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In the name of allah, the most benefIcent, the most mercIful

BEACHLOR of BUSINESS ADMINSTRATOR


Submitted To:

Program:

Prof : Saroop Ahmad MUHAMMAD TARIQ 11344

Group Leader:

Submitted By:

M.TARIQ Haroon Sadiq Adiba Jabeen Usman Sadiq Umer Farooq

11344 11349 11544 11360 11317

Class:

BBA (7) A

Superir

Superior University Lahore

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Contents

Acknowledgement and dedication ...................................................................... iv

Acknowledgement:- .............................. iv Dedication:- ....................................... iv


Executive Summary .............................................................................................. v Introduction of Supply chain ............................................................................... 6

1.1. 1.2.

Company Profile .............................. 7 OUR VISION ................................ 7

1.4 Commitment ...................................................................................................... 7 1.5 Universal Standards........................................................................................ 8 1.6 Quality Control ..................................................................................................... 8 1.7 Innovation ............................................................................................................. 8 1.8 Our Team .............................................................................................................. 8 1.9 Customer Care ...................................................................................................... 8 1.10 Life Styles ........................................................................................................... 9 1.11 Objectives ........................................................................................................... 9 1.12 Achievements ...................................................................................................... 9 1.13 Corporate Social responsibility ........................................................................... 9 1.14 Company's Future ............................................................................................. 10

Objective of the Report:- .................................................................................... 11 Supply Chain Model:-......................................................................................... 12 The Interview:- .................................................................................................... 14 Questions:- ........................................................................................................... 14 The Manager Answers ...................................................................................... 15 Findings:- ............................................................................................................. 18 Recommendations:- ............................................................................................ 18 Action Plan: 1 Price Forecast............................................................................. 19 .Action Plan: 2 Developing Supply Chain Strategy ......................................... 20 Action Plan: 3 Keep Communicating with Your Partners ............................. 21 Action Plan: 4 Avoiding Potential Pitfalls ........................................................ 21 Action Plan: 5 Implementation Of supply Chain ............................................ 21 Conclusion:- ......................................................................................................... 23 Learning out coming:- ........................................................................................ 23

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Acknowledgement and dedication

Acknowledgement:-

First of all we are thankful to one and only the Almighty Allah and his prophet Mohammed (PBUH) for always guiding us in the thick and thin and giving strengths and courage to complete this project, without them nothing would have been possible. Our special thanks to our teacher Saroop Shab who not only provide us Opportunity to do this assignment but also paid a Fair attention to do it. Then we would like to thank our parents whose prayers and support have always been influential in our lives. Finally we would like to thank all the people who directly or indirectly helped us out in this, and a thank you goes to the organizations whose data we used in this project as well.

Dedication:To Almighty Allah and his prophet Mohammed (PBUH), and to Our loving parents who gave our life to face the world and to our dearest sisters who gave us a lot and always there for use whenever we need them we also dedicate to all our teachers specially Prof. Saroop Shab to teach us and help us in every knowledge activity that we were done.

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Executive Summary Orient Group of Companies has been on the forefront of design and development, by coming up with new products and increasing its presence in all its featured markets. Established in Lahore in1957, today the Orient Group of Companies is one of the largest consumer goods companies of Pakistan. Orients products have proven themselves in functional performance parameters set by international industry experts. With the vision to become leaders of the industry, Orient strives to make each of its products, with careful R&D and intensive innovation. Orient aims to give its customers new and original products each year, which can be valued beyond the ordinary in every household The person to whom we interviewed was manager administration and also production manager named Homaeer Waheed. During the interview we asked different questions for the manager according to our book material and some questions were asked during the conversation. The interview was based on the topic of production. Mainly we asked questions for productivity, quality, competitiveness, strategy, forecasting and challenges. Our objective of the interview was to explore each and everything regarding supply chain but mainly our focus was to know that; What does an operations manager do? How he manages the quality? How he manages the inventory? What strategies does he adopt? What reports does he prepare? These were the mainly objectives of our project. We tried our best to complete these objectives and we succeeded in this but unfortunately the manager was not as cooperative as he didnt give the answers with full detail. The manager was giving us answers in just one line due to which we feel that he was trying to hide the information regarding the supply chain. But we somehow succeeded in getting out the main theme of his answers.

