Prospects of supply chain management in improving competitiveness of lock industry aligarh up [www.writekraft.com]

Writekraft Research & Publications LLP
(All Rights Reserved)
PROSPECTS OF
SUPPLY CHAIN
MANAGEMENT IN
IMPROVING
COMPETITIVENES
S OF LOCK
INDUSTRY
ALIGARH UP
(Regd. No. AAI-1261)
Corporate Office: 67, UGF, Ganges Nagar (SRGP), 365 Hairis Ganj, Tatmill Chauraha, Kanpur,
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Email: info@writekraft.com
Web: www.writekraft.com

ABSTRACT
Present study has both emotional as well as economical linkages with historical city of
Aligarh. One‘s known for its lock artisans and mechanical engineering all over the
country. This industry is now facing problems to sustain itself in this competitive era
from various corners both inside as well as outside the country. A large chunk of
Aligarh locks industry is unorganized. Lakhs of workers earn their bread and butter
through this industry. The biggest challenge, which Aligarh locks industry faces is lack
of modernization for last several decades. Moreover companies have been reluctant to
make positive efforts in this direction. Present study is aimed at exploring the
possibilities of modernizing Aligarh lock industry by introducing modern supply chain
management. As its major objective, the study focuses on possibility of gaining cost
effectiveness with the introduction of modern supply chain management on one hand
and to explore competitive advantage gained as a result of introduction of modern
supply chain management on the other hand. This is an extensive study in a sense that
around fifteen indicators have been displayed to carry out this work. Out of which eight
indicators have been used to analyze the first objective of hypothesis and seven
indicators have been used to analyze second objective and hypothesis. Costs ranging
from transportation to production cost are taken in to consideration to analyze the
impact of gaining cost effectiveness through the introduction of modern supply chain
management. Similarly indicator ranging from production unit location to supply chain
flows are displayed to explore the possibilities of gaining competitive advantage as a
result of introduction of modern supply chain management. Out of total 112 units
surveyed, hardly six make use of supply chain management, that too in its most
primitive and traditional form. The survey revealed that in general there is a strong
believe among firms in Aligarh lock industry that introduction of modern supply chain
management can go long way in revamping this industry. It is the right time that policy
makers must capitalize on this inclination of Aligarh lock industry towards modern
supply chain management.
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Chapter-1
Introduction
Indian government foresightedly introduced ―Make in India , which stimulates‖
Indian entrepreneurs to align their intent with global standards for maintaining
competitiveness. Aligarh lock industry (ALI) has to put more efforts to achieve its
competitive position and transform itself as globally competitive industry.
Integration of economies resulted in severe competition in Indian market. The
traditional model of organization was based on vertical integration (strategic fit at
all levels of organization), functional management and hierarchy. There are
reasonable differences between traditional and modern business practices. In the
modern scenario, demand has become quite unpredictable in both quality and
quantity. International and domestic markets are too diversified making them
difficult to forecast. There is a dynamic change in the technology, which has
made single-purpose production equipments and machine obsolete, Moreover
mass production systems are well established in old manner, which leads to high
cost and difficult to modify because of rigidness (modeling based). In modern
business practices, effective management of production units endowed with
sensitive to market variations, product flexibility, supply chain uncertainty and
process flexibility sensitive to changes in technology will increase
competitiveness of industry.
Supply chain management became an integral part of competitive strategy for
most of the organizations in 21 century. Managing supply chain beyond
company boundary is bringing competitive advantage to many industries.
Coordination between the production process of suppliers and customers is
the key to meeting today‘s evolving customer demand. Supply chain
management is a means to effectively maintain and sustain this coordination.
It focuses not just on product quality but also on prompt delivery, reliability and
service level. This study seeks to find out possibilities of achieving
competencies through implementation of SCM in selected lock companies of
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Aligarh. There is a well thought reason behind selecting Aligarh for this
research. Aligarh has a history of manufacturing locks and supplying them to
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various countries. Aligarh City is famous as an industrial city. It is also known
as Tala Nagri (Locks City of India). One of the largest lock manufacturers of
locks in India, Link Locks, Bajaj, Harison, Konark etc. are based in the City.
Aligarh lock industry constitutes of both small scale and large scale units.
Construction business of Aligarh has found new momentum as many new
multi storey buildings, shopping complexes and apartments are coming up.
Aligarh is amongst the largest manufacturers and suppliers of locks and
hardware goods in India. At the same time it is also one of the largest
manufacturers of brass fittings. It also has its stake as a manufacturer of
plastic and iron toy pistols, handcuffs, belts, badges for schools and
government supply. Art-ware and sculpture products industry of Aligarh adds
further colours to it. It supplies products all over the world. Brass market of
Aligarh is one of the largest in India, and harbours thousands of skilled
laborers. Its amount size reflects from the fast that about 150 tones of brass
and 75 tones of zinc is processed daily. Iron, aluminum, bronze, and zinc
products are also manufactured in the city. Aligarh is also famous for its brass
hardware and sculptures. Today, the city can boast of thousands of
manufacturers, exporters and suppliers involved in the brass, bronze, iron and
aluminum related business and manufacturing.
Most of the modern organizations are adopting the new environment
transforming traditional management practices, vertical management decision
flows to horizontal corporations. Seven major modern trends can be seen
through past studies and they are organizing supply networks, measuring
performance by customer satisfaction, a flat hierarchy team management;
information, training and retraining of employees at all levels, maximization of
relation with vendors and end-user, and performance based rewards. Now a
day integration strategy has become an integral process to develop
competencies, but main constraint of conventional integrated process among
organizations are costly and time consuming. There is ample scope of cost
reductions or profit improvements with the introduction of supply chain
management in Aligarh lock industry.
1.6. Supply Chain Management: - Supply chain is an integrated part of
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system in the organization. It should not be treated as isolated. Interrelation
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between Information flow and material handing has strong impact on supply
chain effectiveness. Integration of economies is intensifying competition,
shifting focus from production oriented to customer oriented. Therefore
entrepreneur and business man are adopting it as a part of strategy to
compete in the market and hence are cited as being the vehicle to ascend
awareness about supply chain management by Gunasekaran, A., Patel, C.,
and Tirtiroglu, E.
12
. Supply chain processes can be simple structures of time
and frequency distributions but in general they tend to be complex, owing to
the presence of multiple autonomous organisations, functions and people set
within a dynamic environment (Van der Zee and Van der Vorst
57
). According
to Kasi
58
‗a supply chain is a set of interconnected activities among
manufacturing, distribution, and company operation with inputs (e.g. raw
materials) and outputs (e.g. Final product) to achieve intent of the organization
which leads to low production cost and increase customer satisfaction.
Croom, S., Romano, P., & Giannakis, M.
59
focuses on external environment of
an organization. This research is being commonly accepted as a theme by
most of the expert and researcher; even many other definitions also exist.
Lambert, D. M., & James, R. Stock, and Lisa M. Ellram.
60
define a supply
chain as a interlocked activity of organization that bring product and service to
the market.
Ayers, J. B.
80
defines supply chain as life cycle process comprising physical,
information, finding, and knowledge flows where the purpose is to satisfy end
user requirement with product and service from multiple linkage suppliers. It
may be noted that these processes range from multiple linkage suppliers. It
may be noted that process range from services. Also, the supply chain is not
limited in term of flows direction, i.e., backward flows such as product returns,
rebate, incentive payment, etc. could be as important as forward flows of
products and services.
Satisfaction to the end user is the sole objective of supply chain management
(Childerhouse, P., Lewis, J., Naim, M., and Towill, D. R.
