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Supply chain management practice by Spining Industry.


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Project has been done on SCM in spinning industry located in north Indian Textile hub-Panipat

Published in: Business
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Supply chain management practice by Spining Industry.

  1. 1. Welcome to Major project presentation on “SUPPLY CHAIN MANAGEMENT”
  2. 2. INTRODUCTION Project statement “To study the supply chain management practiced by small scale spinning industry and identifying key impacting factors of their SCM system.”
  3. 3. INTRODUCTION Project objectives 1. To study the existing SCM practice. 2. To identify the key impacting factors in their SCM. 3. To investigate the relative strength of those factors 4. To give a SWOT analysis of their SCM. 5. To give guidelines to practitioners to redesign their strategy.
  4. 4. INTRODUCTION Theoretical and methodological framework Initial work 1. Questionnaire design 3. Pilot study 4. Surveying Information collected 1. Basic profile 2. SCM activities 3. Focusing factors Discussion and conclusion
  5. 5. LITERATURE REVIEW Basic supply chain concept
  6. 6. LITERATURE REVIEW SCM structure Ult. supplier Supplier Manufacturer Customer Ult. customer Service provider 1. IT 2. Bank 3. Market Analyst 4. Product design 5. logistic
  7. 7. Literature review Actors in supply chain management: Field of acting in supply chain management: Suppliers Manufacturers Customers Service provider Logistic Information sharing Inventory Manufacturing Sourcing
  8. 8. LITERATURE REVIEW Scholar’s work: McMullan (1996) reported on a survey carried out to assess the Supply Chain Management practices in Asia Pacific. He found that many firms will be required to change their organizational structures, relationships with supply chain members and performance measurement systems. Quayle (2003) conducted a survey on SCM practices in UK industrial SMEs. He found that there was a lack of effective adaptation from traditional adversarial relationships to the modern collaborative “e” supply chains. He again identified the issues that organizations need to improve the performance of their supply chain. DR Ratnajeewa and Lokugamage ( 2015) conducted a survey to identify Factors Affecting Supply Chain Management Effectiveness Sri Lankan textile industry. According to their analysis five factors strongly affect to the effectiveness of supply chain management of Srilankan Textile industry. They are planning, quality, sourcing, communication and procurement. Organizations are suggested to use planning tools and communication tools to improve sharing of information among supply chain partners which helps increase the transparency and planning tools such as MRP, MRPII, ERP, VMI, and DRP to improve the planning process.
  9. 9. LITERATURE REVIEW Research gap: Research in “Supply Chain Management” on Textile industry Small and medium scale industries Textile cluster-OverallSCM study on Specific cluster SCM research on specific entities in a cluster
  10. 10. Not Yet……….. Why? Now what? Lets know about Panipat!!! Munir So, Now lets do some work? I mean field work? Welcome to Panipat Ok bhai!!….me also coming…..
  11. 11. Overview of textile industry Textile industry in Panipat 1947 - 2016
  12. 12. Overview of Textile industry  More than 50000 handlooms (pit looms & Frame Looms) are working in Panipat under the owner ship of about 4200 different units.  The total exports from this Industry are estimated to be more than 1200 Cores  There are about 1500 units having 25000 ordinary power looms with / without Jacquard attachments and 60 units having 1100 Shuttle less looms. Handloom industry in Panipat Powerloom industry in Panipat
  13. 13. Overview of Textile industry  About 400 small and medium units are situated in and around Panipat Town giving employment to about 60000 persons.  The total Turnover of this Industry is estimated to be more than 150 Crores.  There are about 400 units in Panipat and this Industry is providing an employment to about 25000 persons .  Contributing a turnover of about 250 Crores to the Panipat Textile Industry. Carpet industry in Panipat Woolen blanket industry
