Supply Chain Process at Hinopak
Company Core Values &
Achievements
Mission Statement
Visions Statement
Export Market
Hinopak is proud to be
Pakistan’s first automobile company to export buses. After
successfully establishing itself as the market leader at home,
Hinopak proceeded to explore its product potential for the export
market. This quest met with initial success when it made its first
historic sale well over a decade ago, in 1990 Hinopak exported its
first bulk order of buses to U.A.E. Follow up orders were soon
placed, ensuring the satisfaction of customers at home and abroad.
This entry into the export market was an important milestone for
Hinopak and lead Pakistan into an exciting new era for the
automotive industry, fulfilling Hinopak’s commitment towards the
economic growth of Pakistan 9
Buses Business 9
Trucks 9
Special Vehicles 9
ISO Certification 10
9001 10
Hinopak is the only automotive
company in Pakistan and the first Hino affiliate worldwide to
receive the ISO 9001 certificate. Quality Management To the
uninitiated, ISO 9001 certification may be considered a vital
marketing tool exclusively for promoting exports. In fact, the ISO
9001 requirement is as valid for the domestic customer as it is for
the overseas clientele. 10
14001 10
Euro Emission
Standard 10
Material Handling 14
Inventory Control 15
Bill of Material 15
Ordering (Local Parts) 15
Scheduling (Customize KANBAN &
NON-KANBAN Items) 15
Stock Control 15
Material Requirement Planning & JIT
15
Average inventory consumption 16
Net family demand plan at Hinopak 16
Classification of inventory 16
Scheduling (Customize KANBAN &
NON-KANBAN Items) 17
The concept is that a supplier should
only deliver components to the production line as and when they are
needed. Kanban limits the amount of inventory in the process by
acting as an authorization to produce more inventories. Kanban is
maintaining minimum inventory on the floor. 18
The Manager MOD Frequently and
Closely Control 20% of the Inventory Offer that makes 80% of total
Inventory Value. Pareto Principle is used as a Powerful Tool for
Keeping with the lowest cost of stock. 18
Scheduling of non-Kanban items are
based on CKD. As the arrival time of CKD is ~ 3 months, so we are
maintaining inventory of non-Kanban items within 40 days from
suppliers. 18
Bill of material: 18
1.After sales service 31
2.Warranty claim 31
3.Spare parts 32
4.Change of lubricants. 32
The method of implementation: 32
- Executive Summary
Hinopak
Motor Limited has been a market leader since 20 years. In 2007, with
the market share of 56% it became the most sought vehicle company in
the country. Hinopak's Market share stands at 76% in busses, 65% in
heavy trucks and 49% in light duty truck, which clearly shows that it
out beats all other companies in the country. Backed by Hino's
expertise Hinopak has achieved standard of quality and excellence
that rival the best in the region. With over 39,000 vehicles on road,
Hinopak has gained 65% market share making it the largest
manufacturer in medium and heavy-duty truck and bus industry in
Pakistan.
The
gross profit increased to Rs. 1,388 million from last year's Rs. 835
million. The distribution and administrative expenses increased to
Rs. 409 million from Rs. 308 million. The net increase in cash and
cash equivalent was Rs. 300 million. The year thus closed with a
positive cash balance of Rs.156 million. The selling prices of
vehicles are rising and "Deletion" because of falling value
of the rupee against dollar and yen.
Total
Customer Satisfaction, is a set vision for the company. Total Quality
Management or TQM is a philosophy of management driven by continual
improvement and responding to customer needs and expectations.
Hinopak
by utilizing its MIS system controls and keeps track of raw materials
inventory, work – in – process inventory and finished goods
inventory. Just in time (JIT) approach is preferred to eliminate all
sources of waste, including any activities that do not add value by
focusing on having the right part at the right place at exactly the
right time.
Hinopak
is the only automotive company in Pakistan and the first Hino
affiliate worldwide to receive the ISO 9001 certificate.
Hinopak
is Pakistan’s first automobile company to export its buses to
Middleast and African countries. The company is in the process of
negotiation with Hino Japan that Hinopak will be made the center of
all Hino export to Algeria, U.A.E. and other African countries by
2010.In order to keep the checks and balances, to avoid errors and to
detect frauds, the company has an internal auditor, whose
responsibility is to make sure that the controls are implemented at
all levels and there is proper segregation of duties and no teeming
or lading takes place.
