Summer Project Draft

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Gap Analysis of Supply Chain (Inbound)

Abstract

Supply Chain is an important function coordinates the activities of all departments in a

company. Activities are classified as value added and non-value added activities. Project is

about the study of functions in departments from start to end and identify the value added and

non-value added activities. The department’s daily activities are studied and the gaps

identified can be solved by the suggestions proved. The following are the departments that

are taken for doing the project.

1. Production

2. Stores

3. Internal Quality Control

4. Finance

5. Purchase

Entire study is for the month of April. Data is collected from all the departments and analysis

is done based on Vendor Payments, Material Receipt Report Cleared, Production Plan and

Achieved Plan. Suggestions are given for improving the performance of the company. 5S an

important Lean tool is used for increasing the efficiency of the company. 5S is evaluated for

two departments, internal quality control and Printer Line Integration and method to improve

the efficiency are given. Company is currently following the ISO 9001:2008 certified

standards and the reporting records of various departments are verified according to the

information provided in the website of the company. Majority of the reporting structure are

followed as per the information provided and some of the records are to be updated as per the

requirement of the present conditions.

Narendra Kumar Ch - 1121117

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1.0 Introduction

A supply chain is a network of facilities and distribution options that performs the functions

of procurement of materials, transformation of these materials into intermediate and finished

products, distribution of these finished products to customers. Supply chains exist in both

service and manufacturing organizations, although the complexity of the chain may vary

greatly from industry to industry to firm.

Below is an example of a very simple supply chain for a single product, where raw material is

procured from vendors, transformed into finished goods in a single step, and then transported

to distribution centres, and ultimately, customers. Realistic supply chains have multiple end

products with shared components, facilities and capacities. The flow of materials is not

always along an arbores cent network, various modes of transportation may be considered,

and the bill of materials for the end items may be both deep and large.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing

organizations along the supply chain operated independently. These organizations have their

own objectives and conflicting. Marketing's objective of high customer service and maximum

sales dollars conflict with manufacturing and distribution goals. Many manufacturing

operations are designed to maximize and lower costs with little consideration for the impact

on inventory levels and distribution capabilities. Purchasing contracts are often negotiated

with very little information beyond historical buying. The result of these factors is that there

is not a single, integrated plan for the organization---there were as many plans as businesses.

Clearly, there is a need for a mechanism through which these functions can be integrated

together.

Supply chain management is typically viewed to lie between fully vertically integrated firms,

where the entire material flow is owned by a single firm and those where each channel

member operates independently. Therefore coordination between the various players in the

chain is key factor in its effective management. Such a team is more competitive when each

player knows how to be positioned for the hand-off. The relationships are the strongest

between players who directly pass the entire team needs to make a coordinated effort to win

the race.


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Figure 1.1 Flow Diagram for Supply Chain Management

1.1 Supply Chain Decisions

We classify the decisions for supply chain management into two broad categories -- strategic

and operational. As the term implies, strategic decisions are made typically over a longer

time horizon, closely linked to the corporate strategy, and guide supply chain policies from a

design perspective.

On the other hand, operational decisions are and focus on activities over a day-to-day basis.

The effort in these types of decisions is to effectively and efficiently manage the product flow

in the "strategically" planned supply chain.

1.2 Major Decision Areas in Supply Chain Management

There are four major decision areas in supply chain management:

1) Location

2) Production

3) Inventory

4) Transportation (distribution), and there are both strategic and operational elements in these

decision areas.


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1.2.1 Location Decisions

The geographic placement of production facilities, stocking points, and sourcing points is the

natural first step in creating a supply chain. The location of facilities involves a commitment

of resources plan. Once the size, number, and location of these are determined, so are the

possible paths by which the product flows through to the final customer. These decisions are

of great significance since they represent the basic strategy for accessing customer markets,

and will have a considerable impact on revenue, cost, and level of service. These decisions

should be determined by an optimization routine that considers production costs, taxes, duties

and duty drawback, tariffs, local content, distribution costs, production limitations, etc.

Although location decisions are primarily strategic, they also have implications on an

operational level.

1.2.2 Production Decisions

The strategic decisions include what products to produce, and which plants to produce them

in, allocation of suppliers to plants, plants to DC's, and DC's to customer markets. As before,

these a big impact on the revenues, costs and customer service levels of the firm. These

decisions assume the existence of the facilities, but determine the exact path(s) through which

a product flows to these facilities. Another critical issue is the capacity of the manufacturing

facilities--and this largely depends on the degree of vertical integration within the firm.

Operational decisions focus on detailed scheduling. These decisions include the construction

of the master production schedules, scheduling production on machines, and equipment

maintenance. Other considerations include workload quality control measures at a production

facility.

1.2.3 Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of

the supply chain as either raw materials, semi-finished or finished goods. They can also be in-

process between locations. Their primary purpose to buffer against any uncertainty that might

exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40

percent of their value, their management is critical in supply chain operations. It is strategic

in the sense that top management sets goals. However, most researchers have approached the

management of inventory from an operational perspective. These include deployment

strategies (push versus pull), control policies --- the determination of the optimal levels of


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Gap Analysis of Supply Chain (Inbound)order quantities and reorder points, and setting safety stock levels, stocking location. These

levels are critical, since they are primary determinants of customer service levels.

1.2.4 Transportation Decisions

The mode choice aspect of these decisions is the more strategic ones. These are closely linked

to the inventory decisions, since the best choice of mode is often found by trading-off the cost

of particular mode of transport with the indirect cost of inventory associated with that mode.

While air shipments may be fast, reliable, and warrant lesser safety stocks, they are

expensive.

Sea or rail may be much cheaper, but they necessitate holding relatively large amounts of

inventory to buffer against the inherent uncertainty associated with them. Therefore customer

service levels, geographic location play vital roles in such decisions. Since transportation is

more than 30 percent of the logistics costs, operating efficiently makes good economic sense.

Shipment sizes (consolidated shipments versus Lot-for-Lot), routing and scheduling of

equipment are key factors in effective management of the firm's transport st

1.3 Drivers of Performance

To perform efficiently, some drivers are useful for success of SCM. The role of drivers in

SCM is discussed below:

1.3.1 Facilities

If we think of inventory as what is being passed along and transportation as how it is passed

along, then facilities are the where of the . They are the location to or from which the

inventory is transported. Within a facility, inventory is either processed or transformed into

another state (manufacturing) or it is stored before being shipped to the next stage

(warehousing).

1.3.2 Inventory

Inventory exists in the because of a mismatch between supply and demand. This mismatch is

international at a steel manufacturer where it is economical to manufacture in large lots that

are then stored for future sales. The mismatch is also international at a retail store where

inventory is geld in anticipation for future demand. An important role that inventory plays is

to increase the amount of demand that can be satisfied by having product ready and available

when the customer wants it.


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1.3.3 Transportation

Transportation moves product between different stages. Like the other drivers, transportation

has a large impact on both responsiveness and efficiency. Faster transportation, whether in

the form of different modes of transportation or different amounts being transported, allows

being more responsive but reduces it efficiency. The type of transportation a company uses

also affects the inventory and facility locations.

1.3.4 Information

Information could be overlooked as a major driver because it does not have a physical

presence. Information, however, deeply affects every part. Its impact is easy to underestimate

as information affects many different ways.

Consider the following:

Information serves as the connection between the various stages, allowing them to

coordinate and bring about many of the benefits of maximizing total profitability.

Information is also crucial to the daily operations of each stage. For instance, a

production scheduling system that allows a factory to produce in an efficient manner.

