Haier

SUPPLY CHAIN OF FRONT LOAD (FULLY AUTOMATIC)

WASHING MACHINE OF HAIER PAKISTAN PVT LTD

Course Title: Managing Sustainable Supply Chain

PROJECT
Resource person: Dr. Asher Ramish Submitted By: Muhammad Sheraz
Aleem Inam
Program: MBA 1.5(Evening) Asad Ullah
Aman Haroon
Section: G Fasih Abbas
Umar Farooq
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Contents
1. Introduction ……………………………………….……………………..……………………......3
1. Haier Group……..………………………………….……….…………………………………..…3
1.2 Mission and Vision ……………………………...………………………...………………….…3
1.3 Strategic Planning…….…………………………………………………………………….….…
4
1.4 Core Values……………………………………...………………………………………….……4
1.5 Corporate Philosophy………………….…………………………………………………………5
1.6 HAIER Pakistan……………...……………………………………………………………….….5
1.7 Product Line
……………………………………………………………………………………...5
1.8 Haier Capabilities………………………..…………………………………………………..…...6
1.9 Background Info of Haier Pakistan Supply-chain ……….………………..………….....………6
1.10 Growth Strategy in the Era of IoT…………..………..………………..…………………..…..7
1.11 Overview to Front Load………………………….……………...……………………………...7
2. End to End Customer Supply Chain of Front Load WM ………………………….……....9
3. The Supply Chain OF Front Load Washing Machine ………………………....
………………..12
4. Reverse Logistics of Front Load Washing Machine ……………………………………………
14
5. Pipeline Mapping of Front Load Washing …………………………………………...
……........16
6. Value Stream Mapping of Front Load Washing…………………………………………….17
7. Value Chain of Front Load Washing Machine ……………………………………………….18
8. Order Fulfillment Mapping of Front Load WM…………………………...………………...21
9. Information Flow of Front Load Washing Machine …………………………….……..……22
10. Material Flow of Front Load Washing Machine ……………………………………..
……….24
11. Cash Flow of Front Load Washing Machine ………………………….………………………25
12. Process Activity Mapping of Front Load WM…………………………………………………
26
13. Problem Analysis ………………………………………………………………………………..29
14. Recommendations …………………………………………………………………………….…
29
15. Action Plan ……………………………………….….…………...…………….………………..30
16. Conclusion ……………………………………………….…………………....………………...31

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Acknowledgements
All praise to almighty Allah, the most merciful and the most beneficial, who bestowed upon our health, power of
communication and opportunity to successfully complete our Project.

The preparation of this of this Project was really being a learning exercise for us. We are grateful to many people, including
Our supervisor Professor, Asher Ramish who helped us in preparation of this Project, friends who shared their insights
and experience with us and have been helpful in this effort. We are also very much thankful to the staff of Haier Pakistan
Pvt. Ltd including production officer Mr. Arif Zaman, product manager at washing machine department Mr. Noor
Muhammad Khan and Ms. Hira Sajjad from supply chain department for their kind and excellent cooperation and providing
data and all other information and the chance to learn something new.

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1.Introduction:
1.1 Haier Group:

Haier is the world’s largest white goods manufacturer and one of China’s Top 100 IT Companies with over 10.3% of global
market share according to data released by Euro monitor. Haier has ten major R&D centers, 25 industrial parks and 122
manufacturing centers globally and more than 76,000 employees throughout the world. Haier specializes in technology
research, manufacture industry, trading and financial services. Haier 2018 global revenue was RMB266.1 billion. Haier a
major appliances brand always strive to give the best product to all kind of consumers, for that purpose they do market
segmentation to provide the product of every consumers, say if we talk about WM, they have 3 segments, low end product
is washers, middle is semi auto and for upper middle and high class they have fully automatic top load and front loads.
Haier is the leader in home appliances industry by capturing 10.3% Market share.

Haier has more than 38,000 patents in 25 countries and regions, including 23,000 invention patents. These patents have
been obtained either through independent R&D or from overseas M&A. Haier's high-quality products have won more than
170 world-class industrial design awards such as the iF Design Award and the Red Dot Design Award, ranking first in the
industry. Haier has quite some control over suppliers which enables them to further lower down the bargaining power of
suppliers. Haier is a vertically integrated company which engages in the design, manufacture, marketing, distribution, and
after sales services of its own products. Haier is able to exercise strict control over the quality of the supplies and services
provided. Haier has more than 240 subsidiaries and there are numerous other suppliers available worldwide to Haier.

1.2.Mission:
To provide quality products & services to the complete satisfaction of our customers and maximize returns for all
stakeholders through optimal use of resources. While the business world is preoccupied with increasing market share and
expansion, Haier is interested in something much greater, something larger than the company itself; something, as apparent,
Furthermore, we do not believe in maximizing profit at any cost. Rather, we believe that maximizing profits and increasing
market share can only be achieved by providing our clients with a product that will truly higher the standard of living. At
the heart of our goals is the heart of our client. We aim for higher and you should aim for HAIER.

1.3.Vision:

The main competitive advantage that Haier group has is the innovation being the main focal point of the
company’s mission as well as their high-quality.

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1.4 Strategic Planning:

 Brand building strategy

Having won the quality gold medal of refrigerator industry through comprehensive quality management.

 Diversification strategy

To apply Haier’s management model to overseas market to grow bigger and stronger.

 Internationalization strategy

To expand business to overseas markets and to enhance brand reputation.

 Global Brand strategy

To create localized Haier Brand globally.

 Networking strategy

From Haier’s perspective, the way of implementing the development strategy of a networked enterprise is embodied
in three respects:

Border-free enterprise, manager-free management and scale-free supply chain.

 Supply Chain Strategy 2013:

Zhang Ruimin, the CEO of the Haier Group, announced that as of the next day the company's central distribution
center would be shut down. From then on, Haier products would no longer be sent to a central warehouse, where they
would sit waiting until retail customers placed their purchase orders. With the new "zero inventory" strategy, Haier
would have to ensure that the supply chain ran so smoothly that products moved without a hitch from the factory
directly to retail stores.

1.5 Core Values:

 Continues improvement and innovation

 Clint focus
 Team work & collaboration
 Honesty and trustworthiness

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 Goal orientation
 Proactive Accountability
 Pursuit of excellence
 Passion for Future

1.6 Corporate Philosophy:

 Focus on market order, target achievement & to be No. 1

 Follow T-module (Time, Target, Today, Terminal)
 Open & candid environment
 Be honest and keep one’s word
 Professional communication
 Continuous innovation

1.7 HAIER Pakistan:

Haier Pakistan is a consumer electronics and home appliances company in Pakistan. Established in 2000, it is a subsidiary
of the Chinese multinational group Haier. It is one of the largest companies in Pakistan's home appliances market, in terms
of sales and revenues generated. Haier Pakistan is a private organization. It’s working as branch selling activities to
distribute. It implements the rules of Haier Pakistan Lahore head office. The basic objective to improve the lives of all by
providing a challenging product with inventive ways to continuously satisfy the customer needs.

