DE.Heels Pvt LTD.

A W.A.R.S Enterprise

Table of Contents
1. Executive Summary ................................................................................................. 4 1.1. Objectives ......................................................................................................... 4 1.2. Mission ............................................................................................................. 4 1.3. Keys to Success ................................................................................................ 4 2. Company Summary ................................................................................................. 5 2.1. Company Ownership ........................................................................................ 5 2.2. Start-up Summary ...................................................................................... ....5-6 2.3. Company Locations and Facilities..................................................................... 7 3. Products................................................................................................................... 7 3.1. Product Description .......................................................................................... 7 3.2. Competitive Comparison .................................................................................. 8 3.3. Sales Literature ................................................................................................. 8 3.4. Sourcing ........................................................................................................... 8 3.5. Technology ....................................................................................................... 9 3.6. Production Capacity.............................................................................................9 3.7. Inventory Management.................................................................................10-12 3.8. Production Planning...........................................................................................12 3.9. Production Management...............................................................................12-13 4.0. Production System.............................................................................................14 4.1. Manufacturing Process.................................................................................15-17 4.2. Production Planning And Control................................................................17-24 4.3. Quality Management..........................................................................................24 4.4. Project Management.....................................................................................25-29 4.5. Supply Chain Management..........................................................................29-34 4.6. Product Selection...............................................................................................35 4.7. Product Design And Overview....................................................................35-36

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1. Executive Summary

1.1.

Objectives
1. 2. 3. 4. 5. 6.

25% market share within 2 years of launch. Creation of brand value Increment of production capacity To develop a solid e-commerce market and to maximize our profit margin. We make full retail profit through e-commerce. To expand to other cities. To revolutionise foot wear industry

1.2.

Mission

The main mission of the company is to achieve 25 % share of foot wear industry and provide consumers with a unique and new concept of dettaching heels which will help the end users to customize their footwears according to their prefrences.

1.3.

Keys to Success

1. 2. 3. 4. 5. 6. 7. 8.

New concept High Level of customization High no. of options available All in one footwear Better after sales services Good production Capacity Low cost of production Better channel of distribution

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2. Company Summary

De. Heels is a company which produces footwear with an all new concept of dettachable heels which users can customize according to their prefrences and needs. The heels will be made with the use of high technological equipments with better efficiency and high quality material.

2.1.

Company Ownership

De.Heels is a limited liabilty corporation (LLC). It has a paid up capital of Rs 1 crore. The ownership of the company is as follows:1. 2. 3. 4. 5. 6.

Abhishek Tripathi as C.E.O ( 21%) Akash Warang as C.F.O (21%) Ria Chopra as C.M.O (21%) Sachi Pandya as Vice President- Sales (20%) Radhika Lahoti as Vice President- HR (15%) Shubham Agarwal as General Manager- North Division (2%)

2.2.

Start-up Summary

The startup expenses have been classified in the table above. The money will be utilised for the following purposes :1. 2. 3. 4. 5. 6.

Purchase of inventory Purchase of machinery Purchase of computers Wages paid to labours Setting up of office Selling and distribution expenses

These are some of the expenditures that will occur during the start-up phase of the company.
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Start-up Requirements Start-up Expenses Legal Administration Insurance Inventory Computer Machinery Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements

$400 $10,000 $5,000 $40,000 $8,000 $4,000 $67,400

$10,000 $40,000 $12,600 $10,000 $72,600 $140,000

Start-up

$140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Expenses Assets Investment Loans

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2.3. Company Locations and Facilities

De.Heels is located in a single facility in the Vashi industrial district in Navi Mumbai. The facility includes office and production lines, access to the local bus route, and good parking. The production line includes 4 machines each for sole making, assembly,heel making, packing. y As our main outlets are only in Mumbai and Delhi we would situate our factory somewhere in Mumbai to avoid transportation costs. y Not located very far from Mumbai as it does not require a lot of place and we will produce only on receiving orders therefore in order to avoid transportation cost the factory would be put up in New Bombay. New Bombay is one of the most fast developing places in Mumbai and the price of land there is relatively cheaper and is situated in the middle of Maharashtra there it would be the ideal location for setting up a big factory.

