chapter – iii findings - individual case...

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CHAPTER – III FINDINGS - INDIVIDUAL CASE ANALYSIS

3.1 Introduction The later globalization and liberalization period enhanced the trade in all

sectors which includes automobile and auto components and electrics and electronics in top trading commodities in India. Indian automobile industry has in recent years, flourished and displayed extra-ordinary growth capabilities. This has become possible mainly because of improvement in living standards of Indian middle class, increase in their disposable income and cheap labor and resources in India. The liberalization steps initiated by the Government of India, such as reduction of tariffs on imports, and refining the banking policies, have played an equally important role in bringing the Indian Automotive industry to greater heights.

According to Automotive Components Manufacturers Association (ACMA), today, India is forth largest and fastest growing passenger car market in Asia, second largest two-wheeler market and the largest three-wheeler market in the world. During this century, Indian automotive manufacturing has emerged as the most economically significant industry in the world. It has hundreds of suppliers and thousands of spare parts units. Hence the effective supply chain management has become key important factor for success of automobile company. From a low-key supplier providing components to the domestic market alone, the industry has emerged as one of the key auto components centers in Asia and is today seen as a significant player in the global automotive supply chain. India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen amongst others. As per an Automotive Component Manufacturers Association of India (ACMA) report, the turnover of the auto component industry was estimated at over US$ 18 billion in 2007-08, an increase of 27.2 per cent since 2002. It is likely to touch US$ 40 billion by 2015-16.

The Electric and Electronic industry in India took off around 1965 with an orientation towards space and defense technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistors radios, black & with TV, calculators, and other audio products. 1985 saw the advent of computers and telephone exchanges, which were succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during which the industry witnessed continuous and rapid growth.

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From 1991on wards, there was first an economic crises triggered by the Gulf war which was followed by political and economic uncertainties within the country. Pressures on the electronics industry remained though growth and developments have continued with digitalization in all sectors, and more recently trends towards convergence of technologies. After the software boom in mid 1990s India’s focus shifted to software. While the hardware sector was treated with indifference by successive governments. Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition. But in recent years the electronic industry is growing at a brisk pace. It is currently worth US$32 Billion and according to industry estimates it has the potential to reach US$ 150 Billion by 2015. The electronic industry in India constitutes just one percent of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity.

Major challenges facing the Indian electronic manufacturing market are, an infrastructure that needs to be improved at the earliest possibility, easing of foreign investment procedures, and a restructured government tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariff. While the electronic sector in India is currently small, there are several advantages that India offers that can be effectively leveraged to achieve higher growth. These can be categorized under three heads; manpower, market demand and policy and regulation.

The present research is a multiple case study to investigate the different practices of Supply Chain Management (SCM) in some Automotive and Automotive components manufacturing firm and also electronic industry. Each case is a unit of analysis. So, within case analysis is performed based on data collected through interview, questionnaire, documents and observation. As mentioned in chapter one, for each firm 15 questionnaires were distributed. The details of case analysis, factor analysis of questionnaire, synthesis case analysis and testing of developed hypothesis are presented in this chapter.

3.2 TVS Motor Company Ltd. The TVS group, India’s leading supplier of automotive components originated

as a transport company in 1911. Today it has grown to more than thirty three companies and employees a workforce of over 25000, grossing an annual aggregate sale in excess of USD 2.8 billion, with diverse range of operations that includes manufacturing and distribution with steady growth , expansion and diversification, TVS commands a strong presence in manufacturing of two wheelers, auto components and computer peripherals.

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The TVS group includes, Sundaram Fasteners, Lucas TVS, Brakes India, Wheels India, Sundaram Brake Lining, TVS motor Company and TVS Electronics. These companies with their ability to deliver products of the right quality, at the right price and at the right time have made a mark in the Indian and global markets. Underlying the success of the group is its philosophy of trust, commitment, value and services. TVS Motor Company Limited, (hereafter referred to as TVS) was formerly known as TVS Suzuki. It is the flagship company of the TVS group and is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. It manufacturers wide range of mopeds, scooterette and motorcycle with products like TVS Scotty, TVS Fiero, TVS Super XL, TVS victory , TVS Centra, TVS Star, etc.

TVS is the first two–wheeler manufacture in the world to be honored with the hallmark of japans quality- the Deming prize for TQM, Pull production system and Kanban system.TVS believes that the success of any enterprise is built on the solid foundation that the customer satisfaction. Continuous innovation and close customer interaction have enabled TVS companies to stay ahead of competition. The group endeavors to be competitive without compromising on quality. Trust and commitment between different members of supply chain is a fundamental principle of the TVS management philosophy.TVS has its own supply chain management, that controls the different activities from inbound logistics to outbound logistics (see Figure 3.1)

Figure – 3.1 : SCM in TVS Motor Company Ltd.

Source: www.tvsmotor.co.in

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3.2.1 Supply Chain Orientation (SCO) in TVS Motor Company Ltd.

As for the facilitating factors for the successful implementation of SCM in a firm,

first, orientation factors toward SCM have to be identified. Therefore, fifteen respondents

were asked to rate the importance of twenty attributes related to SCO on a7-point Likert

scale ranging from “strongly disagree” to “strongly agree” (see Table 3.1).

Table – 3.1 : SCO in TVS Motor Company Ltd.

S.

No. Attributes 1 2 3 4 5 6 7 Mean S.D

1 SCM executive - 1 - - 2 3 9 6.20 1.3732 SCM program management office - - - 1 3 10 1 5.73 .704 3 SCM strategic road map - - 1 - 3 7 4 5.87 1.0604 EX ante impact analysis - - 1 - 3 9 2 5.73 .961 5 Overall SC cost reduction - - 1 - 1 11 2 5.87 .915 6 Overall SC time reduction - - - 1 5 8 1 5.60 .737 7 Survival is adapting to SCM - - - - 4 7 4 6.00 .756

8 Long term relationships with SC members is critical - - 1 1 2 6 5 5.87 1.187

9 Sharing valuable information with SC members 1 1 2 2 2 6 1 4.67 1.759

10 Sharing risk and rewards with SC members 1 - 2 4 2 3 3 4.80 1.740

11 Adequate education provide about SCM - - 2 3 7 2 1 4.80 1.082

12 SC members participation in important decision - - 2 7 3 2 1 4.53 1.125

13 Depend SC member’s support in important conditions - - 1 6 6 2 - 4.60 .828

14 Patient with SC member’s mistakes - 1 - 1 8 4 1 5.13 1.125

15 SC members must work to gather for success - - - - 2 6 7 6.33 .724

16 SC as a value added - - - - 1 6 8 6..33 1.04717 JIT philosophy 1 - 1 4 9 - - 4.33 1.11318 CPFR philosophy 1 1 1 - 9 1 2 4.73 1.62419 SCOR model 2 6 5 - 1 1 - 2.67 1.34520 Overall SC effectiveness management 1 - - 1 2 9 2 5.53 1.457

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This table shows that almost all (nineteen out of twenty) items of SCO have

mean scores above than midpoint four. Only one item has a mean score below than

four, namely, “SCOR model” (mean = 2.67, S.D = 1.345). The top five mean scores

in this category are, “SC members must work to gather for success” (mean = 6.33,

S.D = 0.724), “SC as a value added” (mean = 6.33, S.D = 1.042), “SCM executive”

(mean = 6.20, S.D 1.373), “Survival is adapting to SCM” (mean = 6.00, S.D = 0.756)

and “overall SC cost reduction” (mean = 5.87, S.D = -0915). This firm recognizes that

all of SC members must work to gather for success because all of fifteen respondents

have answered strongly agree or agree.

3.2.2 Internal-Firm-Integration (IFI) in TVS Motor Company Ltd.

The concept of supply chain integration should extend from the internal

integration and move to the external integration. Hence, fifteen respondents were asked

to rate the importance of twelve attributes related to internal integration on a 7-point

Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.2).

Table – 3.2 : IFI in TVS Motor Company Ltd.

S. No. Attributes 1 2 3 4 5 6 7 Mean S.D

1 Departments connected by central IS - - - - 1 5 9 6.53 .640

2 Communication routed through proper channel - - - - 1 7 7 6.40 .632

3 Trust and commitment is main indicator - - - - 4 8 3 5.93 .704

4 Function performance base organization - - - - 2 8 5 6.20 .676

5 JIT philosophy is encouraged - - - 2 2 6 5 5.93 1.033

6 Logistic collaborates with other functions - - - 1 5 4 5 5.87 .990

7 Share data and information - - - - 4 7 4 6.00 .756 8 Acceptance responsibility for quality. - - - 1 3 4 7 6.13 .990 9 Implement TQM - - - 1 1 6 7 6.27 .884 10 Joint development project - - - - 4 5 6 6.13 .834

11 Interdepartmental exchange of idea encouraged - - - 1 3 5 6 6.07 .961

12 Internal integrated management system - - - - 2 10 3 6.07 .594

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This table reveals that this firm is internally high integrated. Because the mean scores of all attributes are above than midpoint four. The variables, “departments are connected by central information system” (mean = 6.53, S.D = 0640), “communication routed through proper channel” (mean = 6.40, S.D = 0.632) and “implement TQM” (mean = 6.27, S.D. = 0.884) have been recognized as top three attributes of internal integration in this firm. However, it is important to note that there is significant difference between all means of different variables, because all respondents are strongly agree or agree about attributes. 3.2.3 Suppliers-Firm-Integration (SFI) in TVS Motor Company Ltd.

Supplier integration refers to the degree to which a firm can create a strategic partnership with its key suppliers. To identify the nature of integration of this firm with its external suppliers fifteen respondents were asked to rate the importance of twenty attributes related to this factor on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.3)

Table – 3.3 : SFI in TVS Motor Company Ltd.

S.


1 Trustworthy relationship - - - - 5 3 7 6.13 .9152 Production plans are shared - - 1 3 3 3 5 5.53 1.3563 Inventory level is shared - - 1 3 2 5 4 5.53 1.302

4 Innovation and new product development involvement - - 3 5 3 3 1 4.60 1.242

5 Development of logistics process involvement 1 - 1 2 5 4 2 5.00 1.5586 JIT supplies bases 1 - 2 3 6 2 1 4.53 1.4577 Delivery schedule data exchange - - 1 2 3 5 4 5.60 1.2428 Pull system Shipment 1 - 2 3 7 1 1 4.47 1.407

9 Suppliers inclusion in continues improvement programs - 1 - 2 5 6 1 5.20 1.207

10 Quality inspection for new products arrived - 1 1 2 7 4 - 4.80 1.14611 Maintain mutual commitment - - - - 5 8 2 5.80 .67612 Engage in conflict resolution with suppliers - - - 2 3 7 3 5.73 .96113 Share risk and reward - - - 2 4 5 4 5.73 1.03314 Share cost reduction and efficiency gains - 3 - 4 4 1 3 4.60 1.72415 Long term alliance/ partnership - - 1 3 1 7 3 5.53 1.24616 Compatible technologies are used - - - 1 8 4 2 5.47 .83417 parties are patient with mistakes - - 1 5 1 8 - 5.07 1.10018 Work with supplier as a team - - 2 - 2 6 5 5.80 1.32019 Integrated information system emphasized - - - 2 4 7 2 5.60 .91020 Maintain long term relationship - - - 1 4 2 8 6.13 1.060

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This table presents that the mean scores of all twenty items of integration between firm and its key suppliers are high (about 5.50). The top five items even have means above than five and majority of respondents answered strongly agree are agree are, “trustworthy relationship with suppliers” (mean – 6.13, S.D = 0.915), “maintain mutual commitment” (mean = 5.80, S.D = 0.673), “work with suppliers as a team” (mean = 5.80, S.D = 1.320) and “engage in conflict resolution with suppliers” (mean = 5.73, S.D = 0.961). 3.2.4 Customer-Firm-Integration (CFI) in TVS Motor Company

The relationship with customers has moved from adversarial relationship to strategic partnership. Several studies have emphasized that customer integration is becoming a major source of reaching competitive advantages in turbulent business environment. Therefore, with considering this important factor in supply chain integration, fifteen respondents were requested to rate importance of twenty different attributes on a 7-poin Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.4).

Table – 3.4 : CFI in TVS Motor Company Ltd.


1 Trustworthy relationship - - - - 2 5 8 6.40 .7372 Mutual and long term commitment - - - - 5 4 6 6.07 .8843 Delivery performance feedback - - - 1 1 7 6 6.20 .8624 Participation in new product development. - - 7 1 3 4 - 4.27 1.3355 Share demand information by Customers - - - 4 2 5 4 5.60 1.1836 Production plans are share - 2 7 1 2 3 - 3.80 1.4247 Inventory level is shared - - 3 5 2 5 - 4.60 1.1838 Continuously replenishment program - - 1 2 3 7 2 5.47 1.1259 JIT delivery - - 1 4 7 3 - 4.80 .86210 Post sales services - - 1 1 4 6 3 5.60 1.12111 Interaction with production employees - - 5 1 5 2 2 4.67 1.44712 Interaction to set reliability and standard - - 1 1 4 4 5 5.73 1.22313 SMU for specific customers - 1 1 2 8 3 - 4.73 1.10014 Involvement in product customization - 1 1 5 6 2 - 4.47 1.060

15 Post sales feedback in to product development - - - 1 1 11 2 5.93 .704

16 As an important source of new idea - - 3 1 2 6 3 5.33 1.44717 Share risks and reward - 5 5 1 3 1 - 3.33 1.34518 Looking for win-win situation - - 1 - 3 9 2 5.73 .96119 Share cost reduction and efficiency gain - 1 4 6 4 - - 3.87 .91520 Maintain long term relationship - - - 1 1 6 7 6.27 .884

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This table shows that this firm’s relationship with its customers is not as much integrated as internal and suppliers are, where, three items out of twenty have means score bellow than midpoint four. These variables are, “share risks and rewards with customers” (mean = 3.33, S.D = 1.345), “production plans are shared with customers” (mean = 3.80, S.D = 1.424) and “share cost reduction and efficiency gain” (mean = 3.87, 0.915). However, the top five items have been recognized by respondents are “trustworthy relationship with customers” (mean = 6.40, S.D = 0.737). This item has highest mean score, that all of fifteen respondents answered strongly agree or agree. Next to that “maintain long term relationship with customers” (mean = 6.27, S.D = 0.884), “Delivery performance feedback” (mean = 6.20, S.D = 0.862) and “looking for win-win situation” (mean = 5.73, S.D = 0.951) are another main attributes with high means score. 3.2.5 Supply Chain Flexibility (SCF) in TVS Motor Company Ltd.

Flexibility in every supply chain has been considered as a major competitive weapon for organizations due to its ability to help cope with uncertain business environments. Hence, to identify the level of flexibility of supply chain in this firm, fifteen respondents were presented a questionnaire to rate the importance of thirteen attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.5).

Table – 3.5 : SCF in TVS Motor Company Ltd.

S. No Attributes 1 2 3 4 5 6 7 Mean S.D

1 Operate efficiently at different levels of output - - - - 5 7 1 5.47 .8342 Quickly change the quantities - - 2 5 6 1 1 4.60 1.0563 Easily change the production volume - - - 2 2 6 5 5.93 1.0334 Produce a variety of products - - - 2 6 2 5 5.67 1.113

5 Different products in the same plants , same time - - 1 1 6 4 3 5.47 1.125

6 Workers perform many operations effectively - - 1 1 - 10 3 5.87 1.0607 Workers operate various machines - - - 5 3 4 3 5.33 1.175

8 Quickly changeover from one product to another - - - 3 3 6 3 5.60 1.056

9 NPD bases of customer wants. - - - 1 5 4 5 5.87 .99010 Change design and size 1 - - - 2 8 4 5.80 1.47411 Market changes adaptation in short time 1 - - 2 5 4 3 5.27 1.53412 Change logistics and transportation - - - 1 1 10 3 6.00 .75613 Enhance equipment at shortest time - - - 3 4 2 3 5.13 1.187

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This table reveals that each item has a mean score above than midpoint four.

Because all of respondents have answered strongly agree, agree or moderately agree.

The top five items even have means score above than five, namely are, “change

logistics and transportation system based on customer wants” (mean = 6.00, S.D =

0.756), “easily change the production volume” (mean = 5.93, S.D = 1.033), “new

product development based on customer wants” (mean = 5.87, S.D = 0.990), “workers

perform many operations effectively” (mean = 5.87, S.D = 1.060) and “ability to

change product design and size” (mean = 5.80, S.D = 1.474).

3.2.6 Supply Chain Leanness (SCL) in TVS Motor Company Ltd.

Lean supply chain practices are conceptualized to consist of three main

components: pull or JIT methods, the use of Statistical Process Control (SPC) and

continuous flow for families or groups of products. Therefore, to evaluate the level of

leanness of supply chain in this firm fifteen respondents were requested to rate the

importance of nine different attributes on a 7-point Likert scale ranging from

“strongly disagree” to “strongly agree” (see Table 3.6).

Table – 3.6 : SCL in TVS Motor Company Ltd.


1 Pull production system - - 6 7 - 1 1 3.93 1.1632 Continues production of products - - 1 2 4 3 5 5.60 1.2983 Lower setup time of production - - - 2 2 6 5 5.93 1.0334 Low setup times of equipment - - 1 4 2 5 3 5.33 1.2915 Statistical techniques are used 1 - - 1 6 5 2 5.27 1.4386 Charts showing defects are used - - 1 - 1 9 4 6.00 1.0007 Fishbone diagram is used - - - 2 2 6 5 5.93 1.0338 Conduct feasibility study - - - 2 1 7 5 6.00 1.000

9 Production stages and rate of customer demand are linked - - - 2 3 5 5 5.87 1.060

This table shows that almost all items (eight out of nine) have mean scores

above four. The one item that has a mean score below four is “pull production

system” (mean = 3.93, S.D = 1.163). This table also reveals the top five variables

which namely are, “charts showing defects are used” (mean = 6.00, S.C = 1.00),

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“conduct feasibility study” (mean = 6.00, S.D = 1.00), “lower setup time of

production” (mean = 5.93, S.D = 1.033), “fishbone diagram is used” (mean = 5.93,

S.D = 1.33) and “production stages and rate of customer demand are linked” (mean =

5.87, S.D = 1.60).

3.2.7 Supply Chain Agility (SCA) in TVS Motor Company Ltd.

Agility is the ability to produce a broad range of low cost, high quality

products with short lead times in varying lot sized built to individualized customer

specifications. It was asked from fifteen respondents to rate the importance of

fourteen attributes related to SCA on a 7-point Likert scale ranging from “strongly

disagree” to “strongly agree” (see Table 3.7).

Table – 3.7 : SCA in TVS Motor Company Ltd.

S.