For the government of Pakistan Haier is a main business partner with special emphasis on raising Pakistan economic growth
through hostile and balance policies. Technology oriented goods and services offered though its large network of branches.
Haier deals in all kind of home appliances. Haier Pakistan has built up a strong sales and distribution network comprising of
3,000 dealerships and dedicated sales shops covering the length and breadth of Pakistan.

1.8 Product Line:

Product Line of Haier Pakistan Pvt. Ltd as under,
 Refrigerator
 Split Air-condition
 Washing Machine
 Microwave Oven
 Kitchen Appliances
 Water Dispensers
 Irons
 Vacuum Cleaners
 LCD-LED
 Deep Freezers
 Smart Phones
 Computers
 Recently expanded to kitchen solutions, like hood, hobs & built-in ovens

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 1.9 Haier Capabilities: Haier
Integrated household appliances leader with strong market positions globally and growth across all categories

Strong portfolio of brands targeting each consumer segment

U+ Smart home: a leading interactive smart home solution provider built on a proprietary platform
with widely-compatible connectivity

Transformation to mass customization through proprietary and user-centric manufacturing systems

Extensive, fully-integrated, online and offline distribution, retail and services network with
enhanced user interactions

World-class R&D capabilities and open innovation platform lead to innovative products

Unique Management Model, experienced and visionary management team

1.11 Background info of Haier Pakistan Supply-chain:

The supply chain department takes care of the orders received from wholesalers, retailers and dispatches the orders. Usually
supply chain takes care of the flow of goods in the company and out of the company. In the company deals with the supplies
coming inside the company and out of the company pertains to products getting from warehouses to customer locations.

Fous On Shorter
Delivery Period
Strategic Customized
Placement Demand

Win-Win
Understandable Coordination
Mechanism

Order oriented
Criteria
Production

Accuracy
Haier Promised 8h
Delivery In Major
pakistan Cities

Promised 24h
Flexibility Delivery Outside
Major City

Promised 48h
Delivery
TImelines Nationwide Main
Transportation
route

R&D Process To
Profit Margin Suppliers Are Improve Product
Destined To
Satisfy The
Demands of End
User

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1.12 Growth Strategy in the Era of IoT

1.12 Overview to Front Load:

Haier is a global leader in washing industry, and its Front Load is becoming the fastest growing product in the industry
(selling almost 60k+ units per year), because the Company has created the washing experience of health, intelligence,
comfort and energy conservation through original technologies including iterating air wash and direct drive motor(patent).
New technologies including Smart and Artificial Intelligence were launched and applied to introduce solutions, such as
smart and exclusive laundry which can automatically calculate and match the best washing procedures based on the
information of clothing type, material, stain type and water quality and realize the high-grade exclusive wash.
Was
Soak
h

Dry Rinse

Spin
Haier continues to change washing habits of end user with One Touch Solution to
be the slogan of WM business with carrying on the series of new product developments and fulfilling washing
requirements. Haier Pakistan provides their best product to all kind of consumers, for that purpose they do market
segmentation to provide the product of every consumers, say if we talk about WM, they have 3 segments:

Low end consumer product is washers.

For middle is Semi Auto.
For Upper middle and high-end consumers, they have fully automatic Top Load and Front Loads.

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Supply chain of Front Load Washing Machine:

Supply chain of Front Load washing machine start from the Sales forecasting which includes Market demand, Market trend,
Customer need and seasonal trend and for that they have local offices in every region of Pakistan, which analyze these areas
and Forward their report to the sales Branch. Sales Branch coordinate these reports with Sales head Office (HPK) includes
Product team, marketing, HR, Finance, Logistics, sales operations and after sales department. Product team start their plan
for Front Load on the basis of 13 months forecasting, for that they are using OPSI management system(opening, purchase,
sales, inventory), which indicate how much units or inventory they have already in the warehouse which is opening and
how much they need more which is purchase. Product team then add opening + purchase and minus the sales forecast then
the remaining is the inventory which they always keep for unconditional purposes. On the basis of these forecast and OPSI
system they order different models within the front load and for that they have to order 3 months back, for example if they
are ordering for January then the order will be put in October because HNR (Haier and Ruba) a local manufacturer is further
using 4 different sources:

HNR
(Haier&Ruba)

CKD
CBU LOCAL 3rd Source
Complete
knocked down Complete
build-up

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UPSTREAM
DOWNSTREAM

CKD PARTS CKD PARTS CKD PARTS CKD PARTS

o EARTH SCREW 5*12 o PACKING BAG o OVERFLOW PIPE o RADIATING PULLEY CENTRAL-2
o BOLT A RADIATING PULLEY (ALL MODEL) o NAME PLATE o DRAIN VALVE o EARTH WIRE
o PULSATOR FIXING SCREW WITH GASKET o LONG LOCKING BAND o DRAIN MOTOR o WIRE HOLDER
Multan,
o BASE LID PLATE o CONTROL PANNEL FILM FRONT o WATER ABSORPTION GASKET o CAPACITOR
o DRAIN PIPE CLAMP o SMALL LOCKING BAND o WATER INLET PIPE COMPONENTS o COMPUTER SEQUENCER Bahawalpur
DISTRIBUTOR,
o CONTROL ROD SEAT o MOTOR INSULATION CUSHION o CONTROL ROD DRAIN PIPE o LED display Faisalabad WHOLESALER
o SCREW4*12 B TYPE (ALL MODEL) o CABINET HANDLE o CONNECTING PIPE o wire component & RETAILERS
o SCREW COVERS o LINT FILTER o CONNECTING PIPE CLAMP o IRON BINDING WIRES
o SCREW(M8*35) o TOP CONNECT PALTE o V-BELT o EARTH TOOTH GASKET/DENTATE
o BOLTS o FRONT COVER GASKET
o OTHER SCREWS o FRONT CONTROL PANEL o SMALL REED(SPRING) CENTRAL-1
o SCREW 4*7 (SS) o CONTROL PANEL SEAT o U-SHIELD
o CARBON o FLANGE o SHIELD Islamabad,
o ROL BEND-STAINLESS STEEL (0.5*377*1425) o BACK WATER CHANNEL o SAFETY BAG Sargodha,
o SCREW 5.5*14 (SS) o GAS CELL COVER DISTRIBUTOR,
Gujranwala,
o SCREW 4*10 (SS) o PROTECTING COVER/ PULSATOR GASKET WHOLESALER
o POWER CORD FIXING CLAMP o FILTER COVER Gujrat,
& RETAILERS
o FRONT EPS CKD PARTS CKD PARTS Sialkot.
o ABT Detergent Drawer o BARCODE LABEL
o CABINET BUFFER CUSHION o GREASE o POWER CORDBACK DOOR PLATE

