supply chain management of pak suzuki motor pvt ltd
TRANSCRIPT
Report on Supply Chain Management of Pak Suzuki Motor Pvt Ltd.
A Project Conducted By Students Of
Supply Chain Management.
Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan
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SCM Report
April 25
2011Submitted to Mr Asad Nizamani
SCM Report
April 25
2011Submitted to Mr Asad Nizamani
Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan
ContentsGroup Members.........................................................................................................................6
SUPPLY CHAIN RIVER AND LADDER................................................................................................7
Sourcing raw material:................................................................................................................7
PROCESS OF SUPPLY CHAIN MANAGEMENT..............................................................................7
Vendors (Supplier) Network.......................................................................................................8
SECTIONS / FUNCTIONS OF IPP DEPARTMENT...........................................................................9
REGULAR / PERIODIC ACTIVITIES............................................................................................9
TARGETS.................................................................................................................................9
OPERATIONS SECTION..............................................................................................................10
REGULAR / PERIODIC ACTIVITIES..........................................................................................10
Cost Down:...........................................................................................................................11
System Improvement:..........................................................................................................11
OTHER RELATED INFORMATION OF IPP DEPARTMENT............................................................12
MODE OF PAYMENT:............................................................................................................12
MODE OF SHIPMENT:...........................................................................................................12
PORT OF DISCHARGE:...........................................................................................................12
Major Shipping Line:.............................................................................................................12
Clearing & Forwarding Agent:...............................................................................................13
Inland Transporter:...............................................................................................................13
Insurance Company:.............................................................................................................13
REGULAR / PERIODIC ACTIVITIES..............................................................................................13
MAIN OBJECTIVES.....................................................................................................................14
DEPARTMENTAL FUNCTIONS....................................................................................................143 | P a g e
Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan
REGULAR / PERIODIC ACTIVITIES..........................................................................................14
COSTING...............................................................................................................................15
Price revision........................................................................................................................16
SCHEDULING SECTION..............................................................................................................16
REGULAR/PERIODICAL ACTIVITIES........................................................................................16
TARGETS...............................................................................................................................17
FUNCTIONS OF GP DEPARTMENT.............................................................................................19
Plant Procurement................................................................................................................19
Administrative Procurement.................................................................................................19
Vendor Consolidation...............................................................................................................20
COST CONTROL.....................................................................................................................20
Advantages of single source.................................................................................................20
Advantages of multiple source.............................................................................................21
SWOT analysis with reference to supply chain.........................................................................22
Push versus pull........................................................................................................................23
• JIT objective......................................................................................................................23
Planning process through ERP..................................................................................................24
Advantages of ERP................................................................................................................24
FLOW OF MANAFACTURING PROCESS.....................................................................................25
PRESS SHOP..........................................................................................................................25
WELDING SHOP.....................................................................................................................25
Paint shop.............................................................................................................................25
VFA...........................................................................................................................................26
Material Handling Department (MHD).....................................................................................28
Integrates Management System (IMS) Coordinator.................................................................29
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ISSUANCE OF PARTS TO OTHER DEPARTMENT.........................................................................29
SUPPLY OF PARTS TO PRODUCTION LINE.................................................................................30
CRITICAL PARTS.........................................................................................................................30
STORAGE AREAS.......................................................................................................................31
MAJOR PROBLEMS FACES BY MHD...........................................................................................31
RETENTION PERIOD..................................................................................................................32
MATERIAL HANDLING CUSTOMERS:.....................................................................................32
MATERIAL HANDLING FACILITIES..........................................................................................32
GARBAGE DISPOSAL..............................................................................................................32
SAFETY......................................................................................................................................33
Safety Manuals.....................................................................................................................33
SHUT DOWN ACTIVITIES...........................................................................................................34
Dealer (Customer) Network......................................................................................................34
Government Regulation:..........................................................................................................35
Law and order situation:...........................................................................................................35
Recommendations....................................................................................................................36
SCM Process Definition:............................................................................................................36
MRP System:.............................................................................................................................36
Alternate Vendors’ Pool:...........................................................................................................36
Develop Vendors Society:.........................................................................................................36
Market Intelligence:..................................................................................................................37
The E-Supply Chain...................................................................................................................37
Conclusion................................................................................................................................38
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Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan
Group Members
1. Muhammad Irfan Boota (53123)
2. Sheraz Khamisani (52887)
3. Summaya Masood (52917)
4. Waqas Imtiaz Ahmed (53000)
5. Zeeshan Latif (52999)
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SUPPLY CHAIN RIVER AND LADDER
Sourcing raw material: Paksuzuki sourcing raw material from different countries like, Japan, Korea , Thailand but most of the components are source from Japan SMC i.e. Suzuki motor company.
