Karma Project

8/7/2019 Karma Project

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AProject study report

OnTraining undertaken at

Pyrotech electronics ltd , UDAIPUR

TitledA Study of supply chain management

Submitted in partial fulfilment for the award of degree of

Master of Business Administration

Submitted By- Submitted To-

Karmendra Singh Miss Manila rathod

MBA Part III

2009-11

AISHWARYA INSTITUTE OF MANAGEMENT & IT, UDAIPUR

(Affiliated to Rajasthan Technical University, Kota)

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]REFACE

From a nation's perspective international business allows the nation to survive

and gain a higher standard of living by trading it's resources for what lacks

while moderating the inflation rate and generating employment. From the

company's perspective , many foreign markets offer growth, sales profiles and

risk and diversification , they enable a company to discover new ideas that may

heads to new products and application .

International experiences are not luxuries, they are requisite to understanding

the independence of nation and markets as well as the concepts of various

disciplines.

For this reason international (import) marketing acquires a vital role to play as

international business involves many intricacies of business, which makes

import marketing .

To face these challenges and just to understands and learn the various I have

chosen to work in this field and put the best effort to makes the projects a

success.

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ACKNOWLEDGEMENT

Today in the fast developing country beside the earlier plans. The growth inrecent years has been rapid. The electronic industry has contributed a great

deal in the growth of the country.

It deem to be my proud privilege to express my deep sense of gratitude and

acknowledgement to Mrs. SURBHI SONI, Hr manager of pyortech for her

unceasing interest incessant encouragement, conservative suggestions and

gifted guidance throughout the process of this project.

I am grateful to Miss manila madam course director, Aishwarya Institute Of

Management & It, Udaipur and other lecturers of the department for their kind

help and advice for completing this project work.

We are also thankful to our friends who directly or indirectly help us a lot.

(KAR

MENDRASINGH)

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INDEX

INTRODUCTION

S.No. Topic Name Page No.

1 Introduction2 History, Structure and Corporate Milestones

3 COMPANY POLICIES

4 CONTROL ROOM SOLUTIONS PROVIDER

5 AWARDS AND RECOGNITION

6 SUPPLY CHAIN MANAGEMENT

7 LEVEL OF SUPPLY CHAIN MANAGEMENT

8 Developments in supply chain management

9 Supply chain business process integration

10 Theories of supply chain management

11 Supply Chain Decisions

12 Supply Chain Modeling Approaches

13 NETWORKS DESIGN METHODS

14 ROUGHCUT METHODS

15. LOGISTICS

16 DISTIBUTION INTRODUCTION

17 BUILDING CUSTOMER RELATIONSHIP MANAGEMENT

18 ATTENTION ON CHANGING REQUIREMENT OFCUSTOMERS

19 BIBLIOGRAPHY

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PYROTECH: An Over View

Pyrotech Electronics Pvt. Ltd. unit # 2 a ISO 9001 concern and it was

established on 18th March 1988 in Madre Industrial area, Udaipur with an initial

capital of Rs. 60.85 lakhs. It was promoted by technocrat entrepreneurs Mr.

P.S. Talesra, Mr. N.K. Pandy and Mr. C.P. Talesra who are well known

professionals in electronic instrumentation industry.

The history was made long before 1980. In 1976 to be precise, and that too in

a small house at Udaipur in Rajasthan, where four visionaries put their heads

together and thus Pyrotech was born.

The quantum of success ca be measured from the fact that the company hasregistered an average growth rate of 55% since its inception, the reason behind

the success is strong emphasis on customer satisfaction in all respects.

Pyrotech is a renewed company for control room electronics and sensors. The

company have claimed up the value chain by collaborating with global

companies like -

Synelec (Large Video Screen)Subklew (Mosaic Tile System)

Karus & Naimer (Swithes)

Weigel Meters (Meters) and others.

History, Structure and Corporate Milestones

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1976 Pyrotech international established by four technocrats in Udaipur First

products thermocouple & RTDs.

1980 factory expansion for electronics product-indicators, temperature

controllers.

1984 prototype development of ALCOSY. Separate temperature sensor

division tempsens.

1986 land mark hare as BHEN Bangalore started using ALCOSY technology.

Large orders executed for IL bokaro steel power plant for marshalling panels.

1990 HZL chanderia instrumentation work commenced & completed in

November 1991.

1992 high performance 19racks developed for defence suppliers to army for

Missile launch. National excellence award in CL & RE, R&D ELCINA award.

1993 Major power project executed for PSEB Bhatinda, Panipat, with Swiss

Mosaic Tiles. LSC supplied for NTPC Korba.

1996 Tie up with Siemens AF for Pal series of products Dr.Theding for unit 1&2

Attains the ISO 9001status & Tempsens accredited with honoured with Rajiv

Gandhi national quality award.

1999 Executed orders for submarine program of navy, new concept for IndianMarked of control room design.

2000:- Major projects executed for mega power house NTPC Simbadari,

UPSEB, BESES etc. New design developed in consoles & fecosy panels.

2001:- Tie up with AMS, Germany for oxygen & Zirconia analysis. New offices

at Hyderabad, Trichy, Kota, Hardware. Indigenous technology for active mosaic

Tiles developed for Delhi metro rail corporation.

