A PROJECT REPORT

ON

‘Rachna electronics’
A Project Report submitted in partial fulfilment of the requirements for the
awards of the degree of

MASTER OF BUSINESS ADMINISTRATION

TO

By
Vijay pratap singh
Reg.id 10801367

Under the guidance of

Ms. NIDHI NEGI

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 anubhav

Acknowledgement
I wish to express my sincere gratitude to my guide Mr.B.N.SHARMA (production manager
,Rachna electronicpvt.ltd.vision II) for providing valuable guidance and suggestions during this
Project. Without her guidance and enriching suggestions this project would be lacking in
competence.
And last but not the least I would like to take this opportunity to thank all the members
and associates from various organizations those have provided their valuable feedback and
cooperation during the survey of this project.
This acknowledgement would not be completed unless I also thank those who directly or
indirectly helped me throughout the successful completion of the project.

At the last I would like to express my thanks to the entire staff of RACHNA
ELCTRONICS PVT .LTD for support me in every task of my internship Program and made
my internship a truly memorable one.

( VIJAY PRATAP SINGH)

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Prefece
The success of any industry depends upon efficient and effective planning by the
Management of the organisation. In today’s world of stiff competition customer play a major
role in the whole scenario of the business. Customers are today the king in the market and
everyday seem to have understood it. Customers are having a wider choice than ever now days.
In such a condition a companies marketing strategies and policies should be such that it matches
the needs preference of the companies.

It is the systematic and objective identification collection, analysis dissemination, and

use of information for the purpose of assisting management in decision making related to the
identification & solution of problems in marketing.

Supply chain management can be classified into two main types that is conceptual and
practical which are both useful, however problems identification research and problems solving
research go hand in hand and a given marketing research project may combine both types of
research.

. Supply chain management today has grown like anything and the modern successful
companies are spending huge amount of money for it to run company in a smooth and successful
way.

I consider myself lucky to get my summer training in branded namely RACHANA

ELECTRICALS PVT LTD.. I underwent six weaks RACHANA ELECTRICALS PVT LTD
of training at . It helped me to get a practical insight into the actual business environment and
provided me an opportunity to make my management concept clearer.

It is difficult to elaborate everything which learned during the training however, I have
endeavored too many, comprehensive picture of details about working in the following pages. I
have accumulated the desired information through personal observation, study of documents and
discussions.

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Table of Contents

 Cover Page 1
 Table of Contents 2
 Acknowledgement 3
 Preface 4
 Certificate
 Introduction to the Mahindra &Mahindra (swaraj Division II) 5-11
 Introduction regarding project topic t d 12-14
 Objective & Scope of the Project 15-17
• Project Objectives
• Scope
 Literature View 18-45
• Human Resource Management
• Training & development

• Importance of Training & Development in companies

 Methodology 48
 Sample Survey 49-59
 Analysis 60-65
 Limitations 66-67
 Findings 68
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 Conclusion 69-70
 Suggestions 71-72
 Bibliography 73
 Annexure 74
 Questionnaire 75-83

EXECUTIVE SUMMARY

I worked as a part of Rachna Electricls PRIVATE LTD., during my summer internship

program. This project was undertaken by me because today we see various heavy machines in
front of us in the form of GEASER ,EMERSON RAD making machines and even other big
machines , I always fantasized that how does these machines come into being, how does the
heavy parts used in these machines are been moved from one place to another and it was an
opportunity given by Rachna Electricls to me to carry out a survey over the FORKLIFTS made
by REMSON and the condition of satisfaction which its clients derive from it.

Rachna Electrical cis known for its reputation because many prestigious organizations
have been awarding them the contract to identify the needs of customers to provide them
required satisfaction and to take corrective actions to improve upon their business vis a vis their
compet

Rachna India has expert marketing research personnel who conduct surveys regularly
and prepare the reqduired formats based on the needs of corporate clients as well as service
provider. While working with RACHNA ELECTRICALS India & their team it was a unique
experience at the planning stage all the participants were consulted, lot of deliberations took
place & also due diligence took place while collecting data, designing input formats which can
provide value based suggestion to the service provider to improve their overall efficiency &
becoming market leader

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 I don’t know whether my suggestion will bring joy to them or will be deemed as scrap
because. I am not aware of their internal matters. But if I will find that my suggestions have been
considered I will feel I have achieved what I had planned to the required goal.

Therefore I can confidently say that my executive summary is my personal experience of

learning & expression .The researcher of RACHNA ELCTRICALS appreciated this.

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SUMMER TRAINING PROJECT SYNOPSIS AT A
GLANCE

Project Title : ELECTRONIC GOODS

Company : RACHANA ELECTRICAL.

Project Undertaken By : Mr. VIJAY PRATAP SINGH

Project Guider : Mr. B.N.SHARMA

Guider Designation : PRODUCTION MANAGER

Duration Of the Project : 1st July- 14th Aug 2009

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HISTORY OF Electronics industry
Electronics industry, the business of creating, designing, producing, and selling devices such as
radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits (see
electronics). As sales of electronic products in the United States grew from some $200 million in
1927 to over $266 billion in 1990, the electronics industry transformed factories, offices, and
homes, emerging as a key economic sector that rivaled the chemical, steel, and auto industries in
size.
The industry traces its origins to the invention of the two-element electron tube (1904) by John
Ambrose Flemming, and the three-element tube (1906) by Lee De Forest. These inventions led
to the development of commercial radio in the 1920s, which boosted radio sales to $300 million
by the end of the decade. In 1947, the electronics industry made another important advance
when John Bardeen, Walter Brattain, and William Shockley invented the transistor. Smaller,
lighter, and more durable than the vacuum tubes that had been used in radios, transistors touched
off a period of progressive miniaturization of electronic devices. Integrated circuits, which were
developed in the 1950s, allowed the integration of several circuits into one circuit, and the
introduction of analog devices in the 1960s vastly increased the amount of information that
could be stored on a single silicon chip.
Other important sectors that have made great advances since the 1970s include laser and optical
electronics, digital electronics, and microwave electronics. Advances in the field of electronics
have also played a key role in the development of space technology and satellite
communications; inaugurated a revolution in the computer industry that led to the introduction
of the personal computer; resulted in the introduction of computer-guided robots in factories;
produced systems for storing and transmitting data electronically; greatly expanded the market
for popular music and culture; and, in the process, transformed life at home, the office, and the
factory. Many of these innovations, such as the transistor, had their origins in military research,
which needed increasingly complex electronic devices for modern high-tech warfare.
In the 1960s, the U.S. consumer electronics industry went into decline as manufacturers were
unable to compete with the quality and pricing of foreign products, especially the electronic
goods produced by Japanese companies such as Sony and Hitachi. By the 1980s, however, U.S.
manufacturers became the world leaders in semiconductor development and assembly. In the
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1990s semiconductors were essential components of personal computers and most other
electronic items (including cellular telephones, televisions, medical equipment, and “smart”
appliances). While U.S. companies are still a major presence in the semiconductor industry
(representing about 40% of world sales in 1998), the consumer items themselves are mostly
made overseas. Worldwide electronic sales were nearly $700 billion in 1997.

INTRODUCTION OF COMPANY

RACHANA Electricals PVT. Ltd.

(Remson Appliances)

An ISO 9001:2000 company

This unit was established as Gemson Enterprises in the year 1976 with a view to
manufacture heating element, table lamps & electric iron. Annual turnover was
around 2lacs at that time.electric storage water heater were added in the product
line in the year 1979 increasing the annual turnover to Rs.5lacs. The unit was
renamed As Rachna Electricals Pvt. Ltd. in the year 1981 unit received its ISI
certification for its products in the year 1983. In the year 1985 the unit achieved
its target turnover of rs.50lacsper annum.

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The company has installed state of the art plant & machinery for quality
products and checking of finished components. Most modern lab has been
established for carrying out checking /testing of finished products as per ISI
norms

Since inception unit has been continuously progressing and upgrading the
manufacturing the manufacturing & quality control facilities. The objective has
been to produce quality product at competitive price.

With continuous interaction from user/market new lightweight, aesthetic look

A.B.S. geyser have been developed and introduced as ‘MAGIC’ series recently
in the market which have been received well all over India.

At present our products are sold in Delhi, H.P., M.P., Maharashtra, Tamilnadu,
kerala, karnatka, Sikkim, Bhutan& J&K, with a current turnover of Rs.
2crore/annum

Our future plan is to explore possibilities of exploring our products to

S.A.A.R.C. countries. Introducing OTG in the product range and achieve a
target turn over of Rs. 5 crore in next five years.

We at Remson and Rallison Group have eight units manufacturing a wide range of electrical
appliances including mixies, grinders, electric irons, room heaters, and leaders in Copper Tank
Electrical Water Heaters (geysers) & Gas water heaters.
We also manufacture ceiling fans at our unit at Bhadi in Himachal Pradesh. The fans have been
designed to offer 11 per cent electricity saving when compared to competition.
We have a well-known name in the water heaters segment and have been given a ‘five-star
rating’ by Voluntary Organisation in Interest of Consumer Education (VOICE) for being the
most energy saving water heaters among ten leading brands.
We have a 50 years old experience in manufacturing of domestic and industrial heating
elements made up of copper, water heaters, water heater safety devices, highly durable room
heaters, hot iron, hot iron heating coils, and of all Rallison Wires & Cables.
Rallison is a company that has made a mark for itself in a short period of over a decade. All due
to its commitment to provide a wide variety of wires and cables from one source and that too a
third party guarantee ISI mark.

Rallison is a dependable name for safe distribution of power that lights up your homes and your
streets, power that runs your factories, keep communication channels open all though 24 hours.

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Remson and Rallison enters CFL
segment

The Rs 200-crore Remson and Rallison Electricals Limited has entered the cluttered compact
fluorescent lamp (CFL) segment with a range of 25 lamps of varying wattage and designs.

Addressing a press conference here, chairman S K Babbar said the CFLs were of the highest
standard conforming to regulations of the Bureau of Indian Standards (BIS). Each CFL will last
for 8,000 hours and come with an unconditional guarantee of one year.

