Upload
amul2804
View
222
Download
0
Embed Size (px)
Citation preview
8/8/2019 Operational Mgt Final
1/29
Submitted in the Partial Fulfillment of the Degree of Masters of Business Administration
SUBMITTED BY: - SUBMITTED TO:-
AMULDEEP MR. HARENDRA SINGH
Regd. No 10903108
ROLL NUMBER RS1901A08
8/8/2019 Operational Mgt Final
2/29
HOMEWORK TITLE / NO. :Manufacturing practices of SME Sports Goods Manufacturers inJalandhar
Course Code: MGT519
Course Instructor: MR.HARENDRA SINGH Course Tutor (if applicable): ___Date of Allotment: _____________________Date of submission : 10/05/10
Students Roll NoA(08) Section No. : RS1901
Declaration:I declare that this assignment is my individual work. I have not copied from any
other students work or from any other source except where due acknowledgment
is made explicitly in the text, nor has any part been written for me by another
person.
Students Signature.
AMUL DEEP
Evaluators comments:
_____________________________________________________________________
Marks obtained: ___________ out of ______________________
Content of Homework should start from this page only:
8/8/2019 Operational Mgt Final
3/29
ACKNOWLEDGEMENT
I take this opportunity to present my votes of thanks to all those guidepost who really acted
as lightening pillars to enlighten our way throughout this project that has led to successful
and satisfactory completion of this study.
We are really grateful to our COD MR.DEVDHAR SHETTY for providing us with an
opportunity to undertake this project in this university and providing us with all the facilities.
We are highly thankful to MR. HARENDRA SINGH for his active support, valuable time
and advice, whole-hearted guidance, sincere cooperation and pains-taking involvement
during the study and in completing the assignment of preparing the said project within the
time stipulated.
Lastly, We are thankful to all those, particularly the various friends , who have been
instrumental in creating proper, healthy and conductive environment and including new and
fresh innovative ideas for us during the project, their help, it would have been extremely
difficult for us to prepare the project in a time bound framework.
AMULDEEP SINGH
Regd.No 10903108
Roll no. RS1901A08
8/8/2019 Operational Mgt Final
4/29
Contents
Introducton
Establishments in Jalandhar
Small and medium enterprises (SME)
Major SME in Jalandhar
Same for sports goods in Jalandhar
Objectives of SME for sports industry in Jalandhar
Limitations of SME for sports industry in Jalandhar
Swot analysis of SME for sports industry in Jalandhar
Steps foe setting up a SME unit for sport good industry
Major sports goods manufactured by SME units in Jalandhar
Target market for SME (sport goods, Jalandhar)
Raw material
Price range
Competitive landscape
Operational plan
Inventory control
Manufacturing
Plant layout
8/8/2019 Operational Mgt Final
5/29
Process layout
Facility layout
Supply chain management
Various SME for sporting goods in Jalandhar
Conclusion
References
INTRODUCTON
Introduction about Jalandhar
It is the oldest city in Punjab situated at a distance of about 84 kms southeast of Amritsar on the
G.T road going to Calcutta. Jalandhar is India's foremost producer of sports goods. Its steel and
iron re-rolling mills, rubber goods, electric goods, automobile parts, and sewing machine
factories and handloom products are also very famous. Today, it is a major rail and road junction
and an army cantonment. This city has twelve kots and twelve gates. It is one of the biggest
centers of the vernacular press in India, most of the vernacular papers, magazines in Hindi,
Punjabi and Urdu are published here.Jalandhar is famous for export of quality sports goods all
over the world. It is a town of great antiquity which has become a highly industrialized center of
commercial activity.
Jalandhar is the 'sports city of India' as it has not only finest sport industry but also a large
number of sportsmen. In fact, 12 of India's greatest hockey players have come from a single
village, Sansarpur, in Jalandhar city. The railway line from Beas to Jalandhar was opened in
1869 and was completed upto Phillour by the next year. The Doab was linked to the rest of the
Punjab by the railway bridges, constructed over the Beas in 1869 and over the Sutlej in 1870.
