CIO Enterprise Systems Analysis

Project 2
Develop an executive-level PowerPoint presentation that uses
the organizations in your case studies as examples to provide an
analysis and recommendation to your CIO. Your presentation
should include:
1. A brief summary of each organization that includes the
following:
· the business the organization is in
· the problem the organization was trying to solve
· whether the enterprise system implementation was a success or
not in terms of cost, schedule, performance, and quality
· lessons learned
(Summarized from Project 1)
I. Your presentation should be 8-11 slides that include:
· An introduction or slide outlining the presentation to follow
· 2 slides that summarize the case studies (the business they are
in; the problem they were trying to solve; whether the enterprise
system implementation was a success in terms of cost, schedule,
performance, and quality; and lessons learned)
· 2-3 slides that provide an evaluation of what each organization
did right and what it did wrong; and compare and contrast the
organizations
· 2-4 slides that provide considerations for the CIO including:
benefits and limitations of enterprise systems, determining the
best fit for the organization, implementation planning and
success criteria (covering structure, processes, and culture of
the organization; the phases of the system development life
cycle (SDLC); and other considerations)
· A summary/conclusion slide
II. Notes: Details of Presentation
· The bullet points in your presentation will be supported by
relevant details in the Notes section of the slides, which contain

the actual words you would say to the CIO as you present each
slide. Since you cannot actually present the slides in person,
the Notes will show what you would actually say. This is an
important part of your presentation. If you were writing a
paper, the content would be in the notes and the PowerPoint
slides would be the outline. [Select the Notes Page under View
option in PowerPoint.]
· Presentations with limited or no “Notes” will receive much
lower grades, because the bullets should not tell the whole
story.
III. Resources
· The use of at least four external scholarly resources (which
may include your case studies) is required. (NOTE: More than
four resources are required to receive all possible points; see
Grading Rubric below.) You should use scholarly journals
(rather than Wikipedia and authorless website postings).
Remember to correctly cite and reference all sources. Any
direct quotes should be indicated within the slide text with
appropriate quotation marks and an in-text citation (however,
direct quotes should be short and used sparingly, if at all).
Complete references for sources should be included in the
corresponding Notes section. Paraphrased material can just be
referenced within the Notes section of the slides without an in-
text citation on the slide. This deviates from APA style but
keeps the slides more readable. Note: Do not include your
resources on a separate slide in the presentation. They need to
be included in the notes section of the slide to which they
pertain.
IV. Additional Instructions
· Each slide should have a title and a limited amount of text.
The presentation should capture key bullet points and not
include complete paragraphs and detailed text.
· Content on your Slides should be double-spaced
· Use bullet points – 6-8 words per line; 4-7 lines per slide;

Font – preferably Arial, Verdana or Calibri (sans serif) size 18
· Your presentation format should be professional and use a
professional theme to make it interesting in appearance to keep
your audience’s attention
· Use graphics sparingly but to emphasize key points and add
interest. Stay with the same theme of graphics throughout your
presentation. For example use all clip art, all photograph, etc.
· Proofread and Spellcheck (including what you write in the
Notes section)!
· Read your Notes out loud to yourself to see that the
presentation flows well from start to finish and that the words
you read correspond to and complement what is shown on the
slide without just repeating it
· Use the Grading Rubric below to be sure you have covered
everything.
Grading Rubric for Project 2
The group project will be graded based on the rubric below. The
instructor will determine whether all members of a group will
receive the same grade, or will have their grades influenced by
the group members' ratings of their individual
participation.Criteria
90-100%
Far Above Standards
80-89%
Above Standards
70-79%
Meets Standards
60-69%
Below Standards
< 60%

Well Below Standards
Possible Points
Introduction or Outline
5 Points
A sophisticated introduction or outline sets the stage for the
presentation.
4 Points
A well-written introduction or outline sets the stage for the
presentation.
3.5 Points
The introduction or outline adequately sets the stage for the
presentation.
3 Points
The introduction or outline does not adequately set the stage for
the presentation.
0-2 Points
No introduction or outline is included.
5
Summary of Case Studies
9-10 Points
The summary of each case study is clearly explained; covers all
pertinent facts; is clearly derived from the case; and
demonstrates sophisticated understanding of course concepts,
analysis, critical thinking, and synthesis.
8 Points
The summary of each case study is clearly explained; covers
most pertinent facts; is derived from the case; and demonstrates
good understanding of course concepts, analysis, critical

thinking, and synthesis.
7 Points
The summary of each case study is provided; each is aligned to
the case; and demonstrates adequate understanding of course
concepts, analysis, and/or critical thinking.
6 Points
The summary of each case study may not be clearly explained;
may not be aligned to the case; and/or may not demonstrate
adequate understanding of course concepts, analysis, and/or
critical thinking.
0-5 Points
Minimal or no summary of the case studies is included. Or only
1 case is discussed.
10
Evaluation of Case Studies
18-20 Points
The evaluation of what was done right and wrong for the
enterprise system implementation in each case study is
convincing, fully explained and is directly related to the case
study. The pertinent aspects of the case studies are compared
and contrasted, demonstrating sophisticated understanding of
course concepts, analysis, critical thinking and synthesis.
16-17 Points
enterprise system implementation in each case study is clearly
explained and is directly related to the case study. The case
studies are compared and contrasted, demonstrating thorough
understanding of course concepts, analysis, critical thinking and
synthesis.
14-15 Points

enterprise system implementation in each case study is
explained and is related to the case study; case studies are
adequately compared and contrasted; evaluation demonstrates
adequate understanding of course concepts, analysis, critical
thinking and/or synthesis.
12-13 Points
enterprise system implementation in each case study may not be
clearly explained or may be only partially related to the case
study; case studies may not be adequately compared and
contrasted; and/or the evaluation does not demonstrate an
adequate understanding of course concepts, analysis, and
critical thinking.
0-11 Points
Minimal or no evaluation is provided. Or only one case is
discussed.
20
Considera-tions
32-35 Points
The considerations are fully explained and clearly appropriate,
and adequately cover: benefits and limitations of enterprise
systems, determining the best fit for the organization,
implementation planning and success criteria. Demonstrates
sophisticated understanding of course concepts, analysis,
critical thinking and synthesis.
28-31 Points
The considerations are clearly explained and appropriate, and
adequately cover: benefits and limitations of enterprise systems,
determining the best fit for the organization, implementation
planning and success criteria. Demonstrates thorough
understanding of course concepts, analysis, critical thinking and
synthesis.

24-27 Points
The considerations are explained and are appropriate, and cover
the following: benefits and limitations of enterprise systems,
determining the best fit for the organization, implementation
planning and success criteria. Demonstrates adequate
understanding of course concepts, analysis, critical thinking
and/or synthesis.
21-23 Points
The considerations are not clearly explained and/or not
appropriate, and/or may not adequately cover the following:
benefits and limitations of enterprise systems, determining the
best fit for the organization, implementation planning and
success criteria; and/or does not demonstrate adequate
understanding of course concepts, analysis, and critical
thinking.
0-20 Points
Considera-tions are minimally covered or not included.
35
Summary/ Conclusion
5 Points
Conclusion is convincing, effective and relevant. Demonstrates
sophisticated analysis and critical thinking.
4 Points
Conclusion is effective and relevant. Demonstrates analysis and
critical thinking.
3.5 Points
Conclusion is provided and is relevant.
3 Points
Conclusion is somewhat effective and/or relevant.
0-2 Points

No conclusion provided, or minimal effort shown.
5
External Research
9-10 Points
More than four scholarly sources (which may include the case
studies) are incorporated and used effectively, contextualized,
appropriately researched and supported, and synthesized with
original arguments. Sources used are credible, relevant, and
timely. Correct APA style is used for citations and references.
8 Points
More than four scholarly sources (which may include the case
studies) are incorporated and used effectively, appropriately
researched and supported, and support original arguments.
Sources used are credible, relevant, and timely. Correct APA
style is used for citations and references.
7 Points
Four scholarly sources (which may include the case studies) are
properly incorporated and used. Uses APA format for
references and citations.
6 Points
Two or fewer sources other than the class resources may be
used; may not be scholarly sources; may not be properly
incorporated or used to support arguments; may rely too heavily
on the reporting of external sources, and/or are not effective or
appropriate; and/or are not credible, relevant, or timely. May
not use APA format.
0-5 Points
No external research is incorporated or reference listed is not
cited within text.
10
Presentation Format