Babbar said the CFLs were being manufactured at the company?s new plant at the Narela
Industrial Estate, Delhi. ?We have imported machines from Korea to produce high quality
CFLs,” he disclosed. The range is priced between Rs 100 and Rs 190 and CFLs come in both
retrofit and non-retrofit makes.

He said that the common complaint of CFLs not emitting ‘adequate light’ or getting damaged
easily had been solved. CFLs are supposed to have a longer rated life and use less electricity than
incandescent light bulbs thereby saving enough money in energy costs to make up for their initial
higher price within some 500 hours of use. Babbar said Remson and Rallison CFLs confirmed to
this.

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The Remson and Rallison Group has eight units manufacturing a wide range of electrical
appliances including mixies, grinders, electric irons, room heaters, and geysers. Remson is a
well-known name in the geysers segment and was given a ‘five-star rating’ by Voluntary
Organisation in Interest of Consumer Education (VOICE) for being the most energy-saving
geyser among ten leading brands.

VOICE had conducted the comparative testing of water heaters in Delhi, Mumbai, Bangalore
and Kolkata. Remson geyers were the only one to get the five star rating.

Remson has also launched gas-run geysers, which come with a digital display panel. These are
priced at Rs 3,500 onwards. Babbar said Remson had diversified in the wire and cable segment
and merged with sister concern Rallison. It was also in the process of setting up a new plant at
Bhiwadi in Rajasthan for increasing its wire and cable manufacturing capacity.

“We have a small plant at Bhiwadi and now want to increase capacity through a modern plant,”
he said.

The group also manufactures ceiling fans at its unit at Bhadi in Himachal Pradesh. The fans, he
said, had been designed to offer 11 per cent electricity saving when compared to competition.

Babbar said the company was already exporting to Sri Lanka, Nepal, Singapore and South Africa
and was planning to open an office at Dubai in the next few months. “We will then cater to the
entire Gulf market from Dubai,” he said.

Remson and Rallison to go public in `07

Remson and Rallison Electricals Limited will go public in April 2007. The initial public offering
is to fund the company’s expansion plans and its increased focus in the growing wire and cable
segment.

“We have a well-charted future plan for achieving a turnover of Rs 1,000 crore by 2010,” said
chairman S K Babbar.

Remson and Rallison Electricals is on the approved list of suppliers for a number of public sector
and private companies such as National Thermal Power Corporation Limited (NTPC), Reliance,
Tata, Bajaj, Philips, DLF,and BHEL.
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Contact details

Company Name: Remson Appliances

Contact Person: Mr. Vishal Grover (Manager)

Telephone: +(91)-(11)-28114089

Mobile: +(91)-9311107111
Fax: +(91)-(11)-28112644

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 Address: G- 1- 118, Mayapuri Industrial Area, Phase No. 2, Maya Puri
Delhi, Delhi - 110 064 (INDIA)

Website: http://www.rallison.com

FACT FILE

Nature of Business : Wholeseller

Year of Establishment : 1985
Number of Employees : 101 to 500 People
Turnover : US$ 10-25 Million (or Rs. 40-100 Crore
Approx.)

Rallison has unfolded the new dimensions of progress and development by taking the initiatives
to build a forte of intellectual prowess and zero-defect quality to shield the imperative
expectations of the cable and wire industry.
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Rallison, as one of the leading manufacturers of wires and cables in North India has the largest
dealer and distributor network all over the India, which enables its products to reach every nook
and corner of the country.

We cater to the diversified needs of our reverent customers, thus providing them with the
comprehensive solutions of wires and cables such as PVC/PE insulated wires, LT-PVC/XLPE
power control, instrumentation cables, Flexible and House wires. Rallison also manufactures the
cables in accordance to the customer specifications.

Rallison was awarded the ISO-9001 certificate in the year 2002. In addition to this, Rallison is
the first Delhi based cable manufacturing company to attain an ISO-9002 certification.

The foundation of Rallison was laid in 1985 as a small unit in Badli working hand-in-hand with
Remson, which is a name to reckon with in the appliance industry and which has recently
bagged a Gold Medal at IITF 2002 for its undisputed quality commitment.

Our philosophy is to build a zero-defect product, which carries value satisfaction for our
customers. Rallison strongly believes that learning and improving is a continuous process for the
growth of any company.

Keeping up pace with radical transformation of technology, time and again, Rallison has proved
its urge for quality by getting Best Vendors Award from Philips India for consecutive three
years. Rallison has spread its wings by exporting products to Philips India having branches in
Singapore, Malaysia, and Hong Kong and is emerging as a true contender for globalisation.
Today competitiveness is the loudly uttered word in domestic and international markets.
Rallison keeps a constant vigil on all the technological developments taking place in the cable
industry and adopts them to keep up with the ever-changing market trends.

Rallison is adhering to the yardsticks of the latest technology, which matches the international
standards of quality. Rallison boasts of its means of processing, state-of-the-art machinery and
equipment imported from USA, UK and Germany.

With the present setup at Mayapuri, New Delhi, well equipped with state-of-the-art technology
coupled with efficient, competent and result oriented professional team working round the clock,
enables us to niche our way to success.

Rallison has learnt "how to learn and hear the unheard voices" which enhances its capabilities to
face the future challenges. Keeping this in mind, Rallison has added a 2 acres of land unit at
Bhiwadi, Rajasthan which will be fully operational by July 2003. Rallison's objective as a
corporate is to provide utmost satisfaction to its customers.
It is only then that we can have a relationship with our customers, which will be fondly

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cherished by the generations to come.
Commitment, Teamwork and Dedication to quality have led and are still leading Rallison to a
future of growth and prosperity.

We are committed to continuous improvements in all our operations to ensure the highest level
of customer satisfaction. We maintain a highly skilled workforce devoted to meeting and
exceeding customer needs.

To meet the current worldwide demand for wires and cables, Rallison has undertaken several
expansions of its production facility and quality measures. These expanded and improved
facilities enable Rallison to significantly reduce quoted delivery time and remain a major player
in the Indian and international markets.

Commitment, Teamwork and Dedication to quality have led and are still leading Rallison to a
future of growth and prosperity.

We are committed to continuous improvements in all our operations to ensure the highest level
of customer satisfaction. We maintain a highly skilled workforce devoted to meeting and
exceeding customer needs.

To meet the current worldwide demand for wires and cables, Rallison has undertaken several
expansions of its production facility and quality measures. These expanded and improved
facilities enable Rallison to significantly reduce quoted delivery time and remain a major player
in the Indian and international markets.

Our Mission
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 Applied research & business consulting offer a real world educational platform within
which remson & our clients learn from each other . It is our mission at market probe to grow
based on our client partnerships . We will continue to help our clients to achieve their business
goals & protect their long term assets : their customers , their employees & their brands .

To meet our mission , we at market probe subscribe to a set of core values :

 Maintain the integrity of the data.

 Protect the confidentiality of all the client’s information

 Aspire to the highest standards of intellectual honesty

 Stay flexible to the new ideas

Achieve the epitome of clients service and self improvement

Introduction to Supply Chain Management

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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
(Harland, 1996). 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 .

A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in
both service and manufacturing organizations, although the complexity of the chain may vary
greatly from industry to industry and firm to firm.
Below is an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then transported to
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distribution centers, and ultimately, customers. Realistic supply chains have multiple end
products with shared components, facilities and capacities. The flow of materials is not always
along an arborescent network, various modes of transportation may be considered, and the bill of
materials for the end items may be both deep and large.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing

organizations along the supply chain operated independently. These organizations have their
own objectives and these are often conflicting. Marketing's objective of high customer service
and maximum sales dollars conflict with manufacturing and distribution goals. Many
manufacturing operations are designed to maximize throughput and lower costs with little
consideration for the impact on inventory levels and distribution capabilities. Purchasing
contracts are often negotiated with very little information beyond historical buying patterns. The
result of these factors is that there is not a single, integrated plan for the organization---there
were as many plans as businesses. Clearly, there is a need for a mechanism through which these
different functions can be integrated together. Supply chain management is a strategy through
which such an integration can be achieved.
Supply chain management is typically viewed to lie between fully vertically integrated firms,
where the entire material flow is owned by a single firm, and those where each channel member
operates independently. Therefore coordination between the various players in the chain is key
in its effective management. Cooper and Ellram [1993] compare supply chain management to a
well-balanced and well-practiced relay team. Such a team is more competitive when each player
knows how to be positioned for the hand-off. The relationships are the strongest between players
who directly pass the baton, but the entire team needs to make a coordinated effort to win the
race.

Supply Chain Decisions

We classify the decisions for supply chain management into two broad categories -- strategic
and operational. As the term implies, strategic decisions are made typically over a longer time
horizon. These are closely linked to the corporate strategy (they sometimes {\it are} the
corporate strategy), and guide supply chain policies from a design perspective. On the other
hand, operational decisions are short term, and focus on activities over a day-to-day basis. The
effort in these type of decisions is to effectively and efficiently manage the product flow in the
"strategically" planned supply chain.

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There are four major decision areas in supply chain management: 1) location, 2) production, 3)
inventory, and 4) transportation (distribution), and there are both strategic and operational
elements in each of these decision areas.

Location Decisions
The geographic placement of production facilities, stocking points, and sourcing points is the
natural first step in creating a supply chain. The location of facilities involves a commitment of
resources to a long-term plan. Once the size, number, and location of these are determined, so
are the possible paths by which the product flows through to the final customer. These decisions
are of great significance to a firm since they represent the basic strategy for accessing customer
markets, and will have a considerable impact on revenue, cost, and level of service. These
decisions should be determined by an optimization routine that considers production costs, taxes,
duties and duty drawback, tariffs, local content, distribution costs, production limitations, etc.
(See Arntzen, Brown, Harrison and Trafton [1995] for a thorough discussion of these aspects.)
Although location decisions are primarily strategic, they also have implications on an
operational level.
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Production Decisions
The strategic decisions include what products to produce, and which plants to produce them in,
allocation of suppliers to plants, plants to DC's, and DC's to customer markets. As before, these
decisions have a big impact on the revenues, costs and customer service levels of the firm. These
decisions assume the existence of the facilities, but determine the exact path(s) through which a
product flows to and from these facilities. Another critical issue is the capacity of the
manufacturing facilities--and this largely depends the degree of vertical integration within the
firm. Operational decisions focus on detailed production scheduling. These decisions include the
construction of the master production schedules, scheduling production on machines, and
equipment maintenance. Other considerations include workload balancing, and quality control
measures at a production facility.

Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of the
supply chain as either raw materials, semi-finished or finished goods. They can also be in-
process between locations. Their primary purpose to buffer against any uncertainty that might
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exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40
percent of their value, their efficient management is critical in supply chain operations. It is
strategic in the sense that top management sets goals. However, most researchers have
approached the management of inventory from an operational perspective. These include
deployment strategies (push versus pull), control policies --- the determination of the optimal
levels of order quantities and reorder points, and setting safety stock levels, at each stocking
location. These levels are critical, since they are primary determinants of customer service
levels.

Transportation Decisions

The mode choice aspect of these decisions are the more strategic ones. These are closely linked
to the inventory decisions, since the best choice of mode is often found by trading-off the cost of
using the particular mode of transport with the indirect cost of inventory associated with that
mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are
expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding
relatively large amounts of inventory to buffer against the inherent uncertainty associated with
them. Therefore customer service levels, and geographic location play vital roles in such
decisions. Since transportation is more than 30 percent of the logistics costs, operating
efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus
Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firm's
transport strategy.
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Supply Chain Modeling Approaches

Clearly, each of the above two levels of decisions require a different perspective. The strategic
decisions are, for the most part, global or "all encompassing" in that they try to integrate various
aspects of the supply chain. Consequently, the models that describe these decisions are huge, and
require a considerable amount of data. Often due to the enormity of data requirements, and the
broad scope of decisions, these models provide approximate solutions to the decisions they
describe. The operational decisions, meanwhile, address the day to day operation of the supply
chain. Therefore the models that describe them are often very specific in nature. Due to their
narrow perspective, these models often consider great detail and provide very good, if not
optimal, solutions to the operational decisions.
To facilitate a concise review of the literature, and at the same time attempting to accommodate
the above polarity in modeling, we divide the modeling approaches into three areas --- Network
Design, ``Rough Cut" methods, and simulation based methods. The network design methods, for
the most part, provide normative models for the more strategic decisions. These models typically
cover the four major decision areas described earlier, and focus more on the design aspect of the
supply chain; the establishment of the network and the associated flows on them. "Rough cut"
methods, on the other hand, give guiding policies for the operational decisions. These models
typically assume a "single site" (i.e., ignore the network) and add supply chain characteristics to
it, such as explicitly considering the site's relation to the others in the network. Simulation
methods is a method by which a comprehensive supply chain model can be analyzed,
considering both strategic and operational elements. However, as with all simulation models,
one can only evaluate the effectiveness of a pre-specified policy rather than develop new ones. It
is the traditional question of "What If?" versus "What's Best?".
Network Design Methods
As the very name suggests, these methods determine the location of production, stocking, and
sourcing facilities, and paths the product(s) take through them. Such methods tend to be large
scale, and used generally at the inception of the supply chain. The earliest work in this area,
although the term "supply chain" was not in vogue, was by Geoffrion and Graves [1974]. They
introduce a multicommodity logistics network design model for optimizing annualized finished
product flows from plants to the DC's to the final customers. Geoffrion and Powers [1993] later
give a review of the evolution of distribution strategies over the past twenty years, describing
how the descendants of the above model can accommodate more echelons and cross commodity
detail.
Breitman and Lucas [1987] attempt to provide a framework for a comprehensive model of a
production-distribution system, "PLANETS", that is used to decide what products to produce,
where and how to produce it, which markets to pursue and what resources to use. Parts of this
ambitious project were successfully implemented at General Motors.
Cohen and Lee [1985] develop a conceptual framework for manufacturing strategy analysis,
where they describe a series of stochastic sub- models, that considers annualized product flows
from raw material vendors via intermediate plants and distribution echelons to the final
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customers. They use heuristic methods to link and optimize these sub- models. They later give
an integrated and readable exposition of their models and methods in Cohen and Lee [1988].
Cohen and Lee [1989] present a normative model for resource deployment in a global
manufacturing and distribution network. Global after-tax profit (profit-local taxes) is maximized
through the design of facility network and control of material flows within the network. The cost
structure consists of variable and fixed costs for material procurement, production, distribution
and transportation. They validate the model by applying it to analyze the global manufacturing
strategies of a personal computer manufacturer.
Finally, Arntzen, Brown, Harrison, and Trafton [1995] provide the most comprehensive
deterministic model for supply chain management. The objective function minimizes a
combination of cost and time elements. Examples of cost elements include purchasing,
manufacturing, pipeline inventory, transportation costs between various sites, duties, and taxes.
Time elements include manufacturing lead times and transit times. Unique to this model was the
explicit consideration of duty and their recovery as the product flowed through different
countries. Implementation of this model at the Digital Equipment Corporation has produced
spectacular results --- savings in the order of $100 million dollars.
Clearly, these network-design based methods add value to the firm in that they lay down the
manufacturing and distribution strategies far into the future. It is imperative that firms at one
time or another make such integrated decisions, encompassing production, location, inventory,
and transportation, and such models are therefore indispensable. Although the above review
shows considerable potential for these models as strategic determinants in the future, they are
not without their shortcomings. Their very nature forces these problems to be of a very large
scale. They are often difficult to solve to optimality. Furthermore, most of the models in this
category are largely deterministic and static in nature. Additionally, those that consider
stochastic elements are very restrictive in nature. In sum, there does not seem to yet be a
comprehensive model that is representative of the true nature of material flows in the supply
chain.

Rough Cut Methods

These models form the bulk of the supply chain literature, and typically deal with the more
operational or tactical decisions. Most of the integrative research (from a supply chain context)
in the literature seem to take on an inventory management perspective. In fact, the term "Supply
Chain" first appears in the literature as an inventory management approach. The thrust of the
rough cut models is the development of inventory control policies, considering several levels or
echelons together. These models have come to be known as "multi-level" or "multi-echelon"
inventory control models. For a review the reader is directed to Vollman et al. [1992].
Multi-echelon inventory theory has been very successfully used in industry. Cohen et al. [1990]
describe "OPTIMIZER", one of the most complex models to date --- to manage IBM's spare
parts inventory. They develop efficient algorithms and sophisticated data structures to achieve
large scale systems integration.
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Although current research in multi-echelon based supply chain inventory problems shows
considerable promise in reducing inventories with increased customer service, the studies have
several notable limitations. First, these studies largely ignore the production side of the supply
chain. Their starting point in most cases is a finished goods stockpile, and policies are given to
manage these effectively. Since production is a natural part of the supply chain, there seems to
be a need with models that include the production component in them. Second, even on the
distribution side, almost all published research assumes an arborescence structure, i. e. each site
receives re-supply from only one higher level site but can distribute to several lower levels.
Third, researchers have largely focused on the inventory system only. In logistics-system theory,
transportation and inventory are primary components of the order fulfillment process in terms of
cost and service levels. Therefore, companies must consider important interrelationships among
transportation, inventory and customer service in determining their policies. Fourth, most of the
models under the "inventory theoretic" paradigm are very restrictive in nature, i.e., mostly they
restrict themselves to certain well known forms of demand or lead time or both, often quite
contrary to what is observed.
The preceding sections are a selective overview of the key concepts in the supply chain
literature. Following is a list of recommended reading for a quick introduction to the area
Idea
The definition, put forward by an American professional association, is that Supply Chain
Management encompasses the planning and management of all activities involved in sourcing,
procurement, conversion, and logistics management activities. It also includes the crucial
components of coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, Supply Chain
Management integrates supply and demand management within and across companies. More
recently, the loosely coupled, self-organizing network of businesses that cooperates to provide
product and service offerings has been called the Extended Enterprise.[1]
Supply Chain Management can also refer to Supply chain management software which are tools
or modules used in executing supply chain transactions, managing supplier relationships and
controlling associated business processes.
Supply chain event management (abbreviated as SCEM) is a consideration of all possible
occurring events and factors that can cause a disruption in a supply chain. With SCEM possible
scenarios can be created and solutions can be planned.
Supply Chain Management Problems
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.

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 • Distribution Strategy: Including 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, including TOFC and
COFC; 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 coordinated well
together in order to achieve the least total logistics cost. Trade-offs exist that 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 and other processes through the supply chain to share
valuable information, including demand signals, forecasts, inventory, transportation, and
potential collaboration etc.
• Inventory Management: Quantity and location of inventory including raw materials,
work-in-progress (WIP) and finished goods.
• Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds
across entities within the supply chain. The way supply chain is designed has significant
implications on companies working capital, and can have important consequences
especially in leveraged and distressed companies. [2].
Supply chain execution is managing and coordinating the movement of materials, information
and funds across the supply chain. The flow is bi-directional.
Activities/functions
Supply chain management is a cross-function approach to manage the movement of raw
materials into an organization, certain aspects of the internal processing of materials into
finished goods, and then the movement of finished goods out of the organization toward the end-
consumer. As organizations strive to focus on core competencies and becoming more flexible,
they have reduced their ownership of raw materials sources and distribution channels. These
functions are increasingly being outsourced to other entities that can perform the activities better
or more cost effectively. The effect is to increase the number of organizations involved in
satisfying customer demand, while reducing management control of daily logistics operations.
Less control and more supply chain partners led to the creation of supply chain management
concepts. The purpose of supply chain management is to improve trust and collaboration among
supply chain partners, thus improving inventory visibility and improving inventory velocity.

