INDIRA GANDHI NATIONAL OPEN UNIVERISTY

SCHOOL OF MANAGEMENT STUDIES

PROGRAMME CODE : MP (MBA)
COURSE CODE : MS 100
A
PROJECT SYNOPSIS
ON
Supply Chain Management System
AT

Setco Automotive Ltd India

STUDY CENTRE : 0902 (VADODARA)
REGIONAL CENTRE : 09-(GUJARAT REGION)

PROJECT GUIDE :

SUBMITTED BY :

SYNOPSYS CONTENTS
SR.NO.
1.
2.
3.
4.
5.
6.
7.

PARTICULARS
INTRODUCTION OF THE TOPIC
INTRO. OF THE ORGANIZATION
RATIONAL OF STUDY
OJECTIVES OF THE STUDY
RESEARCH METHODOLOGY USED
LIMITATIONS OF TOPIC
CONTRIBUTION FROM THE STUDY

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1. INTRODUCTION OF THE ORGANIZATION

About Setco
To be the preferred clutch of choice in 1 out of 3 commercial vehicles and 1 out of 5 farm tractors
globally

Incorporated in May 1982, and listed on the BSE, Setco is the largest manufacturer of Premium Quality
Lipe brand clutches for commercial vehicles in India. The company employs more than 1200 people
globally. It is a Tier I supplier of clutches to all the prominent Indian commercial vehicle manufacturers
such as Tata Motors, Bharat Benz, Ashok Leyland, Man India, Mahindra & Mahindra, Volvo Eicher
Commercial Vehicles and Asia Motor Works amongst others. Setco has all the required global quality
certifications such as TS 16949, ISO 14001, OSHAS 18001 and VDA 6.3.

Setco has a strategic global footprint with 4 manufacturing facilities, 2 in India, and 1 each in the UK
and USA, with its corporate base in Mumbai, India. While Setcos major manufacturing is in Kalol,
Gujarat, it has a fast expanding facility in Sitarganj, Uttarakhand. Setco has set up a state of the art
R&D centre at Kalol certified by the Department of Scientific and Industrial Research, Government of
India to design, develop and validate full clutch systems. It also has a research and development centre
in UK.
In addition Setco also manufactures clutches for hydraulic products for the construction equipement
industry and precision engineering components like complex and deep drawn pressings forgings and
castings that are machined and heat treated.
Setco Automotive is the flagship company of The Setco Group which also includes Lavacast Pvt
Ltd, TransStadia Pvt Ltd and its CSR wing, the Setco Foundation.
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Commitments
Growth and change are a constant in any organization. As we strive to become bigger we would like to
emphasize on excellence and tradition in the organization and build a synergistic work ethic.
Harnessing the passion of an employee is critical towards value addition. Employee satisfaction
through training and investments in better facilities is a focus area.
Our commitment lies towards :

Excellence

Growth

Innovation

Integrity

Community Support

Tradition

Training and Support

Technology

Value Addition

Environment, Health & Safety Policy

Setco Automotive is engaged in the manufacture and service of automotive products.
Setco Automotive emphasizes its commitment towards the development and manufacturing of
products and services in a manner that minimally impacts the Environment, Health and Safety, directly
or indirectly.
To ensure this we will strive to

Draft and comply with an exemplary Environment, Health & Safety Policy.

Protect the environment by prevention of pollution: conservation of resources: careful handling

& disposal of hazardous wastes in a eco friendly manner and re-use recycle material wherever
possible.
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Provide continual training to employees & associates for up-gradation of awareness and skills
for a better environment.

Build an environment where there is consciousness towards using and making products
manufactured & distributed strictly adhere to the local and international standards & regulations
as specified.

Adhere to all legal and other requirements concerning the Environment and Occupational
Health & Safety.

Continually improve performance by aiming for clearer & better, objectives & targets.

We ensure that this policy is communicated to every employee and is available for the viewing
of the public / stakeholders and that it will be reviewed periodically.

Facts

Incorporated in 1982, with its corporate office in Mumbai, India.