13-15 Points
Presentation is clear and concise, and supported by complete
and appropriate notes.
It reflects effective organization and creative design;
appropriate focus for the intended audience; correct structure of
slides, uses course vocabulary and concepts, correct grammar
and spelling; presented in a professional format for an oral
presentation; references are appropriately incorporated and
cited using APA style as indicated in the instructions.
12 Points
Presentation is complete and clear, and supported by
appropriate notes.
It reflects effective organization and correct structure of slides,
keeps audience in mind, may have few grammar or spelling
errors; presented in a professional format; uses course
vocabulary and concepts; references are appropriately
incorporated and cited using APA style as indicated in the
instructions.
10-11 Points
Presentation is complete and supported by notes.
It includes correct structure of slides; may have some grammar
and/or spelling errors; references are appropriately incorporated
and cited using APA style as indicated in the instructions.
9 Points
Presentation has few notes, and/or is not well organized, and/or
is not focused on audience, and/or contains several grammar
and/or spelling errors; and/or does not follow APA style for
references and citations as indicated in the instructions.
0-8 Points
Presentation includes very few or no notes; is extremely poorly
done and/or does not convey the information or shows little

effort.
15
TOTAL Points Possible
100
Insight from industry
Lean supply chain and its effect on product cost
and quality: a case study on Ford Motor
Company
H.M. Wee
Department of Industrial and Systems Engineering, Chung Yuan
Christian University, Chung-Li, Taiwan, and
Simon Wu
Department of Industrial and Systems Engineering, Chung Yuan
Christian University and
Ford Production System Manufacturing Division, Ford Lio Ho
Motor Company, Chung-Li, Taiwan
Abstract
Purpose – The purpose of this paper is to address “how Toyota
can continuously and consistently achieve its dramatic success
through its

competences - continuous waste elimination and the objective of
long term philosophy”; the paper aims to summarize some solid
suggestions and
comprehensive ideas for those industries planning to implement
lean production.
Design/methodology/approach – The methodology used is the
case based approach (CBA), which described lean supply chain
(LSC) through value
stream mapping (VSM) using a case study from the Ford Motor
Company in Chung Li, Taiwan. The paper follows a four-step
problem solving process to
demonstrate how lean supply chain affects product cost and
quality.
Findings – Using VSM case study to demonstrate LSC, all the
measurable indices helpful for cost reduction, quality
enhancement and lead time
reduction are shown. The paper also provides some
recommendations and basic principles to implement VSM
successfully through P-D-C-A improving
cycle.
Research limitations/implications – Since a comprehensive
demonstration of VSM implementation is likely to be both
expensive and time-
consuming, this study provides a case study from the Ford
Motor Company in Taiwan.
Practical implications – VSM through lean process is considered
to be one of the best practices in supply chain management. It
has been shown to be
successful for implementing lean production in Toyota
Production System (TPS). However, other competitors struggle
despite adopting similar
principles. It seems that there is a special ingredient within TPS
that Toyota’s competitors do not fully comprehend.
Originality/value – This paper not only shows the value of VSM
as a supply chain tool in implementing lean production; but also
provides industrial

insight for enterprising companies to follow a four-step
problem-solving process to effectively develop their lean supply
chain.
Keywords Supply chain management, Manufacturing systems,
Lean production, Product costs, Quality
Paper type Case study
1. Introduction and methodology
The three big motor companies (the Big 3) – General Motors
(GM), Ford & Chrysler almost dominated the global market
in early twentieth century. In 1994, Toyota replaced Chrysler,
and it became the global No. 2 motor manufacturer by
squeezing out Ford in 2003 (Liker, 2004). Since 2008, Toyota
has replaced GM to be the largest automaker globally
(Bunkley, 2009).
How did Toyota achieve its success? It all started with the
first President of Toyota Motor Corporation, Kiichiro
Toyoda, who set up the company’s objective “to use small
lot size with cheaper vehicles to compete with the cost of
American motor companies by continuously reducing cost
through waste elimination”. The second president, Eiji
Toyoda, went further to improve Toyota’s manufacturing
process. In 1950, after the Second World War, Toyota learnt
the concepts of continuous material flow, process
standardization and waste elimination from Henry Ford’s

book, Today and Tomorrow. Moreover, Toyota developed one-
piece flow and the concept of “Pull System” which was
inspired by American supermarkets. After decades of practice
and refinement, the above principles and the concepts form
the core of judoka and just-in-time (JIT), making TPS more
functional (Liker, 2004; Abdulmalek and Rajgopal, 2007).
The traditional thinking in the US and Europe was that
only mass production could reduce manufacturing costs.
However, Japan’s automakers have managed to achieve low
cost manufacturing with smaller volume and higher
complexity and shorter lead times. Toyota products have the
reputation of fuel efficient and durable or having good resell
The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/1359-8546.htm
Supply Chain Management: An International Journal
14/5 (2009) 335–341
q Emerald Group Publishing Limited [ISSN 1359-8546]
[DOI 10.1108/13598540910980242]
335
value. However, if the implement of TPS is the key to
Toyota’s success, why have its competitors struggled despite
adopting similar principles? It seems that there are special
ingredients within Toyota, which are not easily learnt by their
competitors (Spear and Bowen, 1999).
The objective of this paper is to use a case based approach

(CBA) and follow a four-step problem solving process to
demonstrate how product quality and cost are affected by lean
supply chain. We hope to give some insight on the above
query by focusing on the supply chain process of car
manufacturing from supplier to customer (Figure 1).
2. Lean supply chain
The term “lean” means a series of activities or solutions to
eliminate waste, reduce non-value added (NVA) operations,
and improve the value added (VA). This VA and NVA
concept were derived mainly from TPS. However, the word
“Lean” was first used in the Future Car Investigation by MIT
professors to interpret Japan’s new production system that do
away with mass production (Womack et al., 1991; Macduffie
and Helper, 1997; Conti et al., 2006) since it produces much
waste. “Waste” is defined as anything that interferes with the
smooth flow of production (Macduffie and Helper, 1997).
The eight wastes highlighted in TPS are overproduction,
waiting, conveyance, over processing, excess inventory,
movement, defects and unused employee creativity, and the
biggest one being overproduction (Monden, 1998; Liker,
2004).
The VSM is a lean supply chain tool used by TPS to
identify between wasteful and necessary value-adding
activities. The “lean supply chain” identifies all types of
waste in the value stream chain and seeks to eliminate them
(Rother and Shook, 1999; Abdulmalek and Rajgopal, 2007),
and this is a major strength of the lean production System
(Womack et al., 1991). The way Toyota uses VSM is different
from the conventional thinking; they focus mainly on avoiding
over production (Rother and Shook, 1999). VSM begins by
listing all operations, and classifies them into VA and NVA
(including waste). The VA activities are those that customers
are willing to pay money for tangible goods or intangible

functions. The NVA work includes the eight wastes of TPS.
The application of VSM in the TPS not only identifies VA/
NVA activities for waste elimination, but also the status of
their lead time in the supply chain from incoming parts to
finished good delivery.
3. Value stream mapping (VSM)
VSM is all the activities in the product process, which
includes:
1 production flow – from raw material input to finished
good delivery;
2 design flow – from concept to launch; and
3 material and information flow – the combination of
production and design flow (Rother and Shook, 1999).
It uses different but simple visual icons to express all activities,
which expose problems and wastes, and highlight
improvements quickly. Accordingly, VSM has the following
benefits:
1 Provides a complete visual flow (material and
information) to support decision making.
2 Highlights and exposes the wastes.
3 Demonstrates the close linkage between information and
material flow.
4 Develops a plan to eliminate waste and continuous
improvement.
The result shows that substantial cost savings can be realized
through information sharing. This motivates trading partners

(see Figure 1) to share information in the supply chain and
improve their performance (Zhao et al., 2001).
The lean VSM links all processes from raw material to final
consumer smoothly. This results in a shorter lead time, higher
quality and lower cost (Rother and Shook, 1999). The first
step of VSM is to conduct on site study of the current process,
including 5M – Man, Machine, Material, Method, and
Message (or Information) followed by VA as well as NVA
operations in order to draw visual Current State Map (CSM).
Then the eight wastes and the bottleneck for further lean
improvement are identified.
After data collection and analysis, the CSM will become a
visual improvement tool for work group to set up challenging
target with measurable indicators. Furthermore, work group
can use continuous improved idea with measurable target
using brainstorming to draw their future state map (FSM).
Through gap analysis between CSM and FSM, one can
discover problems, and countermeasures to implement,
evaluate and follow-up problems. After each improvement
session, the FSM changes back to CSM. This is similar to
Deming’s P-D-C-A cycle (Juran and Gryna, 1993) of
continuous improvement (see Figure 2).
4. VSM measurables and improving tools
The measurable indexes or performance indicators are
important target of VSM. It includes quality, cost and lead
time. Following are the definitions (Def) and notations:
1 FTT (first time through): The percentage of units that
complete a process and meet quality guidelines at the
first time. (Not scrapped, rerun, retested, diverted for
off-line repair, or returned).

