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. PARTICULARS PAGE NO.

1. INTRODUCTION OF THE TOPIC 3

2. INTRO. OF THE ORGANIZATION 8

3. RATIONAL OF STUDY 9

4. OJECTIVES OF THE STUDY 11

5. RESEARCH METHODOLOGY USED 12

6. LIMITATIONS OF TOPIC 13

7. CONTRIBUTION FROM THE STUDY 14

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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.

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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.

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.
Provide continual training to employees & associates for up-gradation of
awareness and skills for a better environment.

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 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

Setco Automotive Ltd, Kalol Facility 1

Kalol, Vadodara, Gujarat, India

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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,

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planning and forecasting, sourcing, outsourcing, manufacturing, logistics, distribution, and
fulfillment.

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.

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 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 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 Pre-Internet 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.
 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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