Supply Chain Final Project Orient

8/13/2019 Supply Chain Final Project Orient

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“In the name of allah the most benefIcent

the most mercIful”



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BEACHLOR of BUSINESS ADMINSTRATOR

Prof Saroop Ahmad

MUHAMMAD TARIQ 11344

M.TARIQ 11344Haroon Sadiq 11349

Adiba Jabeen 11544

Usman Sadiq 11360

Umer Farooq 11317

BBA 7) A

Submitted To:

Submitted By:

Group Leader:

Program :

Class:



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Contents

Acknowledgement and dedication ...................................................................... iv Acknowledgement:- .............................. iv Dedication:- ....................................... iv Executive Summary .............................................................................................. v Introduction of Supply chain ............................................................................... 6

1.1. Company Profile .............................. 7 1.2. OUR VISION ................................ 7

1.4 Commitment ...................................................................................................... 7 1.5 Universal Standards ........................................................................................ 8 1.6 Quality Control ..................................................................................................... 8 1.7 Innovation ............................................................................................................. 8 1.8 Our Team .............................................................................................................. 8 1.9 Customer Care ...................................................................................................... 8 1.10 Life Styles ........................................................................................................... 9 1.11 Objectives ........................................................................................................... 9 1.12 Achievements ...................................................................................................... 9 1.13 Corporate Social responsibility ........................................................................... 9 1.14 Company's Future ............................................................................................. 10 Objective of the Report:- .................................................................................... 11 Supply Chain Model:-......................................................................................... 12 The Interview:- .................................................................................................... 14 Questions:- ........................................................................................................... 14 The Manager Answer’s ...................................................................................... 15 Findings:- ............................................................................................................. 18 Recommendations:- ............................................................................................ 18 Action Plan: 1 Price Forecast............................................................................. 19 .Action Plan: 2 Developing Supply Chain Strategy ......................................... 20 Action Plan: 3 Keep Communicating with Your Partners ............................. 21 Action Plan: 4 Avoiding Potential Pitfalls ........................................................ 21 Action Plan: 5 Implementation Of supply Chain ............................................ 21 Conclusion:- ......................................................................................................... 23 Learning out coming:- ........................................................................................ 23



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Acknowledgement and dedication

Acknowledgement:-

First of all we are thankful to one and only the Almighty Allah and his prophet

Mohammed (PBUH) for always guiding us in the thick and thin and giving strengths and

courage to complete this project, without them nothing would have been possible. Our

special thanks to our teacher Saroop Shab who not only provide us Opportunity

to do this assignment but also paid a Fair attention to do it. Then we would like

to thank our parents whose prayers and support have always been influential in our lives.

Finally we would like to thank all the people who directly or indirectly helped us out in

this, and a thank you goes to the organizations whose data we used in this project as well.

Dedication:-To Almighty Allah and his prophet Mohammed (PBUH), and to Our loving parents who

gave our life to face the world and to our dearest sisters who gave us a lot and always

there for use whenever we need them we also dedicate to all our teachers specially Prof.

Saroop Shab to teach us and help us in every knowledge activity that we were done.



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Executive Summary

Orient Group of Companies has been on the forefront of design and development, by

coming up with new products and increasing its presence in all its featured markets.

Established in Lahore in1957, today the Orient Group of Companies is one of the largest

consumer goods companies of Pakistan.

Orients products have proven themselves in functional performance parameters set by

international industry experts. With the vision to become leaders of the industry, Orient

strives to make each of its products, with careful R&D and intensive innovation. Orient

aims to give its customers new and original products each year, which can be valued

beyond the ordinary in every household

The person to whom we interviewed was manager administration and also production

manager named Homaeer Waheed. During the interview we asked different questions for

the manager according to our book material and some questions were asked during the

conversation. The interview was based on the topic of production. Mainly we asked

questions for productivity, quality, competitiveness, strategy, forecasting and challenges.

Our objective of the interview was to explore each and everything regarding supply chain

but mainly our focus was to know that;

What does an operations manager do?

How he manages the quality?

How he manages the inventory?

What strategies does he adopt?

What reports does he prepare?

These were the mainly objectives of our project. We tried our best to complete these

objectives and we succeeded in this but unfortunately the manager was not as cooperative

as he didn’t give the answers with full detail. The manager was giving us answers in just

one line due to which we feel that he was trying to hide the information regarding the

supply chain. But we somehow succeeded in getting out the main theme of his answers.



