an empirical study on supply chain inventory management in the auto component industry

8/13/2019 An Empirical Study on Supply Chain Inventory Management in the Auto Component Industry

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A PROJECT REPORT ON

AN EMPIRICAL STUDY ON SUPPLY CHAIN& INVENTORY MANAGEMENT IN THE

AUTO COMPONENT INDUSTRY

A CASE STUDY OF

Submitted to Sikkim Manipal Univ!"i#$in thepartial fulfillment of the requirement for the awardof the degree of

Ma"#! % '("in"" A)mini"#!a#i%n

SUBMITTED BY

LALIT *UMAR

M'A +T,M- IV Sm.

R%ll N%. /01112223

PLACE 4 AGRA +UTTAR PRADESH-CENTRE CODE 5 61768


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AC*NO9LEDGEMENTAC*NO9LEDGEMENT

While submitting the project report prepared by me on the topic AN

EMPIRICAL STUDY ON SUPPLY CHAIN & INVENTORY MANAGEMENT IN

THE AUTO COMPONENT INDUSTRY IN M/s. Gkn Driveline In!i"#

L$!.%"ri!"'"!. I here acknowledge my humble gratitude & loyal thanks to Mr.

Pr"veen ver("(HOD-upply chain! who ga"e me an opportunity to work in

M/s. Gkn Driveline In!i"# L$!.

I am also grate#ul to Dr$ anjana %ittal under whom I ha"e done my project$

ast but not the least' I am thank#ul to all my #riends who has gi"en me their

"aluable suggestions in preparing the report$


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CERTIFICATE

his is to certi#y that %r$ L"li$ )*("r% R+ll N+. ,-0) a student o# ikkim

%anipal *ni"ersity has completed project work on AN EMPIRICAL STUDY

ON SUPPLY CHAIN & INVENTORY MANAGEMENT IN THE AUTO

COMPONENT INDUSTRY A CASE STUDY O M/s. G)N DRIVELINE

INDIA# LTD.% ARIDA1ADunder my guidance and super"ision during this

year$ +o part o# this work has been submitted #or any degree$

His work and output has been #ound to be satis#actory$

ignature o# ,uide

+ame o# .roject ,uide/ Dr$ anjana %ittal


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DECLARATION

his project report on AN EMPIRICAL STUDY ON SUPPLY CHAIN &

INVENTORY MANAGEMENT IN THE AUTO COMPONENT

INDUSTRY A CASE STUDY OF M:". G*N DRIVELINE +INDIA-

LTD.; FARIDA'AD is submitted by me #or the partial #ul#illment o# the

course to %$0$1$ (2%! I3 em$ #rom Sikki( M"ni2"l Universi$3% A4r"$

his is an original work done by me e4pected the guidance recei"ed which has

been properly acknowledge in the report$

his is not the copy o# any other report or any part o# it hasn5t been submitted

#or the award o# any degree or diploma$

Date /

.lace /

(ignature o# the student!


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CONTENTS

C+n$en$s P"4e

N+.

C5"2$er67 INTRODUCTION 868

6$6 0ackground 7-68

6$9 Objecti"e o# he tudy 6:-6:

C5"2$er697 REVIE: O LITERATURE 9;69

9$6 upply ;hain Decision 96-99

9$9 +eed #or ;% 99-9 ;H1I+ %1+1,?%?+ 9 ;H1I+ %1+1,?%?+ .roblems 98-98

9$A ;% acti"ities 98-=B

9$< In#ormation echnology #or *..> ;H1I+ %1+1,?%?+ =B-=6

9$7 ,oals o# *..> ;H1I+ in#ormation technology =6-=7

9$8 In"entory %anagement =7-=7

C5"2$er 07 RESEARCH INDINGS 0


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this period$ his also led to a tough competiti"e scenario) which saw a lot o#

consolidation) technological collaborations and euity partnerships within the

industry and with leading global players abroad$

oday) many international and local automoti"e players are increasingly

sourcing components #rom Indian automoti"e component manu#acturers$ 1s

the demand #or manu#actured automoti"e components with the tag Emade in

IndiaE increases) the automoti"e companies ha"e to #urther enhance the uality

o# their products and operations as global players reuire uality components

at reasonable prices and at precise time durations$ his has made the

automoti"e component manu#acturers in India to be under se"ere pressure to

meet such onerous demands$ Hence) to meet such demands) today all the

major players in this industry are ha"ing one or the other logistics management

system$


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1AC)GROUND

COMPANY PROILE

,F+ Dri"eline is the largest business within the global engineering group) ,F+

plc$ ,F+ is a leading global supplier to the worldGs automoti"e) o## highway and

aerospace manu#acturers$ ,F+ pro"ides technology-based) highly engineered

products to "irtually all o# the worldGs major manu#acturers o# light "ehicles)

agricultural and construction euipment) aircra#t and aero engines$ 1lmost

@B)BBB people work in ,F+ companies and joint "entures in more than =B

countries$ .roducing systems and components #or small #ront wheel dri"e to themost sophisticated #our wheel dri"e "ehicles) ,F+ Dri"eline has the products to

achie"e the optimum dri"eline solution$ With these products comes technical

e4pertise and an understanding o# all aspects that a##ect "ehicle dynamics and

how these can be optimiCed #or weight and per#ormance impro"ement$


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G)N

Aer+s2"?eAer+s2"?e

Aer+s2"?e Servi?es

A4*s$":es$l"n!

