DAWLANCE PAKISTAN

A report on the supply chain operations

Group Members: Presented to:

Melissa Fernandes - 1858108 Dr Saeed Shahbaz
Marilyn Fernandes - 1858107
Hina Ahmer - 1858103
Samia Baig - 1858120
Zehra Bibi - 1858125
Acknowledgement
We would like to express our gratitude to our course facilitator Dr Saeed Shahbaz for giving
us the opportunity to enhance our knowledge through this project. His efforts throughout the
semester has helped us understand the practical implications of the supply chain function.
We would also like to express our deepest appreciation to all those who provided us the
possibility to complete this report.
Table of Contents
INTRODUCTION ................................................................................................................................ 1
Vision ............................................................................................................................................ 1
Mission ......................................................................................................................................... 1
PRODUCT LINE .................................................................................................................................. 2
SUPPLY CHAIN PROCESS ................................................................................................................... 3
PLAN ................................................................................................................................................. 4
Forecasting ................................................................................................................................... 4
Material Requirement Planning (MRP) ......................................................................................... 4
SOURCE............................................................................................................................................. 5
Procurement ................................................................................................................................. 5
Outsourcing .................................................................................................................................. 5
MAKE ................................................................................................................................................ 6
Sheet Metal (Shearing & Welding) ................................................................................................ 6
Painting Shop ................................................................................................................................ 7
Condenser Manufacturing ............................................................................................................ 7
Galvanized Section ........................................................................................................................ 8
Preforming .................................................................................................................................... 9
Foaming ...................................................................................................................................... 10
Assembly Line ............................................................................................................................. 10
DELIVER .......................................................................................................................................... 11
Distribution Centers .................................................................................................................... 11
Distribution Process .................................................................................................................... 12
Warehousing............................................................................................................................... 12
Logistics ...................................................................................................................................... 13
RETURN .......................................................................................................................................... 14
INTRODUCTION
Dawlance is a leading manufacturer of house hold appliances in Pakistan. Since 1980, Dawlance
Premium Home Appliances Company has been turning houses into homes with thoughtfully
innovative household appliances.

The legacy of Dawlance – that now stretches over more than 3 decades - started off with the
production of Refrigerators. Today, Dawlance – with reliability as its core value - provides cutting
edge Washing Machines, Chest Freezers, Vertical Freezers, Split AC & Microwave Ovens.
Over the last 35 years, Dawlance has not only developed the largest dealer network but has also
established the largest after-sales service across Pakistan.

Vision
Make Dawlance a Global Brand by Practicing Reliability: Make Pakistan proud of us.

Mission
Promote reliability in everything we do in the field of household appliances.

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PRODUCT LINE

Food care Fabric care Home care

Refrigerators Air
conditioners
Washing
Freezers machines
Vaccum
cleaners
Microwave
ovens
Water Steam irons Dish
dispensers washers

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 SUPPLY CHAIN PROCESS

Plan Source Make Deliver Return

Process Distribution
Forecasting Centers
Procurement

Sheet Metal Distribution

Process
Material
Requirement
Planning Painting shop Warehousing
Outsource

Preforming
Logistics

Foaming

Assembly Line

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 PLAN
These are processes that manage the planning of demand and supply. Planning processes
include determining resources, requirements and establishing the chain of communication
for a process to ensure it aligns with business goals.

Forecasting

The sales team of all centers provide sales forecast to centralized SAP system based on
following method:

● n = current month forecast which cannot be changed

● n+1,n+2= forecast which can be changed + 5% more than that no change

is allowed
● n+3= can fluctuate

● n+4 = tentative forecast

Once forecast is received procurement start the procurement process of materials based on
these forecasts by ordering n+4 forecasted items. For e.g in April they will be ordering
September requirement.

Material Requirement Planning (MRP)

Based on the forecast received from the sales team the company plans the production and
ultimately the materials required to carry out production. Dawlance conducts this activity
on a monthly basis. In case there is modification in the product the MRP is carried out as per
the requirement of changing business need.

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 SOURCE
Dawlance follows the following procure to pay process for sourcing of its materials:

Purchase Purchase Receipt of Payment

Invoice
requisition Order goods to supplier

Procurement

The above process is followed for the two types of purchasing at Dawlance

Local Procurement:

 Production Items (Direct Material): compressors, motors

 General Items (Indirect Material): knobs, wheels, racks, handles etc

Import:

Main imports are kits of air conditioners, insulation chemicals, different models of
washing machines and finished goods. These are imported from China, Japan, USA,
Germany and Italy.

Outsourcing

The following components are outsourced by the company:

● Evaporator made by Changfa Supplier.

● Screw, Bolt, Nut etc. made by Adamjee Engineering
● Packing, Carton, Strip design by Bullah Shah Packaging
● Compressor’s design by Panasonic and Wanbao

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 MAKE
Dawlance adopts the Mass and Flow Production for producing the different lines of product.
It is mean production of items on large-scale. We have focused on one product – the
refrigerator to explain the production process.

Sheet Metal (Shearing & Welding)

In this process metal sheets are trimmed into various sizes and shapes to manufacture the
following parts of the refrigerator.

● Cabinets
● Freezer and fridge door
● Basic panel
● Side panel
● Compressor
The metal sheet received from the store room has the following specification
which is trimmed to match the correct size:

● Length = 3842mm
● Width = 655mm
● Thickness = 0.4mm

There are four major areas in sheet metal section such as

● Automatic Sheet feed

● Whole Processing and Notch (Bending)
● Forming
● Pressing

Dawlance Use the Tug Welding on the sheet metal for permanent fastening.

