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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

1. INDUSTRY PROFILE:
Machine tools are universally recognized as a strategic industry for any
industrialization. Known as the mother industry, it makes machines like lathes, cutting
machines, tools for various applications, which are critical capital equipments for a broad
spectrum of industries, especially the capital goods industry.

The machine tool industry has its beginning in the early 1890s, manufacturing a
range of conventional as well as a numeric control (NC)/ computerized numeric control
(CNC) machines, used by the engineering, automobile and machine building industries.

Modernization and expansion of the existing manufacturing units, global OEMs


(original equipment manufacturers) in machine tools and CNC machines from America,
Europe and Asia-Pacific are setting up production bases and service centers in the Indian
subcontinent to consolidate their presence and increase market share. The global machine
tool industry is growing at a faster rate having a market of $15-billion, with the leaders in
machine tool industry like Germany, Japan, China and few more.

With the onset of reforms and globalization, every sector of Indias industry
faces new challenges. The concept of globalization has gained importance in recent times
along with liberalization.

In fact, the machine tool industry constitutes the backbone of the industrial
sector. Even though the Indian machine tool industry is a small segment of the engineering
industry, it plays a very important role in the development and technology up-gradation.

Indias machine-tool industry is composed of nearly 450 lead players. The


industry is moving towards increasingly sophisticated CNC machines, driven by demand
from key user segments, such as, automobiles and consumer durables.

India stands 17th in production and 12th in the consumption of machine tools in
the world. The country is set to become a key player in the global machine tools industry and
is likely to see substantial high-end machine tools. Studies have rated India higher in terms of
manufacturing capability and availability of quality engineering services.

India exports around 6% against Germany having a lead of 72% as on


production. But increasing sophistication has led to a rise in the machine tool exports.

Though the machine tool industry is flooded by the giants like Germany, Japan,
China and Germany creating the benchmark, Indian Machine Tool industrys efforts in
showcasing the best of Indias capabilities over the recent past have borne fruit in the highly-

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competitive markets of Europe, Germany and Italy as well as in key Asian markets of China
and more recently in Thailand.

Machine tools filled a need created by textile machinery during the Industrial
Revolution in England in the middle to late 1700s. Until that time machinery was made
mostly from wood, including gearing and shafts.

James Watt was unable to have an accurately bored cylinder for his first steam
engine, trying for several years until John Wilkinson invented a suitable boring machine in
1774, boring Boulton& Watt's first commercial engine in 1776.

The first machine tools offered for sale (i.e., commercially available) were
constructed by Matthew Murray in England around 1800.Others, such as Henry Maudslay,
James Nasmyth, and Joseph Whitworth, soon followed the path of expanding their
entrepreneurship from manufactured end products and millwright work into the realm of
building machine tools for sale.

Important early machine tools included the slide rest lathe, screw-cutting lathe, turret
lathe, milling machine, pattern tracing lathe (shaper) and metal planer, which were all in use
before 1840. With these machine tools the decades old objective of interchangeable parts was
finally realized.

Forerunners of machine tools included bow drills and potter's wheels, which had
existed in ancient Egypt prior to 2500 BCE, and lathes are known to have existed in multiple
regions of Europe since at least 1000 to 500 BCE. But it was not until the later Middle Ages
and the Age of Enlightenment that the modern concept of a machine toola class of
machines used as tools in the making of metal parts, and incorporating machine-guided
toolpathbegan to evolve. Clock makers of the middle ages and renaissance men such as
Leonardo da Vinci helped expand humans' technological milieu toward the preconditions for
industrial machine tools. During the 18th and 19th centuries, and even in many cases in the
20th, the builders of machine tools tended to be the same people who would then use them to
produce the end products (manufactured goods). However, from these roots also evolved an
industry of machine tool builders as we define them today, meaning people who specialize in
building machine tools for sale to others.

The demand for machine tools has been driven by various manufacturing industries
over the centuries. The human desire for firearms (from small arms through artillery) was the
earliest, and it has lasted as a top driver through the present. Lathes and boring machines for
boring cannon barrels led the way. The next major impetus of machine tool development was
the building of textile machinery during the Industrial Revolution in England. Historians of
machine tools often focus on a handful of major industries that most spurred machine tool
development. In order of historical emergence, they have been firearms (small arms and

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artillery); clocks; textile machinery; steam engines (stationary, marine, rail, and otherwise;
the story of how Watt's need for an accurate cylinder spurred Boulton's boring machine is
discussed by Roe (1916) sewing machines; bicycles; automobiles; and aircraft. Others could
be included in this list as well, but they tend to be connected with the root causes already
listed. For example, rolling-element bearings are an industry of themselves, but this
industry's main drivers of development were the vehicles already listedtrains, bicycles,
automobiles, and aircraft; and other industries, such as tractors, farm implements, and tanks,
borrowed heavily from those same parent industries.

Drive power sources


Machine tools can be powered from a variety of sources. Human and animal power
are options, as is energy captured through the use of waterwheels. However, modern machine
tools began to develop only after the development of the steam engine, which led to the
Industrial Revolution. Since electrification of industry after 1900, most machine tools are
powered by electricity; however, hydraulic and pneumatic power can be used, but this is
uncommon.

Automatic control
Machine tools can be operated manually, or under automatic control. Early machines
used flywheels to stabilize their motion and had complex systems of gears and levers to
control the machine and the piece being worked on. Soon after World War II, the numerical
control (NC) machine was developed. NC machines used a series of numbers punched on
paper tape or punched cards to control their motion. In the 1960s, computers were added to
give even more flexibility to the process. Such machines became known as computerized
numerical control (CNC) machines. NC and CNC machines could precisely repeat sequences
over and over, and could produce much more complex pieces than even the most skilled tool
operators.

Before long, the machines could automatically change the specific cutting and
shaping tools that were being used. For example, a drill machine might contain a magazine
with a variety of drill bits for producing holes of various sizes. Previously, either machine
operators would usually have to manually change the bit or move the work piece to another
station to perform these different operations. The next logical step was to combine several
different machine tools together, all under computer control. These are known as machining
centers, and have dramatically changed the way parts are made.

From the simplest to the most complex, most machine tools are capable of at least partial
self-replication, and produce machine parts as their primary function.

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2. COMPANY PROFILE
A. Background and Inception of the company:
Micromatic was established in 1979 as Micromatic Sales Corporation and was
incorporated under the Indian Companies Act 1956 under the name Micromatic Machine
Tools Pvt. Ltd. as a marketing and servicing organization.

Over the years Micromatic has become one of the fastest growing marketing
companies with considering brand recall occupying a premier position in Indian Machine
Tool Industry.

Micromatic is dedicated to the highest quality of Customer service delivered with a


sense of warmth, Friendliness, Individual pride and team spirit.

Micromatics dedicated team of nearly 250 sales and services engineers understand
customer application and are trained to deliver pre and post sales services, supply of
machines, tooling and training and after sales service support. Hi-tech State of the Art
machine tools like CNC lathe, CNC Machining Centres, CNC and Hydraulic Grinders,
Machine Tool Accessories like Turrets, Automatic Tool Changer, Power Chucking Cylinders
manufactured by the four Principals, are sold and serviced by Micromatic.

Micromatics strategically located offices are at Aurangabad, Bangalore, Chennai,


Coimbatore, Gurgaon, Kolkata, Mumbai, Pune and Satellite Branches at Belgaum,
Bommasandra, Chakkan, Delhi, Faridabad, Ghaziabad, Hyderabad, Indore, Jamshedpur,
Ludhiana, Nasik, Rajkot, Ranipet, Thane, Trichy & franchisee at Kolhapur. This enables
Micromatic to be in close touch with its customers and provide for decentralized sales and
service deliverance which is acknowledged by its over 13500 installations in India.