1 Quickly modify products - - 4 2 1 7 1 4.93 1.4382 Quickly introduce new product - - - 5 6 4 - 4.93 .799 3 Quickly respond to changes - - - 1 7 4 3 5.60 .910 4 Quickly change the delivery time - - - 1 7 2 5 5.73 1.0335 Adjust to supplier delivery schedules - - - 1 5 5 4 5.80 .941

6 Quickly exchange information with parties - - - 1 2 4 8 6.27 .961

7 Ability to forecast market changes - - - 5 2 8 - 5.20 .941 8 Rapidly reduce inventory level - 3 4 3 4 1 - 3.73 1.2809 Rapidly reduce the setup cost - - 2 - 1 8 4 5.80 1.26510 Rapidly reduce the setup time - - 2 - 3 8 2 5.53 1.18711 Rapidly reduce NPD cycle time. - - 1 3 3 6 2 5.33 1.17512 Rapidly reduce order-to- delivery cycle time. - - 2 4 6 2 1 4.73 1.10013 Rapidly adjust to the customization - - 1 - 5 8 1 5.53 .915 14 Rapidly improve manufacturing process - 5 4 1 3 2 - 3.53 1.506

This table shows that almost all of items (twelve out of fourteen) of SCA have

mean scores above than four. The top five items even have mean scores above five,

namely are; “quickly exchange of information with parties “ (mean = 6.27, 0.961),

“quickly adjust to supplier delivery schedules” (mean = 5.80, S.D = 0.941), “rapidly

reduce the set up cost” (mean = 5.80, S.D = 1.265), “Quickly change the delivery

time” (mean = 5.73, S.D = 1.033) and “rapidly reduce the setup time” (mean = 5.53,

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S.D = 1.187). As it can be seen in this table, all of mentioned variable answered by

respondents strongly agree or agree. The two items that have mean scores below than

four are; “rapidly improve manufacturing process” (mean = 3.53, S.D = 1.506) and

“rapidly reduce inventory level” (mean = 3.73, S.D = 1.280). This variable is

consistent with a low mean score of “pull production system” (mean = 3.93) in SCL

component.

3.2.8 Supply Chain Barriers (SCBA) in TVS Motor Company Ltd.

The respondents are requested to evaluate the importance of fourteen

identified issues hindering SCM practices in their firm on a 7-point Likert scale

ranging from “strongly disagree” to “strongly agree” (see Table 3.8).

Table – 3.8 : SCBA in TVS Motor Company Ltd.

S.


1 Lack of adequate information system 4 5 3 1 2 - - 2.47 1.3562 Lack of clear alliance guideline 2 6 1 2 3 1 - 3.07 1.6243 Lack of consistent operating goals 2 7 2 1 2 1 - 2.80 1.5214 Lack of trust and commitment - 8 6 1 3 1 - 2.87 1.1875 Lack of sharing risks and rewards - 6 3 1 3 1 1 3.40 1.2986 Lack of ability in managing inventories - 6 2 2 4 2 - 3.53 1.6857 Lack of cooperation - 3 1 1 5 5 - 3.73 1.5348 Lack of interest to participate in SCM - 4 1 4 4 2 - 4.53 1.5529 Lack of willingness to share information - 4 1 4 4 2 - 3.93 1.43810 Lack of top management support 2 3 2 2 5 1 - 3.53 1.64211 Lack of facilities and equipment 2 4 3 3 1 2 - 3.20 1.61212 Lack of proper communication technology 1 4 5 2 1 2 - 3.27 1.48613 Supplier geographical distance - 3 1 3 7 1 - 4.13 1.30214 Customer geographical distance - 2 - 3 6 2 2 4.80 1.474

This table shows that, four items have been identified by respondents as main important barriers of SCM in this firm. These top four items namely are; “customer geographical distance” (mean = 4.80, S.D = 1.474), “lack of interest to participate in SCM practices” (mean = 4.53, S.D = 1.552), “supplier geographical distance” (mean = 4.13, S.D = 1.302) and “lack of willingness to share information” (mean = 3.93, S.D = 1.438). The two “customer geographical distance” and “supplier geographical distance” variables as main barriers to SCM in this firm are consistent with a low

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mean of “rapidly reduce inventory level” (mean = 3.73) in SCA components and “pull production system” (mean = 3.93) in SCL components. The three best important barriers to SCM with low mean scores in this firm namely are; “lack of adequate information systems” (mean = 2.47, S.D = 1.356), “lack of consistent operation goals” (mean = 2.80, 1.521) and “lack of trust and commitment” (mean = 2.87, S.D 1.187). 3.2.9 Supply Chain Benefits (SCBE) in TVS Motor Company Ltd.

Companies are employing SCM practices in their organizations to achieve several benefits. Fifteen important benefits are identified and the fifteen respondents were requested to rank these benefits on a 7-point Likert scale ranging from “strongly decreased” to “strongly increased” (see Table 3.9).

Table – 3.9 : SCBE in TVS Motor Company Ltd.


1 Market share - - - - 4 8 3 5.93 .704 2 Sales growth and profitability - - - - 5 7 3 5.87 .743 3 Customer satisfaction - - - - 2 9 4 6.13 .640 4 Productivity - - - 1 2 10 2 5.87 .743 5 Defects as a % of production volume - - - 8 2 4 1 4.87 1.0606 Overall product quality - - - 2 3 8 2 5.67 .900

7 Customer responsiveness rate in terms of design-price- quality - - - 2 4 8 1 5.53 .834

8 On-Time product delivery - - - 5 2 8 - 5.20 .941 9 Order fulfillment lead time (Cycle Time) - 2 - 3 6 4 - 4.67 1.291

10 Inventory days/cost of raw material inventory - - 3 4 6 2 - 4.47 .990

11 Inventory days/cost of finished goods - - - 3 8 4 - 5.07 .704 12 Return on delivered product or return cost - - - 7 4 3 1 4.87 .990 13 Product innovation lead time - - - 5 8 2 - 4.80 .676 14 Handle unexpected challenges - - 2 3 6 3 1 4.87 1.12515 Cost of purchased items - 1 - 5 3 6 - 4.87 1.187

This table reveals that firm is performing at satisfactory level of obtaining

benefits in its SCM, because all of items have mean scores above than midpoint four.

The top five items even have mean above than five, namely are; “customer

satisfaction” (mean = 6.13, S.D = 0.640), “market share” (mean = 5.93, S.D = 0.704),

“Sales growth and profitability” (mean = 5.87, S.D = 0.743), “productivity” (mean =

5.87, S.D = 0.743) and “overall product quality” (mean = 5.67, S.D = 0.900).

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3.3 Automotive Axles Ltd. The Kalyani Group is one of the leading Industrial Houses in India, having

divers’ business interests in Engineering Steel, Forgings, Auto Components, Non Conventional Energy and Speciality Chemicals. The Group’s Annual Turnover is over USD 1.8 billion and has joint ventures with some of the world leaders such as Meritor, USA, Carpenter Technology Corporation, USA, and Hayes Lemmerz in Germany. Automotive Axles Limited (AAL) established in 1981, is a joint venture of Kalyani Group and Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation). With manufacturing facilities located at Mysore, the company is currently the largest independent manufacturer of Rear Drive Axle Assemblies in the country. Over the years, AAL has developed an impressive domestic Original Equipment Manufacturer (OEM) clientele that includes Ashok Leyland, Tata Motors, Asia Motor Works, Vehicle Factory-Jabalpur, BEML, Man Force Trucks Pvt. Ltd., Mahindra Navistar, Volvo India and SML Isuzu Ltd., VE Commercial Vehicles, Corona Bus Mfrs., and Godrej.

AAL exports axle parts to USA, France, Italy, China, Brazil, and Australia. The infrastructure at AAL spans highly specialized manufacturing processes involving Friction Welding, CO2 Welding, CNC Machining, Flexible Machine Centers and a range of specially built machines for production of Axles and Brakes. The facilities also comprise Gleason Gear Manufacturing Equipment backed by a modern Heat Treatment Shop including Continuous Carburizing and Sealed Quench Furnaces. AAL Manufacturers of Single Reduction Drive Axles, Single Reduction Drive Tandom Axles, Non Drive Axles, Axle components for air actuated 'S' Cam Brakes.

The AAL’s top management believes that, AAL shall be a world class automotive Tier I organization through total supply chain members involvement by exceeding business plan objectives, providing value to customers through innovative solution, product quality and exceptional services and continual improvement of Quality Management System(QMS). As one supply chain executive I interviewed summarized that:

… a close and long term relationship with upstream suppliers and downstream customers is a critical phenomenon of every supply chain success. And to deliver a right product at the right time, total supply chain capability must be matched to the needs of downstream customers, that collaboration of suppliers is a must.

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ALL is working with its suppliers and customers as a integrated team to

satisfy the overall objectives of supply chain system (see Figure 3.2).

Figure – 3.2 : Supply Chain of Automotive Axles Ltd.

Source: Managers Interviewed.

Automotive Axles Limited

Flow of G

oods

FlowofInform

ation

Inbound Logistics

Outbound Logistics

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3.3.1 Supply Chain Orientation (SCO) in Automotive Axles Ltd.

Successful implementation of Supply Chain Management (SCM) depends not

only on the presence of technical equipment and advanced technology, but very

importantly depends on people’s attitudes and recognition that are managing and

working in a supply chain. The following factors have been identified as general

recognition and believe of Automotive Axles managers towards SCO. These were

presented to the fifteen respondents and they were asked to rate the importance of

twenty attributes related to supply chain orientation on a 7-point Likert scale ranging

from “strongly disagree” to “strongly agree” (see Table 3.10).

Table – 3.10 : SCO in Automotive Axles Ltd.

S.

NO Attributes 1 2 3 4 5 6 7 Mean S.D

1 SCM executive - - - - 5 5 5 6.00 .845 2 SCM program management office - - - 1 6 7 1 5.53 .743 3 SCM strategic road map - - - 1 6 6 2 5.60 .828 4 EX ante impact analysis - - - 1 7 6 1 5.47 .743 5 Overall SC cost reduction - - - - 2 7 6 6.27 .704 6 Overall SC time reduction - - - - 5 8 2 5.80 .676 7 Survival is adapting to SCM - - - - 1 7 7 6.40 .632

8 Long term relationships with SC members is critical - - - - 1 7 7 6.40 .632

9 Sharing valuable information with SC members - 1 1 2 5 5 1 5.00 1.309

10 Sharing risk and rewards with SC members - - 2 4 4 2 3 5.00 1.363

11 Adequate education provide about SCM - - 1 3 2 6 3 5.47 1.246

12 SC members participation in important decision - - 3 3 4 3 2 4.87 1.356

13 Depend SC member’s support in important conditions - - - 1 10 4 - 5.20 .561

14 Patient with SC member’s mistakes - - 5 3 4 3 - 4.33 1.175

15 SC members must work to gather for success - - 1 3 2 5 4 5.53 1.302

16 SC as a value added - - 3 2 - 6 4 5.40 1.54917 JIT philosophy 1 - 4 5 3 2 - 4.00 1.30918 CPFR philosophy - - 3 2 3 5 2 5.07 1.38719 SCOR model 4 3 7 1 - - - 2.33 .976 20 Overall SC effectiveness management - - 1 2 4 5 3 5.47 1.187

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This table shows that respondent’s recognition is at satisfactory level about

SCM where almost all of the means score are more than midpoint four in a seven-

point likert scale. The top five means namely are; first, “long term relationships with

SC members is critical” (mean = 6.40, S.D = 0.632) that fourteen out of fifteen

respondents are strongly agree or agree on this. Second, respondents are believe

“survival of their firm is adapting to SCM” (mean = 6.40, S.D = 0.632) that fourteen

out of fifteen respondents are strongly agree or agree and only one of them is

moderately agree. Third, “availability of SC executive” (mean = 6.00, S.D = 0.845)

that ten out of fifteen respondents strongly agree of agree and five of them are

moderately agree.

Fourth, respondents are believe on “overall SC cost reduction: (mean = 6.27,

S.D = 0.704) that thirteen out of fifteen respondents are strongly agree or agree and

two of them are moderately agree. And fifth, respondents are believe on “overall SC

time reduction” (mean = 5.80, S.D = 0.676) that ten out of fifteen respondents are

strongly agree or agree and five of them are moderately agree. It is Interesting to note

that “SCOR model” (mean = 2.33, S.D = 0.976) was identified as less important

variable toward SCO in this firm. It means SCOR model as global standard to

implement SCM has not been used and recognized by this firm. Next to that, “JIT

philosophy” (mean = 4.00, S.D = 1.309) was also obtained as other less important

item in SCO of this firm.

3.3.2 Internal-Firm-Integration (IFI) in Automotive Axles Ltd.

Implementing SCM inherently requires coordination across the traditional

business function within a firm in close relationship between different with in a

supply chain to accomplish a common set of goals. Therefore internal firm integration

has been emphasized as an essential element of every successful supply chain

management. With respect to this factor fifteen respondents were requested to rank

their agreement about twelve different attributes on a 7–point Likert scale ranging


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Table – 3.11 : IFI in Automotive Axles Ltd.

S. NO Attributes 1 2 3 4 5 6 7 Mean S.D

1 Departments connected by central IS - - - - 3 3 9 6.40 .828

2 Communication routed through proper channel - - - - 7 3 5 5.87 .915

3 Trust and commitment is main indicator - - - - 3 8 4 6.07 .7044 Function performance base organization - - - 1 3 9 2 5.80 .7755 JIT philosophy is encouraged - - - 3 5 4 3 5.47 1.060

6 Logistic collaborates with other functions - - - 2 1 9 3 5.87 .915

7 Share data and information - - - - 3 7 5 6.13 .7438 Acceptance responsibility for quality. - - - - 4 6 5 6.07 .7999 Implement TQM - - - 1 6 7 1 5.53 .74310 Joint development project - - - - 6 7 2 5.73 .704

11 Interdepartmental exchange of idea encouraged - - - - 6 6 3 5.80 .775

12 Internal integrated management system - - - - 5 4 3 6.07 .884

This table shows that this firm is internally high integrated. Because the means score of all attributes are greater than midpoint four. The variables “departments connected by central information system” (mean = 6.40, S.D = 828), “share data and information between different departments” (mean = 6.13, S.D = 0.743), “acceptance responsibility for quality by department” (mean = 6.07, S.D = 0.799), “internal integrated management system” (mean = 6.07, S.D = 0.884) and “trust and commitment is main indicators” (mean = 6.07, S.D = 0.704) have been identified as top five attributes toward internal firm integration in this firm. However, this table also reveals that all respondents are strongly agree, agree or moderately agree that this firm is internally integrated and there is a no significant difference between all means of different variables. 3.3.3 Supplier-Firm-Integration (SFI) in Automotive Axles Ltd.

Supplier–firm–integration has been considered as the cornerstone of low companies manages changes in their supply chain operations not because it enhances value, because it has become a requirement for survival in competitive business environment. There is thus a call for taking a close look at how supplier integration is in this firm, fifteen respondents were asked to rate the importance of twenty attributes related to this factor on a 7–point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.12).

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Table – 3.12 : SFI in Automotive Axles Ltd.


1 Trustworthy relationship - - - - 3 8 4 6.07 .704 2 Production plans are shared - - - 1 3 10 1 5.73 .704 3 Inventory level is shared - - - 3 7 5 - 5.13 .743

4 Innovation and new product development involvement - - - 3 4 6 2 5.47 .990

5 Development of logistics process involvement - - - 2 8 4 1 5.27 .799

6 JIT supplies bases 1 - 6 5 1 2 - 3.73 1.2807 Delivery schedule data exchange - - - 3 6 4 2 5.33 .976 8 Pull system Shipment - 2 5 5 1 2 - 3.73 1.223

9 Suppliers inclusion in continues improvement programs - - - 2 4 9 - 5.47 .743

10 Quality inspection for new products arrived - 2 3 5 5 - - 3.87 1.060

11 Maintain mutual commitment - - 1 3 3 7 1 5.27 1.100

12 Engage in conflict resolution with suppliers - - 1 - 6 4 4 5.67 1.113

13 Share risk and reward - - - 7 4 3 1 4.87 .990

14 Share cost reduction and efficiency gains - 1 2 5 5 2 - 4.33 1.113

15 Long term alliance/ partnership - - - 3 2 8 2 5.60 .986 16 Compatible technologies are used - - - 1 5 6 3 5.73 .884 17 parties are patient with mistakes - - - 4 2 7 2 5.47 1.06018 Work with supplier as a team - - - - 5 7 3 5.87 .743

19 Integrated information system emphasized - - - 1 6 4 4 5.73 .961

20 Maintain long term relationship - - - - 3 5 7 6.27 .799

This table shows that among all the attributes that this firm was focused on

relationship with suppliers; seventeen out of twenty attributes have means score above

four. The top six items even have means above than five namely are, “maintain long

term relationship” (mean = 6.27, S.D = 0.799), “trustworthy relationship” (mean =

6.07, S.D = 0.704), “work with supplier as a team” (mean = 5.87, S.D = 0.743),

“compatible technologies are used with suppliers” (mean = 5.73, S.D = 0.884),

“production plans are shared” (mean = 5.73, S.D =.704) and “integrated information

system emphasized” (mean = 5.73, S.D = 0.961).

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It is interesting to note that variable “JIT supplies bases’ (mean = 3.73, S.D = 1.280), “pull system shipment” (mean = 3.73, S.D = 1.223) and “quality inspection for new products arrived” (mean = 3.87, S.D = 1.60) get the lowest mean score out of all items in the criteria of suppliers integration. These items are consistent with low means score of “JIT philosophy’ and “SCOR model” in supply chain orientation of this firm.

3.3.4 Customer–Firm–Integration (CFI) in Automotive Axles Ltd. Supply chain management requires open communication lines that allow

everyone in the entire chain to focus on the next customers, and most of all on the end customer, combined with activities that process concurrently rather than sequentially (Pine, 1993). As such, CFI provides solutions to firms competing in today’s volatile business environment, because CFI is a system approach to viewing and managing the long term collaboration with customers to obtain a mutual benefit. With respect to this important factor, fifteen respondents are requested to evaluate the importance of each of the twenty SCM practices with downstream customers on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” to prioritize their importance in this firm (see Table 3.13).

Table – 3.13 : CFI in Automotive Axles Ltd.

S.


