

CHIRAG SPINNING MILL

GARG COTEX

HRS FIBERS LTD

NARANG WOOLEN MILLS

NEELKANTH FIBERS LTD

PALIWAL FIBER LTD

JAY DURGA TEXTILE LTD

VIKAS SPINNING MILL

RAJIV WOOLEN MILLS LTD

Overview of spinning industry in Panipat

Spinning industry in Panipat

Flow of material & Information

Worn

clothes

Cotton

waste

Garment

cuttings

PET

Local market

International

market

Manufacturers

Raw material inventory

Shoddy : 1-2 months, Open end:

2-7 days

Open end &

Shoddy industry

Production

Finished goodsCarpet

industry

Handloom

Powerloom

Knitting

Blanket

1-40

tons/days

Dealers

Customers

30-45

days

JIT-15

days

Project work

Selection of Tools for Data Collection :

Pilot Study: Finalizing set of questions

Sampling and data collection:

After 15-20 survey work, we have found the practice is almost

similar, so finally 50 industries has been covered to judgment.

Paper work & Field Work

Structured

Interview

Initial questions-95

After pilot study- 25

GM-AKHSAY SPINNING

Project work

List of question: Total 25 questions were asked to identify 25 factors that relates

their supply chain management.

Inventory planning.

Supply lead time.

Production quality.

Production planning.

Manufacturing flexibility.

New product introduction.

Supply lead time.

Delivery lead time.

Extended supply chain.

Strategic purchasing.

Employee training.

Third party logistic.

Marketing plan.

How much importance “Product quality”

carries for your supply chain management?

5-Very Important 4-important

3-somewhat

Important

2-Less important

1-

N

O

T

I

M

P

T

Project work

List of questions:

IT/Communication

E-commerce

On time financial flow

Cost competitiveness

External infrastructure

Product cycle time

Skilled labor

Customer service

Capacity utilization

Manufacturing cost

reduction

Research & development

Machine Up-gradation

Government regulations

How important it is to give maximum

try to reduce product cycle time?

Data analysis

KMO TestBerlet's test

PCA

Descriptive

statistics

SPSS

Data analysis

Raw data obtained about factor has been categorized in

followings:

Production quality 4.62

Production planning 4.37

Manufacturing flexibility 4.20

Inventory planning 4.54

Supply lead time 4.54

Machine up gradation 4.33

Very

significant

Product cycle time 3.7

Capacity utilization 3.58

Manufacturing cost reduction 3.75

Significant

Data analysis

Analyzed data- Categorized:

Delivery lead time 2.45

Employee training 2.25

Third party logistic 2.75

On time financial flow 2.29

Price issue/Cost competitiveness 2.33

Skilled labour 2.62

Government regulations 2.12

New product introduction 1.75

Extended supply chain 1.29

Strategic purchasing 1.875

Marketing plan 1.91

IT/Communication 1.375

E-commerce 1.375

External infrastructure 1.33

Customer service 1.375

Research & development 1.29

Less

Significant

Not

Significant

Discussion

• Marketing

• ESCM

• E- commerce

• R&D , IT etc

• Delivery time

• 3PL

• Labor issues

• Pricing

• Govt. regulation

• Product cycle time

• Capacity utilization

• Manufacturing cost reduction

• Supply lead time

• Inventory

• Production planning

• Product quality

Very Important

Important

Less important

Not important

Discussion

• SWOT analysis of SCM

Conclusion & Recommendations

Business strategy Mind-setVS

E-Commerce

New product introduction

Cluster portal

Product promotion

Technological up gradation

Building bilateral

Negotiation with customers

Further study scope

SCM study on Handloom Industry.

SCM study on Carpet Industry.

Overall SCM study in entire Industry.

SCM performance Judgment.

Study on responsiveness vs. Efficiency practice