3. Products

De.Heels provides the customers with an all new exclusive product called dettachable heels which can be customized according to the taste and prefrences of the consumer. Consumer can use various types and sizes of heels with a single sole.

3.1.

Product Description

The product is called dettachable heels. Below are the features of the product:y y y y y y y

Dettachable heels Single sole Various colour options Various types of heels Various sizes of heels Various designs Various Accessories
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3.2.

Competitive Comparison

1. 2. 3. 4. 5. 6.

New innovative product Low price Various option Multi purpose High Customization faciltiy Better channel of distribution

3.3.

Sales Literature

We are developing a company brochure which will include our products. We are targeting our market by focusing on Internet sales. A large portion of our advertising budget will be used for Internet advertising such as banners and site-promoting services. We also plan on selling our products at retail outlets. Our Catlogue will include full description of our product line and features along with prices and customization available.

3.4.

Sourcing

There are various types of raw material which will be used in production of the final product. The raw materials mainly include :1. 2. 3. 4.

Rubber :- Purchased from Kerala Leather :- Purchased from dharavi Suede :- Purchased from distributors Threads and buttons etc :- Purchased in wholesale from various manufacturers

Note:- All the material noted above are purchase in bulk quantity so as to reduce the overall cost.

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3.5. Technology

High efficiency machines with high output capacity and better quality production will be used so as to minimise time, cost and maximise output. The website will be developed and managed by the present staff with required technology for I.T department. The best technology is used in making our shoes and hence the latest machines are required for the production of

Tunnel System

Anti Slip Sole

y For the production of these two soles and systems normal and old machinery cannot be used.

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y Therefore we are required to import the best technology and machines from Russia. Which increases our costs to a great level but also provides us with benefits such as: y y y y y y Faster production More output Less wastages Reduction is labour cost. Economies of Scale Decrease in maintenance cost.

3.6

Production Capacity

15000 Pairs/month 45000 Heels/month One pairs takes total 30 minutes of worker and machine time 10,000-machine hour per month available Inventory present could produce : 6000 pairs Pairs produced in first week 3000 Cost of production A pair :Rs. 450 A heel: Rs 50 Cost of inventory of A pair :Rs 300 A heel :Rs 35

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3.7. Inventory Management

Successful inventory management involves balancing the costs of inventory with the benefits of inventory. There are many costs of carrying inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of money tied up in inventory. This fine line between keeping too much inventory and not enough is not the manager's only concern. Others include: -Maintaining a wide assortment of stock -- but not spreading the rapidly moving ones too thin; -Increasing inventory turnover -- but not sacrificing the service level; -Keeping stock low -- but not sacrificing service or performance. -Obtaining lower prices by making volume purchases -- but not ending up with slow-moving inventory; and -Having an adequate inventory on hand -- but not getting caught with obsolete items.

There are four types of inventoried1) Production Inventories: Raw materials, parts and components, which enter the firms product in the production process. 2) MRO Inventories: Maintenance, repair and operating supplies which are consumed in the production process, but will not be a part of the product 3) In-process inventoried: Semi- finished goods found at various stages in production operations 4) Finished goods inventories: Inventories ready for shipment.