Further more Paksuzuki importing components from SMC Japan as CKD that means (completely knock down) it is complete assembly imported from Japan and KD as buffer.
There are three department they involving for procuring components from vendor that are as follows.
1. IPP (imports part purchasing)
2. LPP (local parts purchasing)
3. GP (general purchasing)
PROCESS OF SUPPLY CHAIN MANAGEMENT• Demand planning and forecasting
• Procurement
• Manufacturing and assembly
• Distribution
• Return
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Vendors (Supplier) Network• Pak Suzuki has played an impetus role in the engineering sector by promoting
and encouraging the downstream vendor industries in the private sector.
• Currently there are about 143 local vendors for difference parts whereas there are more than 10 foreign suppliers for some major components.
IPP
• Deals in Procurement of Components (CKD, KD, Spares), CNG Cylinders, Raw Materials (Steel Sheet, Plastic Resins, CED Paint), PMEs and their Spares from foreign sources
• LPP
• (Deals in Procurement of locally developed Components from local Vendors)
• GP
• (Deals in Procurement of Plant Consumables (Paint, Industrial Gases, Lubricants, etc.), PMEs and their Spares, Administrative Procurement (Computers, Mobile Phone, Stationery, etc.) from local suppliers.
Objective of IPP department
• TO ENSURE CONTINUOUS SUPPLY OF ALL THE IMPORTED INPUTS TO THE END USER TO KEEP RUNNING THE PRODUCTION WITHOUT ANY INTERRUPTION, WHICH ENSURES THAT:
• THE RIGHT MATERIALS ARE AVAILABLE
• AT THE RIGHT PLACE
• AT THE RIGHTTIME
• THE RIGHT QUANTITY & QUALITY AND
• AT THE COMPETITIVE COST.
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SECTIONS / FUNCTIONS OF IPP DEPARTMENT Planning
Operations
Exports
PLANNING SECTION
REGULAR / PERIODIC ACTIVITIES Inventory Planning
Ordering
L/C, DP Contracting
Price Negotiation
PLANNING SECTION
TARGETS Inventory Control:
To Maintain the Inventories at the desired optimum levels.
Improvement in Supply Chain:
Lead Time Reduction
Increase the No. of Shipments
Consolidation of Shipments
Thailand : Head Lamps, Plastic Resins
Italy: CNG Cylinders
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Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan
OPERATIONS SECTION
REGULAR / PERIODIC ACTIVITIES Shipment Monitoring & Control
Customs Clearance
In-Bound Logistics
Insurance
Marine Insurance
Motor Insurance
Fire & Allied Insurance
Miscellaneous Insurance
Custom Matters
Legal Matters (Customs)
Interaction with Different Govt. Agencies for;
Import / Export Policies
Proposals for Trade Policy (Coordination with PAMA)
Coordination with Ministry of Commerce and EDB
Coordination with FBR in respect of Custom Laws and import / export related notifications and rules.
Payment through TT Remittance
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OPERATIONS SECTION
Cost Down: Custom duty
Chemical & Consumable
CKD Cargoes
Insurance cost
Premium on all insurance policies
Premium on container transit policy
Freight cost
To switch over from C&F to FOB other than CKD cargoes
System Improvement: Shipment Monitoring & Control Procedures
Switch over from Manual Database system to AS 400 system
Customs Clearance
Reduction of Custom Clearance Time from 5 days to 3 days
To build good relationship with Custom Officials for improvement in Custom related activities.
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OTHER RELATED INFORMATION OF IPP DEPARTMENT
MODE OF PAYMENT:• LETTER OF CREDIT
• DP CONTRACT
• T/T REMITTANCE
MODE OF SHIPMENT: • By Sea
• By Air
PORT OF DISCHARGE:• Port Qasim ( 99% cargo comes at Port Qasim)
• Karachi Port
OTHER RELATED INFORMATION OF IPP DEPARTMENT
Major Shipping Line: • MAERSK LINE
• NYK
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Clearing & Forwarding Agent: • EXPRESS SERVICES
• A. SHAKOOR BROTHERS
Inland Transporter:• AL HAMMAS FREIGHT LINER
Insurance Company:• EFU GENERAL INSURANCE
EXPORTS SECTION
REGULAR / PERIODIC ACTIVITIES Commercial Exports
Spare Parts Exports
SF410 In-house assembled parts to MSC, Hungary.