Industry in Jalandhar
8/8/2019 Operational Mgt Final
6/29
A Jalandhar rank second in India in the rate of urbanization and has the highest density of
population at 598 persons per square km, as per the 1991 census. The reason for this is growing
industrialization. Industrial production of sports goods began on a small scale during the late
forties. Over the years, the sports goods industry has grown at an impressive rate and of late
Indian sports goods are also exported to different countries.
Most of India's sports goods are exported to the United Kingdom, The United States of America,
Germany, France and Australia. Rough estimates suggest that today Jalandhar has more than one
hundred major industries and about 20,000 small-scale industries with a most conservative
estimate of an annual turnover of approximately Rs 450 crores the industry is mainly
concentrated in Jalandhar and Meerut. The Indian sports goods industry manufactures 318 items.
The Indian sports goods industry is a highly labour intensive industry which provides
employment to the weaker sections of society and also employs a large number of women. The
sports goods industry in India has witnessed a phenomenal growth over the past five decades and
now occupies a place of prominence in the Indian economy in view of its massive potential for
employment, growth and export. The main industries in Jalandhar are-
Sports Good Industry
Jalandhar has the nucleus of sports goods industry in Punjab and has about 90% of the total
sports goods units of the State. The product manufactured relates to all traditional products like
foot-ball, cricket bats, hockey and cricket balls, hockey sticks, tennis badminton and squash
rackets, balls, soft leather goods, shuttle cocks etc. This industry being labour intensive despite
inadequate capital and technology, has reached a stage where it is reckoned as a major cottage
industry providing direct employment to about 10000 workers.
Hand Tools Industry
Jalandhar is known for the manufacturing of Hand Tools like Spanner set, screw driver, nose
pliers etc. 50 units are engaged in the manufacturing of hand tools giving employment to 8000
people.
Auto Parts Industry
8/8/2019 Operational Mgt Final
7/29
Jalandhar is known for the manufacturing of good quality of auto parts. There are 300 units
engaged in the manufacturing of auto parts providing employment to 4500 people. Several units
are supplying auto parts to the original manufacturers of automobiles. There is export of Rs.
213.53 lacs of auto parts from Jalandhar during the year 1991-92.
Rubber Goods Industry
Jalandhar is known for the manufacturing of rubber goods items like V-shape chappals,V-
Belts,Scooter/Cycle tyres and rubber rolls. There are 625 units giving employment to 6500
persons. There is export of Rs.682.62 lacs from Jalandhar.
Surgical Instruments
Surgical Instruments units are labour intensive units. There are 275 units in Jalandhar providing
employment to 2500 persons.
Tanning Industry
Jalandhar is known for manufacture of shoes and a number of allied units. Bawa Skins is an
important export house of Jalandhar. At present, there are a large number of tanning units
providing employment to a major section of the scheduled caste and other weaker sections.
Main Products of the District
1) Sports goods.
2) Finished leather and leather goods.
3) Hand tools.
4) Rubber goods.
5) Pipe fittings and Valve & cocks.
6) Sanitary fittings.
8/8/2019 Operational Mgt Final
8/29
7) Auto parts.
8) Surgical goods.
9) Books publishing.
10) Electrical goods.
11) Agriculture implements.
12) Ball bearings.
13) Garden tools.
14) Toffee & tablets making machines.
15) Building hardware.
16) Lathe & Drill chucks.
17) Food products.
Establishments in Jalandhar
In Jalandhar, three kinds of establishments are usually found:
Big establishments : These are generally geared to exports besides catering to the
domestic market.
Small establishments : These usually manufacture sports goods for the domestic market.
Both the big establishments as well as the small establishments are registered either under
the Factories Act, 1948, or under the Shops and Establishment Act of the state of Punjab.
The unregistered units : These are found particularly in the urban pockets of Jalandhar.
These units are mostly small home-based units which are usually run by the family
members, but at times with the help of a couple of hired employees. These units do not
have a direct access to market. It has been seen that many a times when the big
8/8/2019 Operational Mgt Final
9/29
establishments - especially exporters - are not able to cope with large orders from their
foreign clients, distribute a share of the production to these small unregistered, home-
based units.
