A STUDY ON EFFECTIVENESS OF

SUPPLY CHAIN MANAGEMENT

AT ASHOK LEYLAND FOUNDRY DIVISION

R.RENHIL THOMAS
113220611043
COMPANY PROFILE
o Ashok Leyland Foundry Division - Part of the Hinduja Group is one of the largest diversified groups in the world spanning all the
continents. The Group employs over 150,000+ people and has offices in many key cities of the world and all the major cities in
India.
o The Hinduja Family has always adapted to free-market reforms, moving quickly in new markets that have opened and capitalizing
on new economic opportunities. As a result, Hinduja Group is now strategically positioned to contribute to old economy sectors,
such as Banking & Finance, Transport and Energy, as well as the new economy sectors of Technology, Media and Renewable.
o The Foundry Division is a part of the $12 billion Hinduja Group. Hinduja Foundries is India’s largest casting maker. Hinduja has
three facilities in Chennai and Hyd which put together manufacturer’s 100,000 MT of castings in the form of cylinder blocks,
heads, housings, manifolds, brake drums etc., made of aluminium, cast iron and SG iron. Hinduja Foundries has two plants. The
parent company is in Ennore, Chennai, the green filed one in Sriperumbudur.
o Firm believers in traditional family values, the Hindujas have all along striven to inculcate the family concept in their business
enterprises while following the core philosophy of the Founder. Every member of the Group is encouraged to practice the Vedic
principles of work: ‘Service with devotion’ and ‘willingness to see fulfillment of one’s self-interest in the active promotion of the
interest of the collective'. Mutual trust, respect, cohesion and co-operation are emphasized as key organizational guidelines. At the
same time, sound modern management practices are given primacy within individual companies of the Group and also at the
corporate level.
OBJECTIVES OF THE STUDY
o To study the various influencers in the supply chain process that support the relationship
between the organization and its suppliers with reference to Ashok Leyland - Foundry
Division
o To determine the impact of Supplier Relationship Management on Supply Chain.
o To understand Supplier Quality and to establish two-way, mutually beneficial
relationships.
o To determine the challenges faced in implementing Supplier Relationship Management.
o To reduce the delay in supply and ensure the availability of right materials at the right
time.
NEED OF THE STUDY
• In the supply chain process the supplier relationship management play a vital role in
determining the effectiveness of the process. To determine the various factors that
influences the supplier relationship in the supply chain process it is essential is establish a
two way mutually beneficial relationship. Hence the study has been undertaken to assess
the factors line delay in supply chain and receipt of the right product at the right time that
influence the entire cost effectiveness of the production process.
PROBLEM STATEMENT
• The purpose of the study will focus on the Supplier Relations Management in the supply
chain management process and the relationship between the organization and its suppliers
with reference to Ashok Leyland - Foundry Division Chennai.
• Supplier relation in the supply chain process which entails creating closer, more
collaborative relationships with key suppliers in order to uncover and realize new value
and reduce risk, hence the focus is to determine the impact of supplier relationship on the
supply chain management, with emphasis to improve supplier quality and to establish a
two-way, mutually beneficial relationship. This would govern the challenges faced in
implementing supplier relationship management there by reducing any delay in supply of
materials and ensure that each user department has exactly the right material at the right
time.
SCOPE OF THE STUDY
• The true breadth of a Supply Chain is much more than the minimal role ascribed by many
organisations.
• The scope should cover demand planning, procurement (including analysis of supplier's
Supply Chains), through production planning, inventory profiling, warehousing, packing,
despatch and transport.
• Monitoring and controlling the activities right from supplier's supplier to customer's
customer Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational improvements.
RESEARCH METHODOLOGY
o A research design is the arrangement of conditions for the collection and analysis of data in a manner
that aims to combine relevance to the research purpose.
o The study adopted the technique of Convenience sampling.
o The sample size chosen by the researcher is 34 respondents.
o The research instrument used for this study by the researcher is “questionnaire”.
o Simple Percentage analysis and tabulation is used to analysis the data.
o The following statistical tool are used by the researcher are:
o SIMPLE PERCENTAGE METHOD
o ONE WAY ANOVA
o CO -EFFICIENT OF CORRELATION
o t-Test
o WEIGHTED AVERAGE METHOD
LIMITATION OF THE STUDY
o As the study is carried out with a limited population and within a limited period basically due to
time constraint a limited sample was selected for the study with the employees and suppliers.
o The employees/suppliers would hesitate giving specific information and would share more generic
information. The information shared would be limited basis the questions prompted and would
show reluctance and lack of interest in elaborating the reason for their choice to a large extend.
o The respondents would provide more of comparative and secondary data by discussing with their
peer in the department while answering the questionnaire so there can be chance of loss in
precision and actuary in the answer.
o The finding made out of the study would be applicable only to Ashok Leyland - Foundry Division.
The same finding cannot be generalized and made applicable to other related organizations as
such.
FINDINGS
Demographic profile of the respondents
o Maximum number of respondents are from age group of 20-30
o Maximum number of the respondents are Male i.e, Male (76.00%) and female (24.00%)
o Maximum numbers of respondents come under the work experience of 0-5 years and the
minimum numbers of respondents come under the work experience of above 15 years.
 o Since the P-value is greater than 0.05. Alternative
hypothesis is accepted at 95% confidence level.

t - Test o There is significant difference between the gender

of the respondents and satisfaction with the
suppliers
 o Price adapted by vendors and the negotiated prices,
since r is positive, there is positive relationship
between price quoted band and the negotiated
prices offered by suppliers.
CO-EFFICIENT OF o Prompt payment by company and delivery on time
CORRELATION by supplier, Since r is positive, there is positive
relationship between prompt payment and timely
delivery by suppliers.
 o The calculated value of F is greater than the
tabulated value. Hence, we reject the null
ONE-WAY ANOVA hypothesis and conclude that there is a significance
difference between material handling and Just-In-
CLASSIFICATION Time concept.
 o 1. The respondents have ranked Technology to
handle materials as number 1, have ranked Prompt
Payment to suppliers as number 2, have ranked
Satisfaction with supplier relationship as number 3,

WEIGHTED and have ranked Return of unsatisfied materials to

its suppliers as number 4.

AVERAGE o 2. The respondents have ranked, Proper handling of

materials as number 1, have ranked Prompt
METHOD Payment to suppliers as number 2, have ranked
Return policy through replacement by supplier as
number 3, and have ranked Relationship
satisfaction as number 4.
SUGGESTIONS
o The satisfaction level with suppliers is good. So it is suggested that the supplier and the organisation need to
continue to maintain a good relationship
o Just-in-time concept need to be enhanced for the in-time supply of materials and to increase the profitability
o Upgrade the technology towards the process to create better communication in handling of materials between
supplier and the organisation
o Return policy to be maintained properly with both the suppliers and the organisation for the rejected good that
deviate the specification. Proper replacement process and details and records for betterment and improvement.
o Redressal process to be ensured and recognition of suppliers with proper rewards and appreciations for good
practices in service quality, timely delivery of materials for the best adhering suppliers. Continuous improvement
should be targeted at every given opportunity for every supplier and frequent redressal meet should be conducted by
the organization.
o Continuous improvement should be targeted at every given opportunity for every supplier and frequent redressal
meet should be conducted by the organization
 CONCLUSION
o To conclude it is very much evident that the supply chain process carried out in the
organization is fair and unbiased and derived by process and systems well knitted and
managed diligently which obviously ensures that Ashok Leyland Foundry Division will
achieve success in relationship with suppliers. In simple terms, “The rights are given in
right manner to all the suppliers”.