Costs related to inventory 1. Ordering Costs A. Cost of placing order from vendor B. Cost of ordering from plant 2. Carrying costs A. Costs connected directly with material B. Financial costs
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C. Capital Costs D. Storage Space costs E. Inventory Service costs F. Handling Equipment costa G. Inventory risk costs 3. Out-of-stock costs A. Back ordering B. Lost Sales 4. Capacity Costs A. Overtime costs when capacity is too small B. Lay off and idle time when capacity is too large In order to avoid all these costs, efficient management of the inventory is necessary. In order to manage our inventory we would like to use the Fixed Order Period System or P System In this system, a fixed quantity is ordered whenever the stock reaches a reorder point. It is estimated that the size of the inventory in stock is enough to produce 6,000 pairs, and our current weekly production is 3000 pairs. So an order will be placed for raw materials every 7 days. It is estimated that it would take 3 to 4 days for the delivery of raw materials from suppliers. This decision is related to the Production Inventory. MRO inventory must be ordered twice a week as the regular maintenance and check up happens with the same frequency. Oiling etc. takes place almost regularly so proper care must be taken regarding those inventories. In Process inventories are very minimal as the process is designed in such a way that every product gets assembled and is ready to be packed as per the requirement. So at the end of the day there may be around 20 to 50 units of in process inventory as the daily production will be approx. 500 pairs. Finished goods inventories will be 500 pairs a day but will be dispatched as per order. As this is a very novel product, it is expected to have a finished product inventory of maximum 50 pairs at the end of the week as only 3000 pairs are getting manufactured and there is an expected higher demand of such type of product in the market.

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We will be taking the steps stated above for managing our inventory. But more efficient techniques of managing inventory are the MRP and the just-in-time techniques. But these need a very detailed knowledge and high experience about the whole production and supply chain, which comes through experience. We are a new startup so we plan to start with inventory management and then adopt MRP and just-in-time techniques.

3.8. Production Planning

Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can bemeasured as the difference between the value of inputs and value of outputs.Production function encompasses the activities of procurement, allocation andutilization of resources. The main objective of production function is to producethe goods and services demanded by the customers in the most efficient andeconomical way. Therefore efficient management of the production function is ofutmost importance in order to achieve this objective.
3.9. Production Management

Production system is a system whose function is to convert a set of inputs into a set of desired outputs. Production system is depicted under with help of chart below:-

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INPUTS These inputs consists of mainly Land, Building, machines, labour, capital management,material. In short , it consists of all the factors of production needed.With all these inputs in hand we could easily produce the desired amount of output. For our production of de heels, we have taken into consideration various factors of input and the sources from where we woud get the inputs of best quality and low costs. We have set up a production unit at Vashi, Navi Mumbai. The place is chosen as we got various incentives owing to it being an industrial estate. It is near Mumbai which also reduces the transport costs . It is well connected by roads, rail . So this would make easy transport of raw materials as well as those of finished goods. Machines needed for production have been purchased and set up and now the production unit is in running condition. For our product, along with the machines, labour would be also a requirement as we offer a higher level of customization and some parts of the manufacturing process do need labour support. Some highly skilled labours will be required for making the sandals from the product designs given to them. Other labours required will be semi-skilled. Our company is a Limited Liability Company with all the capital contributed by its owners. The distribution of capital among the various processes and how the capital will be used has been specified.

CONVERSION PROCESS This is the process of conversion of the raw materials into the finished goods. This process includes various sub-processes and the raw materials go through many procedures.

OUTPUT This process gives us the final output of finished goods.

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4.0. Production System

We have chosen the following type of production system. This would be helpful for differentiating our product from the rest of the market. And this would be our highlighting point that is providing a higher level of customization to the customers. Job or Unit production: It involves production as per customer's specification each batch or order consists of a small lot of identical products and is different from other batches. The system requires comparatively smaller investment in machines and equipment. It is flexible and can be adapted to changes in product design and order size without much inconvenience. This system is most suitable where heterogeneous products are produced against specific orders. This is useful in giving a higher level of variety to the consumers. It requires less capital, And as we being a startup, it is very necessary for the optimum utilization of resources. Changes can be made in this system with the changes in trends, taste and demand of consumers. Initially we intend to do test marketing of our product, we intend to launch it in various retail outlets in Mumbai and the product will be also available online. The initial launch will be of around 6000 pairs. With the feedback from consumers and the consumer demand appropriate changes will be made and additional batches of the product would be launched in the market.

