supply chain of Millat tractor


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supply chain of Millat tractor

  1. 1. Project on Supply chain Management Page 1 2014 Submitted To, sir salman Arshad Department of Business Administration university of Sargodha Millat Tractors (Pvt) Ltd 5/30/2014 A Report On supply chain Management
  2. 2. Project on Supply chain Management Page 2 Omer farooq 11-14 Umair shoukat 11-25 Muhammad Khalid 11-26 Hafiz Muhammad Atif 11-28 Tayyab Ali 11-37 Department of Business Administration University Of Sargodha A Report of supply chain Management on Millat Tractors Limtd M I L L A T T R A C T O R Group Members Figure 1
  3. 3. Project on Supply chain Management Page 3 All acclamation to Allah who has empowered and enabled us to accomplish the task successfully. First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We would like to express our sincere and humble gratitude to Almighty who’s Blessings, help and guidance has been a real source of all our achievements in our life. We would like to admit that we completed this project due to the guidelines of Sir Salman Arshad who pray for our success. Specially thanks to Prof.Dr Maqbool Hussain sail, Chairman Dr Khalid Mustfa & coordinators of Sir Hammad Hassan Mirza who provide the platform to explore this knowledge. Last but not the least our team efforts, support, cooperation and encouragement showed by each member in the group with each other.  ACKNOWLEDGMENT
  4. 4. Project on Supply chain Management Page 4 This project is dedicated to The personality that is most loveable and respectful for us and his life is full of gaudiness for all of us.  DEDICATION 
  5. 5. Project on Supply chain Management Page 5 Contents Page Section Page Number Introduction 06 Organization structure 07 Products of Millat Ltd 08 Supply chain structure………………………………………………………………….09 Material requirement planning (MRP) 10 Major Vendors 11 Tractor Assembly plant…………………………………………………………………11 Raw material & assembling of Tractor 12 Engine Assembly shop 13 Assembly of Other part of tractor 14 Distribution department 16 Logistical Driver 19 Cross functional Driver 20 Target Customer & competitive strategy 22 Suggestion &Recommendations………………………………………………………..22 Conclusion………………………………………………………………………………23 Summary………………………………………………………………………………..24
  6. 6. Project on Supply chain Management Page 6 Introduction Millat Group is Pakistan’s leading engineering concern in automobile sector & has a history that spans almost half a century. Millat Group encompasses four major companies MILLAT TRACTOR LIMITED, MILLAT EQUIPMENT LIMITED, MILLAT INDUSTRIAL PRODUCT LIMITED and BOLAN CASTINGS LIMITED. Today the group manufacturers: Tractor under licensing agreement with Massey Ferguson, UK (owned by AGCO, USA), Diesel Engine, Diesel Generating Sets and Prime Movers, Forklift Trucks under license from M/s Anhui Heli Co. LTD. China, a range of Agriculture Implements, Gears, Batteries and Automotive castings. The company is also dedicated to customize its products as per customer’s requirements Millat Group has played a pivotal role in transfer of technology & transformation of the fledging local light engineering sector into a robust, vibrant, quality conscious Auto Vending Industry. The fact that Millat Tractor has a market share of more than 50% and indigenization level of 90% is a testament to the efforts of Millat Group over that last 47 years. 1.1. Millat Tractors Ltd Millat tractors Ltd MTL- an ISO 9001 :2008 certified company for its assembly & material testing & gauge control laboratory-is Pakistan’s leading engineering concern in automobile sector. It manufactures MF-240, MF-350, MF-260, MF-375, MF-385, MF-385 4WD, Implements, Prime movers, Forklift Truck & Power Generation Sets 1.2. Bolan Casting Ltd In 1993, the Company in collaboration with the employees of Bolan Casting Limited (BCL) acquired the management control of Bolan Casting Limited by purchasing 51% of the Company shares offered by the government as part of the process of privatization. BCL provides major casting for Automobile Industries and also 50% of the Company requirements are met from it. Since acquisition of the control by MTL, BCL has also performed very well and has been on a growth pattern. 1.3. Millat Equipment Ltd Millat Equipment Limited is an associated Company and was incorporated in 1993 as a private limited Company under the Companies Ordinance, 1984, and was converted in to unquoted Public Limited Company on April 20, 2004. The Company is engaged in the business of manufacturing of automotive, agricultural and industrial vehicles, parts and components thereof. 1.4. Millat Industrial Product Ltd Millat Industrial Products is a subsidiary of the Millat Tractors Limited. The Company is engaged in the business of manufacturing and sales of vehicular, industrial and domestic .