1 Trustworthy relationship - - - - 4 7 4 6.00 .756 2 Mutual and long term commitment - - - 2 2 7 4 5.87 .990 3 Delivery performance feedback - - 2 2 4 5 2 5.20 1.2654 Participation in new product development. - - 6 1 6 2 - 4.27 1.1635 Share demand information by Customers - - - 6 3 6 - 5.00 .926 6 Production plans are share - 1 7 3 4 - - 3.67 .976 7 Inventory level is shared - 4 3 5 1 2 - 3.60 1.3528 Continuously replenishment program - 1 1 4 2 5 2 5.00 1.4649 JIT delivery - 4 3 3 1 4 - 3.87 1.598

10 Post sales services - 1 1 2 2 4 5 5.47 1.59811 Interaction with production employees - 2 4 1 5 3 - 4.20 1.42412 Interaction to set reliability and standard - 1 3 4 3 2 2 4.53 1.50613 SMU for specific customers - - 4 4 4 2 1 4.47 1.24614 Involvement in product customization - - 6 6 2 1 - 3.87 .915 15 Post sales feedback in to product development - - - 2 6 3 4 5.60 1.05616 As an important source of new idea - - 5 4 4 2 - 4.20 1.08217 Share risks and reward 3 3 4 2 2 1 - 3.00 1.55818 Looking for win-win situation - 1 2 1 7 4 - 4.73 1.22319 Share cost reduction and efficiency gain 1 2 5 3 3 1 - 3.53 1.35620 Maintain long term relationship - - - - 3 7 5 6.13 .743

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This table shows that customer-firm-relationship is not as much integrated as

internal and supplier relationship integrated in this firm, where, six items out of

twenty have means score below than midpoint four. These variables are, “share risks

and rewards” (mean = 3.00, S.D = 1.558). This variables has lowest mean score, while

ten respondents disagree that this firm shares its risks and reward with is customers.

Next to that “share cost reduction and efficiency gain with customers” (mean = 8.53,

S.D = 1.356), “inventory level is shared” (mean = 3.60, S.D = 1.352), “Production

plans are shared” (mean = 3.67, S.D = 0.976), “JIT deliver” (mean = 3.87, S.D =

1.598) and “customer involvement in product customization” (mean = 3.87, S.D =

0.915) are the other lowest mean scores towards customer integration in this firm.

However, the top five items have been identified as indicators in customer-

firm-integration in this firm, namely are; “maintain long term relationship with

customers” (mean = 6.13, S.D = 0.743). This variable has been considered as highest

mean score, that all of fifteen respondents are answered strongly agree or agree. Next

to that, “trustworthy relationship with customer” (mean = 6.00, S.D = 0.756), “mutual

and long term commitment (mean = 5.87, S.D = 0.990), “Post sales feedback into

product development” (mean = 5.60, S.D = 1.056) and “post sales services to the

customers” (mean = 5.47, S.D = 1.598) are recognized importantly by respondents.

3.3.5 Supply Chain Flexibility (SCF) in Automotive Axles Ltd.

Flexibility is an internal capability that may or may not interface with the

external environment that allows a system to absorb uncertainty by functioning as a

buffer to stabilize the production process. As such, it supports the recognition’s

competitive strategy by reducing the effects of environmental uncertainty. Supply

chain flexibility refers to ability of system to respond quickly to changes to move

from one task to another quickly and as a routine procedure. As an importance of this

factor in SCM, fifteen respondents were asked to rate the present status of thirteen

items on a 7–point Likert scale ranging from “strongly disagree” to “strongly agree”

(see Table 3.14).

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Table – 3.14 : SCF in Automotive Axles Ltd.


1 Operate efficiently at different levels of output - - - 6 2 4 3 5.27 1.2232 Quickly change the quantities - - 4 8 1 2 - 4.07 .9613 Easily change the production volume - - - 5 5 3 2 5.13 1.0604 Produce a variety of products - - - 3 4 6 2 5.47 .9905 Different products in the same plants , same time - - - 6 3 4 2 5.13 1.1256 Workers perform many operations effectively - - - 1 5 8 1 5.60 .7377 Workers operate various machines - - 2 6 3 4 - 4.60 1.0568 Quickly changeover from one product to another - - - 4 6 5 - 5.07 .7999 NPD bases of customer wants. - - - 3 4 5 3 5.53 1.06010 Change design and size - - - 2 3 7 3 5.73 .96111 Market changes adaptation in short time - - - 3 7 3 2 5.27 .96112 Change logistics and transportation - - - 3 3 6 3 5.60 1.05613 Enhance equipment at shortest time - - 2 5 6 1 1 4.60 1.056

This table reveals that each item has a mean score above than midpoint four.

The top five items even have means above than five, namely are, “change design and

size” (man = 5.73, S.D= 0.961), “workers perform many operations effectively”

(mean = 5.60, S.D = 0.737), “change logistics and transportation system based on

customer wants” (mean = 5.60, S.D = 1.056), “new product development based on

customer wants” (mean = 5.53, S.D = 1.060) and “produce a variety of products”

(mean = 5.47, S.D = 0.990). It can be seen that supply chain is highly flexible in this

firm, because almost all of respondents have answered strongly agree, agree or

moderately agree.

3.3.6 Supply Chain Leanness (SCL) in Automotive Axles Ltd.

Lean is the elimination of non-value added activities in a supply chain. The

incorporation of lean allows a firm to be more cost effective and at the same time

maintain quality, lead times and service levels. As it means that leanness is an

essential factor to derive competitive advantage in every supply chain management.

Fifteen respondents were requested to rate the importance of nine attributes related to

supply chain leanness in this firm on a 7–point Likert scale ranging from “strongly


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Table – 3.15 : SCL in Automotive Axles Ltd.

S. No.

Attributes 1 2 3 4 5 6 7 Mean S.D

1 Pull production system - 3 4 4 2 2 - 3.73 1.3352 Continues production of products - - 3 4 3 3 2 4.80 1.3733 Lower setup time of production - - - - 4 7 4 6.00 .756 4 Low setup times of equipment - - 3 - 4 6 2 5.27 1.3355 Statistical techniques are used - - - 7 4 3 1 4.87 .990 6 Charts showing defects are used - - - - 5 6 4 5.93 .799 7 Fishbone diagram is used 1 - - - 3 9 2 5.60 1.4048 Conduct feasibility study - - - 3 1 7 4 5.80 1.0829 Production stages and rate of customer

demand are linked - - - 1 5 6 3 5.73 .884

This table shows that almost all items (eight out of nine) have means scores

above four. The top three items even have mean scores above five are; “looking for

lower setup time of production” (mean = 6.00, S.D = 0.756), “charts showing defects

are used” (man = 5.93, S.D = 0.799). These two items have highest mean scores that

all of respondents have answered strongly agree or agree. Next to that is “conduct

feasibility study before product lunching” (mean = 5.80, S.D = 1.083). However, “pull

production system” (mean = 3.73, S.D = 1.335) has lowest mean score, is consistent

with a low mean score of “inventory level is shared” (mean = 3.60) and a low mean

score of “production plans are shared” (mean = 3.67) in CFI components.

3.3.7 Supply Chain Agility (SCA) in Automotive Axles Ltd.

Supply chain agility represents the ability of an organization’s internal supply

chain functions to provide a strategic advantage by responding to market place

uncertainly. SCA is considered as a key element of an organization’s ability to quick

create and respond to change in order to profit in a turbulent business environment.

Therefore to know the level of SCA in this firm fifteen respondents were requested to

rate the importance of fourteen attributes on a 7–point Likert scale ranging from


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Table – 3.16 : SCA in Automotive Axles Ltd.


1 Quickly modify products - - 6 2 1 4 2 4.60 1.5952 Quickly introduce new product - - 2 5 4 4 - 4.67 1.0473 Quickly respond to changes - - - - 3 7 5 6.13 .743 4 Quickly change the delivery time - - - - 5 7 3 5.87 .743 5 Adjust to supplier delivery schedules - - - 1 7 4 3 5.60 .910 6 Quickly exchange information with parties - - - 3 2 7 3 5.67 1.0477 Ability to forecast market changes - - 4 2 2 6 1 4.87 1.4078 Rapidly reduce inventory level - 6 5 3 1 - - 3.00 1.1349 Rapidly reduce the setup cost - - 1 1 7 6 - 5.20 .862 10 Rapidly reduce the setup time - - - - 8 7 - 5.47 .516 11 Rapidly reduce NPD cycle time. - - - 2 6 7 - 5.33 .724 12 Rapidly reduce order-to- delivery cycle time. - - 3 3 6 3 - 4.60 1.05613 Rapidly adjust to the customization - - 1 2 2 8 2 5.53 1.12514 Rapidly improve manufacturing process 4 1 3 3 3 - 1 3.27 1.831

This table reveals that almost all of items (twelve out of fourteen) of SCA have mean scores above than midpoint four. The top five items even have means above five, namely are; “quickly response to the market changes” (mean = 6.13, S.D = 0.743), “quickly change the delivery time” (mean = 5.87, S.D = 0.743), “quickly exchange information with parties” (mean = 5.67, S.D = 1.047), “adjust to supplier delivery schedules” (mean = 5.60, S.D = 0.910) and “rapidly adjust to the customization” (mean = 5.53, S.D = 1.125). As it can be seen all of these variables answered by respondents agree or moderately agree. The two items that have mean scores below than four are “rapidly reduce inventory level” (mean = 3.00, S.D =- 1.134). This is consistent with a low mean score “JIT supply bases by suppliers (mean = 3.73) in SFI components and a low mean score of “pull production system” (mean = 3.73) in SCL components. Next to that is “rapidly improve manufacturing process” (mean = 3.27, S.D 1.831). 3.3.8 Supply Chain Barriers (SCBA) in Automotive Axles Ltd.

A successful implementation of supply chain management requires an ability of firm to overcome barriers might be found in between. Hence, the fifteen respondents were requested to evaluate the importance of each of fourteen identified important issues hindering SCM practices in their organization on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.17).

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Table – 3.17 : SCBA in Automotive Axles Ltd.


1 Lack of adequate information system 6 8 1 - - - - 1.67 .617 2 Lack of clear alliance guideline 5 7 - 3 - - - 2.07 1.1003 Lack of consistent operating goals 5 7 2 1 - - - 1.93 .884 4 Lack of trust and commitment 7 5 - 3 - - - 1.93 1.1635 Lack of sharing risks and rewards 5 3 2 5 - - - 2.47 1.3026 Lack of ability in managing inventories 7 2 3 3 - - - 2.13 1.2467 Lack of cooperation 3 2 3 3 4 - - 3.47 1.8858 Lack of interest to participate in SCM - 3 5 4 3 - - 3.47 1.0609 Lack of willingness to share information 1 - 8 4 2 - - 3.40 .986 10 Lack of top management support 2 5 5 2 1 - - 2.67 1.11311 Lack of facilities and equipment 2 10 1 2 - - - 2.20 .862 12 Lack of proper communication technology 3 6 4 1 1 - - 2.40 1.12113 Supplier geographical distance - - 1 2 8 2 2 5.13 1.06014 Customer geographical distance - - - 2 7 5 1 5.33 .816

This table shows only two items have mean scores above four. But the top five

most important issues hindering SCM practices in this firm namely are; “customer

geographical distance” (mean = 5.33, S.D = 0.816) “supplier geographical distance”

(mean = 3.47, S.D = 1.885) “lack of interest to participate in SCM” (mean = 3.47, S.D

= 1.060) and “lack of willingness to share information” (mean = 3.40, S.D = 0.986).

The two first barriers are consistent with a low mean score of “JIT supplies bases”

(mean = 3.73) in SFI components and low mean score of “JIT delivery to customers”

(mean = 3.87) in CFI components. The three important barriers to SCM with lowest

mean score in this firm are; “lack of adequate information system” (mean = 1.67, S.D

= 0.617), “lack of consistent operating goals’ (mean = 1.93, 0.884) and “lack of trust

and commitment” (mean = 1.93, S.D = 1.163).

3.3.9 Supply Chain Benefits (SCBE) in Automotive Axles Ltd.

In order to study supply chain benefits and performance, a basic question

needs to be addressed, which are the variables that truly represent supply chain

benefits and performance? Most of the studies on SCM benefits classified these

benefits into two main categories; financial benefits (e.g. market share, sales growth

and profitability) and non-financial benefits (e.g. customer satisfaction, productivity,

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on-time product delivery and order fulfillment lead time). Therefore, companies are

employing SCM practices in their organizations to achieve several benefits.

Therefore, fifteen important benefits are identified and the fifteen respondents are

required to rank those benefits on a 7–point Likert scale ranging from “strongly

decreased” to “strongly increased” (see Table 3.18).

Table – 3.18 : SCBE in Automotive Axles Ltd.

S.


1 Market share - - 1 - 8 2 4 5.53 1.1252 Sales growth and profitability - - - - 7 6 2 5.67 .7243 Customer satisfaction - - - - 9 2 4 5.67 .9004 Productivity - - - - 7 3 5 5.87 .9155 Defects as a % of production volume - - - - 9 5 1 5.47 .6406 Overall product quality - - - - 6 8 1 5.67 .617

7 Customer responsiveness rate in terms of design-price- quality - - - 3 3 7 2 5.53 .990

8 On-Time product delivery - - 4 1 2 6 2 5.07 1.4869 Order fulfillment lead time ( Cycle Time) - - 1 2 7 3 2 5.20 1.08210 Inventory days/cost of raw material inventory - - 4 4 4 1 2 4.53 1.35611 Inventory days/cost of finished goods - - - 4 6 3 2 5.20 1.01412 Return on delivered product or return cost - - - 5 7 2 1 4.93 .88413 Product innovation lead time - - 3 - 9 2 1 4.87 1.12514 Handle unexpected challenges - - - 3 7 4 1 5.20 .86215 Cost of purchased items - 2 - 3 8 2 - 4.53 1.187

This table reveals that his firm is performing at the satisfactory level to obtain

benefits in its SCM; because all items have mean scores above than midpoint four.

The top five items even have means above than five, namely are; “productivity”

(mean = 5.87, S.D = 0.915), “sales growth and profitability” (mean = 5.67, S.D =

0.724), “customer satisfaction” (mean = 5.67, S.D = 0.900), “overall product quality”

(mean = 5.67, S.D =0.617) and “customer responsiveness rate in terms of design-

price-quality” (mean = 5.53, S.D = 0.990).

3.4 J.K. Tyres & Industries Ltd.

J.K. organization founded over 100 years ago ranks with the elite private

groups in India in terms of assets and sales. The group’s operation can best be

characterized record of being pioneers in introducing several new products and

processes into India for the first time.

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It comprises of a number of industrial and commercial companies, exceeding 70 in number, most of them public limited, in which J.K. organization has controlling upstream ranging from 35 to 70%. In the major public limited companies, there are a large number of public shareholders aggregating over 8, 00,000.

J.K. organization has achieved a number of important technological break-through and has an impressive record of FIRSTS in India, prominent among them being: • 1944- First in India to produce Aluminum Virgin Metal from Indian Bauxite the

company was nationalized in 1973. • 1949- First in India to Manufacture Steel Engineering Files. • 1969- First to manufacture Acrylic Fibers in India. • 1977- First to produce Steel Belted Radial Tyres for passenger cars, trucks and

buses in India. • 1980- First in the world to make Steel Belted Radial Tyres for 3 wheelers. • 1984- First to produce White cement in India using dry processed technology, etc.

J.K. organization has very diversified manufacturing activities such as Synthetic Fibers like Nylon, Polyester, Acrylic, Paper & Board; Cement; Automobile Tyres & Tubes; Cotton, Woollen and Jute Textiles; Engineering; Plastic Processing ; Agrochemicals; Hybrid Seeds; Cosmetics; Audio & Video magnetic tapes; Power transmission including V-Belts and Conveyor Belting, Automotive Belts, Oil Seals; System Engineering, Industrial, Electronics and Material handling system, etc. The group is further diversifying in other fields like Petrochemicals, Steel, Drugs & Pharmaceuticals, Food & Dairy Products, Electronic, Computer Software, Power generation, Rubber hoses, etc.

The group exports number of products including Jute Textiles, Woolen Textiles, Readymade Garment, Engineering Files, Tyres and Tubes, Synthetic Fibers, Paper, Marine products, Spices, etc. J.K Tyre, Pioneer in radial technology is the India’s largest radial manufacturer. J.K Tyre manufactures truck tyres annually, at its own state- of- the- art plants. J.K Tyre painstakingly pursues the path of innovation and quality, to give customers tyres they are proud to have. J.K Tyre is the first tyre company in the world to get ISO 9001 certification for its entire operations. It is also the very first to set up state- of-the-art Research Center-HASETRI. J.K Tyre is in technical collaboration with Continental of German. Vikrant Tyres Limited set up a Bias Tire plant in city of Mysore, in state of Karnataka, in technical collaboration with Techno export Foreign Trade Company Ltd, in technical collaboration with Techno export Foreign Trade Company Ltd, Czechoslovakia, in early 80’s.

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Vikrant Tyers, in later expansions pioneered for the first time to put up new plant in another location, to manufacture All Steel Radial Truck Tires, with a capacity to produce 200,000 truck and bus tires per annum. The collaboration with Techno Export Foreign Trade Company Limited Czechoslovakia ended in Febrauary1981. On 1982 May the company did enter in to a technical collaboration agreement with AVON technical services of England for manufacturing to Radial Tyres. The company in December 1994 secured the prestigious ISO 9001 certification for design, manufacturing and sale of automobile tyres, tubes, flaps and tread rubber. It has got ISO 9000 and ISO 14001. On May 1997, was the year where the J.K Tyres Ltd. including as a strategic Alliance partner in to the company and took controlling interest in the company and Vikrant Tyres Ltd, an ISO 9002 company became its subsidiary, as a result Vikrant Tyres is know under the control of J.K.LTD., has remained a separate entity. Next important step of J.K Tyres was that JK brought on the table the technical collaboration with Continental AG, of Germany, world’s fourth largest Tyre Manufacturer. Under new collaboration, Vikrant receives the State-of-the-Art latest technology and enables Vikrant to produce good quality tires.

In the Vikrantplants, JK expects to produce both JK and Vikrant brand of tires, with introduction of Radial truck tires sizes specially manufactured to cater to North, South and Central American markets. Vision of J.K Tyre

• To be amongst the most admired companies in India committed to excellence. Mission of J.K Tyre

• To be the largest and most profitable tyre company in India. To retain No.1 position in Truck and Bus segment and be amongst top two in all other 4-wheeler tyres.

• To make Truck/Bus radial operations profitable and retain leadership in the passenger radial market.

• To be the largest Indian tyre exporter, continue to be a significant player in the world in truck and bus market.

• To be a customer obsessed company.

• To enhance value to shareholders and services to all stakeholders.

• To excel as a values driven organization.

• To be the most preferred tyre brand in India.

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This firm is following such quality programs as Quality Control Circle (QCC),

Statistical Process Control, Quality Audit, Total Productivity Maintenance (TPM),

Advance Product Quality Planning (APQP), Design of Experiment (DOE),

Benchmarking and Business Process Reengineering (BPR). The quality tools include

check list.

3.4.1 Supply Chain Orientation (SCO) in J.K Tyres & Industries Ltd.

Supply chain orientation has been emphasized by several researchers as an

essential pre-requirement to successful implementation of SCM. Fifteen respondents

were requested to rate the importance of twenty attributes related to supply chain

orientation on a 7-point Likert scale ranging from “strongly disagree” to “strongly

agree” (see Table 3.19).