Small and Medium Enterprises (SME)
In the Indian context, the small and medium enterprises (SME) sector is broadly a term used for
small scale industrial (SSI) units and medium-scale industrial units. Any industrial unit with a
total investment in its fixed assets or leased assets or hire-purchase asset of upto Rs 10 million,
can be considered as an SSI unit and any investment of upto Rs 100 million can be termed as a
medium unit. An SSI unit should neither be a subsidiary of any other industrial unit nor be
owned or controlled by any other industrial unit.
Description of SME in the manufacturing sector:
For the Manufacturing Sector, the MSMED Act 2006 defines micro, small and medium
enterprises (MSMEs) as mentioned below:
A micro enterprise is an enterprise where investment in plant and machinery does not
exceed Rs 25 lakh.
The investment in plant and machinery in a small enterprise is more than Rs 25 lakh, but
does not exceed Rs 5 crore.
A medium enterprise is one where the investment in plant and machinery is more than Rs
5 crore, but does not exceed Rs 10 crore.
8/8/2019 Operational Mgt Final
10/29
In all these, the cost excludes that of land, building and the items specified by the Ministry of
Small Scale Industries with its notification No SO 1722 (E) dated October 5, 2006.
Major SME in Jalandhar
Food Processing
Agricultural Inputs
Chemicals & Pharmaceuticals
Engineering,Electricals, Electronics
Electromedical equipment
Textiles and Garments
Leather and leather goods
Bioengineering
Sports goods
Plastics products
Computer Software, etc.
SME for Sports Goods in Jalandhar
There are approximately 1,000 small and medium sports goods manufacturers based in
Jalandhar. The largest sports gear manufacturing hub in the country. The industry provided direct
employment to more than 1.5 lakh people. The sports industry in the country is estimated at Rs
8/8/2019 Operational Mgt Final
11/29
5,000 crore. The contribution of Jalandhar to the industry is 60%. SME units based in Jalandhar
made up to 25,000 to 30,000 footballs a day in 2008.
SME sports goods manufacturing units in Jalandhar are witnessing brisk business over the last
few months. Spurt in demand ahead of the FIFA World Cup has prompted small-scale sports and
football equipment manufacturers to increase their supplies in order to meet the burgeoning
demand. With FIFA World Cup round the corner, we are witnessing a steep increase in demand
for football and soccer
goods, which in turn, is helping the Jalandhar football equipment industry to witness rise in its
sales and margins," said R Kumar, proprietor of Union Sports International, a small-sized
manufacturer of sports ball in Jalandhar.
SME sports equipment manufacturers are also undertaking training programmes to manufacture
machine-stitched football, thereby shifting their focus from the hand-stitched ones. Promotional
campaigns undertaken by retail houses are also helping to perk-up sale of soccer goods.
Demand for Jalandhar-made sports goods has gone up significantly over the last few months and
is likely to increase further, with the peak business period beginning from March and likely to
continue till May-end this year for global market, while it will last up to September in India.
Objectives of SME for Sports Industry in Jalandhar
High contribution to domestic production
Significant export earnings
8/8/2019 Operational Mgt Final
12/29
Low investment requirements
Operational flexibility
Location wise mobility
Low intensive imports
Competitiveness in domestic and export markets
Limitations of SME for sports Industry in Jalandhar
Low Capital base
Concentration of functions in one / two persons
Inadequate exposure to international environment
Inadequate contribution towards R & D
Lack of professionalism
SWOT Analysis of SME for Sports Industry in Jalandhar
Strengths
Contribution to National Economic Growth.
Generating Employment and Vitalizing Indian brand to the world.
Regional Development.
Technological Innovation.
Export Market Expansion.
8/8/2019 Operational Mgt Final
13/29
Weakness
Lack of Funds Lack of Marketing Skill Lack of Information.
Poor adaptability to changing trade trends.
Nonavailability of technically trained human resources.
Lack of management skills.
Opportunity
Enhanced credit support.
Support for technological upgradation.
Growing domestic and international markets.