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Several models have been proposed for understanding the activities required to manage material
movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Council. Another model is the SCM Model
proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped
into strategic, tactical, and operational levels of activities.
Strategic
• Strategic network optimisation, including the number, location, and size of warehousing,
distribution centers, and facilities
• Strategic partnership with suppliers, distributors, and customers, creating communication
channels for critical information and operational improvements such as cross docking,
direct shipping, and third-party logistics
• Product life cycle management, so that new and existing products can be optimally
integrated into the supply chain and capacity management
• Information Technology infrastructure, to support supply chain operations
• Where-to-make and what-to-make-or-buy decisions
• Aligning overall organizational strategy with supply strategy
Tactical
• Sourcing contracts and other purchasing decisions.
• Production decisions, including contracting, scheduling, and planning process definition.
• Inventory decisions, including quantity, location, and quality of inventory.
• Transportation strategy, including frequency, routes, and contracting.
• [Benchmarking] of all operations against competitors and implementation of best
practices throughout the enterprise.
• Milestone payments
• Focus on customer demand.
Operational
• Daily production and distribution planning, including all nodes in the supply chain.
• Production scheduling for each manufacturing facility in the supply chain (minute by
minute).
• Demand planning and forecasting, coordinating the demand forecast of all customers and
sharing the forecast with all suppliers.
• Sourcing planning, including current inventory and forecast demand, in collaboration
with all suppliers.

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 • Inbound operations, including transportation from suppliers and receiving inventory.
• Production operations, including the consumption of materials and flow of finished
goods.
• Outbound operations, including all fulfillment activities, warehousing and transportation
to customers.
• Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.
Supply chain management
Organizations increasingly find that they must rely on effective supply chains, or networks, to
successfully compete in the global market and networked economy.[3] 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).
In the 21st century, changes in the business environment have contributed to the development of
supply chain networks. First, as an outcome of globalization and the proliferation of
multinational companies, joint ventures, strategic alliances and business partnerships, there were
found to be significant success factors, following the earlier "Just-In-Time", "Lean
Manufacturing" and "Agile Manufacturing" practices.[4] Second, technological changes,
particularly the dramatic fall in information communication costs, which are a significant
component of transaction costs, have led to changes in coordination among the members of the
supply chain network (Coase, 1998).
Many researchers have recognized these kinds of supply network structures as a new
organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual
Corporation", "Global Production Network", and "Next Generation Manufacturing System".[5] In
general, such a structure can be defined as "a group of semi-independent organizations, each
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with their capabilities, which collaborate in ever-changing constellations to serve one or more
markets in order to achieve some business goal specific to that collaboration" (Akkermans,
2001).
The security management system for supply chain is described in ISO/IEC 28000 and ISO/IEC
28001 and related standards published jointly by ISO and IEC.
Developments in Supply Chain Management
Six major movements can be observed in the evolution of supply chain management studies:
Creation, Integration, and Globalization (Lavassani et al., 2008a), Specialization Phases One and
Two, and SCM 2.0.
1. Creation Era
The term supply chain management was first coined by an American industry consultant in the
early 1980s. However the concept of supply chain in management, was of great importance long
before in the early 20th century, especially by the creation of the assembly line. The
characteristics of this era of supply chain management include the need for large scale changes,
re-engineering, downsizing driven by cost reduction programs, and widespread attention to the
Japanese practice of management.
2. Integration Era
This era of supply chain management studies was highlighted with the development of
Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the
introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop
into the 21st century with the expansion of internet-based collaborative systems. This era of SC
evolution is characterized by both increasing value-added and cost reduction through integration.
3. Globalization Era
The third movement of supply chain management development, globalization era, can be
characterized by the attention towards global systems of supplier relations and the expansion of
supply chain over national boundaries and into other continents. Although the use of global
sources in the supply chain of organizations can be traced back to several decades ago (e.g. the
oil industry), it was not until the late 1980s that a considerable number of organizations started
to integrate global sources into their core business. This era is characterized by the globalization
of supply chain management in organizations with the goal of increasing competitive advantage,
creating more value-added, and reducing costs through global sourcing.
4. Specialization Era—Phase One—Outsourced Manufacturing and Distribution
In the 1990s industries began to focus on “core competencies” and adopted a specialization
model. Companies abandoned vertical integration, sold off non-core operations, and outsourced
those functions to other companies. This changed management requirements by extending the
supply chain well beyond the four walls and distributing management across specialized supply
chain partnerships.

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This transition also re-focused the fundamental perspectives of each respective organization.
OEMs became brand owners that needed deep visibility into their supply base. They had to
control the entire supply chain from above instead of from within. Contract manufacturers had to
manage bills of material with different part numbering schemes from multiple OEMs and
support customer requests for work -in-process visibility and vendor-managed inventory (VMI).
The specialization model creates manufacturing and distribution networks composed of multiple,
individual supply chains specific to products, suppliers, and customers who work together to
design, manufacture, distribute, market, sell, and service a product. The set of partners may
change according to a given market, region, or channel, resulting in a proliferation of trading
partner environments, each with its own unique characteristics and demands.
5. Specialization Era—Phase Two—Supply Chain Management as a Service
Specialization within the supply chain began in the 1980s with the inception of transportation
brokerages, warehouse management, and non asset based carriers and has matured beyond
transportation and logistics into aspects of supply planning, collaboration, execution and
performance management.
At any given moment, market forces could demand changes within suppliers, logistics providers,
locations, customers and any number of these specialized participants within supply chain
networks. This variability has significant effect on the supply chain infrastructure, from the
foundation layers of establishing and managing the electronic communication between the
trading partners to the more-complex requirements, including the configuration of the processes
and work flows that are essential to the management of the network itself.
Supply chain specialization enables companies to improve their overall competencies in the
same way that outsourced manufacturing and distribution has done; it allows them to focus on
their core competencies and assemble networks of best in class domain specific partners to
contribute to the overall value chain itself – thus increasing overall performance and efficiency.
The ability to quickly obtain and deploy this domain specific supply chain expertise without
developing and maintaining an entirely unique and complex competency in house is the leading
reason why supply chain specialization is gaining popularity.
Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has
taken root in transportation and collaboration categories most dominantly. This has progressed
from the Application Service Provider (ASP) model from approximately 1998 through 2003 to
the On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS)
model we are currently focused on today.
6. Supply Chain Management Building off of globalization and specialization, SCM 2.0 has
been coined to describe both the changes within the supply chain itself as well as the evolution
of the processes, methods and tools that manage it in this new "era".
Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to increase
creativity, information sharing, and collaboration among users. At its core, the common attribute
that Web 2.0 brings is it helps us navigate the vast amount of information available on the web

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to find what we are looking for. It is the notion of a usable pathway. SCM 2.0 follows this notion
into supply chain operations. It is the pathway to SCM results – the combination of the
processes, methodologies, tools and delivery options to guide companies to their results quickly
as the complexity and speed of the supply chain increase due to the effects of global
competition, rapid price fluctuations, surging oil prices, short product life cycles, expanded
specialization, near/far and off shoring, and talent scarcity.
SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to
quickly manage future change for continuous flexibility, value and success. This is delivered
through competency networks composed of best of breed supply chain domain expertise to
understand which elements, both operationally and organizationally, are the critical few that
deliver the results as well as the intimate understanding of how to manage these elements to
achieve desired results, finally the solutions are delivered in a variety of options as no-touch via
business process outsourcing, mid-touch via managed services and software as a service (SaaS),
or high touch in the traditional software deployment model.Supply chain business process
integration
Successful SCM requires a change from managing individual functions to integrating activities
into key supply chain processes. An example scenario: the purchasing department places orders
as requirements become appropriate. Marketing, responding to customer demand, communicates
with several distributors and retailers as it attempts to satisfy this demand. Shared information
between supply chain partners can only be fully leveraged through process integration.
Supply chain business process integration involves collaborative work between buyers and
suppliers, joint product development, common systems and shared information. According to
Lambert and Cooper (2000) operating an integrated supply chain requires continuous
information flow. However, in many companies, management has reached the conclusion that
optimizing the product flows cannot be accomplished without implementing a process approach
to the business. The key supply chain processes stated by Lambert (2004) [6] are:
• Customer relationship management
• Customer service management
• Demand management
• Order fulfillment
• Manufacturing flow management
• Supplier relationship management
• Product development and commercialization
• Returns management
Much has been written about demand management. Best in Class companies have similar
characteristics. They include the following: a) Internal and external collaboration b) Lead time
reduction initiatives c) Tighter feedback from customer and market demand d) Customer level
forecasting
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One could suggest other key critical supply business processes combining these processes stated
by Lambert such as:
a. Customer service management
b. Procurement
c. Product development and commercialization
d. Manufacturing flow management/support
e. Physical distribution
f. Outsourcing/partnerships
g. Performance measurement
a) Customer service management process
Customer Relationship Management concerns the relationship between the organization and its
customers. Customer service provides the source of customer information. It also provides the
customer with real-time information on promising dates and product availability through
interfaces with the company's production and distribution operations. Successful organizations
use following steps to build customer relationships:
• determine mutually satisfying goals between organization and customers
• establish and maintain customer rapport
• produce positive feelings in the organization and the customers
b) Procurement process
Strategic plans are developed with suppliers to support the manufacturing flow management
process and development of new products. In firms where operations extend globally, sourcing
should be managed on a global basis. The desired outcome is a win-win relationship, where both
parties benefit, and reduction times in the design cycle and product development are achieved.
Also, the purchasing function develops rapid communication systems, such as electronic data
interchange (EDI) and Internet linkages to transfer possible requirements more rapidly.
Activities related to obtaining products and materials from outside suppliers requires performing
resource planning, supply sourcing, negotiation, order placement, inbound transportation,
storage, handling and quality assurance, many of which include the responsibility to coordinate
with suppliers in scheduling, supply continuity, hedging, and research into new sources or
programs.
c) Product development and commercialization
Here, customers and suppliers must be united into the product development process, thus to
reduce time to market. As product life cycles shorten, the appropriate products must be
developed and successfully launched in ever shorter time-schedules to remain competitive.
According to Lambert and Cooper (2000), managers of the product development and
commercialization process must:

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 1. coordinate with customer relationship management to identify customer-articulated
needs;
2. select materials and suppliers in conjunction with procurement, and
3. develop production technology in manufacturing flow to manufacture and integrate into
the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process is produced and supplies products to the distribution channels based
on past forecasts. Manufacturing processes must be flexible to respond to market changes, and
sssssmust accommodate mass customization. Orders are processes operating on a just-in-time
(JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to
shorter cycle times, meaning improved responsiveness and efficiency of demand to customers.
Activities related to planning, scheduling and supporting manufacturing operations, such as
work-in-process storage, handling, transportation, and time phasing of components, inventory at
manufacturing sites and maximum flexibility in the coordination of geographic and final
assemblies postponement of physical distribution operations.
e) Physical distribution
This concerns movement of a finished product/service to customers. In physical distribution, the
customer is the final destination of a marketing channel, and the availability of the
product/service is a vital part of each channel participant's marketing effort. It is also through the
physical distribution process that the time and space of customer service become an integral part
of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers,
wholesalers, retailers).
f) Outsourcing/partnerships
This is not just outsourcing the procurement of materials and components, but also outsourcing
of services that traditionally have been provided in-house. The logic of this trend is that the
company will increasingly focus on those activities in the value chain where it has a distinctive
advantage and everything else it will outsource. This movement has been particularly evident in
logistics where the provision of transport, warehousing and inventory control is increasingly
subcontracted to specialists or logistics partners. Also, to manage and control this network of
partners and suppliers requires a blend of both central and local involvement. Hence, strategic
decisions need to be taken centrally with the monitoring and control of supplier performance and
day-to-day liaison with logistics partners being best managed at a local level.
g) Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration to
market share and profitability. By taking advantage of supplier capabilities and emphasizing a
long-term supply chain perspective in customer relationships can be both correlated with firm
performance. As logistics competency becomes a more critical factor in creating and
maintaining competitive advantage, logistics measurement becomes increasingly important
because the difference between profitable and unprofitable operations becomes more narrow.
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A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance
measurement realized improvements in overall productivity. According to experts internal
measures are generally collected and analyzed by the firm including
1. Cost
2. Customer Service
3. Productivity measures
4. Asset measurement, and
5. Quality.
External performance measurement is examined through customer perception measures and
"best practice" benchmarking, and includes 1) customer perception measurement, and 2) best
practice benchmarking. Components of Supply Chain Management are 1. Standardization 2.
Postponement 3. Customization
Theories of Supply Chain Management
Currently there exists a gap in the literature available in the area of supply chain management
studies, on providing theoretical support for explaining the existence and the boundaries of
supply chain management. Few authors such as Halldorsson, et al. (2003), Ketchen and Hult
(2006) and Lavassani, et al. (2008b) had tried to provide theoretical foundations for different
areas related to supply chain with employing organizational theories. These theories includes:
• Resource-based view (RBV)
• Transaction Cost Analysis (TCA)
• Knowledge-based view (KBV)
• Strategic Choice Theory (SCT)
• Agency theory (AT)
• Institutional theory (InT)
• Systems Theory (ST)
• Network Perspective (NP)
Supply chain sustainability
Supply chain sustainability is a business issue affecting an organisation’s supply chain or
logistics network and is frequently quantified by comparison with SECH ratings. SECH ratings
are defined as social, ethical, cultural and health footprints. Consumers have become more
aware of the environmental impact of their purchases and companies’ SECH ratings and, along
with non-governmental organisations ([NGO]s), are setting the agenda for transitions to
organically-grown foods, anti-sweatshop labour codes and locally-produced goods that support
independent and small businesses. Because supply chains frequently account for over 75% of a

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company’s carbon footprint[7] many organisations are exploring how they can reduce this and
thus improve their SECH rating.

Components of Supply Chain Management

Integration
The management components of SCM
The SCM components are the third element of the four-square circulation framework. The level
of integration and management of a business process link is a function of the number and level,
ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan,
1985). Consequently, adding more management components or increasing the level of each
component can increase the level of integration of the business process link. The literature on
business process re-engineering,[8] buyer-supplier relationships,[9] and SCM[10] suggests various
possible components that must receive managerial attention when managing supply
relationships. Lambert and Cooper (2000) identified the following components which are:
• Planning and control
• Work structure
• Organization structure
• Product flow facility structure
• Information flow facility structure
• Management methods
• Power and leadership structure
• Risk and reward structure
• Culture and attitude
However, a more careful examination of the existing literature[11] will lead us to a more
comprehensive structure of what should be the key critical supply chain components, the
"branches" of the previous identified supply chain business processes, that is, what kind of
relationship the components may have that are related with suppliers and customers accordingly.
Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to
the highest level of joint achievement (Bowersox and Closs, 1996). A primary level channel
participant is a business that is willing to participate in the inventory ownership responsibility or
assume other aspects of financial risk, thus including primary level components (Bowersox and
Closs, 1996). A secondary level participant (specialized), is a business that participates in
channel relationships by performing essential services for primary participants, thus including
secondary level components, which are in support of primary participants. Third level channel

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participants and components that will support the primary level channel participants, and which
are the fundamental branches of the secondary level components, may also be included.
Consequently, Lambert and Cooper's framework of supply chain components does not lead us to
the conclusion about what are the primary or secondary (specialized) level supply chain
components (see Bowersox and Closs, 1996, p.g. 93). That is, what supply chain components
should be viewed as primary or secondary, how these components should be structured in order
to have a more comprehensive supply chain structure, and to examine the supply chain as an
integrative one (See above sections 2.1 and 3.1).
Reverse Supply Chain Reverse logistics is the process of planning, implementing and
controlling the efficient, effective inbound flow and storage of secondary goods and related
information opposite to the traditional supply chain direction for the purpose of recovering value
or proper disposal. Reverse logistics is also referred to as "Aftermarket Customer Services". In
other words, anytime money is taken from a company's Warranty Reserve or Service Logistics
budget, that is a Reverse Logistics operation.

Global Supply Chain Management

Corporerate controlling for global value chain

As we can recognize from the developing of supply chain management theory, it is more and
more involved in globalization and multi-country supply chain. This gives the challenge not only
on supply chain level (quantity oriented) and also value chain level (value oriented.) Supply and
value chain trends can be concluded as following:
Supply and Value Chain Trends
• Globalization
• Increased cross border sourcing
• Collaboration for parts of value chain with low-cost providers
• Shared Service Centers for logistical and administrative functions
• Increasingly global operations require increasingly global coordination and planning to
achieve global optimums
• Complex of problems comprises also midsized companies to an increasing degree

This gives lots of benefits to manufacturer because it will be possible to have bigger lot size,
possibility to get choices of lower taxes, and recognizing better environment (culture,
infrastructure, special tax zone, sophisticated OEM) for their products. Meanwhile, on top of the
problems we recogniz in supply chain management, we are going to face much more challenging
when the scope of supply chain is global. Because the supply chain is given the circumstance of
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bigger scope, the lead time is much longer. Furthermore, there are more issues involved such as
multi-currency, different policy and different laws. The consequent problems includes:1.
different currencies and valuation in different country; 2. different tax laws(Tax Efficient Supply
Chain Management[12]); 3. different trading protocols; 4. lack of transparency of cost and profit.

Logistics

Maintain Your Competitive Advantage!

In an already crowded and dynamic global market, it is harder for business to maintain its
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competitive edge and to continue to meet the demanding and sophisticated needs of its
customers.

Many companies, big and small, have turned to Operations Research/Management Science
(OR/MS) solutions and tools to raise their profit margin and competitiveness. These decision
support solutions have enabled them to make quicker, better and coherent decisions at both
strategic and operational levels. Companies that had wisely invested on such solutions achieved
significant reduction in operating costs, improved service quality and higher customer retention.
All these translate to higher productivity and bigger returns on the company’s assets.

Integrated Logistics Management

The core enabling technology (besides IT) to bring about integrated logistics is operations
research (OR). OR is the application of mathematical methods such as linear programming,
game theory, statistical analysis and simulation to solve real world (complex) management
problems. It always take a total systems and total cost perspective of the management problem
so that the solution does not inadvertently create problems in other areas or that savings in one
area does not worsen the overall company’s performance.

Decision Support Systems (DSSs) are applications embodied with OR technologies to solve
specialised problems. These systems have, time and again, proven to produced significantly
better solutions to structured problems and in a much shorter time than those produced by the
most experienced planner. Coupled with IT applications, it provide a powerful system to tackle
and integrate the many aspects of logistics planning.

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Supply Chain Management

Supply chain management is about suppliers, manufacturers, third party logistics providers,
wholesalers and retailers sharing information so that goods move faster through the system.
However, what is usually lacking is an overall global or regional strategic plan that integrates the
activities of the many players. A strategic plan that ensure that the overall cost of delivering
goods to customers is the lowest possible while maintaining the desired service level.

Different OR techniques (such as optimisation and simulation technologies) lend themselves

readily for addressing issues like: the appropriate product specialisation and production capacity
of the plants; location and size of distribution centres; assignment of customers to be serviced by
distribution centres; mode of transportation for every link in the supply chain; optimal inventory
level to meet desired service level. The end result is a globally optimised supply chains that
perform robustly under foreseeable future scenarios, thus avoiding costly infrastructure changes.

Tactical Transportation

While supply chain design deals with the flow and stocking of goods, transportation
optimisation examines the shipment (flow) process itself. The typical transportation optimiser
will search for opportunities to aggregate compatible orders or splitting orders to fit the
transportation media (e.g. containers), identify pooling points to consolidate orders for long haul
using larger & hence cheaper media and routing of pick-up and drop-off orders to increase
backhaul. The judicious use of OR to optimise shipment plan has been generating large savings
in transportation. 10-35% reduction in freight expenses had been achieved through optimal
aggregation/ consolidation, multi-modal multi-leg carrier selection, rating and routing of freight
orders.