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Introduction of Supply chain

The sequence of organizations their facilities, functions, and activities that are involved in producing and delivering a product or service. Sometimes referred to as value chains. In todays world of globalization many apparel manufacturers are building strong suppl y chains to gain advantage over their competitors by offering the best value to their customers. The supply chain management has become very critical to manage risk, dynamism, and complexities of global sourcing. A totally integrated supply chain is required for the company to get gain the maximum benefits. The objectives of the supply chain and the performance measurements need to be understood in order to build the most effective supply chain. Performance measurements provide an approach to identify the success and potential of supply management strategies.

One major aspect of the supply chain management is to select the right sources of supply in the global business environment that can support corporate strategy. Contrary to the conventional adversarial relationships, effective supply chain management in the new competition suggests seeking close relationships in the long term with less number of partners.

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1.1.

Company Profile Orient Group of Companies has been on the forefront of design and development, by coming up with new products and increasing its Presence in all its featured markets. Established in Lahore in1957, today the Orient Group of Companies is one of the largest consumer goods companies of Pakistan.

Orients products have proven themselves in functional performance parameters set by international industry experts. With the vision to become leaders of the industry, Orient strives to make each of its products, with careful R&D and intensive innovation. Orient aims to give its customers new and original products each year, which can be valued beyond the ordinary in every household.

1.2.

OUR VISION To be the leading provider of Consumer Electronics goods in Pakistan and deliver the best to the nation and our country

1.4 Commitment At Orient Group of Companies we are driven first and foremost by our customers. The talent, energy and determination of each and every employee enable us to deliver the best to our customers and play a role in boosting the country.

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1.5 Universal Standards Our products are designed according to the universal standards so that our customers can enjoy the best of their experiences with them.

1.6 Quality Control Our stringent quality parameters and rigorous testing and re-testing allows for 100% confirmation of standards. From our services to our workforce, we are employed to ensure the best quality on offer.

1.7 Innovation Orient Group of Companies is built up of a dedicated workforce functioning as a team. We are working together on a mission to provide our very best to the customers.

1.8 Our Team

Our Vision is to be the leading provider of Consumer Electronics goods in Pakistan and deliver the best to the nation and our country.

1.9 Customer Care

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We value our customers and are devoted to deliver to them in a timely and professional manner. Our dedicated team deals each query with the utmost efficiency in order to gain customer satisfaction

1.10 Life Styles Our exquisite range of appliances is designed to bring vibrant changes in your lifestyle. Our attractive products certainly add more meaning to your life.

1.11 Objectives
Our target is to become Pakistan's top manufacturers in electronics and home appliances, photographic and lighting industries. We are evolving ourselves toward upgrading our products and services to serve our customers the best.

1.12 Achievements

Orient Group of Companies has been awarded with the Best Achievement Award by Lahore Chamber of Commerce & Industry in the year 2005. It is recognized as Pakistan's one of the most successful manufacturers and distributors of electronic goods.

1.13 Corporate Social responsibility Our Vision is to be the leading provider of Consumer Electronics goods in Pakistan and deliver the best to the nation and our country.

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1.14 Company's Future

Our Vision is our dream, soon to be fulfilled. Orient Group of Companies is progressing towards bringing world class electronic products to its customers and contributing to our nation.

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Objective of the Report:The Broad Objective of this report is: 1. To identify the factors related to supply chain effectiveness 2. To know about role of merchandiser in an electronic manufacturing company 3. To provide some recommendations on the basis of findings

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Supply Chain Model:-

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The Interview:We conduct a semi structured interview with the manager which was about two hours. In the interview we asked different questions related to supply chain and production production. Most of the questions were structured but few were asked during the conversation as they clicked the mind. We werent able to ask each and every question as he was covering every related thing in one answer but we somehow fulfill our need. Questions:We asked him different type of questions related to the supply chain and production department. Below is the list of the questions that we asked him; As has been Supply chain manager what tasks do you perform? How do you manage the workload? Which part in production department you give more attention? How do you manage the inventory? What steps do you take to smooth the inventory process? What minimum quantity of raw material do you keep? What is the ratio of wastage of raw material during manufacturing? Do you take any steps to cut the wastage of raw material? Do you make strategies for best results in the future? How do you evaluate the work of the employees? What steps do you take to improve the efficiency of the employees? Is any training offered to the employees? Is your company is a quality conscious company? How you manage the quality of the products? How you assure your customer with best quality? Have you faced any major conflict during the manufacturing process? What strategy do you adopt to solve the problems? How much there is an influence of other departments to production supply chain? What reports do you make? Do you forecast the supply chain process? Who are your big competitors in the market?

