supply chain final project orient
TRANSCRIPT
8/13/2019 Supply Chain Final Project Orient
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“In the name of allah the most benefIcent
the most mercIful”
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BEACHLOR of BUSINESS ADMINSTRATOR
Prof Saroop Ahmad
MUHAMMAD TARIQ 11344
M.TARIQ 11344Haroon Sadiq 11349
Adiba Jabeen 11544
Usman Sadiq 11360
Umer Farooq 11317
BBA 7) A
Submitted To:
Submitted By:
Group Leader:
Program :
Class:
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Contents
Acknowledgement and dedication ...................................................................... iv Acknowledgement:- .............................. iv Dedication:- ....................................... iv Executive Summary .............................................................................................. v Introduction of Supply chain ............................................................................... 6
1.1. Company Profile .............................. 7 1.2. OUR VISION ................................ 7
1.4 Commitment ...................................................................................................... 7 1.5 Universal Standards ........................................................................................ 8 1.6 Quality Control ..................................................................................................... 8 1.7 Innovation ............................................................................................................. 8 1.8 Our Team .............................................................................................................. 8 1.9 Customer Care ...................................................................................................... 8 1.10 Life Styles ........................................................................................................... 9 1.11 Objectives ........................................................................................................... 9 1.12 Achievements ...................................................................................................... 9 1.13 Corporate Social responsibility ........................................................................... 9 1.14 Company's Future ............................................................................................. 10 Objective of the Report:- .................................................................................... 11 Supply Chain Model:-......................................................................................... 12 The Interview:- .................................................................................................... 14 Questions:- ........................................................................................................... 14 The Manager Answer’s ...................................................................................... 15 Findings:- ............................................................................................................. 18 Recommendations:- ............................................................................................ 18 Action Plan: 1 Price Forecast............................................................................. 19 .Action Plan: 2 Developing Supply Chain Strategy ......................................... 20 Action Plan: 3 Keep Communicating with Your Partners ............................. 21 Action Plan: 4 Avoiding Potential Pitfalls ........................................................ 21 Action Plan: 5 Implementation Of supply Chain ............................................ 21 Conclusion:- ......................................................................................................... 23 Learning out coming:- ........................................................................................ 23
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Acknowledgement and dedication
Acknowledgement:-
First of all we are thankful to one and only the Almighty Allah and his prophet
Mohammed (PBUH) for always guiding us in the thick and thin and giving strengths and
courage to complete this project, without them nothing would have been possible. Our
special thanks to our teacher Saroop Shab who not only provide us Opportunity
to do this assignment but also paid a Fair attention to do it. Then we would like
to thank our parents whose prayers and support have always been influential in our lives.
Finally we would like to thank all the people who directly or indirectly helped us out in
this, and a thank you goes to the organizations whose data we used in this project as well.
Dedication:-To Almighty Allah and his prophet Mohammed (PBUH), and to Our loving parents who
gave our life to face the world and to our dearest sisters who gave us a lot and always
there for use whenever we need them we also dedicate to all our teachers specially Prof.
Saroop Shab to teach us and help us in every knowledge activity that we were done.
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Executive Summary
Orient Group of Companies has been on the forefront of design and development, by
coming up with new products and increasing its presence in all its featured markets.
Established in Lahore in1957, today the Orient Group of Companies is one of the largest
consumer goods companies of Pakistan.
Orients products have proven themselves in functional performance parameters set by
international industry experts. With the vision to become leaders of the industry, Orient
strives to make each of its products, with careful R&D and intensive innovation. Orient
aims to give its customers new and original products each year, which can be valued
beyond the ordinary in every household
The person to whom we interviewed was manager administration and also production
manager named Homaeer Waheed. During the interview we asked different questions for
the manager according to our book material and some questions were asked during the
conversation. The interview was based on the topic of production. Mainly we asked
questions for productivity, quality, competitiveness, strategy, forecasting and challenges.
Our objective of the interview was to explore each and everything regarding supply chain
but mainly our focus was to know that;
What does an operations manager do?
How he manages the quality?
How he manages the inventory?
What strategies does he adopt?
What reports does he prepare?
These were the mainly objectives of our project. We tried our best to complete these
objectives and we succeeded in this but unfortunately the manager was not as cooperative
as he didn’t give the answers with full detail. The manager was giving us answers in just
one line due to which we feel that he was trying to hide the information regarding the
supply chain. But we somehow succeeded in getting out the main theme of his answers.