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Painting Shop

The following procedures are following to paint various components of the refrigerator:

Cabinet Painting Shop:

Capacity to paint 1800 to 1900 cabinet paint per 24 hours i-e capacity = 1800 to 1900
cabinets paint per 24 hours. There are four stages:

 Remove the welding particle by using the high pressuring.

 Phosphating
 Dry oven
 Powder Room
 Back oven

Evaporator Painting Shop:

Evaporator is a heart of refrigerator and without evaporator refraction is not complete.

There are following steps of Evaporator Painting shop Such as:

 Evaporator Phosphating
 Dry Oven
 Powder Coating
 Backing Oven

Condenser Painting Shop:

Condenser painting shop divided into two stages.

 Phosphating
Condenser passing through number of various chemicals i.e. Metaclean 375 tank and time
of Metaclean max: 5 mint & min: 1 mint:
 Painting
JOTUN powder is to use after Phosphating on the both side of condenser.
Temp: of back oven = 240 degree centigrade
Time Period: 11 mint:
The per day capacity of the condenser Paint shop is 1700

Condenser Manufacturing

Condenser Manufacturing is important for every refrigerator manufacturing company.

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There are two major sections to making the different condenser such as:

Back panel condenser:

The production planning and control department plan the back panel condenser
of particular quality for particular model. There are following process such as:

1. First make to Metal Sheet and cutting strip as per requirement by help of
shutter machine.
2. The coil is cut, bent and strengthened by help of the shutter machine.
3. After step no 1 and step no 2 now plate and bending is prepared and then tug

welding use to weld it.

4. Now plates is ready and then manufactured by press machine is also used to
be welded by tug welding.

Bottom lower condenser:

The functionality of this component is to reduce the temperature from other condenser.
The Process of the Bottom Condenser varies from model to model of refrigerator therefore
size and coil also varies.

Galvanized Section
The purpose of this process to remove all abrasive material, Oil, Greece’s etc. Chemical use in this
section i.e. Zinc brightener, Zinc California, Zinc Anode Nitric Acid.

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Preforming

There are following step in this process such as:

1. In first step compressor support unscrewed from the painted cabinet.

2. In second step gum-type slant is to be inserted into the corner edge of the

painted cabinet in order to make proper isolation.

3. In third step washer material use in tape within 4 whole if the back panel so

that condenser is to be screwed easily in it.

4. In fourth step bottom Profile is inserted within the embossing area in the

bottom
5. In fifth step the pipe fitted in the space of back panel fixed.

6. In sixth step Groomer fitted with the whole.

7. In seventh step a black pipe is to be inserted within the profile cabinet (Anti

moisture strip).
8. In eighth step there are the following sub-system included.

▪ Sub-Step no 1: The painted evaporate from the EMD is bend by

using the press machine.
▪ Sub-Step no 2: To check the inspection of the bending evaporator.
The machine use Lead detector machine.
▪ Sub-Step no 3: Evaporator Frame

9. In ninth step there are following sub-stem included.

▪ Sub-Step no 1: Thermosetting section is first sized and cutting by

using the press machine.
▪ Sub-Step no 2: Thermostat cover is tapped within the liner.

▪ Sub-Step no 3: light pipe is having the wire which is the fitted with
the thermostat on one hand and head after on the other hand.
10. In tenth step liner is fitted within the cabinet and then the pre-foaming process

end.

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Foaming

The following chemicals are used to produce the foaming mixture:

● Ployoal

● ISO-Cynate

● R141B Gas but which is use as a catalyst

After mixing of these chemicals in the required proportions these are inserted into the
cabinets.

Assembly Line

Most of the home appliance manufacturing company use straight/modular assembly in

mass production.

This is the very last portion of manufacturing. In this section all part made from different
sections and reach the assembly line to be assembled finally into a refrigerator.

After assembled certain inspection activities are performed on the finished product
(Refrigerator)

After inspection the refrigerators are to be packed and then transferred to store room that
is part of finish good inventory and then distributed.

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 DELIVER
Distribution Centers

Dawlance have very strong distribution channel across the Pakistan after the products are
manufactured, warehouse personnel take the finished goods to be stored. Then the logistics
staff deliver the finish goods to distributor.

Major distributor in large cities such as:

 Karachi
 Lahore
 Hyderabad
 Sukkur
 Mirpurkhas
 Multan
 Sargodha
 Sibi
 Rawalpindi
 Dera Ghazi Khan
 Peshawar

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Distribution Process

Packaging Indexing Warehouse Distributor Consumer

Packaging: Bullah Shah Packaging supplies the packaging material.

 Packing Material
 Catron for cover the product
 Thermocol sheet for the basement of the product and wall of product
 Strip for tighten the cover

Indexing: In indexing inspection staff inspect the product before loading on the truck. If any
product damage condition, staff do separate from the other product.

Warehouse: Stock the finished good for time being. Dawlance follows the FIFO
rule in the warehouse.

Distributor: Distributor provide the final product till to customer.

Customer: Finally, customer purchase the product by own choice with limited budget.

Warehousing

Dawlance uses private warehouses. These are operated by the company owning the
product. The warehouse is integrated with the following departments:

● Production Assembly Line

● Logistics
● Marketing
● Quality

The material flow function inside the warehouse is:

● Receiving

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 ● Put-away
● Storage
● Order picking
● Shipping

Dawlance follows FIFO method of finished goods.

Logistics

Both primary and secondary logistics services are outsourced by Dawlance.

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 RETURN
Warranty is handled by post sales department with respect to part replacement and all at
service centers or house visit. The services centers can be contacted at:

UAN: 021-111-11-7359(RELY)

customer.service@dawlance.com.pk

On the other hand, defective items received by customers can be returned to dealers and
retailers in every city. List of dealers can be viewed at http://www.dawlance.com.pk/dealer

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