36
) and the focus is
on how organizations utilize the technology, capability and processes of
suppliers to improve and develop their own competitive advantage. Supply
chain perspective in theory, without an appreciation of the requirement for
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supply chain management, each echelon in a supply chain would operate
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independently. Operators at each stage would make decisions based on their
own requirements and objectives with little consideration for the constraints
imposed on successive echelons, each role attempting to optimise its own
operations in isolation. A sequence of locally optimised systems however,
does not necessarily constitute a global optimum (Riddalls, C. E., Bennett, S.,
 Tipi, N. S.
61
). For example, the logistics of low cost component production
usually favour large batch sizes, yet manufacturers like to operate on very
small inventories to minimize costs and retain the flexibility to change product
lines. These competing requirements can only be reconciled through
consideration of the supply chain as a single entity. Supply chain
management research generally focuses on improving the efficiency and
competitive advantage of manufacturers by taking advantage of the
immediate supplier's capability (Tracey, M., & Leng Tan, C.
62
).
Service providers frequently offer final assembly, packaging and call centre
services. In doing so, they adopt some of the functions of the manufacturer
contributing to the dependence of the manufacturer on third party
performance (Van Hoek, R. I.
63
). Such examples highlight the fact that
development in the field needs to continue as failures in supply chain
management that are still common (Childerhouse, P., & Towill, D.
65
) with
apparent gaps between the needs of companies and the wealth of available
best practices. (Van Landeghem, R., & Persoons, K.
66
). For example, Deloitte
Consulting reported that only 2 per cent of North American manufacturers
ranked their supply chains as world class, despite 91 per cent viewing supply
chain management as important, or critical, to organizational success, If a
management can see the implications of managing the upstream and
downstream flows of products, services, finances and information across their
suppliers and their customers, then it can be stated that the company has
‗supply chain orientation‘. Such a perspective is definitely not short-term,
―effective supply chain management is treated as key to building sustainable
competitive edge through improved inter and intra-firm relationships‖
(Shepherd, C., & Günter, H.
67
). Supply chain practices thus apply equally to
service industries, as the practice of placing greater emphasis on suppliers is
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not restricted to manufacturers. Retailers take every opportunity to pass
activities such as; quality control, procurement, storage and distribution
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‗upstream‘. Whether the supermarkets are altruistically attempting to remove
waste from the supply chain or simply moving it to some other incumbent is
still open to debate. Many suppliers are excited over the retailers' approach to
partnerships, pointing at the central role of frequently rotated buyers, making it
difficult to build long-term relationship. Information sharing remains limited,
even with dedicated suppliers, Tesco actually charged their suppliers for
Electronic Point of Sale data (Fearne, A., & Hughes, D.
64
). This leads us to a
point where we need to define not Supply Chain Management but rather
―Supply Chain Orientation -the recognition by an organisation of the‖
strategic implications of the tactical activities involved in managing the various
flows in a supply chain (Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix,
N. W., Smith, C. D., and Zacharia, Z. G.
68
).
Supply chain management as a strategy to integrate business processes over
multiple firms (as opposed to merely taking advantage of suppliers) features in
some of the more progressive definitions (Venkateswaran, J., Son, Y. J.,and
Kulvatunyou
69
). Many of the techniques employed in supply chain management
have one common goal ‗to create a transparent, visible demand pattern that
paces the entire supply chain‘ (Childerhouse, P., & Towill, D.
65
) i.e. minimise
disruptive, dynamic, supply chain behaviour. At company level there is a
progressive shift towards an external perspective with the design and
implementation of new management strategies. Unfortunately there are still
evident hurdles to overcome, mainly due to the major complexity of the problems
to be tackled in a logistics network and to the conflicts resulting from local
objectives versus network strategies (Terzi, S., & Cavalieri, S.
70
).
Supply Chain Dynamics:-The dynamics inside the supply chain can be
attributed to two separate sources, caused by the dynamic external situation.
External environment and dynamic behavior manufacturers no longer control
the pace so that products are manufactured, developed and distributed. End
user now imposes growing demands on manufacturers for assortment, fast
order completion and fast delivery. global competition and consumers
demanding a superior variety of products make demand far more impulsive,
with shorter product life spans and with greater demand variation (Riddalls, C.
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E., Bennett, S., & Tipi, N. S.
70
). In addition, as the balance of power in many
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supply chains process has shifted towards changing demand patterns,
retailers are communicated enormously quickly, while the cost effective
logistics systems keep up availability of product. With the competitive
differentiator of quality becoming a market qualifier rather than a market
winner, meeting these varied customer demands has emerged as the critical
opportunity for competitive advantage. The internationalisation and
globalisation of markets further exacerbate the problems, offering companies
greater possibility to diversify their supply, production and distribution
networks. Facing a plethoric supply, customers become more demanding and
volatile (Labarthe, O., Espinasse, B., Ferrarini, A., & Montreuil, B.
72
).
The shifting and ever more volatile external environment has influenced; the
design, objectives and operation of supply chain systems. Organizational
change and improvement (Kasi, V.
58
) and supply chain intend and operating
policy (Wilding, R.
73
) remain important themes within the practitioner and
academic research community, therefore to maintain competitive advantage
organisations are persistently made to redirect resources and refocus on the
enhancement of product features such as; quality, cost, options and services,
flexibility (Ding, H., Benyoucef, L., Xie, X., Hans, C., and Schumacher, J.
74
).
As if this were not enough, the changes are not uniform across sector,
industry or geographical region. Companies operate in different industries, in
different markets, on different segments with different customer requirements
in each (Kamann, D. J. F., & Bakker, E. F.
75
). The net outcome of an ever
more volatile environment is that all levels of dynamic behaviour in the supply
chain is likely to enhance.
Bhaskaran, S.
77
used a simulation model to examine the show of dynamics in
an auto assembly supply chain process and finished that controlling or
dampening this effect is necessary for good supply chain management as
established supplier forecasts lead to reduced inventory levels. His work
largely focused in a manufacturing environment and gives a useful insight into
how the scale of dynamics might be assessed. ―Dynamics refers to changes
in production rates over time; a schedule has low dynamics if it has a constant
operating rate or if rates change gradually over time to accommodate trends .‖
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Limiting the transmission of variability and/or the dampening of the scale of
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the variability along a supply chain is a fundamental objective of supply chain
management. The networks of organisations within a distribution channel.
Each role in the network being connected by the flow of material in one
direction and the flow of information (orders) and payments in the other
direction,. Changes in any one of these components usually creates ‗waves
of influence‘ that propagate throughout the supply chain. These waves are
reflected in prices, flows of material and inventory levels. How these
influences propagate through the system determines the ―dynamics of the‖
supply chain. Throughout the supply chain, there exist various types of
uncertainties, e.g., demand uncertainty, production uncertainty, and delivery
uncertainty. Making decisions as to how much and when to replenish, often
involves a feedback process triggering interaction between system entities
(Hwarng, H. B., & Xie, N.
76
). The time delay observed between decision and
effect further complicates the interaction between these system entities.
Supply chain management (SCM) is "the systemic, strategic synchronization
of the conventional business functions and the strategy across these business
functions within the company so that across businesses within the supply
chain process, for the purposes of improving the enduring performance of the
individual companies and the supply chain as a entire." It has also been
defined as the "design, planning, execution, control, and monitoring of supply
chain activities with the purpose of creating net worth, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with
demand and measuring performance worldwide
Supply chain strategies require a whole systems view of the relatives in the
chain that work collectively competently to generate customer satisfaction at
the end position of delivery to the consumer. As an outcome, costs must be
lowered throughout the chain by driving out unnecessary expenses,
movements, and handling. The main focal point is turned to efficiency and
added value, or the end-user's perception of value. Efficiency must be
improved, and bottlenecks removed. The measurement of performance
focuses on total system efficiency and the equitable monetary reward
distribution to those within the supply chain. The supply chain system must be
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receptive to customer necessities. It is a management of a worldwide system
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used to bring products and services from raw materials to end customers
through an engineered flow of information, physical distribution, and cash.
