CHAPTER-1

INTRODUCTION

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 INTRODUCTION
Here we are focusing on “SUPPLY CHAIN MANAGEMENT IN MINDA

CORPORATION LTD., NOIDA” And on the basis of that we are predicting the image of a

company and its impact on the consumers. Since a lot of opportunities are available in the

automobile accessories market and there are lot of COMPANIES are operating in INDIAN

market. The Minda Corporation Ltd. enjoys market leadership in security systems for the

automotive industry.

Supply Chain Management is now a days very important for every industry so it is very

important to have a knowledge about supply chain of every company by which they can plan

for future and make strategies for the short term as well as for long term.

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 is a cross-function approach to manage the

movement of raw materials into an organization, certain aspects of the internal processing of

materials into finished goods, and then the movement of finished goods out of the

organization toward the end-consumer. Problems can be in distribution channel &

information flow

Company’s supply chain is an integral part of its approach to the markets it serves. The

supply chain needs to respond to market requirements and do so in a way that supports the

company’s business strategy. The business strategy a company employs starts with the needs

of the customers that the company serves or will serve. Depending on the needs of its

customers, a company’s supply chain must deliver the appropriate mix of responsiveness and

efficiency. A company whose supply chain allows it to more efficiently meet the needs of its

customers will gain market share at the expense of other companies in that market and also

will be more profitable.

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Need of the study
Supply Chain Management is very important for any company so that the company can
supply the products to the customers on time. Minda Corporation Ltd. is the largest
manufacturer of security system of automobiles so it needs a very efficient & effective supply
chain so that it can fulfill the customer’s requirement. Supply chain management involves the
use of a set of approaches to integrate efficiently the activities of suppliers, manufacturers,
warehousing providers and retailers, so that goods are produced and distributed in right
quantities, to the right locations, and at the right time, in order to minimize system-wide costs
while meeting customer service expectations. Supply Chain Management examines the role
of SCM in developing quality products and meeting customer demand faster and better than
the competitors. It includes JIT, Lean Manufacturing system, 5S (Methodology), Kaizen.
Study of company’s management according to demand fluctuation.

Scope of the study:

This project will help to understand about the supply chain management, its different
elements and important terms used in a manufacturing firm MCL and position of the
company in this stiff competition. Being a student of management I have come to the
conclusions from the data analysis of the project and given some appropriate suggestion to
the organization.

The company can take decisions according to the suggestions and it will provide better
experience to the students for their bright career.

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CHAPTER-2
COMPANY PROFILE

4
 COMPANY PROFILE:
The MINDA GROUP OF INDUSTRIES has been started in 1958 by Mr. S.L.MINDA. He

has two sons Mr.N.K.MINDA & Mr. Ashok MINDA. Mr. N.K.MINDA is the owner of the

company named MINDA INDUSTRIES LTD. & Mr. Ashok MINDA is the owner of ASHOK

MINDA GROUP OF COMPANIES in which there are 12 companies. Earlier MINDA

CORPORATION LTD. was known by MINDA HUF LTD.

The company is the largest manufacturer of the Mechanical & Electronic Security Systems in

India. Its total sales this year is approx. USD 50 Million and Exports contribute to 20% of

total turnover. It is the OEM's to nearly all the Indian OEM's and supply to Europe and South

East Asia. It has International presence having manufacturing units in Indonesia, Germany

and Czech Republic.

The company is in business of plastic interior parts for cars, locks, switches, window

regulators, immobilizers. Company is Manufacturing security systems (electronic and

mechanical locks, keyless entry system, latches, handles, keys etc.), windows regulator,

wiring harness, zinc die-casting products, instrument panels, fuel tank sensors and interiors

(plastic molding parts)for automobile OEM's.

Headquartered at Noida, Minda Corporation Ltd. is an erstwhile joint venture with

Huf Hulsbeck & Furst GmbH & Co. KG, Germany.

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Fact File

2/3 Wheeler Electronic & Mechanical Security Systems,

Product Range Window Regulator, Polymer Unit - KTSN Germany for

Automotive Industry
Erstwhile Collaborator Huf Hulsbeck And Furst GmbH & Co. KG, Germany
 Indonesia

 Netherlands
International Presence
 Office in Vietnam

 Office in Japan
Exports Over 20% of Total Turnover
Domestic

Manufacturing Noida , Pune , Aurangabad and Pant Nagar

Locations
Capacity 30 Million security systems per annum

ISO 14001
Quality Certification
ISO/TS16949:2002

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 VISION & BUSINESS PHILOSOPHY OF THE COMPANY:

Vision

 Global Business –no geographical restriction

 Respected & Recognized by Stakeholder community

 Great place to work

Business Philosophy

 Customer First

 Focus on Technology to create World Class Products

 Value for Money

 Continuous Improvement

Critical Success Factor

 Customers’ Preferred Supplier

 International Standards

 Global Standards in quality, delivery & services

 Collaboration with global industry majors to provide global standards.

 Develop internal competencies of global standards

 Speed: Total product delivery time

 Concept to design

 Design to engineering

 Engineering to production

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 ASHOK MINDA GROUP OF COMPANIES:
There are mainly 12 companies in Ashok Minda Group of Companies:

 MINDA MANAGEMENT SERVICES LTD.

 MINDA CORPORATION LTD.

 MINDA SILCA ENGINEERING LTD.

 MINDA VALEO SECURITY LTD.

 MINDA KTSN GERMANY

 PT MINDA ASEAN

 MINDA STONERIDGE INSTRUMENTS LTD.