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2003:- Unit 2 attains ISO 9001:2000 industrial furniture range introduced with

Major approvals from NTPC, BHEL &TISCO.

2005:- Folded construction panel introduced.

2006:- Unit 2 attains ISO 9001:2000 from DNV Netherlands total turnkey room

solution for 1000 MW Jindal super thermal power plant. Area Sq. fit azuila &

vector CNC machine introduced expansion of conveyorised Plan proposed ISO

14000:2004 EMS.

COMPANY POLICIES

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QUALITY POLICY:

Our organization policy is to manufacture defect free panels, control desks,

process control system and industrial enclosures to provide value for money

and customer satisfaction. We shall strive to adopt Zero Defect working

culture, by continually improving quality, Technology and skills.

ENVIRONMENT HEALTH & SAFETY POLICY:

We are committed for conservation of natural resources by efficient utilization

of row material, water, energy and manpower. Keeping healthy and safe

environment in and around our factory premises.

We are committed to sound and sustainable environment management system,

safe and healthy working culture and complying with legal requirement. We are

dedicated for continual improvement and high degree of customer satisfaction.

We aim zero defect quality product and accident free, safe and healthy

environment.

Group Companys structure

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Pyrotech electronics pvt.ltd.

Unit 2 control panels/desks,mosaic & video well

Pyrotech electronics pvt.ltd.

Unit 1 electronic process

control instruments

Pyrotech control India

limited enclosures, control

panels

Tempests instrument India

Pvt. Limited temperature

sensors

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Pyrotech marketing and

project Pvt. Limited project

and system integration


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CONTROL ROOM SOLUTIONS PROVIDER

Total construction 50,000 Sq. ft. and is equipped with CNC press Break, NC

sharing machine and CNC press punch, environment friendly painting both(2

nos.) and two powder coating plant with ovens.

MANPOWER CAPABILITY

Besides the infrastructure facilities we have dedicated workforce with

experience & well-qualified people. Who are always willing to help as per

requirement? Any cooperation aiming to produce dominated world, an

organization can use its manpower as assets and a part of decision-making.

The companies have 200employees. Almost all the divisions in the companyhave technical staffs who directly cater to customers requirements. The entire

marketing, design, quality, Fabrications divisions rely on the expertise of the

expertise of the Engineers doing the work with the quality policy of the

company to do every work for the first time and every time correctly.

Highly educated and experienced non-technical are in the other departments.

The most important aspect of our workforce is that they are always available for

sales service and support for our products.

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SISTER CONCERNS

1. PYROTECH CONTROL INDIA PVT.LTD

2. PYROTECH ELECTRONICS PVT.LTD.UNIT#1

3. TEMPSENS

Pyrotech unit # 2 is the youngest bird of all groups of companies is technology

driven with leading edge capabilities is fields related to control &

instrumentation. Pyrotech unit # 2 commenced its production & commercial

activities in 1998, & soon is a renowned name for control & instrumentation

field.

The products are well accepted and approved by consultants and customers

like-

Engineers India ltd.

BHEL

NTPC

PROJECT & DEVELOPMENT INDIA LTD.

MINISTRY OF DEFENSE

Ministry of defense

Mecon

Larson & Turbo(Mumbai)

Westinghouse,(USA)

Siemens

Howe

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TECHNOLOGY

Pyrotech have two types of technology

1. ALCOSY

2. FECOSY

Main technology is ALCOSY [20/30] which is complete based on aluminum 20

and 30. ALCOSY has unique non-welded modular construction and higher

strength grade. The company has developed technology for hi-tech electronics,

process control instruments and systems and application software for

programmable logic controllers. All products manufactured are in house

developed and includes quite a few import substitution items

MARKET

PEPL has a full fledged marketing establishment at Delhi and Udaipur and

agents in different cities like Bangalore, Kolkata, Mumbai, Bhopal, Baroda and

Ahmadabad.

It has also worked with consultants like-

Mecon

Davy Mc. Kee (uk)

Lurgi (west Germany)

Hotech

NTPC

Birla

Fuller KCP

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PRDUCT RANGE

Pyrotech has built up its market reputation mainly in the following fields:-

Control panel

Process or panel

Electronic panel

Instrument panel

Mosaic mimic panel

Junction Box

Clibration Box

Purge panel

Analyser panel

Pneumic panel

LIE & LIR

Large video screens

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Control room design

Test bench

19Rack Enclosures

Swas panel

Computer consoles & CRT desks

Centralized control desk

Relay panel

Explosion proof & purge panel

Gas analyzer panel

Electrical panel

AWARDS AND RECOGNITION

The company has received the R & D recognition in August, 1993.

The company has been awarded Excellence in electronics from

department of electronics government of India in November 17, 1993.

The company has also awarded a shield and certificates from incometax department for paying second highest income tax in 1996-97.

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The company has been awarded ISO-9001 certificate in 1999.

The company has been awarded ELCINA (llnd prize) for R & D inSeptember94.

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the process of planning implementingand controlling the operatioms of the supply chain as efficiently as possible. supply Chian management bspans all movement and storage of rewmaterials ,work in -process inventory ,and finished goods form point-of oigin to point -of consumption .