A*$+(+$iveA*$+(+$ive

Driveline

P+!er Me$"ll*r43

A*$+ C+(2+nen$s


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G)N PLC

,F+ plc$ is an international group o# companies with a turno"er o# around

@$= billion pounds$ he group designs) de"elops and manu#actures

automoti"e components as well aerospace and de#ense products$ he

group pro"ides a range o# industrial ser"ices$ ,F+5s operations are located

in more than =B countries around the world and the group employs around

=


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G)N 6 A OCUSSED GLO1AL ENGINEERG)N 6 A OCUSSED GLO1AL ENGINEER

urno"er JK@$A billion

%arket leadership positions

ustainable growth

?4cellent customer relationships

trong technology base

,lobal reach L =


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G)N 6 GLO1AL CUSTOMERS

'M9'M9

Ca#!pilla!Ca#!pilla!Daiml!C

Fia#Fia#

F%!)F%!)

GM:OplGM:Opl

H%n)aH%n)a

MG R%v!MG R%v!

PSAPSA

Rna(l#:Ni""anRna(l#:Ni""an

T%$%#aT%$%#a

V9:A()i G!%(pV9:A()i G!%(p

Ma!(#i S(=(kiMa!(#i S(=(ki

D!ivlinD!ivlin

Ai!>("Ai!>("

'AE S$"#m"'AE S$"#m"

'%in?'%in?

'%m>a!)i!'%m>a!)i!

EADSEADS

GEGE

H%n$@llH%n$@ll

L%k


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G)N INDIA

Date o# ?stablishment / 6st 1ugust 6:89BB= in rupee terms;ompiled by I+,?

Un!ers$"n!in4 S*22l3 C5"in M"n"4e(en$7

upply ;hainis the organiCed mo"ement o# materials and) sometimes) people$

he term was #irst associated with the military but gradually spread to co"er

business acti"ities$ ogistics %anagement is de#ined as a business-planning

#ramework #or the management o# material) ser"ice) in#ormation and capital

#lows$ It includes the increasingly comple4 in#ormation) communication and


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control systems reuired in todayGs business en"ironment$ ogistics

management includes a whole gamut o# processes like planning) procurement)

transportation) maintenance) distribution and replacement o# personnel and

material$

he process o# logistics management di##ers #rom one #irm to another$ In some

#irms) all these acti"ities are placed within a single logistics department' in

others) they are shared among the departments$ he #irm may also go in #or

what is called third-party logistics) which is a contract with an outside party to

per#orm speci#ic logisticsser"ices$

he #ollowing indicati"e list gi"es some o# the #unctions that a #irmGs logisticsmanagement system is supposed to per#orm/

. C*s$+(er Servi?e71ll the acti"ities that are done to keep the e4isting

customers satis#ied come under the gamut o# customer ser"ice$

9. De("n! +re?"s$in47 his process includes "arious statistical

measures that enable the #irm to estimate the demand in the #uture)

which in turn helps in proper demand management$

0. D+?*(en$"$i+n l+7 his process co"ers the mo"ement o# the

paperwork that accompanies the mo"ement o# physical product$

=. In$er2l"n$ M+ve(en$s7 his is only applicable to those #irms where

production process is accomplished in more than one plant) reuiring the

mo"ement o# semi-#inished products #rom one plant to another$

,. Inven$+r3 M"n"4e(en$7 In"entory management reuires a cost

e##ecti"e maintenance o# stocks o# goods and materials$8. Or!er Pr+?essin47 Order processing starts with the receipt o# an order

#rom a customer and ends when the order is ready #or packaging$

-. P"?k"4in47 .ackaging is done mainly to protect the product when it is

being transported #rom the source to the destination$ It can also be used

#or promotional purposes$


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. Pl"n$ "n! :"re5+*se Si$e Sele?$i+n7 his #unction is carried to

determine where the plant and the warehouse are going to be located)

keeping cost-bene#it analysis in mind$

;. Pr+!*?$i+n S?5e!*lin47 his #unctionGs task is to balance demand #or

products with the e4isting plant capacity and a"ailability o# inputs$

. P*r?5"sin47 his is a "ery important #unction in the logistics

management as the uality o# inputs that are purchased determines the

uality o# the #inished product$ 3endor selection is an important sub-

process o# this #unction$

9. Re$*rne! Pr+!*?$s7 here are many categories o# returned products$1 #ew are subjects o# product recalls) meaning that a sa#ety de#ect or

haCard has been disco"ered$$ hese products are remo"ed #rom the

shel"es) and both retailers and consumers attempt to return them to the

manu#acturer$ his is a #orm o# re"erse distribution) with goods mo"ing in

the opposite direction o# their usual #low$

0. S"lv"4e S?r"2 Dis2+s"l7 How a #irm takes care o# its waste material is

co"ered in this #unction$ he #irm might recycle its waste or sell thewaste to "arious processors who specialiCe in recycling it$

=. Tr"@@i? M"n"4e(en$71ll the transport reuirements needed to mo"e a

#irmGs #reight is known as tra##ic management$

,. :"re5+*se "n! Dis$ri'*$i+n Cen$re M"n"4e(en$7 his logistics

acti"ity in"ol"es management o# the locations where the #irmGs

in"entories are stored$


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SURVEY INDING

H+ !+ 3+* ("n"4e 3+*r s*22l3 ?5"inF

;lose partnership with suppliers T;lose partnership with customers TMI supply Te-procurement?DIOutsourcingubcontracting T=..lan strategically

upply ;hain 0enchmarking T3ertical integrationPew suppliers T%any suppliersHolding sa#ety stock T*se o# e4ternal consultants TOther


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How success#ul do you think is your company in managing its supply chain ingeneralS

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an empirical study on supply chain inventory management in the auto component industry

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