 MINDA FURUKAWA ELECTRIC PVT. LTD.

 MINDA SM TECHNOCAST LTD.

 MINDA SAI LTD.

 MINDA AUTOCARE LTD.

 MINDA SCHENK PLASTIC SOLUTION LTD.

The Ashok Minda Group is a leader in its segment and enjoys major market share for

some of its products. The group manufactures security systems, wiring harnesses,

couplers, terminals and instrument clusters for almost all major two and four wheeler

vehicles manufactured in India.

Minda Huf Ltd, a joint-venture with Huf Hülsbeck & Fürst GmbH of Germany, is the

flagship company of the Ashok Minda group which started commercial production of two-

wheeler locks in 1989, followed by four-wheeler locksets in 1994. The Ashok Minda

Group is structured into the following companies:

• Minda SAI: Initially established in 1995, as Sylea Automotive (India) Ltd., a subsidiary

of Valeo, the company was acquired in April 2003 with the aim of diversifying into the

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wiring harness business. The company also derives some revenue from non-automotive

white goods businesses. It operates five plants throughout India. Wiring harnesses account

for 80% of sales, while wire sets account for 15% of sales. The other 5% is generated by

components.

• Minda Stoneridge: Earlier known as the Minda Instruments, is a leading supplier of

mechanical instrument clusters. The company has grown by 80% in the last three years.

• Minda Huf Ltd: A leading supplier of locking systems in India and the Group’s flagship

company.

• Minda Huf Europe BV: A European subsidiary supplying security systems, door handles

castings and moldings in Europe.

• Mayank Auto Pvt. Ltd: Manufacturer of sub-assemblies.

• SM Technocast Pvt. Ltd: Producer of die-castings.

• PT Minda ASEAN Automotive: A new company set up in Indonesia to serve two

wheeler manufacturers in the ASEAN region.

The group has a wide base of clients comprising domestic OEM’s such as Ashok Leyland,

Eicher Motors, Escorts Tractors, Fiat Auto, Hero Motors, Hindustan Motors, Honda Motor

Cycle & Scooter India, Indo Farm Tractors, International Tractors, Kinetic Engineering,

Kinetic Motor Company, Mahindra & Mahindra, Monto Motors, New Holland, Piaggio

Vehicles, Reva Electric Car Company, Same Greaves Tractors, TVS Motors, VST Tillers &

Tract and Yamaha Motor India.

Minda’s tier-1 customers include domestic clients like Denso, L & T Case Equipments,

LML (Components), Mindarika, Nippon Audiotronix, Sandan Vikas, Siemens VDO,

Subros, Sundaram Motors.

The company’s international clients include Creo Products, Harteveld Automaterialen BV,

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Lotus Cars, Piaggio, Peugeot, Aprillia, Supra Industries and Triumph among others. The

company also serves the aftermarket.

Recent Developments

Corporate strategy The Ashok Minda Group has been aggressively expanding in Europe

and the ASEAN region through its subsidiaries in Europe and Indonesia and has been

actively trying to catch up with the international players. Company has set high export

targets for itself, aiming for a higher share for exports of group sales.

Domestically, the company is growing well. To further its growth Ashok Minda Group has

aggressively diversified its product range by acquiring Valeo’s wiring harness subsidiary in

India and also by forming a joint-venture with Stoneridge producing instrument clusters.

Acquisition

In 2003, the company acquired Valeo’s wiring harness arm, Sylea Automotive (India). In

accordance to the agreement made between the two companies, Valeo continues to provide

technical assistance to Minda. In principle, Valeo also agreed to source some of its required

components from the company.

Joint-ventures

• PT Minda ASEAN is a joint-venture between the Ashok Minda Group and the NK Minda

Group with a manufacturing presence in Indonesia. The Indonesia based facility

commenced production at the end of 2005.

• In August 2004, Stoneridge Inc. (USA), bought a 49% stake in Minda Instruments over a

period of three years. The company, renamed Minda Stoneridge, received exclusive

manufacturing and marketing rights for India and 17 Asian countries, namely- Malaysia,

Indonesia, Philippines, Singapore, Thailand, Vietnam, Pakistan, Bangladesh, Brunei,

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Burma, Cambodia, Laos, Mauritius, Maldives, Nepal and Sri Lanka. The joint-venture is

expected to achieve a turnover of US$20m by 2007-08. Critically the company also has an

arrangement for buy-back with Stoneridge. The company is also chalking up plans to add

other product lines from Stoneridge Inc. including sensors; actuators etc., to the joint-

venture.

• Minda Huf Limited is a joint-venture between the Minda family and Huf Hülsbeck &

Fürst GmbH. The joint-venture was formed in 1995. Additionally, Minda Huf Ltd.

receives technical assistance for Fiat Lock Kits from TRW and Altech, and for

electronic and mechanical security systems from Delta electronics, all of which

are based in Italy.

Investments • In January 2005, Minda Huf Ltd. established a European subsidiary,

Minda Huf Europe BV with operations in Breda (Netherlands). The new

company acts as a logistics facility for existing European clients for just-in-time

deliveries. At the same time the company is targeting new clients. The company

supplies mechanical and electronic security systems, door handles, castings and

mouldings. Minda Huf intends to derive €20m in sales from the new venture by

2007-08. Furthermore, through the new set up, Minda Huf is targeting new

segments such as commercial vehicles, recreational vehicles, tractors,

earthmovers and construction equipment in the European market.