END CUSTOMER
o DAMPING COMPONENT o ADJUSTABLE FEET STICKER
o ADJUST BOOT
CENTRAL

LAHORE DISTRIBUTOR,
rd rd WHOLESALER
3 SOURCE PARTS 3 SOURCE PARTS 3rd SOURCE PARTS 3rd SOURCE PARTS & RETAILERS
o Direct Drive (DD) Motors o Polypropylene Block Copolymer o W Silver Grey powder paint
o Polypropylene Block Copolymer (PP
o Wash Motors BG975MO o Pulsator Inner Gasket
AW564)
o WATER LEVEL SENSOR o Polypropylene Block Copolymer o M/B PP Gray-Black
o Poly Propylene Polymer (PP K-8303)
o Auto door lock o Poly Polypropylene AZ564
o A M/B PP Gray
o Fuzzy Logic o Damping Clutch
o Air Dry System o FIXED FOOT HNR
o GI sheet Manufactured HPK HAIER STORES
& Assembled

LOCAL PARTS LOCAL PARTS LOCAL PARTS LOCAL PARTS

o PAINTED CABINET o INNER TUB COMPONENT (ALL MODEL) NORTH
o WATER BOX COMPONENT o EPS Corner
o o
CHECK LIST (ALL MODEL) CABINET (UN PAINTED) o BALANCE RING COMPONENT (ALL
o EPS Inner Tub
REGIONS
o GIFT BAG (ALL MODEL)o Cabinet after punch MODELS)
o EPS Base
o Bottom Gasket EPS o FRONT CORNER GASKET(LEFT) o Balance Ring Up & down DISTRIBUTOR,
o Base Tray Rawalpindi,
o OUTER TUB COVE o BACK CORNER GASKET(RIGHT) o Inner Tub punched WHOLESALER
o Packing Box Peshawar
o OUTER TUB o BACK CORNER GASKET(LEFT) o INNER TUB BOTTOM (ALL MODELS) & RETAILERS
o Manual Book
o PULSATOR o FRONT CORNER GASKET(RIGHT)
o BASE FRAME
o HOOK

SOUTH
REGIONS
CBU Karachi, DISTRIBUTOR,
o HWM120-B1558 DUO Hyderabad, WHOLESALER
o HWM70-BD12636 GNZP Sukkar, & RETAILERS

o HWM70-IM10829 TNZP Quetta

o HWM65-10829 TNZP
o HWM120-B14876

9 o HWM-FL060HEF Figure# 1 End to End Supply Chain of Front Load Washing Machine
 Haier

2. End to end customer supply chain of Front Load washing machine:

Haier Pakistan has partnership with HNR who works as manufacturer of Haier Pakistan and provide finished goods as per

demand .HPK provide order to HNR before three month of actual use In which HNR managed and collaborate with their

stakeholders to meet the demand on time .Initially, HNR conduct meeting with production and share the order of HPK and

then planning for ordering of raw material means what stock to buy, how much to buy when to buy .HPK upstream is

entirely rely on HNR who is collaborating with suppliers China headquarter for different parts of Front Load washing

machine. Upstream in HNR is based on 4 major sources which are CKD Parts, third source Parts, Local supplier Parts, and

CBU.CKD is complete knockdown parts which are a kit of the completely non-assembled parts of a product, HNR received

these CKD Parts from five to six different suppliers in which include Earth Screw 5*12 ,Bolt A Radiating Pulley (All

Model) ,Pulsator Fixing Screw With Gasket, Base Lid Plate, Drain Pipe Clamp, Control Rod Seat,Screw4*12 B Type (All

Model),Screw Covers, Screw(M8*35),Bolts, Other Screws ,Screw 4*7 (Ss),Carbon,Rol Bend-Stainless Steel

(0.5*377*1425),Screw 5.5*14 (Ss),Screw 4*10 (Ss),Power Cord Fixing Clamp

The third source included foreign suppliers who provide different components like direct drive, wash motors, GI sheet,

Polypropylene Block Copolymer Bg975mo, Polypropylene Block Copolymer and different kinds of plastic material for

further manufactured, etc. and there is 4 third source in which included KSA, Dubai, New Zealand, and China-based

factory.

Haier also sourcing from Pakistani vendor where they required ,some of local partner manufactured washing part in HNR

and they pay rent of space as they are also manufacturing parts for other businesses .Actually Haier focused on cost

effectiveness and high quality in Home appliances so major parts they imported from HQ But in Local supplier ,they are

providing Water Box, Cabinet, Outer Tub ,Painted Cabinet, Cabinet (Un Painted),Cabinet After Punch, Front Corner

Gasket(Left)Back Corner Gasket(Right),Back CORNER GASKET(LEFT),FRONT CORNER GASKET(Right) Inner Tub

Component (All Model),Balance Ring Component (All Models),Balance Ring Up & Down, Inner Tub Punched, PS Corner,

Eps Inner Tub, Eps Base, Base Tray, Packing Box, Manual Book, Base Frame, Inner Tub Bottom (All Models) . And in

Pakistan, HNR has four local suppliers who are supplying the material to manufacturing plant.

4th source for supply is china who supply complete built-up unit from HQ to HNR manufacturing plant. The parts of CBU

are written below:

 Hwm120-B1558 Duo

 Hwm70-Bd12636 Gnzp

 Hwm70-Im10829 Tnzp

 Hwm65-10829 Tnzp
 Haier

 Hwm120-B14876

 Hwm-Fl060hef

 Hwm70-B14266
10

After receiving order from different sources, sorted in warehouses As name of T1,T-2 and T-3 ,T-4,T-5 which present stock

T1 on the same day, T-2 on the last day stock, T-5 5th day after the fifth day. which means stock T1 on the same day, T-2

on the last day stock, T-5 5th day after the fifth day, HNR must have to move and utilize the inventory .HNR align with

production team and make and assembled parts and manufactured finish goods. After finishing good ,quality team quality

inspect the products through different processes one by one to ensure quality .After final packaging ,batching and other

formal procedure HNR delivered the Finished goods to HPK and then HPK delivered the finished products in Haier

stores and outlets who sells products via E-commerce and remaining finish goods send to 3 central and 2 region who

further distribute to wholesaler and wholesaler meet the demand of retailers .So, in the last finished goods arrive to end

consumer . This is the whole upstream to downstream process which is HPK follow since 2000.