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The definition of one American professional association put forward is thatsupply chain management encompasses the planning and managementof all activies in sourcing , procurement , conversion,and logistionmanagement activies Importantly , it also includes coordination andcollaboration with channel partners ,which can be suppliers , intermediaries,third party service providers,and customers.

In essence,supply Chain management integrates supply and demandmanagement within and across companies . More recently, the looselycoupled, self organizing network of businesses that cooperates to provideproduct and service offerings has been the Extended Enterprise .Some expets distinguish supply Chain management and logistics, whileothers consider the terms to be interchangeable

Supply chain management can also refer to Supply Chain managementsoftware which are tools or modules used in executing supply chain

transactioms, managint supplier relationships and controlling associatedbusiness processes.Supply chain event management ( abbreviated as SCEM ) is aconsideration of all possible events and factors that can cause adisruption in a suplly chain . With SCEM possible scenarios can be createdand solutions can be planned.

LEVEL OF SUPPLY CHAIN MANAGEMENT

Strategic

Strategic network optimization, including the number, location and sizeof warehouses, distribution centres and facilities.

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

Product designs coordination, so that new and existing products can beoptimally integrated into the supply chain, load management.

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Information technology infrastructure, to support supply chain operation.

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

Aligning overall organisational strategy with supply strategy.

Tactical

Sourcing contracts and other purchasing decisions

Production decision, including contracting, location, scheduling, andplanning process definition.

Inventory decisions, including quantity, location, and quality ofinventory.

Transportation strategy, including frequency, routes, and contracting.

Benchmarking of all operations against competitors andimplementation of best practices throughout the enterprise.

Milestone payments.

Operational

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

Production scheduling for each manufacturing facility in the supplychain management (minute by minute)

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

Inbound operations, including transportation from suppliers andreceiving inventory.

Production operation, including the consumption of material and flowof finished goods.

Outbound operations, including all fulfilment activities andtransportation to customers.

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

Supply chain management

Organizations increasingly find that they rely on effective supply chains ornetworks, to successfully compete in the global market and networkedeconomy. In Peter Druckers (1998) managements new paradigms, thisconcept of business relationships extends beyond traditional enterpriseboundaries and seeks to organize entire business processes throughout avalue chain of multiple companies.

During the past decades, globalization, outsourcing and informationtechnology have enabled many organizations, such as Dell and Hewlett-

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Packard, to successfully operate solid collaborative supply networks inwhich each specialized business partner focuses on only a few keystrategic activities (Scott 1993). This inter-organisational supply networkcan be acknowledged as a new form of organization. However, with thecomplicated interactions among the players the network structure fitsneither market nor hierarchy categories (Powell,1990). It is not clearwhat kind of performance impacts that different supply network structurescould have on firms and little is known about the coordination conditionsand trade-offs that may exist among the players. From a systems pointview, a complex network structure can be decomposed into individualcomponent firms (Zhang and Dilts, 2004). Traditionally, companies in asupply network concentrate on the inputs and outputs of the process, withlittle concern for the internal management working of other individualplayers. Therefore the choice of an internal management control structureis known to impact local firm performance (Mintzberg, 1979).

In the 21

st

century, there have been a few changes in businessenvironment that have contributed to the development of supply chainnetworks. First, as an outcome of globalisation and the proliferation ofmulti-national companies, joint ventures, strategic alliances and businesspartnerships, there were found to be significant success factors, followingthe earlier Just-In-Time, Learn Management and Aglie Manufacturingpractices. Second, technological changes, particularly the dramatic fall ininformation communication costs, which are a paramount component oftransaction costs have led to changes in coordination among the membersof the supply chain network(Coase, 1998).

Many researchers have recognised these kinds of supply networkstructures as a new organisation form using terms such as Keiretsu,Extended Enterprise, Virtual Corporation, Global production networkand Next Generation Manufacturing System. In general such a structurecan be defined as a group of semi-independent organisations, each withtheir capabilities, which collaborate in ever changing constellations toserve one or more markets in order to achieve some business goalspecific to that collaboration (Akkermans,2001)

Developments in supply chain management

Six major movements can be observed in the evolution of supply chainmanagement studies: creation, integration, and globalization (Lavassaniet. Al 2008), 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 supplychain in management, was of great importance long before in the early

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20th century, especially by the creation of the assembly line. Thecharacteristics of this era of supply chain management include the needfor large scale changes, re-engineering, downsizing driven by the costreduction programmes and widespread attention to the Japanese practiceof management.

2. Integration era

This era of supply chain management studies was highlighted with thedevelopment of electronic data interchange (EDI) systems in the 1960sand developed through the 1990s by the introduction of Enterpriseresource planning (ERP) systems. This era has continued to develop intothe 21st century with the expansion of internet based collaborativesystems. This era of SC evaluation is characterized by both increasingvalue 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 globalsystems of suppliers relations and the expansion of supply chain overnational boundaries and into other continents. Although the use of globalsources in the supply chain of organizations can be traced back to severaldecades ago (e.g. the oil industry) it was not until the late1980s that aconsiderable number of organizations started to integrate global sourcesinto their core business. This era is characterized by the globalization ofsupply chain management in organization with a goal of increasing

competitive advantage, creating more value added, and reducing costthrough global sourcing.