  7. 7. Project on Supply chain Management Page 7
  8. 8. Project on Supply chain Management Page 8 Vision Millat to be a global group of companies, recognized for a range of quality products with innovative design capabilities. Mission Millat to be a global group of companies, recognized for a range of quality products with innovative design capabilities. To be market leader in agricultural tractors and machinery, building company’s image through innovation and competitiveness, grow by expanding market and investing into group companies, ensuring satisfaction to customer and stakeholders and to fulfill social obligations. Core Values • Our Customers are our first priority. • Profitability for the prosperity of our stakeholders that allows us to constantly invest, improve and succeed. • Corporate Social Responsibilities to Enrich the Lives of community where we operate. • Recognition and Reward for the talented and high performing employees. • Excellence in everything we do. • Integrity in all our dealings. • Respect for ourcustomers and each other. Millat Tractors Limited is manufacturing a large variety of agriculture equipment. The major share of its product is of tractors. Some of the major products of Millat Tractors Limited are as follow: Tractors  MF-240  MF-260  MF-350  MF-350+  MF-375  MF-385  MF-385 (4WD) Products of Millat Tractors Limited
  9. 9. Project on Supply chain Management Page 9  Supply Chain of Millat Tractor Ltd. At the above we discus supply chain of Millat tractors which is draw in form of diagram Sale forecast INPUT Material requirement planning(MRP) Suppliers Manufacturin gAnd Assemblingat MTL Dealers Customers Dealer Historic data Statistical tool Model production schedule (model, SOR Booking) ERP (Enterprise resource planning) IFS(Industrial financial software Supplier schedule
  10. 10. Project on Supply chain Management Page 10 Purchasing Background of Millat Tractor (Requirement) Requirement related to the purchasing material is given to purchase department in the form of purchase order.(PO).purchase order consist of part no ,order quantity ,colour,size,price etc. All these information relating to the material is sent to the supplier.  Part No.  Order Quantity  Price Material Requirement Planning (MRP) MRP start from sale forecast on the base of future sale, and then we generate MRP. Sale forecast estimated though input. Input taken from  Dealer  Historic Data  Statistical Tools  Master production schedule (MPS) After collecting the data relating to the sale forecast, the whole data is sent to the MRP,then we rating the supplier on the basis of supply, quantity and price. After rating the supplier whole data is sent to the ERp (Enterprises resource Planning).For this purpose ERP use the software of IFS (Industrial financial system). By using IFS ERp making a report and calculate the exact MRP within two Hours.Thse MRp generated Monthely. On the bases of MRp, we generate Supplier schedule. IN supplier schedule we attending the meeting of different supplier and make a final deal as per to the order. These are the Supplier who provides the following material. General Tyer & Panthaer ===== Provied the tyer ( daily) Pakistan engreeing spring===== Spring (Monthly) Electro Polymer============ Head Light MEL=============== Gair Sazgar============= Rim Arrow light========Alson Meter,Meter Requirement SuppliersPurchase Department Purchase Order
  11. 11. Project on Supply chain Management Page 11 They have detailed information of their suppliers so they never deceive to him regarding their quality, price, total number of suppliers is 240 which include suppliers and sub suppliers these are the local suppliers and 40 suppliers from which we import raw material from other country like Brazil, turkey, china and Dubai. Major Vendors 1. Bolan Casting 2. Millat Equipment Ltd. 3. KSB Pumps 4. Chenab Castings 5. Sino Diesel 6. Sturlings 7. Millat Electric Ltd. 8. General Tyre & Panther ===== Provide the tyer 9. Pakistan engreeing spring===== Spring 10. Electro Polymer============ Head Light 11. MEL=============== Gaire 12. Sazgar============= Rim 13. Arrow light======== Alson Meter They have detailed information of their suppliers so they never deceive to them regarding their quality, price, total number of suppliers is 280 which include suppliers and sub suppliers these are the local suppliers are 240 and 40 supplier from which we import raw material from other country like Brazil, turkey, china and Dubai. Tractors Assembling Plant of Millat This is the main plant of Millat Tractors. All the components of tractor carried from different locations are assembled herein this plant all the parts of the tractor are assembled in assembly lines. We worked as interns here for five days. Production capacity of 3 cylinders is 59 tractors per shift and for 4 cylinders it is 36 tractors per shift. They work in double shift. Tractor Assembly Shop Start from axle assembly on one side and receive a computer tractor from the other side. The whole assembly process is manual. The process can be categorized in seven stages narrated below 1. Axle assembly 2. Plough assembly 3. Plough testing plant 4. Gear box assembly 5. Engine attachment
