CHAPTER-1

INTRODUCTION

INTRODUCTION
Here we are focusing on SUPPLY CHAIN MANAGEMENT IN MINDA
CORPORATION LTD., NOIDA And on the basis of that we are predicting the image of a
company and its impact on the consumers. Since a lot of opportunities are available in the
automobile accessories market and there are lot of COMPANIES are operating in INDIAN
market. The Minda Corporation Ltd. enjoys market leadership in security systems for the
automotive industry.
Supply Chain Management is now a days very important for every industry so it is very
important to have a knowledge about supply chain of every company by which they can plan
for future and make strategies for the short term as well as for long term.
Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required by
end customers. Supply chain management is a cross-function approach to manage 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. Problems can be in distribution channel &
information flow
Companys supply chain is an integral part of its approach to the markets it serves. The
supply chain needs to respond to market requirements and do so in a way that supports the
companys business strategy. The business strategy a company employs starts with the needs
of the customers that the company serves or will serve. Depending on the needs of its
customers, a companys supply chain must deliver the appropriate mix of responsiveness and
efficiency. A company whose supply chain allows it to more efficiently meet the needs of its
customers will gain market share at the expense of other companies in that market and also
will be more profitable.

Need of the study

Supply Chain Management is very important for any company so that the company can
supply the products to the customers on time. Minda Corporation Ltd. is the largest
manufacturer of security system of automobiles so it needs a very efficient & effective supply
chain so that it can fulfill the customers requirement. Supply chain management involves the
use of a set of approaches to integrate efficiently the activities of suppliers, manufacturers,
warehousing providers and retailers, so that goods are produced and distributed in right
quantities, to the right locations, and at the right time, in order to minimize system-wide costs
while meeting customer service expectations. Supply Chain Management examines the role
of SCM in developing quality products and meeting customer demand faster and better than
the competitors. It includes JIT, Lean Manufacturing system, 5S (Methodology), Kaizen.
Study of companys management according to demand fluctuation.

Scope of the study:

This project will help to understand about the supply chain management, its different
elements and important terms used in a manufacturing firm MCL and position of the
company in this stiff competition. Being a student of management I have come to the
conclusions from the data analysis of the project and given some appropriate suggestion to
the organization.
The company can take decisions according to the suggestions and it will provide better
experience to the students for their bright career.

CHAPTER-2
COMPANY PROFILE

COMPANY PROFILE:
The MINDA GROUP OF INDUSTRIES has been started in 1958 by Mr. S.L.MINDA. He
has two sons Mr.N.K.MINDA & Mr. Ashok MINDA. Mr. N.K.MINDA is the owner of the
company named MINDA INDUSTRIES LTD. & Mr. Ashok MINDA is the owner of ASHOK
MINDA GROUP OF COMPANIES in which there are 12 companies. Earlier MINDA
CORPORATION LTD. was known by MINDA HUF LTD.
The company is the largest manufacturer of the Mechanical & Electronic Security Systems in
India. Its total sales this year is approx. USD 50 Million and Exports contribute to 20% of
total turnover. It is the OEM's to nearly all the Indian OEM's and supply to Europe and South
East Asia. It has International presence having manufacturing units in Indonesia, Germany
and Czech Republic.

The company is in business of plastic interior parts for cars, locks, switches, window
regulators, immobilizers. Company is Manufacturing security systems (electronic and
mechanical locks, keyless entry system, latches, handles, keys etc.), windows regulator,
wiring harness, zinc die-casting products, instrument panels, fuel tank sensors and interiors
(plastic molding parts)for automobile OEM's.
Headquartered at Noida, Minda Corporation Ltd. is an erstwhile joint venture with
Huf Hulsbeck & Furst GmbH & Co. KG, Germany.

Fact File
2/3 Wheeler Electronic & Mechanical Security Systems,
Product Range

Window Regulator, Polymer Unit - KTSN Germany for

Automotive Industry

Erstwhile Collaborator Huf Hulsbeck And Furst GmbH & Co. KG, Germany

Indonesia

Netherlands

Office in Vietnam

Office in Japan

International Presence

Exports

Over 20% of Total Turnover

Domestic
Manufacturing

Noida , Pune , Aurangabad and Pant Nagar

Locations
Capacity

30 Million security systems per annum

ISO 14001

Quality Certification
ISO/TS16949:2002

VISION & BUSINESS PHILOSOPHY OF THE COMPANY:

Vision

Global Business no geographical restriction

Respected & Recognized by Stakeholder community

Great place to work

Business Philosophy
Customer First
Focus on Technology to create World Class Products
Value for Money
Continuous Improvement

Critical Success Factor

Customers Preferred Supplier

International Standards
Global Standards in quality, delivery & services
Collaboration with global industry majors to provide global standards.

Develop internal competencies of global standards

Speed: Total product delivery time

Concept to design
Design to engineering
Engineering to production

ASHOK MINDA GROUP OF COMPANIES:

There are mainly 12 companies in Ashok Minda Group of Companies:

MINDA MANAGEMENT SERVICES LTD.

MINDA CORPORATION LTD.

MINDA SILCA ENGINEERING LTD.

MINDA VALEO SECURITY LTD.

MINDA KTSN GERMANY

PT MINDA ASEAN

MINDA STONERIDGE INSTRUMENTS LTD.

MINDA FURUKAWA ELECTRIC PVT. LTD.

MINDA SM TECHNOCAST LTD.