Although
Hino Pak is meeting the production targets, lack of support from the
government is creating problems in the efficiency of the company
Hinopak backed by Hino Japan has designed a CNG bus suited the
operating conditions in Pakistan. But lack of support from government
makes it difficult to practice. Even though Hinopak Motors Ltd. is a
well-managed organization there is still some span for improvement.
The company will have to make its decision making and managerial
practices more clear and transparent. A trace of double standards
during hiring, promotion and foreign trainings ought to be faded out
to truly motivate the employees and retain the potential employees of
the company. Moreover, structure of the company is to be lined up in
such a way that the work channel and communication channel should not
affect the pace of the work.
- Company History
Hino
Motors Japan and Toyota Tsusho Corporation in collaboration with
Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors
Limited in 1986.
In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was passing through a depression and the sale of commercial vehicles was at an all time low reflects the confidence our Principals have in our company and their commitment to the Pakistani market. Hinopak is the trusted market leader with over 65% share in the Pakistani Truck and Bus industry. Hinopak a vital contributor in saving of foreign exchange is also providing jobs and plays a pivotal role for the development of the local industry through its progressive manufacturing.
By continuing to move forward and staying alert to the ever-changing market & social needs, Hinopak will continue to be a successful and respected corporate citizen of Pakistan, reflecting their commitment and belief in the Hinopak corporate philosophy to "contribute to the development of a more prosperous and comfortable society by providing the world with a new set of values".
Hinopak
Motors Limited assembles, manufactures and markets world renowned
Hino diesel trucks and buses in Pakistan. The Company has held the
top position in the domestic market for medium and heavy-duty
vehicles for 17 consecutive years and is highly acclaimed for quality
and technological excellence.
Backed by Hino's expertise Hinopak has achieved standard of quality and excellence that rival the best in the region. With over 39,000 vehicles on road, Hinopak has gained 65% market share making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan.
Backed by Hino's expertise Hinopak has achieved standard of quality and excellence that rival the best in the region. With over 39,000 vehicles on road, Hinopak has gained 65% market share making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan.
Hinopak's product range has been designed and built in Hino's traditions of automotive excellence to be the leader in its category and the main emphasis has been given to passengers' safety & comfort.
- HPML MARKET SHARES
- HPML SHARE HOLDING
- MARKET SHARE IN DIFFERENT CATAGORIES
"The
mission of Hinopak Motors Limited is to provide the society with
safe, economical, comfortable and environment friendly means of
transportation by manufacturing and supplying commercial vehicles and
services".
“Total
Customer Satisfaction, a set vision for the company. In pursuit new
concepts have been introduced such as a mobile workshops, 3S/2S”
Hinopak is proud to be Pakistan’s first automobile company to export buses. After successfully establishing itself as the market leader at home, Hinopak proceeded to explore its product potential for the export market. This quest met with initial success when it made its first historic sale well over a decade ago, in 1990 Hinopak exported its first bulk order of buses to U.A.E. Follow up orders were soon placed, ensuring the satisfaction of customers at home and abroad. This entry into the export market was an important milestone for Hinopak and lead Pakistan into an exciting new era for the automotive industry, fulfilling Hinopak’s commitment towards the economic growth of Pakistan
The
largest Manufacturer of Buses in Pakistan, Hinopak is fully-equipped
to design and manufacture a wide range of Bus Chassis and all types
of Bus Bodies. Hinopak’s Bus Line Up includes the Road liner
Supreme Luxury Bus for long journeys, Citiliner Intercity Buses,
Citiliner Urban Buses and the luxury Senator Coach and Rapid liner
Deluxe Coaches.
Hinopak
delivers only the safest most reliable products and remains the
Pioneer in supplying the largest number of Urban Buses those are
successfully facilitating the commuters of Punjab and Sindh.
