9.

CAPACITY
 capacity denotes the maximum output of products and services one can achieve by the
usage of variety of resources including labour,machines,tools and fixtures
 capacity is a fixed investment for the repetitive use by the system
Eg:
Adhya fabrications makes sheet metals, and that a commercial bending, forming & shearing
sheet metal tools can operate effectively when used between 1,500 and 2,000 hours a month.
if the firm has spikes in production, the machine can operate at more than 2,000 hours for a
month, but the risk of a breakdown increases. management has to plan production so that the
machine can operate within a relevant range.
Industry Specific:
 capacity of this industry depends on thickness of the sheet metals
 however, the maximum achievable capacity to operate without any breakdown at
adhya fabrication was around 85 tons to 100 tons per month
 the amc co2 laser machine is 7000 unit is capable up to 1200 rpm punch rate and
utilizes a 2700 w laser.

10.JIT
Just in time (JIT) is an inventory management method whereby materials, goods, and labor
are scheduled to arrive or be replenished exactly when needed in the production process.
 the core philosophy of jit systems is to provide an organizational framework to
continuously reveal opportunities for the elimination of non-value added activities
 also known as zero-inventory system
Eg:
let's assume that company vindhi is a small car manufacturer. on tuesdays the company
assembles the car chassis, and the workers put the windshield in on thursdays. with a just in
time inventory method, vindhi might have parts delivered exactly one day before they need
them. the chassis would be delivered on monday and the windshield on wednesdays.
Industry specific:
 adhya fabrications never uses just-in time method. the possible reasons are:
 suppliers won’t support jit by delivering their raw material in small batches on a daily
basis
 they always will have back orders on the factory. they are constantly expediting
production to make up for these shortages and to complete products for shipment
within the scheduled cycle time. if they go to jit, the line will always be shut down,
and their production will always be late
 their batch-oriented materials planning and control system won’t allow them to
operate in a just-in-time mode. they need to install a just-in-time software package
before they can convert their production operation which could add more costs.
 the main reason being they are a job shop, so their business is naturally oriented to
batch production. they can’t use jit.

11. E-PROCUREMENT-
Def :
a new dimension in procurement.it denotes a set of strategies that a purchase
manager could electronically employ to identify appropriate sources of supply,
finalize the terms of trade and place the order. It necessitates restructuring of
logistics and supply chain network of an organization. However, it provides
advantages like reduced cost and lead time.
Example: Purchasing daily requirement through online retails like amazon.
Industry Specific: Adhya Fabrication is the vendor for LMW they receive order
through online portal ,this portal is used to update status and provide real time
tracking of order. Adhya fabrication also uses a online portal to place order for
their raw materials

12.TOTAL QUALITY MANAGEMENT

  Total quality management is a management framework based on the belief that an
organization can build long-term success by having all its members, from low-level
workers to its highest ranking executives, focus on quality improvement and, thus,
delivering customer satisfaction.
 tqm principles will be in a position to overcome the quality-versus-cost trade-off

Eg:
 quality circles, statistical process control, taguchi methods, and quality function
deployment
 with tqm, a process improvement methodology based on a customer satisfaction
quality-driven process with guidelines set by management was first utilized, it started
through a joint venture at ford motors. tqm was forefront in their painting design as
the process of preparation (based on customer quality standards)
INDUSTRY SPECIFIC:
 quality of the sheet metals depends on the material, operations and the effective
handling of the materials at adhya fabrications and by managing these a continuous
improvement can be made
 the other quality problem faced being the handling problem of the usage of trolly’s
carrying out the metals. there might the chances of metals scratch due to heaping the
metal’s at trolly’s or the ground surface might get scratched off due to the constant
movement of trolley’s

13.TOTAL PRODUCTIVE MANAGEMENT

 Total productive maintenance is a system of maintaining and improving the integrity
of production and quality systems through the machines, equipment, processes, and
employees that add business value to an organization.
 Objective of tpm : to increase the productivity of a factory and its equipment with a
modest investment in maintenance
Eg:
If the workplace is clean and organized, tools used in maintenance are easily located – this
has a positive effect on machine uptime.
Industry specific:
  tpm (total productive maintenance) is a holistic approach to equipment maintenance
that strives to achieve perfect production so that no breakdowns ,no small stops or
slow running no defects
 it blurs the distinction between the roles of production and maintenance by placing
a strong emphasis on empowering operators to help maintain their equipment
14.INBOUND SUPPLY CHAIN
 The inbound supply chain pertains mainly to providing raw materials and components
to an organization
 inbound logistics refers to the transport, storage and delivery of goods coming into a
business
 the better the inbound logistics are managed, the more efficient the process usually is
Eg:
 a carriage which is free on board (fob) terms of shipping; outlines that the buyer takes
on the burden for the
 costs of shipping following the point of shipment loading or another specified point.