4.1.

Manufacturing Process

The nature of the process of production required by these three different types of production system are distinct and require different conditions for their working. Selection of manufacturing process is also a strategic decision as changes in the same are costly. Therefore the manufacturing process is selected at the stage of planning a business venture. It should meet the basic two objectives i.e. to meet the specification of the final product and to be cost effective.

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TYPES OF MANUFACTURING PROCESSES (i) Jobbing Production: - Herein one or few units of the products are produced as per the requirement and specification of the customer. Production is to meet the delivery schedule and costs are fixed prior to the contract. (ii) Batch Production: - In this, limited quantities of each of the different types ofproducts are manufactured on same set of machines. Different products are produced separately one after the other. (iii) Mass or flow production: Under this, the production run is conducted on a set of machines arranged according to the sequence of operations. A huge quantity of same product is manufactured at a time and is stocked for sale. Different product will require different manufacturing lines. Since one line can produce only one type of product, this process is also called as line flow. (iv) Process Production: Under this, the production run is conducted for an indefinite period. At our company, as per our requirements we highly prefer the first two types of production that is jobbing and batch production. The jobbing production is done as per the specifications and the requirements of the customers, this would help us serve the customers in a better way and meet their demands to a very high extent. The batch production will help us launch various batches of products. That is different sets of different variety of soles, different forms of soles as well as different forms of heels. This would help to fulfill our aim,

y FACTORS AFFECTING THE CHOICE OF MANUFACTURING PROCESS Following factors need to be considered before making a choice of manufacturing process. a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process. When the volume is low and variety is high, intermittent process is most suitable and with increase in volume and reduction in variety continuous process become suitable. The following figure indicates the choice of process as a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of goods by variety.
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b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and line process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is true for batch process thus at low volume it would be cheaper to install and maintain a batch process and line process becomes economical at higher volumes. c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process. Therefore lead-time and level of competition certainly influence the choice of production process. d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt contemplated changes and volume of production should be large enough to lower costs.Hence it is very important for entrepreneur to consider all above mentioned factors before taking a decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually adopt batch processes due to low investment. The processes chosen by us for production would require less capital investment as in terms of heavy machinery as we do not initially plan to go to total automation. As total automation is expensive a well as it would be less flexible and will not lead to a higher level of customization , as it is the main aim of our firm.

4.2.

Production Planning And Control ( PPC )

y BENEFITS (1) Optimum Utilisation of Capacity: With the help of Production Planning and Control [PPC] the entrepreneur can schedule his tasks and production runs and thereby ensure that his productivecapacity does not remain idle and there is no undue queuing up of tasks via properallocation of tasks to the production facilities. No order goes unattended and nomachine remains idle.

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(2) Inventory control: Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce the overall inventory. It will enable him to ensure that the rightsupplies are available at the right time. (3) Economy in production time: PPC will help the entrepreneur to reduce the cycle time and increase the turnover via proper scheduling. (4) Ensure quality: A good PPC will provide for adherence to the quality standards so that quality of output is ensured.To sum up we may say that PPC is of immense value to the entrepreneur incapacity utilization and inventory control. More importantly it improves hisresponse time and quality. As such effective PPC contributes to time, quality andcost parameters of entrepreneurial success.

STEPS OF PRODUCTION PLANNING

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y Production planning: Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time.

y Routing: Under this, the operations, their path and sequence are established. Toperform these operations the proper class of machines and personnel required arealso worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. Insmall enterprises, this job is usually done by entrepreneur himself in a ratheradhoc manner. Routing procedure involves following different activities (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article (7) Organization of production control forms. 1) Thus for our production purposes we need to buy leather, rubber, suede and various types of buttons, buckles etc. as per product design and as per the batch of the product. We plan to give the consumers a variety of options with regard to the design, colour and form of our product so some raw materials may change but the major raw materials would be leather, rubber , suede. For stitching and other purposes various sizes and types of needles are required. Also threads of various colours, thickness, and types are required. 2) The quality of material has to be the best. As we are a startup company we have to pay extra caution at regulating quality of the products. We plan to tie up with suppliers so that the quality is ensured and a strong relationship with the suppliers always leads to a profitable business.
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3)Sequence of manufacturing operations There are two types of manufacturing operations in which we have segregated the whole process intoi) Production of the sole , straps and the body of the product ii) Production of the heels These are the two processes. According to the requirements, inputs would be given and the respective outputs will be received. Special job productions as per required by the consumer can be also made available on requests but these carry higher costs.

