CHAPTER 1

INTRODUCTION

1
 CHAPTER 1
INTRODUCTION

INTRODUCTION
Supply chain management (SCM)
Supply chain management is management of a network of interconnected business involved
in the provision of product and service packages required by the end customers in a supply
chain. Supply chain management spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point of origin to point of consumption.
Supply chain management problems:
Supply chain management must address the following problems:
 Distribution Network Configuration: number, location and network missions of
suppliers, production facilities, distribution centers, warehouses, cross-docks and
customers.
 Distribution Strategy: questions of operating control (centralized, decentralized or
shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking,
direct store delivery (DSD), closed loop shipping; mode of transportation, e.g., motor
carrier , including truckload, less than truck load, parcel; railroad; intermodal
transport, including trailer on flatcar (TOFC) and container on flatcar (COFC); ocean
freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and
transportation control (e.g., owner-operated, carrier, common carrier, contract carrier,
or third party logistics.
 Trade-Offs in Logistical Activities: The above activities must be well coordinated in
order to achieve the lowest total logistics cost. Trade-offs may increase the total cost
if only one of the activities is optimized. For example, full truckload (FTL) rates are
more economical on a cost per pallet basis than LTL shipments. If, however, a full
truckload of a product is ordered to reduce transportation costs, there will be an
increase in inventory holding costs which may increase total logistics costs. It is
therefore imperative to take a systems approach when planning logistical activities.
These trade-offs are key to developing the most efficient and effective Logistics and
SCM strategy.

2
  Information: Integration of processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory, transportation, potential
collaboration, etc.
 Inventory Management: Quantity and location of inventory, including raw
materials, work-in-process (WIP) and finished goods.
 Cash-Flow: Arranging the payment terms and methodologies for exchanging funds
across entities within the supply chain.
Supply chain execution means managing and coordinating the movement of materials,
information and funds across the supply chain. The flow is bi-directional.

IMPORTANCE AND SIGNIFICANCE OF THE STUDY

Supply chain management addresses the management of materials and information across the
entire chain from suppliers to producers, distributors, retailers, and customer. In the past few
decades scholars gave ample attention to about the supply chain management. Traditionally,
each company performs on purchasing, production and marketing activities independently, so
that it is difficult to make an optimal plan for the whole chain.

Supply Chain Management is the important part of any organization. Without SCM that
organization not becomes successful.. If the companies that want to improve their competitive
position by reducing their order-to delivery cycle are looking to supply-chain management to
help them to achieve that goal. Because SCM encompasses all processes involved in
producing and delivering a product to the customer, it offers the opportunity to identify
bottlenecks that can slow down activities along the entire supply chain. That’s why I have
selected that topic for my project.

RATIONALE OF THE STUDY

Roughly speaking, research on supply chain management has been mainly focused on three
major issues. One is the behavior of information flow; the second issue deals with inventory
management; the third issue is oriented to planning and operation management. In this paper
the first & third issue namely information flow and planning and operation management will
be discussed. The author will follow the phases of standard operating procedure of supply

3
chain management in each department and planning parameters of each department will be
discussed.

FUTURE SCOPE OF THE STUDY

 Supply chain management is integral part of any organization which has
helped in reducing production cost which increase the overall economy of the
organization.
 Our research has limited to RAYMOND TEXTILE LIMITED
CHHINDWARA DIVISION.
 We have discussed about supply chain management within the organization.
 The research is from the current year.

4
 CHAPTER 2
RESEARCH METHODOLOGY

5
 CHAPTER 2
RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

The objectives of the project is as follows
1. To analyze supply chain management at Raymond Textile Division
Chhindwara.
2. To analyze the distribution chain of Raymond Textile Division Chhindwara.
3. To analyze product distribution process.
4. To analyze performance measurement.
5. To analyze warehouse management.
6. Supply chain management provide in depth analysis of factors affecting chain
management

HYPOTHESES
Hypothesis 1
 Null Hypothesis: A proper supply chain management system is not used at
Raymond Textile Division Chhindwara.
 Alternate Hypothesis: A proper supply chain management system is used at
Raymond Textile Division Chhindwara.

Hypothesis 2
 Null Hypothesis: A proper supply chain management is not provide in depth
analysis of factors affecting chain management at Raymond Textile Division
Chhindwara.
 Alternate Hypothesis: A proper supply chain management provide in depth
analysis of factors affecting chain management at Raymond Textile Division
Chhindwara.