4.Specialization Era- Phase one- Outsourced Manufacturing andDistribution

In the 1990s industries began to focus on core competencies andadopted a specialization model. Companies abandoned verticalintegration, sold off non-core operation and outsourced those functions toother companies. This changed management requirements by extendingthe supply chain well beyond the four walls and distributing management

across specialized supply chain partnerships.

This transaction also refocused the fundamental perspectives of eachrespective organisation. OEMs became brand owners that needed deepvisibility into their supply base. They had to control the entire supply chainfrom above instead of from within. Contract manufactures had to managebills of material with different part numbering schemes from multiple OEMsand support customer request 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,

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distribute, market, sell and service a product. The set of partners maychange according to a given market, region, or channel, resulting in aproliferation of trading partner environments, each with its own uniquecharacteristics and demands.

5. Specialization Era- Phase Two- Supply chain management as aservice

Specialization within the supply chain began in the 1980s with theinception of transportation brokerages , warehouse management and nonasset based carriers and has matured beyond transportation and logisticsinto aspects of supply planning, collaboration, execution and performancemanagement.

At any given moment, market forces could demand changes withinsuppliers, logistics providers, locations ,customers and any number of

these specialised participants within supply chain networks. This variabilityhas significant effect on the supply chain infrastructure, from thefoundation layers of establishing and managing the electroniccommunication between the trading partner to the more-complexrequirement, including the configuration of the processes and work flowsthat are essentials to management of the network itself.

Supply chain specialization enables companies to improve their overallcompetencies in the same way that outsourced manufacturing anddistribution has done; it allows them to focus on their core competenciesand assemble networks of best in class domain specify partner to

contribute to the overall value chain itself-thus increasing overallperformance and efficiency. The ability to quickly obtain and deploy thisdomain specify supply chain expertise without developing and maintainingan entirely unique and complex competency in house is the leadingreason why supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solution debuted in thelate 1990s and has taken root in transportation and collaborationcategories most dominantly. This has progressed from the ApplicationService Provider (ASP) model from approximately 1998 through 2003 tothe 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 (scm 2.0)

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

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evalution of the processes ,methods and tools that manage it in this newera.

Web 2.0 is defined as a trend in the use of the World Wide Web that ismeant to increase creativity, information sharing, and collaboration amongusers. At its core, the common attribute that Web 2.0 brings is it helps usnavigate the vast amount of information available on the web to find whatwe are looking for. It is the notion of a usable pathway.SCM2.0 follows thisnotion into supply chain operations. It is the pathway to SCM results-thecombination of the processes, methodologies, tools and delivery options toguide companies to their results quickly as the complexity and speed ofthe supply chain increase due to the effects of global competition, rapidprice commoditization, surging oil prices, short product life cycles,expanded specialization, near/far and off shoring, and talent scarcity.

Rapidly deliver results with the agility to quickly manage future change for

continuous flexibility, value and success. this is delivered throughcompetency networks composed of best of breed supply chain domainexpertise to understand which elements, both operationally andorganizationally, are the critical few that deliver the results as well as theintimate understanding of how to manage these elements to achievedesired results ,finally the solutions are delivered in a variety of option asno-touch via business process outsourcing ,mid-touch via managedservice and software as a service(SAAS), or high touch in the traditionalsoftware deployment model.

Supply chain business process integration

Successful SCM requires a change from managing individual functions tointegrating activities into key supply chain processes. An examplescenario: the purchasing department places orders as requirementsbecome appropriate. Marketing, responding to customer demand,communicates with several distributors and retailers, and attempts tosatisfy this demand. Shared information between supply chain partnerscan only be fully leveraged through process integration.

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Supply chain business process integration involves collaborative workbetween buyers and suppliers, joint product development, commonsystems and shared information. According to Lambert and Cooper (2000)operating and integrated supply chain requires continuous informationflows, which in turns assist to achieve the best product flows. However, inmany companies, management has reached the conclusion thatoptimizing the product flows cannot be accomplished withoutimplementing a process approach to the business. The key supply chainprocesses stated by Lambert (2004) are:

Customer relationship management

Customer service management

Demand management

Order fulfilment

Manufacturing flow management Supplier relationship management

Product development and commercialization

Returns management

One could suggest other key critical supply business process combiningthese processes stated by Lambert such as:

a.customer service managementb.procurementc.product development and commercializationd.manufacturing flow management/ supporte.physical distributionf. outsourcing/ partnershipsg.performance measurement

a) customer service management process

Customer Relationship Management concerns the relationship betweenthe organisation and its customers. Customer service provides the sourceof customer information. It also provides the customer with real time

information on promising dates and product availability through interfaceswith the companys production and distribution operations. Successfulorganizations use following steps to build customer relationships:

determine mutually satisfying goals between organization andcustomers

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 manufacturingflow management process and development of new products. In firms

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where operations extended globally, sourcing should be managed on aglobal basis. The desired outcome is a win- win relationship, where bothparties benefit, and reduction times in the design cycle and productdevelopment are achieved. Also, the purchasing function develops rapidcommunication systems such as electronic data interchange (EDI) andinternet linkages to transfer possible requirements more rapidly. Activitiesrelated to obtaining products and material from outside suppliers requiresperforming resource planning, supply sourcing, negotiation, orderplacement, inbound transportation, storage, handling and qualityassurance, many of which include the responsibility to coordinate withsuppliers in scheduling, supply continuity, hedging and research into newsources or programmes.