A warehouse management system uses information to create visibility of the

warehouse’s inventory. The company can then use this information to determine

whether new orders can be failed.

a. Impact of the promotion on demand

b. Product margins

c. Cost of holding inventory

d. Cost of changing capacity

When a promotion is offered during a period, that period’s demand will go up. This increase

in demand results from a combination of the following three factors:

a. Market growth

b. Stealing share

c. Forward buying


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1.4 The Role of IT in the SCM:

All the drivers discussed up until this point have dealt directly with some physical aspect.

Information is the drivers that serves as the glue allowing the other three drivers to work

together to create an integrated, co-ordinated.

Information is crucial to performance because it provides the foundation on which processes

execute transactions and managers make decisions. Without information, a manager will not

know what customers want, how much inventory is in stock, and when more products should

be produced and shipped. In short, without information a manager can only make decisions

blindly. Therefore, information makes the visible to a manager. With this visibility, a

manager can make decisions to improve the performance. In much way’s information is the

most important of the four drivers because without it, none of the other drivers can be used to

deliver a high level of performance.

Given the role of information in success, managers must understand how information is

gathered and analysed. This is where IT comes into play. IT consists of the hardware and

software throughout that gather, analyses, and acts on information. IT serves as the eyes and

ears of management in capturing and analysing the information necessary to make a good

decision.

Using IT system to capture and analyse information can have a significant impact on a firm’s

performance. For example, a major manufacturer of computer work stations and serves found

that much of the information on customer demand was not being used to set production

schedules and inventory levels.

Information is the key to the success because it enables management to make decisions over a

broad scope that crosses both functions and companies.

Information must have the following characteristics to be useful when making decisions.

Information must be accurate

Without information that gives the true picture of the state of the, it is very difficult to make

good decisions. That is not to say all information must be 100 percent correct but rather than

the data available paint a picture of reality that is at least directionally correct.


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Gap Analysis of Supply Chain (Inbound)Information must be accessible in a timely manner

Often accurate information exists, but by the time it is available, it is either out of date or if it

is current, it is not in an accessible form. To make good decisions, a manager needs to have

up-to-date information that is easily accessible.

Information must be of the right kind

Decision makers need information that they can use. Often companies will have large

amounts of data that is not helpful with decision making. Companies must think about what

information should be recorded so that valuable resources are not wasted collecting

meaningless data while important data goes unrecorded.

1.5 The Role of E-Business

E-business is the execution of business transaction via the internet. transactions that involve

e-business include the flow of information, product, and funds. For instance, the following

are all transactions that can be executed with e-business:

Providing product information to participants across the

Placing orders with suppliers

Allowing customers to place orders

Allowing customers to track orders

Filling and delivering orders to customers

Receiving payment from customers

These transactions are obviously not new tasks that have come into existence through the

creation of e-business. Rather, they are traditional tasks performed by allowing them to take

place over the internet where they can often be executed more efficiently and with a higher

level of responsiveness.

E-business can be divided into two main categories, B2C e-business involve transaction

between a company and a customer. Examples include Amazon.com, Dell, and Wal-Mart

selling products to customers over the internet. A B2B e-business involves transactions

between two companies. Examples include Dell selling computers to corporations and Intel

Selling microprocessors to Dell.


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1.6 Activities of SCM

SCM is a cross-functional approach to managing the movement of raw materials into an

organization, certain aspects of the internal processing of materials into finished goods, and

then the movement of finished goods out of the organization toward the end-consumer. As

organizations strive to focus on core competencies and becoming more flexible, they have

reduced their ownership of raw materials sources and distribution channels. These functions

are increasingly being outsourced to other entities that can perform the activities better or

more cost effectively. The effect has been to increase the number of organizations involved in

satisfying customer demand, while reducing management control of daily logistics

operations. Less control and more partners led to the creation of concepts. The purpose of IS

is to improve trust and collaboration among partners, thus improving inventory visibility and

improving inventory velocity. Several models have been proposed for understanding the

activities required to manage material movements across organizational and functional

boundaries. SCOR is a model promoted by the Council. Another model is the SCM Model

proposed by the Global Forum (GSCF). activities can be grouped into strategic, tactical, and

operational levels of activities.

1.6.1 Strategic

Strategic network optimization, including the number, location, and size of

warehouses, distribution centres and facilities.

Strategic partnership with suppliers, distributors, and customers, creating

communication channels for critical information and operational improvements such

as cross docking, direct shipping, and third-party logistics.

Product design coordination, so that new and existing products can be optimally

integrated into the , load management

Information Technology infrastructure, to support operations.

1.6.2 Tactical

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations, scheduling, and planning

process definition.

Inventory decisions, including quantity, location, and quality of inventory.


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Gap Analysis of Supply Chain (Inbound)Transportation strategy, including frequency, routes, and contracting.

Benchmarking of all operations against competitors and implementation of best

practices throughout the enterprise

1.6.3 Operational

Production and distribution planning, including all nodes.

Production scheduling for each manufacturing facility (minute by minute).

Demand planning and forecasting, coordinating the demand forecast of all customers

and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in collaboration

with all suppliers.

Inbound operations, including transportation from suppliers and receiving inventory.

Production operations, including the consumption of materials and flow of finished

goods.

Outbound operations, including all fulfilment activities and transportation to

customers.


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Figure 1.2 Flow Diagram of Supply Chain Channels

1.7 Logistics:

Logistics is a process which runs from the vendor's door through to the customer's. It

interacts with almost every group within the company and with many companies outside the

company, including its customers. Effective logistics revolves around five key issues--

movement of product, movement of information, time/service, cost and integration. Each of

this is critical to the success of logistics and to creating value-added to the company and

improving competiveness.


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2.0 Industry Profile

Printers market in India is currently undergoing through a phase wherein the market can be

characterized with steady growth and a cut-throat competition amongst players operating in

the market space. Prime factors influencing growth in the market happen to be the prevailing

of major active industry verticals and the exponential growth in content creation. Further, the

presence of a massive SMB population also boosts the market by a large extent, wherein

SMBs shell out a decent proportion of their revenues for computational purchases.

The market comprises of multiple segments including inkjet, dot matrix and laser printers.

“On-going advancement in the field of technology has resulted in the evolution of state-of-the

art multifunction devices which are capable of facilitating several tasks and it is this device

which is gaining a significant momentum in the market,” finds the report. An array of factors

including high content generation, enterprise mobility, declining prices and the huge PC base

in India basically propels the market forward. An on-going tendency to adopt inkjet

multifunction devices, cloud printing, green printing and managed printing services is on the

rise in the India.

The overall A4 printer sell-through in India's top 65 cities crossed 5.5 lakh units during the

Jan-March 2012 quarter. Laser printer sell-through in top 65 cities grew 4% in 1Q 2012 over

4Q 2011 while Inkjet printer sell-through fall 5% sequentially. The overall market recorded a

mere 0.4% growth. This was reported in the India 65-City Monthly Printer Market Review,

1Q 2012 published by leading IT, Telecommunications, Semiconductor & Electronics market

intelligence firm, Cyber Media Research. The weak macroeconomic outlook and Hard Disk

Drive supply chain dynamics did not help the India printer market register healthy growth

rates.

A weaker Rupee is exerting pressure on vendors to increase printer prices ahead of the

coming festive season. The contribution of laser printer sell-through to overall India A4

printer shipments increased 2 percentage points, while that of inkjet sell-through declined by

over 2 percentage points in 1Q 2012 vis-à-vis 4Q 2011.The trends in the last three quarters


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(3Q 2011 vs. 4Q 2011 vs. 1Q 2012), contribution of laser printers as category has increased

by 5% points, while that of inkjet printers has declined by 5%.While the modest demand

from the domestic SMB enterprise base triggered a growth in the laser Multi-Function printer

category, the lack of a strong consumer demand deserted inkjet printer growth in 1Q 2012.