In Central

Lahore

In Central 1

Islamabad

Sargodha,

Gujranwala

Gujrat

Sialkot

In Central 2

Multan,

Bahawalpur

Faisalabad

NORTH REGIONS

Rawalpindi

Peshawar

SOUTH REGIONS

Karachi

Hyderabad
 Haier
Sukkar

Quetta
 Sales Forecast Haier
Market Trend End of Every Month HNR Warehouse
Seasonal Trend 30 DAYS Sales Branches Share T1 same Day stock Sales
Sales Branches Forecast their Forecast with T-2 Generates PO
Customer Need
T-3
Competitor Analysis Product Team
T-4
T-5

HNR Finance

50 DAYS 4 DAYS
2 DAYS HNR Local Manufacturer Generate SO
13 Months Business Plan
Business Plan Shared with Receives Order from HPK
Made by HPK Product
Functional Departments:
Team HPK-LOG plan
Marketing
Daily Stock
Human Resource
Movements
Finance
Logistics 10 DAYS
Production Product Team prepare
10 DAYS
After Sales Quarterly Business plan Local Supplier Primary HPK
HNR Prepare Their
Sales Operations
Production Plan
Supply chain (90 Days) Logistics

1 DAY 5 DAYS
Arrange
10 Days Inventory 12 Weeks OPSI 2 DAYS Containers &
Management Plan Made Management plan Made HNR Share their Plan
Book In WMS Secondary
with Headquarter (China)
5 Days
HQ Connect with Suppliers
CBU HQ CKD Suppliers 3rd Source Production-
HNR-LOG Stock Lifting
40 DAYS Personnel Scan from HNR
Transportation 3PL All Finished Against Lahore
Pick stock Pack Print Shipping Inspect Packing Products & Shift PO to HPK
Materials/Models Materials/Models Labels Quality to Their Warehouse
Warehouse
2 DAYS
Update Order NO of
Load on Load on Truck HNR Warehouse
Status martials/Models
Container ships IGP-Scan
Count Max Utilization of
Containers’ Space In WMS

Exports Customs Imports Customs Customs Clearance Ground

Transportation 3PL
Containers
50-60+15-20+2 DAYS Loading at HNR
Warehouse
Check DNs &
2 DAYS Plan Own
Parts Inspection Vehicle/3PL
Suppliers Fails On-spot Route
Scanning & IGP
&

Load Vehicles
PASS After Scanning
STO Make by HPK and Make OGP
Product Team
Scheduling & Planning 1 DAY According to Pre-
Locked In HNR-LOG About Which Model is Meeting HNR Between Planned Regional
Movements
Against HPK-LOG Required (Monthly) & Production Team &
How Much in Quantity HPK POD Collection

OGP
0.5 DAY 0.5 DAY
Order Processing HNR-LOG Confirm HNR Finance Generate
HPK PO TO HPK-LOG SO Against HPK PO

STO-Shows on The
Way to Regional
Branches

3 DAYS
Manufacturing of Outer Tub

4 DAYS 3 DAYS 2 DAYS 1 DAY

Manufacturing Line of Inner tub Outer Tub Assembling Control Panel Seat Assembling Sampling Room Finish Products

2 DAYS 6 DAYS 2 DAYS

Manufacturing Line of Balance ring General Assembly Line Packing Line

4 DAYS 2 DAYS 2 DAYS

Manufacturing Line outer cabinet Inspection Line Repairing Line

12 Figure# 2 Supply chain of Front Load Washing Machine

 Haier

3. The supply chain of Front Load Washing Machine:

End of Every Month Sales Branches Shares their Forecast with Product Team on the base of market trend, seasonal trend,
customer need, competitor’s analysis, and growth forecast. After forecasting for all central branches HPK product team
takes 50 days for 13 months’ business plan,10 days for quarterly business plan,5 days for 12-week OPSI management plan
that helps to maintain opening, purchasing, selling and inventory, and 1 day for 10 days’ inventory plan which is made for
avoiding uncertainty and capture the market demand. So, this complete plan HPK shared with their function departments
and HNR local manufacturer who received an order from HPK.

HNR takes 10 days for production plan,2 days to share with HQ, HQ takes 5 days to connect with suppliers (3rd source,
CKD suppliers, CBU HD). After connecting with their supplier align all upstream activities from pick stock to ground
Transportation 3PL. Average of 72 days required for the upstream process to deliver in the HNR warehouse. HNR takes 2
days for parts inspection & scanning and rejected parts return to concern suppliers. After receiving parts of CKD and CBU
HNR conduct meeting with Production team & HPK Product team and decided Scheduling & Planning About Which
Model is Required (Monthly) & How Much in Quantity and locked in HNR Log against HPK LOG

HNR Finance Generate SO Against HPK PO and HNR log confirmed HPK PO to HPK Log and move further for order
processing.

Outer tub required 3 days, line of inner tube 4 days, line of balance 2 and line of outer cabinet 4 days .3 Days required for
outer tub assembling,2 days for control panel seat assembling,6 days for general assembly line in which include line outer
cabinet, after that 2 days for inspection line,2 days for repairing line,2 days for packing line and 1 day in the last for
sampling room finish products.

The HNR warehouse is based on T1, T2, T3, T4, T5, which means stock T1 on the same day, T-2 on the last day stock, T-5
5th day after the fifth day. HPK must have to keep its stock. The next step The HPK sales team generates a purchase order
and the HNR finance department generates sales orders. After this HPK registration, plan the daily movement of stocks in
your WMS software, which is connected to the central and distributors. HPK logistics is concerned with two movements,
primary and secondary.

In the primary movement, HPK arranges containers & books in WMS (ERP software). Production HNR –LOG Personnel
scan on all finished goods & shift to their warehouse and ensure maximum utilization of containers’ space for adding value.
Containers Load at HNR warehouse and on the spot scanning & Inward gate pass made by HPK. Stock transfer order made
by the HPK product team according to preplanned Regional Movements such as stock will be delivered in central in 16
hours, Central 2 in 10 hours and same as per need of distributor and retailers. HNR team made outward gate pass and
upload the details on WMS that helps to show STO on the way to regional Branches.

In secondary movement, stock lifting from HNR against HPK Lahore PO TO HPK warehouse and IGP scan in WMS. HPK
check delivery notes on WMS and make a plan for own vehicle or 3PL Route and ensure cost-effective and time-saving
route for distribution in regions. HPK logistics team Load vehicles after scanning and make OGP and in the end Prove order
delivery from sales branch warehouse.