MINDA SAI LTD.

MINDA AUTOCARE LTD.

MINDA SCHENK PLASTIC SOLUTION LTD.

The Ashok Minda Group is a leader in its segment and enjoys major market share for
some of its products. The group manufactures security systems, wiring harnesses,
couplers, terminals and instrument clusters for almost all major two and four wheeler
vehicles manufactured in India.
Minda Huf Ltd, a joint-venture with Huf Hlsbeck & Frst GmbH of Germany, is the
flagship company of the Ashok Minda group which started commercial production of twowheeler locks in 1989, followed by four-wheeler locksets in 1994. The Ashok Minda
Group is structured into the following companies:
Minda SAI: Initially established in 1995, as Sylea Automotive (India) Ltd., a subsidiary
of Valeo, the company was acquired in April 2003 with the aim of diversifying into the

wiring harness business. The company also derives some revenue from non-automotive
white goods businesses. It operates five plants throughout India. Wiring harnesses account
for 80% of sales, while wire sets account for 15% of sales. The other 5% is generated by
components.
Minda Stoneridge: Earlier known as the Minda Instruments, is a leading supplier of
mechanical instrument clusters. The company has grown by 80% in the last three years.
Minda Huf Ltd: A leading supplier of locking systems in India and the Groups flagship
company.
Minda Huf Europe BV: A European subsidiary supplying security systems, door handles
castings and moldings in Europe.
Mayank Auto Pvt. Ltd: Manufacturer of sub-assemblies.
SM Technocast Pvt. Ltd: Producer of die-castings.
PT Minda ASEAN Automotive: A new company set up in Indonesia to serve two
wheeler manufacturers in the ASEAN region.

The group has a wide base of clients comprising domestic OEMs such as Ashok Leyland,
Eicher Motors, Escorts Tractors, Fiat Auto, Hero Motors, Hindustan Motors, Honda Motor
Cycle & Scooter India, Indo Farm Tractors, International Tractors, Kinetic Engineering,
Kinetic Motor Company, Mahindra & Mahindra, Monto Motors, New Holland, Piaggio
Vehicles, Reva Electric Car Company, Same Greaves Tractors, TVS Motors, VST Tillers &
Tract and Yamaha Motor India.
Mindas tier-1 customers include domestic clients like Denso, L & T Case Equipments,
LML (Components), Mindarika, Nippon Audiotronix, Sandan Vikas, Siemens VDO,
Subros, Sundaram Motors.
The companys international clients include Creo Products, Harteveld Automaterialen BV,

Lotus Cars, Piaggio, Peugeot, Aprillia, Supra Industries and Triumph among others. The
company also serves the aftermarket.
Recent Developments
Corporate strategy The Ashok Minda Group has been aggressively expanding in Europe
and the ASEAN region through its subsidiaries in Europe and Indonesia and has been
actively trying to catch up with the international players. Company has set high export
targets for itself, aiming for a higher share for exports of group sales.
Domestically, the company is growing well. To further its growth Ashok Minda Group has
aggressively diversified its product range by acquiring Valeos wiring harness subsidiary in
India and also by forming a joint-venture with Stoneridge producing instrument clusters.

Acquisition
In 2003, the company acquired Valeos wiring harness arm, Sylea Automotive (India). In
accordance to the agreement made between the two companies, Valeo continues to provide
technical assistance to Minda. In principle, Valeo also agreed to source some of its required
components from the company.

Joint-ventures
PT Minda ASEAN is a joint-venture between the Ashok Minda Group and the NK Minda
Group with a manufacturing presence in Indonesia. The Indonesia based facility
commenced production at the end of 2005.

In August 2004, Stoneridge Inc. (USA), bought a 49% stake in Minda Instruments over a
period of three years. The company, renamed Minda Stoneridge, received exclusive
manufacturing and marketing rights for India and 17 Asian countries, namely- Malaysia,
Indonesia, Philippines, Singapore, Thailand, Vietnam, Pakistan, Bangladesh, Brunei,
10

Burma, Cambodia, Laos, Mauritius, Maldives, Nepal and Sri Lanka. The joint-venture is
expected to achieve a turnover of US$20m by 2007-08. Critically the company also has an
arrangement for buy-back with Stoneridge. The company is also chalking up plans to add
other product lines from Stoneridge Inc. including sensors; actuators etc., to the jointventure.
Minda Huf Limited is a joint-venture between the Minda family and Huf Hlsbeck &
Frst GmbH. The joint-venture was formed in 1995. Additionally, Minda Huf Ltd.
receives technical assistance for Fiat Lock Kits from TRW and Altech, and for
electronic and mechanical security systems from Delta electronics, all of which
are based in Italy.

Investments

In January 2005, Minda Huf Ltd. established a European subsidiary,

Minda Huf Europe BV with operations in Breda (Netherlands). The new

company acts as a logistics facility for existing European clients for just-in-time
deliveries. At the same time the company is targeting new clients. The company
supplies mechanical and electronic security systems, door handles, castings and
mouldings. Minda Huf intends to derive 20m in sales from the new venture by
2007-08. Furthermore, through the new set up, Minda Huf is targeting new
segments such as commercial vehicles, recreational vehicles, tractors,
earthmovers and construction equipment in the European market.

In February 2004, Minda Huf announced the launch of a new facility in Pune. The new
facility caters to the growing requirements of Minda Hufs clients in Indias western region.
The total capital investment on the new facility was INR250m (4.43m, 28 February 2004).
Eventually the facility should provide nearly 400 jobs.

