supply chin management of automobiles
-
Upload
dipankar-pathak -
Category
Documents
-
view
221 -
download
0
Transcript of supply chin management of automobiles
-
7/29/2019 supply chin management of automobiles
1/59
Supply Chain Management as a strategic tool
for Indian Automobile Industry with special
reference to Car Segment
DIPANKAR
1
-
7/29/2019 supply chin management of automobiles
2/59
Supply Chain Management as a strategic tool
for Indian Automobile Industry with special
reference to Car Segment
DIPANKAR
2
-
7/29/2019 supply chin management of automobiles
3/59
EXECUTIVE SUMMARY
SCM is a powerful strategic function capable of radically improving customer value
propositions by the reengineering of intranet and internet-enabled collaborative
channel partnerships. Latest developments in information technology have propelled
the e-Supply Chain Management (e-SCM) concept to newer dimensions. In the past,
neither markets nor products changed much over time, enterprises that gained
initial superiority could leverage on, considerable resources and process knowledge,
mature distribution channels, advertising and marketing clout, and the newest
technologies, to maintain that lead. Today, it is evident that there is no such thing as
sustainable competitive advantage and also that all advantages are temporary.
The importance of supply chain management is attracting the attention of
academicians and business managers globally. As companies experience globalisation
and cut throat competition, companies are forced to adopt measures to contain risk
due to their supply chain design characteristics.
The research was conducted among car manufactures in Delhi & NCR region and
main analysis has been done with respect to supply chain at Maruti Suzuki. The data
for the research was collected from executive of car companies, OEM suppliers and
logistics service providers. All the respondents form a key part of supply chain of car
manufacturers.
3
-
7/29/2019 supply chin management of automobiles
4/59
ACKNOWLEDGEMENT
We owe the deep depth of gratitude to our esteemed teacher Miss. Nidhi Khurana
for supporting us a lot to during the span of project and to help us when we faced
several problems. We are thankful to our Honble Director who allowed us to
perform several tasks like weekly meetings and discussions in the institute itself.
We are thankful to the lab faculties for providing necessary help whenever it was
required like in case when it was system problem in print outs and other information.
Library staff helped us in providing necessary books of different authors for project
development and several other platform oriented books on which we had worked
upon like entrepreneurs.
At last but not the least we cannot forget to thank our friends for their important
suggestions help in editing our work and let us know about our errors and mistakes
throughout the project.
DIPANKAR
4
-
7/29/2019 supply chin management of automobiles
5/59
TABLE OF CONTENT
INTRODUCTIONOVERVIEW OF AUTOMOBILE SECTOR (CAR SEGMENT)
GROWTH DRIVERS OF INDIAN AUTOMOBILE MARKET
INDIA'S POSITION IN WORLD'S PRODUCTION
AIMS AND OBJECTIVE OF RESEARCH
STRUCTURE OF THE PROJECT:
SIGNIFICANCE OF THE STUDY
REVIEW OF LITERATURE
RESEARCH METHODOLOGY
TYPE OF RESEARCH
SAMPLING
TYPE OF SAMPLING METHOD USED IN THE STUDY
JUDEGEMENTAL SAMPLING
SAMPLING UNIVERSE
SAMPLE SIZE
METHOD OF DATA COLLECTION
EMPIRICAL STUDY contentRESEARCH FINDINGS
LIMITATIONS
CONCLUSION & RECOMMENDATION
REFERENCES
ANNEXURE
QUESTIONNAIRE
LIST OF RESPONDENTS
5
-
7/29/2019 supply chin management of automobiles
6/59
INTRODUCTION
Automobile is one of the largest industries in global market. Being the leader inproduct and process technologies in the manufacturing sector, it has been recognized
as one of the drivers of economic growth. During the last decade, well directed efforts
have been made to provide a new look to the automobile policy for realizing the
sector's full potential for the economy. Steps like abolition of licensing, removal of
quantitative restrictions and initiatives to bring the policy framework in consonance
with WTO requirements have set the industry in a progressive track. Removal of the
restrictive environment has helped restructuring, and enabled industry to absorb new
technologies, aligning itself with the global development and also to realize its
potential in the country.
Indian Automotive Industry is one of the fastest growing globally, manufacturing 11
million vehicles annually. India is world's 2nd largest manufacturer of motorcycles
and 4th biggest commercial vehicle manufacturer. India is expected to be 7th largest
automobile market by 2016. In this age of e-business and global outsourcing, SCM
plays a crucial role in the Automotive Industry. (Auto Supply Chain Forum, 2012)
Efficient and Stream-lined processes are required to remain competitive in today's
marketplace. Material flow, distribution, logistics, purchasing and planning are all
important factors for success and competitiveness. Inventory Solutions can help you
by optimizing your material flow.
Planning is one the most important issues of SCM for the Indian automotive industry.
Hence, determination of production requirements and inventory levels at the vendor'sfacility for each product and development of transportation flows between these
facilities to the warehouse in a best possible way to reduce total production, inventory
and transportation costs with fulfilment of service level requirements. The emphasis
given on improving supply chains in organizations both by companies and academia
in the past two decades shows the growing importance of integrating manufacturing
and marketing processes of organizations. In recent years, supply networks are being
recognised as strategic tools that enable companies to fight global competitive battles.
The automotive industry is a key contributor to the Indian economy accounting for
1
-
7/29/2019 supply chin management of automobiles
7/59
about 4 percent of the Indian economy. The last few year have seen greater
Integration of the Indian industry with its global counterparts. The interesting part
about this is that large part of the industry has seen significant changes while the
changes have been more visible in the car segment.
The Indian automobile industry is currently experiencing an unprecedented boom in
demand for all types of vehicles. This boom has been triggered primarily by two
factors: a) increase in disposable incomes and standards of living of middle class
Indian families estimated to be as many as four million in number; and b) the Indian
government's liberalization measures such as relaxation of the foreign exchange and
equity regulations, reduction of tariffs on imports, and banking liberalization that has
fueled financing-driven purchases. (IMS, 2012)
In car segment, component part of the industry with key players having a significant
export contribution today. Original Equipment Manufacturers (OEMs) too have been
Undergoing their own set of changes. KPMG in India has been fortunate enough to
see this transformation take place while participating in a small way through its work
with key parts of the automotive supply chain. The wave of change started with
overseas OEMs wanting to enter the country. A natural fall-out of this was the large
suppliers who Entered the country as part of the follow sourced The last couple of
years have seen significant interest from Indian players who are actively looking at
exciting markets to enter as well as attractive targets to acquire. They become more
and more global in nature .For OEMs this would mean Rising competition in the
domestic market and hence the need to diversify out of India. For car segment players
this would mean the need to achieve global manufacturing standards and emerge as
supplier of choice for global companies. These changes would have a significant
impact on the automotive supply chain. Clearly the need of the hour is for various
players to identify key challenges facing the industry and develop strategies to help
moderate these. Today's rapidly changing business environment places ever greater
demands on business such as to provide products and services quicker, with greater
added value, to the correct location, with no relevant inventory position
2
-
7/29/2019 supply chin management of automobiles
8/59
Overview of Automobile sector (Car Segment)
On the canvas of the Indian economy, automotive industry occupies a prominent
place. Due to its deep forward and backward linkages with several key segments of
the economy, automotive industry has a strong multiplier effect and is capable of
being the driver of economic growth. A sound transportation system plays a pivotal
role in the country's rapid economic and industrial development. The well-developed
Indian automotive industry ably fulfils this catalytic role by producing a wide variety
of vehicles passenger cars, light, medium and heavy commercial vehicles, multi-
utility vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors
etc.