Today, Micromatic spearheads a new consciousness in machine tool marketing and


servicing thereby adequately geared up for the demands imposed by the new world order in
India such as establishing tech centers in vital locations. At present, Tech Centers exists in
Gurgaon and Pune and there are upcoming projects at Bangalore and Chennai.

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B. NATURE OF BUSINESS CARRIED:


Micromatic Machine Tools is the customer facing constituent of Ace Micromatic, the
largest machine tool group, in India.
The activities extend from rendering advice on machine selection and application
engineering-to installation, commissioning, preventive and breakdown maintenance, spare
parts support and post-warranty annual maintenance contracts.

The main functional streams under Micromatic Machine Tools are;

Machine and Sales: Micromatic Machine Tools is the marketing arm that Ace
Micromatic Group, it is involved in the Sales of the CNC lathes, Machine centers,
Cylindrical grinders, Turrets and ATCS, which is manufactured by the four
principals namely, ACE Designers, AMS, Micromatic Grinding and Pragati
respectively.
Service: Micromatic Machine Tools carries the 365 day servicing, through its
skilled service engineers who are well trained to handle these machines and by
providing its customers with commissioning, preventive and break down
maintenance, spare parts support.
AMC: The Annual Maintenance Contract is another functional strategy to provide
post-warranty service to its customers by offering extended maintenance contract.
Training: With an in-house faculty for training courses on the basic operation,
maintenance and programming of machines, besides on the other subjects are
regularly conducted. These sessions are also held in association with the principals
of CNC and hydraulic systems and eternal experts to speak on varied subjects
covering productivity and maintenance.
Micromatic Machine Tools has taken up a new corporate social responsibility
initiative to train young people from economically disadvantaged sections of society and
offering them placements under the Ace Micromatic LPM training programme.

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C. VISION & MISSION STATEMENT:

i. VISION
Most preferred provider of machine tools and related services in
India.

ii. MISSION
We will recognize our responsibilities as corporate citizens to foster progress, to
promote general welfare of the society.
We will respect and empower individuals in the organizations and provide a
caring environment conducive for growth.
We will be seen as trust worthy, proactive, ethical organization offering one stop
solution and continuous support to customers with the added assurance of meeting
the customers requirement in time and every time.

iii. QUALITY POLICY:


We at Micromatic are committed to provide effective and efficient services to
satisfy the customers.
Our endeavor is to achieve customers delight through continuous process
improvement.
The above policy shall be achieved through following objectives;

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D. PRODUCT & SERVICE PROFILE:


GRINDING:

These are a type of machines that are ideally suited for large volume manufacturing of
small/medium/large sized parts like camshafts, drive shafts, small transmission shafts of
small engines, high precision fuel injection parts and finally hubs for automobiles, defense,
agriculture etc.

These grinding machines are manufactured by the principal, Micromatic Grinding


Technologies Ltd (MGTL). MGTL is a lead manufacturer of wide range of external, internal,
universal and special purpose cylindrical grinders.

The grinding machines are available in different variants which are used for various different
applications. These grinding machines vary in terms of their swing diameter, wheel speed,
spindle power etc.

The main features of these grinding machines are;

Modular design to suit individual requirement


Bigger capacity wheel to reduce cycle time
Wheel head consists of high precision class angular ball bearing
Dual feed rates, etc.

GRIND 320
Precision CNC Cylindrical mm 320
Grinder Swing diameter
mm 320/630
Admit between center
mm 600 x 100
Grinding wheel (dia x width)
kW 11
Spindle power
m/Sec. 45
Wheel speed

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CNCProduction Cylindrical Grinder

i GRIND 300/450

Max. rotating dia mm 300/450

Max. dia. of grindable hole mm 200/250

Min. dia. of grindable hole mm 5/10

Max. hole length mm 150

Rapid rate for cross table X axis m/min 10

Rapid rate for table Z axis m/min 20

Production CNC Internal


Grinder i GRIND
300/450

Max. rotating dia mm 300/450

Max. dia. of grindable hole mm 200/250

Min. dia. of grindable hole mm 5/10

Max. hole length mm 150

Rapid rate for cross table X m/min 10


axis
Rapid rate for table Z axis m/min 20

MILLING:

Milling consists of the CNC Vertical Machining Centers and the CNC Horizontal Machining
Centers. These machines are used in hollow holes on the aluminum and cast iron
components. These machines are manufactured by the principal unit, Ace Manufacturing
Systems Ltd.

The machining centers variants differ from one another in terms of stroke X/Y/Z, spindle
taper, spindle power, no. of tools, spindle speed, CNC system (Fanuc OIMate), chip to chip
time; etc.

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SONIC

Salient Features:

High rapid traverse.


Faster response.
Higher spindle speed with direct drive.
Suitable for cell concept.
Faster tool changer.
Lower chip to chip time.

SHILPI

High rapid traverse for X/Y/Z.


Faster response of slides.
Higher spindle speed with direct drive.
Suitable for cell concept.
Faster tool changer.
Lower chip to chip
Stretched ball screw for all axis

TURNING:

These are the comprehensive machines manufactured by them principal unit, Ace Designers
Ltd. These machines are used for various applications like bearing rings, Engine valves and
many other automotive parts.

These turning machines are available in different variants, such as CNC lathes, CNC turning
centers, Auto lathes and Work-Holding fixtures. They are further categorized on the basis of
their application in the manufacturing of either the small sized parts or large sized
components or bigger disk type components. These machines in common vary on the key
specifications of cutting parameters and surface speed like Turning Diameter, Turning
length, Spindle power and Chuck size.

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AUTOMATION:

MMT is also into the sales of automation tools manufactured by Pragati. Pragati being one of
the principal unit in the Ace-Micromatic group, is the sole manufacturer of Precision
Machine Tool Accessories.

Pragati manufactures Tool Discs in standard slotted and VDI varieties to suit different
models of tool turrets. It also manufactures a wide range of Tool Holders, Tool Turrets, Index
Tables and Trainer Turrets. They are specialized in manufacturing ATCs (Automatic Tool
Changer) for vertical and horizontal machine centers which are in high demand creating a
bench mark in the industry. These ATCs are so compatible that they can be used with
machine centers manufactured by other manufacturers. Rotary Chuckling Cylinders are also
manufactured which are for application on CNC lathes and for actuation of power chucks.

Tool Discs Index Tables Chuckling Cylinders

Drum Type Magazine for VMC Drum Type Magazine for VMC Chain Type
Magazine for HMC

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E. AREA OF OPERATION:

Micromatic Machine Tools is strategically located offices are at Aurangabad,


Bangalore, Chennai, Coimbatore, Gurgaon, Kolkata, Mumbai, Pune and Satellite Branches at
Belgaum, Bommasandra, Chakan, Delhi, Faridabad, Ghaziabad, Hyderabad, Indore,
Jamshedpur, Ludhiana, Nasik, Rajkot, Ranipet, Thane, Trichy & franchises at Kolhapur.

It also has branches acroos world and it has got both Gobal and National operations.

F. OWNERSHIP PATTERN:
The organization is was started and still functions through the First time
entrepreneurs.Micromatic Machine Tools Pvt Ltd is the sole marketing company of the Ace
Micromatic Group which is the largest Machine tools group in India.