The
new Bus line up is built upon reliable AK1J and RK1J (Rear engine
bus) Series that offer straight and kick up frame options for
intercity and intra-city usage. Both newly introduced series can be
suitable for a wide variety of bus bodies. The kick up frame for
inter-city operation offers more space for storage and luggage while
the larger door s and low boarding height of the straight frame allow
passengers greater comfort and convenience.
The
New Hino 500 Series is a dynamic combination of power, economy, style
and safety. Vast improvements in engine technologies have allowed us
to create Engines with more horse power while offering lower fuel
consumption. These dynamic new vehicles featuring revolutionary
technologies such as multi valves engine,
new
air intake system, turbocharger with intercooler, overhead cams,
heavy duty clutch, synchronized transmission and power steering
promise to change the face of transportation with new standards
in comfort, luxury, safety and especially economy.
Hinopak’s
latest product range has been especially developed and designed
keeping in mind the rugged terrain and varying climates in order to
meet the requirements of the diverse Pakistani automobile market. The
robust
FG1J 4x2
truck with a JO8C engine has a gross vehicle weight of 18 tons and
suitable for all types of cargo and transportation needs.The FL1J
6x2
Truck has a gross vehicle weight of 27.5 tons and is equipped with a
JO8C Engine which allows a greater fuel economy with more loading
capacity. The new product line also introduces the dynamic FM1J
6x4
Truck with a gross vehicle weight of 28 tons and boasts a JO8C engine
with turbo intercooler. This Truck is suitable for all types of
transportation needs specifically for the hilly areas and dump
trucks. The powerful SG1J
is
4x2 Prime Mover with a gross combination weight of 35 tons, also
equipped with a JO8C turbo intercooler engine it is the ideal choice
for heavy loads.
Our
versatile range of special purpose vehicles play an important role in
meeting the transportation needs of our customers. These vehicles are
engaged in prompt and safe hauling of a variety of supplies like
food, equipment and machinery, virtually from any location to any
destination. Hinopak has been able to successfully develop and market
various buses and super structures satisfying the needs of different
customers.
Hinopak is the only automotive company in Pakistan and the first Hino affiliate worldwide to receive the ISO 9001 certificate. Quality Management To the uninitiated, ISO 9001 certification may be considered a vital marketing tool exclusively for promoting exports. In fact, the ISO 9001 requirement is as valid for the domestic customer as it is for the overseas clientele.
Hinopak Motors
Limited has voluntarily ISO 14001 Certification. ISO 14001 pertains
to monitoring and managing the effect, which any business has on the
environment.
Environment
is major area of concern today the world over. The problem has
attracted attention in Hino too. Hino as responsible corporate
citizen is using the power of superior Japanese technology in step
with the expansion of exhaust emission regulation. Hino, to achieve
its target to reduce pollution has preceded low emission standard
engines which are called EURO engines. As a leading manufacturer of
diesel vehicles, Hino has taken diverse measures to preserve the
global environment in not only its products but also its corporate
activities in general while contributing to the development of
people’s lives and society as a whole
- HINOPAK’s Supply Chain Strategy
- Supplier relationship management
Hinopak
has alternative suppliers for different parts and the company has
mutual understanding among the suppliers. The organization informs
its’ suppliers well before time when to manufacture the parts
according to their production plan so this makes it easier for the
suppliers to generate their capacity and manufacture their parts.
- Customer Relationship Management
Hinopak
has a good communication channel with its customers and provides them
with extra sales services which are also known as value added
services. Some of their value added services include:
- After sales service
- Sales service up till 100000 KMs
- SCM Mission
To
create a seamless end-to-end Supply Chain from suppliers to
customers, which provides excellent Customer Service at optimal
overall cost through:
- Efficient Business Partners relationship
- Flexible manufacturing
- Reliable distribution
- Reduction in cost base
Efficient
supply chain management must result in tangible business
improvements. It is characterized by a sharp focus on;
- Revenue growth
- Better assets utilization
- Cost reduction
- Order Flow Process ( Customer to HPML)
- Global Procurement
- Import Procurements Process
- Sea shipment route ( for C K D items)
- Local Procurements
- ERP System Implementation
Material Handling
Inventory Control
Bill of Material
Ordering (Local Parts)
Scheduling (Customize KANBAN & NON-KANBAN Items)
Stock Control
Example
of ERP - ERP
MODULE
Through
ERP & MRP system Hinopak‘s supply chain department and material
operation department is performing entire planning
Demand
management includes product forecasting & control, customer order
entry, component forecasting.