• In February 2004, Minda Huf announced the launch of a new facility in Pune. The new

facility caters to the growing requirements of Minda Huf’s clients in India’s western region.

The total capital investment on the new facility was INR250m (€4.43m, 28 February 2004).

Eventually the facility should provide nearly 400 jobs.

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Contracts

• MHL is the sole supplier to the Ford Ikon.

• MHL is the single source supplier for the Opel Corsa.

• MHL is the single source supplier for the Tata Indica and Safari.

• MHL is the single source supplier for the Fiat Siena and the Palio.

• MHL is the single source supplier for the Mahindra & Mahindra Scorpio and has 70% of

the business share as a supplier to the model Bolero.

• MHL is the single source supplier to Force Motors for the Trax and the Traveller.

• MHL has a 40% share of business of Maruti Omni and the 800.

• In December 2003, MHL commenced production of Indilock, an advanced central car

locking security system, for supplies to Tata Motors.

• MHL supplies locksets to DaimlerChrysler (Germany).

• The company supplies transponder immobiliser locksets to Ford in Mexico and South

Africa.

• MHL supplies locksets and electronic security systems for two-wheeler and four-wheeler

applications to Piaggio (Italy).

• MHL supplies locksets to Aprillia, Italy; Peugeot, France; Yamaha-MBK, France;

Yamaha, Spain; Derby, Spain; Suzuki, Spain; Yamaha, Indonesia; and Suzuki, Thailand for

two-wheeler applications.

• MHL supplies locksets to Cobo (Italy) for LCVs.

• MHL has the contract to supply locksets to Triumph (UK).

• Minda Stoneridge is the single source supplier to Tata Motors for the Sumo and the LCV-

407/709.

• Minda Stoneridge has been chosen as the single global source supplier for the Piaggio

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 NQP World Van.

The Minda Group, India's foremost auto component manufacturer, announced a major

initiative to aggressively target the After Sales market for its range of products. The Group, in

the first of its kind initiative in the auto component space, announced the roll out of its

FMCG model for the aftermarket (replacement market). Minda Corporation Ltd. has its

largest unit in Pune, Maharastra.

PRODUCTS OF MINDA GROUP OF INDUSTRIES:

PRODUCTS OF N.K.MINDA INDUSTRIES LTD.

 HEAD LIGHTS

 SWITCHES

 HORNS

 BATTERIES

 CNG/LPG KITS

 SEATS

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PRODUCTS OF ASHOK MINDA GROUP OF COMPANIES

 KEY SYSTEM

 STEERING COLUMN LOCK

 POLYMER

 LOCK SETS

 DOOR HANDLES

 WINDOW REGULATORS

 WIRING HARNESS

 DIE CASTING

 SPEEDOMETER (CLUSTER ASSEMBLY)

 ELECTRONIC TRANSPONDERS

 IGNITION SWITCHES

 FUEL TANK CAP

 INSTRUMENT PANELS

 REMOTE CONTROL SYSTEMS

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 CUSTOMERS OF THE ASHOK MINDA GROUP OF
COMPANIES
CUSTOMERS OF MINDA CORPORATION LTD.:
MAJOR CUSTOMERS- EXPORT MARKET

COMPANY COUNTRY VEHICLE CATEGORY

APRILIA ITALY SCOOTER

DERBY SPAIN SCOOTER

KAWASAKI JAPAN MOTORCYCLE

PEUGEOT FRANCE SCOOTER

PIAGGIO ITALY 2&4 WHEELER

POLLAK U.S. OFFROAD VEHICLE

TRIUMPH
UNITED KINGDOM MOTORCYCLE
MOTORCYCLES LTD

YAMAHA –MBK FRANCE MOTORCYCLE

SPAIN/INDONASIA/
YAMAHA SCOOTER/MOTORCYCLE
MALAYSIA

SPAIN/THAILAND/
SUZUKI SCOOTER/MOTORCYCLE
INDONASIA

MAJOR CUSTOMER IN DOMESTIC MARKET

COMPANY MODELS SHARE OF BUSINESS

BAJAJ AUTO LTD. MOTORCYCLE 100%

HONDA MOTORCYCLE & SCOOTER 50%

SCOOTER INDIA

JCB INDIA 3DX 100%

KINETIC ENGINEERING SCOOTER, MOPED & 100%

LTD MOTORCYCLES

LML LTD MOTORCYCLE/SCOOTER 70%/100%

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SUZUKI MOTORCYCLE MOTORCYCLE 100%
INDIA

TVS MOTOR COMPANY SCOOTER, MOPED & 40%

LTD MOTORCYCLES

KINETIC MOTOR CO. SCOOTER 100%

LTD.

YAMAHA MOTOR INDIA MOTORCYCLE 100%

(P) LTD.

COMPETETORS OF MINDA CORPORATION LTD.:

1- SANDHAR LOCKING DEVICE (SLD), INDIA

2- JAY YUSHIN (JY),JAPAN

3- ZADI, ITALY

4- ASAHI DENSO, JAPAN

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 MANUFACTURING FACILITIES
High quality standards and constant innovation are central to all activities at MINDA

CORPORATION LTD. To achieve this, company has invested substantially in Product

Design and Development and world class tool manufacturing facilities.

All products undergo rigorous testing for endurance, environment, fitment and function at in-

house test laboratories. Minda Corporation Ltd. is committed to environmental protection and

our environmental safety standards meet stringent international requirements.

Product Design The latest technologies for product designing have been adopted, which

include

 CAD-CAM

 Rapid Prototyping

 Rapid tooling

This has resulted in a substantial reduction in design to delivery time. In excess of 100 new

products are developed each year.