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G. COMPETITORS:

Domestic: Global:
1) HMT 1) Makino
2)BFW 2) HAAS
3) Jyothi 3)DMG
4) Parishudh Machines Pvt. Ltd. 4) Mazak
5) Premier Machine Tools
6) Askar Micron

H. INFRASTRUCTURE FACILITIES:

1. LAN connectivity in headquarters.

2. Web connectivity with branch offices.

3. One-Stop-Super-Shop Tech Centers.

4. Largest reach with 19 strategic Locations.

5. In-house faculty to train customers.

6. Computerized invoicing through online CRM.

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I. ACHIEVEMENT/AWARDS:

1979 Founded as a Partnership firm to sell and service Cylindrical Grinders & copy
attachments.
"Best Design & Best Product" awarded to Cylindrical grinder, GCU -100, at
IMTEX .
1984 ACE Designers joined as a Principal and introduced ACE auto lathe, a multi-
slide turning machines for manufacturing automotive components..
1987 Introduced CNC grinding machines into our product range.
1990 Group sales turnover crosses 10 Crore.
1994 AMS joined as a Principal and introduced Vertical Machining Centers to
our products range.
1995 "Best Design & Best Product" awarded to vertical machining centers, MCV
320 & MCV 400, at IMTEX.
1996 Introduced horizontal machining centers to our product range.
1998 "Best Design & Best Exhibit" awarded to vertical machining center, MCV
400, at IMTEX.
"FIE Foundation Award", awarded to vertical machining center, 'Winner',
at IMTEX .
2001 Enhanced our product range
o Vertical machining centers (MCV 400XL, MCV 400 S) ;
o Horizontal machining centers ( CMH 600); CNC Lathe (LT 20C,LT
Classic);
o Compact CNC grinder model 'e Grind 200'
"Best Design & Best Exhibit" awarded to drill tap center, DTC 250 F , at
IMTEX.
"FIE Foundation Award" awarded to moving column vertical machining center,
CMV 400 , at IMTEX.
2002 Group sales turnover crosses 100 Crore.

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2003 Became the 1st sales & service machine tool company in the country to attain
ISO 9001 certification.

2004 Expanded service base to over 10 centers.


ACE Micromatic Technology Center at Pune, inaugurated.
"Best Design & Best Exhibit" awarded to vertical machining centers , SONIC
& SPARK, at IMTEX .
Honda Motorcycle & Scooters India Pvt. Ltd , Gurgaon awarded AMS "Best
Supplier"

2005 Largest seller of CNC Lathes in India (crosses over 1000 nos)
2006 ACE Micromatic LPM Center at Bangalore, inaugurated.
Honda Motorcycle & Scooters India Pvt. Ltd , Gurgaon awarded AMS "Best
Supplier",3rd time in a row.
Group sales turnover crosses 500 Crore.

2007 ACE Micromatic Technology Center at Gurgaon inaugurated.


ACE Micromatic LPM Center at Chennai, inaugurated.
Largest seller of CNC Lathes in India (crosses over1600 nos)
Established wholly owned subsidiary at China.

2008 Expanded service base to over 20 centers.

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J. WORK FLOW MODEL:

The work flow model here has a over all objective, to establish a system to review
new enquiry for submission of quotation, follow up of the enquiry, obtain customer
purchase order, review the order to ensure that customers requirements are fully
understood and fully understood and also to ensure that concerned principal has the
capability to meet the requirements.

K. FUTURE GROWTH AND PROSPECTUS:


To improve sales by 20% each year
To provide an extended service by starting satellite branches in different parts of
the country
Reasonable profitability
Increased market share
Start up few more Tech centers for improved customer service
To establish a strong reign in the global market

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L. MAJOR CUSTOMERS:

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3. MCKINSEYS 7S FRAME WORK


INTRODUCTION:

Strategic planning refers to the management process in organizations which


help the management to determine the future impact of change and take current
decisions to reach designed future. The management literature shows instances of
organizations which have laid stress on strategic planning but not have phenomenally
successful.

Consultants at the McKinsey Company, a very well known management


consultancy firm in the United States, developed the 7s framework to diagnose the
causes of organizational problems and to formulate solutions for improvement.

According to Waterman organizational change is not simply matter of


structure, although structure is a significant variable in the management of change.
Again it is also not a simple relationship between strategy and structure, although
strategy is a critical aspect. In their views effective organization change may be
understood to be a complex relationship between strategy, structure, system, skills,
style and super-ordinate goals. The frame work suggests that there a multiplicity of
factors that influence an organization and ability to change and its proper mode of
change.

McKinseys 7s Framework

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STRUCTURE:

The design of organizational structure is a critical task of the top management of an


organization. It is the skeleton of which organizational arrangements and relationships among
various positions and activities.

Organization structure performs four major functions.

It reduces external uncertainty through forecasting, research and planning in the


organization.
It reduces internal uncertainty arising out of variable, unpredictable human behavior
within the organization through controlled mechanisms.
It wide variety of activities through devices such as departmentalization,
specialization and division of labor and delegation of authority.
It enables the organization to keep its activities coordinated and to have diversity in its
objective.

STYLE:

Style is one of the seven that top managers can use to bring about organizational change. It
is one of the so-called II software. Organizations differ from each other is their styles of
working. The style of an organization, according to Mckensey framework becomes evident
through patterns of actions taken by members of the top management team over a period of
time. For ensuring progress of the business various styles are adopted.

MMT adopts top to bottom approach, were in the information flows from top to bottom.

Rules and Decision making flows from top to bottom


Ideas and thoughts ill go from bottom to top

Participative Style:

The subordinates have got full knowledge of the aims and the objective of the
organization
The employees are well trained and experienced
The are really interested in taking active participation and are ready to take
responsibility
There is enough time for the employees to take part in the discussion
The leader is really interested in giving a scope to the subordinates to develop
analytical and self control abilities
Reward and involvement are considered as the fundamental tools of motivation and
control

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STAFF:

Staffing is the process of acquiring human resources for organization and assuring that have
the potential to the achievement of the organizational goals. The staffing function applies to
the whole organization that is it cuts across all organizational levels through the processes
may be different for different kinds of jobs. Manpower is a great asset for any organization.

A well dedicated manpower brings better results for the company as expected. Hence care is
required to be taken for the welfare of the staff and workers. This is the evident by seeing the
turn over of the staff generally which is below personnel categories within the organization
e.g. academics, administrators, technicians. According to Waterman, the terms staff refers to
the way organizations introduces young recruits into main stream of their activities and the
manner in which they manage their careers as the new entrants develop into managers.

Micromatic Machine Tools has highly committed and devoted workforce. Its HR mission is
to enable all those working for Micromatic Machine Tools to give out their best to ensure
their all round growth as well as that of the organization.

Technical staff

These are the staffs that are responsible for the work related to technical aspects which
involves the marketing executives and service executives. There are a total of 204 technical
staffs in MMT around India.

Non Technical staff

These are the staffs other than the technical and the admin staffs which include the staff like
drivers, peons, accountants receptionist etc. There are a total of 44 Non Technical staffs.

Supervisory staff

These are the personnels who are incharge with supervising the other employees in the
organization. Experienced staffs mainly constitute this division of staffs, so they can guide
the other employees as per the organization needs. 29 staffs come under this category of
staffs.

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SYSTEMS:

Systems in the 7s framework refers to all the rules, regulations and procedures, both
formal and informal that complements the organization structure. In other words, it is the
equipment of the term infrastructure. It includes the control system, cost accounting
procedures, capital budgeting systems, recruitment, training and development system,
performance evaluation systems etc., to have a proper implementation of the proposed
methodologies.