Industry specific:
 suppliers are their inbound supply as that include receiving goods, checking,
unloading goods and placement in the warehouse.
 manufacturing dates, expiration dates, serial numbers, p.o. tracking, various inventory
receipt statuses and more have been tracked through inbound supply chain

15.INHOUSE SUPPLY CHAIN

 The in-house component of the supply chain relates to the physical configuration of
the conversion process
 In-house logistics means handling materials and products within own
organization when it is not inbound or outbound logistics. in-house logistics
functions among other things are assembly and maintenance of equipment.
Eg:
Regarding customer intimacy, companies should be able to meet the requirements of the
marketplace for e.g. quality, time of deliveries flexibility of manufacturing etc. therefore,
companies need to shape both its upstream and in-house activities according to demand and
requirements, and develop and maintain innovation and production competencies to do so.
INDUSTRY SPECIFIC:
  they use in-house supply chain since it allow for company to compete better on cost,
by eliminating wasted time and materials, and having fewer middlemen.
 enable the company to shorten their product life cycles, by having fewer links in the supply
chain from back to front, and tighter coordination between delivery, warehousing, and
transportation.

16.OUTBOUND SUPPLY CHAIN

 the outbound supply chain pertains to the distribution of goods and services to end
customers
 the movement of material associated with storing, transporting, and distributing goods
to its customers.
Eg:
 outbound logistics, in the case of a tangible item, can be warehousing, material
handling, inspection and transport, etc., but for intangible ones like services, it is
associated with setting for bringing customers to the service location
 adhiya fabrications, being a supplier of lmw(lakshmi metal works) supply tons of
goods on a trucks of small vans

17.DISTRIBUTION OF NETWORK DESIGN

 A distribution network refers to the manner in which a set of outbound supply chain
entities are geographically located to stock products and serve end customers by
satisfying the demand in a responsive manner
  these entities may include company-owned distribution centers, independent
distributors, stockists, retailers and third-party logistics(3pl)
Eg:
For instance, a manufacturer of air-conditioners had the following entries in the distribution
network: two factories manufacturing air-conditioners, eight branches across the country, 16
sales depot and 800 dealers (with each sales depot served about 5 industry specific:
 they don’t use distribution design network owing to the fact that
 network costs could be 10-15% higher than expected norms
 service lead times may be adversely impacted
 product availability is a major issue
 excessive product damage could be occurring

18.LOGISTICS MANAGEMENT
Logistics management is a supply chain management component that is used to meet
customer demands through the planning, control and implementation of the effective
movement and storage of related information, goods and services from origin to destination
Eg:
For a computer manufacturer, inbound logistics might involve electronics parts, computer
chips, cables, connectors, molded casings and shipping cartons. outbound logistics involves
the finished computer and associated peripheral devices. meanwhile, for a furniture
manufacturer, inbound logistics could involve wood, glue, fabrics, screws, nails, paint and
safety glasses, while outbound logistics would involve the finished furniture.
INDUSTRY SPECIFIC:
For a sheet metal work manufacturing company the third party logistics might involve the
usage of outside reliable vendors and the inbound supply chain deals with the suppliers
whereas the outbound supply chain has been effectively carried out to lmw. they could be
achieved through distribution, warehousing by out porting them through the trucks of small
vans

19.CHANNEL MANAGEMENT
Channel management is a formal program by which a company creates processes for selling
and servicing customers within a specific channel.
channel management involves motivating partners comprising channels of distribution
industry specific examples/application :
 they being the suppliers (reliable) to lmw don’t need a proper channel to make
awareness to sell and service.
 the aim is to streamline communication between a business and the customer
 however for their other subsidiary suppliers, contributors an effective means of
efficiency in all channels has been taken without due negligence

20.SUPPLY CHAIN STRUCTURE

 To support the delivery of the vision and the operating model, adhya fabrications have
structured their supply chain organization across the following
 major sourcing programmes – sitting within the category management team, this
team provides flexibility and expertise to support significant projects across the
whole of the company.
 supply chain service centre and best practice – accountable for delivery of supply
chain transactions, tactical sourcing, and systems development, develops and
 governs all supply chain processes, policies and procedures, on-going performance
reporting and strategy development.
 supply chain partnerships – accountable for identifying, fostering and managing
supply chain partnerships aligned to strategies developed by the category teams.

21.BULL WHIP EFFECT

 the bullwhip effect is an occurrence detected by the supply chain where orders sent to
the manufacturer and supplier create larger variance then the sales to the end
customer.
 these irregular orders in the lower part of the supply chain develop to be more distinct
higher up in the supply chain.
 this variance can interrupt the smoothness of the supply chain process as each link in
the supply chain will over or underestimate the product demand resulting in
exaggerated fluctuations.
industry specific examples/application:
 disorganization between each supply chain link
 lack of communication between each link in the supply chain at adhya makes it
difficult for processes to run smoothly
 order batching; adhya may not immediately place an order with their supplier; often
accumulating the demand first. they may order weekly or even monthly.
 price variations – special discounts and other cost changes can upset regular buying
patterns; buyers want to take advantage on discounts offered during a short time
period.
 demand information – relying on past demand information to estimate current
demand information of a product does not take into account any fluctuations that may
occur in demand over a period of time