SB308 & RA410 In-house assembled parts to SMC, Japan.
CBU Exports
ST 308R & RH 413 Lxi to Uttara Motors, Bangladesh
Export of Hardware for CNG Fitments
To Myanmar, Burma.
Non-Commercial Exports
Returnable Racks Export
To SMC-Japan.
Duty Draw Back
On Export of Imported parts
CBU
Spare Parts
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MAIN OBJECTIVES Arranging components from vendors at competitive prices , in right quantity and at right time
Order local components at competitive prices & look out for all possible ways to reduce cost of vendorized parts
DEPARTMENTAL FUNCTIONS Costing & Cost control
Scheduling
Parts Follow up
COSTING SECTION
REGULAR / PERIODIC ACTIVITIES Cost assessment of new developing parts.
Re-assessment of cost of developed parts for
Price revision.
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COSTING Cost assessment of new developing parts.
(activity)
• Landed Cost
• FOB
• Material cost
• Labor cost
• Tooling cost
• Over Heads
• Transportation cost
• Financial Cost
• Profit margin
• Price negotiation
Re-assessment of cost of developed parts for
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Price revision. (activity)
• Landed Cost
• FOB
• Material cost
• Labor cost
• Tooling cost
• Over Heads
• Transportation cost
• Financial Cost
• Profit margin
SCHEDULING SECTION
REGULAR/PERIODICAL ACTIVITIES Issuance of LOI.
Issuance of schedule against short supplies.
Issuance of Price Revision Letter.
Issuance of Trial/Mass production schedule.
Issuance of Monthly schedule.
Issuance of additional schedule
SCHEDULING SECTION
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TARGETS Stock Reduction
Sending Monthly Schedules Electronically
Ensuring all supplies in defined (returnable) packing mode.
Data consolidation & management for Pre ERP activities
Standardization of packing mode for multi source components
SCHEDULING SECTION
Stock reduction.
(Target)
. ABC INVENTORY TECHNIQUE
• High value items
• Medium value items
• Low value items
2. Safety Stock
3. Increase in no. of Deliveries
4. Day wise schedule
SCHEDULING SECTION
. Elimination of manual work.
6. To update vendors profile timely.
7. To update item master timely.
8. To update schedule master before issuance of schedule.
9. Define packing quantity before issuance of schedule.
PARTS FOLLOW UP
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REGULAR /PERIODICAL ACTIVITIES
Receipt of schedule confirmation.
Advance follow up by 3 & 5 days for local and
upcountry vendors respectively.
Check actual arrival against schedule.
Follow up with delayed vendors
Arrangement of parts urgently required by Production Dept.
Coordinate with Production Dept.
Maintain CKD Stock status of vendors.
Maintain stock status of imported parts by vendors.
FOLLOW UP
TARGETS
FTP (First Time Pass)
Zero Production Loss
In- Time Supply
Improvement of Problematic Vendors
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FUNCTIONS OF GP DEPARTMENT• Planning
• Ordering
• Follow Up
• Price Negotiation
• Market Sourcing
Plant Procurement Paint & Allied Materials
Consumables
Packaging Materials
PMEs Spares
Administrative Procurement Computer Peripherals
Mobile Phones
Stationery items
Janitorial items
Capital Procurement
PMEs
Computer, Printers, Scanners
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Vendor Consolidation (Target)
COST CONTROL• Elimination of Bad performing vendors
• Merger of sister concerns & uni - group companies under one name
• To efficiently manage Vendorized procurement through minimum in qty & better in performance vendors
• Creating chain of Tier-2 vendors to make the procurement cycle efficient
Advantages of single source• Only those vendors whose quality and services are outstanding.
• In time deliveries
• 100% PPM level
• Opportunity for discounts
• Lower freight cost
• Concession on other products even quantity is no issue.
• Easier to schedule deliveries. lot size, delivery date,packing,etc)
• Reducing inventory & stockless buying.
Less risk in case of rejection.
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Advantages of multiple source.• Always in bargaining position.
• Lot of options resulting cost saving.