  12. 12. Project on Supply chain Management Page 12 6. Washing and drying assembly 7. Final stage Pre-delivery Testing Now the tractor is ready for trial run, after having trial run, any fault e.g. leakage of oil, missing of any nut or bolt, tightening of nut or bolt etc is identified and rectified. Raw Material & Assembling of Tractors. These are the overview of tractors manufactured and assembled Important parts of tractor are  Tyre  Engine  Body  Excel Following are other raw material Gaire, Head light, screw, seat streaing etc. Millat tractor’s has setup his own engine plant Production Capacity of EAP plant is 59 engines of 3 cylinder type and 36 engines of 4 cylinder type per shift and there is double shift for the engine assembly plant. Production is increased on demand. Engine assembly plant (EAP) has been divided into 4 sections which are as follow. 1. Segregation 2. Engine Assembly Line 3. Engine testing or Test shop 4. Rectification Section
  13. 13. Project on Supply chain Management Page 13 Engine Assembly line Engine Assembly line is a line in which all the parts of engine is fitted with Engine block. This line starts with block and complete on full engine. The assembly line is divided in to different operations which are given below. The operation line starts from operation 10 and completes on operation 100. Engine Test Section: Finished Engine Store All the engine that passes inspection test are sent to Finished engine Store and further moved to Tractor Assembly Plant according to production requirement.
  14. 14. Project on Supply chain Management Page 14 Assembling of others Raw material of Tractors. This will define the different processes being held in different sections of TAP.This is the most important plant of the tractor industry. There are four important sections of tractor production. These are as follows:  Segregation and Degreasing  Assembly line  Sheet Metal Washing and Paint Shop  Test shop/Rectification area OP.10 OP.20 OP.30 OP.40 OP.50 OP.60 OP.70 OP.80 OP.90 OP.100 Washing and Degreasing Segregation components Fed to Line EngineTest section Not Ok Ok Tractor Assembly Plant
  15. 15. Project on Supply chain Management Page 15 1) Segregation and Degreasing In this section, components of tractor are counted and supplied to all stages of production in racks through trolleys and folk lifters etc. Components are vapor degreased here by 80 degree centigrade of water and by blowing of air. Cleaning, packing and opening of wrappers of components are done here. 2) Assembly line After segregation and degreasing of components, they are distributed to the assembly line. There are 10 stages in assembly line as op 10‐100. But we will discuss only the major three stages of assembling and paint of our concern product i.e. Tractor. a) Rear axle build b) Chassis build c) Final build 3) Sheet Metal Washing and Paint Shop Chassis paint shop contains three sub sections. 1. Grey paint on chassis 2. Red/green color coating 3. Heating over 4) Test Shop/ Rectification Area This section checks the recently manufactured tractors for the very first time. Technicians test drives each one of the tractor to ensure the proper working of each component. If any minor trouble is found, skillful workers take it into notice right on the place. For major problems tractor is sent to another section. In this area tractor is thoroughly checked and tested. The entire nuts, bolts, gauges, meters, oil and fuel lines are checked. Roller machine test is done for 10 minutes to check the tractor on high RPM and to check any leakage and brakes are adjusted. After maintenance, tractors are also sent to road tests. Touch Up Paint Booth If paint is missing on any of the components, it is repainted in touch up paint section. Pre-Delivery Inspection (PDI) PDI and segregation are not considered the part of TAP but they are former and later stages of TAP.This is basically the job of marketing department. Before handing over the tractor to its owner, it is assured that it is functioning properly and having no problem. This department again performs total checkup of tractor and if there is any fault then it is sent to major rectification department.