Production Engineering

Dedicated teams of engineers oversee the development of manufacturing infrastructure for

new products and documentation for all the processes. Techniques of JIT, Single Piece Flow,

SMED and POKA-YOKE ensure optimum utilization of resources and speedy development

from concept to production stage.

Tool Manufacturing

Minda Corporation Ltd. has developed advanced in-house tool making facilities to ensure for

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higher quality and lower throughput time. First-Time-Right concepts and Tool

Standardization ensures reduction of development time and cost.

Latest technologies are used include CNC wire cut and CNC milling machines. SMED

techniques are used in the tool manufacturing to achieve faster changeover in production.

Manufacturing Facilities

Manufacturing is designed to offer customized products rather than standard products and

emphasis is on usage of special purpose plant and equipment.Minda Corporation Ltd. has the

latest generation machines for manufacturing components and critical operations are done in-

house.

 Key biting is done on computerized CNC special purpose machines

 Die-casting on PLCs controlled die-casting machines ranging from 20 tons to 250

tons.

 SPM's include include machining center; boring and grooving machines to give

highly reliable parts.

.Well-trained multi-skilled associates assemble all the in-house components on assembly

lines. Productivity improvement is a critical area of focus in Minda Locking Systems and this

is achieved through commissioning of POKA-YOKE devices in various critical operations.

High efficiency, quality and productivity are achieved by making flow of production single

piece in assembly.
Lean Manufacturing

Lean principles come from the Japanese manufacturing industry. Lean is the set of "tools"

that assist in the identification and steady elimination of waste. As waste is eliminated quality

improves while production time and cost are reduced. Lean manufacturing or lean

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production, which is often known simply as "Lean", is a production practice that considers

the expenditure of resources for any goal other than the creation of value for the end customer

to be wasteful, and thus a target for elimination. Lean manufacturing is a generic process

management philosophy derived mostly from the Toyota Production System (TPS). Lean

implementation is therefore focused on getting the right things to the right place at the right

time in the right quantity to achieve perfect work flow, while minimizing waste and being

flexible and able to change.

Kaizen

Kaizen (for "improvement") is a Japanese philosophy that focuses on continuous

improvement throughout all aspects of life. When applied to the workplace, Kaizen activities

continually improve all functions of a business, from manufacturing to management and from

the CEO to the assembly line workers. By improving standardized activities and processes,

Kaizen aims to eliminate waste. Kaizen is a daily activity, the purpose of which goes beyond

simple productivity improvement. It is also a process that, when done correctly, humanizes

the workplace, eliminates overly hard work and teaches people how to perform experiments

on their work using the scientific method and how to learn to spot and eliminate waste in

business processes.

The cycle of kaizen activity can be defined as:

 standardize an operation →

 measure the standardized operation (find cycle time and amount of in-process

inventory)

 gauge measurements against requirements →

 innovate to meet requirements and increase productivity →

 standardize the new, improved operations →

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  continue cycle

KANBAN

Kanban (where kan, means "visual," and ban, means "card" or "board") is a concept related

to lean and just-in-time (JIT) production. The Japanese word kanban is a common term

meaning "signboard" or "billboard". Kanban is a signaling system to trigger action. Kanban

became an effective tool to support the running of the production system as a whole. In

addition, it proved to be an excellent way for promoting improvements because reducing the

number of kanban in circulation highlighted problem areas. An important determinant of the

success of production scheduling based on "pushing" the demand is the quality of the demand

forecast which can receive such "push". Kanban, by contrast, is part of an approach of

receiving the "pull" from the demand. Therefore the supply, or production is determined

according to the actual demand of the customers. In contexts where supply time is lengthy

and demand is difficult to forecast, the best one can do is to respond quickly to observed

demand. This is exactly what a kanban system can help: it is used as a demand signal which

immediately propagates through the supply chain. This can be used to ensure that

intermediate stocks held in the supply chain are better managed, usually smaller. Where the

supply response cannot be quick enough to meet actual demand fluctuations, causing

significant lost sales, then stock building may be deemed as appropriate which can be

achieved by issuing more kanban. A simple example of the kanban system implementation

might be a "three-bin system" for the supplied parts (where there is no in-house

manufacturing) — one bin on the factory floor (demand point), one bin in the factory store

and one bin at the suppliers' store.

JUST-IN-TIME

Just-in-time (JIT) is an inventory strategy that strives to improve the return on investment of

a business by reducing in-process inventory and its associated carrying costs. To meet JIT

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objectives, the process relies on signals between different points in the process. This means

the process is often driven by a series of signals, or Kanban which tell production when to

make the next part. JIT can dramatically improve a manufacturing organization's return on

investment, quality, and efficiency. The technique was first used by the Ford Motor

Company, The JIT inventory philosophy defines how inventory is viewed and how it relates

to management. Inventory is seen as incurring costs, or waste, instead of adding and storing

value, contrary to traditional accounting. This does not mean to say JIT is implemented

without an awareness that removing inventory exposes pre-existing manufacturing issues.

This way of working encourages businesses to eliminate inventory that does not compensate

for manufacturing process issues, and to constantly improve those processes to require less

inventory. Secondly, allowing any stock habituates management to stock keeping.

Management may be tempted to keep stock to hide production problems. These problems

include backups at work centers, machine reliability, process variability, lack of flexibility of

employees and equipment, and inadequate capacity.