In the overall India A4 printer market, HP maintained its leadership position with 56% share

in terms of sell-through (units), followed by Canon, Epson, and Samsung in that order. While

HP lost share in both inkjet and laser categories in 1Q 2012 vis-à-vis 4Q 2011, Epson gained

share in the inkjet segment, while Canon gained in both. In terms of Inkjet A4 Printer sales,

HP led the market with 71%, followed by Epson and Canon, respectively during 1Q 2012.In

terms of Laser A4 Printer sales, HP retained the top spot with a 53% units share. Canon and

Samsung grabbed the second and third places, respectively.

In DMP sales, Epson was the leader with 49% share of unit sell-through, followed by TVSe

and WeP. Growth in laser multifunction printer penetration was prominent in West and

South. Laser as a category displayed growth and attracted vendor focus. Irregular supplies of

the top selling 1020+ held back HP in the laser segment. In the inkjet printer category, over

the last three quarters (3Q 2011 vs. 4Q 2011 vs. 1Q 2012), HP lost share in Eastern India and

Northern India to Canon and Epson, in particular.

In the laser printer category, during the same period, HP gained share in terms of sell-through

in Eastern, Southern and Western India, while holding fort in the North. Canon and Samsung

lost share in these regions, allowing HP to consolidate.


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3.0 About the Company

WeP Peripherals Limited, one of India’s largest employee-owned companies, was established

in September 2000. Starting primarily with Dot Matrix Printers, WeP is now diversified into

emerging and growing segments including Power Solutions, Retail Solutions and After

Market while continuously strengthening its portfolio of printers.

With the ever growing demand for printers and UPS in the country, among the small and

medium enterprises, WeP’s products are designed keeping in mind the current requirements

of the market, which are high on quality and yet cost effective. Our growing product portfolio

reflects the rapid pace we have gained over the years. WeP design, develops, manufactures

and services these products.

Impact Printers, High Speed Printers & Line Matrix Printers have been the traditional

business for WeP. WeP continues its dominance in these areas. WeP’s has two state of art

manufacturing facilities at Mysore (Karnataka) and Baddi (Himachal Pradesh). They are

state-of-the-art manufacturing facilities having the capacity to produce more than 650,000

products and 1 million consumables per annum. WeP has created India’s largest IT products

sales infrastructure of 10,000 active retail outlets and supports more than 2,000 large business

consumers directly.

To enable superior product development, WeP has expanded its Research & Development

group with in-depth domain expertise and specialization in cross-functional project

management process. Research and Development is inspired by trends and the consumers'

desires. We at WeP have aligned R&D to deliver consumer sensitivity in our product design

and development. We have dedicated Research & Development team focusing on each

product line. Consumers can look forward to MORE “WoW” & tech fantasy products.

WeP is known for its quality with 6 sigma initiative & ISO 9000 standards of certification for

its Product Development, Manufacturing, Marketing and Support. We have recently been

certified ISO 14001:2004 for our Himachal Factory and ISO 9001-2000 for our support

function.


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WeP has direct sales and support offices in 19 Cities in India, and all WeP Products are sold

through 200+ channel partners present in 172 locations. WeP addresses over 15000 resellers

across the country. There are 38 locations with warranty stockiest that provide spare support

to all products during the warranty period. "WeP Warranty Centres" are WeP owned outlets

providing support to walk-in customers in 5 locations.

WEP Quality formula is named as IDEA.

All WeP Quality initiatives are integrated under IDEAS (I Drive Excellence Always)

umbrella.

IDEA encompasses -

Balanced scorecard for driving implementation of Strategy

ISO 9001, ISO 14001 for deploying systems & processes

Continual improvement through 6 sigma & WCM initiative Putting Visions Into

Practice

WeP follows a 3 year rollout business plan. Success of plans depends largely on the

execution success, the reason why only 10% of the companies succeed in effective strategy

implementation.WeP adopted the BalancedScorecard methodology to drive its strategy

execution in July'04.

Balanced Scorecard (BSC) is a concept helping you translate strategy into action. BSC starts

from the company and strategies and critical success factors are defined. Performance

measures are constructed that aidsetting and performance measurement in areas critical to the

strategies.

The balanced score card measures a company's performance in four major areas:

Financial Perspective: How does financial strategy increase shareholder value? Two

basic levels get addressed here: revenue growth and productivity improvement.

Customer Perspective: The core of any business strategy is the customer value

proposition, which describes the unique mix of products, service attributes, customer

relations, and corporate image that a company offers.


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Internal Processes Perspective: Once the financial and customer perspectives are

clear, this perspective defines which critical business processes must should a

company excel at.

Learning and Growth Perspective: The foundation of any strategy map is the learning

and growth,which defines the core competencies, skills, technology, and corporate

culture necessary to support the other three perspectives? These objectives enable a

company to align its human resources and information technology with its strategy.


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Figure 3.1 Promise To Action


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Figure 3.2 Transformation Change Process

3.1 Systems & Processes

ISO certifications milestones -

ISO 9002 for Factory in Dec 1993

ISO 9002 for Support in Aug 1995

ISO 9001 for factory in Jan 1998

ISO 9002 for Sales & Mktg. May 98

ISO 9002 for Sales & Mktg. May 98

Launched ISO online for factory & HO in 2001

ISO 9001-2000 for factories in 2003

ISO 9001-2000 for New Factory at Himachal in 2005

ISO 9001-2000 for Support in 2007

ISO 14001-2004 for Factory at Himachal in 2007

Systems & Processes certified to ISO 9001

ISO 9001 is a key area that we have always focussed on for building quality in our processes.

This provides a solid foundation for all our initiatives. Our Manufacturing factories, R&D&

Support functions are certified for ISO 9001:2000 version.


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ISO 9000-2000 recommends that complying company determines, collects and analyses

appropriate data to demonstrate the suitability and effectiveness of the quality management

system and to evaluate where continual improvement of the effectiveness of the quality

management system can be made. WeP has a structured process for monitoring, measuring

and analysis of data relating to

Customer satisfaction

Conformity to product requirements

Characteristics and trends of processes and products including opportunities

for preventive action, and

Performance of Suppliers & Partners

Why Six Sigma?

In today's competitive scenario, WeP has decided to increase the quality bar of its products &

services to meet world class standards .Six sigma is one methodology, which helps us in

reaching the world class Standards. WeP has adopted 6 Sigma as a process improvement

methodology since 6 Sigma was launched in Wipro in 1997.

What is Six Sigma Quality?

Sigma is term, which indicates how well, or defect free a product or Processes is. As the

Sigma level grows higher, the quality of product or service is better & better. At 6 Sigma it is

only 3.4 defects in 1 million opportunities. At 3 Sigma level the number of defects will be as

high as 66807 in 1 million opportunities. In simple terms, Six Sigma involves reducing

defects to 3.4 in a million. 4 Sigma & 5 Sigma represent 6210 & 233 defects respectively.

Why 99 % efficiency is not enough?

40 mins of unsafe drinking water every month.

Two unsafe plane landings per day at O'Hare International Airport in Chicago.

16,000 pieces of mail lost by the Postal Service every hour.

500 incorrect surgical operations each week.

50 new-born babies dropped at birth by doctors each day.

22,000 cheques deducted from the wrong bank accounts each hour.