  16. 16. Project on Supply chain Management Page 16 After minor and major rectification and also after passing the paint n retouching section, pre delivery inspection is done on the tractor in a PDI dept. If tractor has passed all the sections then a PDI sticker is applied on it to ensure that marketing section can now hand it over to its owner.  DISTRIBUTION Booking Millat tractors have a vast dealership network of branches all over Pakistan to facilitate its valued customer .the company encourage all its respected customer to purchase MTL products from its authorized dealers situated in their respective. Booking of MTL products is done by different following ways. Booking through cash Requirements for booking through cash are as under check the price of the tractors /equipment with the dealers copy of CNIC payment through demand draft, order and transfer in MTL”s account DEARLER BOOKING Booking through loan ZTBL, commercial bank Distributors of Millat Tractors Pvt. (Ltd)  SAIGOL MOTORS Owner: Abdur Razzaq Saigol Address: Pir Wadhay Road, Near West ridge Telephone Exchange, RAWALPINDI Phone: 051-5473617-18 Mobile: 0333 - 5114689 Email:  AHMER BROTHERS Owner: Ch. Ahmer Khurshid Address: Main Bazar, ATTOCK Phone: 057-2611808 Mobile: 0321 - 5715700  HAJI SHER MUHAMMAD and BROTHERS Owner: Haji Din Muhammad Address: Kohat Road, Near Al - Syed Eye Hospital, FATEH JANG, Distt. Attock
  17. 17. Project on Supply chain Management Page 17 Phone: 0300-9555611 Email:  IQBAL ENTERPRISES Owner: Muhammad Iqbal Address: Talagang Road, CHAKWAL Phone: 0543-541863. 601922 Mobile: 0300-5512876  KASHMIR TRACTORS Owner: Hafiz Awais Address: Jada More - G.T. Road, JHELUM Phone: 0544-623437.627264 Mobile: 0333-5829121 Email:  ISHTIAQ TRACTOR HOUSE Owner: Ishtiaq Ahmed Address: Near Mangla By Pass, G.T.Rd. Dina,DINA, Distt. Jhelum Phone: 0333-5825446 Mobile: 0333 - 5804645  FRIENDS CORPORATION Owner: Mohammad Tariq Tarar Address: Massey Chamber, Phalia Road,M. B. DIN Phone: 0546-501502 Mobile: 0300 - 7740345 Email:  ZESHAN TRACTORS Owner: Mohammad Pervaiz Address: Al Nabi Colony, Jalal Pur Jatta Road,GUJRAT Phone: 053-3601374 Mobile: 0307 - 7775995 Email:  HASSAN CORPORATION Owner: Mohammad Ijaz Cheema Address: 3 - Sialkot Road, GUJRANWALA Phone: 055-3859541, Mobile: 0300-9627686 Email:  AL-JABBAR TRACTORS Owner: Sh. Mohammad Iqbal
