Analysis of Supply Chain Management

Mirza Hannaan Begg (14371) Syed Taha Mustafa (13357) Muhammad Sadiq (10228) Musaddiq Hasnain (12546)

Aisha Steel Mills Limited (ASML) is a state of the art cold rolling complex with a nameplate capacity of 220,000 metric tons per year. ASML represents one of the largest private sector investments in the steel industry of Pakistan. It is the only Cold Rolled Coil (CRC) manufacturer in the country which is using brand new Japanese and Austrian machinery for all of its main processes, ensuring best quality production of CRC in the country. The CRC products will be offered to the industrial, engineering and manufacturing industry as a premium raw material for transformation into any number of value-added products for the domestic and export markets.

VISION To be a world class manufacturer of Cold Rolled

Steel.

MISSION
To become an efficient producer of Cold Rolled Steel while serving interests of all stakeholders

Our People We are an equal opportunity employer. Discrimination on any grounds is fundamentally unacceptable. The management adhere to the following to be in line with the best global practices. Value creation for all the stake holder. Keep a strong focus on the long run sustainable advantage. Develop and strengthen a transparent and inventive culture while encouraging ethical values. Ensuring that the corporate strategy passes throughout the organization and is inculcated across the company.

ASML produces different gauges Cold Rolled Coils (CRC) of international standards from imported Hot Rolled Coils (HRC). The CRC products are mainly offered to the industrial, engineering and manufacturing industry as a premium raw material for transformation into any number of value-added products for the domestic and export markets. ASML is the only CRC plant in Pakistan with an Electrolytic Cleaning Line (ECL) which substantially improves the product quality, removing all impurities making ASML one of the most valuable CRC producers meeting the highest quality standards.

Suppliers

Nippon Steel Japan KHC Iron and Steel Center Taiwan CWC China

Competitors

Pakistan Steel Millls International Steel Ltd And other Imports from various countries

Removal of scale (iron oxide) on the surface of Hot Rolled Coils. Edge Trimming (Width of Hot Rolled Coils are not even). Inspection of Hot Rolled Coils (Surface, Dimension, etc.). Oiling for prevention from rust. Hydrochloric acid (HCL)

Cold Rolling means rolling Hot Rolled Coil to the required thickness at room temperature, after the Pickling process. Tempering

Removal of oil, iron powder and other foreign materials This process is required by Appliance & Automobile industry Caustic Soda (High Alkaline).

Heat up to 600-800 and gradually cool down for Recrystallization. AISHA adopted H2 (Hydrogen) type which gives better performance

To adjust the width by edge trimming. To adjust coil weight by dividing a large coil into small coils to meet the requirement. To inspect dimensions, surface quality, flatness, and remove defective parts. To apply rust-preventive oil.

Supply chain planning is dependent on the companys strategy around procurement, manufacturing (including maintenance), logistics, and managing customer relationships. These departmental and functional strategies drive the supply chain planning processes and KPIs.

We can broadly classify planning in three levels for ASML.

Sales and Operations planning Master Production Schedule Detailed Planning

The supply chain at ASML comprises the following areas:

1.

Forecasting: A forecast predicts how much demand there will be in the market for a specific product over a certain period.
Planning / source development: Planning is also responsible for monitoring and controlling the amount of stock the company holds and for ensuring that the correct stock holding levels are maintained to meet customer service requirement. Procurement: The ability to purchase certain materials will determine if operations will continue. Because a business will not be able to survive if it's price of procurement is more than the profit it makes on selling the actual product.

2.

3.

Warehousing/ logistics of HRC: Warehouse workers process a variety of written and electronic documents, including Material receiving note Material issuance note Material consumption note (Production dept.) Material return from production
1. 2.

Availability for production Dispatch

ASML is an ERP (Enterprise Resource Planning) based Organization. All the departments are linked with each other through networking called INTRANET. ASML is an ERP (Enterprise Resource Planning) based Organization. All the departments are linked with each other through networking called INTRANET. Six modules have been purchased namely Production Planning, Human Capital Management Material Management, Finance and Costing, Sales and Distribution and Quality Management. Each module is integrated with each other. This integration has increased the efficiency of each department, as maintaining and keeping record of data and information have become easier.

The lead time of raw material is around 2 months. Demand of one month is achieved from two or three suppliers. When there are those products which need either more production time or the suppliers have schedules to provide material then we set lead times accordingly Lead time is essential for supply chain imports the manager needs to analyze & forecast all risks involved & respective requirement of the product for the production process.

For different origins and different products lead times will be different.

STRATEGIC LEVEL TACTICAL LEVEL

OPERATIONAL LEVEL

Importance of Location w.r.t. SCM Problems with SAP Problems in SCM Material Handling SC dept. looks after Procurement