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On which basis youre company compete with competitors? These were the structured questions which we asked the production manager. There are a few more questions which were not structured and were asked as the click the mind so their answers are attached with the structured answers. The Manager Answers He said that he has to control and look everything in the supply chain department. He was appointed eight years ago and now he controls almost the whole supply chain department. He said that there are many different tasks which he has to perform every day like he have to check the supply chain process and production whether they are running well or not, have to maintain the required labor for the supply chain, have to ensure the availability of raw material, have to order that what and how much have to produce and have to send the consignment etc. He said that there are very less chances of the heavy workload of supply chain and production department as everything works as per the routine work but sometime when any order got out of order then we arrange extra shifts of labor on other same order but doesnt let the consignment. Actually I concentrate on every part of the supply chain department as it is my duty to keep it in running phase but there are two main parts one is raw material and the other is labor. Without these the production cannot be sustain so I tried hard to keep these two parts running. Inventory is managed as per our sales. We give preference to those orders which are manufactured on the regular basis. For these kinds of orders the inventory is managed as per our scheduled frame. As I said earlier the inventory process doesnt get interrupted as everything is according to the scheduled frame. Actually our main raw material is electronic parts which is the basic ingredient in our products therefore we have to keep the raw material stock for up to three months whose quantity does vary as per our current sales. We have a dying unit where our raw material is getting its final shape for the product making and it is the responsibility of the raw

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material department that they sustain the requirement of the production department. Wastage of raw material is very minor in our process as we adopt up to assembling processes. We adopt up to Assembling manufacturing processes due to which we little the wastage of material. As I said earlier my company is a quality conscious company so we make up to date strategies with which we try to meet the customer demand in effective and efficient way. We have certain criteria for employees performance evaluation like through the quality of the electronic luggage we can evaluate the performance. We have cameras installed in the labor area where we keep an eye on every employee. We believe in facilitating our men therefore we provide best and suitable working environment to our employees so they can perform well. Actually lower class labor needs only one time training like when the new machine arrives at the factory but we provide continuous training in the middle and upper class labor until complete knowledge. Other quarterly trainings are offered to the employees to keep them up to date. Of course, quality is the main asset of our company. We didnt compromise on the quality. We try hard to provide our customers with the best quality. We have a quality assurance department that checks the quality of the electronics luggage according to the Pakistan & International standards. Our awards and the quality certificates are the mirror of our performance so our customer can ensure the quality through these awards and quality certificates. Three years ago there was a severe problem of power but then for long term planning we bought a heavy generator due to which our production process didnt interrupt. I didnt face any other bottleneck

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We are providing the best environment for our employees which lesser the conflicts among them. I didnt face any major conflict. We do prepare our plans for production at the start of the week to ensure that everything will run according to the schedule so this strategy helps us to minimize any problem & conflicts with the production process. Other departments put stress on us when the production process slows down otherwise in the routine work they send us orders and we dispatch them on the due date. There are different reports which we make on a daily, weekly and monthly basis. Like we make dispatch reports daily, orders report daily, inventory report daily, labor report daily etc. Through our current production speed and demand of the products we put focus on those areas or products which are highly sold so we do forecast for the current sales that this particular product will need this % of raw material which we have to keep. Moreover we also keep an eye on the latest machinery which is being used in the assembling the electronic stuff so that we can also acquire that to boost our production. Every quality stuff maker is our competitor but I would like to say few names like electronic and electric stuff, LG, SONY, HAIRE, PL Quality is the main asset of our company but there is another thing on which basis we feel that we are competing in the market and that is our delivery time. We strive best to attain the minimum production time by our strategies and proper scheduling. We deliver the best time to our customers through the best manufacturing process.