  18. 18. Project on Supply chain Management Page 18 Address: Chowk Kotli Behram, Wazirabad Road,SIALKOT Phone, 052-4265600 Mobile: 0300 - 8612242 Email:  ZAHID BROTHERS Owner: Mohammad Khalid Address: Ikhlas Pur Road, SHAKARGARH, Distt. NAROWAL Phone: 0542-450989,  Mobile: 0300-8466416, Email:  USMAN ENTERPRISES Owner: Mohammad Iqbal Dagia Address: Sheikhupura Road, Near Millat Tractors Ltd.,FEROZEWALA Phone: 042-7924248, Mobile: 0346 - 4277777, Email:  GLOBE AUTOMOBILES, Owner: Syed Shaukat Ali Shah Address: 13-Lake Road, Opposite University Ground,LAHORE Phone: 042-7240327, 042-7310827 Mobile: 0300 - 8020282 Email:  ZAMINDAR TRACTORS AND EQUIPMENT Owner: Syed Shaukat Ali Shah Address: 50. 8 KM. Ferozpur Road, KASUR Phone: 049-2771726 Mobile: 0300-8422394, 0345-8422394, 0321-8422394 Email:  KISSAN BROTHERS, Owner: Mohammad Ali Dogar Address: Fazal Muhammad Khan, Coy. Near Steel Bagh,KASUR Phone: 049-2762828, 042-7916302 Mobile: 0300-6599094, 0300-8400917  KHAWAJA AUTOS, Owner: Kawaka Manzoor ul Haq Address: Lahore Road, OKARA Phone: 044-2523593, 044-2524494 Mobile: 0300-6954739, 0301-7330616
  19. 19. Project on Supply chain Management Page 19  SHABBIR TRADING COMPANY Owner: Ch. Shabbir Ahmad Address: Pakpattan Road, DEPALPUR Distt. OKARA Phone: 044-4541222, 044-4541555 Mobile: 0302-8506666, 0300-6960262 Email:  SAHIWAL TRACTOR, HOUSE PVT. LTD Owner: Haji Mohammad Saeed Address: Railway Road,SAHIWAL Phone: 040-4463855, 040-4226029 Mobile: 0321-6917233, 0300-9690211 Email:  KISSAN TRACTORS HOUSE, Owner: Fareed Akbar Hashmi Address: Baba Fareed Chowk Sahiwal Road, PAKPATTAN Phone: 0457-372920, 042-7931418 Mobile: 0301-7256880, 0321-9478644 Email:  AHMED K. AGENCIES, Owner: Khawaja M. Shumail Akram Address: Kutchery Road, JHANG Phone: 047-7613960, 047-7621117 Mobile: 0300-6509030 DEALERS LOGISTICAL DRIVER Transport or logistics At the time of conducting interview they clear us that they have no personal transportation on the behalf of company. Transportation is responsibility of suppliers and they fix any deal then they clear to supplier about transportation and they provided cost according to unit which comes into truck or supplier vehicle. Own van used at the time of emergency, one time they take material from away far and supplier van spoiled and they send his emergency van because they need material to complete order and target, so clear is they are not use proper in source and outsource of transportation. It is completely responsibilities of suppliers. Dealer also use own transportation to carry truck at the dealership point.