11

Contracts
MHL is the sole supplier to the Ford Ikon.
MHL is the single source supplier for the Opel Corsa.
MHL is the single source supplier for the Tata Indica and Safari.
MHL is the single source supplier for the Fiat Siena and the Palio.
MHL is the single source supplier for the Mahindra & Mahindra Scorpio and has 70% of
the business share as a supplier to the model Bolero.
MHL is the single source supplier to Force Motors for the Trax and the Traveller.
MHL has a 40% share of business of Maruti Omni and the 800.
In December 2003, MHL commenced production of Indilock, an advanced central car
locking security system, for supplies to Tata Motors.
MHL supplies locksets to DaimlerChrysler (Germany).
The company supplies transponder immobiliser locksets to Ford in Mexico and South
Africa.
MHL supplies locksets and electronic security systems for two-wheeler and four-wheeler
applications to Piaggio (Italy).
MHL supplies locksets to Aprillia, Italy; Peugeot, France; Yamaha-MBK, France;
Yamaha, Spain; Derby, Spain; Suzuki, Spain; Yamaha, Indonesia; and Suzuki, Thailand for
two-wheeler applications.
MHL supplies locksets to Cobo (Italy) for LCVs.
MHL has the contract to supply locksets to Triumph (UK).
Minda Stoneridge is the single source supplier to Tata Motors for the Sumo and the LCV407/709.
Minda Stoneridge has been chosen as the single global source supplier for the Piaggio

12

NQP World Van.

The Minda Group, India's foremost auto component manufacturer, announced a major
initiative to aggressively target the After Sales market for its range of products. The Group, in
the first of its kind initiative in the auto component space, announced the roll out of its
FMCG model for the aftermarket (replacement market). Minda Corporation Ltd. has its
largest unit in Pune, Maharastra.

PRODUCTS OF MINDA GROUP OF INDUSTRIES:

PRODUCTS OF N.K.MINDA INDUSTRIES LTD.

HEAD LIGHTS

SWITCHES

HORNS

BATTERIES

CNG/LPG KITS

SEATS
13

PRODUCTS OF ASHOK MINDA GROUP OF COMPANIES

KEY SYSTEM

STEERING COLUMN LOCK

POLYMER

LOCK SETS

DOOR HANDLES

WINDOW REGULATORS

WIRING HARNESS

DIE CASTING

SPEEDOMETER (CLUSTER ASSEMBLY)

ELECTRONIC TRANSPONDERS

IGNITION SWITCHES

FUEL TANK CAP

INSTRUMENT PANELS

REMOTE CONTROL SYSTEMS

14

CUSTOMERS OF THE ASHOK MINDA GROUP OF

COMPANIES
CUSTOMERS OF MINDA CORPORATION LTD.:
MAJOR CUSTOMERS- EXPORT MARKET
COMPANY

COUNTRY

VEHICLE CATEGORY

APRILIA

ITALY

SCOOTER

DERBY

SPAIN

SCOOTER

KAWASAKI

JAPAN

MOTORCYCLE

PEUGEOT

FRANCE

SCOOTER

PIAGGIO

ITALY

2&4 WHEELER

POLLAK

U.S.

OFFROAD VEHICLE

TRIUMPH
MOTORCYCLES LTD

UNITED KINGDOM

MOTORCYCLE

YAMAHA MBK

FRANCE

MOTORCYCLE

YAMAHA

SUZUKI

SPAIN/INDONASIA/
MALAYSIA
SPAIN/THAILAND/
INDONASIA

SCOOTER/MOTORCYCLE

SCOOTER/MOTORCYCLE

MAJOR CUSTOMER IN DOMESTIC MARKET

COMPANY

MODELS

SHARE OF BUSINESS

BAJAJ AUTO LTD.

MOTORCYCLE

100%

HONDA MOTORCYCLE &

SCOOTER INDIA

SCOOTER

50%

JCB INDIA

3DX

100%

KINETIC ENGINEERING
LTD

SCOOTER, MOPED &

MOTORCYCLES

100%

LML LTD

MOTORCYCLE/SCOOTER

70%/100%

15

SUZUKI MOTORCYCLE
INDIA

MOTORCYCLE

100%

TVS MOTOR COMPANY

LTD

SCOOTER, MOPED &

MOTORCYCLES

40%

KINETIC MOTOR CO.

LTD.

SCOOTER

100%

YAMAHA MOTOR INDIA

(P) LTD.

MOTORCYCLE

100%

COMPETETORS OF MINDA CORPORATION LTD.:

1- SANDHAR LOCKING DEVICE (SLD), INDIA
2- JAY YUSHIN (JY),JAPAN
3- ZADI, ITALY
4- ASAHI DENSO, JAPAN

16

MANUFACTURING FACILITIES
High quality standards and constant innovation are central to all activities at MINDA
CORPORATION LTD. To achieve this, company has invested substantially in Product
Design and Development and world class tool manufacturing facilities.
All products undergo rigorous testing for endurance, environment, fitment and function at inhouse test laboratories. Minda Corporation Ltd. is committed to environmental protection and
our environmental safety standards meet stringent international requirements.

Product Design The latest technologies for product designing have been adopted, which
include

CAD-CAM

Rapid Prototyping

Rapid tooling

This has resulted in a substantial reduction in design to delivery time. In excess of 100 new
products are developed each year.