2 BTS (build to schedule): Build to schedule reveals how
well a plant executes plans to build the right products at
the right time in the right sequence.
3 DTD (dock to dock time): Dock to dock time is the
elapsed time between unloading raw materials and
releasing finished goods for shipment.
4 OEE (overall equipment effectiveness): OEE is a measure
of the availability, performance efficiency and quality
rate of a piece of equipment. Also, OEE for a constraint
operation is a measure of capacity utilization.
Figure 1 The scope of our research
Lean supply chain and its effect on product cost and quality
H.M. Wee and Simon Wu
Volume 14 · Number 5 · 2009 · 335–341
336
5 Value rate: The percent of all value added time.
6 Other measurable indices:
. A/T: Available time (excludes meal time) ¼ Total
present time – Break time.
. T/T: Takt time (customer demand rate) ¼ Available
time/Schedule volume.

. C/T: Cycle time ¼ (Available time – Average down
time – Defects time)/Schedule volume.
. W/T: Working time of each operator.
. VA: Value added time (customer wishes to pay).
. NVA: Non-value added time (normally includes
waste).
7 Icon descriptions for improving tools:
. : Visual Factory, it is a visual management
tool.
. : Quick Change Over, which is used to reduce
operation time or change over time.
. : Error Proofing, it is a fool proofed device to
prevent defects.
. : Ford TPM, it is a total productive
maintenance program used for equipment
improvement.
. : Safety, focus on safety and ergonomic
improvement.
Call part sequential feeding: It is a call part system through

lighting kanban by sequential feeding; the sequence is the
same as the main line (see Figure 3).
Kitting supply sequential feeding: It is also a sequential feeding
and supplied by kits (see Figure 3).
The above two parts supplies the pull systems and forms a
one piece flow. It helps to reduce NVA, pick-up operations,
duplicated conveyance, and prevent wrong parts installation
(Ohno, 1988; Womack et al., 1991; Monden, 1998; Liker,
2004).
5. VSM case study – Ford Lio Ho Motor Company
Introduction to Ford Lio Ho
Ford Lio Ho Motor Company, located in Chungli city,
Taiwan, is an affiliate of global Ford Motor Company. It was
established in 1972, with a current employee of 1,500. The
main products include passenger car, commercial car and
SUV. The operations include facelift design, manufacturing,
local and imported car sales as well as credit service. The
major brands are Ford and Mazda with a maximum capacity
of 160,000 units per year. Currently, it has 35 suppliers and
25 dealers in 2008.
Ford Lio Ho’s vision is to become a competitive company
by applying new technology, improve quality and human
resource management. Ford Lio Ho introduced Lean
Manufacturing Design (LMD) to the Initial Application
Area (IAA) in 1990 and implement Ford Production System
(FPS), based on the lean production concept to achieve

continuous waste elimination (Huang, 2002).
Since VSM implementation is likely to be both expensive
and time-consuming (Abdulmalek and Rajgopal, 2007), this
study follows the four-step problem to develop CSM and
FSM step-by-step as follows (Wu et al., 2007):
Step (1). Problem finding
In order to effectively identify the root causes and solutions
from CSM, the first priority is to collect the measurable
indices from current situation, such as FTT, OEE, C/T, W/T.
The completed CSM is shown in Figure 4. From this
diagram, the root causes (the square boxes with arrow) are
clearly identified to three key issues as:
1 Too much NVA to pick up parts by walking – the total
value rate is only 31 per cent; there are 69 per cent of
potential opportunity for improvement.
2 Low FTT – for example, the station of “Typing/Piston
assembly” is 95 per cent, the defect rate is 5 per cent.
3 Low OEE – for example, the station of “Head assembly”
is 73 per cent, which is caused by aged equipments and
high setup time.
Figure 2 VSM improving cycle
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337
Step (2). Idea finding
According to the above root causes, we define the task as:
1 Apply pull system concept to build sequential parts
feeding and JIT kanban to reduce NVA (pick up time) and
wastes (walking, waiting).
2 Set up error proofing devices and visual aids for critical
process control to promote the quality of first time
through.
3 Practice total productive management (TPM) to reduce
machine breakdown and use quick change over tool to
reduce setup time.
Having defined the objectives of the problem solving project,
the next immediate task is to develop a potential solution
through collecting a set of ideas (the star signs in FSM) for
further evaluation. For this purpose, we exploited the
proposed FSM as Figure 5 to build the road map.
Step (3). Obstacle finding
The set of solution ideas generated through the proposed
FSM is of preliminary nature. There might be a number of
potential problems hindering its realization. In order to
highlight the hidden obstacles, we applied Five-Why analysis

(Ohno, 1988, 2001) to exploit and map out a prerequisite
plan for examination. Basically, the Five-Why analysis (5-
why) is a logic diagram depicting the cause and effect
relationship for searching root cause and generating the
intermediate or final task.
The Five-Why analysis for dealing with another two key
issues follows the same manner as shown in Table I.
Figure 3 The concept of sequential feeding
Figure 4 The CSM of engine assembly line
Volume 14 · Number 5 · 2009 · 335–341
338
Step (4).
Solution
finding
Taking the example of Five-Why analysis (Table I), the gap

between root cause and task is fitted perfectly well from our
study. Having identified the obstacles and tasks, we are ready
to formulate the solution scheme for achieving real future
state map (FSM).
The solution scheme so developed proposes the following
key action plans to address former three key issues:
1 Identify working space for kitting and sequential feeding,
such as the stations of Head/Belt assembly, Starter/Intake
assembly and Generator assembly.
2 Re-design sequential rack for common used.
3 Re-balance works to identify surplus manpower from
NVA reduction.
4 Set up JIT kanban for directly parts supply from suppliers.
For example, the supplier directly supplies generators to
line side based on JIT kanban.
5 Set up error proofing devices and visual aids to promote

the quality of first time through (FTT).
6 Practice frequently TPM (total productive maintenance)
and apply quick change over to improve performance for
aging equipments to improve OEE.
After implementation of solution scheme, the proposed FSM
will be updated to real future state map and changed back to
Figure 5 The proposed FSM of engine assembly line
Table I The Five-Why analysis for dealing with key issue 1
Topic: How can we reduce NVA and wastes effectively?
Effect Cause Task (for removing obstacles)
Why the process has too much NVA and wastes? Because
operators walk to pick up parts frequently
Reduces quantity of racks to shorten walking
distance, but NVA is still high
Why still needs so many racks for line side
inventory? Because each model needs one rack
Changes supply pattern from push to pull system,

