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An analysis of the Quality of Delivery

Commitment in finished products with special

Reference to Lapp India, Bangalore

Lapp India private Limited

( August 7th to September 20th )

Date: 2nd February 2011

B. Vetrivel

(09p35f1213)

Guided by,

Ms. Krishnan Hemamala

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Lapp India Private Limited

Lapp groups was formed in 1957 in Germany by OskarLapp.

Lapp India Pvt

Ltd deals with the production of cables and

connectors.

Major competitors are Finolex, Pura Cables, Azjazeera Cables.

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Introduction to the study

Lapp India, Bangalore has a coordinated and effective mode of supply

chain management which controls the entire process from procurement of

raw material to dispatch of finished goods to the end users.

But still finds a serious difficulty in dispatching its finished products to the

end users even after the material is in hand. And hence to minimize this gap

to lessen its inventory cost and to increase profitability.

Month of study is September - October

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Objectives

Lapp India, Bangalore found dispatching the materials at the

committed date a difficult feat to achieve. In order to analyse

the sources for delay the objectives of this study were defined as

follows:

To analyse the gap in the actual material delivery and committed

dates.

To identify reasons attributable to this delay

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Scope of the study

Lapp officials refused to disclose the entire resources and hence

limited resources are available for the study and Inadequate time.

Very narrow study as it is limited only to the analysis ofTime gap

between Material Available Date and Delivery Date.

Sample Size is also limited because officials are not able to disclose

entire information (busy schedule) due to time limits.

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Research Methodology Research type

Descriptive and Diagnostic study- There occurs consistent delay in delivering the

materials to end consumers. The problem in hand is described as delay between

MAD and DEV date and data is given. The reasons are found based upon the data.

Sampling plan

Data type Primary data

Sample size 473 sale orders

Data collection sources Observation and Interview method.

Sampling mode Probability Random sampling

Data analysis tools

Test ofSignificance->Z test to test the hypothesis of causal relationships between

the variable -> material available date and committed date.

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Findings1. Payment block - delay in the payment from the customer

2. Customer block - customer not ready to get the material

3. One lot order - requires complete delivery

4. Road permit - no proper license and documents

5. Letter of credit

6. Lack of space in warehouse - because of consistency in delay in dispatching

7. Unavailability of truck when needed

8. Lack of communication with the dealers

and suppliers

And other reasons are considered to be very minor like Manual faults, Strikes of

Truck owners, Festival Holidays etc.. The probability of occurrence of such cases is

very minimal.

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Conclusion

The major reason for the gap lies in payment block

because of which most of the stocks were held up in the

warehouse.

Specifically, the reason for the holdup is payment, one

lot order ie., waiting for the entire materials to get

dispatched at the same time. The major problem lies withthe customer and therefore the profit or amount is locked in

the inventory in the form finished goods.

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Suggestions

Lapp India Pvt ltd may take the customer perspective

by having a regular follow-up with the customers about

their payments and update them on the availability of finished products

Lapp India can make sure to receive the letter of credit

from the customers

Lapp India Pvt ltd can take effective measures to reducethe risks in one lot order

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Learning during Internship

As a supply chain manager , the major to be taken

parameters to minimize the delay

Discipline and coordination to handle pressures

How to behave and communicate with officials

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Thank you