Supply Chain Management (SCM) is the management of the relationship
between the supplier's supplier and the customer's customer through the
supply chain participants between them, mainly using information flow and
logistics activities to gain Competitive advantage and customer satisfaction.
Supply chain management has following eras.
 Creation era
 Integration era
 The globalization era
Supply chain management is a cross-functional approach which includes
management of movement of raw materials into an organization. Aspects
related to internal processing of materials into finished goods, so that the
movements of finished goods out of the organization and toward the end
consumer are other main issues. As organizations struggle to focus on core
competencies so as to become more flexible, they decrease their ownership
of raw materials sources and distribution channels. As a result these functions
are gradually more being outsourced. It enhances inventory visibility and the
velocity of inventory movement. Main functions of supply chain management
are inventory management, distribution management, channel management,
payment management, financial management, supplier management,
transportation management, customer service management.
1.6.1. Development of Supply Chain Management
Operations research and Industrial engineering have their roots in logistics.
Fredrick Taylor, who wrote The Principles of Scientific Management in 1911
and is considered the father of industrial engineering, paying attention his
early research on how to improve manual loading processes, operations
research began when scientists demonstrated the value of analytics in the
study of military logistics problems in the 1940s as a result of the complex
requirements of World War II. While Industrial Engineering therefore
Operations Research has each tried to maintain separate identities, many of
their major successes have occurred when used in an integrated structure to
address supply chain and logistics issues. Ever more this is referred to by
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industry as engineering of supply chain.
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History of Supply Chain Management
The Early Years, in the 1950s and 1960s, the center of attention of logistics
research was on how to use mechanization to get improved processes of
material management and how to obtain better gain of space using racking
and better warehouse arrangement and layout so that. Unit load concept
become popular in market to maximize profit and the use of pallets also
became prevalent. The era of 50s, this concept was globally recognized to
transportation management with the development of steel containers together
with trains, ship and trucks to handle these containers. This was a prerequisite
condition for the supply chain globalization that came much later. Although the
terms materials handling and warehousing were used to explain many of
these efforts, this development could be viewed as primary applications of
industrial engineering rather than as a discipline of its own. By the 1960s, a
clear trend had developed in shifting more time-dependent freight
transportation to truck rather than rail. This led to requires for dual
consideration of warehousing, material management, and freight shipping,
which emerged under the label of physical distribution. The National Council
of Physical Distribution Management was formed in 1963 to focus industry
attention on this area and quickly became the predominant organization in the
field. This area gained much wider recognition in both industry and academia
due to the fundamental paradigm change that occurred during the 1960s and
1970s with regard to computers. Prior to the 1960s, virtually, all transactions
and record keeping were done manually. The computerization of this data
opened the door to a huge opportunity for innovations in logistics planning,
from randomized storage in warehouses to optimization of inventory and truck
routing. The technologies, particularly those from Operations Research, that
researchers had to this point only been able to examine in theoretical models
had now become much closer to reality. However, there were still many
difficult research issues to resolve in the transition from theory to practice. In
the late 1970s and early 1980s, this led to the creation at Georgia Tech of the
Production and Distribution Research Center, the Material Handling Research
Center, and the Computational Optimization Center. Each of these centers
focused on different aspects of what this new computer technology made
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possible. The evolution of supply chain management is described in the points
given below:
i. The 1980s marked the beginning of a sea-change in logistics in the history
of supply chain management. The emergence of personal computers in the
early 1980s provided much better computer access to planners and a new
graphical environment for planning. This spawned a flood of new technology
including flexible spreadsheets and map-based interfaces which enabled huge
improvements in logistics planning and execution technology. The Production
and Distribution Research Center was the first innovation leader in combining
map interfaces with optimization models for supply chain design and
distribution planning. The Material Handling Research Center provided
leadership in developing new control technology for material handling
automation. The Computational Optimization Center developed new large
scale optimization algorithms that enabled solution of previously intractable
airline scheduling problems. Much of the methodology developed in these
centers rapidly began to find its way into commercial technology.
 Perhaps the most important trend for logistics in the 1980s was that it
had begun to get tremendous recognition in industry a exorbitantly expensive,
extremely important and intricately complicated system. Company executives
became aware of logistics as an area where they had the opportunity to
significantly improve the bottom line if they were willing to invest in trained
professionals and new technology. In 1985, the National Council of Physical
Distribution Management changed its name to the Council of Logistics
Management (CLM). The reason given for the change of nomenclature by the
new CLM was "to reflect the evolving discipline that included the integration of
inbound, outbound and reverse flows of products, services, and related
information." Prior to this, logistics was a term that had been used almost
exclusively to describe the support of military movements.
← The logistics boom was fuelled further in the 1990s by the emergence
of enterprise resource planning (ERP) systems. These systems were
motivated in part by the successes achieved by Material Requirements
Planning systems developed in the 1970s and 1980s, in part by the desire to
integrate the multiple databases that existed in almost all companies and
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seldom talked to each other, and in part by concerns that existing systems
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might have catastrophic failures as a result of not being able to handle the
year 2000 date. In spite of some significant problems in getting the ERP
systems installed and working, by 2000 most large companies had installed
ERP systems. The result of this change to ERP systems was a tremendous
improvement in data availability and accuracy. The new ERP software also
dramatically increased realisation of the need for better planning and
integration among logistics components. The result was a new generation of
advanced planning and scheduling software.
← The pervasive recognition of the concept of supply chain has come
primarily as a result of the globalization of industrialization since the mid
1990s, particularly the growth of manufacturing in China. U.S. imports from
China grew from about $45 billion per year in 1995 to more than $280 billion
per year in 2006. The focus on globalization accented the need for logistics
strategies to deal with complex networks including multiple entities spanning
multiple countries with diverse control. There has been an increasing trend to
use the term supply chain management to refer to strategic issues and
logistics to refer to tactical and operational issues. This growing association of
supply chain management with strategy is reflected in the Council of Logistics
Management's changing its name to the Council of Supply Chain
Management Professionals in 2005. They make the distinction that "Logistics
is that part of the supply chain process that plans, implements, and controls
the efficient, effective forward and reverse flow and storage of goods,
services, and related information between the point of origin and the point of
consumption in order to meet customers' requirements" while "Supply Chain
Management is the systemic, strategic coordination of the traditional business
functions and the tactics across these business functions within a particular
company and across businesses within the supply chain for the purposes of
improving the long-term performance of the individual companies and the
supply chain as a whole."
 Since the 1980s, computer technology has advanced at such a
phenomenal rate that it is currently far ahead of the ability of the supply and
logistics field to adequately utilize the new technologies. Given the extent of
Internet usage today, it is hard to believe that Microsoft's Internet Explorer 1.0
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was released in 1995. The communication capabilities have fundamentally
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changed the way we think about communications and information sharing.
However, supply chain and logistics planning is still primarily based on the
distributed models that came as the result of personal computers. There is no
question that academic research can enable a new generation of supply chain
and logistics planning technology based on centralized planning with
distributed collaboration. These technology advances can provide tremendous
value in addressing traditional supply chain and logistics areas such as
warehousing and distribution, transportation, and manufacturing logistics.
However, there are also many non-traditional areas such as health care
logistics and humanitarian logistics which can get great value from building on
the concepts and technologies that have already proven successful in the
traditional supply chain and logistics areas. Finally, there are extremely
valuable insights to be gained by systematically studying the supply chain and
logistics performance of companies across multiple industries and countries.
1.7. Supply Chain Decision
1.7.1. Inventory Decision
Inventory management is a crucial part of supply chain management for
managing relation with customer and vendor. Collaborative or integrated
relationship concept has been the essence of supply chain management.