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Introduction of Supply chain
The sequence of organizations their facilities, functions, and activities that are involved in
producing and delivering a product or service. Sometimes referred to as value chains.
In today’s world of globalization many apparel manufacturers are building strong supply
chains to gain advantage over their competitors by offering the best value to their
customers. The supply chain management has become very critical to manage risk,
dynamism, and complexities of global sourcing. A totally integrated supply chain is
required for the company to get gain the maximum benefits. The objectives of the supply
chain and the performance measurements need to be understood in order to build themost effective supply chain. Performance measurements provide an approach to identify
the success and potential of supply management strategies.
One major aspect of the supply chain management is to select the right sources of supply
in the global business environment that can support corporate strategy. Contrary to the
conventional adversarial relationships, effective supply chain management in the new
competition suggests seeking close relationships in the long term with less number of
partners.
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1.1. Company Profile
Orient Group of Companies has been on the forefront of design and
development, by coming up with new products and increasing its
Presence in all its featured markets. Established in Lahore in1957,
today the Orient Group of Companies is one of the largest
consumer goods companies of Pakistan.
Orients products have proven themselves in functional performance
parameters set by international industry experts. With the vision to
become leaders of the industry, Orient strives to make each of its
products, with careful R&D and intensive innovation. Orient aimsto give its customers new and original products each year, which
can be valued beyond the ordinary in every household.
1.2. OUR VISION
“To be the leading provider of Consumer Electronics goods in Pakistan and
deliver the best to the nation and our country”
1.4 Commitment
At Orient Group of Companies we are driven first and foremost by our
customers. The talent, energy and determination of each and every
employee enable us to deliver the best to our customers and play a role in
boosting the country.
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1.5 Universal Standards
Our products are designed according to the universal standards so that our
customers can enjoy the best of their experiences with them.
1.6 Quality Control
Our stringent quality parameters and rigorous testing and re-testing allows
for 100% confirmation of standards. From our services to our workforce,
we are employed to ensure the best quality on offer.
1.7 Innovation
Orient Group of Companies is built up of a dedicated workforce
functioning as a team. We are working together on a mission to provide
our very best to the customers.
1.8 Our Team
Our Vision is to be the leading provider of Consumer Electronics goods in
Pakistan and deliver the best to the nation and our country.
1.9 Customer Care
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We value our customers and are devoted to deliver to them in a timely and professional
manner. Our dedicated team deals each query with the utmost efficiency in order to gain
customer satisfaction
1.10 Life Styles
Our exquisite range of appliances is designed to bring vibrant changes in your
lifestyle. Our attractive products certainly add more meaning to your life.
1.11 Objectives
Our target is to become Pakistan's top manufacturers in electronics and homeappliances, photographic and lighting industries. We are evolving ourselves toward
upgrading our products and services to serve our customers the best.
1.12 Achievements
Orient Group of Companies has been awarded with the Best Achievement
Award by Lahore Chamber of Commerce & Industry in the year 2005. It is
recognized as Pakistan's one of the most successful manufacturers and
distributors of electronic goods.
1.13 Corporate Social responsibility
Our Vision is to be the leading provider of Consumer Electronics goods in
Pakistan and deliver the best to the nation and our country.
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1.14 Company's Future
Our Vision is our dream, soon to be fulfilled. Orient Group of Companies is progressing towards bringing world class electronic products to its customers
and contributing to our nation.
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Objective of the Report:-
The Broad Objective of this report is:
1. To identify the factors related to supply chain effectiveness
2. To know about role of merchandiser in an electronic manufacturing company
3. To provide some recommendations on the basis of findings
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Supply Chain Model:-
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The Interview:-We conduct a semi structured interview with the manager which was about two hours.
In the interview we asked different questions related to supply chain and production
production. Most of the questions were structured but few were asked during the
conversation as they clicked the mind. We weren’t able to ask each and every question as
he was covering every related thing in one answer but we somehow fulfill our need.
Questions:-
We asked him different type of questions related to the supply chain and production
department. Below is the list of the questions that we asked him;
As has been Supply chain manager what tasks do you perform?
How do you manage the workload?
Which part in production department you give more attention?
How do you manage the inventory?
What steps do you take to smooth the inventory process?
What minimum quantity of raw material do you keep?
What is the ratio of wastage of raw material during manufacturing?
