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A PROJECT REPORT ON
AN EMPIRICAL STUDY ON SUPPLY CHAIN& INVENTORY MANAGEMENT IN THE
AUTO COMPONENT INDUSTRY
A CASE STUDY OF
Submitted to Sikkim Manipal Univ!"i#$in thepartial fulfillment of the requirement for the awardof the degree of
Ma"#! % '("in"" A)mini"#!a#i%n
SUBMITTED BY
LALIT *UMAR
M'A +T,M- IV Sm.
R%ll N%. /01112223
PLACE 4 AGRA +UTTAR PRADESH-CENTRE CODE 5 61768
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AC*NO9LEDGEMENTAC*NO9LEDGEMENT
While submitting the project report prepared by me on the topic AN
EMPIRICAL STUDY ON SUPPLY CHAIN & INVENTORY MANAGEMENT IN
THE AUTO COMPONENT INDUSTRY IN M/s. Gkn Driveline In!i"#
L$!.%"ri!"'"!. I here acknowledge my humble gratitude & loyal thanks to Mr.
Pr"veen ver("(HOD-upply chain! who ga"e me an opportunity to work in
M/s. Gkn Driveline In!i"# L$!.
I am also grate#ul to Dr$ anjana %ittal under whom I ha"e done my project$
ast but not the least' I am thank#ul to all my #riends who has gi"en me their
"aluable suggestions in preparing the report$
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CERTIFICATE
his is to certi#y that %r$ L"li$ )*("r% R+ll N+. ,-0) a student o# ikkim
%anipal *ni"ersity has completed project work on AN EMPIRICAL STUDY
ON SUPPLY CHAIN & INVENTORY MANAGEMENT IN THE AUTO
COMPONENT INDUSTRY A CASE STUDY O M/s. G)N DRIVELINE
INDIA# LTD.% ARIDA1ADunder my guidance and super"ision during this
year$ +o part o# this work has been submitted #or any degree$
His work and output has been #ound to be satis#actory$
ignature o# ,uide
+ame o# .roject ,uide/ Dr$ anjana %ittal
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DECLARATION
his project report on AN EMPIRICAL STUDY ON SUPPLY CHAIN &
INVENTORY MANAGEMENT IN THE AUTO COMPONENT
INDUSTRY A CASE STUDY OF M:". G*N DRIVELINE +INDIA-
LTD.; FARIDA'AD is submitted by me #or the partial #ul#illment o# the
course to %$0$1$ (2%! I3 em$ #rom Sikki( M"ni2"l Universi$3% A4r"$
his is an original work done by me e4pected the guidance recei"ed which has
been properly acknowledge in the report$
his is not the copy o# any other report or any part o# it hasn5t been submitted
#or the award o# any degree or diploma$
Date /
.lace /
(ignature o# the student!
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CONTENTS
C+n$en$s P"4e
N+.
C5"2$er67 INTRODUCTION 868
6$6 0ackground 7-68
6$9 Objecti"e o# he tudy 6:-6:
C5"2$er697 REVIE: O LITERATURE 9;69
9$6 upply ;hain Decision 96-99
9$9 +eed #or ;% 99-9 ;H1I+ %1+1,?%?+ 9 ;H1I+ %1+1,?%?+ .roblems 98-98
9$A ;% acti"ities 98-=B
9$< In#ormation echnology #or *..> ;H1I+ %1+1,?%?+ =B-=6
9$7 ,oals o# *..> ;H1I+ in#ormation technology =6-=7
9$8 In"entory %anagement =7-=7
C5"2$er 07 RESEARCH INDINGS 0
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this period$ his also led to a tough competiti"e scenario) which saw a lot o#
consolidation) technological collaborations and euity partnerships within the
industry and with leading global players abroad$
oday) many international and local automoti"e players are increasingly
sourcing components #rom Indian automoti"e component manu#acturers$ 1s
the demand #or manu#actured automoti"e components with the tag Emade in
IndiaE increases) the automoti"e companies ha"e to #urther enhance the uality
o# their products and operations as global players reuire uality components
at reasonable prices and at precise time durations$ his has made the
automoti"e component manu#acturers in India to be under se"ere pressure to
meet such onerous demands$ Hence) to meet such demands) today all the
major players in this industry are ha"ing one or the other logistics management
system$
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1AC)GROUND
COMPANY PROILE
,F+ Dri"eline is the largest business within the global engineering group) ,F+
plc$ ,F+ is a leading global supplier to the worldGs automoti"e) o## highway and
aerospace manu#acturers$ ,F+ pro"ides technology-based) highly engineered
products to "irtually all o# the worldGs major manu#acturers o# light "ehicles)
agricultural and construction euipment) aircra#t and aero engines$ 1lmost
@B)BBB people work in ,F+ companies and joint "entures in more than =B
countries$ .roducing systems and components #or small #ront wheel dri"e to themost sophisticated #our wheel dri"e "ehicles) ,F+ Dri"eline has the products to
achie"e the optimum dri"eline solution$ With these products comes technical
e4pertise and an understanding o# all aspects that a##ect "ehicle dynamics and
how these can be optimiCed #or weight and per#ormance impro"ement$
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G)N
Aer+s2"?eAer+s2"?e
Aer+s2"?e Servi?es
A4*s$":es$l"n!