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Our Six Sigma initiative is driven from the top, and each employee believes in its success.

Our 3 year Vision is to be India's Most Valuable Tech Fantasy Products, Solutions and

Services enterprise by 2007 and this we deliver by adhering to OUR CUSTOMER AND

CONSUMER SENSITIVE ORGANISATIONAL VALUES. Six Sigma has complete

synergy with our value system. We aim to consistently raise the quality of our processes so

that we can deliver world-class products and services to our customers. The ultimate aim, as

always, is customer satisfaction.

Figure 3.3 Six Sigma Defects Diagram


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3.2 Methodologies to be employed in Six Sigma Practice

Following table gives the 6 sigma methodologies used for designing new products, improving

existing products & re-engineering processes. WeP focuses on the following

Figure 3.4 Six Sigma Methodologies

Black Belt Certification:

We have closed to around 60 projects.

Black Belt Certification Program in 2007 was conducted wherein high performing

employees were picked from each function and put through 16 days of rigorous Black

Belt training.

We have a mix of full time and part time Black Belts who facilitate the 6 sigma

projects.

Apart from 6 sigma projects, WeP also has a FAST TRACK methodology called as

TURBO PROJECTS to crack low hanging problems. This methodology uses basic

Quality Tools. Wep has benefited from the quick improvements brought in by over

160 Turbo projects completed across all functions.

WeP also tracks the financial savings from the improvement projects. Some statistics

Savings of Rs 16 MN in 2000-2001



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3.3 Key players in India for Printers and UPS Manufacturing

Canon

Olivetti

Epson

HP

Lenovo

Lexmark

Panasonic

PENTAX

Ricoh

Samsung

Konica Minolta

Kyocera

Xerox

TVS Electronics

WeP

3.4 Acquisitions in Wep Peripherals

Bangalore-based Datanet Systems Ltd is acquiring the printer business of WeP Peripherals

Ltd (formerly Wipro ePeripherals Ltd), one of the largest employee-owned firms in India and

a key shareholder of the public-listed Datanet, the company

In a pure stock transaction, Datanet will issue 11.7 million shares to WeP Peripherals’

shareholders to buy the business. At this price, the deal is valued at around Rs 17 crore ($3.2

million).Incidentally, WeP Peripherals owns 18 per cent stake in Datanet and is a co-

promoter of the company. Agarwal doubles up as the chief of both Datanet and WeP and is

one of the largest shareholders of Datanet.


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WeP consolidated its position by acquiring Elnova, a Delhi-based UPS company with a

significant presence in North & East India. Elnova has over 3 decades of experience in

manufacturing of Online & Line Interactive power supply systems and its product range

includes UPS, Constant Voltage Transformers (CVT), SMF batteries & Emergency Lights.

With this acquisition, WeP Power Business grew by 73% in 2010-11 and strengthened its

presence across the length & breadth of the country.

3.5 Growth Opportunities for WeP

The market for UPS &Communication is estimated to grow at a CAGR of over 20% for the

next 2 years. WeP has entered these markets in the last 2 years and our market shares have

increased in each of these businesses. With a wide channel reach and presence across the

country, WeP is well poised to increase its share in these markets. With increasing usage of

IT, hardware protection against power conditions and data protection in the event of power

outage has become critical. Use of power conditioning and protection devices (UPSs) is

increasing.

UPS growth in the smaller towns is expected to be particularly high. With a widely spread

channel WeP is well positioned to address this surge in demand. Cost advantage is critical for

scaling up the volumes. With local manufacturing and a dedicated R&D team WeP is well

positioned to achieve this. Being the no 2 player in the 500VA to 1000VA segment and with

local development providing the flexibility on product offerings, WeP is well poised to

capture the growth opportunity in the UPS business.

There are 1.56 Million establishments in India, and of this 57% establishments own PCs.

Only 21% of them are networked. This provides a huge opportunity for networking products.

WeP addressed market for Networking products is Rs 4,750 Million and it is expected to

grow at a CAGR of 25%.With the acquisition of Select Technologies, WeP now has technical

expertise and domain knowledge for growing this business in the immediate future.


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3.5.1 Business Printing Outsourcing Services

Digital printing volumes in India are estimated at Rs 25,000 million for 2002-03. Digital

printing worldwide is 4% of the overall print volume while in India it is just 2%. The digital

printing volume will continue to grow in India with IT usage increasing. Government Project

like Bhoomi, E-Seva, computerisation of ration cards etc., IT education in Schools, IT

dependence increasing in SME and SOHO Segments are contributing to the growth in digital

printing.

WeP addresses this growing demand in digital printing. Through “WeP Print & Save”

services - the complete Business Printing Outsourcing service-we plan to address 35% of this

digital printing market. Exports WeP is the 4th largest DMP manufacturer in the world with

over 1 million installations of its printers in 16 years of operation. All the leading models are

CE certified and the printers are exported to 15 countries. With some global DMP players

exiting the business coupled with the cost advantages accruing from WeP's volumes, the

export market offers a large opportunity.

WeP is addressing the export market through international OEM customers for the Europe

market. For countries in Asia, the company is establishing its presence through distributors.

On the technology front, the printers now support printing in several foreign languages

including major languages of Europe and China, Russia, Thai, Turkish and Bangla.

3.5.2 Printing Solutions

Impact printing is moving from horizontal printing to specific application printing. Impact

printers are used presently for specific customer needs like invoicing, ticketing, messaging

etc. This shift provides an opportunity for providing tailor-made solutions for customers.

WeP already has the experience of developing specific customised printers for Air Ticket

printing, Railway Ticket printing, customised printers for DC power supply etc.

With a strong R&D team on printers, WeP is well positioned to grow in this area. Threats for

WeP and how the company plans to address themStagnation of Impact Printers market

Impact printer market is expected to remain stagnant in the coming years. While impact

printers market is stagnant in India, WeP will focus on providing customised solutions for

customers. WeP has been successful in customising printers for various applications in the


25


past and will use this expertise in future. WeP has also set-up a dedicated exports team for

providing the geographical expansion in DMP business. Exports now contribute 15% of the

DMP business within 2 years of commencing export operations.

3.6 WeP PROMISE

We promise to be consistently proactive and perform with integrity and speed at the cutting

edge of technology and innovation to deliver the consumer’s tech fantasy.

3.7 WeP VISION

Our Vision is to be India’s most valuable Tech Fantasy Products, solutions and service

enterprise.

3.8 WeP VALUES

CONSUMER PROACTIVE

Like a pilot braving the turbulence of the weather, we proactively follow social and

technological trends to innovate consumer needs and desires.

CUTTING EDGE SPEED

With the precision energy and speed of a laser beam we innovate at the cutting edge

technology to surprise consumers with friendly products and services.

CONSISTENCY WITH INTEGRITY

As a water lily blossoms like clockwork in any environment, we leverage the strengths of our

varied business into a converging focus through consistency with integrity, upholding human

values.

YOUR TECH FANTASY

Like the fantasy of enjoying a strawberry, we deliver tech fantasy into the consumer’s mind,

to make our business robust, sustainable and socially responsible.


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3.9 QUALITY POLICY

WEP Peripherals Ltd. is committed to deliver tech fantasy products & services that exceed

customer requirements and achieve customer satisfaction and excellence in quality. This will

be achieved by

Being proactive in understanding consumer needs and desires.

Perform consistently by striving to “Do Everything Right the First Time”.

Leveraging on cutting edge technology and innovation for speedy delivery of

consumer’s tech fantasy.

Measuring and continually improving the critical business process.