Automotive Industry comprises of automobile and auto component sectors and is one
of the key drivers of the national economy as it provides large-scale employment,
having a strong multiplier effect. Being one of the largest industries in India, this
industry has been witnessing impressive growth during the last two decades. It has
been able to restructure itself, absorb newer technology, align itself to the globaldevelopments and realize its potential. This has significantly increased automotive
industry's contribution to overall industrial growth in the country.
Growth Drivers of Indian Automobile Market
Rising industrial and agricultural output
Rising per capita income
Favourable demographic distribution with rising working population andmiddle class Urbanisation
Increasing disposable incomes in rural agri-sector
Availability of a variety of vehicle models meeting diverse needs and
preferences
Greater affordability of vehicles
Easy finance schemes
Favourable government policies Robust production
3
-
7/29/2019 supply chin management of automobiles
9/59
India's Position in World's Production
Well-developed, globally competitive auto industry Established automobile testing and R&D centres
Among one of the lowest cost producers of steel in the world
Worlds second largest manufacturer of two wheelers
Fifth largest manufacturer of commercial vehicles
Manufactures largest number of tractors in the world
Ninth largest car manufacturer in world
One of the major industrial sectors in India is the automobile sector. Subsequent to the
liberalization, the automobile sector has been aptly described as the sunrise sector of
the Indian economy as this sector has witnessed tremendous growth.
Automobile Industry was deli censed in July 1991 with the announcement of the New
Industrial Policy. The passenger car industry was, however, deli censed in 1993. No
industrial licence is required for setting up of any unit for manufacture of automobiles
except in some special cases. The norms for Foreign Investment and import oftechnology have also been progressively liberalized over the years for manufacture of
vehicles including passenger cars in order to make this sector globally competitive.
At present 100% Foreign Direct Investment (FDI) is permissible under automatic
route in this sector including passenger car segment. The import of
technology/technological up gradation on the royalty payment of 5% without any
duration limit and lump sum payment of US$ 2 million is also allowed under
automatic route in this sector. With the gradual liberalization of the automobile sector
since 1991, the number of manufacturing facilities in India has grown progressively.
4
-
7/29/2019 supply chin management of automobiles
10/59
AIMS AND OBJECTIVE OF RESEARCH
The aim is to study and evaluate how supply chain can act as a strategic tool for
improving the performance of Indian Automobile industry. The main objective is to
analyse the key SCM practices at selected automobile industry players with specific
reference to Maruti Suzuki in car segment for improving its performance. The other
specific objectives are
1) To access the supply chain metrics and its performance.
2) To examine and evaluate key aspect of SCM for selected automobile industry
players in India with reference to car segments with specific reference to Maruti
Suzuki.
3) To evaluate the effectiveness of Supply Chain practices at selected automobile
industry for reducing the cost and increasing efficiency at inventory management,
logistics, transportation, warehouses and distribution and recommending solutions
for improving performance.
Structure of the project:
The format of this study is outlined below; each is in line directly to the overall
research objective of this study. The chapter and listed below with a concise
description to give a clear profile of the structure of the study.
Chapter- 1 Introduction:
This section is an introduction into what the dissertation entails and the rationale for
the topic selection.
Chapter 2 Literature review:
This section gives the detail about the concept of supply chain management and its
relevance in automobile industry.
Chapter 3- Research Methodology:
5
-
7/29/2019 supply chin management of automobiles
11/59
The section critically evaluates the method for data collection. The researcher
compares the method of the data analysis and justifies the primary research that is
being carried out data was collected using the mixed method approach.
Quantitative method:
Interviewer administered questionnaire
Qualitative method:
Focus group and telephone interview
Chapter 4 Research finding and discussion:
The section focuses on interpretation and discussion of the data obtained from
primary research. This is linked with the literature review and the research objective.
Chapter 5 Conclusion and Recommendation:
This section concludes the aim and objective introduced in the chapter one. The
conclusion was drawn based on each research objective and recommendation ware
made
Chapter 6 Reflection on Learning:
This highlights personal reflection from the author about the learning process
involved in carrying out study.
6
-
7/29/2019 supply chin management of automobiles
12/59
SIGNIFICANCE OF THE STUDY
Supply chain management (SCM) is working its own way onto the strategic agendas
of CEOs in an expanding list of industries, from automobiles to personal computers to
fashion retailing. There is very little research in this area particularly in the
automobile industry. The current study aims to compare the supply chain management
practices of automobile companies in Delhi & NCR.
Analysis was done in the area of each companys procurement and outsourcing
strategies, relationship with alliances, and the use of information technology to obtain
competitive advantage. The findings of the study can be useful for the automobile
industry in other parts of India.
7
-
7/29/2019 supply chin management of automobiles
13/59
REVIEW OF LITERATURE
Relevant literatures pertaining to the present study on four wheeler automobileindustry are included in this chapter. The literatures are helpful for proper
understanding the four wheeler automobile industry and its various related aspects.
Review of literature is also helpful in effectively fulfilling the objectives for which the
research project has been undertaken.
Ketchen Jr., G., & Hult, T.M. (2006 pp: 573-574) studies that in the past ten years
many significant changes has been takes place in the Indian automobile industry. His
studies further states that there was a healthy change in the relationships between
Indian automobile assemblers and their suppliers due to globalization, implementation
of lean production and the development of modularization. There were stiff
competition among many manufacturers and it helps to improve their quality, cost
reduction targets and on-time delivery to market. And also it creates more mergers or
acquisitions.
Larson, P.D. and Halldorsson, A. (2004 pp: 17-20), in his studies, aimed at analyzingthe role of SCM in Indian automotive industry confirms that SCM is a best-in-class,
high performance solution which is been utilized by Indian automobile manufacturer,
logistics and distribution companies, and auto component retailers to blend the
demand chain with the supply chain. The author further confirms his statement by
saying that SCM helps in demand forecasting; taking an order; giving an accurate
promise date; sourcing and manufacturing the right goods; position inventory
properly; pick, pack, and efficient transshipment; most importantly, SCM makes a
world of difference to the manufacturers by maintaining a minimal finished goods
inventory.