Production Engineering
Dedicated teams of engineers oversee the development of manufacturing infrastructure for
new products and documentation for all the processes. Techniques of JIT, Single Piece Flow,
SMED and POKA-YOKE ensure optimum utilization of resources and speedy development
from concept to production stage.

Tool Manufacturing
Minda Corporation Ltd. has developed advanced in-house tool making facilities to ensure for

17

higher quality and lower throughput time. First-Time-Right concepts and Tool
Standardization

ensures

reduction

of

development

time

and

cost.

Latest technologies are used include CNC wire cut and CNC milling machines. SMED
techniques are used in the tool manufacturing to achieve faster changeover in production.

Manufacturing Facilities
Manufacturing is designed to offer customized products rather than standard products and
emphasis is on usage of special purpose plant and equipment.Minda Corporation Ltd. has the
latest generation machines for manufacturing components and critical operations are done inhouse.

Key biting is done on computerized CNC special purpose machines

Die-casting on PLCs controlled die-casting machines ranging from 20 tons to 250

tons.

SPM's include include machining center; boring and grooving machines to give
highly reliable parts.

.Well-trained multi-skilled associates assemble all the in-house components on assembly

lines. Productivity improvement is a critical area of focus in Minda Locking Systems and this
is achieved through commissioning of POKA-YOKE devices in various critical operations.
High efficiency, quality and productivity are achieved by making flow of production single
piece in assembly.

Lean Manufacturing
Lean principles come from the Japanese manufacturing industry. Lean is the set of "tools"
that assist in the identification and steady elimination of waste. As waste is eliminated quality
improves while production time and cost are reduced. Lean manufacturing or lean
18

production, which is often known simply as "Lean", is a production practice that considers
the expenditure of resources for any goal other than the creation of value for the end customer
to be wasteful, and thus a target for elimination. Lean manufacturing is a generic process
management philosophy derived mostly from the Toyota Production System (TPS). Lean
implementation is therefore focused on getting the right things to the right place at the right
time in the right quantity to achieve perfect work flow, while minimizing waste and being
flexible and able to change.

Kaizen
Kaizen (for "improvement") is a Japanese philosophy that focuses on continuous
improvement throughout all aspects of life. When applied to the workplace, Kaizen activities
continually improve all functions of a business, from manufacturing to management and from
the CEO to the assembly line workers. By improving standardized activities and processes,
Kaizen aims to eliminate waste. Kaizen is a daily activity, the purpose of which goes beyond
simple productivity improvement. It is also a process that, when done correctly, humanizes
the workplace, eliminates overly hard work and teaches people how to perform experiments
on their work using the scientific method and how to learn to spot and eliminate waste in
business processes.
The cycle of kaizen activity can be defined as:

standardize an operation

measure the standardized operation (find cycle time and amount of in-process
inventory)

gauge measurements against requirements

innovate to meet requirements and increase productivity

standardize the new, improved operations

19

continue cycle

KANBAN
Kanban (where kan, means "visual," and ban, means "card" or "board") is a concept related
to lean and just-in-time (JIT) production. The Japanese word kanban is a common term
meaning "signboard" or "billboard". Kanban is a signaling system to trigger action. Kanban
became an effective tool to support the running of the production system as a whole. In
addition, it proved to be an excellent way for promoting improvements because reducing the
number of kanban in circulation highlighted problem areas. An important determinant of the
success of production scheduling based on "pushing" the demand is the quality of the demand
forecast which can receive such "push". Kanban, by contrast, is part of an approach of
receiving the "pull" from the demand. Therefore the supply, or production is determined
according to the actual demand of the customers. In contexts where supply time is lengthy
and demand is difficult to forecast, the best one can do is to respond quickly to observed
demand. This is exactly what a kanban system can help: it is used as a demand signal which
immediately propagates through the supply chain. This can be used to ensure that
intermediate stocks held in the supply chain are better managed, usually smaller. Where the
supply response cannot be quick enough to meet actual demand fluctuations, causing
significant lost sales, then stock building may be deemed as appropriate which can be
achieved by issuing more kanban. A simple example of the kanban system implementation
might be a "three-bin system" for the supplied parts (where there is no in-house
manufacturing) one bin on the factory floor (demand point), one bin in the factory store
and one bin at the suppliers' store.
JUST-IN-TIME
Just-in-time (JIT) is an inventory strategy that strives to improve the return on investment of
a business by reducing in-process inventory and its associated carrying costs. To meet JIT
20

objectives, the process relies on signals between different points in the process. This means
the process is often driven by a series of signals, or Kanban which tell production when to
make the next part. JIT can dramatically improve a manufacturing organization's return on
investment, quality, and efficiency. The technique was first used by the Ford Motor
Company, The JIT inventory philosophy defines how inventory is viewed and how it relates
to management. Inventory is seen as incurring costs, or waste, instead of adding and storing
value, contrary to traditional accounting. This does not mean to say JIT is implemented
without an awareness that removing inventory exposes pre-existing manufacturing issues.
This way of working encourages businesses to eliminate inventory that does not compensate
for manufacturing process issues, and to constantly improve those processes to require less
inventory. Secondly, allowing any stock habituates management to stock keeping.
Management may be tempted to keep stock to hide production problems. These problems
include backups at work centers, machine reliability, process variability, lack of flexibility of
employees and equipment, and inadequate capacity.
In short, the just-in-time inventory system focus is having the right material, at the right
time, at the right place, and in the exact amount, without the safety net of inventory. The JIT
system has broad implications for implementers. JIT reduces inventory in a firm.
Main benefits of JIT include:

Set up times are significantly reduced in the factory.