A*$+(+$iveA*$+(+$ive
Driveline
P+!er Me$"ll*r43
A*$+ C+(2+nen$s
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G)N PLC
,F+ plc$ is an international group o# companies with a turno"er o# around
@$= billion pounds$ he group designs) de"elops and manu#actures
automoti"e components as well aerospace and de#ense products$ he
group pro"ides a range o# industrial ser"ices$ ,F+5s operations are located
in more than =B countries around the world and the group employs around
=
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G)N 6 A OCUSSED GLO1AL ENGINEERG)N 6 A OCUSSED GLO1AL ENGINEER
urno"er JK@$A billion
%arket leadership positions
ustainable growth
?4cellent customer relationships
trong technology base
,lobal reach L =
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G)N 6 GLO1AL CUSTOMERS
'M9'M9
Ca#!pilla!Ca#!pilla!Daiml!C
Fia#Fia#
F%!)F%!)
GM:OplGM:Opl
H%n)aH%n)a
MG R%v!MG R%v!
PSAPSA
Rna(l#:Ni""anRna(l#:Ni""an
T%$%#aT%$%#a
V9:A()i G!%(pV9:A()i G!%(p
Ma!(#i S(=(kiMa!(#i S(=(ki
D!ivlinD!ivlin
Ai!>("Ai!>("
'AE S$"#m"'AE S$"#m"
'%in?'%in?
'%m>a!)i!'%m>a!)i!
EADSEADS
GEGE
H%n$@llH%n$@ll
L%k
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G)N INDIA
Date o# ?stablishment / 6st 1ugust 6:89BB= in rupee terms;ompiled by I+,?
Un!ers$"n!in4 S*22l3 C5"in M"n"4e(en$7
upply ;hainis the organiCed mo"ement o# materials and) sometimes) people$
he term was #irst associated with the military but gradually spread to co"er
business acti"ities$ ogistics %anagement is de#ined as a business-planning
#ramework #or the management o# material) ser"ice) in#ormation and capital
#lows$ It includes the increasingly comple4 in#ormation) communication and
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control systems reuired in todayGs business en"ironment$ ogistics
management includes a whole gamut o# processes like planning) procurement)
transportation) maintenance) distribution and replacement o# personnel and
material$
he process o# logistics management di##ers #rom one #irm to another$ In some
#irms) all these acti"ities are placed within a single logistics department' in
others) they are shared among the departments$ he #irm may also go in #or
what is called third-party logistics) which is a contract with an outside party to
per#orm speci#ic logisticsser"ices$
he #ollowing indicati"e list gi"es some o# the #unctions that a #irmGs logisticsmanagement system is supposed to per#orm/
. C*s$+(er Servi?e71ll the acti"ities that are done to keep the e4isting
customers satis#ied come under the gamut o# customer ser"ice$
9. De("n! +re?"s$in47 his process includes "arious statistical
measures that enable the #irm to estimate the demand in the #uture)
which in turn helps in proper demand management$
0. D+?*(en$"$i+n l+7 his process co"ers the mo"ement o# the
paperwork that accompanies the mo"ement o# physical product$
=. In$er2l"n$ M+ve(en$s7 his is only applicable to those #irms where
production process is accomplished in more than one plant) reuiring the
mo"ement o# semi-#inished products #rom one plant to another$
,. Inven$+r3 M"n"4e(en$7 In"entory management reuires a cost
e##ecti"e maintenance o# stocks o# goods and materials$8. Or!er Pr+?essin47 Order processing starts with the receipt o# an order
#rom a customer and ends when the order is ready #or packaging$
-. P"?k"4in47 .ackaging is done mainly to protect the product when it is
being transported #rom the source to the destination$ It can also be used
#or promotional purposes$
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. Pl"n$ "n! :"re5+*se Si$e Sele?$i+n7 his #unction is carried to
determine where the plant and the warehouse are going to be located)
keeping cost-bene#it analysis in mind$
;. Pr+!*?$i+n S?5e!*lin47 his #unctionGs task is to balance demand #or
products with the e4isting plant capacity and a"ailability o# inputs$
. P*r?5"sin47 his is a "ery important #unction in the logistics
management as the uality o# inputs that are purchased determines the
uality o# the #inished product$ 3endor selection is an important sub-
process o# this #unction$
9. Re$*rne! Pr+!*?$s7 here are many categories o# returned products$1 #ew are subjects o# product recalls) meaning that a sa#ety de#ect or
haCard has been disco"ered$$ hese products are remo"ed #rom the
shel"es) and both retailers and consumers attempt to return them to the
manu#acturer$ his is a #orm o# re"erse distribution) with goods mo"ing in
the opposite direction o# their usual #low$
0. S"lv"4e S?r"2 Dis2+s"l7 How a #irm takes care o# its waste material is
co"ered in this #unction$ he #irm might recycle its waste or sell thewaste to "arious processors who specialiCe in recycling it$
=. Tr"@@i? M"n"4e(en$71ll the transport reuirements needed to mo"e a
#irmGs #reight is known as tra##ic management$
,. :"re5+*se "n! Dis$ri'*$i+n Cen$re M"n"4e(en$7 his logistics
acti"ity in"ol"es management o# the locations where the #irmGs
in"entories are stored$
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SURVEY INDING
H+ !+ 3+* ("n"4e 3+*r s*22l3 ?5"inF
;lose partnership with suppliers T;lose partnership with customers TMI supply Te-procurement?DIOutsourcingubcontracting T=..lan strategically
upply ;hain 0enchmarking T3ertical integrationPew suppliers T%any suppliersHolding sa#ety stock T*se o# e4ternal consultants TOther
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How success#ul do you think is your company in managing its supply chain ingeneralS
+otsuccess#ul at
all
+otsuccess#ul
omewhatsuccess#ul
uccess#ul 3erysuccess#ul
- - - 6B -
; ; ;
.;
;;
9
=
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