Inventory
management include business forecasting, inventory status (end item),
and MPS, Bill of material, Inventory status, & MRP.
Capacity
management includes resource planning, capacity planning, capacity
requirement planning.
Quality
management includes total productive maintenance & total
production control. In the first
phase
the product forecasting is done when we are actually calculating the
demand, thus keeping the business forecasting in view of the
inventory management, we analyze the resource planning related to the
capacity planning.
In
the other phase the customer order are generated and the customer
order entry is done. As the customer order is received the inventory
status is checked in the inventory management. Based on the
inventory levels, stocks and the production requirement of the
company as well as the orders received, a master production schedule
is generated. Integrating, the master production schedule and other
levels of inventories with the capacity planning of the facility.
In
the third phase the component forecasting is done on the basis of
customer orders and the forecasted demand of the company. Checking
the inventory status the replenishment time and cost thus generating
the material requirement planning with the help of the bill of
material as well as the master production schedule. The bill of
material provides with the exact amount of quantity of each part
required in the product, the master production schedule provides the
actual production schedule of the products to made and the capacity
requirement planning helps in the planning of the capacity for the
fulfillment of the production schedule.
The
material requirement planning and the capacity requirement planning
are integrated, performing the shop scheduling thus calculating the
capacity control using group technology as well as the Kanban system.
JIT
production will be successfully carried out by the performing action
of the total productive maintenance and the total production control.
Thus, the company will be able to provide a better JIT distribution
of the truck to the ARMY, INSTITUTES and the
The
JIT activities will help Hinopak in the purchase order scheduling as
well as the vendor capacity control. In short, the company will be
reducing the total time to manufacture the trucks and buses. I.e. the
total time from the procurement of raw material to the distribution
of the final product would be decreased to a great extent.
- Decrease Q.A cost
- Waste elimination
- Decrease sampling cost
- Increase supplier relations
- Creates vendors management systems.
- Decreases the ordering and holding costs.
- CKD Parts
- Vendorized / local parts
Net
family demand plan generates plan for the required product, and no of
parts needed and raw material needed to manufacture a particular
product. As there are different variety of raw materials and parts
required for a product to be manufactured so net family demand plan
summarizes how many parts are needed or required for the
manufacturing of a particular product.
Inventory
is further classified into different categories, the two basic
categories of inventories are:
- CKD Parts
- Vendorized / local parts
These
are high value, low volume parts these parts are outsourced mainly
from Japan.CKD parts come on weekly bases and are issued CKD store.
The rolling of these high value parts takes place on regular
intervals. Special wood packaging standards are deployed for these
parts.
These
parts are purchased form specific vendors which are not international
but local vendors, all types of parts under the category of
Venderized/local parts, like High value, low volume, low value, high
volume. These parts o monthly bases according to the production plan
which is generated once the Master Supply plan has been created.
|
Part
Categories
|
|
|
CKD
PARTS
|
Venderized
PARTS
|
|
Engine
|
Disk
wheel
|
|
Axle
assembly
|
Brake
drums
|
|
Chassis
|
Leaf
springs
|
|
Cap
|
Batteries
|
- KANBAN
The concept is that a supplier should only deliver components to the production line as and when they are needed. Kanban limits the amount of inventory in the process by acting as an authorization to produce more inventories. Kanban is maintaining minimum inventory on the floor.
- Pareto Principle using for inventory Control
The Manager MOD Frequently and Closely Control 20% of the Inventory Offer that makes 80% of total Inventory Value. Pareto Principle is used as a Powerful Tool for Keeping with the lowest cost of stock.
There
are about 1700 local items from which 200 items are 80% of the cost.
- NON-KANBAN ITEMS
Scheduling of non-Kanban items are based on CKD. As the arrival time of CKD is ~ 3 months, so we are maintaining inventory of non-Kanban items within 40 days from suppliers.