Further,McCubbrey, D., Pinsonneault, A., & Donovan, R. (2006 pp: 722-727) studies
SCM flow in Indian automotive industry is based on its products, information and
finance. His studies reveal that the product flow is nothing but movement of goods
from supplier to customers and also in case of any customer returns or service
requirements. The information flow covers updating the status of the delivery as well
8
-
7/29/2019 supply chin management of automobiles
14/59
as sharing information between suppliers and manufacturers. The finance flow
encompasses credit terms, payment schedules and consignment and title ownership
arrangements.
Based on above facts, Kaushik K.D., & Cooper, M. (2000 pp: 65-67) studies that in
order to execute supply flow in Indian automotive industry, Supply chain
management has two types of softwareplanning application and execution
applications. Planning application is utilized to determine the best way to fill the
order; execution software determines the physical status of goods, the management of
materials and financial information of all parties involved.
According to a survey by Handfield and Bechtel (2001 pp: 284-286), SCM benefits
Indian automotive industry in several ways which include on-time delivery to the
suppliers, proper pricing and discounts. The billing error has been reduced and the
payments were made simple and faster.
Administration costs were reduced for customers/vendors; better warehousing and
transportation management, timely and correct asset capitalization, creditmanagement (customers), better plant maintenance, and easy access to data
/information.
Studies related to structure of supply chain flow in Indian automotive industry
Lavassani, M. K., Movahedi B., Kumar V. (2008pp: 543 and 622) examined that the
structure of the Indian automotive industry can be divided into tiers like first tier,
second tier and third tier. The supply chain starts with third and fourth tier supplierswho supply the raw materials to the second tier suppliers who manufacture some
simpler individual components. The second tier companies supply the simpler
components to auto components manufacturers, who form the first tier. The first tier
suppliers provide the components to the OEMs, who in turn provide the automobiles
to the customers. But today there are new direct suppliers, who design systems and
co-ordinate the supply chain required for the manufacturing and assembly. ''The
larger first tier suppliers go a step further of supplying the components, by semi-assembling the modules like steering systems and rear axle systems, which can be
9
-
7/29/2019 supply chin management of automobiles
15/59
directly fixed on the final assembly of the cars.'' (Hemila, 2002 pp: 72)By this the
costs incurred by the car manufacturers in finding the individual component
manufacturers, material handling and processing are reduced. This even transfers the
risks and problems associated with each component to the suppliers. According to
(Francisco Veloso and Rajiv Kumar, 2002 pp72) the latest development in supply
chain of the automotive industry is the emergence of tier 0.5. The auto ancillary
companies, which cater to the research and design requirements of automobile
manufacturers, are called the tier 0.5 vendors. The following is the flow-chart
representation by the researcher to demonstrate the supply chain flow in Indian
automobile industry
Lower-Tier Sub-Suppliers
3rd Tier Suppliers
2nd Tier Suppliers
1st Tier Suppliers
0.5 Tier Suppliers
OEMs / Assemblers
Dealer Networks
Consumers
Studies related to various supply chain decisions taken by Indian automotive industry
According to Garver M S and Mentzer J T (2000 pp.12-22) in the Indian automobile
industry there are three levels in the supply chain management decisions. They are
strategic, tacticaland operationallevel. Strategic level decisions are related to
production, location transportation and inventory. Production decisions are used to
decide which products to produce, where to produce, which suppliers to use and so
on. Location decisions deals with the numbers size and geographic locations like
distribution centers and plants. Transport decisions are used to decide the mode of
transport. Inventory decisions will manage inventories throughout supply chain.
Based on the studies by (Haag, S., Cummings, M2006 pp: 124-132) strategic leveldecisions are interrelated. For instance mode of transport will change according to the
10
-
7/29/2019 supply chin management of automobiles
16/59
geographic locations of plant and warehouses. Inventory policies may change
according to the supplier's choice. Tactical level decisions are responsible for medium
term decisions. For instance some of the tactical level decisions are weekly
distribution, production, and transportation planning. The operational level of supply
chain management is concerned with the very short term decisions made from day to
day. The border between the tactical and operational levels is vague and often no
distinction is made. The researcher concludes that these decisions form the
appropriate selection for SCM.
Studies relating to process techniques adapted by Indian automotive industry to fulfill
its decisions
According to Lewis and Talalayevsky, (2004 pp: 90) Indian automotive industry
adapts different techniques in its supply chain such as Quick Response (QR),
Continuous Replenishment Programs (CRP) and Efficient Consumer Response (ECR)
Quick Response (QR) is both a management paradigm and a methodology that is
adapted by Indian automotive companies since it allows auto components supplysystems to react quickly to changes while improving their performance. (Wagner,B
2000 pp1003).
Mills et al., (2004 pp: 12) studies that Continuous Replenishment Programme (CRP)
has been managed by Indian automotive industry in two different ways. The first way
of managing is by considering which party has the responsibility for the inventory
management and the other way is by considering to what extent the partners are
sharing information. Due to these above reasons the automotive industry has been
improved in the speed of supply, product availability, cost reduction target and it
helps to give better service.
Efficient Consumer Response (ECR) as a strategic initiative working to overcome
traditional barriers between trading partners, thus eliminating internal barriers that
result in costs and time that add little or no value to consumers (Skjoett-Larsen, T
2007 pp284).
11
-
7/29/2019 supply chin management of automobiles
17/59
According toKumar V. (2008) nowadays, these companies have started to adopt the
emerging Internet technologies to have constant contact with their suppliers. The
Internet is very useful to do online B2B transactions. Ashok Leyland has reduced their
inventory cost by using an end-to-end supply chain management system. Mahindra &
Mahindra has employed a single network to connect all its plants, corporate office and
all offices.
Studies relating to recent trends in supply chain management related to Indian
automotive industry in improving its process techniques
In the bookComplementary theories to supply chain management Halldorsson, A.,
Kotzab, H., Mikkola, J. H., Skjoett-Larsen, T. (2007 pp:90-94) studies that the Indian
auto manufacturers have started to take upon new concepts in supply chain
management like distribution manufacturing, back hauling, vendor managed
inventory, containerization and logistics out-sourcing. Indian auto suppliers has
adapted a new concept called Supplier Relationship Management (SRM) and is said
as the consolidation and classification of procurement data to provide an
understanding of supplier relationships in order to develop procurement strategies that
reduce costs, make procurement predictable and repeatable, enlighten supplier
partnership decisions and provide leverage over suppliers in negotiations. It's also
called: Sourcing, Strategic Sourcing, SRM, and e-Sourcing. (Bob lowson, Russell
King, et al, 1999 pp523) sees that it helps to improve the efficiency of the auto
components supply process, through collaboration with the suppliers.
Baziotopoulos, (2004 pp:42) worked hard to study supplier relationship management's
(SRM) goal and came to the conclusion that customer relationship
management(CRM) is the best tool to streamline and make effective supply chain
processes between an enterprise and their customers. SRM practices helps to maintain
the effective communication between an enterprise and its suppliers. As a result SRM
increases the supply chain processes, inventory and good service of goods. Author
further explains that if the enterprise uses SRM in an appropriate way then it would
definitely decrease the production costs and improves the quality and service.