Threats
Distrust between SMEs and Financial Institutions.
Nontariff barriers from developed countries.
Steps foe setting up a SME Unit For sport good Industry
Obtain information on possible product lines
Identify suitable lines of activity
Obtain information on marketing, technical & financial aspects of these lines of
activity
8/8/2019 Operational Mgt Final
14/29
Select the product
Prepare a project profile/report
Obtain a Provisional Registration Certificate and get permission from the concerned
authorities if necessary
Apply for the necessary infrastructure for plots/sheds, NOC from Pollution Control
Board, Power & Water connection etc.
Apply and obtain finance from financial institutions Simultaneously
arrange machinery
construct shed if required
obtain NOC from the pollution control board
arrange for electrical power connection
arrange for water & sewerage connection
recruit staff required
arrange for raw material
arrange for marketing
Commissioning of the plant & trial run
Commercial Production
Major sports goods manufactured by SME Units in
Jalandhar
Boxing
8/8/2019 Operational Mgt Final
15/29
Leather Boxing Gloves
Leather Punching Gloves
Inflatable Boxing Gloves
Kick Boxing Gloves
Straight Leather Punching...
Punching bags
Punching balls
Cricket
Cricket Bats
Cricket Batting Gloves
Cricket Batting Grips
Wicket Keeping Gloves
Wicket Keeping Pads
Cricket stumps(wickets)
Cricket balls
Batting pads
Helmets
Inflatable Balls
Football
Basketball
8/8/2019 Operational Mgt Final
16/29
Volleyball
Handball
Tennis Tennis ball
Tennis table
Tennis net
Badminton
Badminton racket
Shuttle cock for indoor $ outdoor games
Badminton net
Hockey
Hockey stick
Hockey ball
Pad
Helmet
8/8/2019 Operational Mgt Final
17/29
Target market for SME (sport goods, Jalandhar)It may be difficult to believe, but most of Indias exports of sports goods come from SMEs. And
the targeted countries are UK, USA, Germany, France, and Australia. And the SME clusters are
mainly based in Jalandhar.
Some of the prominent items manufactured by these industries include: hockey and cricket
equipments, fishing gear, boxing kits, protective equipment and also indoor games.
Raw material
Raw materials include wood, steel, aluminum, plastics and resins, fiberglass etc. products are
generally shipped directly to retailers and sporting goods distributors. Third party warehouses
and logistics providers are often used to bring products to market.
Details of Raw Materials required & Machinery required for Sports Goods Industry:
S. No Raw Materials Source International Source Domestic Industry
Consumption
1. PVC for Footballs China, Korea -- 50,000 * 15 MTS
2. PU/PVC for Footballs
Taiwan Indian Mills 75,000 * 15&= nbsp;Mtrs.
3. PU for Foot Balls Taiwan Indian Mills 50-75,000 * 15 MTS4. Cotton & Polyester
Linings for ballsChina Indian suppliers 2,00,000 to3,00,000 *
15 MTS
5. Stitching ThreadPolyester for balls
China Indian suppliers 12,50,000 * 15 Mtrs
6. PU Material forLeg guards
China, Korea Indian suppliers 20,000 * 15 Mtrs
8/8/2019 Operational Mgt Final
18/29
7. PU Materials forGloves
China, Korea Indian suppliers 15,000 * 15 Mtrs
8. Tetron Cloth for alltype Bags
Taiwan, Korea & China -- 1,50,000 Mtrs to 2lakhs Mtrs.
9. Cork Wood Portugal, -- 100 Mt.Tonne
10. Willow Clefts U.K. -- 2 lakhs to 2.5 lakhsPcs.
11. Cane Singapore & Andaman-Nicobar 15,00,000 Pcs * 4
12. Printing Inks England -- Quantity for printing 1million Balls
13. Feather for shuttleCocks
Poland, China,Denmark, Hong Kong
-- 4-6 Containers
14. Rubber Thailand, Indonesia,Malaysia
---
Price range
A company dealing with manufacturing of sport goods needs to asses the nature of their
prevailing market in order to come up with competitive price. So in this sector if the company is
relatively new then they use introductory pricing strategies where the price of product is lowered
at the beginning of production but as the company establishes itself in the market than they
decide to raise their prices.