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 cycleshorten, the appropriate products must be developed and successfullylaunched in ever shorter time schedules to remain competitive.According to Lambert and Cooper (2000), managers of the productdevelopment and commercialization process must:

1. coordinate with customer relationship management to identifycustomer- articulated needs;2. select materials and suppliers in conjunction with procurement, and3. Develop production technology in manufacturing flow to manufactureand integrate into the best supply chain flow for the product/ market

combination.

d) Manufacturing flow management process

The manufacturing process is produced and supplies product to thedistribution channels based on past forecasts. Manufacturing processmust be flexible to respond to market changes, and must accommodatemass customization. Orders are processes operating on a just-in-time(JIT) basis in minimum lot sizes. Also, changes in the manufacturing flowprocess lead to shorter cycle times, meaning improved responsivenessand efficiency of demand to customers. Activities related to planning,

scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation and in time phasing ofcomponents, inventory at manufacturing sites and maximum flexibility inthe coordination of geographic and final assemblies postponement ofphysical distribution operations.

e) Physical distribution

This concerns movement of a finished product/ service to customers. Inphysical distribution, the customer is the final destination of a marketingchannel and the availability of a product/service is a vital part of each

channel participants marketing effort. It is also through the physicaldistribution process that the time and space of a customer service become

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an integral part of marketing thus it links a marketing channel with itscustomer (e.g. links manufactures, 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 focuson those activities in the value chain where it has a distinctive advantageand everything else it will outsource. This movement has been particularlyevident in logistics where the provision of transport, warehousing andinventory control is increasingly subcontracted to specialists or logisticspartners. Also, to manage and control this network of partners andsuppliers requires a blend of both central and local involvement. Hence,strategic decisions need to be taken centrally with the monitoring andcontrol 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 andcustomer integration to market share and profitability. By taking advantageof supplier capabilities and emphasizing a long-term supply chainperspective in customer relationships can be both correlated with the firmperformance. As logistics competency becomes a more critical factor increating and maintaining competitive advantage, logistics measurementbecomes increasingly important because the difference between profitable

and unprofitable operations becomes more narrow. A.T. KearneyConsultants (1985) noted that firms engaging in comprehensiveperformance measurement realized improvements in overall productivity.According to experts internal measures are generally collected andanalysed by the firm including

1. Cost2. Customer Service3. Productivity measures4. Asset measurement5. Quality

External performance measurement is examined through customerperception measures and best practice benchmarking and includes: 1)customer perception measurement and 2) best practice benchmarking.

A supply chain is a network of facilities and distribution options thatperforms the functions of procurement of materials, transformation ofthese materials into intermediate and finished products and the distributionof these finished products to customers. Supply chains exist in bothservice and manufacturing organization although the complexity of thechain may vary greatly from industry to industry and firm to firm.

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Below is an example of a very simple supply chain for a single product,where raw material is produced from vendors, transformed into finishedgoods in a single step, and then transported to distribution centers andultimately, customers. Realistic supply chains have multiple end productswith shared components, facilities and capacities. The flow of materials isnot always along an arbores cent network, various modes of transportationmay be considered, and the bill of materials for the end items may be bothdeep and large.

Traditionally, marketing, distribution, planning, manufacturing and thepurchasing organizations along the supply chain operated independently.These organizations have their own objectives and these are oftenconflicting. Marketings objective of high customer service and maximumsales dollars conflict with manufacturing and distribution goals. Manymanufacturing operations are designed to maximize throughput and lowercosts with little consideration for the impact on inventory levels and

distribution capabilities. Purchasing contracts are often negotiated withvery little information beyond historical buying patterns. The result of thesefactors 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 amechanism through which these different functions can be integratedtogether. Supply chain management is a strategy through which such anintegration can be achieved.

Supply chain management is typically viewed to lie between fully verticallyintegrated 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 inits effective management. Cooper and Ellram (1993) compare supplychain management to a well balanced and well practiced relay team. Sucha team is more competitive when each player knows how to be positionedfor the hand-off. The relationships are the strongest between players whodirectly pass the baton, but the entire team needs to make a coordinatedeffort to win the race.

Chain Decisions

We classify the decisions for supply chain management into two broadcategories-- strategic and operational. As the term implies, strategicdecisions are made typically over a longer time horizon. These are closelylinked to the corporate strategy (they sometimes { /it are} the corporatestrategy) and guide supply chain policies from a design perspective. Onthe other hand, operational decisions are short term, and focus onactivities over a day-to-day basis. The effort in these types of decisions is

to effectively and efficiently manage the product flow in the strategicallyplanned 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 thesedecision areas.

Location Decisions

The geographic placement of production facilities, stocking points andsourcing points is the natural first step in creating a supply chain. Thelocation of facilities involves a commitment of resources to a long termplan. Once the size, number, and the location of these are determined soare the possible paths by which the product flows through to the finalcustomer. These decisions are of great significance to a firm since theyrepresent the basic strategy for accessing customer markets and will havea considerable impact on revenue, cost and level of service. These

decisions should be determined by an optimization routine that considersproduction cost, taxes, duties and duty drawback, tariffs, local content,distribution cost, production limitations, etc. Although location decisionsare primarily strategic, they also have implications on an operational level.