Table – 3.19 : SCO in J.K Tyres & Industries Ltd.

S.


1 SCM executive - 1 - 1 4 5 4 5.60 1. 3522 SCM program management office 1 - 1 2 4 3 4 5.20 1.6993 SCM strategic road map - - - 2 6 6 1 5.40 .828 4 EX ante impact analysis - - - 5 3 5 2 5.27 1.1005 Overall SC cost reduction - - - - 6 8 1 5.67 .617 6 Overall SC time reduction - - - 1 7 6 1 5.47 .743 7 Survival is adapting to SCM - - - - 8 6 1 5.53 .640

8 Long term relationships with SC members is critical

- - - - 8 6 1 5.53 .640

9 Sharing valuable information with SC members - - 1 3 8 3 - 4.87 .834 10 Sharing risk and rewards with SC members - - 2 2 7 4 - 4.87 .990 11 Adequate education provide about SCM - 2 4 5 3 1 - 3.80 1.14612 SC members participation in important decision - - - 8 6 1 - 4.53 .640

13 Depend SC member’s support in important conditions

- - 4 6 4 1 - 4.13 .915

14 Patient with SC member’s mistakes - - 4 3 4 2 2 4.67 1.39715 SC members must work to gather for success - - - 2 8 2 3 5.40 .986 16 SC as a value added - - - - 3 10 2 5.93 .594 17 JIT philosophy - 3 - 4 6 2 - 4.27 1.33518 CPFR philosophy - - 3 3 3 6 - 4.80 1.20719 SCOR model 4 2 6 3 - - - 2.53 1.12520 Overall SC effectiveness management - - - 2 9 4 - 5.13 .640

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This table reveals that almost all items (eighteen out of twenty) of SCO have

mean score above than midpoint four. The top five items have even means above five

namely are; “SC as a value added” (mean = 5.93, S.D = 0.594), “overall SC cost

reduction” (mean = 5.67, S.D = 0.617), “SCM executive” (mean = 5.60, S.D = 1.352),

“survival is adapting to SCM” (mean = 5.53, S.D = 0.640) and “long term

relationships with SC members is critical” (mean = 5.53, S.D = 0.640). It is

interesting to note that “SCOR model” as the standard diagnostic tool to implement

supply chain management initiative has the lowest mean (mean = 2.53, S.D = 1.125).

Next to that variable “adequate education provided about SCM” (mean = 3.80, S.D =

1.146) has been recognized as another lowest mean score toward SCM in this firm.

3.4.2 Internal-Firm-Integration (IFI) in J.K Tyres & Industries Ltd.

One of the challenges facing organizations is the need to integrate internal

functions. Stevens (1989) characterizes internal firm integration as a comprehensive

integrated planning and control system that manages the flow of goods into and out of

an organization. Therefore, to identify the level of internal integration in this firm

fifteen respondents were requested to rate the importance of twelve attributes related

to this important factor on a 7–point Likert scale ranging from “strongly disagree” to

“strongly agree” (see Table 3.20).

Table – 3.20 : IFI in J.K Tyres & Industries Ltd.

S.


1 Departments connected by central IS - - - - 3 4 3 6.33 .8162 Communication routed through proper channel - - - - 5 5 5 6.00 .8453 Trust and commitment is main indicator - - - - 7 4 4 5.80 .8624 Function performance base organization - - 1 - 2 9 3 5.87 .9905 JIT philosophy is encouraged - - - 4 3 6 2 5.40 1.0566 Logistic collaborates with other functions - - - - 3 11 1 5.87 .5167 Share data and information - - - - 4 7 4 6.00 .7568 Acceptance responsibility for quality. - - - - 5 3 7 6.13 .9159 Implement TQM - 1 2 - 4 5 3 5.27 1.53410 Joint development project - 2 - - 6 6 1 5.13 1.40711 Interdepartmental exchange of idea encouraged - - 1 - 6 4 4 5.67 1.11312 Internal integrated management system - - - 2 2 5 6 6.00 1.069

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This table shows that this firm is highly integrated within its internal functions. Because the mean score of all attributes are above than midpoint four. The top five variables that have even means score above than five are, “departments are connected by central information system” (mean = 6.33, S.D = 0.816), “acceptance responsibility for quality” (mean = 613, S.D = 0.915), “share data and information” (mean = 6.00, S.D = 0.756), “communication routed through proper channel” (mean = 6.00, S.D = 0.845) and “internal management system is integrated” (mean = 6.00, S.D = 1.069). 3.4.3 Supplier-Firm-Integration (SFI) in J.K Tyres & Industries Ltd.

Frohlich and Westbrook (2001) empirically demonstrated that firms that had the highest level of integration with suppliers had the highest correlation with high levels of firm performance. To identify the level of integration of this firm with its external suppliers fifteen respondents were requested to rate the importance of twenty attributes related to this factor on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.21).

Table – 3.21 : SFI in J.K Tyres & Industries Ltd.

S.


1 Trustworthy relationship - - - 2 2 8 3 5.80 .9412 Production plans are shared - - - 2 5 6 2 5.53 .9153 Inventory level is shared - 3 2 1 8 1 - 4.13 1.356

4 Innovation and new product development involvement - - 3 4 5 1 2 4.67 1.291

5 Development of logistics process involvement 1 - 4 7 2 1 - 3.80 1.1466 JIT supplies bases - - 6 3 3 2 1 4.27 1.3357 Delivery schedule data exchange - - 1 2 6 6 - 5.13 .9158 Pull system Shipment - 1 2 10 2 - - 3.87 .7439 Suppliers inclusion in continues improvement programs - - - 7 5 2 1 4.80 .94110 Quality inspection for new products arrived 3 3 7 1 1 - - 2.60 1.12111 Maintain mutual commitment - - 2 - 7 4 2 5.27 1.16312 Engage in conflict resolution with suppliers - - - 4 5 4 2 5.27 1.03313 Share risk and reward - - 1 6 4 4 - 4.73 .96114 Share cost reduction and efficiency gains 3 1 2 1 7 1 - 3.73 1.75115 Long term alliance/ partnership - - - - 8 6 1 5.53 .64016 Compatible technologies are used - - 1 - 9 4 1 5.27 .88417 parties are patient with mistakes - 1 3 6 3 1 1 4.20 1.26518 Work with supplier as a team - - 2 2 5 5 1 5.07 1.16319 Integrated information system emphasized - - - 2 10 3 - 5.07 .59420 Maintain long term relationship - - - 2 5 7 1 5.47 .834

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This table shows that this firm has not reached a satisfactory level of supplier integration in four important variables. The variables that have means score less than midpoint four namely are; “quality inspection for new products arrived” (mean = 2.60, S.D = 1.121), “share cost reduction and efficiency gains” (mean = 3.73, S.D = 1.751), “development of logistics process involvements” (mean = 3.80, S.D = 1.146) and “pull system shipment” (mean = 3.87, S.D. = 0.743).

But the top five items that have been identified as highest means score are, “trustworthy relationship” (mean = 5.80, S.D = 0.0.941), “long term alliance / partnership” (mean = 5.53, S.D = 0.640), “production plans are shared” (mean = 5.53, S.D = 0.915), “maintain long term relationship” (mean = 5.47, S.D = 0.0.834), and “compatible technologies are used” (mean = 5.27, S.D = 0.884).

3.4.4 Customer-Firm-Integration (CFI) in J.K Tyres & Industries Ltd Integration with key customers is a cornerstone for SCM success. The twenty

variables that designed to measure the degree of integration that this firm has with its key customers were asked to fifteen respondents to rate the importance of each attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.22).

Table – 3.22 : CFI in J.K Tyres & Industries Ltd.


1 Trustworthy relationship - - - 1 2 6 6 6.13 .915 2 Mutual and long term commitment - - - 1 2 5 7 6.20 .941 3 Delivery performance feedback - - - 2 3 5 5 5.87 1.0604 Participation in new product development. 1 1 5 2 2 2 2 4.13 1.8075 Share demand information by Customers - 2 1 2 2 7 1 4.93 1.5806 Production plans are share - 3 5 5 2 - - 3.40 .986 7 Inventory level is shared 1 7 1 4 2 - - 2.93 1.2808 Continuously replenishment program - 1 1 4 5 3 1 4.73 1.2809 JIT delivery - 2 2 5 3 3 - 4.20 1.32010 Post sales services - 3 1 - 1 8 2 5.07 1.83111 Interaction with production employees - 5 5 1 3 - 1 3.40 1.50212 Interaction to set reliability and standard - 2 1 4 2 5 1 4.67 1.54313 SMU for specific customers 4 - 4 3 - 4 - 3.47 1.92214 Involvement in product customization 4 2 5 3 1 - - 2.67 1.29115 Post sales feedback in to product development 2 1 2 - 4 5 1 4.47 1.95916 As an important source of new idea 2 2 2 5 - 3 1 3.80 1.85917 Share risks and reward 5 1 3 3 2 1 - 2.93 1.71018 Looking for win-win situation - - 2 4 2 7 - 4.93 1.16319 Share cost reduction and efficiency gain - - 8 4 1 2 - 3.80 1.08220 Maintain long term relationship - - - 1 6 1 7 5.93 1.100

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This table shows that the firm’s relationships with its key customers is not as much integrated as internal and suppliers are, where, eight items out of twenty have means score below than midpoint four. These variables namely are; “involvement of customers in product customization” (mean = 2.67, S.D = 1.291), “inventory level is shared with customers” (mean = 2.93, S.D = 1.280), “share risks and rewards with customers” (mean = 2.93, S.D = 1.710), “production plans are shared” (mean = 3.40, S.D = 0.986), “interaction with production employees” (mean = 3.40, S.D = 1.502), “SMM for specific customers” (mean = 3.47, S.D = 1.922), “Share cost reduction and efficiency gain” (mean = 3.80, S.D = 1.082), and “customers are as an important source of new idea” (mean = 3.80, S.D = 1.859). The top five items that have been recognized by respondents are; “mutual and long term commitment” (mean = 6.20, S.D = 0.941), “trustworthy relationship” (mean = 6.13, S.D = 0.915), “maintain long term relationship” (mean = 5.93, S.D = 1.100), “delivery performance feedback” (mean = 5.87, S.D = 1.060) and “post sales service” (mean = 5.07, S.D = 1.831). 3.4.5 Supply Chain Flexibility (SCF) in J.K Tyres & Industries Ltd.

The supply chain flexibility concept focuses on the ability of the firm / supply chain to adapt to changes in business conditions. To demonstrate the level of SCF in this firm, fifteen respondents were asked to rate the importance of thirteen attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.23).

Table – 3.23 : SCF in J.K Tyres & Industries Ltd.

S.


1 Operate efficiently at different levels of output - - 4 4 3 3 1 4.53 1.3022 Quickly change the quantities - - 9 3 2 - 1 3.73 1.1633 Easily change the production volume - - - 4 6 4 1 5.13 .9154 Produce a variety of products - - - - 8 5 2 5.60 .7375 Different products in the same plants , same time - - 6 1 3 4 1 4.53 1.4576 Workers perform many operations effectively - 1 - 2 5 7 - 5.13 1.1257 Workers operate various machines - 1 3 5 2 4 - 4.33 1.2918 Quickly changeover from one product to another - 2 1 4 6 2 - 4.33 1.2349 NPD bases of customer wants. - - - - 7 5 3 5.73 .79910 Change design and size - - - 2 8 4 1 5.27 .79911 Market changes adaptation in short time - 1 5 3 4 1 1 4.13 1.35612 Change logistics and transportation - - - 1 6 7 1 5.53 .74313 Enhance equipment at shortest time - - 5 2 4 4 - 4.47 1.246

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This table reveals that almost all items (twelve out of thirteen) of SCF have mean scores above than four. The top three items in this category namely are; “new product development based on customer wants” (mean = 5.73, S.D = 0.799), “produce a variety of products” (mean = 5.60, S.D = 0.737) and “change logistics and transportation system based on customer wants” (mean = 5.53, S.D = 0.743). The only one items has a mean score below than four is “quickly change the quantities” (mean = 3.73, S.D = 1.163). 3.4.6 Supply Chain Leanness (SCL) in J.K Tyres & Industries Ltd.

The benefits of lean supply chain are well documented. The benefits include reduce inventories, reduce cycle time and reduce manufacturing costs. Therefore to evaluate the leanness of supply chain in this firm fifteen respondents were asked to rate the importance of nine attributes ranging from “strongly disagree” to “strongly agree” (see Table 3.24).

Table – 3.24 : SCL in J.K Tyres & Industries Ltd.

S.


1 Pull production system 3 5 4 1 2 - - 2.60 1.2982 Continues production of products - 4 - 3 3 4 1 4.40 1.7243 Lower setup time of production - - 1 1 6 5 2 5.40 1.0564 Low setup times of equipment - - 5 2 3 3 2 4.67 1.4965 Statistical techniques are used - - - 5 7 3 - 4.87 .7436 Charts showing defects are used - - - 4 4 6 1 5.27 .9617 Fishbone diagram is used - - - 4 5 4 2 5.27 1.0338 Conduct feasibility study - - - - 7 6 2 5.67 .7249 Production stages and rate of customer demand

are linked - 1 - 1 6 6 1 5.27 1.163

This table shows that almost all items (eight out of nine) have mean scores above than midpoint four. The only one item that has a mean score below four is “pull production system” (mean = 2.60, S.D = 1.280). This item is consistent with low mean score of “pull system shipment” (mean = 3.87) in SFI components.

The top five variables of SCL in this firm namely are; “conduct feasibility study” (mean = 5.67, S.D = 0.724), “lower set up time of production” (mean = 5.40, S.D = 1.056), “charts showing defects are used” (mean = 5.27, S.D = 0.0.961), “fishbone diagram is used” (mean = 5.27, S.D = 1.033) and “production stages and rate of customer demand are linked” (mean = 5.27, S.D = 1.163).

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3.4.7 Supply Chain Agility (SCA) in J.K. Tyres & Industries Ltd.

Agility might be defined as the ability of an organization to respond rapidly to

changes in demand, both in terms of volume and variety. Agility is the ability to

successfully market low-cost, high quality products with short lead times and in

varying volumes that provide enhanced value to customers through customization. It

was asked from fifteen respondents to rate the importance of fourteen attributes

related to SCA on a 7-point Likert scale ranging from “strongly disagree” to “strongly


Table – 3.25 : SCA in J.K Tyres & Industries Ltd.

S.


1 Quickly modify products - - 5 1 4 5 - 4.60 1.2982 Quickly introduce new product - - 5 4 5 1 - 4.13 .990 3 Quickly respond to changes - - - 4 7 4 - 5.00 .756 4 Quickly change the delivery time - - - 5 6 4 - 4.93 .799 5 Adjust to supplier delivery schedules - - - 5 5 5 - 5.00 .845 6 Quickly exchange information with parties - - - 3 5 7 - 5.27 .799 7 Ability to forecast market changes - - 4 4 4 3 - 4.40 1.1218 Rapidly reduce inventory level - 5 2 6 2 - - 3.33 1.1139 Rapidly reduce the setup cost - 1 - 3 8 3 - 4.80 1.01410 Rapidly reduce the setup time - 1 3 1 6 4 - 4.60 1.29811 Rapidly reduce NPD cycle time. - 1 - 4 6 4 - 4.80 1.08212 Rapidly reduce order-to- delivery cycle time. - 1 4 4 3 3 - 4.20 1.26513 Rapidly adjust to the customization - - - 3 5 7 - 5.27 .799 14 Rapidly improve manufacturing process 1 4 6 - 3 1 - 3.20 1.424

This table reveals that almost all of items (twelve out of fourteen) of SCA

have means scores above than four. The top four variables of SCA in this firm namely

are, “rapidly adjust to the customization” (mean = 5.27, S.D = 0.799), “quickly

exchange information with parties” (mean = 5.27, S.D = 0.799), “quickly adjust to

supplier delivery schedules” (mean = 5.00, S.D = 0.845) and “quickly respond to

changes” (mean = 5.00, S.D = 0.756). The two items that have mean scores below

than four are; “rapidly improve manufacturing process” (mean = 3.20, S.D = 1.424)

and “rapidly reduce inventory level” (mean = 3.33, S.D = 1.113).

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3.4.8 Supply Chain Barriers (SCBA) in J.K Tyres & Industries Ltd.

To identify the main barriers to SCM in this firm, fifteen respondents were

requested to rate the importance of fourteen identified issues hindering SCM practices

on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see

Table 3.26).

Table – 3.26 : SCBA in J.K Tyres & Industries Ltd.

S.


1 Lack of adequate information system 4 10 1 - - - - 1.80 .561 2 Lack of clear alliance guideline 1 9 - 3 2 - 2.73 1.2803 Lack of consistent operating goals 1 9 5 - - - - 2.27 .594 4 Lack of trust and commitment 1 8 5 1 - - - 2.40 .737 5 Lack of sharing risks and rewards 3 1 1 6 4 - - 3.47 1.5066 Lack of ability in managing inventories - 9 1 3 2 - - 2.87 1.1877 Lack of cooperation - 6 3 1 1 4 - 3.60 1.7248 Lack of interest to participate in SCM - 4 4 3 4 - - 3.47 1.1879 Lack of willingness to share information - 1 6 5 2 - 2 3.80 1.20710 Lack of top management support - 4 5 5 1 - - 3.33 1.29111 Lack of facilities and equipment 1 5 9 - - - - 2.53 .640 12 Lack of proper communication technology 5 5 4 - 1 - - 2.13 1.12513 Supplier geographical distance - - - 3 7 4 1 5.20 .862 14 Customer geographical distance - - 2 6 4 1 2 4.67 1.234

This table shows that, only two variables have been identified by respondents as

main important barriers to SCM in this firm. These two variables namely are, “supplier

geographical distance” (mean = 5.20, S.D = 0.862) and “customer geographical

distance” (mean = 4.67, S.D = 1.234). These barriers are consistent with low mean

score of “pull production system” (mean = 2.60) in SCL components and “rapidly

reduce inventory level” (mean = 3.3) in SCA components. The three least important

barriers to SCM of this firm are, “lack of adequate information system” (mean = 1.80,

S.D = 0.561), “lack of proper communication technology” (mean = 2.13, S.D = 1.125)

and “lack of consistent operating goals” (mean = 2.27, S.D = 0.594).

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3.4.9 Supply Chain Benefits (SCBE) in J.K Tyres & Industries Ltd.

To demonstrate the major benefits of SCM in this firm, fifteen respondents

were asked to rate the importance of fifteen attributes on a 7-point Likert scale

ranging from “strongly decreased” to “strongly increased” (see Table 3.27).

Table – 3.27 : SCBE in J.K Tyres & Industries Ltd.