12
-
7/29/2019 supply chin management of automobiles
18/59
According to the studies by Yusuf et al., (2003 p: 122) many automation technologies
are also adapted by Indian auto suppliers in the recent time. Some of them are
Automatic Guided Vehicles (AGV's), Automated Storage and Retrieval Systems
(AS/RS), Stores and Conveyor System, Radio frequency terminals and radio
frequency data communications. As Gallegos, J (2002 pp: 213) says automated
Storage and Retrieval Systems is a very good technology that can be considered to cut
auto component inventory cost and to improve its productivity.
Studies relating to measurement of supply chain management performance in relation
to its trends and techniques adapted
Measuring the performance of a supply chain isn't easy. For one thing, supply chains
are subject to conflicting requirements, creating confusion about which aspects of
performance ought to be monitored and improved. For another, there are dozens of
metrics to choose from, and it's far from obvious how to select among them (DavidA.
Taylor, 2004 pp: 223).
AsMarshall Fisherexplained in his classicHarvard Business Review article (1997 p:4) Efficiency and flexibility are the basic trade-off in the supply chain process. If the
supply chain processes are said to be more efficient process then it is capable of
minimizing the inventory at each location and it can definitely achieve economies of
scale at every link. On the other way around if the supply chain processes are flexible
then reserve capacity inventory must be maintained. As a result it will help to produce
and deliver products in a very short time even if there is a fluctuation in the quantities.
The methods Ramakrishnan R V (2006 pp: 167-231), suggest for measuring the
supply chain performance are:
Balanced Scorecard
Supply chain council's SCOR model
Logistics scoreboard
Activity-Based Costing
Economic Value Analysis
13
-
7/29/2019 supply chin management of automobiles
19/59
According to Hedberg and Olhager,(2002 pp:72-74 ) , Supply Chain Balanced
Scorecard tracks a limited number of key metrics . These metrics should be closely
aligned to the automobile companies' strategic objectives. The measurements usually
cover 4 areas:
1. Financial - ex: The cost of manufacturing, warehousing, transportation etc
2. Customer - ex: Order Fill Rate, Backorder Levels, On Time Delivery 3
3. Internal Business - ex: Adherence -To-Plan, Forecast Error
4. Training: ex: In house Training Hours, APICS Membership/Certification
While the Balanced Scorecard approach was not specifically designed for the
automobile and auto-component supply chain, it does give a good guidance for its
core measures of this research objective. The central idea is to focus on key metrics
that have real meaning to automobile company. The Balance Scorecard approach
helps the manufacturers to keep their measures aligned with their specific objectives.
These measures should be tracked over time (usually monthly) with specific targets
for each supply.
Ketchen Jr., G., & Hult, T.M. (2006 pp: 19). studied the Supply Chain Operations
Reference -model (SCOR) and found that it isolates key supply-chain management
processes of auto component companies and matches their process elements against
industry -specific best practices , benchmarking performance data , and appropriate
software applications , providing its users with a framework for understanding where
they need to make improvements . SCOR builds on the concepts of automobile
business process reengineering, benchmarking, and process measurement by
integrating their techniques into a cross-functional framework that addresses
management issues at the enterprise rather than at functional level. The main factor of
adapting this model in this research project is because SCOR is recognized by the 800
member companies of the Indian Automotive industry Supply -Chain Council as an
effective toolkit for companies wanting to upgrade their supply chains for strategic
advantage. While using the SCOR model is not a substitute for developing a
14
-
7/29/2019 supply chin management of automobiles
20/59
comprehensive operations strategy, it is a tool for ensuring that the operations strategy
has the desired outcome. Cross - industry studies show that integrated supply chain
management in Indian automobile industry typically yields the following results:
25 -50% reduction in total supply chain costs
25-60% reduction in inventory holding
25-80% increase in forecast accuracy
30-50% improvement in order -fulfillment cycle time.
When it comes to measuring performance of Indian auto industry, it is a prescriptive
and recommended set of logistics metrics that covers: logistics financial performance;
logistics productivity; logistics quality; and logistics cycle time can be used to map
the supply chain performance measurement processes. This method is adapted in this
research project since it's prescriptive and recommends the use of a specific set of
supply chain performance measures.
As recommended byMentzer, J.T. et al (2001 pp:124) Activity based costing is been
adapted by Indian auto suppliers since its a measurement method that ties financial
measures of these companies to operational performance since it involves breaking
down activities into individual tasks or cost drivers. ABC is one of the most accurate
cost management methodologies by Indian companies since it focuses on indirect
costs. It traces rather than allocates each expense category to the particular cost object
.It makes indirect expenses direct. ABC is used when overhead is high, products are
diverse: complexity, volume, amount of direct labor. It is used when cost of errors are
high, also when competition is stiff.
Bennett stewart 111, (2000 pp: 92) The most successful measurement of performance
is Economic value analysis (EVA). It is mainly used as a guide to take decisions in
the new company. In the Indian automobile supply chain metrics, it has been given
equally high importance and it is used for managing both intangible and tangible
assets. Economic value analysis (EVA) is been adapted in this research because EVA
15
-
7/29/2019 supply chin management of automobiles
21/59
metrics vary from other metrics. The characteristic features of EVA metrics are
complete, practical and avoid confusion in the business.
To summarize on the basis of literature survey we can say that the automobile
industry has undergonesignificant structural and other changes in thelast decade or
so. In view of the presentglobalisation, implementation of leanproduction and the
development of modularisation have changed the relationshipsbetween automobile
assemblers (OEMs) and their suppliers, especially those in the first tier. Stiff
competition among manufacturers will result in more mergers or acquisitions. The
challenges automobile manufacturers and suppliers face include improving quality,
meeting cost reduction targets and developingtime to market. Over the last few years,
automobile companies have increasingly realised the importance of logistics as a tool
for competitive advantage. For long, the Indian logistics sector remained at a nascent
stage due to inadequacies in infrastructure, lack of regulation, unfavourable taxation
regime and so on.
16
-
7/29/2019 supply chin management of automobiles
22/59
RESEARCH METHODOLOGY
Research methodology is a description explanation and justification of various
methods of conducting research. In order to accomplish the objectives of the study, it
is essential to articulate the manner in which it is to be conducted, i.e., the research
process is to be carried-out in a certain framework. The Research Methodology,
which follows, is the backbone of the study.
Type of research: Descriptive
The data for the research was collected using both primary and secondary data.
Sampling:
The sampling plan for the study decides the work area that is the population, which
has to be surveyed. A Brief idea about the sampling for this research consisting of its
different parameters is given below:
Type Of Sampling Method Used In The Study
Judegemental Sampling
In this type of the sampling the researcher uses his judgment to select population
members who are good source for accurate information
Sampling Universe
The sample universe is taken Delhi & NCR and nearby areas.