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Findings:1. In term of demand forecasting system the supply chain Orient is moderately effective. 2. In term of price forecasting system for raw material, the supply chain of Orient is ineffective. 3. Order placement system Orient is moderately effective 4. Supply chain is moderately effective in case inventory management. 5. In term of order lead time the Orient is moderately effective . 6. Supply chain is highly effective in term of production facility. 7. Supply chain is moderately effective in terms of production management. 8. In term of communication with supply chain partners supply chain is marginally effective. 9. Supply chain orient is ineffective in term of communication with suppliers. 10. Supply chain is highly effective in term of shipment delivery (Distribution Management). 11. In term of distribution flexibility supply chain is moderately effective.

Recommendations:Orient should improve their supply chain practice in those areas in which are current ineffective or marginally effective. Price forecasting system orient is ineffective. If future price of raw materials are not accurately predicted, the production cost will be increased as consequence. So, price forecasting system raw material should be improved. Communication with supply chain partners, especially with suppliers should be improved as the study finds that this function is currently in marginally ineffective level. Although currently distribution schedule is not hampering with this lack of communication but it can seriously impacts on production and increase production cost. Communication with suppliers should be more frequent and feedback should take in order to get production materials timely and in right price.

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Supply chain areas which are currently moderately effective level (demand forecasting, order placement, inventory management and production management, distribution flexibility) should bring in to highly effective level.

Action Plan: 1 Price Forecast They needed a more sophisticated pricing approach, not a more complicated one and Idea price system gives them a solution to my pricing problems that is easy to use. I never knew that providing their company with access to advanced analytics would be so simple to implement and inexpensive to their all. Ideas pricing System enables company managers to more accurately forecast occupancy, quickly set daily raw material rates, and ultimately make more competitive pricing decisions for their company. The systems simplified approach, intuitive design and powerful functionality minimize the amount of training and interaction needed to learn and operate the system. In just a few clicks, users can upload pricing decisions to all necessary distribution channels.

An immediate revenue lift due to the systems advanced analytics and increased market insight.

Usable by busy general managers - The system enables GMs or other company staff to make efficient revenue management decisions without interrupting regular responsibilities.

Increased time and energy for enhancing guest satisfaction through reduced time and energy spent manually collecting, entering and analyzing market data. High impact initiative Idea System proven analytics, award winning client support, rapid implementation through delivery and minimal upfront costs delivers high value and little risk.

Enhanced brand value proposition Limited service brands can offer simplified pricing capability to current and prospective hotel owners.

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.Action

Plan: 2 Developing Supply Chain Strategy

Understand the Business Strategy The first step is for supply chain executives to clearly understand how the enterprise chooses to compete. This is important not only for the obvious reason of working off the same play book, but also for the reason that it forces the supply chain operation to see itself as a customer facing entity serving the competitive goals of the enterprise not merely an operational department. Supply chain strategy is not simply a linear derivative of the business strategy Assess the Extended Supply Chain The next step is to conduct a detailed, realistic assessment of the capabilities that Exist within the organization and even the extended supply chain. Begin by closely scrutinizing your organizations assets and evaluate how well they support the strategy. Old machinery and disparate systems may mean high operational overhead and costly process inefficiencies and redundancies clearly not supportive of a low cost provider strategy. Develop an Implementation Plan From this critical work emerges the go forward supply chain strategy directly tied to the business strategy, highly specific as to enablers and metrics, and with defined set of implementation requirements and contingencies. The development of an implementation plan should include activities and tasks, roles, responsibilities, a corresponding timeline, and performance metrics. Establish sub team to shepherd the execution and provide project management responsibility to resolve issues and track status. Development Considerations Cooperate and Collaborate with Your Partners Throughout the development process remember to include your supply chain partners. While you dont necessary need to divulge the full details of your strategy, you can certainly communicate how you would like to do business. Ideally, seek out mutual goals that both organizations can execute on. Not only will you be one step closer to realizing your supply chain strategy, you will learn more about the companies that you do business with. For example, collaboration in product design may meet your need Tostem R&D costs and also alert you to new product concepts that you wouldnt discover without working with your customer. Superir

