SUPPLY CHAIN PROCESS OF ALIF Group Members:

Jamil Ahmad (Group Leader)

INDUSTRY Zaheer Abbas

Waqas Ahamd
 CONTENTS
introduction of industry
Introduction of the company
Supply Chain Strategy
Core Processes or levels of Supply Chain
Supply Chain Drivers
Value Chain of Alif Industry
Process Strategy
Issues and Problems
Recommendations
Conclusion
INTRODUCTION OF THE INDUSTRY
The industry which we have selected for our project is ‘Plastic Pipe Industry’
PVC & Plastic Pipes are essential in sectors such as Agriculture, Water and Sanitation,
tube wells for Irrigation, drinking water, ducting, both electrical and Drainage, by the
general masses of Pakistan as well as Government Departments including the Housing
& Urban Development / Public Health Engineering.
 Water and Sanitation Agencies for their vital project of public importance.
INTRODUCTION OF THE ALIF INDUSTRY
Alif Industry is situated at the manga raiwind road. That area is the hub of the
industry. A group was born in 1958 as traders. After 49 years, in 2007 that group
established themselves as Alif industry. Alif industry take a start with manufacturing
of polymer production. At that time the area of Alif industry was 45000 square
meters
Alif industry is one of those companies which are known in the market due to their
quality products because due to very first day of business, the main focus point of the
management was quality. Due to high quality products, Alif industry has captured a
significant amount of market share in few years.
INTRODUCTION OF THE ALIF INDUSTRY
Vision
To become the innovator and standard manufacturing company for the UPVC,
PPRC Pipes & Fittings industry providing advanced and quality products to
satisfied customers through constant improvement driven by the reliability,
teamwork and inspiration of our people
INTRODUCTION OF THE ALIF INDUSTRY
Mission
We at ALIF’s PPRC PIPES & FITTINGS continually improve exploiting quality practices
and employee involvement to manufacture environment friendly, energy saver, long
lasting and rustles Pipes & Fittings that result in customer and employee satisfaction.
INTRODUCTION OF THE ALIF INDUSTRY
Competitors
Popular Pipes
Jamal Pipes
BBJ Pipes
 UPVC Pipe & Fittings
HDPE Pipe & Fittings

PRODUCTS MDPE Pipe & Fittings

PPRC Pipe & Fittings
PPRC Hygiene Pipe & Fittings
PPRC Silent Pipe & Fittings
Garden Hose
SUPPLY CHAIN STRATEGY
Alif Industry focusing upon efficient supply chain strategy, in other words we can say
that “Make to Stock”
Primary goal: Providing finished good at lowest cost.

Product design strategy: Exploit performance at a lowest product cost.

Pricing strategy: Lower margins

Manufacturing strategy: Minimize costs through high utilization.

Inventory strategy: Reduce inventory to lower cost.

Lead-time strategy: Reduce, but not at the expense of costs.

Supplier strategy: Select based on cost and quality.

CORE PROCESSES OR LEVEL OF SCM
Supply Chain process
Plan
Source
Make
Deliver
Return
PLAN
Before making our product, we Plan “what resources, information, products, and/or
services are needed to support the supply chain of our company”. While planning, we
also have backup plan which we consider in a way if demand certainty and
competition of time horizon occurs.
SOURCE
Sourcing is used for purchasing raw materials and services required for completing
and finalizing the product. Procurement should be purchase lowest priced raw
materials and services of highest quality.
MAKE
Raw Material

The manufacturing process comprises of the following main steps:

Material handling and Storage
Mechanical Pretreatment
Mechanical Pressing
Finish good handling
CONT.…
A) Raw material handling and storage
The material for the pipes is received from suppliers and stored material up to the
requirements of the unit. All the material stored at one place and regularly pick the
material from warehouse store
B) MECHANICAL PRETREATMENT
Material is mixed with the chemicals and makes a mixer. Then that mixer is inserted in
the machines which give the final shapes to the products. Four types of product
developed and these are different in their die meters.
PROCESS FLOW CHART

Weighing
Mixing
Ingredients

Extrusion Feeding

Cutting Dispatch
CONT.….
C) MECHANICAL PRESSING
At this stage the mechanical compression is done. Then through the further
manufacturing process products are developed in the final shapes. The prices of the
material are high. Material is used according to the requirements.

D) Finish good handling

Finish goods are handled. Final goods are stored and sell at the market prices.
CONT.….
 SCRAP DETAIL
Issues Description