Production Decisions

The strategic decisions include what products to produce and which plantsto produce them in, allocation of suppliers to plants, plants to DCs andDCs to customer markets. As before, these decisions have a big impacton the revenues, costs and customer service levels of the firm. These

decisions assume the existence of the facilities, but determine the exactpath(s) through which a product flows to and from these facilities. Anothercritical issue is the capacity of the manufacturing facilitiesand this largelydepends the degree of vertical integration within the firm. Operationaldecisions focus on detailed production scheduling. These decisionsinclude the construction of the master production schedules, schedulingproduction on machines and equipment maintenance. Otherconsiderations include workload balancing and quality control measures ata production facility.

Inventory Decisions

These refer to means by which inventories are managed. Inventories existat every stage of the supply chain as either raw material, semi-finished orfinished goods. They can also be in-process between locations. Theirprimary purpose to buffer against any uncertainty that might exist in thesupply chain. Since holding of inventories can cost anywhere between 20to 40 percent of their value, their efficient management is critical in supplychain operations. It is strategic in the sense that top management setsgoals. However, most researchers have approached the management of

inventory from an operational perspective. These include deploymentstrategies (push versus pull), control policies --- the determination of the

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optimal levels of order quantities and reorder points and setting safetystock levels at each stocking location. These levels are critical, since theyare primary determinants of customer service levels.

Transportation decision

The mode choice aspects of these decisions are the more strategic ones.These are closely linked to the inventory decisions, since the best choiceof mode is often found by trading off the cost of using the particular modeof 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 muchcheaper, but they necessitate holding relatively large amounts of inventoryto buffer against the inherent uncertainty associated with them. Thereforecustomer service levels and geographic location play vital roles in suchdecisions. Since transportation is more then 30 percent of the logistics

costs, operating efficiently makes good economic sense. Shipment sizes(consolidated bulk shipment versus lot- for- lot), routing and scheduling ofequipment are key in effective management of the firms transportstrategy.

NETWORKS DESIGN METHODS

As the very name suggests, these methods determine the location ofproduction ,stocking,and sourcing facilities, paths theproducts takethrough them. Such methods tend to be large scale and used generally atthe inception of the supply chain.the earlist work in this area ,although thetermsupply chain was not in vogue, was by Geoffrin and Graves[1974].They introducea multycommodity logistics networks design model foroptimizing annualized finished product flows from plants to the DCs to the

final customers.Geoffrin and Powers [1993]later give a review of theevolution of distribution strategies over the past twenty years, describing

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how the descendants of the above model can accommodate moreechelons and cross commodity detail.

Breitman and Lucas [1987] attempt to provide a framework for acomprehensive model of a production- distribution system,PLANETS,thatis used to decide what products to produce,where and how to produceit,which market to pursue and what resources to use. Parts of thisambitious project were successfully implemented at General Motors.

Cohen and Lee[1985] develop a conceptual frameworks for manufacturingstrategies analysis ,wher they describe a series of stochastic sub-models,that considers annulized prodect flows from raw material vendorsvia intermediate plants and distribution echelons to the finalcustomers.they use heuristic methods to link and optimized these sub-models.

They later give an integrated and readable exposition of theie models andmethods in Cohen and Lee[1998].

Cohen and Lee[1998] present a normative model for resourcedenelopment in a global manufacturing and distribution network.globalafter-tax profit (profit-local taxes)is maximized through the desin of facilitynetwork and control or material flows within the network.the cost structureconsist of variable and fix cost for material and procurement,production,distribution and transportation. They validate the model by applying it toanalyze the global manufacturing strategies of a personal computermanufacturer.

Finally, Arntzen.Brown,Harrison, and Trafton[1995] provide the mostcomprehensive deterministic model for supply chain management. Theobjective function minimizes a combination of costs and time elements.

Examples of cost elements include purchasing, manufacturing,pipelineinventory, transportation costs between various sites,duties, andtaxes.time elements include manufacturing lead times and transittimes.unique to this model was the explicit consideration of duty and theirrecovery as the product is model at the Digital Equipment Corporation hasproduced spectacular results saving in the order of $100 million dollars.

Clearly,these network-design based methods add value to thhe firm innthat they lay down the manufacturing and distribution strategies far into thefuture. it is imperative that firms at one time or another make suchintegrated decisions,encompassing production,location,inventory,andtransportation,and such models are therefore indispensable. Although theabove review shows considerable potential for these models as strategicdeterminants in the future, they are not without their shortcomings. Theirvery nature forces these problems to be of a very large scale. They areoften difficult to solve to optimality. Furthermore ,most of the models in thiscategory are largerly deterministic and static in nature.additionally, those

that consider stochastic elements are very restrictive in nature. In sum,

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there does not seem to yet be a comprehensive model that isrepresentative of the true nature of material flows in the supply chain.

LOGISTICS

Logistics is the management of the flow of goods, information and otherresources, including energy and people, between the point of origin andthe point of consumption in order to meet the requirements of consumers (frequently, originally, military organizations).logistics involves theintegration of information ,transportation ,inventory, warehousing,material-handling, and packaging.