  14. 14. Overview of textile Industry  Cotton wet processing industry has about 350 dye houses, 75 printing units catering its services to the Panipat textile Industry.  Open end spinning-----------(aprox.45)  Shoddy yarn industry….....(300 aprox.)  Ring spun…………………...( 1)  Fancy yarn…………………..( 2) Cotton processing Industry Spinning Industry No. of units
  15. 15. Overview of textile Industry  Raw material used: Waste cottons, Woolen rags, PET, Garment industry cuttings.  Count range: 4-30 Nm-Shoddy yarn. 2-20 Ne for Open end yarn.  Customers: Mostly local agent. They hardly have direct customer  Labors: 15-300  Yearly turnover: 1 cr. to 30 cr.  Locations: Shimla moulana road, Old industrial estate, Passina Kalan road, Swarn mall road, samalkha, Kabri road, Sugar mills road, Sector 29, Sector 25. Mostly industries are located. Overall profile of spinning industry in Panipat
  17. 17. Spinning industry in Panipat Flow of material & Information Worn clothes Cotton waste Garment cuttings PET Local market International market Manufacturers Raw material inventory Shoddy : 1-2 months, Open end: 2-7 days Open end & Shoddy industry Production Finished goodsCarpet industry Handloom Powerloom Knitting Blanket 1-40 tons/days Dealers Customers 30-45 days JIT-15 days
  18. 18. Project work  Selection of Tools for Data Collection :  Pilot Study: Finalizing set of questions  Sampling and data collection: After 15-20 survey work, we have found the practice is almost similar, so finally 50 industries has been covered to judgment. Paper work & Field Work Structured Interview Initial questions-95 After pilot study- 25 GM-AKHSAY SPINNING
  19. 19. Project work List of question: Total 25 questions were asked to identify 25 factors that relates their supply chain management. Inventory planning.  Supply lead time.  Production quality.  Production planning.  Manufacturing flexibility.  New product introduction. Supply lead time. Delivery lead time. Extended supply chain. Strategic purchasing. Employee training. Third party logistic. Marketing plan. How much importance “Product quality” carries for your supply chain management? 5-Very Important 4-important 3-somewhat Important 2-Less important 1- N O T I M P T
  20. 20. Project work List of questions: IT/Communication E-commerce On time financial flow Cost competitiveness External infrastructure Product cycle time Skilled labor Customer service Capacity utilization Manufacturing cost reduction Research & development Machine Up-gradation Government regulations How important it is to give maximum try to reduce product cycle time?
  21. 21. Data analysis KMO Test Berlet's test PCA Descriptive statistics SPSS
  22. 22. Data analysis  Raw data obtained about factor has been categorized in followings: Production quality 4.62 Production planning 4.37 Manufacturing flexibility 4.20 Inventory planning 4.54 Supply lead time 4.54 Machine up gradation 4.33 Very significant Product cycle time 3.7 Capacity utilization 3.58 Manufacturing cost reduction 3.75 Significant
  23. 23. Data analysis  Analyzed data- Categorized: Delivery lead time 2.45 Employee training 2.25 Third party logistic 2.75 On time financial flow 2.29 Price issue/Cost competitiveness 2.33 Skilled labour 2.62 Government regulations 2.12 New product introduction 1.75 Extended supply chain 1.29 Strategic purchasing 1.875 Marketing plan 1.91 IT/Communication 1.375 E-commerce 1.375 External infrastructure 1.33 Customer service 1.375 Research & development 1.29 Less Significant Not Significant
  24. 24. Discussion • Marketing • ESCM • E- commerce • R&D , IT etc • Delivery time • 3PL • Labor issues • Pricing • Govt. regulation • Product cycle time • Capacity utilization • Manufacturing cost reduction • Supply lead time • Inventory • Production planning • Product quality Very Important Important Less important Not important
  25. 25. Discussion • SWOT analysis of SCM
  26. 26. Conclusion & Recommendations Business strategy Mind-setVS E-Commerce New product introduction Cluster portal Product promotion Technological up gradation Building bilateral Negotiation with customers
  27. 27. Further study scope  SCM study on Handloom Industry.  SCM study on Carpet Industry.  Overall SCM study in entire Industry.  SCM performance Judgment.  Study on responsiveness vs. Efficiency practice