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Outsource Where Appropriate Part of developing a supply chain strategy includes evaluating opportunities to outsource areas that are not your core competency. If someone else can do it cheaper, it may be worth outsourcing not only to drive down costs, but also to focus more resources on the core competencies your organization does well. Action Plan: 3 Keep Communicating with Your Partners Executing a supply chain strategy means dealing with many different entities, both internally and externally. Just as it is crucial to align the supply chain strategy with the business strategy, it is equally important to execute in a manner consistent with these different groups or stakeholders. The goals of your supply chain components and those that you deal with must be similar and conducted at the same speed. Your organization may be able to move at speeds other supply chain entities are unable to maintain, resulting in misalignment and poor efficiencies. And some of your supply chain partners may not have the resources to commit to realizing these goals. Good communication can keep the extended supply chain in sync. Action Plan: 4 Avoiding Potential Pitfalls Even before the well publicized dot com collapse, business failures due to poorly Implemented strategy were very frequent. Fortune Magazine reported in a study that CEO strategy failures occurred primarily (est. 70%) because of failure in Execution, not with the vision and strategy development. The real problem isnt the high concept boners the bowfins love to talk about. Its bad execution. As simple as that: not getting things done, being indecisive, not delivering on commitments.

Action Plan: 5 Implementation Of supply Chain The implementation of supply chain management (SCM) can be both beneficial and challenging to your business. Determining supply chain challenges before they happen is critical to SCM success, as the failures and successes are extremely visible to your trading partners. In order to achieve successful implementation of SCM, take note of the following supply chain challenges: Do not assume SCM Technology Fixes Everything. SCM technology does many things, but it cannot do it all. One of the most unrealistic assumptions is that SCM technology will help you control your supply chain and vendor

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resources. Before you rely too heavily on SCM technology, you must first have a specific level of organized control within your supply chain relationships. Supply chain management technology is most effective when you have the ability to control your logistic providers and trading partners. Do not Use the Past to Predict the Future. Relying on past performance to predict future sales can cause big problems. Instead, track actual sales as they happen; the supply chain network will react quickly to any changes in consumer trends. This tactic is particularly beneficial in a retail supply chain, when the item being sold is unremarkable and can be purchased from a variety of retailers. Do not rely on Sale Data. Never rely solely on sale data when making critical decisions. Its important to understand and utilize real- time inventory levels, cash flow and financial ratings when making critical supply chain decisions. If you maintain your supply chain metrics, youll avoid making partnership errors with both suppliers and customers. Do not forget to Communicate. Another common supply chain challenge is lack of communication. Both suppliers and customers need continuous monitoring, as well as collaboration to ensure supply meets demand. Nothing can replace face-to-face communication; by fostering personal relationships with both customers and suppliers, the entire supply chain process will be embraced by all. Do not forget about a suppliers capability One of the more difficult aspects of supply chain management is trying to understand the full capabilities of your suppliers. By understanding what a supplier can do during critical times can greatly increase your response time to changes in demand. Skilled supply chain managers will often review lead times, burst capacity, standard capacity and quick turn capabilities with their suppliers to ensure the suppliers capabilities meet the needs of the company.

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Conclusion:Supply chains are effective when the exchange value of the system fulfills expectations of the supply chain members. Todays business environment is more global and competitive than it has been in the past. The modern business is characterized with shorter product life cycles, rapid new product introductions, increasingly knowledgeable, well informed, and sophisticated customers. This forces supply chains to be more effective. The modern supply chains are thus expected to respond rapidly, effectively, and efficiently to changes in the market place so as to sustain, and further more create competitive advantage.

Learning out coming:Throughout the interview we tried our best to catch the best possible answers but the manager was looking in a hurry and he gave us answers very shortly. Even he didnt share any real time experience with us but overall it was a good interview which helps us a lot to learn and experience new things about Supply chain department which we never experienced before. Through the interview we came to this point that the Supply chain manager job is of much responsibility because he has to ensure the continuous supply by keeping all the inputs into right condition. He has to come up with day to day challenges of the supply process which he solves by adopting proper and effective strategies. The manager has to keep himself up to date with the new trends and techniques which make him profitable for the organization.

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