6
RESEARCH METHODOLOGY
Research Design
The research design will use for this study is of the descriptive type. Descriptive research
studies are those studies which are concerned with describing the characteristics of a
particular individual or a group.

REASEARCH SAMPLING
Sampling Unit – Raymonds Ltd. Boregaon. Chhindawara
Sample size : 100 employees
Data Collection Method
Published annual reports of mill for the relevant periods have been used extensively.
Apart from the published reports, principles, practices and techniques of inventory
management have been collected through interviews with the executives. Also the
structured questionnaire filled up by the employees

Primary Data Collection

Primary data is the data which is collected by the researcher directly from his own
observations and experiences. For example, if the researcher conducts a survey for the
collected of data then it is known as primary data.
Primary data are those data which are collected for the first time, taking a sample,
representing a population. It is not a published data, it is problem specific data
collected by the researcher, first time. When primary data is published by researcher,
it becomes the secondary data for everybody, other than the researcher. Commercial
sources, including commercial agencies, such as advertising agencies and marketing
research agencies. Data collected by an evaluation team specifically for the evaluation
study.
 Collection of data is based on interaction with employees & managers of
Raymond Textile Division Chindwara.
 Collection of data is based on interaction with HOD of SCM department of
Raymond Textile Division Chindwara.

7
Secondary Data Collection:
Secondary data are those data, which are already published. It may be useful for many
other people than the researcher who has published it.
 Secondary data has been collected from magazines of Raymond Textile
Division Chhindwara.
 Secondary data has been collected from various bulletins, publications, books
and Internet.

8
 CHAPTER 3
COMPANY PROFILE

9
 CHAPTER 3

COMPANY PROFILE

OVERVIEW OF RAYMOND LIMITED

The Raymond Group was incorporated in 1925 and within a span of few years,
transformed from being an Indian textile major to a global conglomerate.
The Raymond Limited was established in September 1925 to acquire the Woolen
Mills in T h a n e k n o w n a s WADIA WOOLEN MILLS; it was managed by E. D.
Sassoon & Co. Until November 1944 when the entire share holding was acquired by
JAGGILAL KAMALPAT SINGHANIA of Kanpur, subsequently J. K. Trust Bombay, acted
as managing agents. There after the name was changed to Raymond Woolen Mills Limited.
In late 1994, the “Raymond Woolen Mills” was changed to “Raymond Limited”.
Traditional product lines were discounting. High quality becomes a numbers of
watchwords and the diversification program got head start. Non traditional blends
of natural and manmade fabrics were introduced back by sound research &
Development. This resulted in greater consumer satisfaction both at home and
abroad.
The idea of J& K was to develop an organization with a diversified product line. Over the
year the organization grew in structure and nature. To facilitate better involvement of the top
management in the organization effort, the J. K. Organization was divided into
three zones i.e., Western, Central and Eastern. The Raymond Limited in Chhindwara is
a part of Western zone.

10
J K GROUP COMPANIES

The subsidiary companies of Raymond Limited are as follows:

 Raymond Apparel Limited

Raymond Apparel Ltd. has in its folio some of the most highly regarded
apparel brands in India – Raymond finally crafted Garments, Monzani, Park
Avenue for men & women, Color Plus for men & women, Parx, Be: and Zapp!
and NottingHill.
 ColorPlus Fashion Ltd.
ColorPlus is among the largest smart casual brands in the premium
category. The company was acquired by Raymond to cater to the
growing demand for a high end, casual wear brands in the country for men and
women.
 Silver Spark, Apparel Ltd.
A garmenting facility that manufactures formal suits, trousers and jackets. Regency
Textiles Portuguesa Lda.
A facility set-up in northern Portugal bordering Spain, in Caminha
for manufacturing suits, jackets and trousers.
 EverBlue Apparel Ltd.

A state-of-the-art denim garmenting facility.

 Celebrations Apparel Ltd.

A facility set-up for the manufacture of formal shirts.

 J. K. Files & Tools

A leading player in the Engineering files and tools segment and
t h e l a r g e s t producer of steel files in the world.

 Ring Plus Aqua Ltd.

11
 A leading player in the engineering automotive components.
 J. K. Helene Curtis Ltd.

A leading player in the grooming, accessories and toiletries category.