• Good quality.
• Availability will not be an issue.
• Abnormal volume requirement not an issue.
• Lot of market info. Through multiple suppliers.
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SWOT analysis with reference to supply chainStrengths
Production capacity
Large vendor industry
Market goodwill
Weaknesses
Warehousing
Forecast Methods
Quality
Opportunities
ERP
R&D Computerization
Threats
Competitors
Innovations
Variables
JIT stockless buying advantages
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Push versus pull• Push system: material is pushed into downstream workstations regardless of
weather resources are available.
• Pull system: material is pulled to a workstation just as it is needed.
INVENTORY
• Traditional : inventory exists in case problems arise.
• JIT objective: eliminate inventory
• JIT requires
• Small lot sizes
• Slow setup time
• Containers for fixed numbers of parts
• JIT inventory: minimum inventory to keep system running
Lower inventory reduces waste
• Work in progress inventory level (hides problems).
• Unreliable vendors.
• Scrap.
• Capacity imbalances
• Lowering inventory reduces waste
• Reducing inventory reveals problems so they can be solved
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Planning process through ERPLocal parts purchasing department (LPP):
Lpp sent delivery order to vendors which is monthly basis and also known as firm orders, delivery order contains order quantity, delivery dates, packing size, minimum lot size, and starting date.
Ordering process through ERP in PSMCL
Lpp issue delivery order and part tags to vender, delivery order shows all DI’s slip detail and part tags to vender through e-mail and vender is liable to paste part tags and delivery instruction letter along with supplier in order to generate GRINS (goods receivable inspection notes).
DI’s and part tags explores all the relevant information about location, quantity.
Advantages of ERP• Better scheduling and control .
• Effective delivery order through DI Slip & Part Tag.
• No mistake in required documents for making GIRN.
• Effective application of FIFO.
• Better control on supply over delivery order quantity.
Easy handling of received materials in standard packing with Part Tag
Production planning, shop floor planning & capacity planning
Production planning of all production models under specified
time frame by considering the factors such as plant capacity,
manpower, available working time,e.t.c
Yearly activity plan
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Departmental head of production control prepares YEARLY
ACITVITY PLAN in consultation with all the sectional heads
of the department and takes approval from divisional head.
In the yearly plan, the basic activities of production control are
described. Additional assignments from management, other
than the basic jobs stated in the yearly plan, are performed
as when required.
FLOW OF MANAFACTURING PROCESSAs long as welding shop enters DPP into the system, version and
color is allocated to each chassis number into the system, which has
to be followed by the all concern shops.
PRESS SHOP manufactures sheet metal parts as per WPP.
WELDING SHOP records cowl-ok (chassis number punching
status) and WB-OK (transfer of body shells from white body line)
into the system. After that the bodies are transferred to paint shop.
WB-OK is treated as production of press and welding shop.
Paint shop records PB-ON (loading of white body shells from
welding shop) and PB-OK (transfer of painted body shells to VFA)
into the system. PB-OK is treated as production of paint shop
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VFA records AB-on (loading of painted body shells i.e., PBS on
conveyor), AB-OF (off-loading vehicles from conveyer) and AB-OK
(transfer of OK vehicles to tester line) into the system. AB-OK is
treated as production of VFA, E&T,MHD and plastic shops.
Engine & Transmission (E&T) shop and plastic shop synchronizes
their production with VFA production using information received from
AB-ON.
• E & T shop uses WPP to produce engine number into the
system. it records, EG-OF (off loading of engines from
conveyor) ,EG-OK (OFF-loading of OK engines after firing test line)
and EG-TRF (transfer of engine to VFA) into the system.
• PLASTIC SHOP uses the information of AB-ON and transfer
the required sub-assemblies to VFA lines for smooth production.
• MHD keeps close keeps close liaison with LPP (local parts
purchasing) ,IPP and production control .it uses WPP as well as
DPP to supply parts on all production lines in all departments for
smooth flow of production
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• VID records FC-ON, (entrance of vehicle on tester line) and FC-OK
(reporting as complete OK vehicle) into the system.
• PRODUCTION MONITORING & REPORTING
• loading sequence report
• monthly standard takt time report
• color wise & version wise takt time report
• color wise & version-wise production follow up
• monthly reports
• monthly activity report
• CKD stock position
• Production division manpower status
• PRODUCTION LOSS ANALYSIS REPORT
Planning section take information from ANDON system to prepare
and maintain the summarized production loss analysis report, which
describes the reasons of production losses during the whole month.