In short, the just-in-time inventory system focus is having “the right material, at the right

time, at the right place, and in the exact amount”, without the safety net of inventory. The JIT

system has broad implications for implementers. JIT reduces inventory in a firm.

Main benefits of JIT include:

 Set up times are significantly reduced in the factory.

 The flow of goods from warehouse to shelves improves.

 Employees who possess multiple skills are used more efficiently.

 JIT provides better scheduling and work hour consistency.

 There is an increased emphasis on supplier relationships.

 Supplies come in around the clock, which keeps workers productive and businesses

focused on turnover.

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5S (METHODOLOGY)

5S is a method for organizing a workplace, especially a shared workplace (like a shop floor

or an office space), and keeping it organized. The key targets of 5S are workplace morale,

safety and efficiency. The assertion of 5S is, by assigning everything a location, time is not

wasted by looking for things. Additionally, it is quickly obvious when something is missing

from its designated location. Advocates of 5S believe the benefits of this methodology come

from deciding what should be kept, where it should be kept, and how it should be stored. This

decision making process usually comes from a dialog about standardization which builds a

clear understanding, between employees, of how work should be done. It also instills

ownership of the process in each employee. 5S are

Phase 1 - Seiri - Sorting

Phase 2 - Seiton - Straighten or Set in Order

Phase 3 - Seisō - Sweeping or Shining or Cleanliness

Phase 4 - Seiketsu – Standardizing

Phase 5 - Shitsuke - Sustaining the discipline

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POKA-YOKE

Poka-yoke is a Japanese term that means "fail-proofing" or "mistake-proofing". A poka-

yoke is any mechanism in a Lean manufacturing process that helps an equipment operator

avoids mistakes. Its purpose is to eliminate product defects by preventing, correcting, or

drawing attention to human errors as they occur. The concept was formalized, and the term

adopted, by Shigeo Shingo as part of the Toyota Production System. Poka-yoke can be

implemented at any step of a manufacturing process where something can go wrong or an

error can be made.

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 INPUT PROCESS RESULT IMPACT

Takt Time Stability in Process

Lean
Kanban Linkage
Logistics
Lean Reduce Lead Time
Customer Satisfaction Thinking

Autonomous maintenance Zero Breakdown Paradigm

Planned maintenance
Quality maintenance
TPM Zero Defect
Production increase
Shift

Kobetsu Kaizen
Value Added to employee cost Productive
Cell Layout Productivity Job enlargement Work
Single Component Flow improvement Process Ownership
Culture
Multi machine manning

Red Tag High ITR Improved

SMED Inventory Cash Flow
Containerization Management Working Capital Management

In House rejection Quality

Standards Quality Warranty Claims Excellence
Management Customers Complaints
Poka-Yoke

Daily Management Discipline Improvemen

5S 5S Waste Elimination t Culture
Operator Ownership

ROAD MAP TO COMPETITIVENESS FOR MINDA

24
 CHAPTER – 3
SUPPLY CHAIN MANAGEMENT

25
SUPPLY CHAIN OF MINDA CORPORATION LTD.
Schedule
CUSTOMER MARKETING
DEPARTMENT

FINISHED Indent
PRODUCTS Requirement

BONDED PPC
STORE DEPARTMEN
T

Finished &
Checked Products Requirement
Requirement
PRODUCTION
Raw Material
DEPARTMENT
MAIN PURCHASE
STORE DEPARTMENT

Finished Products

OK Components Order
QUALITY CHECK
DEPARTMENT VENDOR

Raw Materials
RECEIVING
STORE Raw Material

26
Supply Chain Management (SCM) is a discipline that optimizes costs of manufactured

products, by controlling all areas that impact the manufacturing process. It begins with the

customer demand or need and ends with the fulfillment of the demand and need. Supply

Chain Management is process of planning, implementing & controlling the operation of

supply chain with the purpose to satisfy the customer requirement efficiently. Supply chain

management spans all the movements & storage of raw-materials, work-in-process inventory

& finished goods from point of origin to point of consumption.

The language of supply chain management is based upon the following acronyms:

JIT - Just-in-Time manufacturing

EDI - Electronic Data Interchange

CRP - Continuous replenishment program

POS - Point of sale

EFT - Electronic funds transfer

ECR - Efficient consumer response

QR - Quick response

To ensure that the supply chain is operating as efficient as possible and generating the highest

level of customer satisfaction at the lowest cost, companies have adopted Supply Chain

Management processes and associated technology. Supply Chain Management has three

levels of activities that different parts of the company will focus on: strategic; tactical; and

operational.

 Strategic: At this level, company management will be looking to high level strategic

decisions concerning the whole organization, such as the size and location of

manufacturing sites, partnerships with suppliers, products to be manufactured and

sales markets.

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  Tactical: Tactical decisions focus on adopting measures that will produce cost

benefits such as using industry best practices, developing a purchasing strategy with

favored suppliers, working with logistics companies to develop cost effect

transportation and developing warehouse strategies to reduce the cost of storing

inventory.

 Operational: Decisions at this level are made each day in businesses that affect how

the products move along the supply chain. Operational decisions involve making

schedule changes to production, purchasing agreements with suppliers, taking orders

from customers and moving products in the warehouse.