This
card is displayed on daily bases in the AOP store; the basic purpose
is to bring awareness among the employees working in the AOP store
for the inventory which will be used for the manufacturing of a
particular model for the current month. This card also categorizes
the inventory which can be arranged accordingly so that it is
available in the store prior to production.
The
basic objective is to set up corrective and preventive action plans
for the critical items needed for the production.
Analysis
of raw material for the model FGIJK model has been carried out during
the project, the data was taken from the Venderized parts store. The
raw material which are used for the current model are Venderized
parts means that there are some specific vendors who supply the parts
to Hinopak. According to the demand created by the marketing
department i.e. how many vehicles to supply to the customers then
according to the production plan is prepared which subsequently
generates MRP
for the required car. In order to categorize the materials, Bill
of QUANTITY &
BILL
of MATERIAL
is a terminology use to describe the following methodology.
There
are also some CKD parts, which come on weekly bases, these are
expensive parts and are outsourced mainly from JAPAN & TAIWAN.
The
exact quantity of parts required in manufacturing the entire product.
There
are different shops and a different stage which shows us how many
different items are used according to the different shops and stages
which are laid down in the assembly line of Hinopak.
The
above bill of material is for a specific product which is
manufactured at Hinopak, the bill of material has been analyses
separately for shops and stages. The reason for doing this is to
analyze further how many shops and stages are there in the assembly
line of Hinopak. Also to specify that how many parts are needed to
manufacture the product in the assembly line.
- Master Production Scheduling (MPS)
The
objectives of this module are to help Hinopak Motors they anticipate
shortage before its accrue, (current stock, purchase order,
manufacturing order & sales order) these activities creates a
projection of your stock levels anywhere from a week to several years
in advance through this you can easily highlights your shortages.
MPS
You can easily see what exactly the shortage will appear if we
execute the specific production plan.
- Assembly Operation Plant ( Flow Diagram)
- Body Operation Plant ( Flow Diagram)
- Practice to Improve / Process Efficiency
- Kaizen
The
Japanese term for Continuous Improvement is kaizen and is the process
of making
incremental improvements, no matter how small, and achieving the lean
goal of eliminating all waste that adds cost without adding to value.
Kaizen teaches individuals skills for working effectively in small
groups, solving problems, documenting and improving processes,
collecting and analyzing data, and self-managing within a peer group.
It pushes the decision making (or proposal making) down to the
workers and requires open discussion and a group consensus before
implementing any decisions. Kaizen is a total philosophy that strives
for perfection and sustains Toyota Production System (TPS) on a daily
basis.
- 5S Activities
"Implementation
of 5S Activities to acquire a Neat & Clean environment which
gives Higher Productivity, Fewer Defects, and a safer execution"
- Seiri (Clearing up)
Remove
what is not needed and keep what is needed.
- Seiton (Organizing)
Place
things in such a way that they can be easily reached whenever they
are needed.
- Seiso (Cleaning)
Keep
things clean and polished; no trash or dirt in the workplace.
- Seiketsu (Standardizing)
Maintain
cleanliness after cleaning – perpetual cleaning.
- Shitsuke (Self-discipline).
Commitment,
a typical teaching and attitude towards any undertaking to inspire
pride and adherence to standards established for the four components.
The
pie chart on the right shows the total number of vendors which, local
and international vendors. The total number of international vendors
is 10, and local vendors are 110
and around 80 for the backup plan.