Providing a positive environment for its people to achieve Business

Excellence through IDEA(I Drive Excellence Always)

Constantly upgrading & implementing system standards in line with

international best practice.

3.10 ENVIRONMENTAL POLICY

WEP Peripherals Ltd. an IT essentials tech fantasy product and service provider, is

committed to sustainable practice to minimize adverse environmental impact of its business

while continually strengthening our environmental performance we shall:

Comply with all applicable regulatory and other environmental requirements.

Produce energy efficient products incorporating safety aspects by continually

upgrading the operating standards and technology.

Converse energy and natural resource through optimum utilization.

Minimize waste generation, by maximizing reuse and recycling, and develop

proactive and innovative disposal practices.

Create awareness on safety and environmental responsibility amongst our

stakeholders.


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3.11 Products

1) Dot Matrix Printers:-

a) 9 Pin 80 COL 1. WeP CSX450

2. WeP LX 540 DX

3. WeP 800 DX-Bounti Black

b) 9 Pin 136 COL 1. WeP EX2050+DX

2. WeP EX330+DX

3. WeP EX DTX 3370

c) 24 Pin 80 COL 1. WeP LQ 540 DX

2. WeP DSI 810

d) 24 Pin 136 COL 1. WeP LQ 1050+DX Super

2. WeP LQ DTI 330

3. WeP HQ1070+DX

2) High Speed Dot Matrix

Printer 1. WeP HQ 1600, 2000, 2100

3) Line Matrix Printer 1. WeP Printronix P7C 500N, 1000N, 1500N

4) Passbook Printer 1. WeP HPR 4915 XE


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5) UPS

a) Home UPS: - 1. WeP 650VA, 850 VA, 1.8 KVA

b) General UPS: - 1. WeP TOP.UPS -Black & Red, Yellow & Red

2. WeP 650VA Long

3. WeP UPS 690VA Eco, Super

4. WeP 1KVA Special

5. WeP 600VA Eco, Super, Special

c) Online: - 1.WeP WOLT 1, 2, 3 KVA Online UPS-w/o Battery.

2. WEP 10,15,20,30 KVA 3P-1P OL7UPS-w/o Battery.

6) Retail POS Printer:-

a) Impact: - 1.DX-400

2. DR640

3. WeP DR 400 IIR -Auto Paper Receiver

4. WeP DR 400

b) Thermal: - 1.Posiflex XP2010HB

2. TH320M

3. WeP TH 400 (Parallel, Serial + USB Ethernet)

4. WeP TH 240-2inch thermal w/o cutter

5. TH350 Parallel Interface


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7) Retail POS Systems: - 1.Posiflex XP2008HB, XP2010HB, XP2012HB

2. Posiflex PB 4600

3. Wincor Beetle Mini

4. Posiflex KS6215N plus

8) Retail Billing Printer: - 1. WeP BP 20T, 50T, 85T with Battery

2. BP 1000AF, 5000

3. Bounti BP 20, 40+, 50+, 85

4. WeP BP Milko

9) Laser Printers:-

a) Laser Printers: - 1. WeP Laser 1600+, 9530 DN

2. Kyocera 1320DN Mono laser

3. Kyocera FS-C5150DN, C5250 Colour Laser

4. WeP Laser FS-2020DN printer

5. Kyocera FS-1110, FS 6970DN Laser Printer

b) Multifunction: - 1. WeP Laser FS-1024MFP Multifunction

2. Kyocera FS-1124MFP, 3140 MFP Multifunction

3. Kyocera FS-C2126MFP Multifunctional


30

Gap Analysis of Supply Chain (Inbound)10). Scanners:-

a) Intelligent or Portable Scanner: 1. Avision Intelli Scan AV IS 1000

2. Avision Mobile Scanner AV 36

b) Flatbed Scanner: - 1.Avision A3 Flatbed series-FB6080E

2. WeP FB 1200 Flatbed Scanner

c) Document Scanner: - 1. Avision Sheet Fed Scanner AV122C2.

2. Avision AV100 ADF Series-AV 186+

3. WeP Avision AV 8050U, AV610C2

11) ID Card Printer: - 1. Enduro

2. Pronto

3. Rio Pro

4. Prima 4

3.12 CSR Activities

CSR is one of the foundation values of WeP. 2% of profit after tax per annum is used for

CSR activities that include eWaste management programs, water conservation programs,

aforestation initiatives, promotion of education to name a few. ‘WeP Sparsh’, an employee

driven volunteer program, has been building sustainable communities and providing support

to initiatives that help underprivileged children. WeP has also dedicated itself to serve the

community at large during natural calamities like the earthquake in Gujarat and the Tsunami

that devastated the east coast.


31


4.0 Objective and Research Methodology

Study the gap or delay in the supply chain activities of WeP.

4.1Sub Objectives

To identify the current functioning of the company.

To identify and determine the factors affecting the production of the company.

To determine certain key areas where there is scope for improvement.

4.2 Time Frame Activities

Total project period is divided into four parts. Each part consists of two weeks. Description of

each fortnight is given below.

1. First Fortnight Purchase, Stores, IQC, Quality

(Induction, Procedures, Findings)


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Gap Analysis of Supply Chain (Inbound)2. Second Fortnight Logistics, Trading Goods, Production

(Procedures, Sub Contracting, Findings)

3. Third Fortnight Finance, Production, ISO

(Analysis of the findings and suggestions)

4. Fourth Fortnight Check for the ISO Reports


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Gap Analysis of Supply Chain (Inbound) (Analysis of the findings and conclusion)

4.3Data Collection & Methodology

All the data used for analysis is collected in the month of May by using SYMIX an ERP

used by the company . Following information is collected from various departments for

analysis.

Accounts & Purchase Departments

Vendor Payments for the Month of April.

Vendor Payments paid in the Month of April.

The data collected is evaluated with parameter of Voucher Number, Credit Period, Credit

Due Date, Credit Paid Date and the Amount paid using VLOOKUP excel function.

Stores & Internal Quality Control Departments

MRR prepared for the Month of April.

MRR cleared by IQC for the Month of April.

The data collected is evaluated with Material Receipt Number, Material Receipt Date and

Internal Quality cleared Date using VLOOKUP excel Function.

Production Department


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Gap Analysis of Supply Chain (Inbound)The data collected is evaluated as per the production plan and actual plan achieved by the

department and the reasons for the shortage of plan were discussed with the various

departments.

MRP, Production Plan and Achieved Plan for the month of April.

ISO 9001 reports prescribed and reports of the departments maintained.

5S audit of the Departments.

All reporting records of the following departments is collected from portal of the company

and checked according to the existing records of the departments.

Material Planning.

Stores.

IQC.

Production Planning.

Production Process.

Dispatch Process.

Plant Maintenance.

The following departments 5S Audit is performed in the presence of the WeP Staff.

Internal Quality Control

Printer Line Integration


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5.0 Literature Review:

All the day to day activities of the department are studied in the perspective of the supply

chain. Each department activities are listed below.

5.1 Planning

Release of Production plan of all units as per Operation meeting after receipt of

communication recd. from Logistic.

Update CSL forecast and MRP forecast and run the programs to generate shortages.

Release Term wise/Month wise Production Plan for all units.

Prioritise inspection of materials in order of production / dispatch requirement

whenever required.

Based on Month/Term wise plan Production plan released by Materials Planning,

(MPC) release day wise production plan & Kit loading plan for the month.

Highlight all shortages if any before launching the job and follow-up with concerned

buyer/MPC to full fill the shortages.

Raise Job order for Sub contractor loading & hand over BOMS to holding stores for

kitting.