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Consumer

Direct Helpline No
After Sales Service Retailer

Warranty Eligibility

Collecting Unit By Return Claim Note

HPK Logistics After Sales Services
Generated

Problem Identification Product Repair YES Packing

NO

HPK Logistics
Manufacturer Fault

Consumer
HNR Logistics

NO
Repair HNR Inspection

YES

Supplier Fault Packing HPK Logistics

Issue Against MRN

Production Area Control by Production +
Rejection from Filling
Put Rejected Parts in Rejection Yard

Rejection yard

Inventory
Base Frame Line Control By Production

Pre-Assembly Line

General Assembly Line

Major Frame Line

Control Panel line

Inspection Line
 Haier

4. Reverse Logistics of Front Load Washing Machine:

Consumer can complaint about the performance of the product by following these two methods. Consumer
Ordering Against Rejection
reports complaints through retailers if the product is not properly
MRNworking
Making and they can also Control
complaint
by PPC
Control by Production
through direct helpline number of the company. In both cases of Complaint Company immediately check the
warranty eligibility status of the product through after sale services
Inspection department. If the product is inGenerate
of Rejected Parts warranty
OGP
Control by Inventory
Control By QA
and nor properly working then HPK collect that unit from customers by HPK logistics and then HPK
identify the problem of the product. If the product can get repair the HPK repair the product and packed the
Lifting of Rejection Return of Rejection to Supplier
product again and deliver that product by HPK logistics. If the product
Control cannot get repair by Control
by Inventory HPK the mean
by QA

product has manufacturing fault in it then through HNR logistic deliver the product to the HNR the HNR
inspect the product if the product get repair by HNR they repair the product and packed it and deliver it to
final consumer by HPK logistics. It the product don’t get repaired by HNR mean supplier fault exist in the
Figure# 3 Reverse Logistics Front Load Washing Machine
14 components of the product then product sent to rejection yard.

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(1) (1)

(5) (0.5)
(3)

(4) (1)

(2)

Inner Tub (3)

(2) (3)
(4)

Commodity
End User
Market

Stores

DD Motor
Grey stock
Outer Tub

Balance Ring (2)

Washing machine
finish goods store Outer Cabinet
Distribution Centre
Plastic store Central, central 1
central 2
Finished Plastic

Storing Material Supplier HNR Front Load WM Manufacturer Retailer

16 Figure# 4 Pipeline Mapping of Front Load Washing Machine

 Haier

(71) (2)
Outer Tub
(4) Assembling
(2) Control Panel
(3) Seat
General
Inspection
Assembly (6)

(2)
Distribution Centre

CKD & 3RD (2) North Region, South

Region
Source Sample Room

GI Sheet Raw material

store Packing
 Haier

Monthly forecast

Production
Supplier Supplier Supplier Supplier Control Market Forecast
Front Load Client
1 2 3 4
3 Months
orders

Weekly schedule

Production Supervisor

Shipping (24 Hours)

Receiving

1-Injection 3-
Molding 2-Manufacturing 6-Control 7-General
Manufacturing 4- Line of 5-Outer Tub 8-Inspection 10-Packing 11-Sample
MachineManufac Line outer Panel Seat Assembly 9-Repair Line Room
Line of Inner Balance ring Assembling Line Line
turing of outer cabinet Assembling Line
tub
tub
71 d
I
5 People 4 People 5 People 3 People 4 People 6 People 17 People 2 People 3 People 8 People 2 People

C/T = 10.83 minC/O I C/T = 13.2 minC/O I C/T = 7 minC/O = I C/T = 2 I C/T = 2 I C/T = 4
I C/T = 11 I C/T = 2 I C/T = 2 minC/O I C/T = 2 I C/T = 2
= 4 hr = 2 hr 4.5 hr minC/O = 2 hr. minC/O = 2.5 minC/O = 1 minC/O = 8 hr minC/O = 1.5 = 1 hr minC/O = 1 minC/O = 55
hr hr hr hr min

Lead time=33 d
2d 3d 4d 4d 2d 3d 2d 6d 2d 2d 2d 1d
Processing time=
4 hr 11 min 2 hr 13 min 4 hr 37 min 2 hr 2 min 2 hr 32 min 1 hr 4 min 8 hr 11 min 1 hr 32 min 1 hr 2 min 1 hr 2 min 57 min 29.3 Hr

17 Figure# 5 Value Stream Mapping of Front Load Washing Machine

 Haier

MANUFACTURING FIRM'S VALUE CHAIN

FIRM INFRASTRUCTURE: Management, Finance, Legal, planning, Reporting Relationships.

INDIRECTILY HUMAN RESOURCES MANAGEMENT: Professional Development, Employees Relations, Performance Management, Recruiting, Competitive Wages, Training
CREATE Preprograms.
VALUE AS
SUPPORT ACTIVTIES
PERCEIVED
BY THE
CUSTOMER
TECHNOLONY DEVELOPMENT: Integrated Supply Chain System, Real-time sales Information.

PROCUREMENT: Real-time Inventory, Communication with Suppliers, Purchase supplies & Materials.

MARGIN

INBOUND OPERATIONS SERVICES

OUTBOUND LOGISTICS After sales services
INDIRECTILY LOGISTICSSourcing Production planning MARKETING & SALES
Production control Customer Maintain Values
CREATE Order placement Branding
Quality control order,Processing,Warehousing,Tr Installation
Suppliers ATL & BTL Activities
VALUE AS Resources ansporting
Receiving Raw material
PRIMARY ACTIVITIES Pop Management
PERCEIVED OPSI Management of products,Storage,End
Storing Design
BY THE Transfers users,Collection.
Distributing Packaging
CUSTOMER

18 Figure# 6 Value Chain of Front Load Washing Machine

 Haier

7. Value Chain of Front Load Washing Machine:

Support Activities:

These are such activities which indirectly add value to the product but these are equally important as they provide a
complete infrastructure of the firm, Human Resource, latest technological development and procurement for the
manufacturing of the product.

 Firm Infrastructure

In case of front load washing machine the management of Haier Group make planning for introducing the front load
machines so they make a feasibility report and then the financial budget is approved by the finance department of the
company and then they cover all the legal aspects related to manufacturing/assembling or importing hr. front load machine
or its components. It is a reporting relationship which means that what so ever the plan is made by the company it is shared
with all the integrated departments.

 Human Resource Management:

Under this activity the company looks for its existing employees that are they fit for the production of a new set-up i.e. front
load washing machine. If there are not such employees so they training the existing employees according to the
requirements or they hire outside employees who know the working of front load machines.

 Technological Development:

Haier uses latest technology and advanced automated machines for manufacturing and assembling of front load machines as
compared to their competitors they are always working on technological advancements.

 Procurement:

They use OPSI management model which is a complete package for opening inventory, new purchases, sales and ending
inventory. By using this model, they have a real-time inventory system for their front load machine. This model is also used
for communicating with the suppliers as company uses it to place order for the raw material for front load manufacturing
from suppliers.

Primary Activities
These are such activities which are directly linked to value addition process of the firm for that product. These activities are
directly linked with actual creation and manufacturing of the product. A primary activity would include the receipt of raw
materials, the configuration of the production floor itself, and the packaging of the finished goods.

 Inbound Logistics:

In inbound logistics they use different suppliers of front load washing machine which includes CKD suppliers, CBU
suppliers, supplies from China and local suppliers. Haier orders the raw material from these suppliers and when the raw
material reaches it is stored in the central warehouse of Hair and then distributed to the desired destinations where that raw
material is needed.