S.


1 Market share - - - 1 8 6 - 5.33 .6172 Sales growth and profitability - - - - 6 9 - 5.60 .5073 Customer satisfaction - - - 1 6 8 - 5.47 .6404 Productivity - - 1 - 7 6 1 5.40 .9105 Defects as a % of production volume - - 1 3 6 4 1 5.07 1.0336 Overall product quality - - 1 4 6 4 - 4.87 .9157 Customer responsiveness rate in terms of

design-price- quality - - 2 6 2 5 - 4.67 1.113

8 On-Time product delivery 1 1 5 2 3 2 1 4.00 1.6489 Order fulfillment lead time ( Cycle Time) - - 1 3 10 - 1 4.80 .86210 Inventory days/cost of raw material inventory - - 4 3 7 1 - 4.33 .97611 Inventory days/cost of finished goods - - 2 4 4 4 1 4.87 1.18712 Return on delivered product or return cost - - - 4 8 3 - 4.93 .70413 Product innovation lead time - - - 8 6 1 - 4.53 .64014 Handle unexpected challenges - 2 2 6 4 1 - 4.00 1.13415 Cost of purchased items - 2 2 6 4 1 - 4.93 .884

This table shows that this firm is performing at satisfactory level to obtain

benefits in its SCM, because all of items have mean scores above than four. The top

five benefits of this SCM namely are, “sales and profitability” (mean = 5.60, S.D =

0.507), “customer satisfaction” (mean = 5.47, S.D = 0.640), “productivity” (mean =

5.40, S.D = 0.910), “market share” (mean = 5.33, S.D = 0.617) and “defects as a % of

production volume” (mean = 5.07, S.D = 1.033).

3.5 Larsen & Toubro Ltd.

Larsen & Toubro Limited (L&T) is a technology, engineering, construction

and manufacturing company. It is one of the largest and most respected companies in

India's private sector. More than seven decades of a strong, customer-focused

105

approach and the continuous quest for world-class quality have enabled it to attain

and sustain leadership in all its major lines of business. L&T has an international

presence with a global spread of offices. A thrust on international business has seen

overseas earnings grow significantly. It continues to grow its overseas manufacturing

footprint, with facilities in China and the Gulf region. The company's businesses are

supported by a wide marketing and distribution network, and have established a

reputation for strong customer support. L&T believes that progress must be achieved

in harmony with the environment. A commitment to community welfare and

environmental protection are an integral part of the corporate vision.

Electrical & Electronics Division (EBG) is one of the core businesses of Larsen

& Toubro Limited (L&T)-India’s largest engineering and construction conglomerate.

The division has operations at different locations in India (two in Mumbai and one

each in Ahmednagar, Mysore, Faridabad and Coimbatore) and one unit for

manufacturing operations in China. Another manufacturing facility is soon going to

come up in Saudi Arabia.EBG has a comprehensive quality, environment and safety

management system. The quality management system for design & development,

production, sales, marketing and servicing has received ISO 9001:2000 certification

from BVQI.

L&T is India's leading manufacturer of high quality electronic energy meters

and Metering and Protection Systems (MPS). It is the market leader in electronic

programmable Trivector Meters that are critical for all industrial and power utilities.

From the industrial segment, the metering solutions extend to the domestic energy

metering, with the availability of static Single Phase and Three Phase energy meters.

L&T undertakes design, installation and commissioning of automatic meter reading

solutions that involve networking of meters, collecting data from them and

transporting the data over suitable cost-effective media to a central station for display,

analysis and report generation.

106

L&T's manufacturing facility in Mysore has high class testing facilities with

NABL accreditation. L&T meters are high on quality, value for money products that

meet the needs of different customers like electrical utilities, industries and

commercial establishments including domestic consumers. These meters work in

extreme climates. In the international market, L&T meters have been exported to

various countries across South East Asia, Middle East and Africa. L&T is now

making a foray into the European market. L&T offers total solutions for protection in

all the three segments of power systems - generation, transmission and distribution.

Designed and developed by in-house R&D, the range includes electronic trivector

meters, single and three-phase energy meters, ABT meters intelligent panel meters,

demand controllers, smart card prepaid meters & GSM Modem.

An innovative addition to the family of protective relays is the state-of-the-art

releases for Air Circuit Breakers, offering better features in the form of reliable

protection and co-ordination in low-tension feeders. It manufactures single-phase and

three-phase over-current / earth fault relays, voltage relays, motor protection relays,

auto re-close relays, and intelligent power factor controllers that help in maintaining

the plant PF at an optimum value and contribute to improving distribution efficiency.

L&T’s SCM is a broad network that encompasses several distributers from Indian

market and some manufactures from different parts of the world, especially from

Singapore and Germany. L&T distributes 70% of its products through the

Chamundeswari Electricity Supply Company (CHESCOM) and Tamil Nadu

Electricity Board (TNEB) which are monitoring the disruption of electrical

components market (see Figure 3.3).

107

Figure – 3.3 : SCM of Larsen & Toubro Limited (MPS Division)

Cash Flow

Source: SC Managers Interviewed

3.5.1 Supply Chain Orientation (SCO) in Larsen & Tubro Ltd.

Today’s marketplace is characterized by high level of turbulence and

uncertainty. Organizations are also facing increasing competitive pressures with

respect to price, delivery, quality, variety and innovation for products and services.

Proper recognition of different supply chain practices can be considered as first step

to these challenches. This recognition is called supply chain orientation. Therefore, to

identify the level of SCO in this firm, fifteen respondents were presented a

questionnaire to rate the importance of twenty attributes on a 7-point Likert scale


L&T (Mysore)

MPS

SBU

Distributors (Electronic Components)

Manufacturers (Customer made items)

Assembly Suppliers Others

Panel Builders

Utilities: like CHESCOM,

TNEB etc,

Flow of Goods

Flow of Informat ion

Ret

aile

rs

108

Table – 3.28 : SCO in Larsen & Tubro Ltd.


1 SCM executive - - - - - 7 8 6.53 .516 2 SCM program management office - - - - 5 6 4 5.93 .799 3 SCM strategic road map - - - - 5 8 2 5.80 .676 4 EX ante impact analysis - - - 2 7 4 2 5.40 .910 5 Overall SC cost reduction - - - - 3 8 2 6.07 .704 6 Overall SC time reduction - - 2 3 3 4 3 5.20 1.3737 Survival is adapting to SCM - - - 2 3 2 8 6.07 1.163

8 Long term relationships with SC members is critical 1 - - 2 - 9 3 5.60 1.549

9 Sharing valuable information with SC members - - 4 2 6 2 1 4.60 1.242

10 Sharing risk and rewards with SC members - - - 4 6 4 1 5.13 .915

11 Adequate education provide about SCM - - 1 9 5 - - 4.27 .594

12 SC members participation in important decision - 3 1 6 4 1 - 3.93 1.223

13 Depend SC member’s support in important conditions - 4 4 1 2 4 - 3.87 1.642

14 Patient with SC member’s mistakes - 6 3 1 2 2 1 3.60 1.765

15 SC members must work to gather for success - - 1 - 3 3 8 6.13 1.187

16 SC as a value added - - - 2 2 6 5 5.93 1.03317 JIT philosophy 1 2 2 5 4 1 - 3.80 1.37318 CPFR philosophy - - 3 1 6 5 - 4.87 1.12519 SCOR model 2 3 10 - - - - 2.53 .743 20 Overall SC effectiveness management 1 - 1 - 6 3 4 5.33 1.633

This table reveals that five items out of twenty have means score below than midpoint four. It means that respondents have no positive recognition bout these five attributes in their firm. These five items namely are, “SCOR model” (mean = 2.53, S.D = 0.743), “patient with SC member’s mistakes” (mean = 3.60, S.D = 1.756), “JIT philosophy” (mean = 3.80, S.D = 1.373), “depends on SC members support in important conditions” (mean = 3.87, S.D = 1.642) and “SC members participation in important decision” (mean = 3.93, S.D = 1.223). It is interesting to note that “SCOR model” as the standard diagnostic tool to implement SCM initiative has the lowest mean score (mean = 2.53).

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The top five items related to SCO in this firm even have means above five namely are; “SCM executive” (mean = 6.53, S.D = 0.516), “SC members must work to gather for success” (mean = 6.13, S.D = 1.187), “overall SC cost reduction” (mean = 6.07, S.D = 0.704), “survival is adapting to SCM” (mean = 6.07, S.D = 1.163) and “SCM program management office” (mean = 5.93, S.D = 0.799). 3.5.2 Internal-Firm-Integration (IFI) in Larsen & Tubro Ltd.

Internal integration is an important part of supply chain integration that since the many functions that make up an organization are as integral part of the supply chain as they are the customers and suppliers of the firm. Hence, fifteen respondents were asked to rate the importance of twelve attribute related to the internal firm integration on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.29).

Table – 3.29 : IFI in Larsen & Tubro Ltd.


1 Departments connected by central IS - - 2 - 3 3 7 5.87 1.407

2 Communication routed through proper channel - - 2 - - 8 5 5.93 1.280

3 Trust and commitment is main indicator - - - - 1 7 7 6.40 .632 4 Function performance base organization - - - - 2 8 5 6.20 .676 5 JIT philosophy is encouraged - - 1 3 3 2 6 5.60 1.404

6 Logistic collaborates with other functions - - - 2 4 3 6 5.87 1.125

7 Share data and information - - 1 - 3 7 4 5.87 1.0608 Acceptance responsibility for quality. - - 1 - 3 3 8 6.13 1.1879 Implement TQM - - 2 - 4 4 5 5.67 1.34510 Joint development project - - - 2 1 7 5 6.00 1.000

11 Interdepartmental exchange of idea encouraged - - - - 2 9 4 6.13 .640

12 Internal integrated management system - - - 1 4 5 5 5.93 .961

This table shows that this firm is internally high integrated, because the means score of all attributes are above than four. The top five variables that have even means score above than five namely are, “trust and commitment is main indicator” (mean = 6.40, S.D = 0.632), “function performance base organization” (mean = 6.20, S.D = 0.676), “joint development project” (mean = 6.00, S.D = 1.00) “acceptance responsibility for quality” (mean = 6.13, S.D = 1.187) and “communication routed through proper channel” (mean = 5.93, S.D = 1.280).

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3.5.3 Supplier–Firm–Integration (SFI) in Larsen & Tubro Ltd.

Supplier integration is accepted to be a viable approach for improving

business performance in highly competitive markets. To evaluate the level of

integration of this firm with its external suppliers, fifteen respondents were requested

to rate the importance of twenty attributes related to this factor on a 7-point Likert


Table – 3.30 : SFI in Larsen & Tubro Ltd.

S.


1 Trustworthy relationship - - 1 1 2 3 8 6.07 1.2802 Production plans are shared 1 - - 2 3 5 4 5.47 1.5983 Inventory level is shared - 2 2 2 2 3 4 4.93 1.831

4 Innovation and new product development involvement - - 1 - 2 6 4 5.67 1.234

5 Development of logistics process involvement - - - 5 2 4 4 5.47 1.246

6 JIT supplies bases - 2 4 3 4 2 - 4.00 1.3097 Delivery schedule data exchange - 2 2 2 4 4 1 4.60 1.5498 Pull system Shipment - - 5 7 3 - - 3.87 .743

9 Suppliers inclusion in continues improvement programs - - 3 2 4 5 1 4.93 1.280

10 Quality inspection for new products arrived - 2 5 5 1 2 - 3.73 1.223

11 Maintain mutual commitment - - 2 2 1 7 3 5.47 1.35612 Engage in conflict resolution with suppliers - - 2 1 5 4 3 5.33 1.29113 Share risk and reward - - 3 2 6 3 1 4.80 1.20714 Share cost reduction and efficiency gains 3 - 4 2 3 3 - 3.73 1.79215 Long term alliance/ partnership - - 1 2 6 3 3 5.33 1.17516 Compatible technologies are used - - 1 1 5 7 1 5.40 .986 17 parties are patient with mistakes 1 4 1 5 1 3 - 3.67 1.63318 Work with supplier as a team - 1 - 5 - 5 4 5.33 1.543

19 Integrated information system emphasized - - - 3 5 4 3 5.47 1.600

20 Maintain long term relationship - - - 3 3 3 6 5.80 1.207

This table reveals that this firm has not reached a satisfactory level of supplier integration in four important variables. The variables that have means score less than midpoint four namely are, “parties are patient with their mistakes” (mean = 3.67, S.D = 1.633), “quality inspection for new products arrived” (mean = 3.73, S.D = 1.223), “share cost reduction and efficiency gains” (mean = 3.73, S.D = 1.792) and “pull

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system shipment” (mean = 3.87, S.D = 0.743). But the top five items that have been identified by respondents as highest means score are, “trustworthy relationship” (mean = 6.07, S.D = 1.280), “maintain long term relationship” (mean = 5.80, S.D = 1.207), “innovation and new product development involvement” (mean = 5.67, S.D = 1.234), “development of logistics process involvement” (mean = 5.47, S.D = 1.246) and “maintain mutual commitment” (mean = 5.47, S.D = 1.356). 3.5.4 Customer-Firm-Integration (CFI) in Larsen & Tubro Ltd.

Customer integration has been emphasized by several literatures for its important consequences. It can be used as a tool to changeover an arm-length relationship with customers to the strategic partnership. The twenty attributes designed to measure the degree of integration of this firm with its key customers were asked from fifteen respondents to rate the importance of each attribute on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.31).

Table – 3.31 : CFI in Larsen & Tubro Ltd.


1 Trustworthy relationship - - - 1 3 2 9 6.27 1.0332 Mutual and long term commitment - - - 8 4 3 - 4.60 1.3733 Delivery performance feedback - - - 2 4 3 6 5.87 1.1254 Participation in new product development. 1 5 6 3 - - - 3.05 1.2655 Share demand information by Customers - - 1 4 4 4 2 5.13 1.1876 Production plans are share - 4 5 3 2 1 - 3.40 1.2427 Inventory level is shared 1 1 2 5 1 4 1 4.33 1.6768 Continuously replenishment program - 1 2 5 5 2 - 4.33 1.1139 JIT delivery - 3 4 8 - - - 3.07 1.33510 Post sales services - 3 - 2 3 6 1 4.80 1.65611 Interaction with production employees - 1 6 3 5 - - 3.55 1.79912 Interaction to set reliability and standard - 2 1 5 4 1 2 4.47 1.50613 SMU for specific customers 3 - 2 4 4 2 - 3.80 1.69914 Involvement in product customization 3 4 1 4 2 1 - 3.07 1.62415 Post sales feedback in to product development 3 - - 3 3 6 - 4.40 1.92016 As an important source of new idea 3 1 3 5 1 1 1 3.47 1.76717 Share risks and reward 4 - 5 6 - - - 2.87 1.24618 Looking for win-win situation - - 3 1 4 5 2 5.13 1.35619 Share cost reduction and efficiency gain 1 1 3 6 2 2 - 3.87 1.35620 Maintain long term relationship - - 2 1 2 5 5 5.67 1.397

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This table shows that the firm’s relationship with its key customers is not as

much integrated as internal and suppliers are, where nine items out of twenty have

means score below than midpoint four. These variables namely are; “share risks and

rewards” (mean = 2.87, S.D = 1.246), “customer participation in new product

development” (mean = 3.05, S.D = 1.265), “JIT delivery” (mean = 3.07, S.D = 1.335),

“involvement in product customization” (mean = 3.07, 1.624), “production plans are

shared” (mean = 3.40, 1.242), “customers are as an important source of new idea”

(mean = 3.47, S.D = 1.767), “interaction with production employees” (mean = 3.55,

S.D = 1.799), “SMU for specific customers” (mean = 3.80, S.D = 1.699) and “share

cost reduction and efficiency gain” (mean = 3.87, S.D = 1.356). The top three items

that have been recognized by respondents are; “trustworthy relationship” (mean =

6.27, S.D = 1.033), “mutual and long term commitment” (mean = 5.80, S.D = 1.373)

and maintain long term relationship (mean = 5.67, S.D = 1.397).

3.5.5 Supply Chain Flexibility (SCF) in Larsen & Tubro Ltd.

Supply chain flexibility refers to the ability of the supply chain to adapt to

internal or external influences. As a necessity of this important factor in SCM, fifteen

respondents were asked to rate the importance of thirteen attributes on a 7-point


Table – 3.32 : SCF in Larsen & Tubro Ltd.

S.


1 Operate efficiently at different levels of output - - 4 - 2 6 3 5.27 1.5342 Quickly change the quantities - - 6 - 2 6 1 4.73 1.5343 Easily change the production volume - - - 3 9 2 1 5.07 .7994 Produce a variety of products - - - 2 6 7 - 5.33 .7245 Different products in the same plants , same time - 2 4 - 5 4 - 4.33 1.4966 Workers perform many operations effectively - 2 - 2 3 8 - 5.00 1.4147 Workers operate various machines - - 1 2 8 3 1 5.07 .9618 Quickly changeover from one product to another - 4 2 1 6 2 - 4.00 1.5129 NPD based on customer wants. - 1 10 2 2 - - 3.20 1.40410 Change design and size - 3 - 2 3 4 3 4.93 1.79211 Market changes adaptation in short time - 1 - 7 5 1 1 4.53 1.12512 Change logistics and transportation - - 1 2 3 7 2 5.47 1.12513 Enhance equipment at shortest time - 6 1 2 5 1 - 3.60 1.502

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This table reveals that two out of thirteen items of SCF have mean scores

below than midpoint four. These two variables namely are; “new product

development based on customer wants” (mean = 3.20, S.D = 1.404) and “enhance

equipment at short time” (mean = 3.60, S.D = 1.502). This table also shows the top

three items that even have mean scores above then five. These are; “change logistics

and transportation system based on customer wants” (mean = 5.47, S.D = 1.125),

“product a variety of products” (mean = 5.33, S.D = 0.724) and “operate efficiently at

different levels of output” (mean = 5.27, S.D = 1.534).

3.5.6 Supply Chain Leanness (SCL) in Larsen & Tubro Ltd.

Many firms have reduced their levels of inventory to eliminate of waste to less

than a day. For example Dell computer has reduced its inventory levels to just 3 to 5

hours. Therefore to identify the level of SCL in this firm, fifteen respondents were

requested to rate the importance of nine different attributes on a 7-point Likert scale


Table – 3.33 : SCL in Larsen & Tubro Ltd.

S.