The flow of goods from warehouse to shelves improves.

Employees who possess multiple skills are used more efficiently.

JIT provides better scheduling and work hour consistency.

There is an increased emphasis on supplier relationships.

Supplies come in around the clock, which keeps workers productive and businesses
focused on turnover.

21

5S (METHODOLOGY)
5S is a method for organizing a workplace, especially a shared workplace (like a shop floor
or an office space), and keeping it organized. The key targets of 5S are workplace morale,
safety and efficiency. The assertion of 5S is, by assigning everything a location, time is not
wasted by looking for things. Additionally, it is quickly obvious when something is missing
from its designated location. Advocates of 5S believe the benefits of this methodology come
from deciding what should be kept, where it should be kept, and how it should be stored. This
decision making process usually comes from a dialog about standardization which builds a
clear understanding, between employees, of how work should be done. It also instills
ownership of the process in each employee. 5S are
Phase 1 - Seiri - Sorting
Phase 2 - Seiton - Straighten or Set in Order
Phase 3 - Seis - Sweeping or Shining or Cleanliness
Phase 4 - Seiketsu Standardizing
Phase 5 - Shitsuke - Sustaining the discipline

22

POKA-YOKE
Poka-yoke

is a Japanese term that means "fail-proofing" or "mistake-proofing". A poka-

yoke is any mechanism in a Lean manufacturing process that helps an equipment operator
avoids mistakes. Its purpose is to eliminate product defects by preventing, correcting, or
drawing attention to human errors as they occur. The concept was formalized, and the term
adopted, by Shigeo Shingo as part of the Toyota Production System. Poka-yoke can be
implemented at any step of a manufacturing process where something can go wrong or an
error can be made.

23

INPUT

PROCESS

Takt Time
Kanban Linkage
Logistics

Standards
Poka-Yoke
5S

Value Added to employee cost

Job enlargement
Process Ownership

Productivity
improvement

High ITR

Inventory
Management

Working Capital Management

In House rejection
Warranty Claims
Customers Complaints

Quality
Management

5S

Lean
Thinking

Zero Breakdown
Zero Defect
Production increase

TPM

Cell Layout
Single Component Flow
Multi machine manning

IMPACT

Stability in Process
Reduce Lead Time
Customer Satisfaction

Lean

Autonomous maintenance
Planned maintenance
Quality maintenance
Kobetsu Kaizen

Red Tag
SMED
Containerization

RESULT

Daily Management Discipline

Waste Elimination
Operator Ownership

ROAD MAP TO COMPETITIVENESS FOR MINDA

24

Paradigm
Shift
Productive
Work
Culture
Improved
Cash Flow

Quality
Excellence

Improvemen
t Culture

CHAPTER 3
SUPPLY CHAIN MANAGEMENT

25

SUPPLY CHAIN OF MINDA CORPORATION LTD.

Schedule
CUSTOMER

MARKETING
DEPARTMENT

FINISHED
PRODUCTS

Indent
Requirement

BONDED
STORE

PPC
DEPARTMEN
T

Finished &
Checked Products

Requirement
Requirement

PRODUCTION
DEPARTMENT

Raw Material

MAIN
STORE

PURCHASE
DEPARTMENT

Finished Products
OK Components

QUALITY CHECK
DEPARTMENT

Order

VENDOR

Raw Materials
RECEIVING
STORE

26

Raw Material

Supply Chain Management (SCM) is a discipline that optimizes costs of manufactured

products, by controlling all areas that impact the manufacturing process. It begins with the
customer demand or need and ends with the fulfillment of the demand and need. Supply
Chain Management is process of planning, implementing & controlling the operation of
supply chain with the purpose to satisfy the customer requirement efficiently. Supply chain
management spans all the movements & storage of raw-materials, work-in-process inventory
& finished goods from point of origin to point of consumption.
The language of supply chain management is based upon the following acronyms:
JIT - Just-in-Time manufacturing
EDI - Electronic Data Interchange
CRP - Continuous replenishment program
POS - Point of sale
EFT - Electronic funds transfer
ECR - Efficient consumer response
QR - Quick response
To ensure that the supply chain is operating as efficient as possible and generating the highest
level of customer satisfaction at the lowest cost, companies have adopted Supply Chain
Management processes and associated technology. Supply Chain Management has three
levels of activities that different parts of the company will focus on: strategic; tactical; and
operational.

Strategic: At this level, company management will be looking to high level strategic
decisions concerning the whole organization, such as the size and location of
manufacturing sites, partnerships with suppliers, products to be manufactured and
sales markets.

27

Tactical: Tactical decisions focus on adopting measures that will produce cost
benefits such as using industry best practices, developing a purchasing strategy with
favored suppliers, working with logistics companies to develop cost effect
transportation and developing warehouse strategies to reduce the cost of storing
inventory.

Operational: Decisions at this level are made each day in businesses that affect how
the products move along the supply chain. Operational decisions involve making
schedule changes to production, purchasing agreements with suppliers, taking orders
from customers and moving products in the warehouse.