 Operations:
 Haier
As the proposed production plan by the management they start working on it and make sure that production is controlled
that is what so ever is the demand for front load in the market that much is being manufactured so that there shall not be
over or under stocking of front load machines. Moreover, they are also quality conscious they want to deliver quality
products to their customers after completion of machine they send it to sample testing room and check its each component
19 to make sure that it is flawless.

 Outbound Logistics:

As they receive the order from the customer for front load washing machine, they process that order and deliver the desired
machine to the wholesalers and retailers from the regional warehouse where that machine is stored and then it is delivered to
the end user who is the consumer of that product.

 Marketing and Sales:

In marketing they do the branding of the front load machines to create awareness regarding the front load. Haier use two
methods for marketing the products i.e. ATL (Above the line) and BTL (Below the line). In ATL they use T.V
commercials, radio and billboards for the marketing process where as in BTL there is a specific potential target audience
e.g. Haier is using BTL as they have launched a laundry of front load washing machines in Punjab University to attract that
audience for their front load machines. This marketing will help Haier to increase the sales of their front load machines as it
will create awareness among the people and attract the customer to buy front load washing machines.

 Services:

Haier also provide after sales services to its customers which includes the warranty of the front load machine. If there is any
fault in the machine the customer can call the helpline of Haier and their maintenance team will visit them and fix the
machine and if the fault is complex, they may call back their machine and provide a repaired or new machine to the
customers. Haier also provides the facility of free installation. If you buy the front load machine from Haier, they will send
an installation team to your house which will install that machine free of cost whereas, the other competitors charge
installation fee from their customers.
 Haier

Scheduling
Process Stage Send Receive Detailed Production Purchase Received Manufacture Ship Finish Receive
Order Order Production in HNR Material Materials Product Delivery
Plan Factory
Person or
Department
Involved

Customer

Sales Office

Pre Production
Planning

Material
Sourcing

Goods Inward

Production

Dispatch Orders

Figure# 7 Order Fulfillment Mapping of Front Load WM

8. Order Fulfillment Mapping of Front Load WM:

As in Haier the forecast the sales of their products on the basis of their OPSI model and then that forecasted sale is shared
with HNR who deals with the production of the Haier products i.e. front load washing machine. Then they hold a detailed
production meeting which is also a pre-production planning in which every aspect of production is considered that what to
do and when to do. Then the whole production plan is shared with the integrated concerned departments and also shared
with the head office using SAP, which is then coordinated with the suppliers of raw material through head office for the
front load washing machine and then in average 71 days out of 109 days, that raw material for the front load machine is
received at the manufacturing plant and then production of front load starts after completing that product according to the
forecasted demand the finished units are delivered to the regional warehouses and then those warehouses dispatch the orders
of the front load machine to the retailers and wholesalers according to their demand for front load washing machines.

21
 Haier
1 DAY
HPK
Sales Generates PO

0.5 DAY 0.5 DAY 0.5 DAY 1 DAY

HNR Finance HNR HNR-LOG Confirm Manufacturing &
Generate SO Order Received HPK PO to HPK-LOG Service Agreement Sign
Against HPK PO Between HNR & HPK

0.5 DAY
0.5 Day Information of 0.5 Day
Resource Available Parts & Checking Stock
checking Required Models Availability

Stock Available

NO Stock

Resource 1 DAY 2 DAYS

Availability Post Production
Listing Needed
Report Send Meeting
Materials/Models

to P Manager

0.5 DAY
Inform HPK Product Order Report Send to
Team and Request NO processing Headquarter Through
Send for Re-Forecast SAP Dispatch

3 DAYS
2 DAYS HPK
HNR Receive
0.5 DAY Washing Machine Confirmation Massage
Production to Stock Production Team
Note Send to HPK Personnel Scan All from HQ to Confirm
Material & Models Required IGP-Scan
Materials/Models List In WMS

2 DAYS 7 DAYS
Supplier Receives Order
Inspection

POD Collection
Materials/Models
Received Delivery
1 DAY Note & POD is
Setting Schedule Entered in SAP
&
Schedule plan Posted
on Assembly lines Board Material
2 DAYS Inception
Material Scanning into
FAIL Report
0.5 DAY System & Inspection
Safety Measurement &
Machine Usage Meeting
PASS

Receipt of
1 Day
Materials/Models 0.5 DAY
0.5 DAY
Quality Control STO-Stock Transfer On-spot Scanning
Order Document & IGP Document
1 DAY
Product Requirement
Document (PRD) 0.5 DAY
OGP= Outward Gate
1 DAY
Pass Document
Inspection
0.5 DAY 1 DAY
Manufacuring Build Production- HNR-LOG
Package (MBP) 0.5 DAY
Personnel Scan All Finished
0.5 DAY Genrated & Enter Stock Lifting Note send
Products & Shift to Their
Product Clearance into HNR/LOG from HNR To HPK
Warehouse
Document Warehouse

22 Figure# 9 Information Flow of Front Load Washing Machine

 Haier

9. Information flow of Front Load Washing Machine:

Haier Pakistan (HPK) sales department generate purchase order based on 30 days forecasting which is shared with the
product team. HPK generate the purchase order in 1 day. HNR received the order from HPK in 0.5 day and HNR finance
department generate sale order in 0.5 day. HNR confirm HPK purchase order in HPK-LOG in 0.5 day. Manufacturing and
service agreement sign between HNR and HPK in 1 day.

After receiving the order from HPK Company deliver the information of available parts and required models in 0.5 day.
HNR check the resources of the required production order in 0.5 day and resource availability report send to product
manager and report is presented in post-production meeting by product manager. HNR checking stock availability in their
warehouse if the stock is available the stock availability report presents in post-production meeting.

If no stock is available in HNR warehouse then HNR list out the needed material/models which is required in production
this task is done in 2 days by HNR. HNR send the needed material report to head quarter through SAP in 0.5 day and HNR
receive confirm message from HQ to confirm required material in 3 days. Now supplier received order of needed material
by the HQ request in 7 days HNR enter all the data related to needed material/models in SAP after receiving the proof order
deliver (POD) from the supplier. Material scanning into system and inspection is done by HNR in 2 days if the material is
pass after inspection then report of material present in post-production meeting. But if the material id failed in inspection
then material inspection report sends to supplier and HQ by HNR. After post production meeting HNR go towards order
processing then washing machines production team scan all the material/models needed in 2 days and inspection is done by
washing machine production team in 2 days. Production to stock note sent to HPK by the HNR in 0.5 days. After inspection
setting schedules plan and posted on assembly line board in 1 day by production team and then set safety measurements and
machine usage meeting is done on 0.5 days by production team. Then after finishing the final product the quality control
department check the quality of the product and inspection of final product is done by quality control department in 1 day
after inspection of the final product quality control department deliver the final product to sample room in 1 day and
generate the product clearance document in 0.5 day. When the production is completed then HNR looks product required
document (PRD) and manufacturing build package generated (MBP) and enter into HNR LOG in 0.5 day. Production-
HNR-LOG scan all finished goods and then deliver finished goods into their warehouse in 1 day. HPK generates the stock
transfer order (STO) document in 0.5 day then HPK generate the inward gate pass (IGP) and enter all the details of finished
goods into warehouse managements system (WMS) on the spot this will take 0.5 day. HNR generates outward gate pass
documents then HNR send stock lifting note to HPK warehouse.

