Oscm cca-1

MBA BATCH 2023-24

OSCM GC10103 CCA -1

Group: D 1.3
Subject– Operation and Supply Chain Management Report on Visit to Aluminum
Aluform processing unit.

Group Members -

Amit Shisode.

Avinash Deshmukh.

Ayush Aher.

Bhumika Patil.

Deep Thete.

Dhanshree Munde.

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Introduction:
Our group D1.3 visited small unit named as Prem Enterprises where they processed
Aluminium Aluform panels. This unit has small capacity to process 200 units per day.

This report explores the various aspects of aluminum aluform panels making within
the scope of operation and supply chain, shedding light on the key processes
involved, the machines used, quality control, supply chain considerations. We will
delve into the following areas to provide a comprehensive understanding of the
topic:

1: The Significance of Aluminum aluform panels :

 Discuss the importance of aluminum aluform panels in modern

construction processes.

 Highlight their advantages over alternative materials such as steel.

2: Manufacturing Processes:

 Detail the steps involved in the processing of aluminum aluform

panels.

 Explore the technologies and methods used for shaping and finishing
units.

3: Materials and Design:

 Describe the types of aluminum alloys commonly used in aluform

making.

 Explain the importance of design in achieving product quality and

consistency.

4: Quality Control:

 Discuss the critical role of quality control in aluminum aluform panels

making.

 Outline the testing and inspection procedures to ensure precision and

durability.

5: Supply Chain Considerations:

 Analyze the supply chain management practices in the aluminum

aluform making industry.

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6: Industry Impact:

 Evaluate how efficient aluminum aluform making influences the

broader construction sector.

By delving into these aspects, this report aims to provide valuable insights for
professionals in the field of operation and supply chain, aluform making, and
manufacturing. It will demonstrate the integral role of aluminum aluform panels in
ensuring the smooth operation of production lines, and how optimizing their
creation can lead to enhanced product quality, cost-efficiency, and overall
competitiveness in the market.

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Conduction of business :
In the field of Operations and Supply Chain Management (OSCM), the conduction of
business activities related to aluform panels making typically involves a series of
processes and best practices to ensure efficient and effective production. Aluform
panel making is crucial for construction industry. Here are key activities involved in
the OSCM of panel making:

1. Demand Forecasting:

 Accurately predict the demand for aluform panels by understanding

market trends, customer orders, and historical data. Here they process
aluform panels as per order given to them.

2. Inventory Management:

 Maintain an optimal level of raw materials i.e Aluminium Blocks,

components, and finished panels to meet company order while
minimizing excess inventory.

 They are implementing just-in-time (JIT) inventory practices to reduce

carrying costs and waste.

3. Supplier Management:

 Various companies are the suppliers to them. prem manufacturer only

process aluminum aluform panels in different sizes and shapes as per
companies demand.

4. Production Planning and Scheduling:

 Develop a production plan that takes into account the demand

forecast, lead times for materials, and production capacity.

 Create a production schedule to allocate resources efficiently and

meet customer delivery deadlines.

5. Quality Control:

 Implement quality control processes to ensure that panels meet the

required specifications and standards.

 Regularly inspect and test panels at different stages of production to

identify and address defects.

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6. Technology and Equipment:

 Invest in modern technology and equipment to enhance the efficiency

and precision of panels making.

 They have compact machines for processing as the workplace is small

in size. They have to keep check on their maintenance so that
manufacturing should not stop.

7. Process Improvement:

 Continuously evaluate and optimize the panels making process to

reduce waste, increase efficiency, and improve product quality.

8. Regulatory Compliance:

 Stay informed about relevant industry regulations and standards,

especially those related to safety, materials, and environmental
concerns. And they also have to follow their company rules and
regulations up to certain level.

9. Cost Management:

 Monitor production costs and identify opportunities to reduce

expenses without compromising quality.

10. Supply Chain Risk Management:

 Identify potential risks in the supply chain, such as supplier disruptions, and
develop contingency plans to mitigate these risks.

 They have to focus on diversifying their supplier base to reduce dependency

on a single source.

12. Sustainability and Environmental Considerations:

 Implement eco-friendly practices in your mould-making processes to

minimize waste and energy consumption.