  20. 20. Project on Supply chain Management Page 20 Inventory After purchasing the raw material from different supplier data should be store in inventory room.Inventoy are classified in to different classes A, B and C. A =========== 5 days B===========1 Month C========== 3Month A level inventory used daily bases and finished within five days so, our more focus into A level inventory .when inventory issued to the different department on the bases of MRp the required material issued to relevant deptt through inventory card and all data should be maintain in record form through IFS software use within Millat tractors till the gate . When inventory reached at gate then proper verification is done related to order and requirement if meet then check its quality by quality department. After issuance quality card “yes “then it’s should be enter into inventory rooms on specifics places. They maintain flexible inventory for three months .if there is any sudden requirement create then they take material from that inventory and also contact with suppliers in time of shortage. These are the components like Engine Blocks, Sump, Transmission Case, Axle Housing, Hydraulic Lift Cover, and Front Axle Support. FACILITIES The Company made a strategic decision right in the beginning to bring those manufacturing facilities in- house for which capabilities did not exist in the country and for parts which required high precision and investment. Therefore, in 1984, sophisticated manufacturing facilities for the machining of intricate components were set up. These were previously not available in Pakistan. Currently, critical components like Engine Blocks, Sump, Transmission Case, Axle Housing, Hydraulic Lift Cover, Front Axle Support and Centre Housing are all being machined most successfully in-house at MTL from locally sourced castings. At production site Millat tractor have lot facilities manufacturing unit, assembly unit, engine unit. And storage site they have their own big warehouse to store final product . they have each facilities regarding to produce a final tractor . these are the following facilities Bolan Casting Ltd Millat Equipment Ltd Millat Industrial Product Ltd Millat Tractors Ltd CROSS functional driver. INFORMATION Information is best source of Millat tractor to know market situation and at which level of each element of their supply chain are fall. They know about all aspect of supplies, manufacturing
  21. 21. Project on Supply chain Management Page 21 ,distribution and market customer. They draw information from different medium, on that basis they make decision regarding to handle current hurdles. They get information in through feedback to know performance level of workforce. They get information from suppliers about raw materials shortage ,quality level, size and shape regarding per unit cost charged by supplier using transport so supplier tell us about material when easily available. Millat tractor have built strong network regarding collecting information about each activity. They get information from supplier, manufacture, employees, Dealers, customer, conducting some seminars like event market so by using collecting information they make future planning and decisions. They sent information in meeting, by using Technical source like Email, mobile phone, they install own software like IFA to save industrial information Sourcing Sourcing mean “who” will perform a particular supply chain activity such as production, storage, transportation or the management of information. They have separate unit to perform activity started from material management till market division so for that purpose they hire more qualified and experience staff. They create position in each unit who will supervise workforce and driver information to next unit. There total workforce 900 from which 200 is permanent and 700 is on contractual basis they get labour from contractors. They have material management deptt which have complete record about supplies chain activity at the perform supply chain activity till customer all step include these are the sources which is use to deliver tractor to final customer. They are not doing outsource regarding employee they built their own source on base cooderation. PRICE We asked a simple question how they select price of tractor. They told us that the final price of the tractor is set by the top level management in the final board meeting. Tractor price is set by the following method. Firstly the engineer told the finance manager about the total cost incurred on the manufacturing of tractor then finance manager decide the price of tractor by analyzing the current inflection rate, profit margin and different other factors then he refer it to the upper level management to father addition (such as achieving the current year target of profit). They clear us when tractor is completed form then each document, report and model number which consist each cost of tractor from raw material to final tractor. This information should be delivering to the top level management and they update from market situation and competitor strategy. CEO of tractor Millat conduct a meeting with management to make final price of tractor .in meeting they select final price level according to model like model 240 prices is 752000RS and model 385 price is 1800000.