Largest producer of Medium & Heavy Commercial Vehicles (MHCV) clutches in India.

Among the top 3 manufacturers in the world (by volume)

Meeting approximately 85% of MHCV Clutch demand in India

A critical supplier/partner to Indias leading commercial vehicle manufacturers such as Ashok

Leyland, AMW, Daimler India Commercial Vehicles, Man India, Tata Motors and Volvo-Eicher
Commercial Vehicles

Global Persistence
Setco Automotive Ltd
2A Film Centre Building, Ground Floor,
68 Tardeo,
Mumbai 400034
India

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Setco Automotive Ltd, Kalol Facility 1

Kalol, Vadodara, Gujarat, India

Setco Automotive Ltd, Uttarakhand Facility 2

Sitarganj,
District Udham Singh Nagar,
Uttarakhand, India

Setco Automotive (UK) Ltd

Haslingden, Rossendale,
Lancashire BB4 4HU

Setco Automotive N.A. Inc.

Paris,
TN. 38242

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2. INTRODUCTION OF STUDY
Supply chain management
Supply chain management (SCM) is the combination of art and science that goes into improving the
way your company finds the raw components it needs to make a product or service and deliver it to
customers.In many organizations, materials form the largest single expenditure item, accounting for
nearly 50 to 65 % of the total expenditure. With competition growing by the day, cost reduction in
business operations and yet making available various products to customers, as per their requirement,
come into sharp focus. Maintaining a flawless supply chain across all its operations thus becomes
absolutely necessary for any business.
Importance of supply chain management need not be over emphasized as it has become the cutting
edge of business, after product quality and manufacturing capabilities of any business firm. If your
company makes a product from parts purchased from suppliers, and those products are sold to
customers, then you have a supply chain. 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.
Definition
Supply chain management (SCM) is the oversight of materials, information, and finances as they move
in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain
management involves coordinating and integrating these flows both within and among companies. It is
said that the ultimate goal of any effective supply chain management system is to reduce inventory . As
a solution for successful supply chain management, sophisticated software systems with Web interfaces
are competing with Web-based application service providers (ASP) who promise to provide part or all
of the SCM service for companies who rent their service

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3. RATIONAL OF STYDY
Supply Chain Management is the process of planning, implementing, and controlling the operations of
supply chain with the purpose to satisfy customer requirements as efficiently as possible. 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. It is a cross functional approach to managing the
movement of raw materials into an organization and the movement of finished goods out of the
organization toward the end consumer.
Supply Chain management is also the combination of art and science of improving the way company
finds the raw components it needs to make a product or service and deliver it to customers. It seeks to
enhance competitive performance by closely integrating the internal functions within a company and
effectively linking them with external operations of suppliers and channel members. Moreover, this has
been a prominent concern for both large and small companies as they strive for better quality and
higher customer satisfaction.
In a supply chain, a company links to its supplier upstream and to its distributors downstream in order
to serve its customer. The goal of supply chain management is to provide maximum customer service
at the lowest possible costs.
Companies now are competing supply chain-to-supply chain rather than enterprise-to-enterprise
requiring for more intimately connected relationships. Customer markets and supply chains are no
longer limited by physical proximity, and businesses are sourcing from and managing a greater number
of far-flung partners and channels.
Success of a company now depends on effective global supply chain management, its ability to deliver
the right product to the right market at the right time. The complexity involved in managing supply
chains that span continents and dominate markets demands strategies and systems that are adaptable.
Managing Supply Chain for Global Competitiveness takes a strategic look at all of the core functions
of global supply chain management which includes product design, planning and forecasting, sourcing,
outsourcing, manufacturing, logistics, distribution, and fulfillment.

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Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the movement of products
along it. The supply chain starts and ends with the customer.

Customer: The customer starts the chain of events when they decide to purchase a product that
has been offered for sale by a company. The customer contacts the sales department of the company,
which enters the sales order for a specific quantity to be delivered on a specific date. If the product
has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the
production facility.