Sample Size
In this study sample size is of 40 Automobile Industry that included Executives from
Maruti Suzuki and other car manufacturers, OEM suppliers and Logistic service
providers. Due to the shortage of time and un-availability of expert team the research
size is taken short so that the research can be done easily.Method Of Data Collection
Primary Data: The data was collected in regards to Supply Chain of Maruti Suzuki
and other car manufacturers and their suppliers in regards to the existing supply chain
network.
The research was carried out through survey method with the help of a Questionnaire
consisting of closed ended question due to flexibility, questionnaire method is ideally
suited for collection of primary data.
17
-
7/29/2019 supply chin management of automobiles
23/59
Secondary data: The secondary research was undertaken through collection of above
mentioned secondary data which has been presented in the report as the literature
review. The literature review covers the views of different authors and writers on the
selected dissertation topic. The information relevant to the topic has only been
included in the report. The author has tried to give the reader a birds eye view about
the strategic marketing and related topics. The information obtained from these
secondary sources provided a good foundation of knowledge to carry out primary
research.
Method of Analysis
The data has been analysed using MS Excel and presented using pie-charts and bar
graphs. For the purpose of survey, I have tried to get quality data and also tried
to quantify the collected information in terms of values and percentages, as
and where applicable. The research has tried to get the most relevant
information for the analysis. In most of questions, results have been averaged
to the nearest value for the purpose of better interpretations.
Justification of the methods
The survey method is considered to be reliable because the respondents were
associated with the automobile industry car manufacturers for quite a reasonable
length of time; therefore they had knowledge of supply chain policies and operations.
They gave sufficient time for filling the questionnaire in the right way.
The advantage of using the above method is that it gives the user an option to vary the
selected sample size without much of a problem to get more information if it is
observed that the collected information was not sufficient or revealing.
18
-
7/29/2019 supply chin management of automobiles
24/59
LIMITATIONS OF THE STUDY
Good results depend upon Automobile Industry willingness to give good and fair
response then we can say concretely the result is good.
Results of this study and findings are applicable only for Delhi & NCR city and
near by areas. The results may be different of this study in another place.
One of the limitation of this study is that of time limitation due to which it is not
possible to do the detailed study.
The sample size was taken only 40; it is difficult to say anything concretely.
Absence of professional researcher and team was another limitation of the study.
19
-
7/29/2019 supply chin management of automobiles
25/59
EMPIRICAL STUDY
India is emerging as one of the worlds fastest growing passenger car markets and
second largest two wheeler manufacturer. According to the International Yearbook of
Industrial Statistics 2008 released by United Nations Industrial Development
Organisation (UNIDO), India ranks 12th in the list of the worlds top 15 automakers.
It is home to the largest two wheeler manufacturer and fifth largest commercial
vehicle manufacturer in the world. The industry is producing about 19 lakh passenger
vehicles, 4.5 lakh commercial vehicles, 90 lakh two wheelers and 5 lakh three
wheelers per annum.In order to make India a power to reckon with in the automotive
sector the government launched the Automotive Mission Plan (AMP) 2006-2016. As
per the AMP, it is estimated that the total turnover of the automotive industry in India
would be in the order of USD 122 billion - USD 159 billion in 2016. It is expected
that in real terms, India would continue to enjoy its eminent position of being the
largest tractor and three-wheeler manufacturers in the world and the world's second
largest two-wheeler manufacturer. By 2016, India will emerge as the world's seventh
largest car producer (as compared to the eleventh largest currently) and retain the
fourth largest position in world truck manufacturing sector. Further, by 2016, the
automotive sector would double its contribution to the country's GDP from current
levels of five per cent to 10 per cent.
The automotive industry in India has thus undergone a transition, from comprising a
few auto manufacturers, virtually no auto components makers and only low-quality
auto ancillary producers to the league of global auto manufacturers, competitive
component manufacturers and emerging ancillary producers. Several studies have
revealed thatpreviously the Indian automotive industry was not competitive enough
for the global marketdue to inferior quality, lower labour productivity and high cost
of raw materials in India (e.g., Pradosh and others, 2006). However, as in other
markets, globalization has made theautomotive market very competitive and brought
profit margins to a very low level. Component suppliers are the strength of the
emerging automobile industry. TheIndian automobile component sector is relatively
labour-intensive by global standards and is in the transition stage as a low-cost base
for exporting labour intensive products (Saripalle,2005). It is transforming itself from
20
-
7/29/2019 supply chin management of automobiles
26/59
a low volume, fragmented market into an internationallycompetitive industry, having
the advantage of skill-oriented, labour-intensive components. Indian component
suppliers have displayed a growing capability to cater to the engineering and
production needs of some of the worlds biggest auto companies, and many of the
automobile majors are now outsourcing several components from India. The
manufacturingcosts in India are 25 per cent to 30 per cent lower than in its Western
counterparts. Despite its growth, the share of Indian exports in the global auto
component market is very small. The dynamics of the industry are undergoing a
tremendous restructuring and tiering. Various technological and non-technological
innovations have been brought in by the industry to capitalize on the opportunities.The India automotive sector has a presence across all vehicle segments and key
components. In terms of volume, two-wheelers dominate the sector, followed by
passengervehicles. Until the 1990s, the industry had few players and was protected
from global competition. After the Government removed the requirement for
licensing in 1993, the arrival of global players has resulted in the sector becoming
highly competitive. Automobile manufacturing units are located all over India.
However, as noted by theAutomotive Component Manufacturers Association of India
(ACMA), they are concentrated in some pockets such as Chennai and Bangalore in
the south, Pune in the west, theNational Capital Region (NCR), which includes New
Delhi and its suburban districts) in thenorth, Jamshedpur and Kolkata in the east and
Pithampur in the central region. Following global trends, most auto suppliers are
located close to the manufacturing locations ofOEMs, forming regional automotive
clusters.
Indias automobile industry has undergone significant changes in the context of
globalization, implementation of lean production and the development of
modularization have changed the relationships between automobile assemblers
(OEM) and their suppliers. Stiff competition among manufacturers has resulted in
more mergers and acquisitions. Thechallenges facing automobile manufacturers and
suppliers include improving quality,meeting cost-reduction targets and improving the
time taken for products to reach themarket (time-to-market). Thus, the organizations
today are driven more towards greaterproduct differentiation, using cutting-edgeR&D, innovative sales and marketing approaches, and increasing their focus on
21
-
7/29/2019 supply chin management of automobiles
27/59
boosting efficiencies in the manufacturing and supply chain. Hence, in this age of
global outsourcing, supply chain management (SCM) plays a crucialrole.
SCM helps in demand forecasting, taking orders, giving an accurate promised
delivery date, sourcing and manufacturing the right goods, positioning inventory
properly,and pick, pack and efficient trans-shipment; most importantly, SCM makes
a world ofdifference to the manufacturers by maintaining a minimal finished goods
inventory.
SCMconstitutes:
(a) Product flow;
(b) Information flow;
(c) Finance flow.
Product flow is the movement of goods from supplier to OEMs as well as customer
returns or service requirements. Information flow covers updating the status of
deliveries as well as sharing information between suppliers and manufacturers.