ORIGINS AND DEFINITIONS

The term logisticoriginates from the ancient GREEK(logos-

ratio,word, calculation, reason,speech,oration).

Logistics is considered to have originated in the militarys need to supplythemselves with arms, ammunition and rations as they moved from theirbase to a forward position. In ancient Greek, Roman and Byzantineempires ,there were military officers with the title Logistikas who wereresponsible for financial and supply distribution matters.

The Oxford English dictionary defines logistic as: the branch of militaryscience having to do with procuring, maintaining and transporting material,personnel and facilities. Another dictionary definition is: the time related

positioning of resources. As such is commonly seen as a branch ofengineering which creates people system rather than machinesystem

Logistician is the profession in the logistics and transport sectors,including sea, air, land and rail modes. Professional qualifications for thelogisticians can carry post-nominal letters. Common examples includeFCILT/CMILT/MILT (the chartered institute of logistics and transport)(CILT), EJLog/ESLog/EMLog (by European Logistics Association) (ELA),PLog (by Canadian Professional Logistics Institute), CML/CPL (by SOLE-

The International Society of Logistics), jrLog/Log/SrLog (by ChinaFederation of Logistics and Purchasing) (CFLP), FHKLA/MHKLA ( byHong Kong Logistics Association) (HKLA), PLS/CTL/DLP (by AmericanSociety of Transportation and Logistics) (AST&L). However, someuniversities and academic institutions do help in producing logisticians, byoffering academic degree programmes at both undergraduate andpostgraduate levels, too.

MILITARY LOGISTICSin military logistics, logistics officers manage how and when to moveresources to the places they are needed. In military science, maintaining

ones supply lines while disturbing those of the enemy is a crucial,sciencean armed force without resources and transportation is defenceless.

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LOGISTIC MANAGEMENT

Logistic management is that part of the supply chain which plans,implements and controls the efficient, effective forward and reserveflow and storage of goods, services and related information between thepoint ofThe issue is not the transportation itself, but to streamline and control theflow through the value adding process and eliminate non-value addingones. Production logistic can be applied in existing as well as new plants.Manufacturing in an existing plant is a constantly changing process.Machines are exchanged and new one added, which gives the opportunityto improve the production logistic system accordingly. Production logistics

provides the means to achieve customer response and capital efficiency.

Production logistic is getting more and more important with the decreasingbatch sizes.in many industries(e.g. mobile phone) batch size one is shoirtterm aim.this way even a single customer demand can be fulfilled in anefficient way.track and tracing, which is an essential part of productionlogistics-due to product safety and product reliability issue-is also gainingimportance especially in the automotive and the medical industry.

SPACE LOGISTICS

Logistics and Supply Chain in Space explorationSpace Logistics the science of planning and carrying out the movement ofhumans and material to, from and within space combined with the ability tomaintain human and within space combined with the ability to maintain humanand robotics operations within space. In its most comprehensive sense, spacelogistics address the aspects of space operations both on the earth and in thatdeal with:

1. Design and development, acquisition, storage, movement, distribution,

maintainance, evacuation and dispotion of space amterial.

2. Movement, evacuation and hospitalization of people in space.

3. Acquition or construction, maintenance,operation and dispotion of facility

on the earth and in space to support human and robotics space

operations.

4. Acquition or furnishing of service to support human and robotics space

operations.

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DISTIBUTION INTRODUCTION

Distribution (or place) is the fourth traditional element of the marketing

mix. The other three are product, price and promotion.

THE NATURE OF DISTRIBUTION CHANNELS

Most business use third Parties or intermidiaries to bring their products

to market.they try to forge a distribution channel which can be defined

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All the above functions need to be undertaken in any market. The question is-who performs them and how many levels there need to be in the distributionchannel in order to make it cost effective.

Numbers of Distribution Channel levels

Each layer of marketing intermediaries that perform some work in bringing theproduct to its final buyer is a channel level. The figure below shows someexample of channel levels for marketing channels:

Examples of Customer Marketing Channels

In the figure above, channel 1 is called a direct-marketing channel, since ithas no intermediary levels. In this case the manufacture sells directly tocustomers. An example of a direct marketing channel would be a factory outlet

store. Many holiday companies also market direct to consumers, bypassing atraditional retail intermediary- the travel agent.

The remaining channels are indirect marketing channels

CHANNEL 2 CONTAINS ONE INTERMEDIARY . IN CONSUMER MARKET,THIS IS TYPICALLY A RETAILER.THE CONSUMER ELECTRICAL GOODSMARKET IN THE UK IS TYPICAL OF THIS ARRANGEMENT wherebyproducers such as sony, Panasonic, canon etc. sell their goods directly to largeretailers such as comet, Dixons and currys which then sell the goods to thefinal consumers.

Channel 3 contains two intermediary levels-a wholesaler and a retailer. Awholesaler typically buys and stores large quantities of several producers

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Manufacturer

Manufacturer

Manufacturer

Manufacturer Wholesaler Retailer Customer

Customer

Customer

Customer

Retailer

Retailer

Wholesaler

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gooda then breaks into the bulk deliveries to supply retailers with smallerquantities.for small retailers with limited order quantities , the use ofwholesalers makes economic sense. This arrangement tends to work bestwhere the retail channel is fragmented-i.e. not dominated by a small number oflarge , powerfull retailers who have an incentive to cut out the wholesaler. Agood example of this channel arrangement in the uk is the distribution of drugs.