• MONTHLY ATTENDENCE RESULTS
Planning section collects the daily attendance results from all
departments of production division and compiled these results in
daily plant attendance report.
• MONTHLY PRODUCTION RESULTS
Planning section prepares the monthly production results report for
review of DMD. this report includes production results of AB-OK &
FC-OK, reasons of
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Material Handling Department (MHD)FUNCTIONS
• Receiving
• Storage
• Supply to the Production Line
RESPONSIBILITIES
• Head of Department
Head of department is responsible for monitoring / supervising overall operations of Material Handling Department .
• Section In-charge
Section In-charges of department are responsible for conducting smooth production operation. He is responsible for carrying out all activities in respect of safety, quality, productivity and resolve administrative affair.
• Shift In-charge
Shift In-charge is responsible for shift production and to resolve abnormalities related to production.
RESPONSIBILITIES
• Department Coordinators
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Integrates Management System (IMS) Coordinator IMS Coordinator of department is responsible for conducting all concerned departmental activities according to IMS
Quality Coordinator
Quality coordinator assures and co-ordinate the production of desired quality process.
Safety Coordinator
Safety Coordinator is responsible for conducting all departmental activities and operation in safe and healthy working environment
Kaizen Coordinator:
Kaizen coordinator of department is responsible for achieving kaizen targets of shop and motivate worker for it.
ISSUANCE OF PARTS TO OTHER DEPARTMENT1. The MHD receives requisition called TV (Transfer Voucher) from the demanding
Department. Then after checking of stock level it approves to deliver the parts.
2. The same TV goes to the CKD receiving section for adjustment of stocks.
3. All delivered parts compiled in the end of the month to place the order for replenishment of stock.
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SUPPLY OF PARTS TO PRODUCTION LINE 1. Material Handling department ensure FIFO (first in first out) of the parts.
2. The shop wise staff have deployed for the supply of parts.
3. Material Handling Department has the separate staff for the supply of Local parts and the CKD parts for each shop.
4. Parts wise distribution has done amongst the workers so that every body knows which vehicle and line part he has to supply.
5. There are specified and general trolleys have been designed in order to carry more parts in less time.
6. Parts filled in trolleys & bin at un-boxing area and then push it to the desired place.
7. Bins system also introduces by MHD for small parts either it is local or CKD.
8. Waste generated during un-boxing properly disposed off in trolleys by workers of MH department.
CRITICAL PARTS The Local parts which are not sufficiently present in the stock, or in other words their stock is going to be empty in one or two days (depend on their need) are subjected as Critical Parts.
• Each and every day the list of Critical parts made by the MHD and then sends to the concern departments such as: PID (Parts inspection department), VPS (Vendor parts supply).
• It is done in order to ensure the proper supply from the vendors This list depends upon the Vendor also either it is the vicinity of Karachi or outside Karachi.
• There are some parts that get received every day because the vendor is quite stable they can give us daily supply and secondly these parts are in big size and acquire a lot of space that’s why we do not put them in Critical List.
• The Up Country vendors take more time to supply their parts, that’s why their stock level taken more than the Karachi vendors.
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STORAGE AREAS • The storage areas are properly defined to allow orderly and safely storage for
various categories of parts such as CKD, KD and Local parts.
• The storage areas of all the respected shops have been defined.
• The CKD and Local parts have their separate designation areas.
• The parts information tags have displayed according to the parts setting on the storage areas. Each part has its separate location as well. All parts in these areas are clearly identified and arrange in groups according to their type.
The storage areas need proper cleaning and maintenance in order to prevent damages and deterioration of stored items.
MAJOR PROBLEMS FACES BY MHD LINE REJECTION
It causes by the mishandling of worker (unskilled), or the manufacturing fault should be one case.
DEFECTED & SHORT SUPPLY
Some times MHD gets defected supply or the quantity you are getting is not up to the specification. It also causes the shortage.
PARTS ISSUANCE TO OTHER DEPARTMENT
Parts issued to the other departments because of some unavoidable situations.
MATERIAL HANDLING DOCUMENTATION
Various records generated in the MH Department during the normal activities. The details are documented on the “Master Document List”. Such as
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RETENTION PERIOD
MATERIAL HANDLING CUSTOMERS: VFA (Vehicle Final Assembly Area).