By effectively managing these activities, a company involved in mould making can

streamline its operations, meet customer demands, control costs, and maintain a
competitive edge in the industry. It's essential to adapt to changing market
conditions and continuously improve processes to stay competitive and meet the
evolving needs of customers.

Inventory Management:
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Inventory management is crucial in the context of aluminium panels making to

ensure the efficient use of resources, minimize costs, and meet customer demands.
Here are some key considerations for managing inventory in aluminium panel
processing:

1. Categorize panels : Classify your aluminium panels based on their size, type,
and usage. This categorization helps you organize and track your inventory
more effectively.

2. Safety Stock: Keep a safety stock of critical panels to prevent production

disruptions in case of unexpected surges in demand or lead time delays from
suppliers.

3. Supplier Relationships: Maintain good relationships with your panels

suppliers. This can help ensure timely deliveries and preferential treatment
when you need additional panels .

4. FIFO (First-In, First-Out): Implement a FIFO inventory rotation system to

ensure that older panels are used before newer ones. This helps prevent
mould deterioration due to prolonged storage.

5. Regular Inspections: Periodically inspect your mould inventory to check for

wear and damage. Replace or repair damaged panels to maintain product
quality.

6. Space Optimization: Organize your storage space efficiently, utilizing racks,

shelves, and a well-structured layout to maximize storage capacity.

7. Training: Ensure that your team is trained in proper inventory management

procedures, including handling, storage, and record-keeping.

8. Dispose of Obsolete panels : Regularly review your inventory and dispose of

panels that are no longer in use, damaged beyond repair, or have become
obsolete due to design changes.

Effective inventory management in aluminium panels making can lead to cost

savings, improved customer satisfaction, and a more efficient production process. It's
essential to strike the right balance between having enough panels to meet demand
while avoiding excess inventory that can tie up resources.

Purchase management:

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Purchase management is a crucial aspect of aluminum aluform panels, including

aluminum panel making, as it involves sourcing the necessary raw materials,
equipment, and supplies while optimizing costs and ensuring a reliable supply chain.
Here are key considerations for effective purchase management in the context of
aluminum making:

1. Vendor Selection and Evaluation:

 Identify and establish relationships with reliable and reputable aluminum

suppliers, both primary and secondary.

 Evaluate potential vendors based on factors such as quality, pricing, lead times,
and reliability.

 Regularly assess and review vendor performance to ensure they meet quality
and delivery standards.

 So In our visit they have the fix vendors who are reliable, have a good quality
material.

Strategic Sourcing:

 Develop a sourcing strategy that considers cost, quality,and lead times to

optimize procurement processes.

 Consider dual sourcing or alternative suppliers to minimize supply chain risks.

 Leverage long-term contracts or agreements for stable pricing and supply.

Regularly review and improve purchase management processes to increase

efficiency, reduce costs, and enhance the supply chain.

Effective purchase management is essential for ensuring a reliable supply of high-

quality aluminum materials and optimizing costs in aluminum making, which includes
aluminum aluform panel production. By implementing these strategies and best
practices, you can enhance the efficiency and competitiveness of your aluminum
processing operations.

Bottle neck:

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Bottleneck Operation is a process or a step that limits an entire system’s capacity to

produce at its optimum level that results in clogging production, profitability, and
growth. This is also called “throughput.”
Just like the slim neck of a wine bottle that restricts the flow of contents from the
bottle at any point in time, an operational bottleneck.
So in the context of this factory floor, an operational bottleneck in manufacturing is a
work stage that requires more work requests than it can actually process at its
maximum throughput capacity. This results in an interruption to the steady flow of
production and delays the overall production process.
Bottlenecks go further deeper in impairing operational efficiencies as even if this
work stage operates at its maximum capacity planning, it still can’t process all of the
work items fast enough to push them to the next stages without causing a delay.
1: Labour scarcity due to which delayed process:
The factory processing capacity is 200 aluminium aluform units but sometimes due
to scarcity of labour maximum output can’t be obtained which results in delayed
delivery.
2:shortage of storage space:

Capacity management:

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Capacity management in the panel sector is crucial to ensure optimal production

efficiency and meet customer demands. Prem enterprises is small unit so their
operating capacity is also low .Here are some key considerations:

Demand Forecasting: Accurate forecasting of customer demand is essential. They

actually not forecast demand since they work on pull method.

Resource Planning: Allocate resources such as machinery, materials, and labor to

ensure that you have the necessary equipment and skilled staff to meet production
needs.