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SEQUENCE

4) Initially, though we have an inventory to produce approximately 14,000 pairs, we plan to launch 3,000 pairs in the first week in Mumbai and places nearby as an effort for market testing. In about two weeks after the launch , and the performance of the product, with the feedback received, the needful changes will be made and the production will be expanded to full scale. We can produce about 15,000 pairs in a month at full capacity. And about 45,000 heels. 5) Scrap generated would be bits of leather, thread rubber buttons needles etc. these iteams can be sold of in scrap 6) The production cost of a shoe base would go uptoRs. 450 a pair. As we are buying all materials in bulk , we are getting good deals. Production price of heels would be around Rs. 50 a piece 7)Production will be altered, and controlled as per tastes, demands of the consumers

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y Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed,making allowances for all factors concerned. It mainly concerns with timeelement and priorities of a job. The pattern of scheduling differs from one job to another, which is explained as below: y Production schedule: The main aim is to schedule that amount of work, which can easily be handled by plant and equipment without interference. Its notindependent decision as it takes into account following factors. (1) Physical plant facilities of the type required processing the material being scheduled. (2) Personnel who possess the desired skills and experience to operate theequipment and perform the type of work involved. (3) Necessary materials and purchased parts.

The Plant has a capacity to produce 15,000 pairs a month in full capacity with the personnel available and also the necessary inventory. We have efficient inventory management techniques and also suppliers who supply in minimum waiting time. Machines are kept maintained to avoid accidental break downs thus reducing production capacity. y Master Schedule: Scheduling usually starts with preparation of master schedulewhich is weekly or monthly break-down of the production requirement for eachproduct for a definite time period, by having this as a running record of totalproduction requirements the entrepreneur is in better position to shift theproduction from one product to another as per the changed production requirements. This forms a base for all subsequent scheduling acclivities. Amaster schedule is followed by operator schedule, which fixes total time requiredto do a piece of work with a given machine or which shows the time required todo each detailed operation of a given job with a given machine or process. Weekly master schedule is prepared as we are a startup and we have to be more cautious about the market conditions. It is calculated that to make one pair of shoes with the machines and also the labor timings involved it takes 0.5 hours on an
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average. There are 10000 machine hours available y Manufacturing schedule: It is prepared on the basis of type of manufacturingprocess involved. It is very useful where single or few products are manufacturedrepeatedly at regular intervals. Thus it would show the required quality of eachproduct and sequence in which the same to be operated y Loading: The next step is the execution of the schedule plan as per the routechalked out it includes the assignment of the work to the operators at theirmachines or work places. So loading determines who will do the work as routingdetermines where and scheduling determines when it shall be done. Gantt Chartsare most commonly used in small industries in order to determine the existingload and also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare what has been done and what ought tohave been done. y Production control: Production control is the process of planning production inadvance of operations, establishing the extract route of each individual item partor assembly, setting, starting and finishing for each important item, assembly orthe finishing production and releasing the necessary orders as well as initiating thenecessary follow-up to have the smooth function of the enterprise. The productioncontrol is of complicated nature in small industries. The production planning andcontrol department can function at its best in small scale unit only when the workmanager, the purchase manager, the personnel manager and the financialcontroller assist in planning production activities. The production controllerdirectly reports to the works manager but in small scale unit, all the threefunctions namely material control, planning and control are often performed bythe entrepreneur himself production control starts with dispatching and ends upwith corrective actions. y Dispatching: Dispatching involves issue of production orders for starting theoperations. Necessary authority and conformation is given for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation. 5. Movement of work from one operation to another in accordance with theroute sheet. 6. Inspecting or supervision of work Dispatching is an important step as it translates production plans into production. We have given special attention towards dispatching. Proper inventory of fixtures,
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raw materials and all the tools necessary for production purpose are kept ready and taken care of. We are producing 3,000 pairs a week initially. This production is dispatched to the retail outlets in Mumbai and nearby and as per the demand, the dispatch is made. Time and cost involved are both optimized and high productivity is taken care of.

