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Supply Chain Management - Assignment
Supply Chain Management - Assignment
CAPSTONE PROJECT
SUBMISSION BY:
AKSHAY KUMAR PATI B 07
AMAANI DEWAN B 08
ISHITA RAI B 23
NIKITA NEGI B 34
SMRITI DUREHA C 52
ARUN KUMAR B 74
SUBMISSION TO: SOHAM B 60
PROF. NAVIN VERMA SHUBHAM B 55
TANISHA MALHOTRA B 79
MAYURI BADE B 82
ZOOM MOTORS
◦ Owned by Mr.VM Lal
◦ Sells “Arrow” brand motor bikes
◦ Based out of Bangalore
◦ GROWTH :20 Bikes per day in 2010 to 4000 Bikes per day in FY
2018-19
◦ Plant Location: Bangalore. Only assembly, painting and testing of
bikes. Receives assembled Engine from subsidiary
◦ Gets the Bike frame, shock absorbers and hardware from suppliers.
◦ Kanti fabrications :Supplier of bike frames which has a small and
rather unprofessional setup. Long History
◦ Supplier of shock absorber: upcoming and rapidly growing
technology-centric startup, good professional leadership.
◦ Warehouse: Export shipments by sea, import shipments by road
UNIQUE SELLING POINT OF ZOOM
MOTORS
◦ North America
Highly Customized
Excellent Margins.
◦ Europe
Highly Customized
Excellent Margins
◦ Africa
Low Price
Low HP
◦ India
Low end Bikes- High Demand
High end bikes- medium demand
US AND EUROPEAN SALES TEAM
Issue: Unacceptable delivery time of 4 weeks to Europe and US
Causes
Unprofessional setup of M/S Kanti Fabrications
Warehousing
Only one sales and service facility in entire US market
Effects
Improved product quality
Reduced lead time
Smoother operations
Recommendations
Long Term
Short Term
Apply lean thinking Synchronizing ordering, manufacturing and
Value stream mapping shipping
Design a future state map Levelling the demand.
Allowing suppliers to order materials against
your forecast
Get the supplier to create a dedicated line.
Issue: A better service support in terms of spare part availability
Causes
Improper demand forecasting
Small and unprofessional setup of the suppliers
Combined Procurement and Inventory Management
limited supply chain visibility
No advanced analytics support to maintain the balance between cost, service level, and
profitability.
Effects
Difficulty in assessing optimal inventory levels
Trading partner collaboration challenges
Delay in customer service
Recommendations
Demand Forecasting
Critical and high value spare parts to be made available in a nearby warehousing location to reach the site in a fastest and quickest time
Proper coordination and problem solving along with logistics arrangements
Repositioning and paying special attention to balancing cost, service levels, and profitability
Issue: Customers expects a Zero Defect Quality in US and European countries
Cause Analysis
Customers demand for high customizability
Smaller and unprofessional setup of M/S Kanti Fabrications
Shock Absorber company is in start-up mode
Recommendations
Short term
Enhance quality control to detect failures Long term
Initiate Six Sigma techniques for reducing wastage and Improving
Provide extended warranty support for 1yr
Quality
Outsource the bike frame from a better supplier Training of employees for TQM
Increase the Quality standard for the shock absorber Enhanced quality standard for the suppliers
Introduce Kaizen (Continual Improvement) in Quality Control Unit
Issue: Dissatisfaction with the use of wooden pallets amongst European customers
Challenges
With 670 million new pallets entering the supply chain each year, selecting the one that’s right can be a
challenge
Knowing the environment through which the product will travel is essential to making the right pallet
decision.
What kinds of vehicles will be moving the pallet load will play a major role in its selection.
Cause Analysis
Due to the shape and form of a wooden pallet, it's the perfect raw material to make a straightforward and cheap bike rack.
Ease of Assembling.
There are 5 basic interactive parameters that determine pallet suitability for a given application (Strength, Stiffness, Durability, Functionality & Purchase
Price).
These parameters are interactive, and optimizing just one (i.e. minimizing price) will impact the others. The proper balance of these 5 parameters will vary,
depending on your specific product and distribution environments.
Recommendation
Long term Short Term
Metal, particularly aluminum, pallets have been around for a long time.
Use of plastic wallets instead of wooden pallets.
Al or Metal Composite Pallets are used for shipping specialty items. Presswood pallets are particularly attractive for
For Expensive materials transport Metal Based Pallets should be used. shipping overseas but are relatively cheaper than
CM (1).potx
metal composite pallets
AFRICAN SALES LEADER
Issues
Fluctuating Demand
Pre Established European Brands
Need
Recommendation
Recommendation
Long term Short Term
A Cross- functional team
Document the forecast changes each month over a 1-2-year horizon.
Ensure Sales Reps Maintain Accurate CRM Data
Use of predictive analysis instead of descriptive analysis Understanding of marketing funnel
CRM as the system of record for pipeline data KPIs and compensation linked
Use of data science to augment human effort
Issue: Unable to absorb changes in plan within 8 weeks.
Cause Analysis
Lousy delivery schedule of spare parts ( Kanti Fabrications)
Poor CRM adoption and analytics.
Poor asset management ( number of machines)
Inaccurate sales forecast.
Outdated planning software( Legacy Planning.)
Effects
Unable to meet an increase in demand. Losing revenue.
Long delivery time leading to irate customers.
Recommendations
Short Term
Long term Need for Buffer Inventory: For times when the customer
Use of CRM to increase process flexibility. demand pattern changes
Need for Safety Inventory: For times when internal
Integrate Concurrent planning in the company in order to streamline the OP
constraints and inefficiencies derail delivery schedule.
and S process. Use software like NetSuite, Sum tracker to manage
Document the forecast changes each month over a 1-2-year horizon inventory.
Finish to order: Pull strategy should be applied. Have tie ups with both the companies to provide a standard
number of frames and shock absorbers .
Issue: Resolve the reliability issues in shock absorber once and for all
Cause Analysis
Due to the uncontrolled flow of fluid caused by worn out piston seal inside the cylinder, even slight braking and turning can cause the shocks to overreact,
posing a threat of losing control.
Nose diving leads to additional weight being shifted to the front of the car which keeps the
vehicle in motion.
The seals can become brittle or torn, shock bent from an impact, wear out of smaller
parts inside the shock
Faulty dampers
Effects
Significant wear to the wheel suspension, wheel bearings and springs
Longer stopping distance, earlier aquaplaning
Increased risk of skidding in corners or avoidance maneuvers
Lack of road grip on rough roads and cambers
Cause Analysis
Unprofessional
Contract does not include a penalty clause
Lack of supervision/monitoring
Environmental, Technical, Manpower issues
Effects
Increase reputation and broaden relationships
Cost-effective
Smooth Connectivity between business processes
Minimizes waste and operates at high levels of productivity
OTD Graph
Recommendation
On-time delivery performance Improve quality of frames
Improvement in Communication Matrix of Company Quality standards to be given to supplier