Finance flowencompasses credit terms, payment schedules, and consignment and title
ownershiparrangements.
Indias automobile industry has achieved a global footprint. While most global OEMs
and component majors are well-established in India, local OEMs, such as Tata
Motors,Mahindra and Mahindra and TVS Motors, suppliers such as Bharat Forge and
Sundaram Fasteners, have a significant global presence. Apart from the large and
growing domestic market, many OEMs are looking at India as a significant globalsourcing hub for auto components as well as specific products such as small cars. The
manufacturing companies have adopted e-sourcing, which has helped them to
reorganize the purchasing process and provided support for aggregated buyingacross
business units compared to the traditional strategic sourcing process. The process
reduces time spent on negotiating, accelerates information gathering, and speeds up
communication channels among buyers and sellers. The rapid surge in global sourcing
of auto components has also become a challenge for manufacturers and suppliers,although sourcing has reduced the cost of production substantially. Exports are
22
-
7/29/2019 supply chin management of automobiles
28/59
playing an increasingrole in Indias automobile industry with manufacturers such as
Hyundai (which has alreadymade India the world source for the i10), Renault-Nissan
(which is using India as a supply hub for small cars) and Ford, Chevrolet, Honda,
Toyota and VW, which are investing in new capacity for supplying local and overseas
markets.
Figure:Inventory and SCM model for Maruti-Suzuki and Tata Motors
Hence, the essence of the SCM solution lies in coordinating the flow of information
and goods between the customers and the network of suppliers, manufacturers and
distributors. A comparative framework of the SCM model for Maruti-Suzuki and Tata
Motorsis presented in figure above.
23
-
7/29/2019 supply chin management of automobiles
29/59
Both Maruti and Tata keep a close watch on the protection of their technicalknow-
how. Although it is easy to monitor joint-venture suppliers, this is not the case with
independent suppliers. However, joint-venture suppliers are now allowed to supply
otherOEMs and export independently. Some joint-venture suppliers have been able to
rise upthe value chain and reach a position where they can supply similar products to
differentcompanies. This has allowed these suppliers to scale up their operations and
expand theirproduct lines.
24
-
7/29/2019 supply chin management of automobiles
30/59
RESEARCH FINDINGS
1. Awareness Level towards Supply chain Management Fundamental
50%
30%
20%
0%
10%
20%
30%
40%
50%
Good Average Poor
25
-
7/29/2019 supply chin management of automobiles
31/59
2. Options for a better Supply chain Solutions
38.00%
28.00%
34%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Maximum Moderate Minimum
26
-
7/29/2019 supply chin management of automobiles
32/59
3. Willingness level to accept the Supply chain Management
High Average Low
42.00%
25%
33.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
27
-
7/29/2019 supply chin management of automobiles
33/59
4. Level the cost deficiency hinders to implement Supply chain solution.
High Average Low
30%22.00%
48.00%
0%
20%
40%
60%
28
-
7/29/2019 supply chin management of automobiles
34/59
5. Problems in implementation of Supply chain solution
High Average Low
40% 43.00%
17.00%
0%
20%
40%
60%
29
-
7/29/2019 supply chin management of automobiles
35/59
6. Level the unavailability hinder to implement Supply chain solutions.
30
-
7/29/2019 supply chin management of automobiles
36/59
7. Level of satisfaction with Supply chain solutions.
HighAverage
Low
50%
30%
20%
0%
20%
40%
60%
31
-
7/29/2019 supply chin management of automobiles
37/59
8. Observation level of the Supply chain solution is advantages for the scope of
business.
56%
27.00%
17.00%
0%
10%
20%
30%
40%
50%
60%
Good Average Bad
32
-
7/29/2019 supply chin management of automobiles
38/59
9. Option preferred as advantages in implement Supply chain solutions.
42.00%
20%
38.00%
Better timedelivery
Better Inventorymanagement
Better costEffectiveness
33
-
7/29/2019 supply chin management of automobiles
39/59
10. Level new emerging technologies are beneficial in providing better
Supply chain solutions.
45%
35%
20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
High Moderate Low
34
-
7/29/2019 supply chin management of automobiles
40/59
11. Role SCM play in the total performance.
55%
28.00%
17.00%
0%
10%
20%
30%
40%
50%
60%
Good Average Poor
35
-
7/29/2019 supply chin management of automobiles
41/59
12. Level of desire to ask for supplier for much better Supply chain solution
36
-
7/29/2019 supply chin management of automobiles
42/59
13. Which option is most important for much better Supply chain solution.
53.00
27.00
20
Better InventM anagemen
TransportatiDecision
Location Dec
37
-
7/29/2019 supply chin management of automobiles
43/59
14. Level of willingness to go for outsourcing Supply chain services
25%
20%
55%
0%
10%
20%
30%
40%
50%
60%
High Moderate Low
38
-
7/29/2019 supply chin management of automobiles
44/59
15. Level of requirement for Automobile sector in comparison with other commodity
for a supply chain solution
55%25%
20%
High
ModerateLow
Interpretation
To sum up,
39
-
7/29/2019 supply chin management of automobiles
45/59
MAJOR FINDINGS
1. People are not well aware about SCM scope because still 20% firms are having poorawareness level.
2. Still in days globalized scenario cost play a major hindrance agent in the better SCM
options by a firm.
3. The approach is now future looking but still 40% firms are conservative.
4. Better SCM providers are not available in the Delhi & NCR region.
5. Satisfaction level is quite balances with still 20% people are not well satisfied.
6. Firms feel SCM may provide advantage to them and there prospects in business.
7. Timely delivery of product is most important advantage factor.
8. Firm is technology focus and they feel that emerging technologies are beneficial to
them.
9. Role of SCM as a strategy is high.
10. Level of desire is good but still 20% are not having better mindset.
11. Inventory management is most important component felt by the firms of the SCM.
12. Willingness for the outsourcing is not quite satisfactory.
13. Automobile companies feel that there need urgency is quite higher in comparative to
other factor.
40
-
7/29/2019 supply chin management of automobiles
46/59
CONCLUSION & RECOMMENDATION
Worldwide, organizations are striving to increase their productivity in order to staycompetitive in the global market. The process of supply chain has become
complicated and there are uncertainties at every stage in the chain. They are in the
form of poor demand forecasts, stock-outs or late deliveries. Now days, effective
supply chain has become an imperative in order to increase customer satisfaction,
reduce costs and handling of demand supply scenario. Information is now treated as
strategic asset and solution for driving the inefficiencies out of supply chain.
Leveraging of IT tools helps in synchronizing the activities along the supply chain to
reduce costs and increases the focus on reducing response time to fluctuations in
demand.
According to the Council of LogisticsManagement Supply Chain Management, the
process of planning, implementing andcontrolling efficient and cost effective flow of
materials, in-process inventory, finished goodsand related information from point-of-
order to point-of-consumption, for the purpose of conforming to customer
requirements asefficiently as possible.