y Follow up: Every production program involves determination of the progressof work, removing bottlenecks in the flow of work and ensuring that theproductive operations are taking place in accordance with the plans. It spotsdelays or deviations from the production plans. It helps to reveal detects in routingand scheduling, misunderstanding of orders and instruction, under loading oroverloading of work etc. All problems or deviations are investigated and remedial measures are undertaken to ensure the completion of work by the planned date. The efficiency of our firm is also kept into consideration. Various improvements will be made as per the requirement of time and all the production will be monitored.

y Inspection: This is mainly to ensure the quality of goods. It can be required aseffective agency of production control. Only the goods that meet the quality requirements will be dispatched. Workers will be encouraged to work with higher efficiency and increments will be given on account of better production.

y Corrective measures: Corrective action may involve any of those activities ofadjusting the route, rescheduling of work changing the workloads, repairs andmaintenance of machinery or equipment, control over inventories of the cause ofdeviation is the poor performance of the employees. Certain personnel decisionslike training, transfer, demotion etc. may have to be taken. Alternate methods maybe suggested to handle peak loads.

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4.3. Quality Management

Quality management is one of the most important factors in a business if the quality of the products is not managed effectively it can result in a lot of losses not just of money but also of goodwill and customers.Hence quality management would be undertaken with great care y A team would be set up in order check the quality of all our products and to see that all the material provided by all the suppliers are of good quality. y Quality management will be undertaken by improving all the input materials and using best quality products and also by using the latest technology available in the market. y Strong emphasis on R&D leads to continuous improvement in products. y Each consignment will be checked before being dispatched in order to check quality and avoid deteriorations of the product. y Efficient use of production facilities lowers cost

4.4. Project Management

Project management is the science (and art) of organizing the components of a project, whether the project is development of a new product, the launch of a new service, a marketing campaign, or a wedding. A project isn't something that's part of normal business operations. It's typically created once, it's temporary, and it's specific. As one expert notes, "It has a beginning and an end." A project consumes resources (whether people, cash, materials, or time), and it has funding limits. Project Management Basics No matter what the type of project, project management typically follows the same pattern: 1. 2. 3. 4. 5. Definition Planning Execution Control Closure
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Defining the Project In this stage the project manager defines what the project is and what the users hope to achieve by undertaking the project. This phase also includes a list of project deliverables, the outcome of a specific set of activities. The project manager works with the business sponsor or manager who wants to have the project implemented and other stakeholders -- those who have a vested interest in the outcome of the project. Planning the Project Define all project activities. In this stage, the project manager lists all activities or tasks, how the tasks are related, how long each task will take, and how each tasks is tied to a specific deadline. This phase also allows the project manager to define relationships between tasks, so that, for example, if one task is x number of days late, the project tasks related to it will also reflect a comparable delay. Likewise, the project manager can set milestones, dates by which important aspects of the project need to be met. Define requirements for completing the project. In this stage, the project manager identifies how many people (often referred to as "resources") and how much expense ("cost") is involved in the project, as well as any other requirements that are necessary for completing the project. The project manager will also need to manage assumptions and risks related to the project. The project manager will also want to identify project constraints. Constraints typically relate to schedule, resources, budget, and scope. A change in one constraint will typically affect the other constraints Executing the Project Build the project team. In this phase, the project manager knows how many resources and how much budget he or she has to work with for the project. The project manager then assigns those resources and allocates budget to various tasks in the project. Now the work of the project begins. Controlling the Project The project manager is in charge of updating the project plans to reflect actual time elapsed for each task. By keeping up with the details of progress, the project manager is able to understand how well the project is progressing overall. A product such as Microsoft Project facilitates the administrative aspects of project management.