Recruitment and Training:

Manpower requirements planning in each dept. is identified by the Dept. head. The
respective personnel requirement is placed out to the HR head. In turn the HR head receives
the application from the prospective candidates for recruitment process.

Once the joins the organization detailed training programme is involved based on the skills
required for the job and a regular appraisal of the employees is done based on which the need
for the training is observed.

STRATEGY:

Strategy is a plan or course of action leading to the allocation of an organizations finite


resources to reach identified goals.

Some of the important strategies adopted by the organization are as follows,

Maintaining manpower at optimum levels to meet the objectives & goals of the
organization.
Create leadership with shared vision at various levels in the organization.
Focused development of core competence in high tech areas.
Building cross functional teams to satisfy service of the customers.
Bring organization wide awareness of mission, values & organizational goals,
personnel policies on performance based criteria ensuring growth, reward and
motivation.
Structured training programmes address the needs of the service executives, marketing
engineering executives, managerial executives, trainees for the knowledge and skills up
gradation, computerization, attitudinal changes, self development, and supervisory and
managerial skills orientation to the changing requirements specific in various functional
areas.

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SKILLS:

Skills in the McKinsey frame work are the equivalent distinctive competence. The dominant
skills are the distinctive compliance of an organization are apart of the organizational
characters. An organization solely depends on the skills of the employees, may be in the
finance, servicing, marketing or the supervisory staffs.

In MMT it is ensured that during the time of selection itself the candidate is qualified for the
prospective job in the relevant area. Skilled personnel are much easier to work with and
ensure smooth run of the organizational work.

MMT has been imparting necessary skills in the form of;

On the job training:

In this method the employee is placed on his new assignment and guidelines given on the
nature of his job and functions. The trainee learns on the actual equipment under the
guidance of his/her seniors.

Organized Training Courses:

Based on the training needed, organized training courses are conducted. The employees are
sent to the principals for technical training and monitored. The employees are even sponsored
for external programs conducted by various institutions for soft skill development. The
training is imparted by either external faculties/ internal faculties.

Interpersonal Skills:

The skill is closely related to the staff that are the distinctive abilities and talents that
organization possesses. Skills may range from ability of a staff to speak multiple languages,
computer skills etc.

The marketing and servicing teams have their hands and experience in machine tool
engineering products, especially targeted at sales and relationship management. MMT has a
strong technical team comprising of qualified engineers and trained personnel. The CRM
executives are well trained and more skilled in handling the online CRM software to enhance
the efficiency in handling the customer calls.

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SHARED VALUES:

Mission:-
We will recognize our responsibilities as corporate citizens to foster progress, to promote
general welfare of the society.

We will respect and empower individuals in the organizations and provide a caring
environment conducive for growth.

We will be seen as trust worthy, proactive, ethical organization offering one stop solution and
continuous support to customers with the added assurance of meeting the customers
requirement in time and every time.

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ORGANIZATION STRUCTURE CHART:

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DEPARTMENTAL STUDY:
MARKETING DEPARTMENT:
The main objective of this dept. is to establish a system to review enquiry for submission of
quotation, follow up of the enquiry, obtain customer purchase order, review the order to
ensure that customer requirements are fully understood and also to ensure that concerned
principals has the capability to meet the requirement.
Enquiry

Quotation

Negotiation

Best offer

Purchase order

Order acceptance

Order execution

Inspection

Delivery

The marketing branch head prepares the Annual forecast for the next financial year
by the beginning of the 4th quarter of current financial year, this forecast is sent to the
corporate office and also to the principals for review and ensure that the business plan and
forecast of MMT is in line with business planning of all the principals.

The branch head and the marketing team conducts exhibition / survey market /
making cold calls / identify specific customer requirements and make personal visits for
prospective potential customers and identify enquiries.

The marketing engineers make analysis and review the enquiry and proceed with the
submission of Quotation to the customers for standard machines. They receive even the
enquiries for the tooled up machines (machines with customers specification) which is sent
to the principals for all tooled up enquiries so that the principals can carry out the feasibility
of manufacturing.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

Once the feasibility of the enquiry from the principal end is accepted the order from the
customer end is received, moving with the formalities of purchase order (sales ID, order
forwarding format, fill up of MMT customer segmentation form, advance etc.) the order is
executed. In case, for a tooled up machine the marketing engineer arranges for coordination
of customers visit for trial at the principals end. If the customer wants inspection of the
standard machine, visit of customer to the principal end is arranged. Finally the order is
closed with the dispatch of machine with an insurance cover.

SERVICE DEPARTMENT:
The main objective of the servicing dept. is to establish a system for providing after
sales service and commissioning to perform, verify and report any activity related to
servicing.
MMT carries the 365 day servicing, through its skilled service engineers who are well
trained to handle these machines and by providing its customers with commissioning,
preventive and break down maintenance, spare parts support.

Commissioning (Installation):
Based on the dispatch order received from the principal the service engineer make a brief
study on the history of the sales order and will carry out the commissioning as per the
instruction for machine commissioning. After successful commissioning the service engineer
carry out the process of commissioning report and closes the incident.
Breakdown calls & Spare Parts Support:
The service support receives and creates incident for breakdown calls by ensuring incident
type as break down. The queries are mostly solved through phone, if not the query is
transferred to the service engineer where in he proceeds with the servicing formalities may
be, replacing the worn out part, verification of the machine. If the spare of the machine is to
be replaced the service engineer checks whether the machine is still under warranty or out of
warranty or for the customers stock. After the dispatch of the spares and servicing the
incident is closed.
Preventive Maintenance (AMC):
This is a contract which has a benefit of an extended annual maintenance warranty to the
customers of MMT. The customers who are in the end proximity of the warranty period,
are mailed a Out-of-warranty intimation letter one month prior to out of warranty date, based
on the machine commission list. After getting the confirmation from the customer, quotation
of the same is sent along with the contract terms and condition. Once the order is accepted by
the customer the incident is updated, by preparing the AMC (Annual Maintenance Contract)
receipt sheet.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

FINANCE DEPARTMENT:

Finance department is the important department of any organization and is necessary to


design this department. Any organization big or small, private or public, it needs finance for
its functioning. Hence, finance dept. is an integral part of the organization. This department is
not only responsible for raising funds but it also looks after the proper allocation and
utilization of funds. Other departments are affected by the functioning of finance department.

If the financial status of the organization is sound then other departments function
smoothly. For example; if the financial status of the organization is sound then the
organization can think of producing a new product or can hire more employees or can spend
more in marketing, participating in trade fairs, expos etc., so the finance department can be
called the heart of the organization.

The functions of finance department:

To prepare and maintain journals, ledger, profit and loss accounts and balance sheet for
every year.
To analyze the financial position of the organization by maintaining the required records
and by preparing and analyzing the financial statement of the company.
To make calculations and make decisions regarding the funds of the company
accordingly.
To forecast the future requirements of funds and takes decisions to fulfill the
requirements efficiently.
To assess the working capital of the organization and also it decides the sources for
raising such capital.
To take decision concerned with the investment funds.
To review the yearly expenditure and income.
To plan the yearly budget through a systematic manner.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

HR & ISO DEPARTMENT:

Human Resource Department is one of the important departments in organization. The


management of human is viewed as a system in which participants seeks to attain both
individual and group goals.