There are four major decision areas in supply chain management:

1) location,
2) production
3) inventory
4) transportation (distribution)
There are both strategic and operational elements in each of these decision areas:
Location Decisions
The geographic placement of production facilities, stocking points, and sourcing points is
the natural first step in creating a supply chain These decisions are of great significance
to a firm 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

28

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

and duty drawback, tariffs, local content, distribution costs, production

Production Decisions
The strategic decisions include what products to produce, and which plants to produce
them in, allocation of suppliers to plants another critical issue is the capacity of the
manufacturing facilities. Operational decisions focus on detailed production scheduling.
These decisions include the construction of the master production schedules, scheduling
production on machines, and equipment maintenance.

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.. Since
holding of inventories can cost anywhere between 20 to 40 percent of their value, their
efficient management is critical in supply chain operations the determination of the
optimal levels of order quantities and reorder points, and setting safety stock levels, at
each stocking location are the objectives of the Inventory Decisions .

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 tradingoff the cost of using the particular mode of transport with the indirect cost of inventory
associated with that mode. The customer service levels, and geographic location play
vital roles in Transportation Decisions. Shipment sizes (consolidated bulk shipments

29

versus Lot-for-Lot), routing and scheduling of equipment are keys in effective

management of the firm's transport strategy.

Benefits and Strategic Implications of SCM

SCM creates a competitive advantage and greater profitability by providing strategic

partnerships among the SC members through reducing channel-wide inventory,
increasing promptness, and better customer service.

SCM allows partnering firms to achieve core competencies while spreading the risk of
asset ownership and reducing market risks through effective co-ordination and
communication

Improves quality and services through balancing the channel-wide execution and
planning requirements associated with SCM, thus, resulting in improved customer
acceptance of the end product.

Increases sales as customers become more confident in single sourcing due to

improved quality and services and decreased cycle time.

Reduces number of sources of supply permitting closer co-ordination, thus leading to

improved quality and cost results, strengthening the SC further.

30

Elements of Supply Chain Management in Minda Corporation Ltd.:

There are mainly eight elements of whole supply chain of the Minda Corporation Ltd. but
others are also there as finance department where the whole financial works are done,
corporate block where the strategic decisions are taken for the growth of the company. The
main elements are:

Customer: The customer starts the chain of Supply Chain when they decide to purchase a
product that has been offered for sale by a company. The customers contact the Marketing
department of the company and give schedule for their requirement at the end of the month
for the next month, which enters the sales order for a specific quantity to be delivered on a
specific date. If the product has to be manufactured, the sales order will include a requirement
that needs to be fulfilled by the production facility.

Marketing Department: The Marketing Department receives the schedule and releases the
indent report for the next month & tentative indent for the next two months on 20 th of every
month & on 2nd of the next month they release revised indent (final indent) report. Revised
indent or schedule is given to the PPC department if any change occurs in demand of the
customer through Indent Change Note (ICN). E.g. Customer gives schedule to marketing
department in April for next month May and on 20 th of April Marketing Department releases
indent for May & tentative indent for June & July. On 2nd of May revised indent is released.

Production, Planning & Controlling Department (PPC): The indent report comes to PPC
department & the requirement triggered by the customers sales order will be combined with
other orders. The planning department will create a production plan to produce the products
to fulfill the customers orders. To manufacture the products the company will then have to

31

purchase the raw materials needed. In PPC department Master Plan is made means how much
is the requirement of raw-material, how much is already in stock, how much man-power is
required to fulfill the requirement of the customer on time. All the reports now give to store,
purchase department & assembly line. After preparing monthly plan this department plans for
3days only & this report is given to the production department so that they can produce
according to the daily demand of the customer.

Purchase Department:

The purchasing department receives a list of raw materials and

services required by the production planning & controlling department to complete the
customers orders. The purchasing department sends purchase orders to selected suppliers or
vendors to deliver the necessary raw materials to the manufacturing site on the required date.

Inventory Store: The raw materials are received from the suppliers or Vendors in Receiving
Store, checked for quality and accuracy by Quality Check Department and moved into the
warehouse or main Store. The supplier will then send an invoice to the company for the items
they delivered. The raw materials are stored until they are required by the production
department.

Production Department: Based on a production plan, the raw materials are moved
inventory to the production area. The finished products ordered by the customer are
manufactured using the raw materials purchased from suppliers.

Bonded Store: After the items have been completed on Assembly Line and tested by
Quality Check Department, they are stored back in the Bonded Store prior to delivery to the
customer.

32

Transportation: When the finished product arrives in the bonded store, the Dispatch
department determines the most efficient method to dispatch the products so that they are
delivered on or before the date specified by the customer. When the goods are received by the
customer, the company will send an invoice for the delivered products.
For export, Customer orders on monthly basis & on 20 th of the month indent
releases by the MCL. All the other processes are same. For exporting the goods company
gives dispatch advice for export of goods to its dispatch department. Near about 45days are
taken to reach the finished product to the customers.

33

CHAPTER 4
RESEARCH METHODOLOGY

34

RESEARCH METHODOLOGY:
A research design is a specification of method and procedures of acquiring the information
needed.
Research problems: To study the supply chain management of Minda Corporation Ltd. & to
know about the fluctuations in demand of the customers.
Data source: Primary data and secondary data
METHOD OF DATA COLLECTION
Actually data is of two kinds so researchers should keep in mind both types of data.
a) Primary Data:
Primary data are those, which are collected afresh and for the first time and this happen to be
original in character. The I have collected from the customers of the company is the demand
of the customers.
b) Secondary Data:
Secondary data are those data which have already been collected by someone else and which
have already been used as per required.
There are basically two sources to collect secondary data
1- Internally: Provided by the company/organization
2- Externally: Various publication of central, state and local Government.
1-

Books, magazines, newspapers

2-

Internet

35

After only keeping in mind one can think about what type of data has to be collected during
project.
Type of research is Exploratory Research
Primary data is collected from customers
Secondary data from company profile & internet.