However, a nearer examination of supply chain relationships, predominantly
those involving product flows, reveals that the heart of these relationships is
inventory movement and storage. This involves in managing relationships
based on the purchase, transfer, or management of inventory. As such,
inventory plays a serious role in supply chains because it is a relevant focus of
supply chains. Balancing of demand and supply is a most primary work of
inventory management. For example, a growing trend is the implementation of
sales and operations planning processes. The fundamental purpose of S&OP
is to bring the demand management functions of the firm (for example, sales
forecasting, marketing) together with the operations functions of the firm (for
example, manufacturing, supply chain, logistics and procurement) and level
strategic plans. This often involves extensive discussions about the firm‘s on-
hand inventory, in-transit inventory, and work-in-process. Such discussions
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allow the sales and marketing group to adequately plan for the forthcoming
time horizon by gaining a realistic picture of the inventory levels available for
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sale. Additionally, the operations groups are able to get updated and direct
sales forecasting information, which can assist in planning for future inventory
needs. Such information may very well result in shifts in manufacturing plans
or alterations to procurement needs because of the strategic decision to focus
on specific units of inventory instead of others in the near future.
Another example of balancing through inventory is the use of point-of-sale
(POS) data for perpetual inventory management in the retail industry. For
many retailers, every beep of a cash register upon scanning of an item‘s bar
code during checkout triggers a series of messages that another unit of
inventory has been sold. This information is not only tracked by the retailer but
is also shared with upstream vendors. As items are depleted from inventory,
in some cases, both the retailer and vendor work collaboratively to determine
when reordering is necessary to replenish the depleted inventory, especially
at the distribution center level. This balances supply and demand because
demand information is tracked to determine when to best place replenishment
orders based on the time required to get the inventory to the store location. In
essence, inventory decisions are used to effectively time when supply inflows
are needed to handle demand outflows.
1.7.2. Location Decision
Proximity pays a crucial role in supply chain management to improve
competitiveness. Facility location decisions, on the other hand, are often fixed
and difficult to change even in the intermediate term. The location of a
multibillion-dollar automobile assembly plant cannot be changed as a result of
changes in customer demands, transportation costs, or component prices.
Modern distribution centers with millions of dollars of material handling
equipment are also difficult, if not impossible, to relocate except in the long
term. Inefficient locations for production and assembly plants as well as
distribution centers will result in excess costs being incurred throughout the
lifetime of the facilities, no matter how well the production plans,
transportation options, inventory management, and information sharing
decisions are optimized in response to changing conditions. In this chapter we
review several traditional facility location models, beginning with the classical
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fixed charge location model. We then show how the model can be extended
to incorporate additional facets of the supply chain design problem, including
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more accurate representations of the delivery process, inventory management
decisions, and robustness and reliability considerations.
1.7.3. Cost Decision
Costing is an important decision which leads to improvement of supply chain.
Long-term conditions under which production plants and distribution centers
will operate are subject to considerable uncertainty. Transportation costs,
inventory carrying costs (which are affected by interest rates and insurance
costs), and production costs, for example, are all difficult to predict. Thus, it is
critical that planners recognize the inherent uncertainty associated with future
conditions when making facility location decisions. Vehicle routing and
inventory decisions are generally secondary to facility location in the sense
that facilities are expensive to construct and difficult to modify, while routing
and inventory decisions can be modified periodically without difficulty.
Nevertheless, it has been shown empirically for both location/routing and
location/inventory problems that the facility location decisions that would be
made in isolation are different from those that would be made taking into
account routing or inventory. Similarly, planners are often reluctant to consider
robustness and reliability at design time since disruptions may be only
occasional; however, large improvements in reliability and robustness can
often be attained with only small increases in the cost of the supply chain
network.
1.7.4. Production Unit Decision
Production unit decisions have a variety of important factors like legislation,
proximity to customers, business climate, and tax incentives. The Production
location decision affects supply chain uncertainty, which in turn impacts the
performance of the supply chain. For example, locating a plant in a country
with poor transport infrastructure may enhance supplier uncertainty. Similarly
locating a plant in a country with poor power infrastructure may disrupt the
production process and hence increase process uncertainty. Ultimately
greater uncertainty in the supply chain results in poorer performance on
metrics such as inventory costs, lead time and responsiveness.
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1.7.5. Supply Chain Uncertainty Decision
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Supply chain uncertainty leads to affect profitability of the organization and
complex and dynamic interactions between supply chain functions lead to
considerable uncertainty in planning. Uncertainty tends to proliferate upbeat
and down the supply chain. Davis found, three distinct sources of uncertainty
in supply chains supply uncertainty, process uncertainty, and demand
uncertainty. Supply uncertainty is caused by the variability of supplier
performance due to late or defective deliveries. Process uncertainty results
from the unreliability of the production process due to machine breakdowns.
Finally, demand uncertainty which according to management expert is the
most serious of the three, arises from volatile demand or inaccurate forecasts.
The author also discusses several metrics for measuring the three types of
uncertainty. Indian companies reported results from a case study and a
simulation model to show that demand related disruptions in an international
supply chain created substantial costs of inventory holding, expediting and
lower demand fulfillment. An assertion of this research is that the plant
location decision affects supply chain uncertainty, which in turn impacts the
performance of the supply chain. For example, locating a plant in a country
with poor transport infrastructure may enhance supplier uncertainty. Similarly
locating a plant in a country with poor power infrastructure may disrupt the
production process and hence increase process uncertainty. Ultimately
greater uncertainty in the supply chain results in poorer performance on
metrics such as inventory costs, lead time and responsiveness.
1.7.6. Supply Chain Flows Decision
In the supply chain there are three types of flow from the supplier to the end
customer in the chain.
 Product Flow.
 Information flow.
 Money flow.
Product flow is nothing but starting from the raw materials to the end product
to the customer. Information flow is nothing but the sharing of information from
the customer as well as supplier. It is in both directions. Money flow is nothing
but the funds flow from the consumers to the manufacturer, from
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manufacturer to supplier.
1.7.7. Advanced Technology in SCM Decision
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Doe & Ingalls helps you achieve your goals by taking a holistic view of your
supply chain. By proactively identifying the strongest supply chains for our
advanced technology customers, aligning with strategic suppliers and actively
stewarding these relationships, our Smart Sourcing™ program builds a robust
upstream supply chain. Then, we focus downstream with Streamline services
and business practices that reduce costs, remove unnecessary activity and
optimize supply. The use of information technology (IT) is considered a
prerequisite for the effective control of today‘s complex supply chains. Despite
the acknowledged importance of the use of IT in supply chain management
(SCM), the number of empirical studies assessing the use of IT in the supply
chain context is limited. Based on empirical data from 16 Finnish industrial
and service companies this paper presents a classification of the ways in
which companies use IT in SCM, and examines the drivers for these different
utilization types.
According to the findings of this research, the use of IT for SCM purposes can
be divided into 1) transaction processing, 2) supply chain planning and
collaboration, and 3) order tracking and delivery coordination. The findings
further suggest that the drivers between these three uses of IT in SCM differ.
As for IT systems, when discussing the use of IT in SCM, we refer to the use
of inter-organizational systems that are used for information sharing and/or
processing across organizational boundaries. Thus, besides internal IT
systems such as Enterprise Resource Planning systems, we also exclude
identification technologies such as RFID from the scope of this study.
1.7.8. Operational Practices in Supply Chain Management
Manufacturing practices that distinguished the most successful plants from
the least successful plants were identified. The differences in the
manufacturing practices used by the most and least successful plants
reflected three general distinctions between the two groups: adopting a logical
portfolio of practices which relate to competitive priorities, workforce focus,
and process orientation. While we do not treat manufacturing practices at a
detailed level in this paper, some of the broad manufacturing strategies similar
to those used by corporate. Even though the plant location decision imposes
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certain inherent limitations or constraints, the firm‘s actual performance is
impacted by the manufacturing practices it adopts. A report on comparative
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empirical study conducted in Canada and Australia to examine the
relationship between manufacturing practices and plant performance.