Competitive Landscape
The primary demand drivers for sporting goods are consumer income and demographic trends.
The profitability of individual companies is determined by efficient manufacturing and effective
marketing. Large companies enjoy advantages in economies of scale and brand recognition, and
often offer a wide range of products, but SME companies compete effectively by offering
specialized or unique products that interest enthusiasts.
Operational Plan
Production
8/8/2019 Operational Mgt Final
19/29
A wide variety of manufacturing processes are used to produce varios types of sporting goods
including metal, plastic and woodworking operations and tooling; assembly; packaging;supply
chain coordination and shipping. Although much sporting goods manufacture is labor intensive,
some processes are automated.
Automation
At a time when maintaining full capacity production and bearing high costs have become
difficult for most businesses in Punjab, investment in automating processes by small firms in the
state still continue to be steady. Despite facing severe hurdles on various fronts, small-scale units
in the Punjab's industrial sector are investing substantially in automation.
Cost
Cost related to production on their side would be of stamping the goods with their label and
name. This would be the only cost which they would be bearing on the production side
Quality control
Quality control is an ongoing process, which starts right from the initial stages and right up to
finishing. They provide quality charts or quality specification for quality control.
There are many kind of raw material which used to produce a good, so it depend upon theircustomer that what kind of quality they want.
INVENTORY CONTROL:-
They try to use economic order quantity and just in time policies to manage their inventory.
Location
They operate their functions with main office in Jalandhar.
Infrastructure
8/8/2019 Operational Mgt Final
20/29
Their buildings are small storied and divided into various parts for storing raw materials and one
room for labeling. 24 hrs power supply. They follow just in time policy so they use a shed to
store raw material.
MANUFACTURING
Their core focus area of related to manufacturing are-
Benchmarking against global standards so as to efficiently manufacture quality products.
Building a strong and motivated work force by emphasizing safety, education and
continuous improvement of the manufacturing capabilities and those of the vendors
Plant layout
The main objectives of plant layout is to optimizing the process of production process within the
plant. Such an optimizing results in-
Productivity of activities
reduction of cost regarding to
money
time
labour
Land
smooth flow of
materials
labor force
PROCESS LAYOUT
8/8/2019 Operational Mgt Final
21/29
Process layouts are found primarily in job shops, or firms that produce customized, low-volume
products that may require different processing requirements and sequences of operations. Process
layouts are facility configurations in which operations of a similar nature or function are grouped
together. As such, they occasionally are referred to as functional layouts. Their purpose is to
process goods or provide services that involve a variety of processing requirements.
Advantages of process layouts
Flexibility. The firm has the ability to handle a variety of processing requirements.
Cost. Sometimes, the general-purpose equipment utilized may be less costly to purchase
and less costly and easier to maintain than specialized equipment.
Motivation. Employees in this type of layout will probably be able to perform a variety of
tasks on multiple machines, as opposed to the boredom of performing a repetitive task on
an assembly line. A process layout also allows the employer to use some type of
individual incentive system.
Facility layout
Facility layout and design is an important component of a business's overall operations, both in
terms of maximizing the effectiveness of production processes and meeting employee needs
and/or desires.
Facility layout is "the physical arrangement of everything needed for the product or service,
including machines, personnel, raw materials, and finished goods. The criteria for a good layout
necessarily relate to people (personnel and customers), materials (raw, finished, and in process),
machines, and their interactions.
Advantage of facility layout
Ease of future expansion or change
8/8/2019 Operational Mgt Final
22/29
In Sporting goods manufacturing, Facilities should be designed in such a manner so that
they can be easily expanded or adjusted to meet changing production needs. So facility
layout is very important
Materials handling
In sports goods manufacturing facility layout makes it possible to handle materials
(products, equipment, containers, etc.) In an orderly, efficient and preferably simple
manner.
Space utilization
This aspect of facility design includes everything from making sure that traffic lanes are
wide enough to making certain that inventory storage warehouses or rooms utilize as
much vertical space as possible.