There are four major decision areas in supply chain management:

1) location,

2) production

3) inventory

4) transportation (distribution)

There are both strategic and operational elements in each of these decision areas:

Location Decisions

The geographic placement of production facilities, stocking points, and sourcing points is

the natural first step in creating a supply chain These decisions are of great significance

to a firm since they represent the basic strategy for accessing customer markets, and will

have a considerable impact on revenue, cost, and level of service. These decisions should

28
be determined by an optimization routine that considers production costs, taxes, duties

and duty drawback, tariffs, local content, distribution costs, production

Production Decisions

The strategic decisions include what products to produce, and which plants to produce

them in, allocation of suppliers to plants another critical issue is the capacity of the

manufacturing facilities. Operational decisions focus on detailed production scheduling.

These decisions include the construction of the master production schedules, scheduling

production on machines, and equipment maintenance.

Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage

of the supply chain as either raw materials, semi-finished or finished goods.. Since

holding of inventories can cost anywhere between 20 to 40 percent of their value, their

efficient management is critical in supply chain operations the determination of the

optimal levels of order quantities and reorder points, and setting safety stock levels, at

each stocking location are the objectives of the Inventory Decisions .

Transportation Decisions

The mode choice aspect of these decisions is the more strategic ones. These are closely

linked to the inventory decisions, since the best choice of mode is often found by trading-

off the cost of using the particular mode of transport with the indirect cost of inventory

associated with that mode. The customer service levels, and geographic location play

vital roles in Transportation Decisions. Shipment sizes (consolidated bulk shipments

29
 versus Lot-for-Lot), routing and scheduling of equipment are keys in effective

management of the firm's transport strategy.

Benefits and Strategic Implications of SCM

 SCM creates a competitive advantage and greater profitability by providing strategic

partnerships among the SC members through reducing channel-wide inventory,

increasing promptness, and better customer service.

 SCM allows partnering firms to achieve core competencies while spreading the risk of

asset ownership and reducing market risks through effective co-ordination and

communication

 Improves quality and services through balancing the channel-wide execution and

planning requirements associated with SCM, thus, resulting in improved customer

acceptance of the end product.

 Increases sales as customers become more confident in single sourcing due to

improved quality and services and decreased cycle time.

 Reduces number of sources of supply permitting closer co-ordination, thus leading to

improved quality and cost results, strengthening the SC further.

30
Elements of Supply Chain Management in Minda Corporation Ltd.:

There are mainly eight elements of whole supply chain of the Minda Corporation Ltd. but

others are also there as finance department where the whole financial works are done,

corporate block where the strategic decisions are taken for the growth of the company. The

main elements are:

Customer: The customer starts the chain of Supply Chain when they decide to purchase a

product that has been offered for sale by a company. The customers contact the Marketing

department of the company and give schedule for their requirement at the end of the month

for the next month, which enters the sales order for a specific quantity to be delivered on a

specific date. If the product has to be manufactured, the sales order will include a requirement

that needs to be fulfilled by the production facility.

Marketing Department: The Marketing Department receives the schedule and releases the

indent report for the next month & tentative indent for the next two months on 20 th of every

month & on 2nd of the next month they release revised indent (final indent) report. Revised

indent or schedule is given to the PPC department if any change occurs in demand of the

customer through Indent Change Note (ICN). E.g. Customer gives schedule to marketing

department in April for next month May and on 20 th of April Marketing Department releases

indent for May & tentative indent for June & July. On 2nd of May revised indent is released.

Production, Planning & Controlling Department (PPC): The indent report comes to PPC

department & the requirement triggered by the customer’s sales order will be combined with

other orders. The planning department will create a production plan to produce the products

to fulfill the customer’s orders. To manufacture the products the company will then have to

31
purchase the raw materials needed. In PPC department Master Plan is made means how much

is the requirement of raw-material, how much is already in stock, how much man-power is

required to fulfill the requirement of the customer on time. All the reports now give to store,

purchase department & assembly line. After preparing monthly plan this department plans for

3days only & this report is given to the production department so that they can produce

according to the daily demand of the customer.

Purchase Department: The purchasing department receives a list of raw materials and

services required by the production planning & controlling department to complete the

customer’s orders. The purchasing department sends purchase orders to selected suppliers or

vendors to deliver the necessary raw materials to the manufacturing site on the required date.

Inventory Store: The raw materials are received from the suppliers or Vendors in Receiving

Store, checked for quality and accuracy by Quality Check Department and moved into the

warehouse or main Store. The supplier will then send an invoice to the company for the items

they delivered. The raw materials are stored until they are required by the production

department.

Production Department: Based on a production plan, the raw materials are moved

inventory to the production area. The finished products ordered by the customer are

manufactured using the raw materials purchased from suppliers.

Bonded Store: After the items have been completed on Assembly Line and tested by

Quality Check Department, they are stored back in the Bonded Store prior to delivery to the

customer.

32
Transportation: When the finished product arrives in the bonded store, the Dispatch

department determines the most efficient method to dispatch the products so that they are

delivered on or before the date specified by the customer. When the goods are received by the

customer, the company will send an invoice for the delivered products.

For export, Customer orders on monthly basis & on 20 th of the month indent

releases by the MCL. All the other processes are same. For exporting the goods company

gives dispatch advice for export of goods to its dispatch department. Near about 45days are

taken to reach the finished product to the customers.

33
 CHAPTER – 4
RESEARCH METHODOLOGY

34
 RESEARCH METHODOLOGY:
A research design is a specification of method and procedures of acquiring the information

needed.

Research problems: To study the supply chain management of Minda Corporation Ltd. & to

know about the fluctuations in demand of the customers.