Manufacturing practices that distinguished the most successful plants from
the least successful plants were identified. The differences in the
manufacturing practices used by the most and least successful plants
reflected three general distinctions between the two groups: adopting a logical
portfolio of practices which relate to competitive priorities, workforce focus,
and process orientation.
1.8. Aligarh Lock Industry
The lock manufacturing industry has assumed high proportion during last
decade and mainly after the economic reforms introduced by the government
of India. The milieu of globalization and liberalization have further accentuated
its pace of advancement as a result this industry not only made a mark on the
industrial map of the region but also has been attracting the attention of
people living in advanced countries like Germany, USA, UK, Poland and other
parts of the world. This industry has been providing and generating whole
some opportunities and also helping the government in fetching foreign
exchange which help in stabilizing the economy of the state as a whole not to
speak of region alone
History of Lock Industry- There is different interpretations regarding the origin
of the lock industry in Aligarh. Jain provided one interpretation regarding its
origin, whereas, Nevill provided a different interpretation as follows. The
History of lock manufacturing in Aligarh is interesting. Almost 125 years ago,
in 1870, a gentleman from England established a firm Johnson and Company
to import locks from England for sale in Aligarh. In 1890, Johnson and
Company started the normal production of locks on a small scale by cutting
the sheets and manufacturing it with the process of molding. Besides
England, the locks made of sheet metal began to be imported from Germany
for its sale in Aligarh. In 1930, Johnson and Company and some small scale
units started manufacturing locks from sheet metal by duplicating German
locks. These locks, which were manufactured in Aligarh, are known as Aligarh
locks. In 1950, Surendra Kumar an advocate by profession and the son of a
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barrister started manufacturing locks in a very systematic way by importing
machines and techniques and even foreign engineers. However, this globally
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famous lock manufacturing unit has closed down due to family dispute. In
1975 when the company collapsed, the engineer, contractors, mechanics,
labourers employed in this large concern setup their own small scale lock
units. And now Aligarh turns to the biggest lock-manufacturing hub of India. It
is true that from 1950 - 1975, many Muslims made significant contributions in
manufacturing of locks from share metals with the help of machines.
Prominent among these were Jemco and Rose lock brands, which became
very popular in those days. Around 1970, Aligarh manufacturers stepped into
the fields of manufacturing locks for scooters and motors (Jain 2003). Work in
metal is of considerable importance. The Aligarh Postal Workshops since their
establishments in 1842 or thereabouts have served as a training ground for
large number of mechanics and have given them a sound knowledge of
modern tools and appliances. With the adoption of wheeled carriages, mail-
carts and bullock wagons, in place of runners on the main postal lines,
1.8.1. Features of Aligarh Lock Industry
The lock industry of Aligarh, a district in the state of Uttar Pradesh, is a major
contributor to the manufacturing sector of the SSEs in the country. There are
4–5 large lock manufacturers, 25–30 medium sized, and over1000 small
manufacturers. About 25,000 employees work in these units. A large variety of
locks are being manufactured in the city, which are used for different
purposes. Pad locks, cable locks, cycle locks, auto locks, shocker locks, deck
locks, shutter locks, and match number locks included in the list. The daily
production of this industry is approximately half a million locks. Almost 30 per
cent of the products are exported. Some preliminary investigations of the
industry revealed that the lock manufacturing units, by-and-large, are either
unaware of even the fund a mental techniques of inventory management or do
not practice them for one reason or the other. This scenario of the industry
with particular reference to the significance of inventory costs in their business
has inspired us to take up this study. Three lock manufacturing units are
selected as representatives of the industry to understand and analyze the
inventory systems under practice and suggest ways to improve on their
inventory-related costs and efforts. Locks and brass articles are manufactured
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in Aligarh District. Locks of Aligarh are so famous that by it is also known as
TALA NAGARI. The district even exports brass and hardware items to
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different countries of the world.
General started the Aligarh shops, and the experiment proved more
successful, almost every part of India being supplied with vehicles as well as
other requirements in the shape of bags, stamps and printed forms. The
workshops employed as many as 2,000 men after the Mutiny, and organized
labour enabled Postal communication to be restored with great rapidity at that
critical period. The operations of the workshops were largely curtailed after
the opening of the railways, and the number of hands was reduced to 800 or
400, mainly carpenters, iron-workers, die-sinkers, and leather workers. At the
present time the institution compresses a large printing establishment with a
daily average of 325 hands, as well as the workshops proper. The latter
employed some 370 persons, and the articles produced include scales, locks,
letter boxes, furniture, badges and scales knives, lamps, lanterns metal notice
and sign boards, mail and handcarts, bags, wallets and tarpaulins to these
workshops may be traced the origin of the metal Industry of Aligarh, which is
specially devotee to the production of locks in brass and iron. There are
numerous lock works in the city, as many as 27 being in existence in 1907,
and others are to be founded at Iglas, Hathras and elsewhere in the district.
Two firms at Aligarh employ over two hundred hands, and one is a joint stock
company, Known as the pioneer lock works and general Metal Foundry,
started several yearsago by Messers Johnson and Company; while the other
is known as the sparking lock works.
The locks are of a high quality, and are imported in very large numbers to all
parts of India. Other well known firms are those of NabiBakhsh and karamIlahi
and of Hafiz Inayatullah and Abdullah. The output at Aligarh is estimated at
about 500,000 locks per annum valued at Rs. 2,76,000. Iglas works produced
locks to the value of Rs. 30,000 (Nevill 1926: 61-62). However, a real impetus
to the development of the lock industry in Aligarh city came in 1926 when the
Government of the country established a metal workshop to train artisans in
lock making. Soon many artisans began manufacturing locks and its
components at their homes with the help of their family members including
children. Many families living in the adjoining villages of Aligarh city also took
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up this work out of their economic compulsions of insufficient income from
agriculture. With this the lock industry spread to surrounding villages too. A
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majority of lock makers at that time were Muslims. With the partition of the
country in 1947, most of Muslim master craftsmen are artisans migrated to
Pakistan leaving a void and creating a slump in the lock industry. However,
this situation did not continue for long.
The Punjabi Hindus migrated from Pakistan to Aligarh soon realized the
potential of this industry and started producing locks with the help of locally
available skilled labour. The social composition of lock makers changed but
production of locks on mass scale was resumed. The Government also
helped the industry by offering various incentives. The industry emerged as
the most important industry of the town offering employment to a large
number of people and producing lock worth crores of rupees. Today locks of
different types are made in Aligarh, sent to different areas in the country and
exported to many countries of the world.
The lock industry in Aligarh city mainly comes under small scale and cottage
sectors. A large part of it comprises household units and workshops. They are
largely unorganised and unregistered. There are some relatively big and semi
unorganised units too but their number is very small. The location pattern of
this industry is such that while the big units are located in the industrial Estate
and on the outskirts of the city the smaller units are scattered all over the city.
There is lower, a large concentration of smaller units in selected mohallas. In
these units, the various processes of lock making are carried out mostly by
manual method. They also employ bulk of the child labour force. Locks are
made in Aligarh both by traditional method and modern methods. The
traditional method is mostly used in making heavy locks of brass and iron.
Under this method the lock maker designs a lock and obtains an order from
the trader. The trader while placing order also advances some amount or a
loan to the lock maker to buy essential raw materials and components. The
lock-maker then gives the raw material to moulder along with a model.
Moulder castes all the pieces as per specification and returns them to the lock
maker who then files them.