The Indian automobile manufacturers face stiff international competition in the wake
of all major US and European car manufacturers entering the Indian market. In the
contemporary scenario, supply chain management practices can be adopted to
improve operational efficiency and profits. All this is driving the organisations
towards greater product differentiation using cutting edgeR&D, innovative sales and
marketingapproaches, and increasing focus on boostingefficiencies in manufacturing
and supply chain. Hence, in the age of e-business and global outsourcing, supply
chain management(SCM) plays a crucial role in many of these areas.
SCM is a best-in-class, high-performance solution which can be utilised by the
world's leading automobile manufacturer, logistics and distribution companies, and
retailers toblend the demand chain with the supply chain. SCM helps in demand
forecasting; taking an order; giving an accurate promise date; sourcing and
manufacturing the right goods; position inventory properly; pick, pack,and efficient
41
-
7/29/2019 supply chin management of automobiles
47/59
transhipment; most importantly, SCM makes a world of difference to the
manufacturers by maintaining a minimalfinished goods inventory.
The researcher finds that the in-bound and out-bound transportation cost and
inventory carrying cost forms the major part of the supply chain cost. So, to reduce
the total supply chain cost, the companies must focus in reducing the in-bound
transportation cost to the minimum.
Rapid surge in global sourcing of autocomponents has also become a challenge for
manufacturers and suppliers although sourcing has reduced the cost of production
substantially. Auto component manufacturersand all tiers of the supply chain haveimmense opportunities to enhance their entire supply chain process with the
successful implementation of SCM solution.
Finally, companies that are able to create values for their customers by satisfying their
needs and wants generally increase their market share and their profitability. Thus an
important part of any business, certainly for any supply chain, is making it easy for
customers to do business with, the report concluded.
42
-
7/29/2019 supply chin management of automobiles
48/59
REFLECTION ON LEARNING
In the current competitive scenario Supply Chain Management assumes a significantimportance and calls for serious research attention, as companies are challenged with
finding ways to meet ever-rising customer expectations at amanageable cost. To do
so, businesses must identify which parts of their supply-chain process are not
competitive, understand which customer needs are not being met, establish
improvement goals, and rapidly implement necessaryimprovements.
SCM has been interpreted by various researchers. Based on the relatively recent
development of the supply chain literature, it is not surprising that there has been
much debate as to a specific SCM definition. Automotive Industry comprises of
automobile and autocomponent sectors and is one of the key drivers of the national
economy as it provides large-scale employment, having a strong multiplier effect.
Being one of the largest industries in India, this industry has been witnessing
impressivegrowth during the last two decades. It has been able to restructure itself,
absorb newer technology, align itself to theglobal developments and realize its potx
x ential. This has significantly increased automotive industryscontribution tooverall industrial growth in the country.
Thesupply chain as a concept and a reality is moving far beyond the confines of the
individual organization. It has become a dynamic process that involves simultaneous
acquisition and continuous re-evaluation of partners, technologies and organizational
structure. The building blocks of successful supply chains are numerous and their
interactions are complex and one of the block is knowledge management. The supply
chain has evolved from corporate necessity to enhancing competitive advantage for
savvy industry leaders.
In 1980s and early 1990s, the companies focused their supply chain initiative on
reengineering supply chain cost structures, But today the customers are coming to
expect greater customization of products and services to their individual needs. The
customers are beginning to demand the same level of quality, not just in product itself
but in the delivery of the product and the services packaged with it.
43
-
7/29/2019 supply chin management of automobiles
49/59
Supply Chain design and operation is a driver of corporate strategy and shareholder
value. Companies need to expand beyond the boundaries of their own organization.
Companies need to synchronize their planning and operational activities. This is
where the knowledge management plays its part.
However, over the last few years, there has been a sea change in the approach. The
logistics sector has evolved from basic transportation to include total supply chain
management. This change has played an important role in ensuring the success of the
automobile industry in India. This end-to-end approach involves providing assistance
for purchasing, production planning, order processing and fulfilment, inventory
management, transportation, distribution and customer service etc.
With increasing competition, more and more companies have started outsourcing
supply-chain management to specialists to cut down costs. In today's competitive
business environment, automobile companies worldwide are shifting focus to
understanding and implementing extended supply chain management systems that
integrates product, process and information flows within and across organisational
boundaries.
Leading automobile companies now rigorously follow the concepts of pull against
push, and just-in-time to improve the efficiency of supply chain. Recognising this
need, some of the leading supply chain solution providers specialise in offering state-
of-the-art warehousing and inventory management services based on JIT and FIFO.
These include inventory management, C&F/distribution, hub management, order
processing, material handling and cross docking, web enabled warehouse and
inventory management software.
Besides the basic movement of raw materials, parts and finished goods, it is also
imperative for auto companies to customise services to their diverse needs. It is this
service function that differentiates one supply chain provider from another.
Time-bound delivery and safety are the two most critical aspects of managing supply
chains of automobile companies that would also reduce logistics costs considerably.
With the inclusion of functions such as OEM solutions, line feeding, spares
distribution, CBU (completely built unit) distribution, reverse logistics, customised
44
-
7/29/2019 supply chin management of automobiles
50/59
fleet, warehousing and inventory management by supply chain solution providers,
automobile companies have been able to improve the overall efficiency.
This has not only led to significant reduction in working capital requirements and
maintaining an inventory of dealers but also helped in building brand image and
goodwill for the companies. It is also important to function in a hi-tech environment
so as to improve information flow, both internal and external.
Several automobilemanufacturers in India have taken proactivemeasures to control
their logistics cost and improve customer services. Several measures were
undertaken by Indian companies toimprove their supply chain.In India, some of the
automobilemanufacturing companies have adopted e-sourcing,which helped them to
reorganise the purchasing process and supported the aggregated buying across
business units with the help of Internet-based tools or B2CInternet portals. With the
use of Internet, more global suppliers have participatedcompared to the traditional
strategic sourcingprocess. The process reduces time spent onnegotiating, accelerates
information gathering and speeds up communication channels among buyers and
sellers. The companies have implemented this e-sourcing forprocurement of high-
value commodities. Hence, the essence of SCM solution lies incoordinating the flow
of information and goods between the customers and the network of suppliers,
manufacturers and distributors. Interestingly, there has been a growing trend of
realisation of supply chainoptimisation in India; there is no dearth ofSCM solutions
in the country. Currently, manufacturing andautomotive sectors have been the leaders
inimplementing SCM solutions in the country.
Indian automobile and auto components industry is on a roll and there is an immense
scope for management for enhancing the supply chain of the sector. India has become
a favourable destination for foreign companies to establish their facilities and form
alliances with domestic companies. Low cost of manufacturing and conducive
governmentsupport have been the major drivers for foreign companies investing in
India.
Indiaslarge young population, higher GDP growth,and most importantly per capita
passenger carpenetration is low at 8.5 car per thousandpopulation, which creates
45
-
7/29/2019 supply chin management of automobiles
51/59
great opportunityfor industry players to offer an affordablefour-wheeler alternative
to the two-wheelercustomers.