 J. K. Investo Trade (India) Ltd.

JKIT is an investment company registered with Reserve Bank of India as Non-

Banking Financial Company.

JOINT VENTURES OF JK GROUP

 Raymond UCO Denim Pvt. Ltd.

The manufacturers and marketers of denim fabrics.

 Raymond Zambaiti Pvt. Ltd.

A Greenfield facility manufacturing high value cotton shirting.

 Gas Apparel Pvt. Ltd.

Our joint venture with Grotto S. P. A. launched the highly successful

‘GAS’ brand in India.

 J. K. Ansell Ltd.

The manufacturers and marketers of Kama Sutra condom and Surgical Gloves.

 J. K. Talabot Ltd.

12
 Our joint venture with MOB Outillage SA, manufacturing files and rasps
for international markets.

RAYMOND BRANDS

RAYMOND:
For over 80 years, Raymond is counted as one of the world’s premier manufacturers
of worsted suiting fabric in fine grade wool; in the same league as the finest that Europe has
to offer.
Today, the Raymond product range includes pure wools, wool blended with exotic fibers like
camel hair, cashmere and angora and innovative blends of wool with
p o l y e s t e r , l i n e n a n d s i l k . Offering suiting and trousering fabric for all occasions and
needs.
Our domestic distribution is spread far and wide with more than 30,000 outlets that stock and
sell our wide range of fabrics.
Fine products, wide range, superb distribution and intelligent advertising support have helped
the company gain a dominant share of the market. No wonder, premium labels from the
world’s fashion capitals prefer Raymond.

MANZONI:
Manzoni is a luxury lifestyle brand offering the discerning customer a super premium range
of formal wear and sportswear including shirts, suits, trousers, jackets, ties and
leather accessories. Our exclusive designs provide customers the best in contemporary
international style and luxury. Each garment is crafted from the most exotic cotton silk, linen
and superfine wool, the best-in-the-world linings, interlinings and threads sourced from
around the globe.

PARK AVENUE:
Launched in 1986, Park Avenue is today, India’s most admired formal wear brand. It offers
stylish and innovative wardrobe solutions to gentlemen for all their dressing
needs, be it Business, Evening Leisure, Travel or Heritage Wear. The brand has received

13
several awards. Recently, it had the honor of being the ‘Most Admired Brand’ at the Lycra
Images Fashion Awards 2007 for the third consecutive year. Crossing the gender divide, Park
Avenue launched ‘Park Avenue Woman’ - a complete range of Business Wear for
women. ‘Park Avenue Woman’ is designed specially for the working women
professionals of today.

COLORPLUS:
ColorPlus is one of India’s premium and most respected casual wear brands offering
customers a range of shirts, trousers, knits and survival gear. ColorPlus
constantly innovating the processes and technologies which offering the buyers new
world of comfort. Some of the technological innovations it is well known for;
include thermo-fused buttons, golf ball wash, soft jeans, wrinkle free technology,
stain-free fabric and the cone dyed technique. Adding new color now to the woman’s
wardrobe, ColorPlus recently launched ColorPlus Woman – An exclusive range of
smart-casual clothing.

PARX:
Parx is a ’premium casual lifestyle brand bringing customer a range of stylish semi-forma
land casual cloths that reflects the easy, relaxed attitude of the energetic 22-30 years old.
Parx was launched in 1999 to cater to the smart and fashionable clothing segment.

ZAPP! :
The burgeoning children’s wear market has now turned stylish with zapp!- our
range of stylish and fashionable kids wear. The brand brings 4-12 years a wide range of
clothes, accessories, bed and bath line and more. The first zapp! store has been launched in
Ahmadabad with ten more on their way for kids across the country.

NOTTING HILL:
Notting Hill reflects style and manifests originality of today’s fashion-conscious and
discerning young professional at an affordable price. The brand collection features a
spectrum of men’s lifestyle product comprising of suits, shirts, trousers, jeans, t-shirts and
also accessories like ties, handkerchiefs and socks.

14
HOME BE:
HOME is a specialty multi brand Home Retail Chain that present elegant, soft
home furnishing & accessories which are sourced from across the globe from
reputed labels (private &international). Spanning from a mid premium pricing
range, Be : HOME provides an assortment of quilts, blankets, robes, apparels,
wall decor , vases, candles, gourmet cooking range and much more under one roof
to provide the perfect look for your home.