  22. 22. Project on Supply chain Management Page 22 TARGET CUSTOMER Institutions (TMA, Army,) Framer , Landloard COMPETATIVE STRATEGY Competitive strategy of Millat tractor is to accomplish vision along with mission and they have strong Dealer network, and vendor network. They more focus on sustain and continuous improvement in quality. According to the analysis of MLT, after securing 52% share of total tractor market in Pakistan the company has adopted sustain able competitive strategy against the rival. Currently the company is at maturity state to sustain its market position it introduce new products and company is also increasing it’s after sale services to satisfying customer. 1. The importance of Quality Management System should be realized at all levels starting from the top. There is a need to realize that the real benefits of QMS are not in certification but in the proper implementation and use. A genuine visible effort in this regard would be very helpful in making other people believe in this globally successful system. 2. The focus should be on the proper implementation and utilization of the Enterprise Resource Planning system. Proper training of personnel involved in this program is necessary. We have observed that company employs don’t take it seriously enough for various reasons. 3. The company should put more effort in taking care of its workers especially daily wages and contractual workers so that they are satisfied with their jobs and give more quality output. These workers are very hard working and financial situation is really a very serious distraction for them. 4. Marketing is called s back bone of an organization. a poor marketing of a good product can disaster results while good marketing of bad product can make me rich other rights. There is a lot of room of improvement present in the marketing development regarding marketing research to identify where the problem (what is the reason of sales decline) & which section of an organization is weak dealing with the customer in this regard special Suggestions and Recommendations
  23. 23. Project on Supply chain Management Page 23 improvement in booking section is required. The best way at booking section. The problem is due to the job of persons at booking section. To show the problem course covering the topic how to deal with the different people should be organized. 5. They should change their thinking that they will always remain leader of tractor industry but they should understand that every business has to face the decline stage as well in order to remain at maturity, it is necessary they should capture those markets in which they still did not penetrate & The competitor analysis thoroughly. 6. Another area which demand attention is that of job rotation. Employees are not so much productive, motivated and efficient because of their routine job. 7. The delivery time period at MTL is 21-days arrangement should be made to decrease the delivery time so that service level can be improved. 8. More focus should be put on the improvement in the processes rather than keeping them as they are now. 9. The Quality Circles should be introduced among workers so that their participation in the improvement process increases and they really own this process. 10. Although there product lines are good in Pakistani industry, but if it is compared to foreign established industries then there product numbers are very low. 11. Worker safety should be taken under consideration at the TAP (tractor assembly plant). Millat should work on getting certification for the employee safety. 12. Different machines performing the same operation must be checked and their number must be reduced. 13. The production efficiency could be increased by increasing worker’s efficiency. This can be done by giving some kind of incentives to the worker. 14. Proper orientation should be given to students for internship. 15. Research work should be with the help of university students. 16. There is need of preventive maintenance in machining plant and tractor assembly plant. 17. There is need of technical innovations in the plant. 18. MTL should be quality conscious rather than quantity conscious. 19. QA dept. should work more precisely and accurately to ensure the best quality of the vendor’s product. Millat tractor limited as a leading and pioneer organization is doing very well. Their plans are very well organized, managed, according to circumstances and they avail the opportunities very effectively. We are pretty sure that company has ability to achieve its goals as stated in vision statement. After our internship in Millat Tractors Limited and doing market analysis we reach at the same conclusion that they are "LEADERS ALL THE WAY". MTL should not compromise on the quality. There must be a strict check and balance on QA dept. if MTL wants to be at the Conclusions
  24. 24. Project on Supply chain Management Page 24 peak. The management is very effective and their plans are mostly about their future. Therefore we conclude that Millat Tractor has going on concern and it will progress further and they have ability to overcome risks and prosper. Summary Millat Group is Pakistan’s leading engineering concern in automobile sector & has a history that spans almost half a century. Millat Tractors Limited MTL is market leading industry of agricultural tractors & holds above 50% market share. We carried our work according to the given schedule. The activities assigned to us were very precise and intellectually challenging. The activities include are; complete visit to market and dealership network to know about the market policy of MTL, the current demand of tractors & market position of MTL, after sales services provided to the customers, visit dealer’s workshop to know about the quality of the Product. Viewing of machining of different parts, Engine assembly, Tractor assembly and different operations after which the real product comes out. The course of action adopted to complete these activities was to first understand the Assembly machines and then the assembly of the parts .These activities were done in the supervision of the assigned engineers. Our activity also includes to keep an eye on how QA dept. is working and how this dept. make it possible the best quality product. The response we got from market dealers about the quality of the product is fairly satisfactory. We also conducted many survey in different departments during our internship at MTL regarding material flow, health and safety conditions and mishandling of tools and parts. According to our observation and analysis the reason behind the poor quality of the product is due to the poor materials supplied by the vendors and inefficiency of QA dept. We found that customer’s perception about MASSEY FERGUSON is good and irrespective of the quality customer is always willing to purchase MASSEY FERGUSON. Currently, high price is the major factor for decrease in the tractors demand. As Pakistan is an agriculture country, Govt. should implement such policies in agriculture sector that favors farmer. Govt. should right off the tax on tractor on immediate basis in order to provide support to this falling sector.