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Introduction of Supply chain

The sequence of organizations their facilities, functions, and activities that are involved in

producing and delivering a product or service. Sometimes referred to as value chains.

In today’s world of globalization many apparel manufacturers are building strong supply

chains to gain advantage over their competitors by offering the best value to their

customers. The supply chain management has become very critical to manage risk,

dynamism, and complexities of global sourcing. A totally integrated supply chain is

required for the company to get gain the maximum benefits. The objectives of the supply

chain and the performance measurements need to be understood in order to build themost effective supply chain. Performance measurements provide an approach to identify

the success and potential of supply management strategies.

One major aspect of the supply chain management is to select the right sources of supply

in the global business environment that can support corporate strategy. Contrary to the

conventional adversarial relationships, effective supply chain management in the new

competition suggests seeking close relationships in the long term with less number of

partners.




1.1. Company Profile

Orient Group of Companies has been on the forefront of design and

development, by coming up with new products and increasing its

Presence in all its featured markets. Established in Lahore in1957,

today the Orient Group of Companies is one of the largest

consumer goods companies of Pakistan.

Orients products have proven themselves in functional performance

parameters set by international industry experts. With the vision to

become leaders of the industry, Orient strives to make each of its

products, with careful R&D and intensive innovation. Orient aimsto give its customers new and original products each year, which

can be valued beyond the ordinary in every household.

1.2. OUR VISION

“To be the leading provider of Consumer Electronics goods in Pakistan and

deliver the best to the nation and our country”

1.4 Commitment

At Orient Group of Companies we are driven first and foremost by our

customers. The talent, energy and determination of each and every

employee enable us to deliver the best to our customers and play a role in

boosting the country.

http://www.orient.com.pk/assets/factory.jpg







1.5 Universal Standards

Our products are designed according to the universal standards so that our

customers can enjoy the best of their experiences with them.

1.6 Quality Control

Our stringent quality parameters and rigorous testing and re-testing allows

for 100% confirmation of standards. From our services to our workforce,

we are employed to ensure the best quality on offer.

1.7 Innovation

Orient Group of Companies is built up of a dedicated workforce

functioning as a team. We are working together on a mission to provide

our very best to the customers.

1.8 Our Team

Our Vision is to be the leading provider of Consumer Electronics goods in

Pakistan and deliver the best to the nation and our country.

1.9 Customer Care




We value our customers and are devoted to deliver to them in a timely and professional

manner. Our dedicated team deals each query with the utmost efficiency in order to gain

customer satisfaction

1.10 Life Styles

Our exquisite range of appliances is designed to bring vibrant changes in your

lifestyle. Our attractive products certainly add more meaning to your life.

1.11 Objectives

Our target is to become Pakistan's top manufacturers in electronics and homeappliances, photographic and lighting industries. We are evolving ourselves toward

upgrading our products and services to serve our customers the best.

1.12 Achievements

Orient Group of Companies has been awarded with the Best Achievement

Award by Lahore Chamber of Commerce & Industry in the year 2005. It is

recognized as Pakistan's one of the most successful manufacturers and

distributors of electronic goods.

1.13 Corporate Social responsibility

Our Vision is to be the leading provider of Consumer Electronics goods in

Pakistan and deliver the best to the nation and our country.




1.14 Company's Future

Our Vision is our dream, soon to be fulfilled. Orient Group of Companies is progressing towards bringing world class electronic products to its customers

and contributing to our nation.




Objective of the Report:-

The Broad Objective of this report is:

1. To identify the factors related to supply chain effectiveness

2. To know about role of merchandiser in an electronic manufacturing company

3. To provide some recommendations on the basis of findings




Supply Chain Model:-







The Interview:-We conduct a semi structured interview with the manager which was about two hours.

In the interview we asked different questions related to supply chain and production

production. Most of the questions were structured but few were asked during the

conversation as they clicked the mind. We weren’t able to ask each and every question as

he was covering every related thing in one answer but we somehow fulfill our need.

Questions:-

We asked him different type of questions related to the supply chain and production

department. Below is the list of the questions that we asked him;

As has been Supply chain manager what tasks do you perform?

How do you manage the workload?

Which part in production department you give more attention?

How do you manage the inventory?

What steps do you take to smooth the inventory process?

What minimum quantity of raw material do you keep?

What is the ratio of wastage of raw material during manufacturing?