Planning: The requirement triggered by the customers sales order will be combined with other
orders. The planning department will create a production plan to produce the products to fulfill the
customers orders. To manufacture the products the company will then have to purchase the raw
materials needed.

Purchasing: The purchasing department receives a list of raw materials and services required
by the production department to complete the customers orders. The purchasing department sends
purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site
on the required date.

Inventory: The raw materials are received from the suppliers, checked for quality and accuracy
and moved into the warehouse. The supplier will then send an invoice to the company for the items
they delivered. The raw materials are stored until they are required by the production department.

Production: Based on a production plan, the raw materials are moved inventory to the
production area. The finished products ordered by the customer are manufactured using the raw
materials purchased from suppliers. After the items have been completed and tested, they are stored
back in the warehouse prior to delivery to the customer.

Transportation: When the finished product arrives in the warehouse, the shipping department
determines the most efficient method to ship the products so that they are delivered on or before the
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date specified by the customer. When the goods are received by the customer, the company will send
an invoice for the delivered products.

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4. OBJECTIVES OF THE STUDY

Primary Objective:
ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES DOPTED BY Setco
Automotive Ltd India
Secondary Objectives:
Supply chain management (SCM) in today's global environment, especially the E-business is important
to create significant competition advantages to firms and business partners worldwide. Since the
objectives and goals are essential factors in the study of supply chain management in the E-business.
The purpose of this research paper is to present the research question, review the conceptual
framework, ERP and environment for SCMS, study their objectives, impact of SCM and utilize any
useful theories that may help identify the critical factors of the SCM. The differences between PreInternet and E-business are also argued to clarify the further research in this field.

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5. RESEARCH METHODOLOGY
METHODOLOGY:
The project evaluates the financial performance one of the company with help of the most appropriate
tool of financial analysis like ratio analysis and comparative balance sheet. Hence, it is essentially fact
finding study.

Primary Data:
Primary data is the first hand information that is collected during the period of research. Primary data
has been collected through discussions held with the staffs in the concern department.
Observation
Personal Interviews
OBSERVATIONS - It is the methods of nothing and recording information without asking specific
question from the respondents. The advantage of this method is that it is highly effective to provide
information asked for.
PERSONAL INTERVIEWS(Questionnaire) - In this method I asks the question from the Performa in
the order questions are listed and record the replies.

Secondary Data:
Secondary data studies whole company records and in which the project work has been done. In
addition, a number of reference books, journals and reports were also used to formulate the theoretical
model for the study. And some information were also drawn from the websites.

Period of study:
The study covers the period of 2014-2015 at Steco Automotive Ltd India.

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6. LIMITATIONS OF THE STUDY

As the study is based on primary and secondary data, the inherent limitation of the secondary data
would have affected the study.
1.

The sample size chosen is covered only a small portion of the whole population of Setco
Automotive Ltd India.

2.

The disadvantage of study SCM is investment of time, money and resources needed to
implement and overlook supply chain

3.

The study is confined to limited period i.e. Six weeks.

4.

Convenience sampling used here has its own limitations

5.

There have been some inaccuracies due to non cooperative and rude behavior of the
respondents

Data collected cannot be asserted to the free from errors, as the sample size restricted to the employees.
This study need to be interpreted carefully. They can provide clues to the companys performance or
financial situation. But on their own, they cannot show whether performance is good or bad. It requires
some quantitative information for an informed analysis to be made.

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7. OUTCOME FROM THE PROJECT

INDEX OF FINAL PROJECT REPORT
1.

INTRUDUCTION OF ORGANIZATION

2.

RATIONAL OF STUDY

3.

REVIEW OF LITERATURE

4.

OBJECTIVES OF STUDY

5.

RESEARCH METHODOLOGY

6.

DATA ANALYSIS

7.

FINDINGS AND CONCLUSIONS

8.

OBSERVATIONS AND SUGGESTIONS

9.

LIMITATIONS OF STUDY

10.

BIBLIOGRAPHY

11.

ANNEXURE

12.

APPROVED SYNOPSIS

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