The lock-maker then assembles locks with the help of other essential
components like the U-shaped bar, springs, keys etc. bought from the market
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and delivers them to the trades. The traders get the locks finally polished and
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engraved with his brand name before marketing them. The smaller locks are
made in factories with modern method of production. Power presses are used
for cutting, bending, making grooves, smoothing and piercing holes in locks
and keys. The rusted components of locks are polished on buffing machines
or given dhol or drum polishing. Generally the parts of locks that are visible
and require electroplating are first polished on buffing machine and the parts
which are visible given drum polishing. In case visible parts are not
electroplated, they are spray painted. Aligarh lock industry is facing problem
to compete in market. It has lost its cutting edge over other. Supply chain is
not a new concept for this region but it requires to up-gradating with modern
supply chain management. Aligarh lock industry follows following practices.
Table 1.1: About Aligarh Lock Industry
S.No. Head Unit Particulars
1 Registered Industrial Unit No. 9898
2 Total Industrial Unit No. 12000
3 Registered Medium & Large Unit No. 22
4 Estimated AVG. No. of Daily worker No. 5
in small Scale Industries.
5 Employment in Large and Medium No. 35000+
Industries
6 Number of Industrial Area No. 5
7 Turnover of small Scale Industry In Lakh 250.00
8 Turnover of Medium & Large Scale In Lakh 1250.00
Industries
Source:-DIC, Aligarh
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1.8.2. Growth of Aligarh Lock Industry
Table 1.2: Year wise Growth of Aligarh Lock Industry
Year Number of Registered Employment Investment
Units In Lakh(Rs.)
Up to 1984-85 744 3640 3868.80
1985-86 62 360 766.32
1986-87 85 450 530.40
1987-88 171 920 1253.43
1988-89 127 690 1043.94
1989-90 223 1200 1750.55
1990-91 232 1420 2139.04
1991-92 356 1540 3111.44
1992-93 268 1156 2470.96
1993-94 296 1280 2474.56
1994-95 99 620 1014.75
1995-96 118 730 1327.50
1996-97 111 620 1060.05
1997-98 243 1210 3234.33
1998-99 292 1120 3285.00
1999-2000 256 1340 3033.60
2000-1 390 1850 4968.60
2001-02 463 2330 6407.92
2002-03 569 2820 9320.2
2003-04 506 2640 8526.10
2004-05 631 2860 10859.51
2005-06 530 2430 8628.40
2006-07 307 2140 3794.52
2007-08 560 2335 3945.25
2008-09 563 2632 4115.33
2009-10 567 2580 5643.47
2010-11 561 3303 9976.56
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Total 9330 46216 108550.53
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Source:-DIC, Aligarh
Definition of Micro, Small & Medium Enterprises
In accordance with the provision of Micro, Small & medium enterprises
Development Act, 2006 the Micro, Small and Medium Enterprises (MSME)
are classified in two class.
(a). Manufacturing Enterprises-The enterprises engaged in the manufacture
or production of goods pertaining to any industry specified in the first schedule
to industries (Development and regulation) Act 1951 or employing plant and
machinery in the process of value addition to the final product having a distict
name or use. The manufacturing Enterprise are defined in term of investment
in Plant & Machinery.
(b). Service Enterprises: The enterprises engaged in providing or rendering of
services and are defined in term of investment in equipment.
Table 1.3: Differentiate among the enterprises according to MSME act 2006
Manufacturing Sector
Enterprises Investment in Plants & Machineries
Micro Enterprises Does not exceed twenty five lakh rupees.
Small Enterprises More than twenty five lakh rupees but does not exceed
five crore rupees.
Medium Enterprises More than five crore rupees but does not exceed ten
crore rupees.
Service Sectors
Enterprises Investment in Equipments
Micro Enterprises Does not exceed ten lakh rupees.
Small Enterprises More than ten lakh rupees but does not exceed two
crore rupees.
Medium Enterprises More than two crore rupees but does not exceed five
crore rupees.
1.8.3. Socio-Economic Factors of Lock Industry
The total geographical area of Aligarh district is 3648.31 sq km. It is 32th
largest district of the state of Uttar Pradesh and 38th largest in India in terms
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of total area. Aligarh is one of the 13 selected as a smart city cities of the state
and is the administrative headquarters of Aligarh district, Aligarh Police
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Range and Aligarh Division, and has a population of about two million
(estimate). Aligarh city grew up as an economic and political center, later
growth was very haphazard, which has resulted a high degree of urban
congestion. The core of the city has a marked degree of compactness and a
very high density of population. In the course of time, the streets in the city
have become narrow and more irregular. In the first census, which was
conducted in 1847, the population of Aligarh city recorded as 36,181 persons
and by 1853 the total population rose to 55,001 persons, though in 1865 it
had fallen down to 48,403 persons. Since then, there has been a
considerable increase which started even before 1881 and continued to 1901.
Afterwards, the population of Aligarh continued to decline for two consecutive
decades of 1901-11 and 1911-21. Since 1921, the growth has been steady
and it continued up to 1971 with a slight fluctuation in 1951. During the post
independence period, Aligarh experienced a marked growth of industries in
residential areas. The 1961 Census categorized Aligarh as a service-cum-
industrial centre but, the 1971 Census reclassified it as industrial-cum-service
centre (Siddique, 1975).
As the city entered in 1990s, the census reports gave new records of the
population growth i.e. 49.75 per cent. In the subsequent census of 2001 there
has been a downfall in growth rate by 10 per cent i.e. 39.23 per cent at that
time the actual population was 6,69,087 persons. During the period of 1901-
2011 the population of Aligarh city has been increased by 8,00,491 persons,
which shows a growth of 1110.50 per cent. As per the provisional reports of
the Census of 2011, population of Aligarh is 8,72,575 persons; in which males
and females constituted 4,63,123 persons and 4,09,452 persons respectively
with a growth rate of 30.41 percent. The sex ratio in Aligarh city is 884
females per 1000 males. Aligarh city is governed by Municipal Corporation
which comes under Aligarh Urban Agglomeration. Although Aligarh city has
population of 8,72,575 persons; its urban / metropolitan population is 909,559
persons of which 4,82,828 constitute males and 426,731 as females. Aligarh
Metropolitan Area (AMA) includes Aligarh City and three suburbs namely;
AshrafpurJalal, Kwarasi and Sarsaul. According to an estimate made with the
help of geospatial method by Farooq and Ahmed (2008) the area of Aligarh
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city has increased to more than 50.54 sq km. and the density automatically
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increased to 17,265 persons per sq km.
Table 1.4: Population Growth in Aligarh City (According to Consensus 2011)
Census Total Decennial Actual Decennial Growth (In
Year Population Increase Percentage)
1901 72084 - -
1911 66344 -5740 -7.96
1921 66963 +619 +0.93
1931 83878 +16915 +25.26
1941 112655 +98777 +34.31
1951 141618 +28963 +25.71
1961 185020 +43402 +30.65
1971 252314 +67294 +36.37
1981 320861 +68547 +27.17
1991 480520 +159659 +49.75
2001 669087 +188567 +39.24
2006 789529 +120442 +18.00
2011* 872575 +203488 +30.41
2021** 1249352 +376777 +43.18
1001-2011 872575 +800491 +1110.50
Source: (a). Aligarh District Census Handbooks: Village and Town Directory, 1971, 1981, 1991 and 2001.
(b). *Census of India 2011(Provisional).
(c). **Extrapolations made by India Development Authority (ADA).