THE RAYMOND SHOP:

The Raymond shop is premium retail store offering complete wardrobe solution for men,
which includes top-of-the-line brand Raymond Manzoni, Park Avenue, ColorPlus and Parx.

OVERVIEW OF CHHINDWARA UNIT

Raymond Limited Chhindwara is the Flagship Company of J. K. Groups (Western

Division). It produces high quality polyester wool fabric and polyester viscose blends fabric.
It began operation on 1st April, 1991 to cater the growing demand of premium suiting the
plant is at a distance of 57 kms. from Nagpur and 70 kms. From Chhindwara on Nagpur-
Chhindwara Road. The hundred acres plot stood as a pioneer in the Socio-economic
development of this region.
Raymond limited (textile division), Chhindwara is committed to manufacture and supply high
quality polyester- wool and polyester – viscose blended suiting and furnishing fabrics and to
demonstrate excellence in environmental performance of all its activities. Products and
services on a continual basis in accordance with the requirement of ISO 14001:2004.
Raymond limited is committed to comply with all legal requirements of manufacture and
delivery of blended fabrics.
Raymond limited is particularly conscious of its potentials of impact on water use and quality
during the manufacturing operations as well as issues associated with transportation of its
products. It has therefore institutionalized sound environmental management system and
strategies including pollution prevention adoption of cleaner technologies , effective resource
management, waste avoidance and best operating practices. In particular, the company is

15
committed to optimize consumption of all resources including chemicals, water and
electrical energy. Specific objectives and targets are established, monitor and reviewed at
appropriate intervals in order to track and verify environmental performance.
Raymond limited shall strive to strengthen the awareness, skill, and competence of all its
employees and contractors.
The environmental policy is communicated to all persons working for and n behalf of the
organization and its available to all interested parties and the public.

VISIONS

 Be one amongst the top twenty Indian Business Groups in Terms of Market
Capitalization and Economic Value Addition.

VALUES

 Pursuit of Excellence
 Speed of Action And Response
 Realization of Human Potential
 Trust Worthiness

The list factors leading for the selection of this location are:-
1. Cheap Land.
2. Labor availability at cheaper cost.
3. Easy availability of power, fuel, and water.
4. Availability of land for expansion.
5. Easy transportation (because nearer to Nagpur which is well connected to roads, rail,
and airways.)
6. Market proximity.
7. 15% of subsidy on total cost of project subject to maximum of 15 lacs.
8. Sales Tax exempt for 7 years initially.
9. Entry Tax exempted for 5 years extended by another five years due to major
expansion.

16
 10. 5% subsidy in electricity charges subject to a maximum of 10 lacs per annum.
The plant is well equipped with the most modern machinery, which results in high efficiency
and productivity. Most important than machines are the man power, which is adequately
skilled and component. Within 3 years of starting, we had achieved over 90% efficiency
levels in the Spinning and weaving departments we are still maintaining it.
A SHORT RESUME OF CHHINDWARA U N I T

Vision : To be the worlds most admired worsted

suiting
Suiting company.

Mill : RAYMOND LIMITED

(Textile Division Chhindwara)
B-1 A.K.V.N. Kailash Nagar Borgaon
Tah- Saunsar Dist- Chhindwara (M.P.)

Location : Raymond Limited is situated in Borgaon

This comes under M.P. Audhogik Vikas
Kendra Nigam
Jabalpur.

Head Office : J.K. Organization

J.K. building, N. Morarji Marg, Ballard
Jalgaon
Mumbai 400038.

Raymond Limited
Plot no. 156/11, No.2 village Jalgaon
Ratnagiri (M.H.) 415612

Production commenced on : 1st April 1991

17
Works Director : Mr. VINOD PADMANABHAN

Product manufacture : Suiting polyester-wool, polyester-viscous

All wool, furnishing fabrics.

Area of the plot : 100 acre

Turn over : 600 crore

Our output : 11 lacs meter per month, on average 45000

meter/day.

Power Consumption : 1.65 lacs unit per day.

Water Consumption : 45 lacs litre per day

Coal Consumption : 258 metrics tones per day

Man Power : office- 265, staff- 428, sub staff- 38, workers-
3145

Readymade Brands : Park Avenue, Parx, Zapp, Colorplus.