but needs to re-design rack and pre-pick up parts
Why not apply one piece flow and use common
rack?
Because manpower shortage to pick up sequential
parts to the common rack
Identify the surplus manpower from the reduction
of NVA to do kitting and sequential feeding, but
need extra working space
Why shortage of working space? Because inventories occupy
most of the spaces
Set up JIT kanban for suppliers to directly ship
parts to line side
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339
current state map again. That is continuous improvement of
lean production (Abdulmalek and Rajgopal, 2007; Liker,
2004). Compared to the CSM and FSM, the impact of VSM
is summarized as in Table II. The results show how the lean
supply chain tool in the VSM case affects the product quality
and cost. Through continuous waste elimination and long
term philosophy, Toyota can achieve the objectives of high
quality, low cost and short lead time (Liker, 2004).
6. Findings and recommendations
From the results shown in Table II, it can be seen that
measurable indexes are on the right trend. It means that NVA
wastes are continuously eliminated from the supply chain
process. This results in a shortened lead time. The inventory
reduction and built-in quality is incorporated using error
proofing devices, pre-screwed and torque wrench operations.
This lean supply chain of VSM definitely supports the
company in continuous improvement toward business success
(Rother and Shook, 1999; Liker and Meier, 2006).
One question still exists: Why has Toyota Motor achieved

such dramatic high-performance (Osborne and Cowen, 2002)
while GM, Ford and Chrysler (the Big 3 of US) still show
decreasing market share (Wu et al., 2007) even after applying
TPS or Lean related production for over ten years? This study
shows most companies aim at short-term strategies, which
achieve piece-meal improvements and short-term financial
goals. For short-term financial goals, most companies
(including the Big 3) build more products than demand
through mass production. This traditional approach always
results in over production at a tremendous extra cost, such as
warehousing cost for vehicles and the storage of CKD
(completed knock down) parts. Moreover, the Big 3 approach
conceals many quality issues in the supply chain. Through
continuous waste elimination with LSC, the VSM application
aims at no overproduction. The needed fundamental changes
are built into the enterprise’s system and working culture with
a long term philosophy (Liker, 2004).
The Lean supply chain concept has been applied to
industries for several decades. The reason it has remained an
open issue is because the whole supply chain system is very
complicated with a long lead-time, making it difficult to make
improvements throughout the system. Due to the dynamic

market; there is the bullwhip effect with lots of changing
measurable indexes. The VSM is the main tool used to
identify the opportunities with various lean techniques
(Abdulmalek and Rajgopal, 2007) and aims at the core
business process, starting from lean stations to lean processes.
It enables supply chains to become more efficient and
effective in sustaining continuous improvement. Moreover,
VSM uses the pull system and one piece flow concepts to
effectively eliminate wastes and remove the bullwhip effect
through lead time reduction and inventory cost control
(Rother and Shook, 1999; Liker and Meier, 2006).
After VSM case practice through CSM and FSM, the paper
provides some basic principles to implement VSM as follows:
1 Standardized operations – set up the standard operation
process (SOP) for different operators or different shifts,
the standard which is the basis for continuous
improvement must be unique.
2 Level production – if the volume and model mix are
changed, then the operators and stations are changed
simultaneously. That means that the operation time
including VA and NVA are also changing. Changing too
frequently will disturb or even stop further improvement

due to the lack of stable data.
3 Model mix control – in order to enable fast and efficient
improvement for line re-balance, it is suggested in
Toyota’s assembly line.
4 Operations division – all operations must be divided into
VA and NVA (including waste) for improving priority.
5 Manpower focused – use VSM to calculate direct-
manpower and do continuous improvement.
7. Conclusion
This study shows how VSM supports the lean supply chain
and identifies potential opportunities for continuous
improvement to eliminate waste. Culture change is a long
term philosophy; it is highlighted as the foundation for Toyota
and other companies to sustain success. This paper not only
shows the value of VSM as a supply chain tool for
implementing lean production; but also provides industrial
Table II The impact of the VSM, from CSM to FSM
Measurable indexes CSM FSM Results Relate to cost and

quality
Main line overall equipment
effectiveness (OEE) (%) 75 85 10
The OEE improved, productivity increased, cost fell and output
quality
improved
Main line FTT (%) 94 96 2
The increase in FTT means quality is improved and the re-run
rate fell, so
cost and lead times fell
Line dock to dock time (seconds) 12,180 10,353 1,827
The reduction in DTD time meant lower inventory, shorter lead
times
and lower inventory costs
Total working time (seconds) 6,094 5,454 640 The reduction in
total working time meant labor costs were reduced
VA (Sec) 1,896 1,954 258
In order to improve the assembly quality, the production line

added
some error proofing devices, such as pre-screwing, torque
wrench,
which caused the VA time to increase a little
NVA (Sec) 4,198 3,500 698
The reduction in NVA meant some wasteful and non-value
added
activities were reduced or eliminated, resulting in reduced costs
Value ratio (%) 31 36 5
The increased value ratio meant the production line was
improved and
became leaner because of lower cost, higher quality and shorter
lead
time
Volume 14 · Number 5 · 2009 · 335–341

340
insight for those hesitant companies to follow the four-step
problem solving process in implementing the LSC effectively.
We also discuss how a complex supply chain problem can
be systematically analysed and improved effectively by VSM.
Future research may consider the use of the proposed VSM
system for other non-manufacturing industries.
References
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benefits of lean manufacturing and value stream mapping
via simulation: a process sector case study”, International
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The New York Times, January 21, 2009.
Conti, R., Angelis, J., Cooper, C., Faragher, B. and Gill, C.
(2006), “The effects of lean production on worker job

stress”, International Journal of Operations & Production
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Huang, J.D. (2002), A Comparative Study on the Logistic
System of the Taiwanese Automotive Industries, Industrial
Engineering Department Chung-Yuan Christian University
(in Chinese).
Juran, J.M. and Gryna, F.M. (1993), Quality Planning and
Analysis, 3rd ed., McGraw-Hill, New York, NY.
Liker, J.K. (2004), The Toyota Way, McGraw-Hill, New York,
NY, pp. 1-159.
Liker, J.K. and Meier, D. (2006), The Toyota Way Field Book,
McGraw-Hill, New York, NY, pp. 133-194, 397-408.
Macduffie, J.P. and Helper, S. (1997), “Creating lean
suppliers: diffusing lean production through the supply
chain”, FY’97 IMVP working papers, International Motor
Vehicle Program (IMVP).
Monden, Y. (1998), Toyota Production System, An Integrated
Approach to Just-In-Time, 3rd ed., Engineering &
Management Press, Norcross, GA, pp. 1-13.

Ohno, T. (1988), Toyota Production System, Beyond Large-
Scale
Production, Productivity Press, Cambridge, MA, pp. 17-29.
Ohno, T. (2001), Ohno Taiichi no Genba keiei, new edition,
Japan UNI Agency, Inc., Tokyo.
Osborne, R.L. and Cowen, S.S. (2002), “High-performance
companies: the distinguishing profile”, Management
Decision, Vol. 40 No. 3, pp. 227-31.
Rother, M. and Shook, J. (1999), Learning to See – Value
Stream Mapping to Create Value and Eliminate Muda, Version
1.2, The Lean Enterprise Institute, Brookline, MA,
available at: www.lean.org
Spear, S. and Bowen, H.K. (1999), “Decoding the DNA of
the Toyota Production System”, Harvard Business Review,
September-October.
Womack, J.P., Jones, D.T. and Roos, D. (1991), The
Machine that Changed the World, Harper Perennial,
London, pp. 1-30, 48-69.