Inventory Management: Maintain an optimal level of raw materials and components

to prevent shortages or excess inventory. Implement just-in-time (JIT) principles to
reduce carrying costs.

Production Scheduling: They develop a production schedule that balances workloads

and minimizes downtime.

Maintenance and Downtime: Regularly maintain and service equipment to prevent

unexpected downtime. Since it is small unit there is 2 machinery only so
maintenance of them needed to ensure continuous production.

Lean Manufacturing: Adopt lean principles to eliminate waste and improve process
efficiency. This can help maximize capacity without increasing costs.

Continuous Improvement: Regularly assess and improve capacity management

strategies based on performance data .

Effective capacity management in the mould sector can lead to increased production,
reduced costs, and improved customer satisfaction.

Process flow chart:

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Types of processes:

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Following process is carried out Prem Manufacturing mould making unit.

1.SOP of fabrication of framework:

Creating a Standard Operating Procedure (SOP) for the fabrication of framework in

mould making is essential for ensuring consistency, quality, and safety in your
operations. Framework is a temporary structure used to shape and support concrete
or other materials when creating panels for various applications.

2. Inspection of Raw material:

The inspection of raw materials i.e Aluminium cubes in mould making is a critical step
to ensure the quality, precision, and durability of the final mold. Proper inspection
helps identify any potential issues with the materials early in the process, which can
prevent costly defects and delays in production.

3.Cutting:

Raw materials as Aluminium Blocks are shaped and cut to the desired dimensions to
create the components of a mould. Accurate and precise cutting is essential to create
the core and cavity components of the mould, which determine the shape and
features of the final product.

4.Punching:

Punching involves making holes, slots, or other features in the mould components for
various purposes. Select the appropriate punch and die tooling for the specific hole
or feature to be created.

5.Stiffner marking:

Stiffener marking and installation are essential for reinforcing aluminum , because
these panel are used in high pressure activity. Proper installation of stiffeners helps
maintain the panel shape and structural integrity, which, in turn, prolongs the mold's
lifespan and ensures consistent product quality.

6.Milling Marking:

Milling marking in aluminum mould making is a process of creating specific markings,

identifiers, or features on aluminum mould components using milling machines.
These markings serve various purposes, such as alignment, identification, or
reference points.

7.Milling:

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Milling marking in aluminum mould making refers to the process of creating

markings or features on an aluminum mould using milling equipment. The milling
process involves the removal of material from an aluminum workpiece to create
precise shapes, cavities, and features required for the mould.

8.Welding:

This typically involves melting the aluminum material at the joint and fusing it
together. Weld along the desired seam or area, following the specific welding
procedure and parameters for the chosen method. They use organic gas here.

9.Grinding and Finishing:

Perform the grinding process, where Aluminium is removed from the surface using
the selected abrasive tool. This is typically done to smooth out rough areas, remove
excess material, and achieve the desired surface quality. Ensure that the grinding is
even and consistent.

10.Final Quality Inspection:

Use precision measuring tools, such as calipers, micrometers, gauges, and CMM
(Coordinate Measuring Machine), to check the dimensions of the mold components.
Ensure they meet the specified tolerances and design requirements. Verify the panel
functionality by conducting tests or simulations that mimic the manufacturing
process in which the mould will be used.

Just In Time:

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Just-in-time (JIT) manufacturing refers to a production strategy where components

are created or acquired just in time for assembly or production to minimize inventory
and associated costs. In the context of aluminium mould making, JIT would involve
fabricating or obtaining the necessary aluminium components precisely when
needed in the manufacturing process, reducing excess inventory and streamlining
the overall production flow. This approach aims to optimize efficiency, reduce waste,
and improve cost-effectiveness in the manufacturing process of aluminium moulds.

Supplier Relationships: Develop strong relationships with suppliers to ensure timely

delivery of materials and components.

Small Batch Production: Instead of producing large batches of moulds, focus on

small, frequent batches to meet demand more precisely .

Continuous Improvement: Encourage employees to identify and address

inefficiencies and make incremental improvements because their most of the work is
labour oriented.

Just-in-Time Delivery: Coordinate with customers to deliver aluforms exactly when

they are needed, reducing storage and transportation costs.