Method of data analysis:

The data that is demand of the customer collected from customers were grouped into different
tables then analysis was done with the help of bar graphs which will show the demand
fluctuation.

36

CHAPTER 5
OBJECTIVES

37

OBJECTIVES
The systematic and objective identification, collection, analysis, dissemination, and use
information for the purpose of assisting management in decision making related to the
identification and solution of problem and opportunities in marketing. When an industry
comes in the competitive market then the main problem comes in front of it is, how can
survive in the market. For this purpose they have to know about their production process,
employment process, distribution process, consumer needs, it should have a strong &
effective supply chain. The main purpose of the industry is to satisfy the consumer needs.
Their all function rounds around the customer, they try to know the demand of the customer
and fulfill their goal

The main objective of the project is to know about Supply Chain Management in
Minda Corporation Ltd. that how efficiently it works in the company.

Apart from this some other objectives are:

To analyze the demand fluctuation in the company & according to that whether the
company is able to fulfill the requirement of the customers.

To know how the company manage the inventory according to demand fluctuation of
the products.

38

CHAPTER 6
S.W.O.T ANALYSIS

39

SWOT ANALYSIS:
Strengths:
Well established International brand
Collaboration and production under the technical assistance from joint venture
with Huf Hulsbeck & Furst GmbH & Co. KG, Germany.
Wide product range for 2 & 4 wheelers
Customer satisfaction provided through good supply chain network.
Customers incredible faith in Quality supplied by Minda.
Mark of serving countrys largest OEM covering major car manufacturers add up
to its credibility.

Weaknesses:
High prices as compared to competitors
Low dealer network in the market

Opportunities:
Substantially growing replacement market in automobile segment.
Company can be leading company in the world through improvement in supply
chain

Threats:
Large no. of competitors entering to market
Other manufacturers are providing comparable quality as compared to Minda.
The real challenge for the company is gear up for the latest technology & to invest
in R&D to face global competition
The auto sector is majorly being affected by the steel prices, oil prices &
increasing taxes.

40

CHAPTER 7
DATA ANALYSIS
AND
INTERPRETATION

41

INDENT-APRIL-09 (OE) AND TENTATIVE INDENT FOR MAY-09 & JUNE-09(MCL)NOIDA UNIT

CUSTOMER

IYML
IYML
IYML
IYML
IYML
IYML

MIN
DA
PAR
T NO.
KT2171Z
KT2221Z
KT1922BZ
KT2104Z
KT2233Z
KT2087BZ

SALE
AS
ON
APRIL09

INDENT
APRIL09

INDENT
(REV.)
APRIL09

WEEKELY
REQUIREMENT

(QTY)

(QTY)

(QTY)

1ST

2ND

3RD

4TH

(QTY)

7080

7180

600

2000

1620

1700

1860

7180

15

1600

1650

200

143

143

60

14480

9160

1800

5000

5000

2000

2480

9160

1680

1680

200

480

480

280

400

1680

MIN.STOCK
APRIL-09

TABLE: 1

42

600

2
600

450

1650

143

143

INDENT-MAY-09 (OE) AND TENTATIVE INDENT FOR JUNE-09 & JULY-09(MCL)NOIDA UNIT

CUSTOMER

IYML
IYML
IYML
IYML
IYML
IYML

MIN
DA
PAR
T NO.
KT2171Z
KT2221Z
KT1922BZ
KT2104Z
KT2233Z
KT2087BZ

INDENT

INDENT
(REV.)

MIN.STOCK

WEEKELY
REQUIREMENT

SALE
AS ON

MAY-09

MAY-09

MAY-09

(QTY)

(QTY)

(QTY)

1ST

2ND

3RD

4TH

(QTY)

8480

8400

500

2000

3000

3000

400

8400

15

15

1000

1000

150

600

40

40

60

40

10000

10000

1000

2500

2500

2500

2500

10000

1840

1840

200

300

500

600

440

1840

MAY-09

15

TABLE: 2

43

200

15
200

1000
40

INDENT-JUNE-09 (OE) AND TENTATIVE INDENT FOR JULY-09 & AUGUST-09(MCL)NOIDA UNIT
MIN
INDENT
WEEKELY
SALE
DA
INDENT
(REV.)
MIN.STOCK
REQUIREMENT
AS ON
PAR
JUNEJUNECUSTOMER
T NO.
09
09
JUNE-09
JUNE-09

IYML
IYML
IYML
IYML
IYML
IYML

KT2171Z
KT2221Z
KT1922BZ
KT2104Z
KT2233Z
KT2087BZ

(QTY)

(QTY)

(QTY)

1ST

2ND

3RD

4TH

(QTY)