HRM is concerned with the people dimension in management. Since organization is made up
of people, acquiring their services, developing their skills, motivating them to high level of
performance & ensuring that they continue to maintain their commitment to the organization
they are thereby essential in achieving the organizations objectives.

Recruitment:

The manpower requirement is budgeted for the year or recruitment is given for replacements
as and when a vacancy is created. Based on this the HR head will scrutinize for any internal
job transfer, if not they opt for the external recruitment sources. The recruitment sources
chosen would be advertisement, employment agencies, employee referrals, campus
recruitment, job posting etc.

The candidate is short listed based on the education, prior experience, knowledge based
competencies, behavior based competencies, job-related competencies and interpersonal
skills. So selected candidate is notified for a personal interview and other formalities of the
recruitment process are followed, at last the employee is inducted into the organization.

Training:

This procedure is designed and documented to ensure that training is provided to all the
personnel performing activities affecting quality and to ensure competency to carry out the
activity.

The training needs are identified and recorded in the training need identification form as per
the Skill matrix maintained branch-wise.

Training need for the newly joined personnel is met through;

Induction Training
On the job training
Organized training courses

Induction Training:

This training gives clear picture information about organization, nature of work, disciplinary
rules and introduction with employees; training is given through a power point presentation,
brochures or verbal discussion with new recruit.
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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

On the job training:

In this method the employee is placed on his new assignment and guidelines given on the
nature of his job and functions. The trainee learns on the actual equipment under the
guidance of his/her seniors

Organized Training Courses:

Based on the training needed, organized training courses are conducted. The employees are
sent to the principals for technical training and monitored. The employees are even sponsored
for external programs conducted by various institutions for soft skill development. The
training is imparted by either external faculties/ internal faculties.

The effectiveness of the training will be evaluated considering the possibility of


implementation of the topic either through feed back on training or by conducting a test after
the program. If the training is found to be ineffective the training is planned again for the
concerned employee.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

4. SWOT ANALYSIS:

- Geographical
- Well trained and difference.
flexibility manpower. - Co-operation from the
- Good brand image in the customers.
industry. - Time delay in clearing
- Largely scattered the queries.
servicing teams all over
India.

- Increase in
- Can capitalize on
competition due to
upswings in market
the new technological
demand because of all
changes globally.
India presence.
- Setting up of full-fledged
Tech centers.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

5. LEARNING EXPERIENCE:

It was a great experience to work in Micromatic Machine Tools and it gave me a good
exposure as to how the real world of organization functions and how we can use it in a
profitable manner.

The main purpose of the organization study is to make myself acquainted with the practical
knowledge about the overall functioning of the organization, which took place in the perfect
manner.

This implant training has given me an opportunity to study the process of supply chain
management and also made me to analyze the movement of spare to different region
across India.
The interaction with the organization gave me an insight and a first hand experience of
the industrial scenario in the competitive environment outside the realms of the institute.
My constant interaction with the marketing engineers and marketing head helped me
understand the handling of sales purchase order and the various steps in it.
The service engineers helped me in understanding the after sales service, installations,
the various types of service calls they receive from the customers end and finally the
handling of the annual maintenance contract.
The store coordinator made me understand the various functioning aspects of the supply
chain process.
Moreover, the atmosphere was so friendly and i did not feel any tinge of difficulty
during the whole training period of eight weeks, which gave me a great knowledge of
information and knowledge as to how an organization really functions.
The implant training provided me an opportunity to relate classroom learning with the
reality of management.
I also learnt how the companies always feel the pulse of the customers, because
customers are the purpose of business and they being the sole providers of giving
business.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

1.A. GENERAL INTRODUCTION:


Supply Chain Management
Introduction:
Supply Chain Management encompasses the planning and management of all
activities involved in sourcing, procurement, conversion, and logistics management
activities. Importantly, it also includes coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third-party service providers, and customers.
In fact, Supply Chain Management integrates supply and demand management within
and across companies. 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.

Definition:
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. 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
(supply chain).

Activities/Functions Of SCM:
Supply chain management is a cross-functional 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.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

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.
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 Management 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 optimization, including the number, location, and size of
warehouses, distribution centers and facilities.
Product designs coordination, so that new and existing products can be optimally
integrated into the supply chain, load 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.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

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.
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.
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 and transportation to
customers.
Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

Components Of Supply Chain Management


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. 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 reengineering, buyer-supplier relationships and SCM 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

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B. THEORETICAL BACKGROUND

FLOW CHART OF SPARES PART FROM PRINCIPAL TO


MICROMATIC AND MICRO MATIC TO CUSTOMERS:

The flow chart explains about the process of supply of spare parts, thus Principals,
Micromatic and their Store head takes place to provide the needful for the customers.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

PRINCIPALS
Ace Micromatic Group, which includes the manufactures of Machines and spare
parts.

ACE MANUFACTURING SYSTEM


MICROMATIC GRANDING LTD
ACE DESIGNER
PRAGATI

These companies are the manufacturer of machines like turning, milling, grinding and spare
parts of these machines. These companies are located in Bangalore.

The order is placed by the MMT to the manufacturer (Principal), customers have to contact
to MMT for the order placement of machines and machine spare parts.

These orders will be placed by MMT to manufacturers (Principals). Principals will


accordingly respond to MMT about the confirmation of the order

Customers will not directly contact the principal for the purchase of machine or regarding
any service.

MICROMATIC MACHINE TOOLS PVT LTD


Customers will have to contact Micromatic for the purchase of machines and machine spare
parts and thus customers will have to send an quotation for the documentation and the
purchase order will be recorded and further process will be done.

For the order placement customers need to send a quotation about their requirement, if the
parts are available at stores the dispatch process will be in short time.

If the parts are not available then MMT will order the requirement to its Principals.

The MMT will work here as a sales and service provider to its Principal and customer.

MMT has 31 branches across India and they have both store heads and satellite branches for
the needful of customers.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

For machine spare parts there are store head who supply the parts to the customers, some of
the store head are,

STORE HEADS
BANGALORE

GURGAON,

JAMSHEDPUR

MUMBAI

PUNE

CHENNAI,

COIMBATORE,

KOLKATA

AURANGABAD

These store are spread across India to meet the customer requirement, so that customers do
not face any problem regarding their requirement

Store head will get the spare parts from Micromatic

As per the customer requirement MMT has gained a huge coverage of branches throughout
India. There are satellite branches as well for the growing cities.

Customer can place the order in their respective area without consuming more time the spare
parts will be available at their door.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

I. STATEMENT OF THE PROBLEM:


Micromatic Machine and Tools have got major problem in developing for SCM,
logistics and their related issues and to understand the impact of policy making on SCM,
logistics planning and implementation.

Micromatic Machine and Tools have got problems during recording documentation
(quotation and purchase) part as well as time consumed to get Machine spare part from the
Principals or suppliers and delivery time to their customers.

Micromatic Machine and Tools have also faced problems regarding using right
person for right job and also not using their manpower wisely.

They also got problem regarding the records of wrong materials supply and late
delivery.

Thus, there arises the need to Systematic Machines Spares flow: Cuts Costs,
Saves Energy and Time

II. THE OBJECTIVES OF THE STUDY :

To identify major challenges and developments for SCM, logistics and their related
issues in Micromatic Machine and Tools.
To understand the impact of policy making on SCM, logistics planning and
implementation.
To investigate the Customer response time and delivery of Spares in MMT for
Customer delight.

To identify major challenges of CNC Machine spares movement, logistics and their
related issues and develop/propose a systematic flow/process for Centralized SCM in
Micromatic Machine and Tools.