18
Raw materials
 Wool:-
The Merino brand of wool is imported from Australia, and supplied as Topes by the
wool scouring & Grey combing department.
 Polyester: -
A man made synthetic fiber which is in the form of staple fiber or tow. There are three
verities- Normal, Sparkle &Low pill.
 Viscose:-
A regenerated cellulosic fiber, which is made from wood pulp. Generally it is dope
dyed by suppliers and is in fibrous form.
GODOWN FOR RAW MATERIAL
Here is three section of godown for keeping raw material.
 Raw material godown
 Top godown
 Waste godown.
RAW MATERIAL NORMS
 PSF – POLYESTER STAPLE FIBRE
 VSF – Viscose Staple Fiber
 TOW – Polyester Continuous Filament
 GWL – Greasy Wool
 SWL – Scoured Wool PROCESS MATERIAL (Top is a bundle of sliver conversion
of wool or Polyester TOW is a converted Top)
 TOP-Polyester
 TOP-Wool TOPOTHER MATERIAL:-
 FLEX TOP (Linen TOP)
 SILK TOP
 VISCOSE TOP
 LENRING MODEL TOP
 BLENDED TOP
 LENRING MODEL TOP
 ACRYLIC FIBRE
Details Of Raw Materials

19
 Department Raw material Weight

Combing dept. Greasy Wool 9.00 metric ton

Converter dept. TOW 6.50 metric
ton
SVSPG dept. PSF+VSF 5.00 metric ton
Dyeing dept. Wool TOP+Poly TOP 10.00 metric ton
Recombing dept. Wool TOP+Poly TOP 12.5 metric ton

Raw material godown receives the following material from Suppliers

Supplier Name
Materials
 RIL – Reliance Industries Limited TOW-
PSF Patanganga(M.S.)
Surat Gujrat.

 FRL- futura Fibres TOW-PSF-

TOP
Chennai.

 GIL-Grasim Industries Limited VSF-TOP

Nagda (M.P.)

 DAL- Dewarin Australia pvt. Limited Greasy

Wool

 CDDL- Compagnie Importine DeLaines Greasy

Wool

20
  BEAPL- BWK Elder Australia pvt. Limited Greasy
Wool

 RSA- Rantax S.A. Guruguay Greasy

Wool

 NV-NVJOS Vennestex (Belgium) Greasy

Wool

 SNSM- Socete Novvelle Textile Maclou France FLEX-

TOP

 AAT- Azad Agro Traders Kashmir Gressy

Wool

 ESL- Eastern Silk Limited SILK-TOP

Details Of Raw Material Consumption

Raw material consumption is 30-40 Ton

 Greasy Wool 8.90 Ton

 TOW 3.5 Ton
 PSF 3.10 Ton
 VSF 1.70 Ton
 Polyster TOP in & outside 8.5 Ton
 Wool TOP in & outside 5.5 Ton

Raw material consumption average is 23.50 ton/day.

Raymond is maintaining inventory of 30 days which is 680 ton/month.

21
PRODUCTION PROCESS

RAW MATERIALS

♦ Wool:
The Merino brand of wool is imported from Australia, and supplied as Tops by the
wool Scouring and Grey Combing department.
♦ Polyester:
A man made synthetic fiber which is in the form of staple fiber or tow.
There are three varieties – Normal, Sparkle and Low pill.
♦Viscose:
A regenerated cellulosic fiber which is made from wood pulp. Generally
it is dope dyed by suppliers and is in fibrous form.

The production operations at our plant are coordinated by the PRODUCTIONPLANNING &
CONTROL department. Its role is to gather information of all stock at various stages and
communicate with the different departments; so that production activities are
synchronized. We have six months order in advance and divide the production
activities bi-annually in unison with the market, and our JALGAON and THANE
units.
First in the sequence is the RAW MATERIAL GODOWN where the basic inputs procured
are stored, accounted for and intimated to the COMMERCIAL department. The first stage of
processing is DYEING. According to a dyeing plan set by the production planners, the
dyeing department is issued tops. Fabrics and yarn produced at further stages which are grey
or do not have the desired pigmentation are also dyed.
Some polyester is procured in the form of tows. These are cut and converted into
sliver form and converted into tops in the CONVERTER section. The material is
sent back to the raw material godown from where it is sent to the dyeing
department. Only after a perfect match with standard shades are the tops sent to the
RECOMBING department.

22
In the Recombing department tops of polyester and wool in sliver form are blended and
mixed to produce a uniform sliver (65% polyester & 35% wool). The processing ensures that
fiber is untangled. Straightened and parallel.
All there Tops (polyester and wool) are sent for spinning in the WORSTED SPINNING
department. The function of spinning is to form yarn fiber. The yarn made is wound on a
bobbin and is called cheese.