1 Operate efficiently at different levels of output - - 4 - 2 6 3 5.27 1.5342 Quickly change the quantities - - 6 - 2 6 1 4.73 1.5343 Easily change the production volume - - - 3 9 2 1 5.07 .7994 Produce a variety of products - - - 2 6 7 - 5.33 .7245 Different products in the same plants , same time - 2 4 - 5 4 - 4.33 1.4966 Workers perform many operations effectively - 2 - 2 3 8 - 5.00 1.4147 Workers operate various machines - - 1 2 8 3 1 5.07 .9618 Quickly changeover from one product to another - 4 2 1 6 2 - 4.00 1.5129 NPD based on customer wants. - 1 10 2 2 - - 3.20 1.40410 Change design and size - 3 - 2 3 4 3 4.93 1.79211 Market changes adaptation in short time - 1 - 7 5 1 1 4.53 1.12512 Change logistics and transportation - - 1 2 3 7 2 5.47 1.12513 Enhance equipment at shortest time - 6 1 2 5 1 - 3.60 1.502

This table shows that almost all items (eight out of nine) of SCL have mean score above than midpoint four. The only one variable has a low mean namely is, “pull production system” (mean = 2.33, S.D = 0.816). This item is consistent with a low mean score of “pull system shipment” (mean = 3.87) in SFI components and also “JIT delivery” (mean = 3.07) in CFI components. The top three items of SCL that

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have been recognized by respondents are; “production stages and rate of customer demand are linked” (mean = 5.60, S.D = 1.056), “fishbone diagram is used” (mean = 5.47, S.D = 0.834) and “conduct feasibility study” (mean = 5.33, S.D = 0.617). 3.5.7 Supply Chain Agility (SCA) in Larsen & Tubro Ltd.

One of the keys to success in today’s markets is customer responsiveness. Agility is all about creating that responsiveness and mastering the uncertainty. It was asked from fifteen respondents to rate the importance of fourteen attributes related to SCA on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.34).

Table – 3.34 : SCA in Larsen & Tubro Ltd.


1 Quickly modify products - - 4 1 3 6 1 4.93 1.3872 Quickly introduce new product - 2 - 5 6 2 - 4.40 1.1833 Quickly respond to changes - 4 - 2 3 6 - 4.47 1.6854 Quickly change the delivery time - 4 - 5 4 2 - 4.00 1.4145 Adjust to supplier delivery schedules - - - 4 2 4 5 5.67 1.2346 Quickly exchange information with parties - - - 4 5 3 3 5.33 1.1137 Ability to forecast market changes - - 4 3 3 5 - 4.60 1.2428 Rapidly reduce inventory level 2 2 4 5 1 1 - 3.27 1.3879 Rapidly reduce the setup cost - - 4 3 4 3 1 4.60 1.29810 Rapidly reduce the setup time - - 2 6 4 3 - 4.53 .990 11 Rapidly reduce NPD cycle time. - - 2 4 6 3 - 4.67 .976 12 Rapidly reduce order-to- delivery cycle time. - - 6 5 2 2 - 4.00 1.06913 Rapidly adjust to the customization - - - 7 6 2 - 4.67 .724 14 Rapidly improve manufacturing process - 3 5 4 2 1 - 3.53 1.187

This tables shows that almost all of items (twelve out of fourteen) of SCA

have mean score above than midpoint four. The top three items of SCA in this firm

namely are; “adjust to supplier delivery schedules” (mean = 5.67, S.D = 1.234),

“quickly exchange information with parties” (mean = 5.33, S.D = 1.113) and “quickly

modify products” (mean = 4.93, S.D = 1.387). The two variables that have means

score below than four are; “rapidly reduce inventory level” (mean = 3.27, S.D =

1387). This is consistent with a low mean score of “pull system shipment” (mean =

3.87) in SFI components and also with a low mean score of “JIT delivery to the

customers” (mean = 3.07) in CFI components. Next to that is “rapidly improve

manufacturing process” (mean = 3.53, S.D = 1.187).

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3.5.8 Supply Chain Barriers (SCBA) in Larsen & Tubro Ltd.

Identification of SC barriers is the first step toward successful SCM.

Therefore, to know the most important barriers to SCM in this firm fifteen

respondents were requested to rate the importance of fourteen attributes on a 7-point


Table – 3.35 : SCBA in Larsen & Tubro Ltd.

S.


1 Lack of adequate information system 1 7 3 4 - - - 2.67 .976 2 Lack of clear alliance guideline 1 4 4 4 2 - - 3.13 1.1873 Lack of consistent operating goals - 6 4 2 3 - - 3.13 1.1874 Lack of trust and commitment 3 9 - - 2 1 - 2.47 1.5525 Lack of sharing risks and rewards 2 1 1 4 6 - 1 4.00 1.6486 Lack of ability in managing inventories - 4 3 6 - - 2 3.67 1.5897 Lack of cooperation - 4 1 2 6 - 2 4.20 1.6998 Lack of interest to participate in SCM - 2 3 1 3 5 1 4.60 1.6399 Lack of willingness to share information 1 1 2 2 5 1 3 4.60 1.80510 Lack of top management support 1 5 1 4 1 3 - 3.53 1.68511 Lack of facilities and equipment - 6 1 7 1 - - 3.20 1.08212 Lack of proper communication technology - 8 2 2 1 2 - 3.13 1.50613 Supplier geographical distance - 1 1 2 3 4 4 5.33 1.54314 Customer geographical distance - 2 5 2 3 1 1 4.13 1.642

This table shows that, six important issues (out of fourteen) have been

recognized by respondents as main barriers to implementation of SCM successfully in

this firm. These six items namely are; “supplier geographical distance” (mean = 5.33,

S.D = 1.543), “lack of interest to participate in SCM” (mean = 4.60, S.D = 1.639),

“lack of willingness to share information” (mean = 4.60, S.D = 1.805), “lack of

cooperation” (mean = 4.20, S.D = 1.699), “lack of sharing risks and rewards” (mean =

4.00, S.D = 1.648) and “customer geographical distance” (mean = 4.13, S.D = 1.642).

It is interesting to note that all of mentioned barriers are consistent with low means

score variables in supplier and customer integration. For example, “supplier and

customer geographical distance” are consistent with a low mean of “pull system

shipment” (mean = 3.87) in SFI components and “JIT delivery to customer” (mean =

3.07) in CFI components. And also items “lack of interest to participate in SCM” and

“lack of sharing risks and rewards” are consistent with low mean score of

“participation in new product development” (mean = 3.05) and “share risks and

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rewards” (mean = 2.87) both in CFI components respectively. The four least

important barriers to SCM of this firm namely are, “lack of trust and commitment”

(mean = 2.47, S.D = 1.552), “lack of adequate information system” (mean = 2.67, S.D

= 0.975), “lack of clear alliance guideline” (mean = 3.13, S.D = 1.187) and “lack of

consistent operating goals” (mean = 3.13, S.D = 1.187).

3.5.9 Supply Chain Benefits (SCBE) in Larsen & Tubro Ltd.

To identify the obtained benefits of SCM in this firm, fifteen respondents were

asked to rate the importance of fifteen attributed on a 7-point Likert scale ranging

from “strongly decreased” to “strongly increased” (see Table 3.36).

Table – 3.36 : SCBE in Larsen & Tubro Ltd.

S.


1 Market share - - 3 - 3 4 5 5.53 1.5062 Sales growth and profitability - 2 - - 4 2 7 5.67 1.7183 Customer satisfaction - - - 2 5 3 5 5.73 1.1004 Productivity - - 3 - 2 6 4 5.53 1.4575 Defects as a % of production volume - - - 3 9 3 - 5.00 .6556 Overall product quality - - - - 7 5 3 5.73 .799

7 Customer responsiveness rate in terms of design-price- quality - - 1 4 3 5 2 5.20 1.207

8 On-Time product delivery - - 4 4 3 3 1 4.53 1.3029 Order fulfillment lead time ( Cycle Time) - - - 3 9 3 - 5.00 .65510 Inventory days/cost of raw material inventory - - 4 4 3 4 - 4.47 1.18711 Inventory days/cost of finished goods - - 1 5 8 1 - 4.60 .73712 Return on delivered product or return cost - - - 8 7 - - 4.47 .51613 Product innovation lead time - - - 5 4 5 1 5.13 .99014 Handle unexpected challenges - - - 1 10 3 1 5.27 .70415 Cost of purchased items - - 1 2 6 5 1 5.20 1.014

This table shows that, this firm is performing at satisfactory level of obtaining

benefits through its SCM, because all of items have means score above than midpoint

four. The top five benefits of this SCM namely are; “over all product quality” (mean =

5.73, S.D = 0.799), “customer satisfaction” (mean = 5.73, S.D = 1.100), “sales growth

and profitability” (mean = 5.53, S.D = 1.457) and “market share” (mean = 5.53, S.D =

1.506).

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3.6 AT&S India Pvt. Ltd.

AT&S India Pvt. Ltd started its operations in 1989 as a business division of Indian Aluminum Co Ltd., which was one of the premier aluminum manufacturers in the country. It was put up in Nanjangud, a rapidly developing industrial town in Mysore District in Karnataka State. The Electronics Division was established to manufacture Professional Grade Printed Circuit Board (electronic passive component) with an installed capacity of 30,000 sq.mtrs. Per annum, which has since been increased to 230,000 sq. mtrs.

Effective 1st April 1996, the electronics division of the company became an

independent company in the name of Indal Electronics Limited. INDAL divested its entire stake in January, 1999 to Austria Technology & System technique AG, Austria, one of the largest manufacturers of Printed Circuit Boards in Europe. Thus it became a 100% subsidiary of AT&S Austria and the name was changed to AT&S India Ltd. The name was again changed to AT&S India Pvt. Ltd in April, 2003 to reflect the true characteristics of its corporate identity.

The company produces professional grade printed circuit boards. Printed Circuit Board (PCB) is a medium to provide inter-connectivity for electronic components. PCB is an organic carrier on which active and passive electronic components are fitted. It is made of alternate layers of pre-pregs (which is an inert material and bad conductor of electricity) and copper foil which is converted into tracks through which connection is established. The company manufacturers PCBs up to 22 layers though layers up to 12 are quit common.

The company serves the professional segments of electronics industry like telecommunication, computers, and automotive, industrial and medical electronics. In the Indian market, it became the market leader in 1992 and ever since has retained that position. Among the major multinational customers who have very promising future in Indian telecommunication industry, the company enjoys sole-vendor relationship. The Company saw great potential for export market and started concentrating on the same and as a result of its efforts its exports revenue now accounts for more than 80% of its annual sales. The Company enjoys customer base in USA, Australia, Singapore, Malaysia, UK, Germany, Austria and other European countries. Its main market is in the telecom sector and would continue to focus on this sector. Some of the key global customers are Siemens, Hella, GE, Aristrocrat, Nokia,

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Motorola etc., and few key Indian customers are Alcatel, ITI, BHEL, L&T, and Lucent Technology. Therefore we can explain AT&S at a glance as flow:

• Europe.s largest supplier of Printed Circuit Boards (PCB)

• One of world’s top 3 producer of HDI pcb.s (for mobile phones)

• Supplier for 40% of European and nearly 15% world wide mobile phones

• Single constantly profitable PCB supplier during the last years

• 4,300 employees in Austria, India and China

• Second Plant in Shanghai under construction. ramp-up in Aug. 2006

AT&S India is working under an integrated supply chain management system with its upstream supplier and downstream customers in all over the world (see Figure 3. 4). As one supply chain executive of AT&S I interviewed said about success of their SCM:

…the success of our customers is the basis for our supply chain success. It is our prime objective to support our customers globally in their efforts towards success as the best in class partner through: technology leadership and quantitative growth, innovatory solutions in the field of electro- mechanical connecting technologies and maximum quality and total cost reduction.

Figure – 3.4 : SCM of AT&S India Pvt. Ltd.

Source: www.ats.net

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3.6.1 Supply Chain Orientation (SCO) in AT&S India Pvt. Ltd.

An organization is said to have a successful supply chain management if its

employees demonstrate a commitment to implement different practices of SCM. This

commitment creates through SCO. Fifteen respondents were asked to rate the

importance of twenty attributes related to SCO on a 7-point Likert scale ranging from


Table – 3.37 : SCO in AT&S India Pvt. Ltd.

S.


1 SCM executive - - - - 4 6 5 6.07 .7992 SCM program management office - - - 2 7 4 2 5.40 .9103 SCM strategic road map - - - 2 5 7 1 5.47 .8344 EX ante impact analysis - - - 7 4 4 - 4.80 .8625 Overall SC cost reduction - - - - 7 6 2 5.67 .7246 Overall SC time reduction - - 5 - 7 2 1 4.60 1.2987 Survival is adapting to SCM - - - 1 5 7 2 5.67 .8168 Long term relationships with SC members is critical 1 - - - 4 9 1 5.47 1.3569 Sharing valuable information with SC members - - 3 - 7 3 2 5.07 1.28010 Sharing risk and rewards with SC members - - 3 - 8 1 3 5.07 1.33511 Adequate education provide about SCM - 3 2 10 - - - 3.47 .83412 SC members participation in important decision - - 1 8 6 - - 4.33 .61713 Depend SC member’s support in important conditions - 3 - 7 2 3 - 4.13 1.35614 Patient with SC member’s mistakes - 2 3 3 5 1 1 4.20 1.42415 SC members must work to gather for success - - - - 7 1 7 6.00 1.00016 SC as a value added - - - 1 2 7 5 6.07 .88417 JIT philosophy 2 - 2 9 1 1 - 3.67 1.29118 CPFR philosophy - - 5 4 6 - - 4.07 .88419 SCOR model 3 6 6 - - - - 2.20 .77520 Overall SC effectiveness management - - 3 - 3 2 2 5.00 1.254

This table shows that three items (out of twenty) have means score below than

midpoint four. These three items namely are; “SCOR model” (mean = 2.20, S.D =

0.775), “adequate education provided about SCM” (mean = 3.47, S.D = 0.834), and

“JIT philosophy” (mean = 3.67, S.D = 1.291). It is interesting to note that “SCOR

model” as the standard diagnostic tool to implement SC initiative has the lowest mean

score. The top five items related to SCO in this firm even have means above than five

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are; “SCM executive” (mean = 6.07, S.D = 0.799), “SC as a value added” (mean =

6.07, S.D = 0.884), “SC members must work to gather for success” (mean = 6.00, S.D

= 1.00), “overall SC cost reduction” (mean = 5.67, S.D = 0.724) and “survival is

adapting to SCM” (mean = 5.67, S.D = 0.816).

3.6.2 Internal-Firm-Integration (IFI) in AT&S India Pvt. Ltd.

Internal integration is a necessary antecedent to external integration and also

the supply chain agility (Rosenzweigh et al., 2003). Fifteen respondents were

requested to rate the importance of twelve attributes related to IFI on a 7-point Likert


Table – 3.38 : IFI in AT&S India Pvt. Ltd.

S.


1 Departments connected by central IS - - - 5 1 5 4 5.53 1.2462 Communication routed through proper

channel - - 2 3 - 8 2 5.33 1.345

3 Trust and commitment is main indicator - - 1 4 2 4 4 5.40 1.3524 Function performance base organization - - - - 4 7 4 6.00 .756 5 JIT philosophy is encouraged - - - - 5 4 6 6.07 .884 6 Logistic collaborates with other functions - - - 1 2 7 5 6.07 .884 7 Share data and information - - - - 2 8 5 6.20 .676 8 Acceptance responsibility for quality. - - - - 1 7 7 6.40 .632 9 Implement TQM - - - - 3 5 7 6.27 .799 10 Joint development project - - - - 2 11 2 6.00 .535 11 Interdepartmental exchange of idea

encouraged - - - - 4 4 7 6.20 .862

12 Internal integrated management system - - - 2 1 4 8 6.20 1.082

This table shows that this firm is internally high integrated, because the mean

score of all attributes are above than midpoint four. The top five items that have

means score above than six namely are; “acceptance responsibility for quality” (mean

= 6.40, S.D = 0.632), “implement TQM” (mean = 6.27, S.D = 0.799), “share data and

information” (mean = 6.20, S.D = 0.676), “inter department of exchange of idea

encouraged” (mean = 6.20, S.D = 0.862) and “internal integrated management

system” (mean = 6.20, S.D = 1.082).

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3.6.3 Supplier- Firm-Integration (SFI) in AT&S India Pvt. Ltd. Communication and integration with suppliers must be present in order for the

system to work and appropriately respond to the demands of the market place. To identify the level of integration of this firm with its external supplies, fifteen respondents were requested to rate the importance of twenty attributes related to this factor on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.39).

Table – 3.39 : SFI in AT&S India Pvt. Ltd.

S.


1 Trustworthy relationship - - - - 5 7 3 5.87 .7432 Production plans are shared - - - 1 6 5 3 5.67 .9003 Inventory level is shared - 1 - 2 9 1 2 5.00 1.195

4 Innovation and new product development involvement - - - 10 - 4 1 4.73 1.100

5 Development of logistics process involvement - - 7 3 3 - 2 4.13 1.4076 JIT supplies bases - 2 5 3 3 2 - 3.87 1.3027 Delivery schedule data exchange - 3 3 - 6 3 - 4.20 1.5218 Pull system Shipment - 3 3 5 4 - - 3.67 1.113

9 Suppliers inclusion in continues improvement programs - - 1 8 3 2 1 4.60 1.056

10 Quality inspection for new products arrived - - 7 5 1 2 - 3.87 1.06011 Maintain mutual commitment - - - 3 5 6 1 5.33 .90012 Engage in conflict resolution with suppliers - - - 7 - 7 1 5.13 1.12513 Share risk and reward - - - 9 4 2 - 4.53 .74314 Share cost reduction and efficiency gains - 2 5 - 7 1 - 4.00 1.30915 Long term alliance/ partnership - - - 1 9 5 - 5.27 .59416 Compatible technologies are used - - 2 2 10 1 - 4.67 .81617 Parties are patient with mistakes 1 1 3 6 3 1 - 3.80 1.26518 Work with supplier as a team - 2 - 1 2 8 2 5.33 1.54319 Integrated information system emphasized - - - 3 5 6 1 5.33 .90020 Maintain long term relationship - - - 1 3 7 4 5.93 .884

This table shows that, this firm has not performed at a satisfactory level of integration with its suppliers in four important variables. These variables with means score less than midpoint four namely are; “pull system shipment”, (mean = 3.67, S.D = 1.113), “parties inspection for new products arrived” (mean = 3.87, S.D = 1.060) and “JIT supplies bases” (mean = 3.87, S.D = 1.302).

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But the top three items that have been identified by respondent are indicators

to supplier integration of this firm namely are; “maintain long term relationship”

(mean = 5.93, S.D = 0.884), “trustworthy relationship” (mean = 5.87, S.D = 0.743)

and “production plans are shared” (mean = 5.67, S.D = 0.900).

3.6.4 Customer-Firm-Integration (CFI) in AT&S India Pvt. Ltd.

The nation of trade offs and focus on core competencies has led many firms to

focus on what they believe are their core functions and processes. This trend has led

to the creation of long-term relationship and integration with strategic customers.