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III. SCOPE OF THE STUDY:

This study was conducted to find out, how the Supply Chain Management is working, and to
know does the flow of spare part of machines is in a systematic manner in Micrometric
Machine Tools Pvt Ltd.

To know the current Supply Chain Management process in Micrometric machine


tools.
To know the respone time and the delivery period by micrometric machine tools.
To take some steps to improve the supply chain systems.
To know the documentation(quotation and purchase order) process
And also to know if any late delivery complaints or wrong material supply.

IV. METHODOLOGY

A proper plan made before taking up any project, helps to complete the project
successfully. So, a little effort has been made to plan how the project should be, to know the
purpose of undertaking the project and the project and the methodology to be used in the
project.

Collection of data is one of the basic step towards a successful project. The data
required by the project are collected through the following methods:-

1] Primary Data:-

Much of the information collected of this project is primary in nature. They are
collected through mail and on phone, and also through survey method with the help of
questionnaires & the questionnaires were sent to the respective Store coordinator of
respective Stores head department across India.

2] Secondary data:-

Internal Secondary data:-

This was generated within the organization with the help of purchase/sales invoices,
and other documents.

External Secondary data:-

This data refers to the data collected from website (Internet) newspapers, magazines.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

Aim:
To investigate the current situation and future prospect of supply chain management and
information systems of Machine Spares at Micromatic.

V. LIMITATIONS:

The project was limited to a time period of only 2 months.


Hesitation of people to disclose confidential matters.
Number of respondents taken for the survey was too small. Thus, generalization may
not be appropriate.
The area covered for the survey and for interaction with the suppliers was too limited.
Thus leading to coverage limitations.
The respondents information may be a little bit biased.
Research investigation is restricted to selected key personnel of the organization

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DATA ANALYSIS
1. How do you manage your supply chain of machine spare parts?

Table no - 01

Close electronic
Plan vertical E- partnershi data JIT
Particulars outsourcing 3PL
strategically integration Procurement p with interchang supply
principals e

Store heads 4 0 1 0 0 3 0 2

Graph - 01

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

The supply chain management is an important factor considered by the company. It includes
whether all the various processes are in alignment or not and also the systematic flow of
Spare parts to customers.

Interpretation:

According to the survey, most of the stores considered the supply chain management
of the company to be Plan strategically. Out of the 10 Stores across India surveyed, 4 found it
to be Plan strategically , 1 found it to be E-procurement, 3 found it to be Close Partnership
with Principals,2 found it to be JIT supply for managing their supply chain management.
None of them are using vertical integration, outsourcing, 3rd party logistic (3PL) nor do
electronic data interchange.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

2) How successful do you think is your company in managing its supply chain?

Table no - 02

Particulars Outstanding Excellent Good Average Satisfactory


Store
0 3 6 1 0
heads

Graph - 02

3 6

2
3
1
1
0 0 0
a) Outstanding b) Excellent c) Good d) Average e) Satisfactory

Addressing, according to Store head coordinators concerns effectively how they think
there department is successful in managing its supply chain. With the help of the survey
conducted, its clear that the Store head coordinators have given good response.

Interpretation:

Out of the 10 stores department surveyed, 3 of them found it to be Excellent, 6 of


them found it to be good, 1 found them found it to be Average. None of them found it
Outstanding or any of them are Satisfactory.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

3. What types of systems are currently in use in your company to support Stores
department?

Table no - 03

Particulars MRP ERP CRM SRM JIT CS


Store
2 2 2 0 4 0
heads

Graph - 03

4.5
4
4
3.5
3
2.5
2 2 2
2
1.5
1
0.5
0 0
0
a) MRP b) ERP c) CRM d) SRM e) JIT f)Centralized
stores

Addressing, according to Store head coordinators concerns which type of systems are
currently in use to support department. With the help of the survey conducted, its clear that
the Store head coordinators have given good response.

Interpretation:

Out of the 10 stores department surveyed, 2 of them found it to be using MRP, 2 of


them found it to be using ERP, 2 of them found it to be using CRM, 4 of them found it to be
using JIT supply. None of them found it SRM or any of them are using centralized stores.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

4. What numbers of personnel are engaged in Stores department?

Table no 04

Particulars Less than 2 2 to 4 More than 4


Store
6 4 0
heads

Graph - 04

7
6
6

5
4
4

1
0
0
a) Less than 2 b) 2 to 4 c) More than 4

It is very important for the company to use their manpower in a proper and effective
way so that they get the work done in minimum time and get profit, the survey was done to
find out how many personnel are engaged in stores department in different area.

Interpretation:

Out of the 10 stores department surveyed, in 6 of the head branch personnel engaged
are less than 2,and in the other branch 2-4 personnel are engaged, thus none of the branches
are having more than 4,thus they are using their manpower wisely.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

5. On an average what is the number of Enquiries you receive for machine spare parts
per day from Customers?

Table no 05

Particulars Less than 2 2 to 4 5 to 10 More than 10 10 to 20


Store
1 0 7 1 1
heads

Graph - 05

8
7
7
6
5
4
3
2
1 1 1
1
0
0
a) Less then 2 b) 2 to 4 c) 5 to 10 d) More then 10 e) 10 to 20

Thus the company is having huge number of customers, All the customers require
immediate response to their enquires. The survey conducted shows that the how many
enquiries are received per day for Machine spare part.

Interpretation:

Out of the 10 store branch surveyed 1 branch receives less than 2 enquiries per day, 7
branches receives 5-to10 enquiries per day, 1 branch receives more than 10 enquiries per day,
1 branch receives more than 10-20 enquiries per day, according to the survey none of them
receives 2-4 enquiries per day.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

6) For Machine spares which are available in Stock, what is average response time for a
stores coordinator for ,

A. Completion of (quotation and purchase order) documentation procedure

Table no 06

Particulars 2 hour 5 hours Within 1 day

Store heads 4 3 3

Graph - 06

4.5
4
4

3.5
3 3
3

2.5

1.5

0.5

0
a) 2 hours b) 2 to 5 hours c) within 1 day

Thus after the enquiries received the further process is to complete the
documentation, the survey is done to know what is the response time taken to complete the(
quotation purchase order) documentation.

Interpretation:

Out of the 10 store branch surveyed 4 branches response within 2 hours, 3 branches
response between 2-to5 hours, 3 branches response within one day, this shows the response
time of the different branches from different location.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

B. Delivery of Spares to Customers?

Table no 07

Particulars 2 hour 5 hours Within 1 day

Store heads 1 3 6

Graph - 07

7
6
6

4
3
3

2
1
1

0
a)2 hours b) 2 to 5 hours c) within 1 day

Thus after the response time received the further process is to complete the delivery
of spare part to the customer, the survey is done to know what is the time taken to complete
the delivery of spare part to the customer.

Interpretation:

Out of the 10 store branch surveyed 1 branch delivery of spare part within 2 hours, 3
branches delivery of spare part between 2-to5 hours, 6 branches delivery of spare part within
one day, this shows the response time of the different branches from different location.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

7. For Machine spares which are out of Stock, what is average response time recorded
to deliver to the Customer?

Table no 08

Particulars Less than 2\3 days less than week more than week

Store heads 2 5 3

Graph - 08

5
5

3
3

2
2

0
a) Less then 2\3days b) Less then a week c) More then a week

When the machine spares part are out of stock ,then how much time is taken to
deliver the part to the respective customer, thus the company cannot delay the delivery as
customer cannot wait or might switch to some other suppler.