BUILDING CUSTOMER RELATIONSHIP MANAGEMENT

Input for customer acquisitionAcquisition is a vital stage in building customer relationship. An organization islikely to focus its attention on the following as its major sources for providinginput for acquisition.

1. The suspects: the suspects represents the segment of the market whohave the potential to become prospective customers.

2. The enquires: enquiries whether they areintentional or causal provides

for a focused approach in the process of acquisition.

3. The lapsed customers: the lapsed customers should not be neglected.

Thet can be booked as new customers if the reasons for lapsed are

rectified suitably.

4. The former customers:

5. The competitors customers: customers , who always prefer more value

for for money every time, are inclined to opt for alternative. In this

context, the cometing organization can acquire the competitors

customers if the customers perceive that they would be rewarded with

more value for money.

6. The competitors lapsed customers

7. The competitors enquiries.

8. The compititors former customers.

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9. The referrals:referral is likely that fresh customers will rely heavily on

referrals rather the organization own efforts.

10.The existing customers: existing buyers may also be targeted for

acquisition in the event of the organization expanding its product line.

10.1 people: people within the organization have the basic role indeveloping and maintaining relationship with customers. Everyone in theorganization must realize the fact that their work is towards satisfyingcustomers. Everyone from the lowest to the highest must integrate theiractivities towards one of the main objectives of the organization i.e.customer satisfaction.

10.2 processes: process involves a logical sequence of activities right fromthe need identification of potential customers to need fulfilment. Needfulfilment requires manufacture of products with desired attributes.

10.3. Product: the product offered must constantly provide value addition.

10.4. organization: an organization should be aware of the technologyadvancement and provide quality services in tune with the customersexpectations. The responsive and learning nature of the organization mustbuild confidence in the mind of the customer mind that will go a long way inbuilding the customer relationship.

10.5 Setting satisfactory service standard: a customer not only expectsquality products but also quality services. Organization is expected to

render services in all three phases viz. pre sales and after sales.

10.6. concentration on competitors: an organization must focus constantattention on the competitors performance, their strategy and style ofoperation and compare the same with its own performance . customersalways make this comparison and decide their future purchase pattern.

10.7. Customer analysis: customer must be periodically analysed fromseveral perspective such as who constitute the customer inventory, level ofcustomer retention, what makes them buy, what their level of satisfaction iswhere they are placed in the loyalty ladder and what makes them disloyal.

10.8. Cost analysis: an organization must focus attention on the cost of theproduct or services.there must be sincere attempts towards cost reductionwithout compromising on quality.

10.9. concentration on the paying ability of customers:before fixing price,the paying ability of the potential customer must also be viewed. To someextent prices are to be adjusted in tune with the fluctuations in the payingability of potential customers.

10.10. knowledge on purchase behavior pattern: organization should have athorough knowledge of the behavior pattern of their customers. The

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influencing factors of the purchaser decision process and the ultimateoutcome are to be analyzed in depth.

10.11. different in prices and quality standards:an organization must.offerservices or brands of different varieties with price variations. To meet aparticular need, three or four brands of varied quality and at differing pricelevel must be available so that, the customer depending on his financialposition may prefer at least one of the varieties available.this prevents thecustomer from switching over to other brands.

10.12. focus on reducing dissatisfaction: the causes foe dissastisfaction areto be identified and have to be attended well.if a complaint is well attended,then the dissatisfied customer becomes more loyal to the organization andthereby , the relationship would continue to exist.

Research methodology

Research in common parlance refers to a search for knowledge .it is anoriginal to the contribution to the exiting stock of knowledge , making for itsadvancement . it is pursuit of truth with the help or study , observationcomparison & equipment.

Objective:

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1. To understand the importance of logistics and supply chain management inorganized retail markets.

2. To study on impact of logistics and supply chain management on organizedretail market.

Research design

A research design is a purely & simplythe framework or plan for a study thatguides the collection and analysis of data .it is blueprint that followed incompleting the study a research design is nothing more than the framework forthe study so that

1. The study will be relevant to the problem.

2. The study will employ economical procedures.

Data collection

After defining the research problem &determining specific information requiredsolving the problem, the researcher s task is to look for the type & source ofdata , & which may yield the desired results ,generally two types of data areavailable to the researcher.

Secondary data

Secondary data includes those data which are collected for some earlierresearch work & are applicable or usable in the study researcher has presentltundertaken.In my project analysis I have used secondary type of data.

Facts & Findings:-

Supply Chain Management Problems

Supply chain management must address the following problems:

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LIMITATIONS: are constraints on the part of the organization and also

part of the customers.

OPTION: the parameters related to the alternatives available to the

organization as well as to the customers concerned.

VALUE: are convinced standards accepted both by the organizations

and the customers.

Behaviours the line of action by organizations and customers.

BIBLIOGRAPHY

WEB SITES

WWW.PYROTECHINDIA.COM

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http://www.pyrotechindia.com/http://www.pyrotechindia.com/


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WWW.GOOGLE.COM

www.indiabizclub.com

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http://www.google.com/http://www.google.com/


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Karma Project

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