Thus, no longer is the competitive advantage of firm dependents on its resources and

capabilities solely. Hence, the twenty attributes designed to measure the degree of

integration of this firm with its key customers were asked to fifteen respondents to

rate the importance of each attribute on a 7-point Likert scale ranging from “strongly


Table – 3.40 : CFI in AT&S India Pvt Ltd.


1 Trustworthy relationship - - - - - 6 9 6.60 .5072 Mutual and long term commitment - - - 1 - 5 9 6.47 .8343 Delivery performance feedback - - - 3 3 2 7 5.87 1.2464 Participation in new product development. - - 7 5 - - 3 4.13 1.5525 Share demand information by Customers - - 1 6 3 5 - 4.80 1.0146 Production plans are shared - 7 5 2 - 1 - 2.87 1.1257 Inventory level is shared 1 2 5 7 - - - 3.20 .9418 Continuously replenishment program - - 5 4 6 - - 3.80 1.1139 JIT delivery - 2 8 5 - - - 3.15 1.06910 Post sales services - - - 1 3 10 1 5.73 .70411 Interaction with production employees - - 9 - 5 - 1 3.93 1.28012 Interaction to set reliability and standard - - 1 9 1 4 - 4.53 .99013 SMU for specific customers - - 3 7 2 3 - 4.33 1.04714 Involvement in product customization - 3 5 5 1 1 - 3.47 1.12515 Post sales feedback in to product development - - 2 1 3 8 1 5.33 1.17516 As an important source of new idea - - 1 6 - 7 1 5.07 1.22317 Share risks and rewards 1 2 6 6 - - - 3.13 .91518 Looking for win-win situation - - 1 1 1 7 2 5.53 1.06019 Share cost reduction and efficiency gain - - 11 2 2 - - 3.40 .73720 Maintain long term relationship - - - - 5 3 7 6.13 .915

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This table shows that the firms relationships with its key customers is not as much integrated as with internal functions and also external suppliers, where, eight items out of twenty have means score below than midpoint four. These variables namely are; “production plans and shared” (mean = 2.87, S.D = 1.125), “share risks and rewards” (mean = 3.13, S.D = 0.915), “JIT delivery” (mean = 3.15, S.D = 1.069), “Inventory level is shared” (mean = 3.20, S.D = 0.941), “share cost reduction and efficiency gain” (mean = 3.40, S.D = 0.737), “involvement in product customization” (mean = 3.47, S.D = 1.125), “continuously replenishment program” (mean = 3.80, S.D = 1.113), and “interaction with production employees” (mean = 3.93, S.D = 1.280). The top three items that have been recognized as main indicator toward customer integration in this firm are; “trustworthy relationship” (mean = 6.60, S.D = 0.507), “mutual and long term commitment” (mean = 6.47, S.D = 0.834) and “maintain long term relationship” (mean = 613, S.D = 0.915). 3.6.5 Supply Chain Flexibility (SCF) in AT&S India Pvt. Ltd.

Supply chain flexibility is a complex and multi-dimensional concept difficult to summarize (Gupta and Buzacott, 1996). It encompasses not only the manufacturing (operations) flexibility, but also the flexibility of the different supply, distribution and transportation. Fifteen respondents were asked to rate the importance of thirteen attributes related to SCF in this firm on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.41).

Table – 3.41 : SCF in AT&S India Pvt. Ltd.

S.


1 Operate efficiently at different levels of output - - 3 3 1 8 - 4.93 1.2802 Quickly change the quantities - - 6 4 5 - - 3.93 .8843 Easily change the production volume - - - 8 3 3 1 4.80 1.0144 Produce a variety of products - - - 3 10 2 - 4.93 .5945 Different products in the same plants , same time - - 3 2 7 3 - 4.67 1.0476 Workers perform many operations effectively - - - 4 9 2 - 4.87 .6407 Workers operate various machines - - 3 3 6 3 - 4.60 1.0568 Quickly changeover from one product to another - 6 2 3 4 - - 3.33 1.2919 NPD based on customer wants. - - 1 2 8 1 3 5.20 1.14610 Change design and size - - - 3 7 2 3 5.33 1.04711 Market changes adaptation in short time - - - 6 5 3 1 4.93 .96112 Change logistics and transportation - - 1 2 7 5 - 5.07 .88413 Enhance equipment at shortest time - 7 - 1 6 3 - 4.13 1.642

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This table shows that two out of thirteen items of SCF have means score

below than midpoint four. These two variables namely are; “quickly changeover from

one product to another” (mean = 3.33, S.D = 1.291), and “quickly change the

quantities” (mean = 3.93, S.D = 0.884). The top three variables that have been

identified by respondents in SCF namely are; “change design and size” (mean = 5.33,

S.D = 1.047), “new product development based on customer wants” (mean = 5.20,

S.D = 1.146) and “change logistics and transportation system based on customer

wants” (mean = 5.07, S.D = 0.884).

3.6.6 Supply Chain Leanness (SCL) in AT&S India Pvt. Ltd.

The basis of the leanness is the elimination of all kind of wastes (Pavnaskar et

al., 2003). The successful practices of lean supply chain around the world testified to

its great benefits, such as improved product quality, reduction in cycle time, reduced

inventory and decreased costs. Therefore, to identify the level of leanness of supply

chain in this firm, fifteen respondents were requested to rate the importance of nine

attributes on a 7-point Likert scale ranging from “strongly disagree’ to “strongly


Table – 3.42 : SCL in AT&S India Pvt. Ltd.

S.


1 Pull production system - 5 3 5 - 2 - 3.40 1.3522 Continues production of products - 2 3 2 4 3 1 4.40 1.5493 Lower setup time of production - 1 2 1 6 5 - 4.80 1.2654 Low setup times of equipment - - 5 1 5 3 1 4.60 1.3525 Statistical techniques are used - - - 6 5 4 - 4.87 .834 6 Charts showing defects are used - - - 4 5 6 - 5.13 .834 7 Fishbone diagram is used - - 1 2 4 8 - 5.27 .961 8 Conduct feasibility study - - - 1 7 7 - 5.40 .632 9 Production stages and rate of customer

demand are linked - - - 1 11 2 1 5.20 .676

This table reveals that almost all items (eight out of nine) of SCL have mean

scores above than midpoint four. The only one variable has a low mean namely is,

“pull production system” (mean = 3.40, S.D = 1.352). This item is consistent with a

low mean score of “JIT supplies bases” (mean = 3.87) and “pull system shipment”

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(mean = 3.67) in SFI components. The top three items of SCL in this firm that have

been rated by respondents namely are; “conduct feasibility study” (mean = 5.40, S.D

= 0.632), “production stages and rate of customer demand are linked” (mean = 5.20,

S.D = 0.676) and “fishbone diagram is used” (mean = 5.27, S.D = 0.961).

3.6.7 Supply Chain Agility (SCA) in AT&S India Pvt. Ltd.

Supply chain agility is the successful exploration of competitive bases (speed,

flexibility, innovation proactively and profitability) through the integration of

reconfigurable resources and best practices in a knowledge rich environment to

provide customer driven products and services in a fast changing market environment.

It was asked from fifteen respondents to rate the importance of thirteen attributes

related to SCA on a 7-point Likert scale ranging from “strongly disagree” to “strongly


Table – 3.43 : SCA in AT&S India Pvt. Ltd.

S.


1 Quickly modify products - - - 4 4 6 1 5.27 .9612 Quickly introduce new product - - - 9 5 1 - 4.74 .6403 Quickly respond to changes - 1 - 4 5 5 - 4.87 1.1254 Quickly change the delivery time - - - 6 5 4 - 4.87 .8345 Adjust to supplier delivery schedules - - - 6 4 5 - 4.93 .8846 Quickly exchange information with parties - - - 3 11 1 - 4.93 .7047 Ability to forecast market changes - - 5 4 4 2 - 4.20 1.0828 Rapidly reduce inventory level 3 2 5 5 - - - 2.80 1.1469 Rapidly reduce the setup cost - - 2 6 6 1 - 4.40 .82810 Rapidly reduce the setup time - - 2 6 5 2 - 4.47 .91511 Rapidly reduce NPD cycle time. - - 3 9 - 3 - 4.20 1.01412 Rapidly reduce order-to- delivery cycle time. - - 8 2 4 1 - 3.87 1.06013 Rapidly adjust to the customization - - - 3 8 4 - 5.07 .70414 Rapidly improve manufacturing process - 3 8 3 - 1 - 3.20 1.014

This table shows that three out of fourteen items of SCA have not reached a satisfactory level of midpoint four. These three variables namely are; “rapidly reduce inventory level” (mean = 2.80, S.D = 1.146). This is consistent with a low means score of “pull system shipment” (mean = 3.67) and “JIT supplies bases” (mean = 3.87) in SFI components. Next to that, “rapidly reduce order to delivery cycle time’

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(mean = 3.87, S.D = 1.060) and “rapidly improve manufacturing process’ (mean = 3.20, S.D = 1.014) are the other variables with low means score in SCA components. The top three items of SCA in this firm namely are; “quickly modify products” (mean = 5.27, S.D = 0.961), “rapidly adjust to the customization” (mean = 5.07, S.D = 0.704) and “quickly exchange information with parties” (mean = 4.93, S.D = 0.704). 3.6.8 Supply Chain Barriers (SCBA) in AT&S India Pvt. Ltd.

To demonstrate the main barriers to SCM in this firm, fifteen respondents were requested to rate the importance of fourteen attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.44).

Table – 3.44 : SCBA in AT&S India Pvt. Ltd.


1 Lack of adequate information system 6 5 3 1 - - - 1.93 .961 2 Lack of clear alliance guideline 1 7 4 3 - - - 2.60 .910 3 Lack of consistent operating goals - 7 5 3 - - - 2.73 .799 4 Lack of trust and commitment 2 8 2 2 1 - - 2.47 1.1255 Lack of sharing risks and rewards 1 3 3 4 3 1 - 3.53 1.4076 Lack of ability in managing inventories 1 5 3 5 - 1 - 3.07 1.2807 Lack of cooperation - 4 4 2 3 2 - 3.67 1.4478 Lack of interest to participate in SCM - 6 - 3 4 2 - 3.73 1.5809 Lack of willingness to share information - - 6 3 3 2 1 4.27 1.33510 Lack of top management support - 4 7 1 2 - 1 3.33 1.39711 Lack of facilities and equipment - 7 4 1 2 1 - 3.07 1.33512 Lack of proper communication technology 2 6 3 1 2 1 - 2.87 1.50613 Supplier geographical distance - 1 1 3 6 1 3 4.93 1.43814 Customer geographical distance - - 2 5 8 - - 4.40 .737

This table shows that, three important barriers out of fourteen have been recognized by respondents as main barriers of SCM in this firm. These three items namely are; “supplier geographical distance” (mean = 4.93, S.D = 1.438), “customer geographical distance” (mean = 4.40, S.D = 0.737) and “lack of willingness to share information” (mean = 4.27, S.D = 1.335). It is important to note that these barriers are consistent with low means score of “JIT supplies bases” (mean = 3.87) in SFI components and also “JIT delivery to the customer” (mean = 3.15) in CFI components.

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The four least important barriers to SCM of this firm are; “lack of adequate information system” (mean = 1.93, S.D = 0.961), “lack of trust and commitment” (mean = 2.4, S.D = 0.594), “lack of clear alliance guideline” (mean = 5.93, S.D = 0.912) and “lack of proper communication technology” (mean = 2.87, S.D = 1.506).

3.6.9 Supply Chain Benefits (SCBE) in AT&S India Pvt. Ltd. To identify the main benefits of SCM in this firm, fifteen respondents were

asked to rate the importance of fifteen attributes on a 7-point Likert scale ranging from “strongly decreased” to “strongly increased” (see Table 3.45).

Table – 3.45 : SCBE in AT&S India Pvt Ltd.

S. NO Attributes 1 2 3 4 5 6 7 Mean S.D

1 Market share - - 1 4 6 3 1 4.93 1.0332 Sales growth and profitability - - - 2 6 3 4 5.60 1.0563 Customer satisfaction - - - 2 6 2 5 5.67 1.1134 Productivity - - 3 - 4 7 1 5.20 1.2655 Defects as a % of production volume - - - - 9 6 - 5.40 .507 6 Overall product quality - - 2 1 8 4 - 4.93 .961 7 Customer responsiveness rate in terms

of design-price- quality - 2 2 4 5 2 - 4.20 1.265

8 On-Time product delivery - - 1 7 6 1 - 4.47 .743 9 Order fulfillment lead time (Cycle Time) - - - 3 10 2 - 4.93 .594 10 Inventory days/cost of raw material

inventory - 4 1 3 7 - - 3.87 1.302

11 Inventory days/cost of finished goods - - 8 7 - - - 3.60 .516 12 Return on delivered product or return cost - - - 4 11 - - 4.73 .458 13 Product innovation lead time - 2 - 7 3 3 - 4.33 1.23414 Handle unexpected challenges - 2 - 5 5 3 - 4.47 1.24615 Cost of purchased items - - - 4 7 3 1 5.07 .884

This table shows that this firm is performing at satisfactory level of obtaining benefits through its SCM, because almost all of items (fourteen out of fifteen) have mean score above than midpoint four. The top five benefits of this SCM namely are; “customer satisfaction” (mean = 5.67, S.D = 1.113), “sales growth and profitability” (mean = 5.60, S.D = 1.056), “defects as a % of production volume” (mean = 5.40, S.D = 0.507), “productivity” (mean = 5.20, S.D = 1.265) and “cost of purchased items” (mean = 5.07, S.D = 0.884). The only one item that has low mean score is “inventory days/cost of raw material inventory” (mean = 3.87, S.D = 1.302). This is consistent with low mean score of “JIT supplies bases” (mean = 3.87) in SFI components and “JIT delivery to customers” (mean = 3.15) in CFI components.

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3.7 WeP Peripherals Ltd.

WeP Peripherals Limited, one of India’s largest employee-owned companies,

was established in September 2000. Starting primarily with Dot Matrix Printers, WeP

is now diversified into emerging and growing segments including Power Solutions,

Retail Solutions and After Market while continuously strengthening its portfolio of

printers. With the ever growing demand for printers and UPS in the country, among

the small and medium enterprises, WeP’s products are designed keeping in mind the

current requirements of the market, which are high on quality and yet cost effective.

Impact Printers, High Speed Printers & Line Matrix Printers have been the traditional

business for WeP. WeP continues its dominance in these areas. WeP’s has two state

of art manufacturing facilities at Mysore (Karnataka) and Baddi (Himachal Pradesh).

They are state-of-the-art manufacturing facilities having the capacity to produce more

than 650,000 products and 1 million consumables per annum. WeP has created India’s

largest IT products sales infrastructure of 10,000 active retail outlets and supports

more than 2,000 large business consumers directly.

To enable superior product development, WeP has expanded its Research &

Development (R&D) group with in-depth domain expertise and specialization in

cross-functional project management process. Research and Development is inspired

by trends and the consumers' desires. WeP has aligned R&D to deliver consumer

sensitivity in superior product design and development. WeP dedicated Research &

Development team focusing on each product line. Consumers can look forward to

MORE “WoW” & tech fantasy products. WeP is known for its quality with 6 sigma

initiative & ISO 9000 standards of certification for its Product Development,

Manufacturing, Marketing and Support.

WeP has a broad supply chain system with direct sales and support offices in

19 cities in India(see Figure 3.5), and all WeP Products are sold through 200+ channel

partners present in 172 locations. WeP addresses over 15000 resellers across the

country. There are 38 locations with warranty stockiest that provide spare support to

all products during the warranty period. "WeP Warranty Centers" are WeP owned

outlets providing support to walk-in customers in 5 locations. As one supply chain

executive of WeP, I interviewed said:

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…best in class supplier identification and long term relationship management with supply chain members is our core strategy to effectively source components throughout the world, decreasing cost of material and time-to-market, while increasing production flexibility and maximizing total inventory turns. WeP possess in-depth product knowledge with active/passive electronic

machines. WeP Peripherals Supplier Qualification Programs (SQP) ensure that all potential suppliers will be qualified according to the specifications of the product before they are engaged, and Vendor Quality Management (VQM) programs ensure that all active suppliers are maximizing value and minimizing costs continuously.

Figure – 3.5 : SCM of WeP Peripherals Ltd.

Source: www.wepindia.com

3.7.1 Supply Chain Orientation (SCO) in WeP Peripherals Ltd.

Supply chain management has been seen as a set of beliefs or an idea or a policy statement that each firm in the chain directly and indirectly affects the other entire chain member’s as well as the ultimate overall channel performance. This belief is called supply chain orientation. To identify the level of SCO in this firm fifteen respondents were asked to rate the importance of twenty attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.46).

Information

Suppliers

Materials Parts, subassemblies and services

Inventory

Producer

Finished goods, product and services

Inventory

Distributer

Packaging and delivery

Inventory

Customer

Total satisfaction with quality, prize, delivery and services

Product and

Services

Product and

Services

Product and

Services

Cash

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Table – 3.46 : SCO in WeP Peripherals Ltd.


1 SCM executive - - - 2 4 5 4 5.73 1.0332 SCM program management office - - - 2 9 4 - 5.13 .640 3 SCM strategic road map - - - 2 5 6 2 5.53 .915 4 EX ante impact analysis - - - 9 3 3 - 4.60 .828 5 Overall SC cost reduction - - - - 5 8 2 5.80 .676 6 Overall SC time reduction - - 5 1 6 2 1 4.53 1.3027 Survival is adapting to SCM - - - 2 4 7 2 5.60 .910 8 Long term relationships with SC

members is critical - - - 1 4 8 2 5.73 .799

9 Sharing valuable information with SC members

- - 4 1 5 2 3 4.93 1.486

10 Sharing risk and rewards with SC members - - - 7 2 2 4 5.20 1.32011 Adequate education provide about SCM - 3 2 9 1 - - 3.53 .915 12 SC members participation in important

decision - 1 1 7 5 1 - 4.27 .961

13 Depend SC member’s support in important conditions

- 2 3 6 2 2 - 3.93 1.223

14 Patient with SC member’s mistakes - 4 3 2 5 - 1 3.80 1.52115 SC members must work to gather for

success - - - - 7 1 7 6.00 1.000

16 SC as a value added - - - 1 2 7 5 6.07 .884 17 JIT philosophy 3 1 2 7 1 1 - 3.33 1.49618 CPFR philosophy - - 5 3 7 - - 4.13 .915 19 SCOR model 2 8 5 - - - - 2.20 .676 20 Overall SC effectiveness management 1 - 3 - 7 2 2 4.73 1.624

This table reveals that five items out of twenty have means score below than

midpoint four. These five items namely are; “SCOR model” (mean = 2.20, S.D =

0.676), “JIT philosophy” (mean = 3.33, S.D = 1.496), “adequate education provided

about SCM” (mean = 3.53, S.D = 0.915), “patient with SC member’s mistakes” (mean

= 3.80, S.D = 1.521) and “depend on SC members support in the important conditions

(mean = 3.93, S.D = 1.223). It is important to note that SCOR model as the global

standard diagnostic tool to implement SCM initiative has the lowest mean score (mean

= 2.20). The top three items of SCO in this firm are; “SC as a valued added” (mean =

6.07, S.D 0.884), “SC members must work together for success” (mean = 6.00, S.D =

1.00) and “overall SC cost reduction” (mean = 5.80, S.D = 0.676).