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Tactical Storage and Warehouse

Warehouses are long term investment and must be designed to grow with the business.
Dedicated simulation software is able to model the impact of equipment selection, layout and
work processes to derive the optimal design for the warehouse facilities. Other OR tools can also
generate the optimal storage arrangement for efficient retrieval and turnover of stocks. By
studying the range of business and cost scenarios over the planning horizon, the logistics planner
would be able to ensure that the warehouse is optimally designed for its anticipated range of
business scenarios.

Packing & Stuffing

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Typical system that generates pick list for each vehicle do not necessary know if all items could
fit into the vehicle. The discreteness of items will inevitably result in some space that cannot be
used. Hence, knowing how items should be packed or stuffed so that capacity is well used is
another important cost saver. The load planning software can be integrated with the routing
software to generate an optimal stuffing plan that considers compatibility, stackability and
unloading sequence. Planners are thus assured that the routes and loading plans would both
work.
Operational Fleet Routing & Loading

The routes derived in transportation optimisation are mainly long-haul. For short haul deliveries,
there are ready solutions, that are tightly integrated to warehouse management systems, to
efficiently route fleets of vehicles and vessels and plan picking and loading. Stipulated time
windows for pick-ups and deliveries and vehicular weight and spatial capacities would be
respected, as will constraints such as delivery within x minutes upon pickup (useful for
perishable goods). Time required at various stops - in terms of fixed time to park and variable
time dependent on amount to be loaded or off-loaded - can be specified. Travel speeds along
various types/zones of roads can be stipulated for both peak and non-peak hours or piped in
either from GPS systems mounted on the vehicles or real-time traffic information services. The
scheduled arrival and departure times for each stop can thus be worked out quite accurately.
Routes can be generated dynamically and ad hoc backhaul or other opportunities can also be
assigned to the most suitable vehicle. Managers can view over the web the progress of
deliveries. The benefits of operational fleet routing include 5-25% reduction in fleet operating
cost and improved customer service with better estimated arrival time.

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Vendor Managed Inventory

Vendor managed inventory, coordinated by an integrated logistics system, allows inventory to

be optimised together with transportation. By knowing the product value as well as storage
capacity at each site, and routinely collecting information on consumption rate, current inventory
levels, forecasted demand and status of shipments, the system can optimise the right quantities
of replenishments to be sent at the right time to ensure that service levels are maintained while
minimising cost of inventory and transportation.

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CONCEPT OF SUPPLY CHAIN MANGEMENT

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Vijay pratap singh
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Rachna Electricals
Document No: M-REPL
Pvt Ltd, Delhi
Design
Control

As the organization
is not involved in
original design
activities, the
provision of ISO 9002
are applicable which
exclude design &
development
requirements.
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Rachna Electricals
Pvt Ltd, Delhi
Document & Data
Control

4.5.1 PURPOSE To ensure a system to control all documents and

data relating to Quality system in the organization.
4.5.2 SCOPE Applicable to all documents of internal & external
origin relating to Quality system in the organization.
4.5.3 RESPONSIBI M.R. is responsible for ensuring compliance to the
LITY system. He is also responsible for maintaining
master list of documents, master copies of all
current and obsolete documents & issue of all
documents.
4.5.4 DESCRIPTIO Procedure for Documents & Data control exist,
N which ensure that:-
All documents of internal origin as required shall be
i) prepared in consultation with respective Deptt.
Incharge & got reviewed and approved before its
issue, by the designated authorities –as detailed in
the procedure. However this Q.M. is approved by
MD

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 ii) A master list is maintained by M.R. to identify the
documents and their current revision status .A
similar list is maintained for external origin
iii) documents.
Any change required in any document of internal
origin is made with the approval of concerned
Approving Authority. The nature of change is
suitably communicated while issuing any changed
document. All documents of external origin of use
under
Quality system are identified by M.R. and kept
v) current by appropriate interaction with issuing
authority.

A system exists for issue of appropriate documents

vi) on need to know basis, to all locations where
operations essential to the effective functioning of
vii) the Quality system are performed
All invalid/obsolete documents are removed from all
points of use.
Copies of Obsolete documents are retained for
legal/knowledge preservation purposes, suitably
identified by M.R.

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Vijay pratap singh
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Vijay pratap singh
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Rachna Electricals
Pvt Ltd, Delhi
PURCHASING

4.6.1 PURPOSE To establish and maintain a system to ensure

that purchased product/service conforms to
specified requirements
4.6.2 SCOPE Applicable to purchased product/ including Raw
materials/components/ for finished product
which directly affect the Quality of product
manufactured by the organization.
4.6.3 RESPONSIBILITY
Purchase In charge & MD Are Overall
Responsible
4.6.4 DESCRIPTION The procedures for purchasing ensure that:-
i) A list of approved vendors selected on the basis
of their ability to meet the purchase
specifications is established, maintained and
updated for all identified items &. Review of
performance of vendors is carried out
periodically.
ii) Vendor wise records of performance are
maintained for the approved vendors as detailed
in relevant procedures.
iii) Based on the system of periodic assessment of
vendor's performance, appropriate controls are
exercised over vendors, keeping in view the
factors Such as the type of product/service and
its availability.

iv) The purchase orders contain or refer to the

relevant purchase specifications/Purchasing
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 v) data.
Where verification of purchased product is
required to be made at vendor's premises, the
verification arrangement and the method of
product release is specified in Purchase order.
However no verification of purchased product by
customer is applicable.

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Rachna Electricals
Pvt Ltd, Delhi CONTROL OF
CUSTOMER
SUPPLIED PRODUCTS

As the customer
does not provide
any product for
incorporation in
the final
Product for
despatch, the
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 provisions of this
clause are not
applicable.

Rachna Electricals
Pvt Ltd, Delhi

PRODUCT
IDENTIFICATION
& TRACEABILITY

4.8.1 PURPOSE To establish and maintain a system for identifying

the product and maintaining its traceability by
suitable means appropriately.
4.8.2 SCOPE Applicable to products at all stages from receipt of
raw material/components to despatch of finished
product.
4.8.3 RESPONSIBIL Concerned production incharge is responsible for
ITY maintaining identification and traceability at all
stages from receipt to despatch.
4.8.4 DESCRIPTION The procedure for product identification &
traceability ensures that:-
i) Incoming Raw material/components are identified
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 and are stored at designated locations.
ii) Concerned Incharge production ensures
maintenance of identification & traceability during
process through ,Products name, stamp & marking

iii) For identification various components & products

identification plates are affixed on them specific
details covered in relevant procedure.
iv) The traceability of the finial product is maintained
through its rate of manufacturing

Rachna Electricals
Pvt Ltd, Delhi
PROCESS CONTROL

4.9.1 PURPOSE To plan the production processes & ensure that they
operate under controlled conditions.
4.9.2 SCOPE Applicable to processes relating to production &
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 despatch of Electrical Home Appliances by Rachna
Electricals Pvt. Ltd.
4.9.3 RESPONSIBI Concerned Incharge (production) is responsible for
LITY ensuring compliance to the system for all stages of
processing to despatch. Supervisor (maintenance) is
responsible for ensuring compliance to the system of
maintenance for all identified M/C/equipment.
4.9.4 DESCRIPTIO The system for process control ensures that all
N Production processes are identified & planned. The
Processes are carried out under controlled conditions
which include the following :-
Quality Plans.
i) Documented Work Instructions defining the manner of
ii) Production, equipment to be used, are made available
at appropriate location.
Use of appropriate resources including plant,
iii) machinery and trained personnel with appropriate
working environment.
Compliance to the documented Work Instructions,
iv) Procedures and other specified requirements is
ensured.
v) Suitable maintenance of equipment’s to ensure
continuing process capability. Good housekeeping
practices for ensuring conducive work atmosphere.
vi) The criteria of workmanship which is stipulated in the
or documented work instructions.

vii) Processes are carried out by experienced operators

under
s constant monitoring, with specified control parameters,
viii) where applicable
Following processes have been identified as special
processes:
a) Gas & Spot Welding b) Annealing
c) Phosphating d) Paint Baking
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 These processes are operated by an experienced
operators/works qualified for the process by virtue of
having atleast one year's experience on respective
m/c operation. These processes are pre-qualified with
identified controlled parameters.

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Rachna Electricals Pvt
Ltd, Delhi INSPECTION & TESTING

4.10.1 PURPOSE To ensure that required Inspection & Testing of

product is carried out at all stages ensuring that the
end product conforms to specified requirements -
4.10.2 SCOPE Applicable to product at receipt, inprocess and final
inspection stages
4.10.3 RESPONSIBI
LITY Incharge (LAB) for all incoming materials & inprocess
i) and final products with the help of lab engineer.

4.10.4 DESCRIPTIO The procedures for inspection & testing ensure that:-
N All incoming critical materials are inspected /tested as
i) per different criteria. Due consideration has been
given to the control exercised at vendor's end for
deciding the amount & nature of inspection, in the
Quality plans for receipt inspection.

Under normal situation, incoming product is not used

ii) or processed until it has been inspected as per quality
plan for receipt and inspection report indicating
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 conformity is available . No product is released for
urgent production/booking without completion of
verification Inspection/Testing at incoming stage.
Inprocess product is tested/inspected as per the
iii) Procedure & as per quality plans.
Product is held back at each stage till the required
iv) inspection is completed at that stage and results have
been authorized. Where required by quality plan,
recording of inspection/results is done.
Final Inspection is carried out as per inspection
v) procedure to complete the evidence of product
conformance to specified requirements for ISI mark
products the inspection, testing & the recording is
carried out as per the STI
No material is released from final inspection stage to
vi) until desired testing at all stages is complete and
verified as acceptable.
No lot is dispatched until its Inspection as per the
vii) quality plan criteria has been satisfactorily completed
& results have been authorized.
Records are maintained to provide evidence that the
viii) product is inspected & tested and has Passed / Failed
according to defined acceptance criteria.