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Closure of the Project In this stage, the project manager and business owner pull together the project team and those who have an interest in the outcome of the project (stakeholders) to analyze the final outcome of the project. Time, Money, Scope Frequently, people refer to project management as having three components: time, money, and scope. Reducing or increasing any one of the three will probably have an impact on the other two. If a company reduces the amount of time it can spend on a project, that will affect the scope (what can be included in the project) as well as the cost (since additional people or resources may be required to meet the abbreviated schedule). Project Portfolio Management Recent trends in project management include project portfolio management (PPM). PPM is a move by organizations to get control over numerous projects by evaluating how well each project aligns with strategic goals and quantifying its value. An organization will typically be working on multiple projects, each resulting in potentially differing amounts of return or value. The company or agency may decide to eliminate those projects with a lower return in order to dedicate greater resources to the remaining projects or in order to preserve the projects with the highest return or value. How will we manage our project will be explained with the help of an example:As we got a order of 20,000 detachable heels. We managed it by using CPM(critical path method) technique and we took care of certain things which are as follows:

y Activity A:- Raw Materials: Acquiring raw materials from suppliers is the basic step for starting the production process. Placing the order with the suppliers and the raw material getting supplied to us will take us approximately 3 days. y Activity B:- Machine+ Labour
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After we have the raw materials required for production process we need labour and machine in order use those raw materials for production of the product. All this will require approximately 2 days to put the raw material into action. y Activity 3 :- Production of soles/ heels/ straps Once the machinery and labour is there with us, we will start with the production the production process. In which the step will be the production of soles, heels, straps. All this will require atleast 5 days. This will require maximum time. y Activity 4:- Assembly of soles, heels, straps This process will again require both machine and labour. Assembling will require approximately 4 days. As assembling will be according to the customers needs as our product includes customization. y Activity 5:- Packaging Packaging of finished products is an important aspect. As right packaging will keep the product safe. Also packaging attracts customers. Packaging process will take 3 days. y Activity 6:- Delivery of goods After packaging the final steps is delivery of finished product and make it available to the consumer. Make it available to the consumers through wholesalers and retailers. For the product to reach customers will take around 3 days. Project management by CPM will benefit us : Goal clarity and measurement Resources will be coordinated Risks will be identified and managed Increase the possibilities of time savings Increase the possibilities of cost savings Increase the possibilities of achieving the agreed outcome Increase the possibilities to deliver projects successfully

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Project management with CPM will helps us achieve Plan tasks in project Avoid dependencies problems Reduce risks Track progress accurately Organize project process and timeline Complete within budget and on time
4.5. Supply Chain Management

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THE SUPPLY-CHAIN OPERATIONS REFERENCE-MODEL (SCOR)

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." Importance of supply chain management Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. In Peter Drucker's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. During the past decades, globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mintzberg, 1979).

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Problems addressed by supply chain management Supply chain management must address the following problems:


 

Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc. Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional.