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3.7.2 Internal-Firm-Integration (IFI) in WeP Peripherals Ltd.

The firm’s competitive advantage depends on how the firm efficiently and

effectively identifies, integrates, manipulates and deploys unique combinations of the

resources and capabilities available internally and throughout the network it belongs

to in order to create core competencies capable of attaining and sustaining competitive

advantage. Fifteen respondents were asked to rate the importance of twelve attributes

related to the internal firm integration on a 7-point Likert scale ranging from “strongly


Table – 3.47 : IFI in WeP Peripherals Ltd.

S.


1 Departments connected by central IS - - 1 3 2 6 3 5.47 1.2462 Communication routed through proper

channel - - 2 6 - 6 1 4.87 1.302

3 Trust and commitment is main indicator - - 1 1 1 4 5 5.73 1.2234 Function performance base organization - - - - 4 8 3 5.93 .704 5 JIT philosophy is encouraged - - - - 5 4 6 6.07 .884 6 Logistic collaborates with other functions - - - 1 3 6 5 6.00 .926 7 Share data and information - - - - 2 6 7 6.33 .724 8 Acceptance responsibility for quality. - - - - 1 6 8 6.47 .640 9 Implement TQM - - - - 3 4 8 6.33 .816 10 Joint development project - - - - 3 10 2 5.93 .594 11 Interdepartmental exchange of idea

encouraged - - - - 5 3 7 6.13 .915

12 Internal integrated management system - - - 2 2 2 9 6.20 1.146

This table shows that this firm is internally high integrated, because the means

score of all attributes are above than midpoint four. The top five variables that have

even means score above than six namely are; “acceptance responsibility for quality”

(mean = 6.47, S.D = 0.640), “share data and information” (mean = 6.33 S.D = 0.724),

“implement TQM” (mean = 6.33, S.D = 0.816), “internal integration management

systems” (mean = 6.20, S.D = 1.146) and “inter department exchange of idea

encouraged” (mean = 616, S.D = 0.915).

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3.7.3 Supplier-Firm-Integration (SFI) in WeP Peripheral Ltd.

Monczka and Peterson (1998) found that a successful SFI depends on some

important attributes, such as trust and coordination, interdependence, information

quality and participation and information sharing. To evaluate the level of integration

of this firm with its external suppliers, fifteen respondents were requested to rate the

importance of twenty identified attribute on a 7-point Likert scale ranging from


Table – 3.48 : SFI in WeP Peripheral Ltd.

S.


1 Trustworthy relationship - - - 1 6 6 2 5.60 .8282 Production plans are shared 1 - - 2 7 4 1 5.00 1.3633 Inventory level is shared - 3 - 2 9 1 - 4.33 1.2914 Innovation and new product development

involvement - - - 9 - 3 3 5.00 1.309

5 Development of logistics process involvement - - 7 2 2 1 3 4.40 1.6396 JIT supplies bases - 2 7 2 1 3 - 3.73 1.3877 Delivery schedule data exchange - 3 5 - 5 2 - 3.87 1.4578 Pull system Shipment - 3 5 5 2 - - 3.40 .9869 Suppliers inclusion in continues improvement programs - - 3 8 2 2 - 4.20 .94110 Quality inspection for new products arrived - - 7 5 1 2 - 3.87 1.06011 Maintain mutual commitment - - 1 3 5 4 2 5.20 1.14612 Engage in conflict resolution with suppliers - - - 6 2 5 2 5.20 1.14613 Share risk and reward - - - 8 6 1 - 4.53 .64014 Share cost reduction and efficiency gains 1 2 6 - 5 1 - 3.60 1.45415 Long term alliance/ partnership - - - 2 6 5 2 5.47 .91516 Compatible technologies are used - - 2 2 9 2 - 4.73 .88417 parties are patient with mistakes 2 1 3 7 2 - - 3.40 1.24218 Work with supplier as a team - 1 - 1 2 9 2 5.60 1.24219 Integrated information system emphasized - - - 2 7 6 - 5.27 .70420 Maintain long term relationship - - - - 4 6 5 6.07 .799

This table shows that this firm has not performed a satisfactory level of

integration with its suppliers in six important variables. The variable that have means

score less than midpoint four namely are; ‘pull system shipment” (mean = 3.40, S.D =

0.986), “parties are patient with mistakes” (mean = 3.40, S.D = 1.242), “share cost

reduction and efficiency gains” (mean = 3.60, S.D = 1.454), “JIT supplies bases”

(mean = 3.73, S.D = 1.387), “delivery schedule data exchange” (mean = 3.87, S.D =

1.457) and “quality inspection for new products arrived” (mean = 3.87, S.D = 1.060).

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But the top five items that have been identified by respondents as highest means score

are; “maintain long term relationship” (mean = 6.07, S.D = 0.799), “trustworthy

relationship” (mean = 5.60, S.D = 0.828), “work with suppliers as a team” (mean =

5.60, S.D = 1.242), “long term alliance partnership” (mean = 5.47, S.D = 0.915) and

“integrated information system emphasized’ (mean = 5.27, S.D = 0.704).

3.7.4 Customer-Firm-Integration (CFI) in WeP Peripheral Ltd.

Integrating with customers gives supply chain members the knowledge of the

true end demand and hence enables a more accurate forecasting and planning of

responses to meet the demands. To know the integration of this firm with its

customers the twenty attributes were asked from fifteen respondents to rate the

importance of each attributes on a 7-point Likert scale ranging from “strongly


Table – 3.49 : CFI in WeP Peripheral Ltd.

S.


1 Trustworthy relationship - - - - 1 5 9 6.53 .6402 Mutual and long term commitment - - - 1 - 5 9 6.47 .8343 Delivery performance feedback - - - 2 4 3 6 5.87 1.1254 Participation in new product development. - - 4 5 - 2 4 4.80 1.6565 Share demand information by Customers - - - 5 3 7 - 5.13 .9156 Production plans are share - 4 6 4 1 - - 3.20 1.0827 Inventory level is shared - 2 5 5 1 1 1 3.80 1.3738 Continuously replenishment program - - 4 4 6 1 - 4.27 .9619 JIT delivery - 3 2 3 7 - - 3.93 1.22310 Post sales services - 1 - - 5 9 - 5.40 1.05611 Interaction with production employees - - 9 - 4 2 - 4.07 1.48612 Interaction to set reliability and standard - 1 2 7 - 4 1 4.47 1.40713 SMU for specific customers 1 - 2 6 2 4 - 4.33 1.39714 Involvement in product customization 1 2 4 7 - 1 - 3.40 1.18315 Post sales feedback in to product development 1 - 2 - 4 7 1 5.07 1.58016 As an important source of new idea 1 - - 4 - 9 1 5.20 1.52117 Share risks and reward - 2 7 6 - - - 3.27 .70418 Looking for win-win situation - - - 1 5 7 2 5.67 .81619 Share cost reduction and efficiency gain - 2 9 2 - 2 - 3.40 1.18320 Maintain long term relationship - - - - 4 1 10 6.40 .910

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This table shows that six items out of twenty have means score below than

midpoint four. The items namely are; “production plans and shared” (mean = 3.20,

S.D = 1.082), “share risks and rewards” (mean = 3.37, S.D = 0.704), “share cost

reduction and efficiency gain” (mean = 3.40, S.D = 1.183), “involvement in product

customization’ (mean = 3.40, S.D = 1.183), “inventory level is shared” (mean = 3.80,

S.D = 1.373) and “JIT delivery” (mean = 3.93, S.D = 1.223). The top three items that

have been recognized by respondents are; “trustworthy relationship” (mean = 6.53,

S.D = 0.640), “mutual and long term commitment” (mean = 6.47, S.D = 0.834) and

“maintain long term relationship” (mean = 6.40, S.D = 0.910).

3.7.5 Supply Chain Flexibility (SCF) in WeP Peripherals Ltd.

Flexible supply chain increases the range of product available improving a firm’s

ability to respond quickly and achieve good performance. The fifteen respondents were

asked to rate the importance of thirteen attributes of SCF on a 7-point Likert scale ranging


Table – 3.50 : SCF in WeP Peripherals Ltd.

S.


1 Operate efficiently at different levels of output - - - 3 2 10 - 5.47 .8342 Quickly change the quantities - - 6 4 4 1 - 4.00 1.0003 Easily change the production volume - - - 8 1 4 2 5.00 1.1954 Produce a variety of products - - - 3 8 4 - 5.07 .7045 Different products in the same plants , same time - - 3 3 5 4 - 4.67 1.1136 Workers perform many operations effectively - - - 2 9 4 - 5.13 .6407 Workers operate various machines - - 3 1 7 4 - 4.80 1.0828 Quickly changeover from one product to another - 6 2 2 4 1 - 3.47 1.4579 NPD bases of customer wants. - - 1 - 8 1 5 5.60 1.18310 Change design and size - - - 1 6 4 4 5.73 .96111 Market changes adaptation in short time - - - 5 3 4 3 5.33 1.17512 Change logistics and transportation - - - 2 5 8 - 5.40 .73713 Enhance equipment at shortest time - 2 1 1 8 3 - 4.60 1.298

This table shows that almost all items (twelve out of thirteen) of CFI have

means scores above than midpoint four. The top three items that even have means

score above than five namely are, “change design and size” (mean = 5.73, S.D =

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0.961), “new product development based on customers wants” (mean = 5.60, S.D =

1.183) and “operate efficiently at different levels of output” (mean = 5.47, S.D =

0.834). The only one item has mean score below than four, namely is, “quickly

change over from one product to another” (mean = 3.47, S.D = 1.457).

3.7.6 Supply Chain Leanness (SCL) in WeP Peripherals Ltd.

The key of loan supply chain is to provide a flow of goods, services and

technologies from suppliers to customers without waste. To identify the level of

leanness of SC in this firm, fifteen respondents were requested to rate the importance

of nine different attributes on a 7-point Likert scale ranging from “strongly disagree”

to “strongly agree” (see Table 3.51).

Table – 3.51 : SCL in WeP Peripherals Ltd.

S.


1 Pull production system - 1 4 8 - 2 - 3.87 1.0602 Continues production of products - - 4 2 3 4 2 4.87 1.4573 Lower setup time of production - - 2 1 4 8 - 5.20 1.0824 Low setup times of equipment - - 3 - 6 5 1 5.07 1.2235 Statistical techniques are used - - - 7 4 4 - 4.80 .8626 Charts showing defects are used - - - 4 5 6 - 5.13 .8347 Fishbone diagram is used - - 1 2 4 8 - 5.27 .9618 Conduct feasibility study - - - - 9 6 - 5.40 .5079 Production stages and rate of customer demand

are linked - - - - 9 3 3 5.60 .828

This table shows that almost all items (eight out of nine) have mean scores

above than midpoint four. The only one variable has a low mean score namely is,

“pull production system” (mean = 3.87, S.D = 1.060). This item is consistent with a

low mean score of “pull system shipment” (mean = 3.40) in SFI components. The top

three items of SCL namely are; “production stages and rate of customer demand are

linked” (mean = 5.60, S.D = 0.828), “conduct feasibility study” (mean = 5.40, S.D =

0.507) and “fishbone diagram is used” (mean = 5.27, S.D. = 0.961).

136

3.7.7 Supply Chain Agility (SCA) in WeP Peripherals Ltd.

An agile SC means developing a flexible and reconfigurable network with

partners to share competencies and market knowledge in order to survive and prosper

in a fluctuating market by responding rapidly and cost effectively to changes. It was

asked from fifteen respondents to rate the important of fourteen attributes related to

SCA on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree”

(see Table 3.52).

Table – 3.52 : SCA in WeP Peripherals Ltd.

S.


1 Quickly modify products - - - 1 6 7 1 5.53 .743 2 Quickly introduce new product - 1 - 7 7 - - 4.33 .816 3 Quickly respond to changes - 2 - 4 6 3 - 4.53 1.2464 Quickly change the delivery time - 1 - 4 7 3 - 4.73 1.0335 Adjust to supplier delivery schedules - - - 4 5 4 2 5.27 1.0336 Quickly exchange information with parties - - - 2 10 1 2 5.20 .862 7 Ability to forecast market changes - - 5 4 2 4 - 4.33 1.2348 Rapidly reduce inventory level 1 2 6 5 1 - - 3.20 1.0149 Rapidly reduce the setup cost - - - 5 6 3 1 5.00 .926 10 Rapidly reduce the setup time - - 2 5 5 3 - 4.60 .986 11 Rapidly reduce NPD cycle time. - - 2 9 4 - - 4.40 1.05612 Rapidly reduce order-to- delivery cycle

time. - - 9 - 4 2 - 3.93 1.223

13 Rapidly adjust to the customization - - - 2 8 5 - 5.20 .676 14 Rapidly improve manufacturing process - 3 7 4 - 1 - 3.27 1.033

This table shows that, this firm has not performed a satisfactory level on three

important variables in its SCA components. These three items that have means score

below than midpoint four, namely are; “rapidly reduce inventory level” (mean = 3.20,

S.D = 1.014). This is consistent with a low mean score of “pull system shipment”

(mean = 3.40) in SFI components and also with low mean score of “JIT delivery to

the customers” (mean = 3.93) in CFI components. Next to that are, “rapidly improve

manufacturing process” (mean = 3.27, S.D = 1.033) and “rapidly reduce order-to-

delivery cycle time” (mean = 3.93, S.D = 1.223). The top three items of SCA in this

firm namely are, “quickly modify products” (mean = 5.53, S.D = 0.743), “adjust to

suppliers delivery schedules” (mean = 5.27, S.D = 1.033) and quickly exchange

information with parties” (mean = 5.20, S.D = 0.862).

137

3.7.8 Supply Chain Barriers (SCBA) in WeP Peripherals Ltd. To identify the most important barriers to SCM in this firm, fifteen

respondents were asked to rate the importance of fourteen attributes on a 7-point Likert scale ranging from “strongly disagree” to “strongly agree” (see Table 3.53).

Table – 3.53 : SCBA in WeP Peripherals Ltd.

S.


1 Lack of adequate information system 6 3 3 3 - - - 2.20 1.2072 Lack of clear alliance guideline - 7 3 4 1 - - 2.93 1.0333 Lack of consistent operating goals - 7 4 2 2 - - 2.93 1.1004 Lack of trust and commitment - 8 2 2 3 - - 3.00 1.2545 Lack of sharing risks and rewards - 3 - 6 5 1 - 4.07 1.2236 Lack of ability in managing inventories 3 3 2 5 - 1 1 3.20 1.7817 Lack of cooperation - 2 4 3 3 2 1 4.13 1.5068 Lack of interest to participate in SCM - 4 - 3 3 5 - 4.33 1.6339 Lack of willingness to share information 1 1 6 2 1 2 2 4.00 1.81310 Lack of top management support 1 4 6 - 2 1 1 3.33 1.67611 Lack of facilities and equipment - 4 4 4 2 1 - 3.47 1.24612 Lack of proper communication technology 2 4 2 2 2 3 - 3.47 1.80713 Supplier geographical distance - - 1 2 6 3 3 5.33 1.17514 Customer geographical distance - - - 5 9 - 1 4.80 .775

This table shows that, six important issues (out of fourteen) have been recognized by respondents as main barriers to implementation of SCM in this firm. These six barriers namely are, “supplier geographical distance” (mean = 5.33, S.D = 1.175), “customer geographical distance” (mean = 4.80, S.D = 0775), “lack of interest to participate in SCM” (mean = 4.33, S.D = 1.638), “lack of cooperation (mean = 4.13, S.D = 1.506), “lack of sharing risks and rewards” (mean = 4.07, S.D = 1.223) and “lack of willingness to share information” (mean = 4.00, S.D = 1.813). It is interesting to note that all of mentioned barriers are consistent with low means score variables in supplier and customers integration. For example, “supplier and customer geographical distance” are consistent with a low mean of “pull system shipment” (mean = 3.40) in SFI components and “JIT delivery to customers” (mean = 3.93) in CFI components. The three least important barriers to SCM of this firm namely are, “lack of adequate information system” (mean = 2.20, S.D = 1.207) “lack of clear alliance guideline” (mean = 2.93, S.D = 1.033) and ‘lack of consistent operating goals” (mean = 2.93, S.D = 1.100).

138

3.7.9 Supply Chain Benefits (SCBE) in WeP Peripherals Ltd.

To identify the main obtained benefits of SCM in this firm, fifteen respondents

were asked to rate the importance of fifteen attributes on a 7-point Likert scale

ranging from “strongly decreased” to “strongly increased” (see Table 3.54).

Table – 3.54 : SCBE in WeP Peripherals Ltd.

S.

No. Attribute 1 2 3 4 5 6 7 Mean S.D

1 Market share - - - 4 5 5 1 5.20 .9412 Sales growth and profitability - - - 2 4 4 5 5.80 1.0823 Customer satisfaction - - - 2 4 3 6 5.87 1.1254 Productivity - - 2 - 4 5 4 5.60 1.2985 Defects as a % of production volume - - - 1 8 6 - 5.33 .6176 Overall product quality - - 2 1 6 5 1 5.13 1.125

7 Customer responsiveness rate in terms of design-price- quality - 2 2 2 5 3 1 4.53 1.506

8 On-Time product delivery - - - 6 7 2 - 4.73 .7049 Order fulfillment lead time ( Cycle Time) - - - 4 9 2 - 4.87 .64010 Inventory days/cost of raw material inventory - 3 - 3 9 - - 4.20 1.20711 Inventory days/cost of finished goods - - - 6 8 1 - 4.67 .61712 Return on delivered product or return cost - - - 4 11 - - 4.73 .45813 Product innovation lead time - 2 - 6 4 3 - 4.40 1.24214 Handle unexpected challenges - 2 - 6 5 2 4.33 1.17515 Cost of purchased items - - - 5 6 4 - 4.93 .799

This table shows that this firm performing at satisfactory level of obtaining

benefits through its SCM, because all of items have mean score above than midpoint

four. The top five benefits of this SCM namely are; “customer satisfaction” (mean =

5.80, S.D = 1.082), “productivity” (mean = 5.60, S.D = 1.298), “defects as % of

production volume” (mean = 5.33, S.D = 0.617) and “market share” (mean = 5.20,

S.D = 0.941).

chapter – iii findings - individual case...

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