Do you take any steps to cut the wastage of raw material?

Do you make strategies for best results in the future?

How do you evaluate the work of the employees?

What steps do you take to improve the efficiency of the employees?

Is any training offered to the employees?

Is your company is a quality conscious company?

How you manage the quality of the products?

How you assure your customer with best quality?

Have you faced any major conflict during the manufacturing process?

What strategy do you adopt to solve the problems?

How much there is an influence of other departments to production supply

chain?

What reports do you make?

Do you forecast the supply chain process?

Who are your big competitors in the market?




On which basis you’re company compete with competitors?

These were the structured questions which we asked the production manager.

There are a few more questions which were not structured and were asked as the

click the mind so their answers are attached with the structured answers.

The Manager Answer’s

He said that he has to control and look everything in the supply chain

department. He was appointed eight years ago and now he controls almost

the whole supply chain department. He said that there are many different

tasks which he has to perform every day like he have to check the supply

chain process and production whether they are running well or not, have to

maintain the required labor for the supply chain, have to ensure the

availability of raw material, have to order that what and how much have to

produce and have to send the consignment etc.

He said that there are very less chances of the heavy workload of supply

chain and production department as everything works as per the routine

work but sometime when any order got out of order then we arrange extra

shifts of labor on other same order but doesn’t let the consignment.

Actually I concentrate on every part of the supply chain department as it is

my duty to keep it in running phase but there are two main parts one is rawmaterial and the other is labor. Without these the production cannot be

sustain so I tried hard to keep these two parts running.

Inventory is managed as per our sales. We give preference to those orders

which are manufactured on the regular basis. For these kinds of orders the

inventory is managed as per our scheduled frame.

As I said earlier the inventory process doesn’t get interrupted as

everything is according to the scheduled frame.

Actually our main raw material is electronic parts which is the basic

ingredient in our products therefore we have to keep the raw material

stock for up to three months whose quantity does vary as per our current

sales. We have a dying unit where our raw material is getting its final

shape for the product making and it is the responsibility of the raw




material department that they sustain the requirement of the production

department.

Wastage of raw material is very minor in our process as we adopt up to

assembling processes.

We adopt up to Assembling manufacturing processes due to which we

little the wastage of material.

As I said earlier my company is a quality conscious company so we make

up to date strategies with which we try to meet the customer demand in

effective and efficient way.

We have certain criteria for employee’s performance evaluation like

through the quality of the electronic luggage we can evaluate the

performance. We have cameras installed in the labor area where we keep

an eye on every employee.

We believe in facilitating our men therefore we provide best and suitable

working environment to our employees so they can perform well.

Actually lower class labor needs only one time training like when the new

machine arrives at the factory but we provide continuous training in the

middle and upper class labor until complete knowledge. Other quarterly

trainings are offered to the employees to keep them up to date.

Of course, quality is the main asset of our company. We didn’t

compromise on the quality. We try hard to provide our customers with the

best quality.

We have a quality assurance department that checks the quality of the

electronics luggage according to the Pakistan & International standards.

Our awards and the quality certificates are the mirror of our performance

so our customer can ensure the quality through these awards and quality

certificates.

Three years ago there was a severe problem of power but then for long

term planning we bought a heavy generator due to which our production

process didn’t interrupt. I didn’t face any other bottleneck




We are providing the best environment for our employees which lesser the

conflicts among them. I didn’t face any major conflict.

We do prepare our plans for production at the start of the week to ensure

that everything will run according to the schedule so this strategy helps us

to minimize any problem & conflicts with the production process.

Other departments put stress on us when the production process slows

down otherwise in the routine work they send us orders and we dispatch

them on the due date.

There are different reports which we make on a daily, weekly and monthly

basis. Like we make dispatch reports daily, orders report daily, inventory

report daily, labor report daily etc.

Through our current production speed and demand of the products we put

focus on those areas or products which are highly sold so we do forecast

for the current sales that this particular product will need this % of raw

material which we have to keep. Moreover we also keep an eye on the

latest machinery which is being used in the assembling the electronic stuff

so that we can also acquire that to boost our production.

Every quality stuff maker is our competitor but I would like to say few

names like electronic and electric stuff, LG, SONY, HAIRE, PL

Quality is the main asset of our company but there is another thing on

which basis we feel that we are competing in the market and that is our

delivery time. We strive best to attain the minimum production time by

our strategies and proper scheduling. We deliver the best time to our

customers through the best manufacturing process.