22.FACTOR RATING
 factor rating is a procedure or technique to evaluate multiple alternatives based on a
number of selected factors
 in the location factor rating system, factors that are important in the location decision
are identified. each factor is weighted from 0 to 1.00 to prioritize the factor and reflect
its importance.
industry specific application/examples:
 factor rating on adhya fabrications depends upon working people and people those
who are close to lmw(for whom adhya fabricators supply)
 it should be near to the main road on consideration to the transportation accessibility
 it should be on the industrial plot premises
 the location also should be classified under the orange category pollution
 power availability should be adequate

23.CENTRE OF GRAVITY METHOD

The centre-of-gravity, or weight centre, technique is a quantitative method for locating a
facility such as a warehouse at the centre of movement in a geographic area based on weight
and distance. this method identifies a set of coordinates designating a central location on a
map relative to all other locations.
industry specific examples/application:
 on adhya fabricators however the usage of centre of gravity method is concerned with
the following
 what is their expected inventory profile?
 what is their geographic distribution strategy?
 state and municipalities incentives? state and local government incentives?
 the pool of local talent available in the area.
  inbound and outbound transportation costs.

24.LOAD DISTANCE METHOD

 a variation of the centre-of-gravity method for determining the coordinates of a
facility location is the load-distance technique
 in this method, a single set of location coordinates is not identified. instead, various
locations are evaluated using a load-distance value that is a measure of weight
and distance
industry specific examples/application:
 they relatively have equal access to workforce, highways, and customer bases, and the
taxes at each location are comparable. what will ultimately be the deciding factor is
the distance to your suppliers.
 since it is in proximity this method finds its application

25.TRANSPORTATION MODEL
The transportation model is a valuable tool in analysing and modifying
existing transportation systems or the implementation of new ones. in addition, the model is
effective in determining resource allocation in existing business structures
industry specific example/application:
this model helps adhya fabricators to
 monitor progress of their integrated warehouse implementation
 report on model metadata information and business data needed for analysis
 enhance their interdepartmental communication and understanding
 accelerate time to market by leveraging teradata knowledge
 attack the correct business problem areas
 synchronize business decisions across the enterprise

26.SOURCING

 sourcing is an approach to supply chain management that formalizes the way

information is gathered and used so that an organization can leverage its consolidated
purchasing power to find the best possible values in the marketplace.
  it requires analysis of what an organization buys, from whom, at what price and at
what volume. strategic sourcing differs from conventional purchasing because it
places emphasis on the entire life-cycle of a product

Industry specific applications/examples:

 metal fabrication capabilities vary from company to company. some focus on larger
production runs at a lower cost, while others focus on low volume with greater options
for customization. in today’s world, the more capabilities that a company offers, the
more appealing they are to any procurement professional. the right metal fabrication
company will offer services such as cutting, stamping, forming, extruding, bending,
assembling, etc.
 adhya fabricators involves all those process as mentioned above and the raw materials
for it have been completely sourced. moreover the finished product of the adhya
fabricators are used as a source for lmw

27.PROCUREMENT

 In a business environment, the procurement function is one of the most critical

functions as it provides the input for the organization to convert into output. Materials
today are lifeblood of industry.
 They must be available at the proper time, in the proper quantity, at the proper place,
and the proper price.

Industry specific example/application:

 A sheet metal is a metal that has been rolled into thin sheets or pieces by using
industrial processes. it is an essential form of metalworking and is used in multiple
applications. this upcoming procurement research, which is part of adhya
fabricators metals and mining category, would provide actionable insights on the
 pricing strategies, market drivers, procurement best practices, and the supply
landscape for the global sheet metal market.

28.VENDOR RATING

 vendor rating is the result of a formal vendor evaluation system.

 vendors or suppliers are given standing, status, or title according to their attainment
of some level of performance, such as delivery, lead time, quality, price, or some
combination of variables.
 the motivation for the establishment of such a rating system is part of the effort of
manufacturers and service firms to ensure that the desired characteristics of a
purchased product or service is built in and not determined later by some after-the-
fact indicator.
 the vendor rating may take the form of a hierarchical ranking from poor to excellent
and whatever rankings the firm chooses to insert in between the two

Industry Specific Examples/Applications:

At adhya fabrications the vendor rating has been classified onto vendor delivery rating,
vendor quality rating and vendor cost rating

29.MAKE OR BUY
 a make-or-buy decision is the act of choosing between manufacturing a product in-
house or purchasing it from an external supplier. in a make-or-buy decision, the most
important factors to consider are part of quantitative analysis, such as the associated
costs of production and whether the business has the capacity to produce at required
levels.
 the make-or-buy decision compares the costs and benefits associated with
producing a necessary good or service internally to the cost.

Industry example/application:

 they internalized the extremes of the value chain and outsourced the manufacturing
process to independent suppliers or in some case themselves
  however change is attributed to macro factors such as the trend towards diminishing
transport costs, the decrease in tariff barriers to international trade, the gradual
elimination of bureaucratic and administrative barriers
 there are alternative efficient suppliers with the necessary equipment and skills to
carry out the activity, therefore reducing their bargaining power, and the likelihood
they will engage in opportunistic behaviors.
conversely, it is also reasonable to suggest that it is when the industry is emerging
or in a growth stage that firms would benefit from vertically integrating.