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The Supply Chain

PLAN:For our production of de heels, we have taken into consideration various factors of input and the sources from where we woud get the inputs of best quality and low costs. We have set up a production unit at Vashi, Navi Mumbai. The place is chosen as we got various incentives owing to it being an industrial estate. It is near Mumbai which also reduces the transport costs . It is well connected by roads, rail . So this would make easy transport of raw materials as well as those of finished goods. SOURCE:Since we are into manufacturing of our product we will need raw materials, transportation cost etc. Our decision for suppliers will not only be based on whether the supplier is providing the raw materials at cheap cost but also based on the relations with the suppliers, does he deliver the raw materials at time, as time plays a very important role because if we delay the production, there are competitors available in the market who can be a threat to our company. MAKE:Making of the product includes the manufacturing cost which will basically includes the cost of raw materials, laborers, machines or technology required. DELIVER:Once the product is manufactured it needs to be delivered so that it reaches the consumers. In our supply chain we have wholesalers and retailers. We will give our products to wholesalers who will again distribute it to retailers who in turn will reach to consumers. We will provide our wholesalers and retailers with better incentives so that they promote our products and advertise them more so that more and more people come to know about out product. Hence they play a very important role in the supply chain. BUY:Buying finally includes customers purchasing the products. For customers to purchase more and more products we need to make them aware about our product which will include promotion of our product which will be done through advertisements, hoardings, tie ups with multiplexes, endorsing a brand ambassador.

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Technique used for supply chain management:Total quality management Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement.

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Taming the Bullwhip:Four critical methods for reducing the Bullwhip effect: Reduce uncertainty in the supply chain Centralize demand information Keep each stage of the supply chain provided with up-to-date customer demand information More frequent planning (continuous real-time planning the goal) Reduce variability in the supply chain Every-day-low-price strategies for stable demand patterns Reduce lead times Use cross-docking to reduce order lead times Use EDI techniques to reduce information lead times Eliminate the bullwhip through strategic partnerships Vendor-managed inventory (VMI) Collaborative planning, forecasting and replenishment (CPFR) Importance of SCM Each facility further away from actual customer demand must make forecasts of demand Lacking actual customer buying data, each facility bases its forecasts on downstream orders, which are more variable than actual demand To accommodate variability, inventory levels are overstocked thus increasing inventory carrying costs

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4.6. Product Selection

Our product is Detachable Heels. The reason for choosing this product is as followsy Such a product does not exist in todays market: This is a differentiated and new product. It is a unique never done before product. Thus this product has the potential to grow instantaneously in the market as large scope and practically no competition. y Easy to manufacture: The material used in this product is not very expensive and is easily available and hence making this product is not difficult. y Less Capital: This product does not require a huge factory and expensive equipment ad the parts of this product are not expensive thus for a new company a lot of capital is not required. y Comfort and Usability: The main aim of selecting this product was to design a product to ensure maximum comfort to the user and also provide the customer value for money service.

4.7. Product Design And Overview

The Concept Development: The concept was developed keeping in mind the extra comfort and usability of the product. The product fits into the middle and towards the upper range of shoe market . Product Life: Like other shoes it is not a frequent buy product because the shoe comes with a sturdy base and the heels can change color according to the occasion.However the heel is a frequent buy product

Price: The sole is available at Rs 800 Each heel costs Rs 100 for a plain color & Rs 200 for any sort of customization.

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Product Features: Main Features: y Heels and straps can be detached according to need comfort and convenience. y The sole of the shoe is sold separately. Size: y Standard shoe sizes- 4,5,6,7,8,9,10. Material: y Faux Leather, plastic, Suede and cloth. y Elastic gel for sole. y Solid acrylic heels- many other materials available on demand. y flexible spring steel shank that sits between the sole and the insole of the high heel with the intended purpose of varying the heel height. y A complex set of locking and aligning pins that fasten the heel as well as operate the flexible spring steel shank and an undercut in the insole of the shoe where the spring steel shank is nested and anchored at one end. y Additionally, the design claims a fastened spring steel shank which renders it unable to slide or be removed from the heel to convert into a flexible flat shoe

Other features: y Heels and straps are sold separately. y Styles- Wedges, Stilletos, Pumps, Boots, Clogs etc. y Ultra light weight material. y It can be altered for best fit. y Heel can be customized according to the need of the customer . y Not only the heel but also other things like the color of the strap can be changed they can be made from tie ups to normal shoes or even the length of the boot can be adjusted hence helping you use one pair of shoes for all occasions .

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