Findings:-1. In term of demand forecasting system the supply chain Orient is moderately effective.

2. In term of price forecasting system for raw material, the supply chain of Orient is

ineffective.

3. Order placement system Orient is moderately effective

4. Supply chain is moderately effective in case inventory management.

5. In term of order lead time the Orient is moderately effective

. 6. Supply chain is highly effective in term of production facility.

7. Supply chain is moderately effective in terms of production management.

8. In term of communication with supply chain partners supply chain is marginally

effective.

9. Supply chain orient is ineffective in term of communication with suppliers.

10. Supply chain is highly effective in term of shipment delivery (Distribution

Management).

11. In term of distribution flexibility supply chain is moderately effective.

Recommendations:-

Orient should improve their supply chain practice in those areas in which are current

ineffective or marginally effective.

Price forecasting system orient is ineffective. If future price of raw materials are

not accurately predicted, the production cost will be increased as consequence.

So, price forecasting system raw material should be improved.

Communication with supply chain partners, especially with suppliers should be

improved as the study finds that this function is currently in marginally ineffective

level. Although currently distribution schedule is not hampering with this lack of

communication but it can seriously impacts on production and increase

production cost.

Communication with suppliers should be more frequent and feedback should take

in order to get production materials timely and in right price.




Supply chain areas which are currently moderately effective level (demand forecasting,

order placement, inventory management and production management, distribution

flexibility) should bring in to highly effective level.

Action Plan: 1 Price Forecast

They needed a more sophisticated pricing approach, not a more complicated one – and

Idea price system gives them a solution to my pricing problems that is easy to use. I never

knew that providing their company with access to advanced analytics would be so simple

to implement and inexpensive to their all.”

Ideas pricing System enables company managers to more accurately forecast occupancy,

quickly set daily raw material rates, and ultimately make more competitive pricing

decisions for their company. The system’s simplified approach, intuitive design and

powerful functionality minimize the amount of training and interaction needed to learn

and operate the system. In just a few clicks, users can upload pricing decisions to all

necessary distribution channels.

An immediate revenue lift due to the system’s advanced analytics and increased

market insight.

Usable by busy general managers - The system enables GMs or other companystaff to make efficient revenue management decisions without interrupting regular

responsibilities.

Increased time and energy for enhancing guest satisfaction through reduced

time and energy spent manually collecting, entering and analyzing market data.

High impact initiative Idea System’ proven analytics, award winning client

support, rapid implementation through delivery and minimal upfront costs

delivers high value and little risk.

Enhanced brand value proposition Limited service brands can offer simplified

pricing capability to current and prospective hotel owners.




.Action Plan: 2 Developing Supply Chain Strategy

Understand the Business Strategy

The first step is for supply chain executives to clearly understand how the enterprise

chooses to compete. This is important not only for the obvious reason of working off the“

same play book,” but also for the reason that it forces the supply chain operation to see

itself as a customer facing entity serving the competitive goals of the enterprise not

merely an operational department. Supply chain strategy is not simply a linear derivative

of the business strategy

Assess the Extended Supply Chain

The next step is to conduct a detailed, realistic assessment of the capabilities that Exist

within the organization and even the extended supply chain. Begin by closely scrutinizing

your organization’s assets and evaluate how well they support the strategy. Old

machinery and disparate systems may mean high operational overhead and costly process

inefficiencies and redundancies clearly not supportive of a low cost provider strategy.

Develop an Implementation Plan

From this critical work emerges the “go forward” supply chain strategy directly tied to

the business strategy, highly specific as to enablers and metrics, and with defined set of

implementation requirements and contingencies. The development of an implementation

plan should include activities and tasks, roles, responsibilities, a corresponding timeline,

and performance metrics. Establish sub team to shepherd the execution and provide

project management responsibility to resolve issues and track status.

Development Considerations

Cooperate and Collaborate with Your Partners – Throughout the development process

remember to include your supply chain partners. While you don’t necessary need to

divulge the full details of your strategy, you can certainly communicate how you wouldlike to do business. Ideally, seek out mutual goals that both organizations can execute on.

Not only will you be one step closer to realizing your supply chain strategy, you will

learn more about the companies that you do business with. For example, collaboration in

product design may meet your need Tostem R&D costs and also alert you to new product

concepts that you wouldn’t discover without working with your customer.