Wu, S., Wang, S., Blos, M.F. and Wee, H.M. (2007), “Can
the Big 3 overtake Toyota? – a study based on the theory of
constraints”, Journal of Advanced Manufacturing Systems,
Vol. 6 No. 2, pp. 145-57.
Zhao, X., Xie, J. and Leung, J. (2001), “The impact of
forecasting models on the value of information sharing in a
supply chain”, European Journal of Operational Research,
Vol. 142 No. 2, pp. 321-44.
Further reading
Hino, S. (2006), Inside the Mind of Toyota: Management
Principles for Enduring Growth, Productivity Press,
Cambridge, MA.
Lee, C-C., Lee, T-S. and Chang, C. (2001), “Quality/
productivity practices and company performance in
China”, International Journal of Quality & Reliability
Management, Vol. 18 No. 6, pp. 604-25.
Lippert, J. (2006), Toyota Tightens the Screws, Bloomberg
Markets, April.
Japan Management Association (JMA) (1978), Shinban

Toyota no Genba Kanri, Japan Management Association,
Tokyo.
Spear, S.J. (2004), “Learning to lead at Toyota”, Harvard
Business Review, May.
Takahiro, F. (2003), Noryoku Kochiku Kyoso, Chuokoron-
Shinsha, Inc., Tokyo.
Toyoda, E. (1996), Toyoda Eiji Goroku Kamokuna Gijutsu No
Teiou, Sony Magazines Inc..
About the authors
H.M. Wee is a Professor of Industrial Engineering at Chung
Yuan Christian University in Taiwan. He received his
BSc(hons) in Electrical and Electronic Engineering from
Strathclyde University (UK), a MEng in Industrial
Engineering and Management from Asian Institute of
Technology (AIT) and a PhD in Industrial Engineering
from Cleveland State University, Ohio (USA). His research
interests are in the field of production/inventory control,
optimisation and supply chain management. He has
published over 300 articles of his research, edited four
books and serves on the Editorial Board for a number of

international journals. Hui-Ming Wee is the corresponding
author and can be contacted at: [email protected]
Simon Wu is a Manager in Ford Production System
Manufacturing Division at Ford Lio Ho Motor Company in
Taiwan. He is a PhD candidate in Industrial Engineering
Department at Chung Yuan Christian University. He has
published in Journal of Advanced Manufacturing Systems.
Volume 14 · Number 5 · 2009 · 335–341
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tionprohibitedwithoutpermission.
Frozen Corn Manufacturing and Its Supply Chain: Case Study
Using SAP–LAP Approach
Rajneesh Mahajan • Suresh Garg • P. B. Sharma
Received: 6 February 2013 / Accepted: 26 June 2013 /
Published online: 24 July 2013
� Global Institute of Flexible Systems Management 2013
Abstract Supply chain performance concerns with overall
coordination and management of all the business associates
involved in the chain. All the associates share a common
platform for achieving smooth business practices. The tem-

perature control supply chain becomes more and more crucial
for fresh and processed food. The major reason is that dif-
ferent products require different type of supply chain man-
agement (SCM). The task is to manage SCM of shorter shelf
life and different type of temperature control requirement.
Fresh fruits and vegetables require plus 8� temperature and
frozen fruits and vegetables require minus 12–18� tempera-
ture. The purpose of this research paper is to analyze a case
study of manufacturing process and supply chain of frozen
corn for A1company (Name of company is disguised) and to
look into its status of supply chain performance. A1 is a
leading processed food manufacturer and marketer in India. A
case study method is selected to study processed food sector’s
supply chain performance in terms of frozen corn manufac-

turing and its supply chain. A situation-actor-process (SAP),
learning-action-performance (LAP) model has been applied
to analyze the case study on A1. The situation is showing a
present scenario of the organization. Actors are the SCM
participants. They are influencing the situation to evolve dif-
ferent business processes. The various learning issues have
been analyzed. The suitable actions are followed by the impact
of SAP on the performance of A1’s SCM. The individual quick
freezing is a unique manufacturing technique. It is used to
convert fresh vegetable and fruit into frozen. It is helping A1 to
maintain consistent quality of agri product like corn in its
frozen form. It is crucial to maintain cold chain during man-

ufacturing, at the storage time, transporting to distributors
and at retail. It is crucial to make consumers aware about
storage of frozen vegetables in deep freezer of their refriger-
ator. The SAP–LAP model is used to describe the soft and hard
issues of frozen corn manufacturing and its SCM coordination
in a managerial context with reference to a dynamic SAP–
LAP model as applied to the A1. The SAP–LAP model presents
the situation of frozen corn manufacturing and cold supply
chain of frozen corn. The exercise is to identify the gaps in cold
supply chain management. The synthesis of SAP leads to LAP.
It bridges the gap of flexibility in suggesting improvement
actions or the learning from the present situation, actors and
processes. This is a unique approach to analyze quantitative

and qualitative issues of supply chain performance initiatives
in a single model and its impact on the performance of the
supply chain.
Keywords Cold chain � Frozen corn supply chain �
SAP–LAP analysis � Supply chain performance
measurement
Introduction
In this paper we report a case study of an India processed
food manufacturer and marketing company. It is dealing in
manufacturing of frozen Peas, frozen corn, frozen vegeta-
bles and frozen Aloo Tikki. The A1 is one of the leading
brand name for fresh and frozen products. The sweet corn
is selected only from the best farms and is frozen still fresh

For technical reasons, the name of the organization is
concealed.
R. Mahajan (&) � S. Garg � P. B. Sharma
DTU, New Delhi, India
e-mail: [email protected]
S. Garg
P. B. Sharma
123
Global Journal of Flexible Systems Management (September
2013) 14(3):167–177
DOI 10.1007/s40171-013-0040-y
using the ultra advance individual quick freezing (IQF)
technique. The sweet corn is frozen by using an IQF

technique through a tunnel of fluidized bed, leading to
freezing of each and every kernel of corn individually. In
this process cells do not damage, preserving the natural
nutrition and flavor of sweet corn. The sweet corn is natural
and contains no preservatives or additives. The A1 has
wonderful distribution support in terms of cold chain
management nationally. The market is also ready for fro-
zen corn. They have excellent central distribution hub or
depot in Delhi and dependable channel partners in terms of
carrying and forwarding agents (C&F’s), distributors and
retailer. The frozen corn requires typical frozen tempera-
ture to the tune of -18 to 20� for storage. If the desirable
temperature breaks at any channel member, frozen corn

becomes thawe, puffy, dull or heavily speckled. It implies
the frozen corn gets damaged. Therefore, the company is
always facing challenges to keep such a delicate product
under desirable temperature. It can help to maintain frozen
corn’s shape, quality and nutritional value intact. The corn
is a source of vitamin B1. It can balance quantity of fiber in
diet that controls cholesterol of consumer. A1 sells frozen
corn in 200, 500 g and 1 kg packs. The consumer response
for frozen corn is also encouraging. It is in our traditions to
eat challi or Bhutta. The challi or Bhutta is the traditional
Indian names for typical sweet corn. In India the tradition
is to eat sweet corn either by boiling or by roasting over a

slow fire or bar-be-cue. The boiled corn in India is eaten by
putting butter and chat masala or pouring Imli Ki Chutney
(globally know as tamarind sauce). Therefore, the market is
ready made for the product range of frozen corn in India
too. It was launched to serve in star hotels as well as in big
marriage parties. This way our traditional food got alive.
Current Trends of Frozen Processed Food Market
in India
In 2011 current value sales grew faster as compared to
2010, With the impact of the economic recession easing,
consumers were encouraged to increase their spending on
frozen processed food. The current value sales recorded
fastest growth rate in 2011. Frozen processed vegetables

registered the highest current value growth of 13 % and in
value terms 2.8 billion in 2011.
The size of Indian frozen vegetable market is
16,885 tonnes in 2011. Out of a total Indian frozen vege-
tables sale, frozen peas amount to 72 %, i.e. 7,279 tonnes
and frozen corn amount to 6 %, i.e. 606 tonnes in 2011.
Consumption of frozen processed food has been increasing
in urban India. Table 1 is depicting the sales of frozen
processed food by category in volume term for 2006–2011.
The literature review on the cold supply chain is crafted
in the Table 2.
Frozen Sweet Corn Manufacturing Process

The A1 has a production complex. It comprises of a pre-
fabricated building consisting of cold store chambers with
different sets of temperature and humidity conditions
suitable for storage of various fruits and vegetables. It has
controlled atmosphere chambers and ripening chambers
(especially for Banana, Pineapple etc.), deep freezing
chambers (for Ice-creams, frozen corn, frozen peas, frozen
vegetables etc.), preparation hall (for sorting and grading of
fresh fruit and vegetables for distribution), processing hall
(IQF Plant area, Pulp extraction, sprout preparation,
developing cut vegetables etc.), dispatch hall (for logistics
and supplies managed by central distribution hub for Delhi
and NCR sales). The material handling is done in specially

designed plastic crates with the help of a forklift. The
complete grading and sorting is being done using a fully
automated system. The packaging of fresh fruits is also
done with the distribution hub. The A1 has five cold stores
each of 1,000 tonnes capacity, 12 deep freezing chambers
and 900 tonnes capacity each. The IQF line is capable of
handing 3.5 tonnes frozen corn per hour. The IQF tech-
nique for frozen corn is illustrated in Fig. 1. It shows a
complete processing cycle from the arrival of truck at the
Table 1 Volume sales of frozen processed food category 2006–
2011
Frozen range of products 2006 2007 2008 2009 2010 2011
Frozen processed fish/seafood 716 783 863 935 1,028 1,126