Do you take any steps to cut the wastage of raw material?
Do you make strategies for best results in the future?
How do you evaluate the work of the employees?
What steps do you take to improve the efficiency of the employees?
Is any training offered to the employees?
Is your company is a quality conscious company?
How you manage the quality of the products?
How you assure your customer with best quality?
Have you faced any major conflict during the manufacturing process?
What strategy do you adopt to solve the problems?
How much there is an influence of other departments to production supply
chain?
What reports do you make?
Do you forecast the supply chain process?
Who are your big competitors in the market?
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On which basis you’re company compete with competitors?
These were the structured questions which we asked the production manager.
There are a few more questions which were not structured and were asked as the
click the mind so their answers are attached with the structured answers.
The Manager Answer’s
He said that he has to control and look everything in the supply chain
department. He was appointed eight years ago and now he controls almost
the whole supply chain department. He said that there are many different
tasks which he has to perform every day like he have to check the supply
chain process and production whether they are running well or not, have to
maintain the required labor for the supply chain, have to ensure the
availability of raw material, have to order that what and how much have to
produce and have to send the consignment etc.
He said that there are very less chances of the heavy workload of supply
chain and production department as everything works as per the routine
work but sometime when any order got out of order then we arrange extra
shifts of labor on other same order but doesn’t let the consignment.
Actually I concentrate on every part of the supply chain department as it is
my duty to keep it in running phase but there are two main parts one is rawmaterial and the other is labor. Without these the production cannot be
sustain so I tried hard to keep these two parts running.
Inventory is managed as per our sales. We give preference to those orders
which are manufactured on the regular basis. For these kinds of orders the
inventory is managed as per our scheduled frame.
As I said earlier the inventory process doesn’t get interrupted as
everything is according to the scheduled frame.
Actually our main raw material is electronic parts which is the basic
ingredient in our products therefore we have to keep the raw material
stock for up to three months whose quantity does vary as per our current
sales. We have a dying unit where our raw material is getting its final
shape for the product making and it is the responsibility of the raw
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material department that they sustain the requirement of the production
department.
Wastage of raw material is very minor in our process as we adopt up to
assembling processes.
We adopt up to Assembling manufacturing processes due to which we
little the wastage of material.
As I said earlier my company is a quality conscious company so we make
up to date strategies with which we try to meet the customer demand in
effective and efficient way.
We have certain criteria for employee’s performance evaluation like
through the quality of the electronic luggage we can evaluate the
performance. We have cameras installed in the labor area where we keep
an eye on every employee.
We believe in facilitating our men therefore we provide best and suitable
working environment to our employees so they can perform well.
Actually lower class labor needs only one time training like when the new
machine arrives at the factory but we provide continuous training in the
middle and upper class labor until complete knowledge. Other quarterly
trainings are offered to the employees to keep them up to date.
Of course, quality is the main asset of our company. We didn’t
compromise on the quality. We try hard to provide our customers with the
best quality.
We have a quality assurance department that checks the quality of the
electronics luggage according to the Pakistan & International standards.
Our awards and the quality certificates are the mirror of our performance
so our customer can ensure the quality through these awards and quality
certificates.
Three years ago there was a severe problem of power but then for long
term planning we bought a heavy generator due to which our production
process didn’t interrupt. I didn’t face any other bottleneck
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We are providing the best environment for our employees which lesser the
conflicts among them. I didn’t face any major conflict.
We do prepare our plans for production at the start of the week to ensure
that everything will run according to the schedule so this strategy helps us
to minimize any problem & conflicts with the production process.
Other departments put stress on us when the production process slows
down otherwise in the routine work they send us orders and we dispatch
them on the due date.
There are different reports which we make on a daily, weekly and monthly
basis. Like we make dispatch reports daily, orders report daily, inventory
report daily, labor report daily etc.
Through our current production speed and demand of the products we put
focus on those areas or products which are highly sold so we do forecast
for the current sales that this particular product will need this % of raw
material which we have to keep. Moreover we also keep an eye on the
latest machinery which is being used in the assembling the electronic stuff
so that we can also acquire that to boost our production.
Every quality stuff maker is our competitor but I would like to say few
names like electronic and electric stuff, LG, SONY, HAIRE, PL
Quality is the main asset of our company but there is another thing on
which basis we feel that we are competing in the market and that is our
delivery time. We strive best to attain the minimum production time by
our strategies and proper scheduling. We deliver the best time to our
customers through the best manufacturing process.