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Rachna Electricals
Pvt Ltd, Delhi
SERVICING

As the organization does

not undertake regular
after sale servicing of
products provision of This
clause of ISO-9002 is not
applicable. The
complaints received from
customers are attended
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 to promptly through
undertaking minor
repairs where required.
This has been covered in
Procedure for Resolution
of customer complaint.

Rates of job work orders

RAJAN PLATERS(ELECTROPLATING)
s.no. Item Cost(in Rs./unit)
1. Immersion heater 4.00
2. Ticona element with 5.00
pocket
3. Cup type element 4.00
4. Kettle element 4.00
5. Midget element 4.00
6. Sterlizer 4.00
7. Ass. Plate 7.00
(1.5 ltr.-10ltr.)
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 8. Ass. Plate 13.00
(15-35ltr.)

9. Ass. Plate(Supreme) 20.00

15l &25l
10. B.T.H.III Rod 8.00
11. B.T.H.II Rod 5.00
12. Midget with pocket 5.00
13. Otg grill 8.00
14. Otg elemnt 4.50
polish(buff)
15. Ass. Plate 100ltr. 25.00
16. Ass. Plate 50ltr. 15.00
17. Safety valve horiz. 1.00
18. Ass. Plate(Supreme) 25.00
35l &50l
19. Tikona d/rod 6.00

J.E. ENTERPRISES
(power pressing of brass circle/sheet)
1. Ass. Plate 6” 1.25
2. Ass. Plate mini /6 1.00
ltr.
3. Katori (all type) 0.65
S.B. ENTERPRISES
1. Deep drawing of 6.00
copper circle
2. Deep drawing of 9.00
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 copper circle (long
size)

Rachna Electricals
Pvt Ltd, Delhi
PROCESS FLOW CHART

PROCESS FLOW CHART

BUSINESS DEVELOPMENT

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 ORDER BOOKING & REVIEW

PROCUREMENT & RECEIPT

INSPECTION & TESTING

STORAGE

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 PACKING PRODUCTS/
MATERIAL COMPONENTS

REPACKING

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 SKIN SHRINK STAMPING/
PACKING PACKING LABELLING

FINAL INSPECTION

DOCUMENTATION

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 LOADING & DESPATCH

SPECIFICATION-8

SECTION MATERIAL SPECIFICATION REMARKS

GEYSER Clamps As per sample on the sample board

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 Assembly plates As per sample on the sample board Pressed
Rubber Gasket As per sample on the sample board 9hole
Brass screw for As per sample on the sample board
assembly plate
M.S. bolt As per sample on the sample board
M.S. washer As per sample on the sample board
Brass Nut As per sample on the sample board
(EARTHING)
10mm
Brass Thimble As per sample on the sample board
(small/big)
Rivet (for CRC As per sample on the sample board
body)
Name plate for As per sample on the sample board
A.B.S.
Geyser
Name plate for As per sample on the sample board
CRC
Geyser
Element Name plate for As per sample on the sample board
immersion
Katori tikona As per sample on the sample board 2/3 hole
Katori sp. Hot As per sample on the sample board 2/3 hole
Katori oval As per sample on the sample board 2hole

SPECIFICATION-9

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SECTION MATERIAL SPECIFICATION REMARKS

Element Katori Cup As Per Sample On The Sample Board 2 hole Big
Type
Katori cup As per sample on the sample board 2/3 hole
type
Brass Top As per sample on the sample board 2/3/4/5 hole
1¼”
Brass Top As per sample on the sample board 2/3/4/5/6hole
1½”
Brass Top 2” As per sample on the sample board 6/7 hole
Brass As per sample on the sample board 6/7 hole
Top2½”
M.S. Top As per sample on the sample board 7 hole
2½”
Screw for As per sample on the sample board
immersion
Cup type As per sample on the sample board
washer
M –patti As per sample on the sample board
Fiber Patti As per sample on the sample board
GEYSER FUSE NUT 1. I.D. = 11.5mm+0.1mm For 15Ltr to
2. O.D. = 17.8mm+ 0.2mm 50Ltr
3. Material = Brass C.R.C. &
4. Melting Point = 90 º C +2 º C For 15Ltr,
25Ltr A.B.S.

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 -------DO----- 1. I.D. = 8.3mm+0.1mm For 6Ltr, 10Ltr
2. O.D. = 13.7+0.2mm C.R.C. &
3. Material = Brass A.B.S.
4. Melting Point = 90 ºC +2 º C
-------DO----- 1. I.D. = 11.7 +0.1mm For Horizontal
2. O.D. = 17.0 +0.2mm Geyser
3. Material = Brass
4. Melting = 98 ºC +2 º C

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 Dealer /Distributor Registration Form

1. Name Of The Firm :

2. Name Of The Owner(s) : 1)______________________________

2)_______________________________

3. Type Of Business :

4. Annual Turnover For Last 3 Years : 1)______________ 2)______________

3)_____________

5. Areas You Want To Cover :

(subject to availability)

6. What would be the sales target for next 3 years: 1)___________________

(ONLY FOR REMSON RANGE OF APPLIANCES)
2)___________________

3)___________________

__________________________________________________
Signature Of The Prop rioter /Director/Partner Of The Firm

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 RECEIPT INSPECTION FORM

1. ITEM : 4. SPECIFICATION REFERENCE:

2. LOT SIZE: 5. VENDOR:

3. SAMPLE SIZE:

TEST REQUIREMENTS:

A- E-
B- F-
C- G-
D- H-

Requirements Remarks
A B C D E F G H
samples

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PURCHASING INDENT

Please arrange for the material/component/spare parts as described below:

S.NO.________ DATE:-________

S.No. MATERIAL QUANTITY REQUIRED REQUIRE STOCK

DESCRIPTION ON D FOR BALANCE

Approved by.

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 SIGNATURE OF

G.M.

DEPTTRGE

To
Purchase In charge

SPECIFICATION-10

SECTION MATERIAL REMARKS

SPECIFICATION

Geyser Corrugated Length = 420mm For 6 ltr.

boxes Breadth =285mm Local
Height =295mm
No. of ply =5
Price in Rs. To be printed=1800
Colour of binding cloth- Red
Length = 420mm For 6 ltr.
Breadth =285mm Outer
Height =295mm
No. of ply =5
Price in Rs. To be printed =2640
Colour of binding cloth-Blue
Length =485mm For 10 ltr.
Breadth =310mm Local
Height =325mm
No. of ply =5
Price in Rs. To be printed = 1980
Colour of binding cloth-Red
Length=485mm For 10 ltr.
Breadth=310mm Local
Height=325mm
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 No. of ply=5
Price in Rs. To be printed=3000
Colour of binding cloth-Blue
Length=610mm For 15 ltr. SQ.
Breadth=385mm Local
Height=375mm
No. of ply=7
Price in Rs. To be printed = 2900
Colour of binding cloth-Red
Length=610mm For 15 ltr. SQ.
Breadth=410 Outer
Height=415mm
No. of ply=5
Price in Rs. To be printed = 3800
Colour of binding cloth-Blue
Length=530mm For 15 ltr. RD.
Breadth=360mm Local
Height=360mm
No. of ply=7
Price in Rs. To be printed =2900
Colour of binding cloth-Red

SPECIFICATION-11

SECTION MATERIAL REMARKS

SPECIFICATION

Geyser Corrugated Length=560mm For 15 Ltr.

boxes Breadth=380mm RD.
Height=410mm Outer
No. of ply=5
Price in Rs. To be print ed=3800
Colour of binding cloth-blue
Length=640mm For 25 Ltr.
Breadth=420mm SQ.
Height=415mm Local
No. of ply=7
Price in Rs. To be print ed=3200
Colour of binding cloth-Red

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 Length=685mm For 25 Ltr.
Breadth=465mm SQ.
Height=435mm OUTER
No. of ply=5
Price in Rs. To be printed = 4200
Colour of binding cloth-Blue
Length=670mm For 25 Ltr.
Breadth=365mm RD.
Height=360mm LOCAL
No. of ply=7
Price in Rs. To be print ed=3200
Colour of binding cloth-Red
Length=700mm For 25 Ltr.
Breadth=375mm RD.
Height=410mm OUTER
No. of ply=5
Price in Rs. To be printed=4200
Colour of binding cloth-blue
Length=670mm For 35 Ltr.
Breadth=365mm SQ.
Height=360mm Local
No. of ply=7
Price in Rs. To be print ed=3550
Colour of binding cloth-Red
Length = 760mm For 35 Ltr.
Breadth =460mm SQ.
Height = 490mm OUTER
No. of ply = 5
Price in Rs. To be printed =4690
Colour of binding cloth-Blue

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SPECIFICATION-12

SECTION MATERIAL REMARKS

SPECIFICATION

Geyser Corrugated Length =680mm For 35 ltr. RD.

boxes Breadth =385mm Local
Height =400mm
No. of ply =7
Price in Rs. To be printed = 3550
Colour of binding cloth-Red
Length =750mm For 35 ltr. RD.
Breadth =450mm OUTER
Height =450mm
No. of ply =5
Price in Rs. To be printed = 4690
Colour of binding cloth-Blue
Length = 950mm For 50 ltr.
Breadth =440mm Local
Height =455mm
No. of ply =7
Price in Rs. To be printed =4850
Colour of binding cloth-Red
Length=980mm For 50 ltr.
Breadth=470mm Outer
Height=490mm
No. of ply=7
Price in Rs. To be printed = 5890
Colour of binding cloth-Blue
Length =1070mm For 70 ltr.
Breadth =470mm Local
Height =480mm
No. of ply =9
Price in Rs. To be printed = 7480
Colour of binding cloth-Red
Length =1070mm For 70 ltr.
Breadth =470mm Outer
Height =480mm
No. of ply =9
Price in Rs. To be printed = 10200

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 Colour of binding cloth-blue
Length =430mm 6 ltr. Master
Breadth =310mm carton
Height =625mm
No. of ply =7
Price in Rs. To be printed = n.a.
Colour of binding cloth-n.a.