Quick Changeovers: Streamline the setup and changeover process for aluform. This
reduces downtime and allows for faster response to changing customer
requirements.

Order qualifier and winner:

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order winners and order qualifiers are important concepts that help identify the
factors that distinguish a company's products or services and help it win orders from
customers. These terms are often used in the context of operations strategy.

Order Qualifiers:

These are the minimum requirements that a manufacturing company must meet to
even be considered by a customer. Minimum 200-400 are the basic expectations that
customers have, and failing to meet them can result in the company being
disqualified from the customer's consideration. Order qualifiers often include factors
such as product quality, price competitiveness, on-time delivery, and basic product
features that are considered standard in the industry.

Order Winners:

Order winners are the factors or characteristics of a manufacturing company's

products or services that give it a competitive edge and make it more likely to win
orders. These are the things that set a company apart from its competitors. Order
winners can vary depending on the industry and customer preferences, but they
often include factors like innovation, superior quality, quick response to customer
needs, customization, and unique features that provide a clear advantage.

Aluminium Frame Manufacturing Company:

Order Qualifiers: Reliability, adherence to industry standards, competitive pricing,

and efficient delivery. These are the major point for these industry to deliver order
on time with outstanding quality.

Order Winners: Customization options, specialized features, responsive technical

support, and energy efficiency.

These terms are used by this company to take order comparatively more

Current priorities:

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The current priorities for Prem enterprise which is a manufacturing company for
aluminum planks used for construction framing are as follows :

1.Ensuring consistent quality control measures to maintain the high standards of the
aluminum planks produced.

2.Streamlining production processes to maximize efficiency and minimize downtime,

thereby meeting the high demand for the product.

Managing the supply chain effectively to ensure a steady flow of raw materials and
minimize any potential disruptions to production.

3.Implementing effective inventory management techniques to avoid stockouts and

maintain sufficient stock levels to fulfill customer orders.

4Enhancing worker safety measures to prevent accidents and ensure a healthy

working environment, especially during high-production periods.

Future plans :
1.Scaling up production capacity further to meet increasing market demand and
capitalize on the potential for growth.

2.Investing in advanced technology and machinery to enhance production efficiency,

reduce operational costs, and maintain quality standards as production scales up.

3.Strengthening the supply chain management system to accommodate the

increased volume of raw materials and ensure a steady flow of inputs for production.

4.Establishing effective quality assurance protocols to maintain the high standards of

the aluminum planks while ramping up production.

5.Optimizing the use of the additional rented land to streamline production

processes and accommodate the increased production volume efficiently.

Sales and Operations Planning (S&OP):

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It is a critical process for manufacturing companies, including those involved in

aluminum frame manufacturing. S&OP aims to align the company's sales and
production strategies to ensure that customer demand is met efficiently and
profitably. Here is a high-level overview of the steps involved in creating an S&OP for
an aluminum frame manufacturing company:

Demand Forecasting:

Begin by forecasting the demand for aluminum frames. This involves analyzing
historical sales data, market trends, customer orders, and any other relevant data to
predict future demand.

Sales Planning:

Work with the sales and marketing teams to set sales targets and goals. Understand
their strategies for market expansion, product launches, and customer acquisition.

Production Planning:

Assess the company's manufacturing capacity, including available resources,

equipment, and labor. Determine the production plan based on the demand forecast
and the production capacity.

Inventory Management:

Review existing inventory levels and decide on the optimal inventory levels to meet
customer demand while minimizing carrying costs.

Supply Chain Coordination:

Collaborate with suppliers to ensure a steady supply of raw materials, such as

aluminum extrusions, and other components needed for frame manufacturing.

Resource Planning:

Allocate resources efficiently, taking into account labor availability, machine capacity,
and production schedules. Adjust workforce levels or overtime as necessary.

Financial Planning:

Develop a budget that includes production costs, operating expenses, and expected
revenue. Ensure the financial plan aligns with the sales and production plans.

Technology and Tools:

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Consider using software and technology solutions for demand forecasting,

production planning, and inventory management to enhance the efficiency of the
S&OP process.

Continuous Improvement:

Periodically review the S&OP process to identify areas for improvement. Make
necessary adjustments to optimize the company's operations.

Execution and Monitoring:

Implement the S&OP plan and continuously monitor performance against the plan,
making adjustments as needed to stay aligned with changing market conditions.

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