Frozen processed potatoes 842 930 1,036 1,143 1,273 1,415
Frozen processed poultry 1,222 1,342 1,485 1,610 1,763 1,929
Frozen processed red meat 475 521 577 620 678 736
Frozen processed vegetables 6,483 7,179 7,819 8,446 9,219
10,111
Frozen ready meals 885 994 1,118 1,240 1,399 1,566
Grand Total Frozen processed food 10,623 11,749 12,898
13,994 15,360 16,883
Source Euro monitor Report (2012)
168 Global Journal of Flexible Systems Management
(September 2013) 14(3):167–177
123
docks, the truckload of shelled corn sent for unpeeling of

fresh corn manually at the plant, then corn off loaded at
IQF Plant. The IQF process for converting fresh sweet corn
to frozen corn is explained through four stages first, stock
management, pre IQF process, IQF technique applied and
post IQF processes.
IQF technique helps in creating better quality products.
It preserves all the nutritional value of the product. The
quality and taste of the products remain uniform as like
fresh ones.
Integrated Supply Chain at A1
The fresh corn is being sourced from Maharashtra India
directly from the farmers as well as from farmer coopera-

tives or groups. The prices are market driven, set in the
open negotiation based on the quality of the corn. The
stock thus purchased is initially processed locally and
transportation is arranged to bring the frozen sweet corn to
the processing plant in Delhi through reefed vans at -20�.
The stock is packed in bulk bags of 30 kg. The
Table 2 Table on cold chain literature
References Contribution in literature Research angle Remarks if
any
Chen and Shaw (2011) Frozen food can be healthy,
heterogeneous and safe
foods for human beings. This trend suggests that
consumers may have a great need for frozen foods
in the future due to convenience factor attached

with.
Requirement of frozen
products
CCM
Mahajan et al. (2011) Created-differentiation between cold and
general
Supply Chain
Indian frozen Peas Market CSCM
Amador and Emond (2010) Some perishable products (such as
certain
pharmaceuticals and chilling sensitive produce)
require the monitoring of the critical points of their
loads because they cannot afford being subjected
to any temperature abuse, since reaching threshold

temperatures would seriously impair their safety
and integrity; consequently, RFID systems using
tags with a probe would be the most adequate
solution for their temperature tracking needs
Temperature monitoring and
control
CCM
Van der Vorst et al. (2009) Food supply chains are confronted
with increased
consumer demands on food quality and
sustainability
Importance of food quality FSCM
Ovca and Jevsnik (2008) Customer practices related to

temperature sensitivity Importance-of-temperature in
CSCM
FSCM
Berger (2007) Stressed upon the standardization in packaging
and
distribution of perishable products
Packaging and channels for
distribution of perishable
products
FSCM
Valeeva et al. (2006) The stability of perishable goods in at
farm level and
in logistic-chains
Integrated FSCM from farm to

retail
FSCM
Eleni Mangina and Vlachos (2005) Highlighted the importance
of the changing role of
information technology in food and beverage
logistics management & traceability
Utilization of IT for FSCM FSCM
Hahn et al. (2004) The retail level maintaining the cold chain,
inventory control and return policy of perishable
items
CCM at Retail CCM
Salin and Nayga (2003) The integrity of the cold chain must be
preserved

from the point of production to retail store and
extends to storage at the consuming household
CCM Integrated CCM
Jacxsens et al. (2002) Impact of temperature fluctuations in a
simulated
cold distribution chain, typical of commercial
practice, was investigated on both the microbial
and sensorial quality of equilibrium-modified
atmosphere (EMA) packaged minimally processed
vegetables
Crucial to maintain
temperature
CCM

Omta et al. (2001) Mechanics of the cold chain is an important
component of SCM for chilled and frozen foods
Importance of cold chain
equipments
CCM
2013) 14(3):167–177 169
123
transportation time is 4 days to deliver the stock at Delhi.
In Delhi plant, the final processing takes place by applying
IQF technology. The actual shelf life right from point of
processing to the point of consumption at consumer level is

24 months. Whereas, the prescribed shelf life mentioned
on frozen corn packs is 12 months. It is because of a
strategy to deal with a situation of slow liquidation of
stocks. A1 procures corn on yearly bases only.
At A1, the bulk bags are opened and repacked into
consumer (200, 500 g, 1 kg) as well as institutional packs
(5 kg). The frozen corn is then ready for redistribution in
India. The pan India distribution takes place as per the
respective markets sales potential and their orders as per
their sales planning. Within Delhi and National Capital
Region (NCR), the distribution can be managed in 24 h of
orders received from distributors. For rest of India the
delivery time will be as per the respective geographical

distances. The stocks are distributed and redistributed at all
the point of sales on first come first bases. A1 depends on
its strong pan India distribution network which comprises
of 20 carrying and forwarding agents and 200 distributors.
For example, the delivery time for making frozen corn
available at Amritsar will be 2 days, for delivery the same
stock from Delhi to Chandigarh in a day and in order to
deliver the stock in Bangalore A1 takes 5 days.
The integrated supply chain of A1 is depicted in Fig. 2
A1 is utilizing two types of channels. The first one is
own outlets and second, open retail channel of marketing
and sale of frozen corn. A1 has full control over its own

outlets. Therefore, the present case study is focused on the
retail market operations.
Here lie the challenges of maintaining, and monitoring
of cold chain at all the levels immediately after the central
distribution hub. A1 channel of distribution is depicted in
Fig. 3.
Research Methodology
Sushil (2000) has recommended the use of SAP–LAP
Methodology for critical examination of case studies. The
SAP–LAP paradigm is depicted in Fig. 4. It is basis of
flexible systems management (Sushil 1997).
The SAP–LAP paradigms take into account three enti-
ties in a management context. Such as situation, actors and

processes (SAP). It could be seen that a situation is to be
dealt with an actor or set of actors through a process or a
set of processes. The freedom of choice exits with an actor,
who could be an individual, a group or the organization as
a whole (Fig. 5).
The interdependence and interplay of SAP lead to
learning, actions and performance (LAP). The time was
taken in handling the situation, which would result into the
performance of the system (Sushil 2000). With the new
learning and actions the situation, actor and process might
result in change into a new level. Such a dynamic interplay
of SAP and LAP will act as the basis of ongoing mana-

gerial inquiry (Sushil 2000) (Table 3).
Stock-
Management
Pre IQF Process IQF Technique Post IQF
Room
Temperature
Cold Chain is maintained
till end of final
consumption of frozen
corn at minimum -18
Degree Temperature
Fresh Corn
Received
Clean Corn through
Conveyor belt, sent
to IQF Chamber
Corn is IQF

at -30 to -40
Degree
Temperature
Unshelling
of corn
done
manually
Grading and
Waste
Separation
Packaging,
Warehousing
& Dispatch
w.r.t Channel
partners
Washing of
Corn and
Metal

Detection Test
Fig. 1 IQF of frozen corn
(September 2013) 14(3):167–177
123
The SAP–LAP paradigm incorporates both learning and
action in a symbiotic manner coupled with performance. It
not only takes into consideration optimization of processes,
but also incorporates multiple perspectives of various
participating actors in a managerial process.
Thus, SAP–LAP analysis offers a learning and interpre-
tive framework of inquiry into the problem under consid-

eration. Therefore the organization which is in the process of
adopting new technologies SAP–LAP framework could
prove to be a useful methodology for analyzing the problem.
The adoption of new cold chain practices and new tech-
nologies is desirable. Thus the SAP–LAP analysis could be
best fit for the analysis of the present case study of A1.
A1’s Background-Processed Food Sector Firm
Indian consumers had been introduced to frozen processed
food first time through a pioneering organization, ‘A1’,
(name of the company is disguised). A1 had launched
organized retail outlets of fresh fruit and vegetable and
frozen range of products such as frozen peas, frozen corn,
frozen mix vegetable, Aloo Tikki (a popular Indian snack

made from boiled mashed potatoes), and vegetables in
India way back in the late 1980s. A1 is more a two decade
old organization. It had launched frozen corn in India in
2008. It is one of the market leader in manufacturing frozen
peas.
The company was ranked fifth in the market with 4 %
value share in 2012. The company benefits from strong
positions in ice cream, where it had a value share of 11 % in
2012, and dairy products, where its share was 9 %. The
company generates most of its dairy sales from North India,
especially New Delhi and its surrounding areas. However,
its frozen products have a larger presence in other parts of