SPECIFICATION-13

SECTION MATERIAL REMARKS

SPECIFICATION

Geyser Corrugated Length =515mm 10 ltr master

boxes Breadth =335mm carton
Height =665mm
No. of ply =7
Price in Rs. To be printed =n.a.
Colour of binding cloth-n.a.
Geyser Welding For assembly plate nominal thickness of
wire the welding wire =2.5mm+0.2mm
For copper tank nominal thickness of the
welding wire =3.5mm+0.2mm
Element Welding For heating element nominal thickness of
wire the welding wire =1.5mm+0.2mm

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SPECIFICATION-14

SECTION MATERIAL REMARKS

SPECIFICATION

Geyser PVC Lead Length of lead = 1.25 meter For 15 Ltr. To

( CRC) Ampere = 16 35 Ltr.
Lead specification = 32/20 ,3 core
----Do----- Length of lead = 1.25 meter For 6 Ltr. , 10
Ampere = 16 Ltr. , 50 Ltr &
Lead specification = 48/20 ,3 core above
Geyser PVC lead Length of lead = 1.25 meter For 15 Ltr. To
ABS with Top Ampere = 16 25 Ltr.
Lead specification = 32/20 ,3 core
----Do----- Length of lead = 1.25 meter For 6 Ltr. &
Ampere = 16 10 Ltr.
Lead specification = 48/20 ,3 core
Element Immersion Length of lead after Top = 2.0 meter For 1000 watt
Lead With Ampere = 6
Top Lead specification = 24/20 ,3 core
----Do----- Length of lead after Top = 2.0 meter For 1500 watt
Ampere = 16
Lead specification = 24/20 ,3 core
----Do----- Length of lead after Top = 2.0 meter For 2000 watt
Ampere = 16
Lead specification = 32/20 ,3 core
----Do----- Length of lead after Top = 1.15 meter For 250 w &
Ampere = 6 500w
Lead specification = 14/52 ,2 core

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 SWOT ANALYSIS

STREGNTH
• The greatest strength of Remson India is its strong brand image Remson India
is one of the major player in the Market Research.
• Remson India focuses on Customer satisfaction, value and loyalty practice.

WEAKNESS
• The first weakness of Remson and Rallison India is its late entrance in the
market.

• Low availability of adequate infrastructural facilities

• Lack of adequate quality control & testing methods as per international

standards

OPPORTUNITY

• Customer is interested in after sale services.

• The increasingly demand of Market Research.

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 • The entire corporate sector is still not targeted as potential for
marketing
• There is less awareness and low level of the penetration about the
Corporate Scheme.

THREATS
• Less awareness about the Market Research.

• Brand loyalty of the customers.

• The old existing companies in the market

• High inventory carrying cost

• High taxation

• High packaging cost

• Competition between national and regional players

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NEED FOR THE PROJECT

In today’s market consumers are rulers. Customers are not aware of the this type of
product and they want to do after sale services. In this project we learn that How we can save the
time in delivering the product to consumers.The past was sellers market. Companies use to make
product and consumer buys it after sales service as provided on the description of the company.
They want to provide better quality in less price .

But now the face of the market has already been fully changed from sellers market, now
it becomes buyers market. To survive in this competitive market, company should take proper
care of their customer and consumer needs and wants which gave them optimum level of
satisfaction. So they are providing the better quality services to the customer.

This role of marketing departments in an organization is to create demand according to

the product. Once customer knows the product and purchase he always looks for more such as a
good prominent quality and timely after sales service.

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Research methodology
Research methodology is considered as the nerve of the project. Without a proper well-organized
research plan, it is impossible to complete the project and reach to any conclusion. The project
was based on the survey plan. The main objective of survey was to collect appropriate data,
which work as a base for drawing conclusion an getting result.
Therefore, research methodology is the way to systematically solve the research
problem.

TYPE & SCOPE OF THE RESEARCH:

Survey / Study conducted on understanding customer behavior leading towards

understanding customer. This was carried out on personal interviews of the ex- customer of the
company based on records provided by the company.

SAMPLE DESIGN:-

The sample was designed based on the customers needs. All the information supposed to
be done in the field only. The database of customer was provided by the company. We reached
to the customer offices with prior information and by taking appointment as the data base of
respondents were made available to us by the Remson and Rallison Company only.
(1) Define the problem and its objectives :- This includes an effective job in planning
and designing a research project that will provide the needed information. It also
includes the establishment of a general framework of major marketing elements such
as the industry elements, competitive elements, marketing elements and company
elements.

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 (2) Identify the problem :- Identifying the problem involves getting acquainted with the
company, its business, its products and market environment, advertising by means of
library consultation and extensive interviewing of company’s officials.

(3) Determining the specific Information needed :- In general the producer, the
manufacturer, the wholesaler and the retailer try to find out four things namely :-

(1) What to sell

(2) When to sell
(3) Where to sell
(4) How to sell

(4) Determine the sources of information :-

(a) Primary Data :- Primary datas are those which are gathered
specially for the project at hand, directly – e.g. through interviews.
Primary data sources include company salesman, middleman,
consumers, buyers, trade association’s executives & other
businessman & even competitors.
(b) Secondary Data :- These are generally published sources, which
have been collected originally for some other purpose. Source are
internal company records, government publication, reports &
publication, reports & journals, trade, professional and business
associations publications & reports.

(4) Decide Research methods for collecting data :- If it is

found that the secondary data cannot be of much use, collection of
primary data become necessary. Three widely used methods of
gathering primary data are

A) Survey
B) Observation
C) Experimentation

A) Survey Method :- In this method, information gathered directly from individual

respondents, either through personal interviews or through mail questionnaires or telephone
interviews.

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 B) Observation Method :- The research data are gathered through observing and
recording their actions in a marketing situation. This technique is highly accurate. It is rather an
expensive technique.

C) Experimental Method :- This method involves carrying out a small scale trial
solution to a problem, while at the same time, attempting to control all factors relevant to the
problem. The main assumption here is that the test conditions are essentially the same as those
that will be encountered later when conclusions derived from the experiment are applied to a
broader marketing area.

D) The Panel Research :- In this technique the same group of respondents is contacted
for more then one occasion; and the information obtained to find out if there has been any in
their taste demand or they want any special quality, color, size, packing in the product.

(5) Tabulate, Analysis and Interpret the Data :-

The report must give/contain the following information:-

a) The title of research

b) The name of the organization for which it has been
Conducted
c) The objectives of research
d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)

(1) Follow-up the study :- The researchers, in the last stage, should follow up this study
to find if his recommendation are being implemented and if not, why.

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MBA
LIMITATION –

• Now, companies are implementing a new type of supply chain management, where the
firm views the supply channel as a whole system instead of concentrating of each part of
the process.

• supply chain is affected by external links with such members as suppliers, partners, and
customers, they often forget that success also depends on internal departments that serve
one another and contribute to the value adding process .

• There may be severe resistance within the company when implementing SCM, because
it requires modification of the attitudes and behavior of those involved in the system -
employees and the employer.

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MBA
 • A lack of understanding by senior management is another possible reason for the
resistance to supply chain management given that an unwritten rule of business is to
minimize risk and cover all angles.

Suggestion and recommendation

• Applications for Supply chain management accreditation must include documents as

corporate templates that meet requirements and demonstrate its consistent
implementation, including documentation that demonstrates the applicant’s ability to
provide the required quality management for applicable contracts.
• establishing, and maintaining records of the above actions; and

• Submitting applications for accreditation

• Project and contract activities
• Identifying requirements for tenders and contracts

• Company should be increase the No. of employee.

• Company should be improve their transportation system ,and supply chain management
should be allocated at the right place.

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MBA
 • Service providers must allocate resources, including personnel with sufficient
knowledge, skills and experience in quality management, and have corporate procedures
for developing, implementing and maintaining their Quality Management System,
Quality Management Plans, and Inspection and Test Plans, as applicable, and to monitor
their effective implementation with contracts. Service providers that purchase or
subcontract products and/or services would ensure each customer’s quality requirements
are reflected in the applicable purchase or subcontract documents .

• Planning and conducting its reviews, audits, inspections, witnessing and surveillance of
the implementation of the supply chain Management System .
• controlling nonconforming services/products and undertaking appropriate corrective and
preventive actions.
• claiming for payment for the work with evidence of conformity with requirements

Conclusion
Supply chain management in the service industry has taken off in recent years, and many
companies are considering it. How a manager handles his company's supply chain will help
determine if its product will make a profit in the marketplace. Because there is a lack of
knowledge and understanding to assist managers in the service sector, it is crucial that today's
managers obtain a full appreciation for what supply chain management is and how it can be
implemented successfully.
A better appreciation for the supply chain management process can be gained by understanding
service industries. A crucial example is the health industry, which is expected to be one of the
fastest growing industries in the future. Health care is attempting to implement a supply chain
that delivers quality products at minimal cost. Some of the problems that have arisen have to do
with the lack of an efficient program to deal primarily with health care facilities and just-in-time
management. Benefits, limitations, and the implementation steps of SCM help show where the
new health care phenomena are headed.
SCM is not a passing fad but rather an evolution in the operations of services. We predict that
services entering the SCM gate will save millions of dollars that would otherwise be spent
because of a dysfunctional supply chain. Since the SCM concept is fairly new, it is vital that
managers do not make a "leap of faith," so to speak, but research the process thoroughly. This
should enable them to choose a supply chain that will be most beneficial in obtaining the main
objective for any company, which is to make a profit.

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MBA
references and bibliography –
I have taken all the data from the official sites of Rachna electrical and few information from
the books, which are given below.

www.remsonappliances.com
www.operationmanagment.com
www.eletronicindustry.com
www.indiamart.com
http://www.rallison.com/php/home.php

• Reference to a book:
KOTHRI, P. (2008), RESEARCH METHODOLOGY,

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MBA
 STAPHEN .(2008), OPREATION MANGEMENT

• Reference for an article:

Dorothy, Kristen, (2009), “BUSINESS STANDARD

Annexure :
1. Training Calendar
2. Training Feedback Form
3. Training Attendance Sheet
4. Project topic proforma

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MBA