Monitor launched jobs for timely closer.

Swapping of components from one job to other if necessary for production depending

on criticality.

Release of monthly Kit loading as per plan MIS (KLAP).

Review of shortages and firming up Integration plan every day.


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5.2 Production

Assemble& test print heads as per work instructions.

Raise line purge request (LPR) for defective items.

Follow Quality System Procedures.

Maintain cleanliness of work area.

Maintain and calibrate tools and equipment’s as per the schedule.

Carry out repair of defective print heads.

Highlight quality problems / shortages.

Reduce process problems and improve quality.

Get trained in the identified areas.

Generate monthly reports.

Carry out Testing activity for field returned print heads

Update ISO procedures on line

Carry out analysis / test for improvement of product / part quality

Carry out Machine maintenance in time & prepare the reports.

Interact with MPC and purchase team for any shortages / replacements.


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Figure 5.1 Flow Chart Production Planning Process


Termwise/

Monthwise plan

Release of kit loading plan

Spare indent/forecast from WePcare

Review of Shortages with Buyers

Release Job order in Symix Receipt of

materials at stores- Prioritise

Loading sub assy to sub-contractor for prod& spares

reqmt /prioritize as per reqmt.

Plan for Production loading.

Release of BOMs and hand over to Stores for Kitting

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5.3 Internal Quality Control

Incoming materials are offered for inspection to IQC along with material receipt

report [MRR]

Drawings/ Inspection Plan/ Sample Evaluation Report (Engineering) will be referred

for inspection parameters. Based on these Inspection parameters, vendor will submit

Inspection Report along with the lots.

Inspection of components at WeP will be carried out as per the inspection category

viz., "Inspection" "Limited Inspection" and "No Inspection" as mentioned in MRR

[Materials receipt report]

Inspection of components under "Inspection category will be carried out as per

Inspection Plan / Drawings / Engg sample Evaluation Report. IQC will be made pilot

lot SER for all components, based on the sample SER made by Engg as per Procedure

- O2.CED.04 for new / alternate components. History Card will be maintained for

Mech. / Electronics Inspection Items received after the pilot lot. Catalog components

will be cleared as per symix approved vendor list.

In case of New product developments, the components will go through’ a cycle of

Sample Evaluation Report (pilot lot) and Functional Feedback (FFB) will be taken for

all components required for production during the beta assembly stage (for the

components where FFB is applicable). This will be for a specified quantity

considering MOQ and further clearance for all components will be given only after

FFB is done.

Sample Evaluation of alternate manufacturer & pilot lot will also be done for other

reasons like tool modification, vendor change etc. In such cases, FFB will be taken for

individual parts along with SER as a part of Sample evaluation procedure wherever

FFB is applicable.

For electronic items single sampling plan according to IS-10673 is adopted. For

mechanical items single sampling plan according to IS-2500 part - I is adopted.

General inspection Level-II will be followed for sample size selection. The same is

mentioned as a standard part in all Drawings. Unless otherwise mentioned, AQL 0.65

shall apply.


39


A modified sample size or 100% inspection is adopted if specified in the Master IIR

or if found necessary on review of Quality of supply.

Items on inspection are clearly identified as accepted & rejected.

For Mechanical as well as electronic items Incoming Inspection report (IIR) is

prepared in System (Symix) only in case of rejection.

In case of rejection of items on sample inspection. The discrepancies will be discussed

with Purchase Dept. & any of the following action will be taken.

1. Rework/ Segregation

2. Acceptance on Deviation

3. Rejection.

In case of reworked / segregation, the material shall be re-inspected against same

MRR or Re-offered MRR.

In case of rejection IIR will be circulated to Purchase & Vendor (Symix email). It will

be specified in the IIR whether the Corrective action is required or not based on the

reason and criticality of the problem, or in case where the item is considered to be

under development stage or in case it is undergoing some changes based on our

requirement.

Corrective Action Report format after filling the required details will be handed over

to Buyer for getting CA’s [Corrective action] from Vendor. Whenever partial

quantities in a MRR are cleared a MIR is generated.

On completion of inspection MRR/MIR is duly completed & the material returned to

stores with MRR/MIR.

Components received from the Principals are self-certified. Stores inspect the material

for damages to packing Items are inspected in case of damages and as applicable.

Sub-assemblies like Mechanism, Tractor Unit, Sprocket Assembly, BD pulley

Assembly, RD Assembly, Paper Eject Unit, Carriage assembly does not require IQC

inspection. Hence will be under No Inspection.

Shelf life items to be identified& inwarded as per Stores.


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5.4 Stores

Materials are received from vendor along with Delivery Challan/Invoice,

MRR is prepared and offered to IQC for inspection.

Accepted materials are moved to holding stores and Rejected materials are moved to

rejected material area for further disposition.

Materials received without proper documentation are treated as disputed items and

reported to purchase department. MRR will be prepared after resolving the dispute.

Accepted materials are received from receiving stores along with MRR/Material

Transaction by Job. Quantity of material is verified before storage.

Materials are issued to production/sub-contractor against valid stores requisitions.

Materials received through SRN/STA are inspected by IQC.

Stock purged items are moved on receipt of valid SPN out of holding stores and

disposed as per the decision in the SPN.

Materials received from other divisions through STN will be moved to holding stores

only after IQC's inspection.

Stores will refill 2 bin components when Bin gets emptied in 2 Bin area against pre-

printed SRQ available at holding stores.

5.5 Purchase

5.5.1 Selection of Vendor

Material required for Production is procured from approved vendors (AVL) only.

Consumables and capital items, R & D new development requirements are procured

from suppliers recommended by the user department, based on authorized purchase

requisitions or capital asset requisitions.(CAR) OR Special approvals

Approval of the Factory Head/ Purchase Head will be taken for procurement of

production items from unapproved vendors as and when essential. Such vendors may

be assessed as per Vendor Assessment Procedure before subsequent orders are

released.


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5.5.2 Preparation and approval of Purchase Orders

CSL shortage list is basis for releasing purchase order Sparesrequirements as per

plan/forecast given through Symix will be considered for ordering. During ordering,

various factors like Minimum order qty, Batch qty, and buffer to take care of Change

in plan will also be considered. New Development item will be procured based on the

List of parts (LOP) released by PED/R&D dept. (for imports) Tooled up parts will be

new development will be handled by VD.

Purchase orders for items in the Bill of Material should contain the WeP Peripherals

part number and description of the item and in case of components manufactured to

our requirement, the revision number of the drawing. Manufacturers’ part number

should be mentioned as applicable on catalogued items. In case of branded items,

approved brands should be referred in the purchase order. If the Purchase Orders are

released on the original manufacturer, the brand name need not be mentioned in the

PO.

The requirements of quality and verification methods are communicated through any

one or more of the following documents. The purchase order will make references as

appropriate. These may be sent along with the purchase order or through a separate

communication.

1. Drawings with Inspection parameters.

2. Specification

3. Sample Evaluation Report (SER)

4. Manufacturer part no.

In case of revision of any of the documents supplied, the revised documents should be

sent to the vendor. The date of implementation of changes in item will be done after

discussing with vendor. For this, stockavailability at both supplier and WeP will be

considered in various stages. The vendor should also be advised to destroy the old

documents. Buyer will keep proof of letter for sending the revised drawing to

suppliers.

Prices are negotiated by the concerned purchase person and approved by the

Purchase Head. In case of change in price, a price change note is raised. Approval of

the head of Purchase Head or factory head is obtained.


42


Payment terms, delivery schedules and other instructions and standard terms and

conditions are printed on the Purchase order.