India, particularly in West India. The company had a 21 %
value share in frozen processed food in 2012 as well as a
small presence in oils and fats, spreads, dried processed
foods and sauces, dressings and condiments. The company’s
overall value share rose gradually over the review period
from just over 2 % in 2004 to almost 4 % in 2012. A1 has
food processing facilities located in Delhi, Mumbai and
Bangalore. The food processing plant in Mumbai carries out
the processing and refining of tropical fruits and converting
them into purées for export (Table 4).
A1 is USD 1 billion (1,000 million) company and a leading
manufacturer of dairy products and processed foods. A1
occupies 20 acres of area for the processing of frozen fruits and

vegetables in Delhi and comprises of pre-fabricated building
consisting of cold store chambers with different sets of tem-
perature and humidity conditions suitable for storage of var-
ious fruits and vegetables.They manufacture tropical fruits
pulps and concentrates of the highest quality in India and
export fruits pulps and concentrates and fresh/frozen vegeta-
bles/fruits to over 40 countries worldwide including USA,
Europe, Middle East, Russia and Far East Asia. A1’s inter-
national marketing operations are managed by a dedicated
export division that manages a network of international dis-
tributors and OEM customers—supported by its state of art
manufacturing plants and Innovation centre in India. It

maintains superior quality through processing at ISO 9002,
ISO 22000, FDA, FPO, Kosher, Halal, Global GAP, Ecocert,
SGF and HACCP certified plants and GMP procedures are
followed at all stage of processing.
SAP–LAP Analysis of A1
Situation
• A1 is one of the leading manufacturers of frozen
products. It is offering the best of quality processed
food to Indian market since 1987.
Purchase from farms at Pune and Nagpur in India
CC2
A1
CC1
A1

CC3
A1
Processing Plant locally at -20 Degree, packed
in bulk
Break the bulk and IQF
applied on Corn
Repackaging, storage and
transporting the Frozen Corn
as per sales plan
Distribution Channel and
Retailing
Fig. 2 Comprehensive frozen Corn supply chain, Note CC1,
CC2
and CC3 are collection centers for fresh corn procured from
farmers
2013) 14(3):167–177 171

123
• The cold supply chain is required for most of the A10s
products. Cold supply chain is unique and complex in
nature.
• Intensive cut throat competition observed especially
with entry of global frozen food giants in Indian
market.
• There is a steep increase in consumer demand for
frozen foods especially in urban cities due to steep rise
in double income households.
• CCM is required and based upon close coordination
among channel partners
• Still distributors show a careless attitude towards
maintaining required -18 degree temperature for frozen

corn
• They emphasis less on stock rotation and hygiene of
deep freezes
• The older glycol deepfreezers must be replaced with
newer ones as new freezers are fiber based and energy
efficient
• With higher turnover, modern cold rooms are replacing
deepfreezers
• A1 have implemented advanced information technol-
ogy tools for business management
• A1 have a strong distribution network in Delhi and
NCR.
• It is one of the trusted brands in the processed food
sector
• It was pioneered to start the sales of frozen food sector
in India

Actor
• Board of A1, Top Management, C.E.O, General Man-
ager- Supply Chain Frozen, Manager—Frozen, Logis-
tics Head- frozen and the supply chain department is
main actors
• All the employees of A1 in general and in particular
supply chain and logistics of department
• All the suppliers or business associates of A1
• C& F agents, distributors of A1 and retailers of A1
Process
• A Major weakness is that suppliers and distributors are
connected to the processing plant through traditional
means of communication like fax, telephones, cells etc.
• The main raw material is peeled corn required for the
production of frozen corn

• Existing CSCM requires up-gradation
Central Distribution Hub
In Delhi and NCR-Distributors
Distribution Channel
Retail Market
Distributors: Retail
Markets
Retailing of Frozen Corn
For Rest of India carrying and
Forwarding Agents located in
respective Geographies
Institutional Distributors:
Star Hotels, Hospitals,
Catering Business etc.
Modern Retail

Format (MRF):
Organized Retail
Intermediate
consumption
Fig. 3 Channel of distribution
of A1
(September 2013) 14(3):167–177
123
• Domestically the sweet corn is sourced from
Maharashtra
• Frozen corn manufacturing depends upon availability
of fresh sweet corn, sales and marketing department’s
yearly sales projections

• A1 utilizes IQF a state of art technology for manufac-
turing frozen corn
• A1 deployed SAP in all the departments for better and
faster communication
• The intranet is being used for connecting all the C&Fs
and regional sales offices.
• Stringent quality control practices are applied, secured
certifications like HACCP, ISO 14000 and ISO 22000
Learning
• In A1 the production planning is based upon avail-
ability of the right kind of sweet corn and sales and
marketing sales projections
• Use of proper cold chain and space available for storage
at retail can boost sales
• Implementing proper cold chain creates wonders for A1
• The channel partner’s awareness,education and training

on CCM is desired
• Creation for phasing out old set of deep freezes and
replacing CCM with modern cold rooms required
immediately
• The initial investment is a major hurdle in the process.
The cost saving will be done on account of less energy
consumption, reducing stock damages and selling more
fresh stock, it in-turn increases sales and profitability
• Instead of monitoring of temperature abuse in CSCM,
channel partners themselves made conscious efforts to
become the temperature sensitive
• Ensuring 3PL vendors must follow the guideline of
temperature maintenance
• Deploying data loggers to monitor CCM and ethics in
CSCM can be expected

S: Situation
Internal and
external for A1
P: Process IQF
Technique
Frozen Corn,
SCM etc.
A: Actors
Employee, Business
Associates at A1
Interplay of SAP-LAP
L: Learning
Gather from SAP
on A1 Frozen
Corns SCM
A: Action Applied

through SAP on
frozen corn SCM
at A1
P: Performance
Help to make better
SAP for A1
A1 Organizational
Beliefs and Culture
A1 Tact and Strategy
Fig. 4 SAP–LAP Paradigm
2013) 14(3):167–177 173
123
• The major challenge is streamline connectivity among

distributors and their central distribution hub, C&F
agents to encourage fast and correct communication
• Moreover IT will help in developing nice informative
web site for consumers and in future to begin online
sales
Discussions and Conclusion
In the present research paper, a case study of manufac-
turing process and supply chain of frozen corn A1 (Name
of company is disguised) is discussed. It is a leading pro-
cessed food marketers and manufacturers in India. This
case study highlights crucial observations about the IQF of
corn and cold supply chain management of frozen corn.
The most important observation is that A1, has the most

modern IQF plant for manufacturing frozen corn for the
most demanding markets. The major challenges are
awareness creation, educating and training of channel
members especially third party logistics service providers
(3PL) or transporters, distributors and retailers to maintain
-18 to 20� temperature for frozen corn transportation and
its storage. To avoid frozen corn quality, shape, colour,
hygiene conditions, nutrition value get deteriorated.
A1 has USD 1 billion turnover. It can easily implement
SAP–LAP with internal and external support from its
employees and shareholders. As a result of its implemen-
tation of SAP–LAP, the frozen corn wastages or damages
can be eliminated close to minimum level of 0.5 %.

