DELIVERING DOORS IN A WINDOW:

SUPPLY CHAIN MANAGEMENT AT

HINDUSTAN AERONAUTICS LTD.
PRESENTED BY- TEAM 6
Yatika-58
Afreen-
Shubham-48
Aarfat-
Rishabh-98
 ABOUT THE CASE
This case tells about a supply chain management challenge faced by Hindustan
Aeronautics Ltd (HAL) in one of their aircraft door export project to a leading
aircraft manufacturer located outside India.

As per the contract, HAL has to deliver each aircraft door in a period specified by
the aircraft manufacturer. Delivery of door outside this window attracts a penalty.

The protagonist has to make decisions regarding when exactly to start the door's
main assembly to overcome variability in the assembly of doors, how much
inventory to maintain for 1222 parts that are used in the door assembly, how to
manage variability in processing times, how to handle outsourcing, and how to
manage parts with shelf life that are used in the door assembly.
 PROBLEM STATEMENT
The main predicament has been the incapacity of management to deliver the
assembled doors at the required window. The effects, consequently affect the
customer's plants inconveniencing their production plans of airbuses, which
cannot be completed without doors.
Similarly, there have been management issues with time durations of assembling
at each developmental stage.
Consumption of the shelf life parts is not predictable since under certain
circumstances leftovers of the parts lie under 4 to 5 months upon receipt of the
shelf life.
From this context, HAL tries to show-case its challenges in the door export
project.
 ANALYSIS
In 1992 to 2009, the company has failed in standardizing its deliveries in the set
windows. Because the low economic order quantity was only attained in the
month of January.
Analysis from the company's statistical data depicts that 9.7% of the total
delivered doors was from the assemblies that were scheduled on or before the
stipulated time. Prior assembly of the doors before the declaration of the assembly
dates in vital.
The probability of completion of door assembly of doors in 18.5 days is less than
0.5. However, from the crystal ball statistical analysis, the probability of
completion of assembly in less than 10.0 days is more than 0.5.
The estimated economic order quantity for the produced windows is estimated to
be 63. Both estimated steady and actual states of the deliveries in 2009 are not up
to the standard economic order quantity. During some months, the deliveries are
slightly higher to the steady levels and exceedingly low.
 PENALTY CALCULATION
• Late delivery of door in the stipulated windows incurs penalty costs from the
importing company.

• In accordance to the contract, HAL would be responsible by paying a 2% penalty

from the total price of a single door.

• This amounts to $1,000. In the year 2009, the company had 78 late deliveries, out
of the total 227.

• This cost the company a total of $78,000 in penalty.

 RECOMMENDATIONS
• Early planning in such an assembly company is vital since there is sample time
to dwell on design and drawing required by the importing customers.

• Proper management strategies are to be drawn in running the maintenance of the

parts and equipment for production of the doors.

• Inventories' costs of management should be designed to handle the door

outsourcing by the external assembly plant and shelf life of HAL's door
assembly.
THANK YOU