Table 1.5: Aligarh District Information at Glance
Aligarh District at a Glance
Description 2001 2011
Actual Population 2992286 3673849
Male 1607402 1958536
Female 1384884 1715313
Population Growth (In Percentage) 22.15 22.78
Area (in Sq.Km) 3649 3649
Density (Persons‘ sq.km) 820 1007
Percentage share to U.P Population 1.80 1.80
Description Rural Urban
Population (Percentage Share) 66.89 33.11
Total Population 2457268 1216581
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Male Population 1312501 646035
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Female Population 1144767 570546
Source: Census of India 2001 and 2011 (Provisional)
Table 1.6: Aligarh City Information at Glance
Aligarh City at a Glance
Description 2001 2011
City Population 669087 872575
Male 254616 463123
Female 314471 409452
Population Growth (In 39.24 30.41
Percentage)
Area (in Sq.Km) 40.43 >50.54
Density (Persons‘ sq.km) 16.549 17.265
Percentage share to U.P Urban 1.93 1.96
Population
Aligarh Metropolitan Area
(Aligarh City, Asharafpur Jalal, Kwarsi and Sarsaul)
Population: 909559 (482828 M and 426731 F)
Aligarh city is governed by Municipal Corporation which
comes under Aligarh Urban Agglomeration
Source: Census of India 2001 and 2011 (Provisional)
The role of small and medium enterprises (SMEs) of any country in its
development and economic growth has always been well recognized and
appreciated. Economic activities in the developing as well as developed
countries heavily depend on the performance of the respective SMEs. Ashrafi
and Murtaza (2008) have quoted some statistics on the contribution of SMEs
as published by the World Bank in the Oman Economic Review. Table: 1.7
reveal that SMEs have a share of over 55 percent in GDP of the OECD
countries and between 60 to 70 percent of GDP in middle-Income and low
income countries, while generating 60 to 70 percent employment. SMEs, for
that matter, have also been under study in academics for various issues
pertaining to their contributions (Ashrafi and Murtaza, 2008), performance and
competitiveness (Garengoet al., 2005; Wincent, 2005; Singhet al., 2010),
limitations and problems (Chew and Chew, 2008), organizational factors
(Beatrice and Heijden, 2001) and adoption of newer
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techniques(Ramaswamyet al., 2002; Wilson and Roy, 2009).In India, an
industrial unit with its fixed investment in plant and machinery not exceeding
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Rs. 10 million (approx US$ 22000) is considered as a small scale enterprise
(SSE). It is estimated that an investment of Rs. 0.1 million in plant and
machinery by the SSEs, on an average, produces goods and services worth
Rs. 0.5 million and generates employment for four persons. Over 40 per cent
of the total export from the country is contributed by these SSEs (IEIP, 2009).
There are many products, which are manufactured mainly by SSEs in various
industries like leather, metal, chemicals, wood-carving, sports, and textiles.
Lock manufacturing also falls under the small-scale sector in India and is
dominated by the un organised sector, which accounts for two-third of the
industry annual turnover of Rs. 12–13 billion (approx US$260 million–280
million) The organised sector of the Indian lock industry, with an annual
turnover of Rs. 4 billion (approx US$ 88 million), includes brands like Godrej,
Harrison, and Link (BL, 2004).The lock industry of Aligarh, a district in the
state of Uttar Pradesh, is a major contributor to the manufacturing sector of
the SSEs in the country .There are 4–5 large lock manufacturers, 25–30
medium sized, and over 6000 small manufacturers.
About 25,000 employees work in these units. A large variety of locks are
being manufactured in the city, which are used for different purposes. Pad
locks, cable locks, cycle locks, auto locks, shocker locks, deck locks, shutter
locks, and match number locks included in the list. The daily production of this
industry is approximately half a million locks. Almost 30 per cent of the
products are exported. Some preliminary investigations of the industry
revealed that the lock manufacturing units, by-and-large, are either unaware
of even the fundamental techniques of inventory management or do not
practice them for one reason or the other. This scenario of the industry with
particular reference to the significance of inventory costs in their business has
inspired us to take up this study. Three lock manufacturing units are selected
as representatives of the industry to understand and analyze the inventory
systems under practice and suggest ways to improve on their inventory-
related costs and efforts.
208004
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Mobile: 7753818181, 9838033084

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Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Table 1.7: Sectors wise growth in gross district product till 2005
Manufacturing/Service Sector
2000-2001 2005-2006
GDDP NDDP GDDP NDDP
Agriculture 132870 123179 188605 177345
Forestry and Logging 4167 4033 7516 7264
Fishing and Aquaculture 28 25 51 46
Mining and Quarrying 1341 1072 2266 1824
Manufacturing MFG. 37606 28610 82998 61755
Registered MFG. 12218 7900 38692 26158
Unregistered MFG. 25389 20710 44306 35596
Electricity, Gas and Water 21691 5849 7916 3592
Construction 21713 21107 40009 38807
Trade, Hotels and Restaurants 49062 47331 77489 74349
Railways 3500 2460 6036 428
Transportation by other means 14867 12886 25044 21816
Storage 343 262 989 583
Communication 343 3254 10751 8312
Banking and Insurance 9773 9646 15297 15083
Real Estate and Legal 28165 22108 45984 36051
Public Administration 19105 16395 27479 23830
Other Service 31346 29491 48841 45500
Total 413527 356318 670269 578339
Total GDP 381290 327709 587271 520436
Total District Population 2960800 2960800 3317300 3317300
Per Capita Income(in Rs.) 13067 11068 17704 15689
Source: State Planning Institute, Economics and Statistics Division, Government of Uttar Pradesh.
Service Enterprises- Approximately 1500 service enterprises in Tailoring,
Engg, & Beauty Parlour are working in Iglas, Gonda& in Aligarh city.
Estimated 8000 employees (Average 5-6) are working under them. App. 2.5
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Lac is the turnover of these enterprises.
28
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Table 1.8: Details of identified cluster
1
Principal Products
Locks and Hardware
Manufacturing in the Cluster
2 Name of the SPV
Aligarh Small Industrial Allaeni
(P) Ltd Indl Estate Aligarh
3
No. of functional units in the
App 2500 (12000+ in all cluster)
cluster
4 Turnover of the Clusters App 1500 Crore
5
Value of Exports from the
App 800 Crore
cluster
6 Employment in the cluster
10000 App. (25000+in all
clusters)
7
Average Investment in Plant &
App. 2.5 Lakh
Machinery
8 Major Issues / Requirements
Shortage of Power, Poor Roads,
Modern Technology.
9 Presence of Capable Institute NSIC
10 Thrust Area Shortage of Power.
11 Problem & Constraints
Shortage of Power, Poor Roads,
Lack of Modern Technology.
Present status of the cluster: - Primary proposal to provide modern technology has already been sent to Government
through SPV.
1.8.4. Major Lock Manufacture of Aligarh
Pavna Zadi Pvt.Ltd.
Pavna Group has a well-equipped Design & Development section assisted by
professionals. They are always trying to improve quality of their each product
by advancement in technology and bring down cost effective as well. o retain
and reinforce our position as a leading Indian manufacturer of automotive
genuine spare parts, to meet the aspirations of customers in domestic and
export markets. Clients are HERE,Atul Auto, Ashok Leyland, Honda,Bajaj etc.
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Harison Locks Pvt Ltd.
29
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

HARRISON Lock is a recognized name all over the globe as the authentic,
enduring name in padlocks and security products. R.P.Locks Company
founded in 1947. We worked very hard in 6 decades to earn and maintain the
trust of our patrons by delivering on our promise of quality, strength and new
products with setting their application and performance. Harison is one of the
largest traders of pad locks and security products in India. We are
continuously improving the quality to produce excellent products with new
innovation and techniques Harrison is a Brand synonymous with Locks,
Hardware, and Security solutions in India with strong channel partner and
dealer network across the country. Its products are within reach of an end
user. We believe to sale every product with long-term relationship with its
customer, therefore, sell only the best so that its customers may feel secure,
and satisfied with Harrison. Harrison planned Star Priority Dealer to ensure
easy availability and installation of Harrison products with ―Touch and Feel
experience by the end user .‖
We are enlarging our network of channel partners and dealers and are
augmenting it further to reach in new areas. A consumer now has
unparalleled convenience to buy trusted products viz. Locks, Door Handles,
Main Door Locks, Furniture Locks and Hardware, Glass Hardware and Door
control system i.e. Telescopic Slides, Floor Spring and Door Closer etc. under
one Brand HARRISON and under one roof. Our Star Priority Dealer will also
extend Pre & Post sales services and technical knowledge to carpenters and
end user also.