Interpretation:

Out of the 10 store branch surveyed 2 branches delivery of spare part within 2\3 days,
5 branches delivery of spare part in less than a week, 3 branches delivery of spare part more
than week, this shows the delivery of the spare part from different branches from different
location.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

8). What is the present method of getting a Machine Spare Part which is out of Stock?

Table no 09

Particulars through principals external suppliers

Store heads 10 0

Graph - 09

10

6
10
4 0
2

0
through principals external suppliers

When the machines spare parts are out of stock, it is very important that the stocks are
refilled within time so that there is no delay in the supply of delivery. What is the present
method of the branches to get the machine spare part is find out.

Interpretation:

Out of the 10 store branch surveyed 9 branches get the machine spare part from the
principals, and only 1 branch uses both principals and external suppliers.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

9. What is the average response time recorded to get a Spare part, which is Out of Stock
from the Principals?

Table no 10

Particulars 2 to 5 hours within 1 day less than 2\3 days less than week

Store heads 0 0 7 3

Graph - 10

8
7
7

4
3
3

1
0 0
0
a) 2 to 5 hours b) within 1 days c) Less then 2\3 days d) Less then a week

When the machines spare parts are out of stock, it is very important that the stocks are
refilled within time so that there is no delay in the supply of delivery. What is the average
response time taken from the principals to get the machine spare part is to be find out.

Interpretation:

Out of the 10 store branch surveyed 7 branches get the spare part within 2\3 days
from principals, 3 branches get the spare part in less than a week, no branches get the spare
part within one day or within 2-5 hours.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

10. What is the average response time recorded to get the Spare parts, which is Out of
Stock from your supplier?

Table no 11

Particulars 2 to 5 hours within 1 day less than 2\3 days less than week

Store heads 1 0 4 5

Graph - 11

5
5

4
4

1
1

0
0
a) 2 to 5 hours b) within 1 days c) Less then 2\3 days d) Less then a week

When the machines spare parts are out of stock, it is very important that the stocks are
refilled within time so that there is no delay in the supply of delivery. What is the average
response time taken from the suppliers to get the machine spare part is to be find out.

Interpretation:

Out of the 10 store branch surveyed 1 of the branch gets the spare part within 2-5
hours, 4 branches get the spare part within 2\3 days from principals, 5 branches get the spare
part in less than a week, no branches get the spare part within one day .

Department of PG Studies Jnana Sangama VTU Belgaum. 51


Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

11. Is there any case recorded by the Stores department for documentation delay?

Table no 12

Particulars yes no

Store heads 3 7

Graph 12

7
6
5
4
3
7
2
3
1
0

a) YES
b) NO

It is very important that customer response should be done within time, if any delay in
the response the company should take care over it, and thus delay should be recorded by the
respective branch,

Interpretation:

Out of the 10 store branch surveyed only 3 branches keep the record of
documentation delay, and other 7 branches do not keep any record for the delay.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

12. Is there any case recorded by the Stores department in which the other Satellite
branches/ Customers complained late delivery/ wrong material supply?

Table no 13

Particulars yes no

Store heads 7 3

Graph 13

8
7
7

4
3
3

0
a) YES b) NO

It is also very important to record for the wrong delivery and customer complained
about late deliver, if any delay or wrong material supply company should take care over it,
and thus delay should be recorded by the respective branch,

Interpretation:

Out of the 10 store branch surveyed only 7 branches keep the record for the wrong
delivery and customer complained about late deliver, and other 3 branches do not keep any
record for the wrong delivery and customer complained about late deliver,

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

13. What kind of transportation does the Branch / Satellite branch presently rely
upon?

Table no 14

Particulars Two wheeler (In person External transport (3/4 wheeler Couriers

Store heads 5 1 4

Graph 14

5
5

4
4

1
1

0
a) Two wheeler (in person) b) External transport (3/4 wheeler) c) Couriers

Thus transportation takes a very important part in any company, thus the supply of
machine spare parts to the customer within time makes the customer satisfy,

Interpretation:

Out of the 10 store branch surveyed only 5 branches rely upon two wheeler (in
person), 1 branch rely upon external transport (3/4 wheeler) and other 4 branches rely upon
couriers,

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

14. Is your organization/business unit concerned about supply chain risks, according to
the cur-rent growth process of the organization, which of the following needs much
attention and progress to boost the handling of Spares?

Table no 15

Systematic &
Quality Check Packing
Standardized FIFO (Manual On time
Particulars Kanban before &safety in
flow pattern /Automated) delivery
dispatch handling
of Parts
Store
2 3 1 2 2 0
heads
Graph 15

3.5 3
3
2.5 2 2 2
2
1.5 1
1
0.5 0
0

Every organization is concerned about the risk regarding to their respective work,
according to the current process of the organization we need to look which system of supply
chain helps the organization to boost the handling of spares.

Interpretation:

Out of the 10 store branch surveyed only 2 branches pay much attention on
Systematic & Standardized flow pattern of Parts, 3 branches pay much attention on FIFO
(Manual/Automated), 1 of the branch pay much attention on Kanban, 2 branches pay much
attention on JIT delivery (on time), 2 branches pay much attention on Quality Check before
dispatch, thus none of the branches have to pay attention on Packing &safety in handling.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

15. Do you think a CENTRALIZED STORES supply chain management system will
help you to overcome the drawbacks of the existing systems?

Table no 16

Particulars yes no

Store heads 7 3

Graph 16

8
7
7

4
3
3

0
a) YES b) NO

Centralized store can help the organization for the systematic flow of parts from
principals to branches and from branches to customers,

Interpretation:

Out of the 10 store branch surveyed only 7 branches wants centralized stores should
be bought up in the system of supply chain, and other 3 branches do not wants centralized
stores should be bought up in the system of supply chain.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

FINDINGS:-
Based on the data collected through survey certain suggestions are made for Micromatic
Machine Tool Pvt Ltd, The following are,

I. From the analysis, it was found that branches like Bangalore, Gurgaon,
Jamshedpur and Mumbai are managing their supply chain through planning
strategically. The only branch making use of technology is Pune they are using E-
procurement. Branches like Chennai, Coimbatore, and Aurangabad are managing
through close partnership with Principals. And the other 2 head Kolkata and
Kolhapur are using JIT strategies.

II. It was observed from the survey that branches like Bangalore, Gurgaon and
Aurangabad are satisfied and rate themselves as excellent while asked about the
success, other branches like Pune, Coimbatore, Jamshedpur, Mumbai, Kolkata
and Kolhapur rate themselves as good and only Chennai branch rated them as
avenge, .

III. It was found from the survey that branches like Kolhapur and Mumbai are using
MRP[Material Requirement Planning], branches like Coimbatore and Bangalore are
using ERP[Enterprises Resource Planning], branches like Chennai and Pune are
using CRM[Customer relationship Management], branches like Gurgaon
,Aurangabad ,Jamshedpur ,Kolkata are using the system JIT supply.

IV. It was also found that 6 branches have got 1, or 2 personnel engaged in store works ,
and other 4 branches got 2-4 personnel engaged

V. It was observed from the survey that 7 of the branches gets 5-10 enquiries daily and 2
of the branches gets more than 10,

VI. When the machine spare part is out of stock, the delivery to the customer might be
late, from the survey we came to know that 50% of the branches receive the parts
within a week, this make the customer wait and he may switch to other supplier. It
better to tot up the stock before its out of stock.