23
 1 Day
Haier
Order Placed (HPK)

14 Days 71 Days 40 Days

Correction of Order Import Material Local Material
Received
Received

10 Days
1 Day
Lifting of Rejection
Quantity Inspection 1 Day
Rejected
Parts Inspection

1 Day
1Day
Rejection Yard Approved
HNR Quality Control
Department

1 Day 1 Day Stacking of Materials

And Parts
Sample Room Material Inspection
Fail

2 Days
Pass
Control Panel Seat
Assembling

Inspection Report

6 Days

General Assembly
3rd SOURCE PARTS
Pack Again & Line
Stacking of Materials,
CKD PARTS
Parts & Complete
LOCAL PARTS
2 Days
2 Days
Rejected
Inspection Repairing Line
3 Days

Manufacturing of
Approved
outer tub

Stacking of Finish
2 Days 4 Days
Units
Outer Tub Manufacturing Line
Assembling
outer cabinet
2 Days

2 Days Finish Units

Packing
Manufacturing Line
of Balance ring

Finish Units
Inventory
4 Days

Manufacturing Line
of Inner tub

1 Day
Figure# 10 Material Flow of Front Load Washing Machine Front Load
Dispatched
24
 Haier
7 Days
Ordering Suppliers Vendor payment
process

1 Day
0.1 Day
Complete Supplies
Full vendor invoice
Purchase Requisition
from stack
Form

1 Day NO 1 Day
Approved Purchase Requisition
Does invoice have
a purchase order

YES number?

0.5 Day
Payment Via
Credit 0.1 Day
Match invoice to the
approved purchase
Mode of Payment order
Mode of Payment
Cash Credit

60 Days
0.5 Day
Yes Release cash
Fill out CCPR Amount Match
Cash

NO

Is it an 3 Day
Invoice Purchase Consult Manager on
Independent
Requisition CCPR discrepancy
Contractor?

YES
NO
Independent 2 Days
1 Day
Contractors Discrepancy Merit
Document to
Agreement Finance for
Fill out Approval investigating

To Controller
Investigation
0.5 Day and Rectify
Obtain P.O from
Controller

Invoice Purchase
Requisition P.O

Figure# 10 Cash Flow of Front Load Washing Machine

25
 S.No. Description Value
1 Material Received NNVA
Haier
2 Material Unload NNVA
3 Packing Inspection NVVA
4 Materials Unpack NVA
5 Materials Quality check NNVA
6 Material Quantity Count NVA

27 7 Moved to Storage NNVA

8 Radiating pulley fixing VA
9 Earth wire fixing VA
10 V-belt fixing VA
11 U-shield fixing VA
12 Inner Tub fixing VA
13 Channel frame fixing VA
14 Filter frame fixing VA
15 Bottom ring fixing VA
16 Balance ring fixing VA
17 Inner plating machine VA
18 Inner covering machine VA
19 Joint of inner sheet VA
20 Rolling inner sheet VA
21 Stacking of finish part NNVA
22 Ultra-sonic welding machine VA
23 Water filling machine VA
24 Gas tight testing machine VA
25 Hot plate welding machine VA
26 Corner plate welding VA
27 Back panel welding VA
28 Cabinet sheet bending VA
29 Crimp bush punching VA
30 Safety bag fixing VA
31 Electrical connection VA
32 Check list NNVA
33 Capacitor connection VA
34 Drain pipe fixing VA
35 Sensor pipe fixing VA
36 CP seat screw fixing VA
37 Back panel fixing VA
38 Buffer cushion fixing VA
39 Locating lever fixing VA
40 CP seat fixing VA
41 Power cord VA
42 Earth wire fixing with clamp VA
43 Outer tub cover VA
44 Pulsator fixing VA
45 Damping spring with greasing VA
46 Tub fixing with greasing VA
47 Capacitor fixing VA
48 Wire clamp fixing VA
49 Buffer cushion VA
50 Cabinet hanger VA
26
51 Drain pipe hanger VA
 Haier
 NNVA = 15 (17%)
Process Activity Mapping of Front Load Washing Machine
 NVA= 8 (9%)
 VA= 66 (74.1%)

28
 Haier

13. Problem Analysis:

 In Haier's study we have discovered that their Upstream and downstream process depends entirely on two different
organizations.
 Upstream depends entirely on HNR and downstream depends on HPK.
 But we note that its upstream process is not up to mark, even HNR has no supply chain department and no expert in
this field that manages and sustains the supply chain.
 Although they collaborate with supplier through the production manager and the general manager who meet after
receiving the demand from HPK and then plan and order raw materials.
 The order takes too much time and they use ships for CKD and CBU parts instead of another mode of transport that
increases the delivery time although HNR achieved the desired result at the target time, but they can improve their
upstream processes.
 On the other hand, HPK focused primarily on logistics rather than the entire supply chain, since they also do not have
an adequate supply chain department. HPK sometimes faced an unexpected demand due to the lack of information
that lead to an incorrect forecast and finally created a bullwhip effect when not adequate market information
delivered / captured.
 HPK do not have end to end supply chain integration they are just concerned with downstream and PO to HNR on the
basis of forecasting.
 Material scanning and handling take days at HNR.

14. Recommendation:

 HNR should introduce supply chain department for added value and eliminating non value added activities.
 Improve in their logistics as we found that sometimes there is no option available for instance truck is not able to
reached at target point due to some circumstances.
 To maximize the warehouse space in order to allocate the space for the higher dumps of the products from the plant.
 To reduce the lorry detention time during the process and implementing effective scheduling process in the loading
and unloading of the products from the plant.
 To reduce the late delivery of products to the dealers and customers.
 To recruit manpower labors in order to reduce the time of loading and unloading of the products and to avoid the
traffic of trucks.
 Need to improve in the logistics facilities in the company and maintain the flexibility within the departments.
 Optimize in production system to ensure their productivity.
 Adopt ICT tools to enhance their business activities.
 HNR and HPK need strong visibility across their supply chain to ensure that they are not constantly reworking plans
and dealing with communication problems between their partners and suppliers.
 HNR need to capture all master and transactional data with one system, capture details from their partners and
operate from single source of information. This will reduce time it normally takes to gather data and search for any
issues that need to resolve.
 Increase visibility into demand of slow-moving items with formulas specifically designed to pick up the patterns of
erratic-moving parts.
 HNR need to focus on cycle time and accuracy in materials handling. They need to be able to count on inventory
within hours, not days.