According to PlanningCommission of India, Indian automobileindustry is expected
to grow at CAGR of 15% over the next five years. The Indian economy is now
gaining momentum in the world of free trade and liberal movements of goods and
services between countries. Therefore,efficiency in supply will be critical for Indias
automobile success.
46
-
7/29/2019 supply chin management of automobiles
52/59
REFERENCES
Abramovitz, M. 1956. Resource and output trends in the US since 1870.
AmericanEconomic Review, 46(2), 5-23.
Arup Mitra, Aristomne Varoudakis and Marie-Ange Vganzons. 1998. State
infrastructure and productive performance in Indian manufacturing Working
paperNo. 139 OECD Development centre.
CEINet (2004)"Features and Problems of China's Auto Industry after WTOEntry.
C.J. Corbett, "Global Diffusion of ISO 9000 Certification Through Supply
Chains."Manuscript. UCLA, December 2003.
C.J. Corbett, M.J. Montes, D.A. Kirsch and M.J. Alvarez-Gil ,Does ISO
Certification Pay?". ISO Management Systems. Special Report: 31-40. July-
August 2002.
Farrell, M.J. 1957. The measurement of productive efficiency. Journal of the
RoyalStatistical Society,120, 253-281.
Gaur, V., Marshall L. Fisher, Ananth Raman. 2004. An Econometric Analysis of
Inventory Turnover Performance in Retail Services. Forthcoming in
ManagementScience
Griliches, Z. and Jorgenson, J. 1966. Sources of measured productivity change:
capitalinput.American Economic Review, 56(2), 50-61.
Hendricks, K. B., V. R. Singhal. 1997. Does Implementing an Effective TQM
Program Actually Improve Operating Performance: Empirical Evidence From
Firms That HaveWon Quality Awards.Management Science, 43, 1258-1274.
Hendricks, K. B., V. R. Singhal. 2001. The Long-run Stock Price Performance of
Firms with Effective TQM Programs as Proxied by Quality Award Winners.
ManagementScience, 47, 359-368.
47
-
7/29/2019 supply chin management of automobiles
53/59
Hulten, C. and Srinivasan, S. 1999. Indian manufacturing industry: Elephant or
tiger? Evidence on the Asian miracle,NBER Working Paper.
Hulten. 2000. Total Factor Productivity: A Short Biography, NBER Working
paper. ICRA Industry Watch Series, The Indian Automotive Components
Industry, March 2004
Levinsohn, J. and Petrin, A. 2003. Estimating Production Functions Using Inputs
toControl for Unobservables,Review of Economic Studies,70, pp.317-341.
Liu, G , Liu, X , Wei ,Y. 2001 "Openness and Efficiency of India and China
Relative to the World Economy: A Comparative Study"
Mahadevan, R. 2002. Is there a real TFP measure for Malaysia's manufacturing
sector?ASEAN Economic Bulletin,19(2) (Forthcoming).
Mahadevan,R. 2003. New Currents in Productivity Analysis: Where To Now?
AsianProductivity Organization
Olley, S. and Pakes, A. 1996. The Dynamics Of Productivity In TheTelecommunicationsEquipment Industry,Econometrica 64, pp.1263-1297.
Rajagopalan, S., A. Malhotra. 2001. Have U.S. Manufacturing Inventories Really
Decreased? An Empirical Study. Manufacturing & Service Operations
Management, 3, 14-24.
Raman, A., N. DeHoratius and Z. Ton. 2001. Execution: The Missing Link in
Retail Operations. California Management Review 43 136 - 152.
Solow, R. 1957. Technical change and the aggregate production function.Review
ofEconomics and Statistics,39(3),312-320
Stevenson, W. J. Production/Operations Management. 5th ed. Burr Ridge, IL:
Richard D.Irwin, 1996.
Sutton, J., The Auto-Component Supply Chain in China and India: a
benchmarking study, January 2004
48
-
7/29/2019 supply chin management of automobiles
54/59
Taylor Randall and Karl Ulrich, "Product Variety, Supply Chain Structure, and
FirmPerformance: Analysis of the U.S. Bicycle Industry." Management Science
(2001).
Terwiesch, Christian, Christoph H. Loch, "Measuring the Effectiveness of
Overlapping Development Activities", Management Science, Vol. 45, Number 4,
1999
Tinbergen, J. Zur Theorie der Langfristigen Wirtschaftsentwicklung.
Weltwirtsschaftliches Archiv. 1942; 55(1): 511-549 (translated as On the theory of
trend
49
-
7/29/2019 supply chin management of automobiles
55/59
ANNEXURE
50
-
7/29/2019 supply chin management of automobiles
56/59
QUESTIONNAIRE
Your opinion and suggestion shall be kept confidential and will be used for academicpurpose.
Name of Firm
Occupation Designation
Q1.What is your awareness Level Towards Supply chain Management Fundamental
as a Strategy to take the advantage in supply of Automobile products?
Good
Average
Poor
Q2.How many option do you have for a better Supply chain Solution?
Many
Moderate
Minimum
Q3. What is your willingness level to accept the Supply chain Management advantage
for better profitability achievement?
Highest
Higher
Average
Lower
Lowest
Q4. Up to what level the cost deficiency hinder you to implement Supply chain
solution?
Highest
Higher
Average
Lower
Lowest
51
-
7/29/2019 supply chin management of automobiles
57/59
Q5. Did you face problems in implementation of Supply chain solution?
Highest
Higher
Average
Lower
Lowest
Q6. Up to what level the unavailability hinder you to implement Supply chain
solution?
Highest
Higher
Average
Lower
Lowest
Q7. Up to what level you satisfied with Supply chain solution?
Good
Average
Poor
Q8.what is the your observation level of the Supply chain solution is advantages for
the scope
of business?
Good
Average
Poor
Q9.Which option do you prefer as advantages in implement Supply chain solution?
Better time delivery
Better Inventory Management
Better Cost Effectiveness
52
-
7/29/2019 supply chin management of automobiles
58/59
Q10. Up to what level new emerging technologies are beneficial in providing better
Supply chain solution?
Highest
Higher
Average
Lower
Lowest
Q11.In your business strategy what role SCM play in the total performance?
Good
Average
Poor
Q12. What is the impact of poor supply chain on the overall systems?
Highest
Higher
Average
Lower
Lowest
Q13.Which component do you feel is most important for much better Supply chain
solution?
Better Inventory management
Better location Decision
Better transportation Decision
Distribution management
E-logistics management
Warehouse management
53
-
7/29/2019 supply chin management of automobiles
59/59
Q14. Level of your willingness to go for outsourcing Supply chain services?
Highest
Higher
Average
Lower
Lowest
Q. 15.What is level of requirement for Automobile sector in comparison with other
commodity for a supply chain solution?
Highest
Higher
Average
Lower
Lowest
Signature