- Vendor Evaluation Form (Initial)
- Vendor Registration Form
|
QUALITY
PERFORMANCE
|
Yusuf
industries
|
Hataf
Engg
|
Tariaj
Industries
|
Allied
Engg
|
TransmissionEngg
|
|
LINE
RETURN
|
8
|
7
|
7
|
8
|
7
|
|
PPM
DEDUCTION
|
9
|
9
|
8
|
7
|
8
|
|
CERTIFIED
YIELD MULTIPLIER
|
9
|
9
|
7
|
7
|
8
|
|
PENALTY:FIELD
ISSUES
STOP
SHIPMENT
LINE
PURGE
|
9
|
8
|
7
|
7
|
8
|
|
SUB
TOTAL
|
9
|
8
|
7
|
7
|
8
|
|
PROCESSS
CONTROL
|
9
|
8
|
7
|
7
|
8
|
|
PROCESS
TECHNOLOGY
|
8
|
9
|
7
|
7
|
8
|
|
SUSTAINING
TECHNICAL SUPPORT
|
8
|
7
|
7
|
7
|
7
|
|
ON
TIME DELIVERY
|
7
|
7
|
7
|
7
|
7
|
|
PRODUCT
TECHNOLOGY
|
8
|
7
|
7
|
8
|
8
|
|
LEAD
TIME
|
7
|
8
|
7
|
8
|
9
|
|
PURCHASING
AND MATERIAL SUPPORT
|
8
|
8
|
7
|
8
|
9
|
|
PERFORMANCE
MATRIX TOTAL
|
7
|
8
|
7
|
8
|
7
|
|
PRICE
INDEX =TARGET PRICE /ACTUAL PRICE
|
8
|
7
|
8
|
8
|
8
|
|
SCORE=PERFORMANCE
MATRIX*PRICE INDEX
|
8
|
8
|
9
|
8
|
9
|
|
TOTAL
COST OF SUPPLY =((100-SCORE/100)/1
|
8
|
8
|
8
|
7
|
8
|
The
above points are given on the bases of evaluation done on the
performance factors. Following are the range which shows the highest
points and lowest points.
|
RATING
FACTOR
|
POINTS
|
|
EXCELLENT
|
9
|
|
VERY
GOOD
|
8
|
|
GOOD
|
7
|
|
AVERAGE
|
6
|
Industries
spend around 60% of their capital on inventory on the basis of Mass
Production to get maximum return on investment. Its’ imperative
that suppliers must be developed and provide raw materials according
to the requirements and specifications of the respective industry.
In
the modern era of industrialization, the concept of relation with
suppliers has changed they say “Treat Suppliers as Partners”.
Industry has to build a trust free environment with their suppliers
and it relates methodology and applications of CRM
(Customer Relationship
Management).
I
f the company is deciding to change the production plan, its their
duty to inform their respective supplier about the demand of the
respective raw material and that is only possible when there is an
effective applications of Customer Relationship Management.
It
enables the supplier to provide material at lower cost on long term
bases.
There
are three types of Sourcing
- Sole
- Multiple
- Single Sourcing
Implies
when the company is bound to purchase material from one supplier.
Following factors are related to sole sourcing.
- Technical specifications
- Raw material location
- Only single organization is producing that particular material.
Sourcing
implies when the industry selects more than one supplier i.e. two or
more than two suppliers. But choosing of the suppliers depends on the
following factors:
- Quality
- Costs
- Price
Sourcing
is based on the joined consensus of opinion of the organization. This
results in long term contracts among the suppliers with a guaranteed
volume.
- Supplier selection
Selection
of supplier is a critical activity to be deployed by the Materials
Management. It is based on the following principles:
The
supplier must understand and appreciates the management philosophy of
the organization.
- The supplier must have effective production facility and must be flexible with the future technological advancements.
- The supplier must be able to provide raw material according the requirements of the company.
- The supplier must meet specifications of the respective purchaser.
- The supplier must have enough capacity, when the demand goes up by the purchaser he must be able to provide according their demand.
- Supplier must try to deliver raw on time to the purchaser.
- Supplier must be IOS 9000/QS 9000 certified.
- Supplier must have electronic track record of customer complaints and specifications.
- There should be a mutual agreement between the supplier and the purchaser on specifications that are required to manufacture the product.
- The supplier should not have product related lot rejection for more than one year.
- The supplier shall have no product related lot rejection for a significant period of time, i.e. three months or number of lots.
- The supplier shall have no negative non-product related incidents for a stated period around six months or a number of lots.
- The supplier should have documented system of quality ISO 9000.
- The supplier shall have successfully passed an onsite system evaluation. Evaluation can be conducted by a third party.
- The supplier must conduct inspection and tests. Laboratory tests must be used for batch process.