9560

9500

580

3000

3000

3000

500

9500

345

345

150

1000

1000

150

300

40

40

20

40

6360

6360

1000

2000

3800

560

2560

2560

200

800

1000

500

TABLE: 3

44

345
300

345
300

100

1000
40
6360

440

2560

DEMAND AND SALES IN UNITS

DATA ANALYSIS & INTERPRETATION

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2171Z) OF YAMAHA

45

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2221Z) OF YAMAHA

46

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-1922B Z) OF YAMAHA

47

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2104Z) OF YAMAHA

48

DE

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2233Z) OF YAMAHA

49

DEMAND FLUCTUATION & SALES OF THE PRODUCT

(PART NO. KT-2087BZ) OF YAMAHA

50

INTERPRETATION:
From the above tables & bar graphs I have interpreted that there is large fluctuation in
demand during the months April, May & June for the same part no. supplied to
Yamaha by the company.
In April 09, Indent demanded by Yamaha for the part no.KT-2171Z was 7080 units
& Indent revised for same month was 7180 units. Min. Stock for the month was 600
units, as by seen indent & rev. indent, shows increment in the inventory by 100 units.
Minda fulfilled the demand of over 100 units by min. stock held.
In May 09, Indent demanded by Yamaha for the part no.KT-21711Z was 8480 units
& Indent revised for same month was 8400 units. Min. Stock for the month was 500
units, as by seen indent & rev. indent, shows decrement in the inventory by 80 units.
Minda fulfilled the demand of 8400 units and rest of the stock i.e.80 units will be
added in min. stock for the next month.
In June 09, Indent demanded by Yamaha for the part no.KT-21711Z was 9560 units
& Indent revised for same month was 9500 units. Min. Stock for the month was 580
units, as by seen indent & rev. indent, shows decrement in the inventory by 60 units.
Minda fulfilled the demand of 9500 units and rest of the stock i.e.60 units will be
added in min. stock for the next month.
The Most probable reasons for those fluctuations between Inventory & Indent Revised are
the sudden increase or decrease in requirement for the stock by the customer. For
example, Yamaha demanded 15 units for the part no KT-2221Z in April09 from Minda
but Indent Revised was decreased to 2 units and As in April 09, Suzuki firstly demanded
7080 units from Minda but then Indent Revised was increased by 7180 units. Both these

51

situation shows the sudden change (increase or decrease) in the requirement of stock by
Yamaha.
Firms respond to fluctuations in demand by changing their inventories and their levels of
production. Government policies that affect the costs of holding inventories and the costs
of the temporary layoffs that accompany reductions in the level of output can therefore
have significant effects on the magnitude of aggregate fluctuations.

52

CHAPTER 8
CONCLUSIONS, SUGGESTIONS &
LIMITATIONS OF THE STUDY

53

CONCLUSIONS, SUGGESTIONS AND

LIMITATIONS OF THE STUDY
Conclusion:
From the above analysis, I have concluded that there is large fluctuation in demand
according to the requirement of the customer. In spite of that, the company fulfills the
customer order on time because of efficient supply chain management which includes JIT,
lean manufacturing, and 5S (methodology). Supply Chain became one of the pivotal
vehicles of the company with untold opportunities for value creation.

54

Suggestions for the company:

According to my experience in Minda Corporation Ltd. most of the things were positive
but every company has some of its bottlenecks & scope of improvements So I would like
to suggest some of the following points:
The management & administration have some scope of improvement.
The company should use effective software for supply chain management so to
have proper flow of information.
The company should use Single Minute Exchange of Die (SMED) to reducing
production lot sizes and thereby improving flow. So that Productivity increases or
reduced production time & Goods will not lost through deterioration.

55

Limitation:
The supply chain network of the company is very large it is not possible to visit whole
departments of the supply chain network.

56

CHAPTER 9
BIBLIOGRAPHY

57

BIBLIOGRAPHY
WEBSITES
www.mindacorporation.com
www.scribd.com
www.wikipedia.com
www.supplychain.org
www.logistics.about.com/od/supplychainintroduction/a/into_scm.htm.

BOOKS
Naresh K. Malhotra, 2011, Marketing Research, New Delhi, Pearson Education,
Inc.
C. R. Kothari, 2009, Research Methodology (Methods and Techniques), New
Delhi, New Age International (P) Limited.
Michael H. Hugos, Essentials of Supply Chain Management

************

58

CHAPTER 10
QUESTIONNAIRE

59

QUESTIONNAIRE

Name:-________________

Age:-____yrs.

Gender:-

Qualification _________
Address___________

1.

What are you agree with the supply chain Management Process?
a. Agrees
b. Disagree
c. Cant Say

2.

Which vehicle do you owns, Please specify:

a. Hero Honda Bike
b. Yamaha Bike
c. Bajaj Bike

3.

Approximately daily run of your vehicle, in Km

a. 70km
b. 100km
c. 150km

4.

Preferable servicing centre of your vehicle , please tick

a. Hero Honda Centre
b. Bajaj Service Centre
c. Yamaha Service Centre

60

5.

Likely source of spares procurement, please tick

a. Direct Company
b. Distributors
c. Retailer

6.

If you are a retailer of accessories than your preferable source of procurement?

a. Minda Corporation Limited
b. Bajaj Service Centre
c. Yamaha Service Centre

7.

Approximate sales of your firm in rupees for one month.

a. 60,000 pm above
b. 10,000 pm around
c. 15,000 pm

8.

Majority of your clients belong to, please tick.

a. Company
b. Distributor
c. Retailer

9.

Do you face any problem during procurement process.

a. Yes
b. No
c. Cants Day

10.

Give Any Suggestions

____________________________________________________________
____________________________________________________________

61