Outsource Where Appropriate

Part of developing a supply chain strategy includes evaluating opportunities to outsource

areas that are not your core competency. If someone else can do it cheaper, it may be

worth outsourcing not only to drive down costs, but also to focus more resources on the

core competencies your organization does well.

Action Plan: 3 Keep Communicating with Your Partners

Executing a supply chain strategy means dealing with many different entities, both

internally and externally. Just as it is crucial to align the supply chain strategy with the

business strategy, it is equally important to execute in a manner consistent with these

different groups or stakeholders. The goals of your supply chain components and those

that you deal with must be similar and conducted at the same speed. Your organization

may be able to move at speeds other supply chain entities are unable to maintain,resulting in misalignment and poor efficiencies. And some of your supply chain partners

may not have the resources to commit to realizing these goals. Good communication can

keep the extended supply chain in sync.

Action Plan: 4 Avoiding Potential Pitfalls

Even before the well publicized dot com collapse, business failures due to poorly

Implemented strategy were very frequent. Fortune Magazine reported in a study that

CEO strategy failures occurred primarily (est. 70%) because of failure in Execution, not

with the vision and strategy development. “The real problem isn’t the high concept

boners the bowfins love to talk about. It’s bad execution. As simple as that: not getting

things done, being indecisive, not delivering on commitments.”

Action Plan: 5 Implementation Of supply Chain

The implementation of supply chain management (SCM) can be both beneficial and

challenging to your business. Determining supply chain challenges before they happen is

critical to SCM success, as the failures and successes are extremely visible to your

trading partners. In order to achieve successful implementation of SCM, take note of the

following supply chain challenges:

Do not assume SCM Technology Fixes Everything.

SCM technology does many things, but it cannot do it all. One of the most unrealistic

assumptions is that SCM technology will help you control your supply chain and vendor




resources. Before you rely too heavily on SCM technology, you must first have a specific

level of organized control within your supply chain relationships. Supply chain

management technology is most effective when you have the ability to control your

logistic providers and trading partners.

Do not Use the Past to Predict the Future.

Relying on past performance to predict future sales can cause big problems. Instead, track

actual sales as they happen; the supply chain network will react quickly to any changes in

consumer trends. This tactic is particularly beneficial in a retail supply chain, when the

item being sold is unremarkable and can be purchased from a variety of retailers.

Do not rely on Sale Data.

Never rely solely on sale data when making critical decisions. It’s important to

understand and utilize real- time inventory levels, cash flow and financial ratings when

making critical supply chain decisions. If you maintain your supply chain metrics, you’ll

avoid making partnership errors with both suppliers and customers.

Do not forget to Communicate.

Another common supply chain challenge is lack of communication. Both suppliers and

customers need continuous monitoring, as well as collaboration to ensure supply meets

demand. Nothing can replace face-to-face communication; by fostering personal

relationships with both customers and suppliers, the entire supply chain process will be

embraced by all.

Do not forget about a supplier’s capability

One of the more difficult aspects of supply chain management is trying to understand the

full capabilities of your suppliers. By understanding what a supplier can do during critical

times can greatly increase your response time to changes in demand. Skilled supply chain

managers will often review lead times, burst capacity, standard capacity and quick turn

capabilities with their suppliers to ensure the supplier’s capabilities meet the needs of the

company.



Conclusion:-

Supply chains are effective when the exchange value of the system fulfills expectations

of the supply chain members. Today’s business environment is more global and

competitive than it has been in the past. The modern business is characterized with

shorter product life cycles, rapid new product introductions, increasingly knowledgeable,

well informed, and sophisticated customers. This forces supply chains to be more

effective. The modern supply chains are thus expected to respond rapidly, effectively,

and efficiently to changes in the market place so as to sustain, and further more create

competitive advantage.

Learning out coming:-

Throughout the interview we tried our best to catch the best possible answers but the

manager was looking in a hurry and he gave us answers very shortly. Even he didn’t

share any real time experience with us but overall it was a good interview which helps us

a lot to learn and experience new things about Supply chain department which we never

experienced before.

Through the interview we came to this point that the Supply chain manager job is of

much responsibility because he has to ensure the continuous supply by keeping all the

inputs into right condition. He has to come up with day to day challenges of the supply

process which he solves by adopting proper and effective strategies. The manager has to

keep himself up to date with the new trends and techniques which make him profitable

for the organization.

Documents

Supply Chain Final Project Orient