29
 Haier

 HNR need to ensure that customer demand changes are incorporated into their MRP calculations within hours – not
days.
 Set up an inbound hub in regions where Haier have major facilities, or several smaller factories.

15. Action Plan:

1. Production & Inventory Control Education is often lacking in HNR, but it is the foundation of sustained
improvements. The body of knowledge provided by ASCM (formerly APICS) is very accessible, and is available in
local languages in most countries. HNR need to Get their people trained.

2. Automatic Purchasing

Continually monitoring inventory levels takes up too much time. Newer ERP systems with Supply Chain Management
(SCM) functionality feature automated purchasing. This means that the ERP software can be programmed to
automatically place orders with vendors when inventory levels drop below a certain level. A critical part of any supply
chain strategy is being able to preemptively maintain inventory levels. Automatic purchasing will free up employees to
concentrate on other important duties.

3. Route and Stop Optimization

HPK and HNR need to use transportation management technology to ensure that they are optimized across all modes
of transportation, carrying loads on both their inbound and outbound routes. This will keep everything continuously
moving and tracks everything in transit to keep things proactive.

4. HNR & HPK need to adopt Infoplus Software

Infoplus WMS is a web-based warehouse management software solution to midsize 3PLs, eCommerce Retailers, and
Wholesalers focused on taking control of overall inventory, warehouse operations and shipping. 
Key features include the ability to manage unique workflows for different lines of business under a single software
platform. Define distinct production line processes compatible with any iOS or Android base devices. Light
Manufacturing with 'print on demand' capabilities as well as Kit on Demand functionality to handle bundles and flash
sales.

5. Rose Rocket’s transportation management software (TMS)

Rose Rocket’s transportation management software (TMS) is a platform that helps companies improve
communications with systems, customers and the people who move freight. 
Its open platform makes it easy to connect to the software that runs business. Key features include: industry-leading
customer and partner portals, planning and dispatching modules, track and trace shipment visibility, consolidated
invoicing and billing, real-time reporting and a driver mobile app.

30
 Haier

16. Conclusion:

In this project, we studied Haier Pakistan supply chain management process and analyze the findings. Haier Pakistan is a
private organization. It’s working as branch selling activities to distribute. It implements the rules of Haier Pakistan at
Lahore head office. 2001: HNR Company (Pvt) Ltd (herein after the "HNR") was built by a joint venture of Haier Group
and Ruba group, Haier Group has a share of 55%, while Ruba Group has a share of 45%. In Haier we mainly focused on
Front Load washing machine supply chain process. Haier is a global leader in washing industry, and its Front Load is
becoming the fastest growing product in the industry (selling almost 60k+ units per year), because the Company has created
the washing experience of health, intelligence, comfort and energy conservation through original technologies including
iterating air wash and direct drive motor(patent). Supply chain of Front Load washing machine start from the Sales
forecasting which includes Market demand, Market trend, Customer need and seasonal trend and for that they have local
offices in every region of Pakistan, which analyze these areas and Forward their report to the sales Branch. Sales Branch
coordinate these reports with Sales head Office (HPK) includes Product team, marketing, HR, Finance, Logistics, sales
operations and after sales department. Product team start their plan for Front Load on the basis of 13 months forecasting, for
that they are using OPSI management system(opening, purchase, sales, inventory), which indicate how much units or
inventory they have already in the warehouse which is opening and how much they need more which is purchase. Product
team then adds opening + purchase and minus the sales forecast then the remaining is the inventory which they always keep
for unconditional purposes. On the basis of these forecast and OPSI system they order different models within the front load
and for that they have to order 3 months back, for example if they are ordering for January then the order will be put in
October because HNR (Haier and Ruba) a local manufacturer is further using 4 different sources (Local, CKD, CBU, and
3rd source).
HNR perform their upstream process and manufacturing process. On the other hand, HPK perform downstream process to
deliver the demand to target market through warehouse, distributors and retailers. Haier Pakistan do not have proper supply
chain channel that cause lead time and bullwhip effect during instability of Pakistan (Pakistan political, and economical
causes ) that lead to incorrect forecast and uncertainty of demand for this we recommended to introduce supply chain
experts in both organization and integrate end to end supply chain process by added value and eliminating the non-value
added activities .
 Haier

Vacuuming Barcode Back Shifting Warranty Accessori Internal Front Back Manual book Final Put Put Put the Scannin
Appearanc Safety & Operation Operation Sound Cleaning side
serial panel & Machin sticker & es put side and Warranty Inspectio Product packing top EPS & g&
e leakage check 01 check 02 Testing cleanin
#sticker CP e Screw cap into WM cleanin card put in n Bag on carton angle & Packing
inspection testing g
fixing fixing g WM WM on WM Bottom strip
plate &
Packing
8-Inspection Line 10-Packing Line tape

11-Sample Room
9-Repairing Line
Sampling of Finish goods

Other all general Unusual Water Micro Drain PCB kit

problems sound sensor & switch & motor repairing
troubleshooting & repairing inlet valve Sensor repairing
repairing repairing repairing
welding bending
Corner plates Back panel welding Cabinet sheet

2-Manufacturing Line outer cabinet

7-General Assembly Line

Crimp bush Electrical Check list Drain pipe CP seat Buffer Power Outer tub Damping Capacitor Buffer Base Cabinet Adjustable foot
punching & connecti & & sensor screw & cushion & cord & cover & spring & tub & wire cushion & fitting shifting & & Sticker &
safety bag on capacitor pipe fixing back locating earth wire pulsator fixing with clamp cabinet checking drain pipe &
connectio in tub panel lever & CP fixing with fixing greasing fixing handle & foot rest fixing machine machine machine
fixing n fixing seat fixing clamp drain pipe finish part welding machine testing welding
hanger Stacking of Ultra-sonic Water filling Gas tight Hot plate

4-Manufacturing Line of Balance ring

fixing box fixing sticker fixing

assembling & Fixing & detergent fixing chrome fixing
Inlet valve PCB kit Splash board CP film Top Covers Top Covers

6-Control Panel Seat Assembling 5-Outer Tub Assembling 3-Manufacturing Line of Inner tub

fixing large Tub Reducer Valve body Drain Wash motor, Wash U- Inner
fixing
with box & coil assembling & spring fixing small & Check Cleaning Fixing & over flow motor radiating motor & Shield tub
frame Machine sheet
ng fixing ro switch level sensor control rod seat fixing of CP & & pipe fixing fixing pulley, earth V-belt fixing fixing ring fixing Machine sheet
& filter plating inner
assembli Sensor sensor/mic welding & stop switch and unit packing Greasing wire fixing fixing
balance Covering inner
3D spray Level Door Micro switch By pass board, Wire Remove Channel Bottom & Inner Inner Joint of Rolling

Note:
1-Injection Molding Machine Manufacturing Area
Manufacturing of outer tub

Assembling Area
32 Figure# 11 Technology follow chart of Front Load WM