Data source: Primary data and secondary data

METHOD OF DATA COLLECTION

Actually data is of two kinds so researchers should keep in mind both types of data.

a) Primary Data:

Primary data are those, which are collected afresh and for the first time and this happen to be

original in character. The I have collected from the customers of the company is the demand

of the customers.

b) Secondary Data:

Secondary data are those data which have already been collected by someone else and which

have already been used as per required.

There are basically two sources to collect secondary data

1- Internally: Provided by the company/organization

2- Externally: Various publication of central, state and local Government.

1- Books, magazines, newspapers

2- Internet

35
After only keeping in mind one can think about what type of data has to be collected during

project.

 Type of research is Exploratory Research

 Primary data is collected from customers

 Secondary data from company profile & internet.

Method of data analysis:

The data that is demand of the customer collected from customers were grouped into different

tables then analysis was done with the help of bar graphs which will show the demand

fluctuation.

36
CHAPTER – 5
OBJECTIVES

37
 OBJECTIVES
The systematic and objective identification, collection, analysis, dissemination, and use
information for the purpose of assisting management in decision making related to the
identification and solution of problem and opportunities in marketing. When an industry
comes in the competitive market then the main problem comes in front of it is, how can
survive in the market. For this purpose they have to know about their production process,
employment process, distribution process, consumer needs, it should have a strong &
effective supply chain. The main purpose of the industry is to satisfy the consumer needs.
Their all function rounds around the customer, they try to know the demand of the customer
and fulfill their goal

 The main objective of the project is to know about Supply Chain Management in
Minda Corporation Ltd. that how efficiently it works in the company.
Apart from this some other objectives are:

 To analyze the demand fluctuation in the company & according to that whether the
company is able to fulfill the requirement of the customers.
 To know how the company manage the inventory according to demand fluctuation of
the products.

38
CHAPTER – 6
S.W.O.T ANALYSIS

39
 SWOT ANALYSIS:

Strengths:

 Well established International brand

 Collaboration and production under the technical assistance from joint venture
with Huf Hulsbeck & Furst GmbH & Co. KG, Germany.
 Wide product range for 2 & 4 wheelers
 Customer satisfaction provided through good supply chain network.
 Customer’s incredible faith in Quality supplied by Minda.
 Mark of serving country’s largest OEM covering major car manufacturers add up
to its credibility.

Weaknesses:

 High prices as compared to competitors

 Low dealer network in the market

Opportunities:

 Substantially growing replacement market in automobile segment.

 Company can be leading company in the world through improvement in supply
chain

Threats:
 Large no. of competitors entering to market
 Other manufacturers are providing comparable quality as compared to Minda.
 The real challenge for the company is gear up for the latest technology & to invest
in R&D to face global competition
 The auto sector is majorly being affected by the steel prices, oil prices &
increasing taxes.

40
CHAPTER – 7
DATA ANALYSIS
AND
INTERPRETATION

41
INDENT-APRIL-09 (OE) AND TENTATIVE INDENT FOR MAY-09 & JUNE-09(MCL)NOIDA UNIT

SALE
MIN INDENT WEEKELY AS
DA INDENT (REV.) MIN.STOCK REQUIREMENT ON
PAR APRIL- APRIL- APRIL-
CUSTOMER T NO. 09 09 APRIL-09 09

(QTY) (QTY) (QTY) 1ST 2ND 3RD 4TH (QTY)

KT-
IYML 2171Z 7080 7180 600 2000 1620 1700 1860 7180
KT-
IYML 2221Z 15 2 2 2
KT-
IYML 1922BZ 1600 1650 200 600 600 450 1650
KT-
IYML 2104Z 143 143 60 143 143
KT-
IYML 2233Z 14480 9160 1800 5000 5000 2000 2480 9160
KT-
IYML 2087BZ 1680 1680 200 480 480 280 400 1680

TABLE: 1

42
INDENT-MAY-09 (OE) AND TENTATIVE INDENT FOR JUNE-09 & JULY-09(MCL)NOIDA UNIT

MIN INDENT WEEKELY SALE

DA INDENT (REV.) MIN.STOCK REQUIREMENT AS ON
PAR
CUSTOMER T NO. MAY-09 MAY-09 MAY-09 MAY-09
(QTY) (QTY) (QTY) 1ST 2ND 3RD 4TH (QTY)
KT-
IYML 2171Z 8480 8400 500 2000 3000 3000 400 8400
KT-
IYML 2221Z 15 15 15 15
KT-
IYML 1922BZ 1000 1000 150 600 200 200 1000
KT-
IYML 2104Z 40 40 60 40 40
KT-
IYML 2233Z 10000 10000 1000 2500 2500 2500 2500 10000
KT-
IYML 2087BZ 1840 1840 200 300 500 600 440 1840

TABLE: 2

43
 INDENT-JUNE-09 (OE) AND TENTATIVE INDENT FOR JULY-09 & AUGUST-09(MCL)NOIDA UNIT
MIN INDENT WEEKELY SALE
DA INDENT (REV.) MIN.STOCK REQUIREMENT AS ON
PAR JUNE- JUNE-
CUSTOMER T NO. 09 09 JUNE-09 JUNE-09
(QTY) (QTY) (QTY) 1ST 2ND 3RD 4TH (QTY)
KT-
IYML 2171Z 9560 9500 580 3000 3000 3000 500 9500
KT-
IYML 2221Z 345 345 150 345 345
KT-
IYML 1922BZ 1000 1000 150 300 300 300 100 1000
KT-
IYML 2104Z 40 40 20 40 40
KT-
IYML 2233Z 6360 6360 1000 2000 3800 560 6360
KT-
IYML 2087BZ 2560 2560 200 800 1000 500 440 2560

TABLE: 3

44
 DATA ANALYSIS & INTERPRETATION
DEMAND AND SALES IN UNITS

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2171Z) OF YAMAHA

45
DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2221Z) OF YAMAHA

46
DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-1922B Z) OF YAMAHA

47
DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2104Z) OF YAMAHA

48
 DE

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2233Z) OF YAMAHA

49
DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2087BZ) OF YAMAHA

50
 INTERPRETATION:

From the above tables & bar graphs I have interpreted that there is large fluctuation in

demand during the months April, May & June for the same part no. supplied to

Yamaha by the company.