Ease of communication and support
In sports industry communication within various areas of the business and interactions
with vendors and customers can be done in an easy and effective manner with the help of
facility layout.
So different SME for sport industry in Jalandhar uses different layouts according to their needs.
Supply chain management
The supply chain management system of SME for sports industry is very effective in Jalandhar.
Their supply chain management system electronically link suppliers and customers with
manufacturing and assembly facilities. Technology is also used to implement just in time
strategies that reduce inventory needs while shortening product delivery times.
Various SME for sporting goods in Jalandhar-
8/8/2019 Operational Mgt Final
23/29
1) Bhaseen Sports Pvt. Ltd.
34 Basti Nau Jalandhar
Punjab, India
2) Goodwin Sports, Jalandhar
15-16, Dilbagh Nagar Extension, Jalandhar
Punjab , India
3) Cameo Sports
B-27, Sports & Surgical Complex, Kapurthala Road,
Jalandhar
Punjab, India
4) Sports Syndicate, Jalandhar
Basti Road,
Jalandhar - 144 001, India
8/8/2019 Operational Mgt Final
24/29
5) Onkar Exports
Old Hoshiarpur Road, Near HP Petrol Pump,
Jalandhar - 144 004, India
6) Behari Lal And Company
Nalhan Road, Basti Danishmandan,
Jalandhar - 144 002, India
7) Gomti Agrico
Near Jalandhar Model School, Tanda Road,
Jalandhar - 144 004, India
8) Hans Raj Mahajan and Sons
G.T. Road, Suranussi,
Jalandhar - 144 027, India
9) Chopra Synthetic Rubber Udyog
8/8/2019 Operational Mgt Final
25/29
Plot No. 3, Laxmi Nagar Complex, Opp. Central Leather Research Institute, Leather
Complex Road,,
Jalandhar - 144 003, India
10) A N Mistry & Sons
Industrial Town,
Jalandhar-144004
11) Anand Sports Inds
Jalandhar City,
Jalandhar-144001
12) Azad Sports Work
Basti Nau,
Jalandhar-144002
Conclusion
8/8/2019 Operational Mgt Final
26/29
Jalandhar has the nucleus of sports goods industry in Punjab and has about 90% of the
total sports goods units of the State. This industry being labour intensive despite
inadequate capital and technology, has reached a stage where it is reckoned as a major
cottage industry providing direct employment to about 10000 workers.
SME sports goods manufacturing units in Jalandhar are witnessing brisk business over
the last few months. These units are playing an important role in development of the city.
Their supply chain management system, manufacturing process, layouts, quality control
every thing is very effective. So this industry is growing very rapidly.
8/8/2019 Operational Mgt Final
27/29
References
http://www.financialexpress.com/news/demand-slowdown-puts-jalandhar-sports-goods-
industry-on-sticky-wicket/547113/
http://www.indiamart.com/goodwinsports/
http://jalandhar.nic.in/html/sports_goods_industry.htm
http://jalandhar.nic.in/html/industries.htm
http://www.whereincity.com/india/punjab/jalandhar.php
http://www.khoranasportsinds.com/frames.htm
http://www.articlesbase.com/business-articles/boost-to-jalandhar-sme-sports-goods-
manufacturers-2104395.html
8/8/2019 Operational Mgt Final
28/29
http://www.hoovers.com/sporting-goods-manufacturing/--ID__361--/free-ind-fr-profile-
basic.xhtml
http://www.ideamarketers.com/?articleid=827116
http://dir.indiamart.com/indianexporters/sports.html
http://www.tradeindia.com/Seller/Sports-Entertainment/Sport-Products/Sports-Goods/
http://search.justdial.com/srch/search_cwa.php?srch=ture&city=Jalandhar
http://www.ghallabhansali.com/admin/file/SME%20Sector.pdf
http://www.dsir.gov.in/reports/mitcon/chap2.pdf
Books Referred
Operations Management By William J Stevenson (9th Edition)
8/8/2019 Operational Mgt Final
29/29