Electrical Problem Feeder Tripping, Over Load Tripping, Water Pumps problems

Mechanical Problem Cutter problem , Haul Off Slipping

Mixing Problems Wrong Material Feeding, Hopper Empty, Hot Material

Color Change Color Change during production

Process Scrap All Machine Size change, Startup & Shutdown

Printer Ink Printer not working properly

Shower Blockage Filter Blockage, Shower Blockage
SCRAP PERCENTAGE
Electri…
Stopper
9%
Socket Pulverized Mechanic…
4% 1%
Electrical
Mechanical
Mixing Mixing
23% Color
Process
Shower
Printer
26%
Shower
Color
Printer 1% Socket
1% Stopper
Process
26% Pulverized
DELIVER
Alif Industries deliver their finish goods through different modes of transportation.
Alif Industries often, contract with transporter to deliver the product toward its
customers and distribution centers.
Alif Industries have four distribution centers in Lahore.
Mehmood & Sons plaza is main distribution center of Alif Industry.
RETURN
Unfortunately, if defected finish product sent to be customer then they can return or
exchange it.
Customers can easily exchange the defective products from their distribution centers.
SUPPLY CHAIN DRIVER
There are six drivers following as:
 Facilities.
 Inventory.
 Transportation.
 Information.
 Sourcing.
 Pricing.
FACILITIES
Layout strategy of the company:
Layout strategy of the company is very good. Where every process machine is
organized in a good manner as products move from one process to another in a
sequence and hence completed. The completed products are then moved towards the
packing area which is situated in the middle of the hall that is why it is easily
accessible for the manager and for the owner to have a look on the finished goods.
Then the packed goods are moved to the warehouse which is near to the packing
area. Warehouse also has a gate outside the building from where the goods are
loaded into the containers.
LAYOUT MAP OF ALIF INDUSTRY
LOCATION STRATEGY
The company is situated 4 Km from the main city and also on the main road which is
very good strategy because containers can easily enters into the factory without any
traffic jam on the road.
As the factory is just 4 km from the main city so it is very much easy for the
employees to reach on time and easily because the local transport is available on
that road
INVENTORY
Raw Material
Work in Process
Finish Goods
Are called inventory
STORAGE DECISION
Alif Industry have a committed storage as everyone has his own storage area. They
have separate storage for each product like PVC has a separate storage from their
Pipe products.
It is helpful for the employees to store products and also easy at the time when
goods are loaded into the containers and trucks.
TRANSPORTATION
Alif’s uses different type of logistics to move their raw material or finished products.
Mostly uses own transportation and contracts with different transporters.
INFORMATION
Alif’s analyzes the data regarding inventory, transportation, facilities, customer
orders and funds and then improves the company’s performance to make the
company more efficient and responsive; this analysis also helps the business to
understand the customer.
SOURCING
Alif’s Sourcing is used for purchasing raw materials and services required for
completing and finalizing the product.
Insourcing and outsourcing
The complete production is produced by the company itself. The cutting, Labor,
printing, each and every process is done by the company itself.
PRICING
Alif’s provides the quality products to its customers at low prices. Mostly compare the
prices with Popular pipes.
PROCESS STRATEGY
It is a strategy which shows how an organization converts its raw material into
goods or services.
There are four type of the given strategy shown as below:
Product focused strategy
Process focused strategy
Repetitive strategy
Mass customization strategy
PRODUCT FOCUS
Alif is working on this type of strategy because company focuses upon environmental
changes and its competitors.
 It prefers high volume and low variety it is also known as continuous process. They
could be goods or services both. But low variable cost results in high facility
utilization. It is a continuous and long-term process.
Mostly uses less skilled labor
VALUE CHAIN OF ALIF INDUSTRY
PROBLEM IDENTIFICATION
Warehouse: Alif Industry don’t have separate warehouse to put raw material.
Lack of machinery: As you see there are not much machinery to perform general
task, labor have to take a raw material to the boiler.
No safety measures: Labor are performing their task without any precautions.
Packing final product: This activity is also done manually. If they use specific machine
for this process then again they will save their time and also bear less labor cost.
Lack of Engineers: Alif industry have just five Polymer Engineers, it’s a main
drawback by the company. Un Qualified Supervisors handle the production and in
result company faces much loss and above average scrap.
CONT.….
Employee turnover: Alif did not provide Pick & drop facility to its labor, so
employee turnover is 60% per month. New labor is Untrained and company faces
loss in form of scrap
No Supply Chain Manager: Alif Industry don’t have any Supply Chain Manager to
perform supply chain activities.
Electricity Issues: Company uses high cost generators, power backup issues
RECOMMENDATIONS
Provide safety measures to their labor.
They have to use new machinery for less time consuming and which also lead to less labor
cost.
Recommends that companies establish a strategy to reduce the impacts of plastic, including
setting targets with deadlines.
Raise awareness of the risks and opportunities of plastic at executive board level.
Commit to reducing the environmental impact of plastic and set targets with deadlines to
ensure this goal is achieved.
Innovate products and processes to increase resource efficiency and recycling of plastic.
Provide Safety measures to their employees
They have to buy a ware house for safe keeping of inventory.
CONCLUSION
Alif Industry is the manufacturer of UPVC, PPRC Pipes & Fittings with the brand name
of Turk Plast. Turk Plast is second largest brand of PVC pipe in Punjab. It provide the
best service and quality within the industry, manufacturing facilities, logistically, and
commitment to the needs of customers. It’s B2B. Being an ISO 9001-2000 certified
company; it have already started & extended its efforts to the Total Quality
Management program for the benefit of the organization itself, its members & society
as a whole.
Alif is performing all supply chain activities to better serve to the companies as
compare to its competitor. Company did not limit the concept of product quality, test
specification “ability for use” of any product manufactured, while insuring that it need
ethical and regulatory requirements.