 In April 09, Indent demanded by “Yamaha for the part no.KT-2171Z” was 7080 units

& Indent revised for same month was 7180 units. Min. Stock for the month was 600

units, as by seen indent & rev. indent, shows increment in the inventory by 100 units.

“Minda” fulfilled the demand of over 100 units by min. stock held.

 In May 09, Indent demanded by “Yamaha for the part no.KT-21711Z” was 8480 units

& Indent revised for same month was 8400 units. Min. Stock for the month was 500

units, as by seen indent & rev. indent, shows decrement in the inventory by 80 units.

“Minda” fulfilled the demand of 8400 units and rest of the stock i.e.80 units will be

added in min. stock for the next month.

 In June 09, Indent demanded by “Yamaha for the part no.KT-21711Z” was 9560 units

& Indent revised for same month was 9500 units. Min. Stock for the month was 580

units, as by seen indent & rev. indent, shows decrement in the inventory by 60 units.

“Minda” fulfilled the demand of 9500 units and rest of the stock i.e.60 units will be

added in min. stock for the next month.

The Most probable reasons for those fluctuations between Inventory & Indent Revised are

the sudden increase or decrease in requirement for the stock by the customer. For

example, Yamaha demanded 15 units for the part no KT-2221Z in April09 from Minda

but Indent Revised was decreased to 2 units and As in April 09, Suzuki firstly demanded

7080 units from Minda but then Indent Revised was increased by 7180 units. Both these

51
situation shows the sudden change (increase or decrease) in the requirement of stock by

Yamaha.

Firms respond to fluctuations in demand by changing their inventories and their levels of

production. Government policies that affect the costs of holding inventories and the costs

of the temporary layoffs that accompany reductions in the level of output can therefore

have significant effects on the magnitude of aggregate fluctuations.

52
 CHAPTER – 8
CONCLUSIONS, SUGGESTIONS &
LIMITATIONS OF THE STUDY

53
 CONCLUSIONS, SUGGESTIONS AND
LIMITATIONS OF THE STUDY

Conclusion:
From the above analysis, I have concluded that there is large fluctuation in demand
according to the requirement of the customer. In spite of that, the company fulfills the
customer order on time because of efficient supply chain management which includes JIT,
lean manufacturing, and 5S (methodology). Supply Chain became one of the pivotal
vehicles of the company with untold opportunities for value creation.

54
Suggestions for the company:
According to my experience in Minda Corporation Ltd. most of the things were positive
but every company has some of its bottlenecks & scope of improvements So I would like
to suggest some of the following points:
 The management & administration have some scope of improvement.
 The company should use effective software for supply chain management so to
have proper flow of information.
 The company should use Single Minute Exchange of Die (SMED) to reducing
production lot sizes and thereby improving flow. So that Productivity increases or
reduced production time & Goods will not lost through deterioration.

55
Limitation:
The supply chain network of the company is very large it is not possible to visit whole
departments of the supply chain network.

56
CHAPTER – 9
BIBLIOGRAPHY

57
 BIBLIOGRAPHY

 WEBSITES

 www.mindacorporation.com
 www.scribd.com
 www.wikipedia.com
 www.supplychain.org
 www.logistics.about.com/od/supplychainintroduction/a/into_scm.htm.

 BOOKS

 Naresh K. Malhotra, 2011, Marketing Research, New Delhi, Pearson Education,

Inc.
 C. R. Kothari, 2009, Research Methodology (Methods and Techniques), New
Delhi, New Age International (P) Limited.
 Michael H. Hugos, Essentials of Supply Chain Management

************

58
CHAPTER – 10
QUESTIONNAIRE

59
 QUESTIONNAIRE

Name:-________________ _ Age:-____yrs. Gender:-

Qualification _________

Address___________

1. What are you agree with the supply chain Management Process?
a. Agrees
b. Disagree
c. Can’t Say

2. Which vehicle do you owns, Please specify:

a. Hero Honda Bike
b. Yamaha Bike
c. Bajaj Bike

3. Approximately daily run of your vehicle, in Km

a. 70km
b. 100km
c. 150km

4. Preferable servicing centre of your vehicle , please tick

a. Hero Honda Centre
b. Bajaj Service Centre
c. Yamaha Service Centre

60
5. Likely source of spares procurement, please tick
a. Direct Company
b. Distributors
c. Retailer

6. If you are a retailer of accessories than your preferable source of procurement?

a. Minda Corporation Limited
b. Bajaj Service Centre
c. Yamaha Service Centre

7. Approximate sales of your firm in rupees for one month.

a. 60,000 pm above
b. 10,000 pm around
c. 15,000 pm
8. Majority of your clients belong to, please tick.
a. Company
b. Distributor
c. Retailer

9. Do you face any problem during procurement process.

a. Yes
b. No
c. Cant’s Day

10. Give Any Suggestions

____________________________________________________________

____________________________________________________________

61