Harrison‘s R&D department ever remains ready to introduce their new series
of world class, modern, sleek and trendy looks, yet strong and sturdy with
added safety features products time to time that matches international
specifications and standards at affordable prices. We salute all our customers,
Channel partners and professionals for their continuous patronage from more
than 6 decades and assure best services and products always.
 Harrison has Pan India presence with their 500 channel partners & 2000
dealers.
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

30
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

 Harrison distributing a wide spectrum of products encompassing Locks,
Door Hardware, Furniture Hardware, Door Control and Architectural Glass
Hardware segment in India.
 Harrison believes in innovation of their product range, improvement in
product quality, design, utilizing new technology, aesthetically appealing
product in tune with emerging demands of the end users.
 Harrison maintained consistent growth up to 30% annually from last
couple of years.
 Harrison has launched pilot project for chargeable Installation service in
Delhi & NCR (*Conditions Apply) so that fixtures could be fixed through
trained hands.
 Harrison established separate division for export to promote their products
worldwide.
 Harrison approved in Government Organization and also has presence in
modern trade.
Link Locks
Entrepreneur of Links locks went around the world to study lock technology
and was very much inspired by western standard of quality & technology.
Thereafter he started R & D dept. inn his factory with young engineers. This
team of highly motivated & dedicated engineers developed new designs of
special purpose machines giving higher production with better accuracy.. To
achieve highest standard of accuracy the unit has CNC wire cut EDM
machines, millings, lathes, surface & cylindrical grinders, shapers to name a
few. To achieve highest standard of accuracy the unit has CNC wire cut EDM
machines, millings, lathes, surface & cylindrical grinders, shapers to name a
few. It will not be out of place to mention here that India is an advanced
Country so far as lock technology is concerned. Link Locks is the second
largest lock manufacturer in the Country and is a house hold name.
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

31
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Figure 1.1: Picture of Pad Locks
Figure 1.2: Picture of Handle Locks
Figure 1.3: Picture of Mortise Locks
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

32
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Figure 1.4: Picture of Furniture Locks
Figure 1.5: Picture of Shutter Locks
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Figure 1.6: Picture of Cycle Locks
33
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Figure 1.7: Picture of Rim Locks
Key Locks India
Company M/S V.K RAJ industries Aligarh (U.P) INDIA,founded in 1944, by
the late legendary Sh.Harish Chandra jain,who is supposed to be a pioneer in
manufacturing of solid brass padlocks, brass tokens and allied products. Due
to expanding buisness M/S KEY LOCKS INDIA came into existence in
1985,under the able guidance of Sh.Ravi Jain,son of Sh.Harish Chandra Jain,
totally devoted to security locks in its present form.These locks are marketed
under the brand name ―PRIDE . Key Locks India‘s success is attributed to‖
the commitment in providing innovative solutions to the industry and caters to
the client‘s needs (including banks, railways or as the case may be). We have
a well equipped manufacturing plant with modern machines like Bath salt
furnace, for hardening the shackle of padlocks, bright plants to give the
desired finishes to our products.
Jainson Locks
JAINSON Group is a renowned Indian locks manufacturer since 1955. With
the motto, 'Quality before Variety', Jainson Locks continues to build upon its
spirit of innovation, value and better quality for the customer. Generations of
people have grown up with Jainson Locks products at home, School and
work.As the remarkable manufacturer and exporter of Pad Locks, Internal
Door Locks, Internal Shutter and Godown locks, Internal Furniture Locks,
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Mortice Locks and Mortice Handles continues to build best quality and value
products into its expanding lines of Security Industry. As safety and security
34
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

gain importance with the world's consumers, Jainson Locks continues to
develop products that present tidy security solutions. We are proudly here
with a huge collection of quality locks at affordable price. JAINSON Group is a
renowned Indian locks manufacturer since 1955.
With the motto, 'Quality before Variety', Jainson Locks continues to build upon
its spirit of innovation, value and better quality for the customer. Generations
of people have grown up with Jainson Locks products at home, School and
work.As the remarkable manufacturer and exporter of Pad Locks, Internal
Door Locks, Internal Shutter and Godown locks, Internal Furniture Locks,
Mortice Locks and Mortice Handles continues to build best quality and value
products into its expanding lines of Security Industry. As safety and security
gain importance with the world's consumers, Jainson Locks continues to
develop products that present tidy security solutions.We are proudly here with
a huge collection of quality locks at affordable price.One earns money for their
betterment, for there peace but this money itself becomes the cause of
tension. To guard hard earning wealth, is too tedious and practically
impossible. The second option is to put a check/guard on the money through
other means. In this framework LOCKS are the best substitute.At present
JAINSON provides you with a great variety of locks consisting of Pad locks,
Shutter locks, Door locks, Furniture locks, Mortice locks, Mortice Handles etc
with one year warranty.
Konark Locks
It was established by Sri B.D.Gupta, a well known industrialist of Aligarh
approx. 2 decades ago for manufacturing & serving the market needs of Cycle
Locks under the brand name of KONARK. Today it is the foremost choice of
Cycle owners and the trade. We have a workforce of dedicated, experienced
and technically skilled & unskilled personnel‘s, which is headed by well
qualified and experienced Design Engineers and Production Managers. Our
experience of nearly 3 decades in the field enabled us to gain a competitive
edge in the highly demanding National & International Markets. The technical
expertise and entrepreneual skill of Sri B.D.Gupta and the continued
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

patronage by our valued customers are the matters of Pride for Konark Locks.
35
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Silvery, and B.C.P. by most advanced technology of production, which
ensures quality of internationally acceptable standards. The entire production
processes are completed under one roof and at every stage of production, our
Quality Control personnel conduct prescribed test. This way production &
quality control goes together leaving no scope of defective product at the final
stage of packing. Company has a separate Wing for Research &
Development work, which reflects Company's Hunger for Innovation. During
this period, Management concentrated most of its attention towards
developing a good market for its products in the country. Today it holds a vast
network of approx. 900 plus Dealers throughout the country, which is regularly
increasing. Today Company's products are available in every nook and corner
of the country, which is a symbol of its products' popularity amongst its
consumers and the Customers' trust earned through Timely Delivery of
Excellent quality products.In the recent past, Company, with a view to entering
into the Export market also, installed machinery of latest technology to
increase both production & productivity. Our infrastructure is focused on world
class quality and accuracy to provide maximum customer satisfaction. As a
principle, no child labor is employed in our Company and we provide a healthy
and Pollution Free environment to our workers. The welfare of Company's
workers is uppermost in the mind of the Management. Undoubtedly, Company
is bound to make its place in the international market as well. Its presence on
the Internet is the first step towards export promotion. The Company's
success lies in the untiring efforts of Sri B.D.Gupta, its sole proprietor, who
keeps constant eyes on the frequent technology advancement and technology
up gradation in the different parts of the world.
1.8.5. Present State of Aligarh Lock Industry-Need for Proper Supply
Chain Management-General issues raised by industry association during the
course of meeting availability of uninterrupted Power Supply at lower rate,
better road connectivity, enhancement of investment limit in Micro, Small &
Medium Enterprises. State Industrial Policy: It must be declared attractive
Industrial policy of neighboring state. Various central/ state departments are
operating similar nature of activities/ schemes with varying subside/ limits,
208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

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