Supplier
appraisal should be conducted on monthly bases; this evaluates the
supplier and creates a clear picture of the respective supplier
standing: Following are the factors on which score card must be
based:
- On time delivery
- Product technology
- Lead time
- Purchasing and material support
- Process control
- Process technology
- QMS Certifications
- Periodic Appraisal of Vendors
SCORE
CARD
|
S#
|
Vendor
Name
|
AREA
|
FORMAT
|
TOTAL
NO
|
Feb-10
|
||||
|
1
|
A
& A Metal Industries
|
QUALITY
|
QRR
(Q)
|
10
|
10
|
||||
|
QRR
(S)
|
10
|
10
|
|||||||
|
QPR
|
10
|
10
|
|||||||
|
PIR
|
10
|
10
|
|||||||
|
SUPPLY
|
V-BEH
|
30
|
30
|
||||||
|
PRICE
|
PCR
|
30
|
30
|
||||||
|
TOTAL
|
100
|
100
|
|||||||
|
GRADE
|
|
A+
|
|||||||
|
2
|
A
& Z Company
|
QUALITY
|
QRR
(Q)
|
10
|
10
|
||||
|
QRR
(S)
|
10
|
10
|
|||||||
|
QPR
|
10
|
6
|
|||||||
|
PIR
|
10
|
10
|
|||||||
|
SUPPLY
|
V-BEH
|
30
|
24
|
||||||
|
PRICE
|
PCR
|
30
|
30
|
||||||
|
TOTAL
|
100
|
90
|
|||||||
|
GRADE
|
|
A
|
|||||||
- Benefits & Limitation of DRP
- Improved service levels that increase on time deliveries and decrease customer complaints.
- Improved and more effective promotional and new product introduction plans
- Improved ability to anticipate shortages so that marketing efforts are not expended on products with low stocks
- Improved inventory coordination with other functions in the enterprise.
- Enhanced ability to offer customers a coordinated inventory management service.
- Reduced distribution center freight cost resulting from coordinated shipment
- Reduced inventory levels, since DRP can accurately determine what products are needed & when.
- Reduced warehouse space requirement because of inventory reductions
- Improved inventory visibility and coordination between logistics and manufacturing.
- Better budgeting since DRP can simulate inventory and transportation requirements.
- Pak Air force
- Pak Navy
- Pak Army
- Colleges
- Universities
Coca
cola, Pepsi, police
Multiple
institutions
Different
transport service providers
- Distribution Network Model
- Customers
When
demand arises from the customers (walk in, institutions and dealers),
raw material is arranged accordingly for the particular product.
There are different stores which are located in the factory office,
raw material such as CKD parts, Wire harness and stationary is
arranged accordingly.
Different
area offices are located in cities like Lahore, Islamabad, Karachi
and Multan, the main purpose is to provide parts and take customers
feedbacks who buy the product of Hinopak.
Area
representatives are offices which are set up by Hinopak in order to
represent the area offices of different cities, so that complains,
warranties and customer support can be provided to the end consumer
of the product.
The
objective of Sales dealer is to sales the product of Hinopak, demand
is generated by the customer or they directly contact the sales
dealer who deal in the products of Hinopak. The customer who wants to
buy the product can directly contact the sales dealer who are there
in different countries so f Pakistan.
They
provide all the value added services which include:
The method of implementation:
To
implement the automatic reorder system, the company needs to enhance
the oracle support, building a system in which the inventory levels
should be defined of each item setting a safety stock level also.
So
by using the automatic reorder system, the company will be saving a
lot of finances which were getting wasted in the ordering as well as
the non availability of items.
Therefore,
whenever the inventory level of any item will reach the reorder point
the automatic reorder system will generate the order for that item
and will place the order to the registered supplier of the company
for that particular product. The supplier will see that order from
its own interface, as he will be having the access to the company’s
system from his own login ID.
Thus
the whole process of the reordering will be automated and the company
will be saving a lot of cost which was previously getting wasted in
this process.
Bibliography:
The
reference for this project is taken from the following books.
- Essentials of supply chain management by Michael Hugos.
- Supply chain management by SUNIL CHOPRA, PETER MEINDL, and D.V KARLA
- Process management by JOEL D. WISNER & LINDA L. STANLEY.
- Total quality management by BESTERFIELD.
- Operations management by CHASE, JACOBS, AQUILANO.
- Materials management handbook.
- Hinopak QMS manual
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