All Purchase orders are prepared by the Purchase Executives/ Assistants. Purchase

orders are verified and approved by Purchase Head.

Any change in price or other terms and conditions in the Purchase orders are done

through a Purchase order amendment. The procedure followed will be the same as for

Preparation of a PO. In case of urgency soft copy of PO/ amendment will be sent by

email.

Every month Material requirement to supplier will be given by PO delivery schedule.

5.6 5S

The most obvious benefit from items being organized in such a way (i.e. that they are always

readily available) is that of improved productivity. Production workers being diverted from

production to look for tools, gauges, production paperwork, fasteners, and so on is the most

frustrating form of lost time in any plant. A key aspect of Hirano’s organisation approach is

that the often-needed items are stored in the most accessible location and correct adoption of

the standardisation approach means that they are returned to the correct location after use.

Another element of Hirano’s improved housekeeping is improved plant maintenance –

workers ‘owning’ a piece of plant, responsible for keeping it clean and tidy, can take

Ownership for highlighting potential problems before they have an impact on performance.

The next aim is Quality. The degree of impact of dirt in a manufacturing environment,

obviously, varies with the nature of the product and its process but there are few, if any, areas

where dirt is welcome. Even if it is only in the form of soiled documentation accompanying

the goods to the customer this can send a very negative message about the company and its

culture. In other cases dirt can have a serious impact on product performance – either directly

or indirectly, perhaps through compromising the integrity of test processes. Of course, 5S

does more than address dirt; an inappropriate layout can result, for example, in product

damaged through excessive movement or through the use of tooling other than that defined as

the standard. Standardisation is a theme of Hirano’s approach, overlapping to a considerable

extent with, for example, that of Ohno. A Standard Operating Procedure for tool certification

is much easier to achieve if the tool to be certified is always in a clearly-marked location.


43


Another goal is improved Health & Safety. Clear pathways between workbenches and

storage racks can minimise accidents, as can properly-swept floors. As with Quality, a well-

organised, clean and tidy facility lends itself more readily to standard practice. Hirano also

described how an environment in which the workforce has pride in their workplace can

contribute to a considerable extent in a number of ways including customer service.

Improving the layout of the facility merges with the concept of visual management; if

workers can see the status of plant and of work in the facility, thus removing the need for

complex tracking and communication systems, then benefits will accrue. 5S can also be a

valuable sales tool when potential customers visit; a well-organised, clean and tidy facility

sends a message of a professional and well-organised supplier.

5.2 5S Diagram

5.7 ISO

To compete in today’s competitive business environment and global economy, organisations

focus on the satisfaction of customers’ needs as a means of obtaining advantage, and survival.

A major strategic change is that many organisations strive to achieve customer satisfaction

through an emphasis on quality products and services.

Quality has emerged as a strategic competitive tool for organisational success. Organisations

cannot afford to ignore the strategic implications of quality for their competitive position.


44


As a result, they have pursued a number of quality philosophies and initiatives, such as total

quality management (TQM), just-in-time (JIT), The Sheng Prize, The Deming Prize and

ISO9000. The most popular quality philosophies are based on ISO 9000 and TQM, although

interest in TQM appears to be static, while ISO 9000 certifications have grown rapidly in

recent years.

The International Organization for Standardization widely known as ISO is an international-

setting body composed of representatives from various national standards organizations. It

was founded on 23 February 1947; the organization promulgates worldwide proprietary

industrial and commercial standards. It has its headquarters in Geneva, Switzerland.

The organization which today is known as ISO began in 1926 as the International Federation

of the National Standardizing Associations (ISA). This organization focused heavily on

mechanical engineering. It was disbanded in 1942 during the Second World War but was

reorganized under the current name, ISO, in 1946. ISO is a voluntary organization whose

members are recognized standard authorities, each one representing one country. The bulk of

the work of ISO is done by the 2700 technical committees, subcommittees and working

groups. Each committee and subcommittee is headed by a Secretariat from one of the

member organizations.

ISO 9000

The ISO 9000 standards were introduced in 1987 by the International Organisation for

Standardisation, based in Geneva, Switzerland. The ISO 9000 standards are based on the

concept that certain minimum characteristics of a quality management system could be

usefully standardised, giving mutual benefit to suppliers and customers, and focus on process

rather than product quality. ISO 9000 is a management control procedure which involves a

business in documenting the processes of design, production and distribution to ensure that

the quality of its products and services meets the needs of customers.

ISO 9000 is a family of standards and guidelines on how to develop a quality management

system to manage the processes that affect products or services. The family is made up of

five separate standards or guidelines: ISO 9000; ISO 9001; ISO 9002; ISO 9003 and ISO

9004. ISO 9001, 9002 and 9003 are conformance standards for quality assurance systems and


45


relate to supplier-customer relationships. ISO 9000 and 9004 are guidelines and relate to the

development of quality systems within the company.

ISO 9001: applies to facilities that design, develop, produce, install and

service their own products.

ISO 9002: applies to firms that provide goods or services consistent with the

specification furnished by the customer.

ISO 9003: applies to final inspection and test procedures only.

ISO 9004: develop and implement a continuous quality improvement program

ISO 9000 is more to do with achieving conformance to pre-determine standards than it is to

do with instilling the concept of excellence associated with a customer responsive

management or a customer value delivery orientation throughout an organisation.


46


6.0 Findings

Production

For the Month of April the Planned Quantity and the Achieved Quantity with respect to the

Print Heads, Printers and UPS is shown below.

Print Head ProductionPlanned Achieved Difference

5800 5230 699

AchievedDifference

Printer Line Integration& UPSPlanned Achieved Difference

2300 675 1625

AchievedDifference

Print Head ( 87.8% plan is achieved)

Printer Integration & UPS ( 29% plan is achieved)


47

Gap Analysis of Supply Chain (Inbound)The main issues regarding the shortage of the production are given below as the per the

department.

Vendor DevelopmentPurchas

e1858 330

Vendor De-velopmentPurschase

Accounts

For the month of April the Vendor Payments to be paid and Vendor Payments paid are

analysed to know the correlation between the payments and relation with suppliers.

Amount to be paid 8432218Amount paid as on 16-04-12 5638121 Balance Amount to be paid 2794096

Amount paid Balance Amount

Breakup of the payments to vendors after credit period is shown below

Period

No of Companies

Avgas (Rs)Amount

7 66 89255114 4 56483.230 57 199842060 17 156910


48


Incoming Quality Control

Material which is entered into the company checked for the quantity as per the invoice and

then material is sent to the Internal Quality Control of Mechanical and Electrical Department

for Inspection. Based upon the ISO procedure samples are taken for inspection procedure.

Based on the information collected the time taken to clear the material from the respective

departments is having an average delay of 3.2 days. The table below show the time taken for

clearing the material once material arrived in the inspection department

No of Days

Cleared MRR's

1 1592 467 114

14 3021 928 1

5S audit for the department of the Quality Control (Electronics) is 8.57/20 and Printer Line

Integration is 10.13/20. The scoring is done in the presence of the WeP engineers with the

help 5S audit Format Company is having.

ISOreporting records maintained in the company are verified with standard specified for the

following departments.

Material Planning ( Production &Sales Plan records are changed as per the current

requirements)

Stores(Perpetual Inventory Verification and 2 BIN SRQ are changed as per the

current requirements)

IQC ( Inspection Mechanical are changed )

Production Planning ( Sub Contractor and Daily Production are not followed)

Production Process

ChangedNot

RequiredNot

Maintained Same12 1 6 26

Dispatch Process (All records are maintained)

Plant Maintenance (Vacuum Pump record is to be removed )


49


7.0 Suggestions

Production

In order avoid Setup Time for changing one model to other model the deviations

should be low in day.