Therefore, A1’s gain on this front can be reinvested for the
said purpose. One of the limitations of cold chain man-
agement is that chain members for their meager gains
switch-off the cold chain equipments like cold rooms, deep
freezes, reefer vans cooling systems to save electricity
expenses or diesel for a few hours. Another limitation,
there is always shortage of frozen storage space. Therefore,
channel members do not hesitate in keeping the frozen corn
stock outside the cold room or deep freezes for a few
minutes or hours. It happened due to lack of proper order
processing, inefficient supply chain management and its
planning. The company is connected using traditional
Action:

Identified Gaps of CSCM is filled through
proper checks & data loggers and educate
all associates about importance of
temperature maintain at all level of CSCM
among CSCM members of A1
Actors:
Famers, employees, C&F agents,
distributors, retailers, consumers, GOI,
3PLs, CCM and relations & coordination
in A1
Learning:
Gap Analysis of frozen corn CSCM,
implement better CSCM enabled with
modern IT and IQF Technology for A1
Performance:
Better quality frozen corn, customer
collaboration can leads to consumer
satisfaction, improved CSCM achieves
more market share of A1
Process:
Procuring uniform quality corn, applying

IQF, maintain strict CCM, Advance IT
applications, integrated CSCM in A1
Situation:
Implementing CCM, monitoring,
temperature control, achieving higher
market share, offer better IQF corn by A1
Interplay
SAP-LAP
Fig. 5 Proposed framework of SAP–LAP paradigm in A1. Note
CCM cold chain management, CSCM cold supply chain
management, data
logger is the device to monitor temperature fluctuations
attached to cold chain equipments
(September 2013) 14(3):167–177
123

means of communications like fax, telephones, cell phones
etc. The distributor’s orders still come on fax or over
telephone. Once order is received and punched in computer
system, it cannot be corrected in either of direction upward
or downward. Even though A1 has shifted from FoxPro
computing system till 1999-98 to Microsoft Navision in
2000–2001 and most recently SAP in 2010–2011. It was
implemented within A1, its regional offices and supply
chain depots and attained limited success. The channel
members are still not connected through SAP. Thus the
effective integration of the frozen cold supply chain is the
most desirable to eliminate wastes.
A1 has many gray areas in the cold supply chain man-

agement. It is vital to interact with logistics and supply
chain management team at A1 and distributors to make
them aware about the benefits of maintaining ethical
practices in cold chain for their own sake. It would be nice
if they integrate SCM by implementing SAP at their end
through limited support of firm. A1 should utilize the
modern technologies for effective implementation of its
integrated cold chain management in long run.
Table 3 Case studies facilitated through SAP–LAP
References Case studies facilitated through SAP–LAP research
took Applied to sector
Charan (2012) Situation represents the scenario of the
organization. Actors are the

participants, influencing the situation to evolve different
business
processes. Based on SAP, various learning issues have been
analyzed
which lead to suitable action followed by impact on the
performance of the
supply chain of the organization.
Automotive organization
Goel et al. (2012) Application of e-governance HUDA
Information communication
technology
Siddiqui et al. (2012) A supply chain management (SCM)
practice in services is an ongoing
process and needs continuous efforts on total quality
management (TQM)
practices and flexible systems (FSs) practices fronts.

Energy
Palanisamy (2012) To accommodate the variation in business
and technological changes, the
organizational information system (IS) needs to be flexible.
Author has
addressed the importance of flexibility in IS for growth of
business.
Information systems
Shukla et al. (2011) A firm needs to develop effective
coordination within and beyond its
boundaries in order to maximise the potential for converting
competitive
advantage into profitability
Automotive components
manufacturer

Sahoo et al. (2011) To study the strategic technology
management (STM) practices Automotive
Garg and Deshmukh (2010) Flexible system management has
brought a concept of flexibility in all
spheres including maintenance management. Considerable
literature is
available on various facets of flexibility management, namely,
production,
supply chain, day-to-day activities, etc.
Maintenance
Ahuja et al. (2010) Building project management requires real
time flow of information between
all the project team members or the supply chain members
Information Communication
Technology

Pramod and Banwet (2010) By the adoption of an appropriate
change management scheme, organisations
can improve their core competency
Telecommunications
Suri (2008) Computerisation programme of a central
government department Information Sytems
Arshinder et al. (2007) Supply chain coordination is concerned
with managing dependencies
between various supply chain members and the joint efforts of
all supply
chain members to achieve mutually defined goals. There are
different
coordination mechanisms reported in the literature that have
been discussed
in isolation like information sharing, information technology,
long-term

partnerships, and joint decision making which help in
coordinating supply
chain members.
Manufacturing
Table 4 A1’s Competitive Position
Product range Value share % Rank
Dairy 9 2
Ice cream 11 3
Frozen processed food 20 1
Oils and fats 1 20
Dried processed food 1 17
Spreads 1 13
Source Euro monitor Report (2012)

2013) 14(3):167–177 175
123
One can conclude that Indian cold chains are at the
nascent stage. With the changing scenarios in Indian
households, the income growth is due to more and more
participation of women in GDP contribution. The women
find less time for food preparation at home. Therefore, the
demand for frozen processed food is bound to increase
many folds in India. It implies that A1 stands a greater
chance being a pioneering firm in sector to reap the gains
by overcoming the sighted challenges in the present case

study. As they have the right kind of manufacturing tech-
nique like IQF for producing uniform quality. We wish to
extend our thanks to the A1 organisation for sharing
information to develop this case study on A1.
Illustration
The figures are depicting the frozen corn samples stored in
different temperature conditions and its impact on the
quality of corn, its shape and fragrance (Figs. 6, 7, 8, 9).
Acknowledgments We would like to acknowledge DAAD for
awarding scholarship to the corresponding author for carrying
out
doctoral research work in Germany and anonymous reviewers
for his/
her detailed and helpful comments to the current case study.

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40�,
corn turned completely thawed and lost its freshness and
sweetness,
then again when the same corn was put in deep freezer for
freezing,
the cluster formation took place. It lost its fragrance, taste and
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Key Questions
1. What is the concern of supply chain performance in cold
chain management?
2. Why is temperature controlled supply chain required for
fresh and processed foods?
3. How is a case study useful in conducting research?
4. What is the present status of frozen corn supply chain
management in India?
5. What should A1 do to boost the sales of frozen corn from
prospective of supply chain?
Author Biographies
Rajneesh Mahajan has received DAAD’s Sand-
wich Progarmme Scholarship from June 2012–

Sept. 2013 to conduct part of his doctoral pro-
gramme research in Gottingen University in Ger-
many. He is a Full-Time Doctoral Programme
Research Scholar at Delhi School of Management,
Delhi Technological University, formerly known
as Delhi College of Engineering, New Delhi,
India. Before joining Ph.D. program, he worked as Assistant
Pro-
fessor with a well-known privately managed Business School at
New
Delhi in India. His research interests are in the area of cold
chain
management, global supply chain management, global food
Safety,
international trade operations, international business and

international
marketing.
Suresh Garg is Dean (Academics) and Former
Head of the Delhi School of Management, Delhi
Technological University, formerly known as
Delhi College of Engineering, New Delhi, India.
He has published more than 145 research papers in
international/national journals/conferences. His
areas of interests include supply chain manage-
ment, six sigma, total quality management and
flexibility management.
P.B. Sharma is the Founder Vice-Chancellor of
Delhi Technological University, formerly known
as Delhi College of Engineering, at New Delhi,

India. He is an Academician, Researcher and
Administrator. His areas of interests include
knowledge and technology management, innova-
tions management, technical education, etc.
2013) 14(3):167–177 177
123
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Media B.V.) is the property of Springer Science & Business
Media B.V. and its content may
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without the copyright holder's
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Copyright of Global Journal of Flexible Systems Management is
the property of Springer
Science & Business Media B.V. and its content may not be
copied or emailed to multiple sites
or posted to a listserv without the copyright holder's express
written permission. However,
users may print, download, or email articles for individual use.
Frozen Corn Manufacturing and Its Supply Chain: Case Study
Using SAP--LAP ApproachAbstractIntroductionCurrent Trends
of Frozen Processed Food Market in IndiaFrozen Sweet Corn
Manufacturing ProcessIntegrated Supply Chain at A1Research
MethodologyA1’s Background-Processed Food Sector FirmSAP-
-LAP Analysis of A1SituationActorProcessLearningDiscussions
and ConclusionIllustrationAcknowledgmentsReferences

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