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Findings:-1. In term of demand forecasting system the supply chain Orient is moderately effective.
2. In term of price forecasting system for raw material, the supply chain of Orient is
ineffective.
3. Order placement system Orient is moderately effective
4. Supply chain is moderately effective in case inventory management.
5. In term of order lead time the Orient is moderately effective
. 6. Supply chain is highly effective in term of production facility.
7. Supply chain is moderately effective in terms of production management.
8. In term of communication with supply chain partners supply chain is marginally
effective.
9. Supply chain orient is ineffective in term of communication with suppliers.
10. Supply chain is highly effective in term of shipment delivery (Distribution
Management).
11. In term of distribution flexibility supply chain is moderately effective.
Recommendations:-
Orient should improve their supply chain practice in those areas in which are current
ineffective or marginally effective.
Price forecasting system orient is ineffective. If future price of raw materials are
not accurately predicted, the production cost will be increased as consequence.
So, price forecasting system raw material should be improved.
Communication with supply chain partners, especially with suppliers should be
improved as the study finds that this function is currently in marginally ineffective
level. Although currently distribution schedule is not hampering with this lack of
communication but it can seriously impacts on production and increase
production cost.
Communication with suppliers should be more frequent and feedback should take
in order to get production materials timely and in right price.
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Supply chain areas which are currently moderately effective level (demand forecasting,
order placement, inventory management and production management, distribution
flexibility) should bring in to highly effective level.
Action Plan: 1 Price Forecast
They needed a more sophisticated pricing approach, not a more complicated one – and
Idea price system gives them a solution to my pricing problems that is easy to use. I never
knew that providing their company with access to advanced analytics would be so simple
to implement and inexpensive to their all.”
Ideas pricing System enables company managers to more accurately forecast occupancy,
quickly set daily raw material rates, and ultimately make more competitive pricing
decisions for their company. The system’s simplified approach, intuitive design and
powerful functionality minimize the amount of training and interaction needed to learn
and operate the system. In just a few clicks, users can upload pricing decisions to all
necessary distribution channels.
An immediate revenue lift due to the system’s advanced analytics and increased
market insight.
Usable by busy general managers - The system enables GMs or other companystaff to make efficient revenue management decisions without interrupting regular
responsibilities.
Increased time and energy for enhancing guest satisfaction through reduced
time and energy spent manually collecting, entering and analyzing market data.
High impact initiative Idea System’ proven analytics, award winning client
support, rapid implementation through delivery and minimal upfront costs
delivers high value and little risk.
Enhanced brand value proposition Limited service brands can offer simplified
pricing capability to current and prospective hotel owners.
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.Action Plan: 2 Developing Supply Chain Strategy
Understand the Business Strategy
The first step is for supply chain executives to clearly understand how the enterprise
chooses to compete. This is important not only for the obvious reason of working off the“
same play book,” but also for the reason that it forces the supply chain operation to see
itself as a customer facing entity serving the competitive goals of the enterprise not
merely an operational department. Supply chain strategy is not simply a linear derivative
of the business strategy
Assess the Extended Supply Chain
The next step is to conduct a detailed, realistic assessment of the capabilities that Exist
within the organization and even the extended supply chain. Begin by closely scrutinizing
your organization’s assets and evaluate how well they support the strategy. Old
machinery and disparate systems may mean high operational overhead and costly process
inefficiencies and redundancies clearly not supportive of a low cost provider strategy.
Develop an Implementation Plan
From this critical work emerges the “go forward” supply chain strategy directly tied to
the business strategy, highly specific as to enablers and metrics, and with defined set of
implementation requirements and contingencies. The development of an implementation
plan should include activities and tasks, roles, responsibilities, a corresponding timeline,
and performance metrics. Establish sub team to shepherd the execution and provide
project management responsibility to resolve issues and track status.
Development Considerations
Cooperate and Collaborate with Your Partners – Throughout the development process
remember to include your supply chain partners. While you don’t necessary need to
divulge the full details of your strategy, you can certainly communicate how you wouldlike to do business. Ideally, seek out mutual goals that both organizations can execute on.
Not only will you be one step closer to realizing your supply chain strategy, you will
learn more about the companies that you do business with. For example, collaboration in
product design may meet your need Tostem R&D costs and also alert you to new product
concepts that you wouldn’t discover without working with your customer.