Welding Machine should be given for Annul Maintenance , training should be to

workers how to handle the machine in case of problems

A logbook should be kept for all the maintenance activities and analysis of how the

problems are solved should be written.

Currently the company is working at 4.6 Sigma because every year the workers are

changing so this is main reason. Training should be given for new models introduced.

Rework Analysis should be done on the material worked.

Stores

Ninety percent of the material used in the print head production are mechanical items

and during the process of the inspection materials that are taken as per the sample

should undergo the functional test to avoid the delay in the process.

Manpower in the stores is less to perform the day to day activities. Activities like

improper location storage and issuing of material is getting delayed because of less

man power.

Materials should be stored as per the layout. It helps to the inspector / quality

checking person or while moving material from receiving to holding stores, the proper

lot / proper MRR can easily found, so can avoid missing, mix-up and delay in process.

MRR should be prepared only after IQC has given the clearance. Stores person should

check the material as per the invoice and should forward the invoice to the IQC

mentioning the shortage of the items and IQC should prepare the MRR based on

acceptance or rejection because this reduce the delay in the process of making the

payments.


50


Internal Quality Control

Materials are to be cleared on the basis of FIFO but they are cleared on the basis of

priority of the material required as per production plan. As result there is average

delay of 3.5 days from MRR preparation date.

Cleanliness is to be maintained in the inspection area and department. Areas of testing

equipment and materials that are to be cleared can be easily identified

A minimum requirement P-Chart, X bar Chart and Sign boards are not displayed in

the inspection rooms.

Displaying the information helps to know the status of the defects over a period of

time. It motivates employees towards focusing the area.

MRR should be prepared after IQC given the clearance for the accepted material. This

will eliminate the involvement of the stores and in making MRR and sense of urgency

and importance will be created on IQC department in clearing the material on time.

Finance

Payments to vendor should be paid in time for smooth flow of material required but

payments for the vendor are getting delayed even after the credit period according to

PO terms is completed.

As result of this credibility of the company is lost and vendor’s will not able to supply

the raw material in time for smooth flow of material for

production and if we lost the existing vendors and it takes time to search for new

vendors.

Company should try to reduce delay by 10 days

Ideal funds in the company should invest the Money Market which will compensate

the rise in dollar price.


51


8.0 Conclusion

Analysis that is provided can be implemented for a month and the results can cross verified

for the continual improvement in the chain. Apart from the regular activities many

departments are in proactive state in performing the operations like.Electrical IQC is helping

the R&D for designing the in-house SMPS.Manpower in the production process is shifted to

other jobs like RMF whenever there is line stoppage. Yoke Assembly process in-house

production will increase the efficiency in meeting the production plan as per the schedule.


52


9.0 References

WeP Company, About Us, Products, Services, Policy, Accessed 2012, 12th April 2012,

http://www.wepindia.com

WeP Company, ISO Clauses, Accessed 2012, 10th May 2012

http:// www.wepworld.com

IT Industry, Information Technology Industry (2010), Economy Watch, Accessed 2012, 11th

May 2012,

http://www.economywatch.com/business-and-economy/information-technology-

industry.html

http://www.tcs.com/investors/Pages/default.aspx

Hickey, K A, Five Mobility Trends IT Can’t Afford to Ignore (2012), Smarter Connections,

Accessed 2012,

15th May 2012, http://www3.ipass.com/blog/upcoming-webinar-five-mobility-trends-

it-cant-afford-to-ignore/


http://www3.ipass.com/blog/upcoming-webinar-five-mobility-trends-it-cant-afford-to-ignore/

http://www3.ipass.com/blog/upcoming-webinar-five-mobility-trends-it-cant-afford-to-ignore/

http://www.tcs.com/investors/Pages/default.aspx

http://www.economywatch.com/business-and-economy/information-technology-industry.html

http://www.economywatch.com/business-and-economy/information-technology-industry.html

http://www.wepworld.com/

http://www.wepindia.com/

53


10.0 ANNEXURE

10.1 5S Checklist

5S CHECK

LIST

A SEIRI THROW AWAY UN-

NECESSARY ITEMS FROM

SPACE

SL NO PARAMETER SCORE REMA

RKS

0 4 8 1

2

1

6

2

0

1 Un used paper is

removed from trays

2 Un used files are

removed from filing

cabinets

3 Rejected material is

moved to Quarantine

4 Unclaimed printed

documents are

removed from trays

5 Excess Mechanism

Boxes removed daily

6 Unused, old

catalogues, bound


54


books removed

periodically

SUM1 A

V

G

1

B SEITON KEEP

THINGS

IN

ORDER


RKS

0 4 8 1

2

1

6

2

0

1 Tools and Equipment

neatly stored with

identification

2 Filing is in order with

clear label

3 Traceability is good

4 Table Drawers have

Key nuber

5 Tables have

Identification of User

6 LPR is in the

allocated space

7 Computer Desktop is

uncluttered and clean

8 Production Trolleys


55


are stored neatly

9 Telephone Index is

available in work

Table

10 Telephone has User

name and Extension

number

11 All employee related

formats/leave cards

are easily accessible

12 Rework area :

Printers are

identified and kept in

order

SUM2 A

V

G

2

C SIESO MAINTAIN THE SPACE

CLEAN AND DUST FREE


RKS

0 4 8 1

2

1

6

2

0

1 Floor is dust free and

polished

2 Flower pot is clean

and watered

3 Table, Filing cabinets


56


are clean and neat

4 Yellow line is clearly

visible

5 Windows are dust

free and in good

shape

6 Chairs are in good

shape and only in

required quantity

7 Cables are routed

properly, dust free

and tidy

8 Toilets are clean, dry

and hygiene

SUM3 A

V

G

3

5S CHECK

LIST

D SEIKETSU PROPER SYSTEMS ARE

PRESENT



57


RKS

0 4 8 1

2

1

6

2

0

1 Water drum has

updated checklist of

actions

2 Fire extinguishers are

maintained with

identification

3 LPR is removed

within 48 hours

4 Footwear is good

and left outside the

room

5 Production Chart is

updated Every day

6 Production Plan is

displayed

7 Antistatic Mats are in

good shape

8 First Aid BOXES are

available and

maintained

9 Safety Posters and

displays are available

10 Field returned Items

disposed periodically

11 Obsolete items are

removed from Two


58


bins

12 Reason for Red light

is updated

13 Running Model

name is displayed

14 Visual controls are in

good shape

SUM4 A

V

G

4

E SHITSUKE PEOPLE ARE TRAINED

AND DISCIPLINED


RKS

0 4 8 1

2

1

6

2

0

1 All in the SPACE are

trained in 5S

fundamentals

2 Awareness of

processes within the

SPACE exists

3 Latest Production

charts are displayed

4 Attendance Board is

updated; Photo

available

5 People are aware of


59


SAFETY norms

6 Stack height of

Finished Goods is

maintained

7 No over coat, Jacket

is present on Chairs

8 Attitude is good,

smiling faces around

9 Positive in taking

feedback about the

SPACE

10 First Aid training

given to identified

personnel

11 Fire extinguisher

usage training given

to all relevant people

12 Security personnel

are fully aware of the

Generator operation

13 Printers stripped

open are re-

assembled and kept

in order

SUM5 A

V

G

5

OVERAL SCORE


60


(AVG1+AVG2+A

VG3+AVG4+AVG

5) / 5


Documents

Summer Project Draft