VII. From the survey we found that the Machine spare part which are out of stock, more
than 50% of branches receive the spare within a week or within 2\3 days from
Principals or Supplier.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

VIII. From the analysis, it was found that branches like Kolhapur, Mumbai ,Jamshedpur
do not record any case for wrong material supply/late delivery, branches like Pune
Jamshedpur, Coimbatore, Aurangabad , Jamshedpur, Mumbai, Kolhapur do
not record any case for documentations delay.

IX. From the analysis, it was found that 5 of the branches rely upon two wheeler (in
person) transport facility, and 4 of the branches rely upon Couriers.

X. From the analysis, it was found that only 2 branches like pay much attention on
Systematic & Standardized flow pattern of Parts, 3 branches pay much attention on
FIFO (Manual/Automated), 1 of the branch pay much attention on Kanban, 2
branches pay much attention on JIT delivery (on time), 2 branches pay much attention
on Quality Check before dispatch, thus none of the branches have to pay attention on
Packing &safety in handling.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

SUGGESTIONS
The company should try to maintain as well as improve or keep strategies like JIT for
all the stores so that the work flow shall be smoother and customer gets the parts on
time.

Thus the company should try to make other branches to follow as branches who have
rated themselves as excellent this will helps the company to be more successful.

Thus different branches have got different type of system ,if all the branches gets
same type of system like CRM then for the branches it will be helpful to collect and
find data of customers easily and satisfy the existing customers

The company should look forward to make it more affordable to use the manpower
wisely as they are using their qualified employee for stores work.

Thus the branches have to see that all the enquiries are attained and no delay in
documentations must occur, this helps the company and customers with positive
response.

If proper supply of spares is done on time or within a day it will be more helpful for
the company to gain a positive note from the customers. The company needs to talk
with the Principals or Supplier to supply the parts within a day when its possible to
do it.

It is very important that the company should keep the records of documentations and
the records of wrong material supply/late delivery; this helps the branches to know
where they are committing mistakes and what exactly is going wrong.

We know that in supply chain transportation acts as a back bone, the company need to
have a proper transport facility so that the parts are delivered within time, its better to
have a separate transport facility so that the company should not rely upon others.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

Risk is the pat of each company if the company tries to avoid risk and make proper
use of current system the risk can be avoided, thus Systematic & Standardized flow
pattern of Parts, FIFO or Kanban may help in avoiding the risk.

Accordingly centralized stores might help to overcome the drawbacks.

As there are variety of models or spare part it is important to specific the details of
parts properly to the branches by the principals and the company.

A proper supply chain programme should be maintained for all the branches across
India.

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

CONCLUSION
The Machine Industry has opened up and all the Govt. policies are in favour of the
Industry today. The whole scenario is very much promising and is to stay for a long time.

Micromatic Machine and Tools has vast experience in this field and the goodwill that
it has earned over the years is just unmatchable. It is the first Industry of its type to be set-up
in the whole region. The Company has always changed with the changing times and growing
competition. It has maintained cordial relations with its Principals and suppliers and their
customers over the years.

The company should try to introduce more Supply Chain Management software and
use new technology like E-commerce, Bar Coding and Scanner. The latest technology is
RFID (Radio-Frequency Identification) it can be used to monitor and manage the movement
of the finished products RFID tags can be attached directly to the items. This helps in
meeting the delivery schedule of the customers in time

The company should also try to work on Centralized store which definitely helps in
systematic flow of spares to main/satellite branches as well as customers

They have taken their first step towards this direction & with the huge customer base
& goodwill that they have, a Bright and promising future awaits them.

Department of PG Studies Jnana Sangama VTU Belgaum. 61


Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

ANNEXURE
QUESTIONNARIE
Systematic Machines Spares flow: Cuts Costs, Saves Energy and Time

Aim:

To investigate the current situation of CNC Machine Spares movement between


Micromatic

Machine Tools and Customers and future prospect of Centralized supply chain
management and information systems all over India.

Objectives:

To identify major challenges of CNC Machine spares movement, logistics and their
related issues and develop/propose a systematic flow/process for Centralized SCM in
Micromatic Machine and Tools.
To investigate the Customer response time and delivery of Spares in MMT for
Customer delight

Name of the Stores coordinator: _______________________________

Store Coordinator Reporting Head: _____________________________

Contact No: ______________________________________________

Name of Branch /Satellite Branch______________________________

Date of the questionnaire: ____/____/_____

1. How do you manage your supply chain of machine spare parts? Tick all that apply

Plan strategically Vertical integration

E-Procurement Outsourcing

3rd party logistic (3PL) Electronic Data Interchange (EDI)

Close partnership with Principals JIT supply

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

1. How successful do you think is your company in managing its supply chain
in general?

Outstanding Excellent Good Average Satisfactory

2. What types of systems are currently in use in your company to support Stores
department?

Material Requirements Planning (MRP) Enterprise Resource Planning (ERP)

Centralized stores Customer Relationships Management (CRM)

Supplier Relationships Management (SRM) Just In Time (JIT)

3. In what level your company is facing the problems, when using these systems?

.............................................................................................................................................

..........................................................................................................................................

4. What numbers of personnel are engaged in Stores department?

Less than 2 2 to 4 More than 4

On an average what is the number of Enquiries you receive for machine spare parts per day
from Customers?

Less than 2 2 to 4 5 to 10 More than 10 10 to 20max

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

5. For Machine spares which are available in Stock, what is average response time for a
stores coordinator for ,

A) Completion of (quotation and purchase order) documentation procedure?


< 2 hours 2 to 5 hours within 1 day

B) Delivery of Spares to Customers?

< 2 hours 2 to 5 hours within 1 day

6. For Machine spares which are Out of Stock, what is average response time recorded to
deliver to the Customer?

Less than 2/3 days Less than a Week More than a Week

7. What is the present method of getting a Machine Spare Part which is out of Stock?

Through Principals External Suppliers

8. What is the average response time recorded to get a Spare part, which is Out of Stock
from the Principals?
2 to 5 hours within 1 day less than 2/3 days less than a Week

9. What is the average response time recorded to get the Spare parts, which is Out of
Stock from your supplier?

2 to 5 hours within 1 day less than 2/3 days less than a Week

10. Is there any case recorded by the Stores department for documentation delay?

YES NO

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Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

11. Is there any case recorded by the Stores department in which the other Satellite
branches/ Customers complained late delivery/ wrong material supply?

YES NO

12. What kind of transportation does the Branch / Satellite branch presently rely upon?

Two wheeler (In person) External transport (3/4 wheeler) Couriers

13. Is your organization/business unit concerned about supply chain risks, according to
the current growth process of the organization, which of the following needs much
attention and progress to boost the handling of Spares?

Systematic & Standardized flow pattern of Parts FIFO(Manual/Automated)

Kanban Packing &safety in handling

On time delivery Quality Check before dispatch

14. Do you think a CENTRALIZED STORES supply chain management system will help
you to overcome the drawbacks of the existing systems?
YES NO

15. Any suggestions


........................................................................................................................................
........................................................................................................................................
..

THANK YOU For any queries related to complete the Questionnaire kindly
contact

Mr. Abhilash on mob: 95356 13491

Department of PG Studies Jnana Sangama VTU Belgaum. 65


Systematic Machines Spares Flow: Cuts Costs, Saves Energy And Time

BIBLIOGRAPHY

Books:

Marketing Management Philip Kotler,12th edition


Textbook of logistics and supply chain
management,D.K.Agarwal,2003 edition

Websites:

www.acemciromatic.net
www.google.co.in

Department of PG Studies Jnana Sangama VTU Belgaum. 66