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Outsource Where Appropriate
Part of developing a supply chain strategy includes evaluating opportunities to outsource
areas that are not your core competency. If someone else can do it cheaper, it may be
worth outsourcing not only to drive down costs, but also to focus more resources on the
core competencies your organization does well.
Action Plan: 3 Keep Communicating with Your Partners
Executing a supply chain strategy means dealing with many different entities, both
internally and externally. Just as it is crucial to align the supply chain strategy with the
business strategy, it is equally important to execute in a manner consistent with these
different groups or stakeholders. The goals of your supply chain components and those
that you deal with must be similar and conducted at the same speed. Your organization
may be able to move at speeds other supply chain entities are unable to maintain,resulting in misalignment and poor efficiencies. And some of your supply chain partners
may not have the resources to commit to realizing these goals. Good communication can
keep the extended supply chain in sync.
Action Plan: 4 Avoiding Potential Pitfalls
Even before the well publicized dot com collapse, business failures due to poorly
Implemented strategy were very frequent. Fortune Magazine reported in a study that
CEO strategy failures occurred primarily (est. 70%) because of failure in Execution, not
with the vision and strategy development. “The real problem isn’t the high concept
boners the bowfins love to talk about. It’s bad execution. As simple as that: not getting
things done, being indecisive, not delivering on commitments.”
Action Plan: 5 Implementation Of supply Chain
The implementation of supply chain management (SCM) can be both beneficial and
challenging to your business. Determining supply chain challenges before they happen is
critical to SCM success, as the failures and successes are extremely visible to your
trading partners. In order to achieve successful implementation of SCM, take note of the
following supply chain challenges:
Do not assume SCM Technology Fixes Everything.
SCM technology does many things, but it cannot do it all. One of the most unrealistic
assumptions is that SCM technology will help you control your supply chain and vendor
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resources. Before you rely too heavily on SCM technology, you must first have a specific
level of organized control within your supply chain relationships. Supply chain
management technology is most effective when you have the ability to control your
logistic providers and trading partners.
Do not Use the Past to Predict the Future.
Relying on past performance to predict future sales can cause big problems. Instead, track
actual sales as they happen; the supply chain network will react quickly to any changes in
consumer trends. This tactic is particularly beneficial in a retail supply chain, when the
item being sold is unremarkable and can be purchased from a variety of retailers.
Do not rely on Sale Data.
Never rely solely on sale data when making critical decisions. It’s important to
understand and utilize real- time inventory levels, cash flow and financial ratings when
making critical supply chain decisions. If you maintain your supply chain metrics, you’ll
avoid making partnership errors with both suppliers and customers.
Do not forget to Communicate.
Another common supply chain challenge is lack of communication. Both suppliers and
customers need continuous monitoring, as well as collaboration to ensure supply meets
demand. Nothing can replace face-to-face communication; by fostering personal
relationships with both customers and suppliers, the entire supply chain process will be
embraced by all.
Do not forget about a supplier’s capability
One of the more difficult aspects of supply chain management is trying to understand the
full capabilities of your suppliers. By understanding what a supplier can do during critical
times can greatly increase your response time to changes in demand. Skilled supply chain
managers will often review lead times, burst capacity, standard capacity and quick turn
capabilities with their suppliers to ensure the supplier’s capabilities meet the needs of the
company.
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Conclusion:-
Supply chains are effective when the exchange value of the system fulfills expectations
of the supply chain members. Today’s business environment is more global and
competitive than it has been in the past. The modern business is characterized with
shorter product life cycles, rapid new product introductions, increasingly knowledgeable,
well informed, and sophisticated customers. This forces supply chains to be more
effective. The modern supply chains are thus expected to respond rapidly, effectively,
and efficiently to changes in the market place so as to sustain, and further more create
competitive advantage.
Learning out coming:-
Throughout the interview we tried our best to catch the best possible answers but the
manager was looking in a hurry and he gave us answers very shortly. Even he didn’t
share any real time experience with us but overall it was a good interview which helps us
a lot to learn and experience new things about Supply chain department which we never
experienced before.
Through the interview we came to this point that the Supply chain manager job is of
much responsibility because he has to ensure the continuous supply by keeping all the
inputs into right condition. He has to come up with day to day challenges of the supply
process which he solves by adopting proper and effective strategies. The manager has to
keep himself up to date with the new trends and techniques which make him profitable
for the organization.