Welding Shop.
Engine Shop.
Paint Shop.
Plastic Molding Shop.
Marketing Department (Delivery Yard).
MATERIAL HANDLING FACILITIES Fork Lifters.
Erica.
Tow Truck (Stacker).
Specified Trolleys.
General Trolleys.
Racks.
Flow Racks.
Gravity Base Roller Conveyor.
TYPE OF WASTE / GARBAGE
GARBAGE DISPOSAL
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SAFETY
Safety Manuals
Bolts
Tin Boxes
Cartons
Polythene Sheets
Polythene Bags
Thermo pole
Papers
Wooden Boxes
Wooden Ply
Nails
Rubber Boots
Cotton Gloves
Card Board
Damaged Bins
Damaged Trolleys
Damaged Racks
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SHUT DOWN ACTIVITIES • Stock Taking (Audit)
• Maintenance
• Special Assignments & Projects
ROLE OF QUALITY ASSURANCE
PARTS INPECTIONS DEPARTMENT:
PID checks the quality of those components which are delivered by vendor or supplier through JIGS and FIXTURE in order to ensure PSMCL standard.
Dealer (Customer) NetworkThe dealers of Pak Suzuki are situated across the country to cater all the important areas. These provide sales, service and genuine Suzuki spare parts.
At present there are 69 dealers of Pak Suzuki stretched in all major cities of Pakistan. These dealerships make up the countries
largest vehicle after sales service and genuine spare part network.
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Government Regulation:Monetary policy of the government effect the automobile market because of the money supply and the exchange rate directly effects to the leasing and financing sector.
With out any prior notice or discussion with the automobile assemblers government has changed the duty structure that will alter the cost of the product. Government’s Tax policies are not consistent which causes uncertainty in market. This results in turbulence in actual demands levels.
Law and order situation:Law and order situation is not good as compared to the previous years. The incident 27th December compelled us to think about the change in planning to keep buffer in the parts order that also increase in carrying cost.
Transportation of the parts suppliers and distributors has problems. Two distributors have located at Front road in Korangi Industrial area totally burnout by the miscreants.
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RecommendationsLobbying with Policy Makers:
Should focus on important government officials and policy makers to achieve following goals...
• Know upcoming policy
• Mold policies in own favor
SCM Process Definition:Pak Suzuki should adopt the concept of suppliers’ supplier to customers’ customer and this will be possible when company expand their SOP for more parts of Supply chain processes.
MRP System:Pak Suzuki is practicing MRP (Material Resources Planning) system and they are maintaining their material planning on excel. In our opinion Pak Suzuki should consider more advance software for their facility and it is being informed us that they are about to introduce ERP (Enterprise resource planning which will be based on AS-400.
Alternate Vendors’ Pool:Some times company face shortage of supply due to non availability of materials. Several times single source vendor create this problem to increase cost of materials therefore PAKSUZUKI try to minimize vendors monopoly by introducing new vendor for same parts.
Develop Vendors Society:
In the consideration of the law and order situation especially in Karachi Pak Suzuki is also emphasizing to develop a vendor’s society for the purpose they are lending land to their vendors (importantly critical parts’ vendors). Pak Suzuki offer land on the basis of lease.
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Market Intelligence:Pak Suzuki not having the Market Intelligence department which provides the information about the market changes, competitors activities and Government policies which also effect the entire planning of the organization.
The E-Supply Chain• High speed, low cost, communication and collaboration with your
customers and suppliers are critical success factors to more
effectively manage your supply chain. Then, the e-Supply Chain is
very likely in your future. The very essence of Supply Chain
Management is effective information and material flow throughout a
network of customers and suppliers.
• Good supply chain practitioners know that information should be
passed on only to those who need to know it, in the form they need
to have it.
• Demand information, inventory positions, order-fulfillment, supply
management and a whole host of other information exchange
activities will change how we sell products, supply products and
make and receive payments for goods and services.
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Conclusion
SCM is now a days one of the greatest emerging technological
implication. Supply chain management (SCM) is a concept that has
flourished in manufacturing, originating from Just-In-Time (JIT)
production and logistics. Today, SCM represents an autonomous
managerial concept, although still largely dominated by logistics.
SCM endeavors to observe the entire scope of the supply chain. All
issues are viewed and resolved in a supply chain perspective, taking
into account the interdependency in the supply chain.
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