Supply Chanin Management

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The Award Winning Presentation of Lakshya 2002 By Santosh Karkhanis

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Supply Chanin Management

  1. 1. The Award winner presentation In the ‘Lakshya-2002 Event’ Organised By NITIE & CII (National Institute of Induatrial Engineers & Confederation of Indian Industries) Back to http:// www.karkhanisgroup.com
  2. 2. TheJury for Lakshya 2002 Supply Chain Management Module <ul><li>.Mr. Rajan Chhibba, MD, KSA Technopak. </li></ul><ul><li>Mr. Nathan Knowlton, Head Operations, Colgate-Palmolive (India) Ltd. </li></ul><ul><li>Mr. B Ravi, CEO, ECS Ltd . </li></ul><ul><li>Mr. R. Krishnakumar, GM, Supply Chain Management, Madura Garments </li></ul><ul><li>Mr. Soren Malekar, GM, Materials, Asian Paints (India) Ltd. </li></ul><ul><li>Mr. Sunder Shyam Dua, Chairman & Managing Director, BSES Limited. </li></ul><ul><li>Mr. Prince Azariah, CIO, Reliance Industries Ltd. </li></ul><ul><li>Mr. Vinay Deshmukh, Sr. Dev. Manager, dracle India Ltd. </li></ul><ul><li>Mr. Ashish Mendiratta, Supply Chain Manager, India Operations,Nestle India. </li></ul>
  3. 3. Winners for Lakshya 2002 Supply Chain Management Module <ul><li>1st : Outbound Supply Chain Management Mr.Anil R Anikhindi, Mr. Aatish Goel, VIP </li></ul><ul><li>2nd : Supply Chain Management Experience at NPll, Mr. Shailendra V Bobhate, Nicholas Piraml India Ltd. </li></ul><ul><li>2nd: Implementing Supply Chain globally in Computer Manufacturing Industry Mr. Santosh Karkhanis, Karkhanis Consultants </li></ul>
  4. 4. Mr. Santosh Karkhanis accepting the award
  5. 5. Implementing Supply Chain Management Solution Globally In Computer Manufacturing Industry Santosh Karkhanis.
  6. 6. The Client <ul><li>A world leader in Computer Manufacturing. </li></ul><ul><li>Pioneer in developing a new type of computer. </li></ul><ul><li>Head office in USA. </li></ul><ul><li>Manufacturing plants in many countries. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  7. 7. Need of the project <ul><li>A new-comer entered in the market with a revolutionary idea of configuring and ordering a PC online. This idea was welcomed by customers. </li></ul><ul><li>Many small players entered in the market to give non-branded PCs. </li></ul><ul><li>These factors were considered as potential threat to the market position of the company. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  8. 8. Problem Defination <ul><li>To reduce response time to two working days from 7-8 working days. </li></ul><ul><li>To reduce inventory by 30%. </li></ul><ul><li>To Reduce cost of manufacturing by 10% </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  9. 9. Methodology adopted <ul><li>To introduce some Supply Chain Management Solution to achieve the ambitious results. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  10. 10. Major Findings <ul><li>The industry has a wide range of finished goods. </li></ul><ul><li>The finished goods are configurable. </li></ul><ul><li>The components are continuously upgraded. Keeping track of the versions is very important but difficult. </li></ul><ul><li>The components are rapidly getting obsolete. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  11. 11. Major Findings (cont.) <ul><li>Small components are expensive. Keeping them under security and keeping track of inventory is a must. </li></ul><ul><li>Customer driven market. The customer is not ready to wait. </li></ul><ul><li>Market is concentrated around USA and Europe. However market in Asia is increasing very fast. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  12. 12. Constraints <ul><li>As per USA laws, components manufactured in some designated countries (e.g. Cuba) can not be imported in the country. Therefore tractability of each component going into the product is important. </li></ul><ul><li>Assemblies processed in restricted zones of some countries (e.g. Shenzhen SAR of China) have to follow some restrictions. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  13. 13. Solutions Recommended <ul><li>The first alternative was to implement SAP R/3 as SCM solution. Build necessary additional functionalities using ABAP language of SAP R/3. </li></ul><ul><li>Another alternative recommended was to implement SAP R/3 as the central database and integrate it with other SCM solutions suitable to the industry. </li></ul><ul><li>Decided to go by the second alternative. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  14. 14. Implementation Details <ul><li>SAP R/3 was implemented as a central database and other solutions were also implemented with SAP R/3. </li></ul><ul><li>SAP R/3 was implemented with a central server in USA and three other servers in each region. </li></ul><ul><li>The central SAP database in USA was designed to get updated with the regional databases every night USA time. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  15. 15. Implementation Details (cont) <ul><li>Other solutions would be updating SAP R/3 central database every night USA time. </li></ul><ul><li>There would be only one final assembly plant every region. Other plants would produce sub-assemblies. </li></ul><ul><li>Requirements of one type of computers would be aggregated globally and assembled in one final assembly plant. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  16. 16. Implementation Details (cont) <ul><li>All the plants would work on ‘one company-one way of working’ principle. Minor variations due to local requirements will be accepted. </li></ul><ul><li>The web-based order booking would be introduced in second phase. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  17. 17. Benefits Realised <ul><li>After first phase of implementation: </li></ul><ul><li>Response time was reduced from 7 to 8 days to 4 days. </li></ul><ul><li>Inventory was reduced by 20%. </li></ul><ul><li>Cost of manufacturing was reduced by 7% </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  18. 18. Future scope <ul><li>Web based order configuration and booking. </li></ul><ul><li>More reports can be added to give more transparency of the business to the management. </li></ul>LAKSHYA-2002 Santosh Karkhanis Implementing Supply Chain Management globally in Computer Manufacturing Industry
  19. 19. Questions???
  20. 20. Thank you

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