* Tops – roll of sliver

* Tow – roll of continuous film or filament of fiber
* Sliver – fiber in a rope like form.

Simultaneously polyester and viscose fiber is dispatched from the dyeing department and raw
material godown (grey i.e. Undyed) to the blow room or P/V SPINNING department where it
is mixed in proportion (67% polyester and 33% viscose). This mix is transformed
into sliver in the carding section which further processes and produces a poly-viscose
yarn.
All yarn is stored for intermediate purpose in a DOUBLE YARN ROOM from here the yarn
is issued to warping section of the WEAVING department. At this stage yarn is woven into
fabric. In the MENDING department this fabric is under scrutiny for any defects to
be identified and removed .Every meter of fabric produced is checked.
The next stage of processing is the FINISHING department. Fabric is washed
cleaned and subjected to mechanical / chemical operations with the aim of giving
the fabric a smooth regular texture, luster and anti-creasing effect. In the
FOLDING department, finished fabric is cut to proper length, wound and packed
properly.
In addition to this we have a PLUSH department where we manufacture FURNISHING
fabric by procuring yarns from outside.
The packed goods are stocked in the WAREHOUSE from where it is dispatch as per sales
note to respective dealers. This transfer is communicated to the SALES office.

23
 CHAPTER 4
THEORITICAL BACKGROUND

24
 CHAPTER 4

THEORITICAL BACK GROUND

Supply chain management (SCM)

Supply chain management is management of a network of interconnected business involved
in the provision of product and service packages required by the end customers in a supply
chain. Supply chain management spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point of origin to point of consumption.
Supply chain management problems:
Supply chain management must address the following problems:
 Distribution Network Configuration: number, location and network missions of
suppliers, production facilities, distribution centers, warehouses, cross-docks and
customers.
 Distribution Strategy: questions of operating control (centralized, decentralized or
shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking,
direct store delivery (DSD), closed loop shipping; mode of transportation, e.g., motor
carrier , including truckload, less than truck load, parcel; railroad; intermodal
transport, including trailer on flatcar (TOFC) and container on flatcar (COFC); ocean
freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and
transportation control (e.g., owner-operated, carrier, common carrier, contract carrier,
or third party logistics.
 Trade-Offs in Logistical Activities: The above activities must be well coordinated in
order to achieve the lowest total logistics cost. Trade-offs may increase the total cost
if only one of the activities is optimized. For example, full truckload (FTL) rates are
more economical on a cost per pallet basis than LTL shipments. If, however, a full
truckload of a product is ordered to reduce transportation costs, there will be an
increase in inventory holding costs which may increase total logistics costs. It is
therefore imperative to take a systems approach when planning logistical activities.

25
 These trade-offs are key to developing the most efficient and effective Logistics and
SCM strategy.
 Information: Integration of processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory, transportation, potential
collaboration, etc.
 Inventory Management: Quantity and location of inventory, including raw
materials, work-in-process (WIP) and finished goods.
 Cash-Flow: Arranging the payment terms and methodologies for exchanging funds
across entities within the supply chain.
Supply chain execution means managing and coordinating the movement of materials,
information and funds across the supply chain. The flow is bi-directional.

Activities/ functions

SUPPLY CHAIN
MANAGEMENT

MANUFACTURING LOGISTICS
MANAGEMENT MANAGEMENT

SALES & MATERIAL

DISTRIBUTION MANAGEMENT
MANAGEMENT

FIG. SUPPLY CHAIN MANGEMENT

Supply chain management is a cross-function approach including managing the movement of

raw materials into an organization, certain aspects of the internal processing of materials into

26
finished goods, and the movement of finished goods out of the organization and toward the
end-consumer. As organizations strive to focus on core competencies and becoming more
flexible, they reduce their ownership of raw materials sources and distribution channels.
These functions are increasingly being outsourced to other entities that can perform the
activities better or more cost effectively. The effect is to increase the number of organizations
involved in satisfying customer demand, while reducing management control of daily
logistics operations. Less control and more supply chain partners led to the creation of supply
chain management concepts. The purpose of supply chain management is to improve trust
and collaboration among supply chain partners, thus improving inventory visibility and the
velocity of inventory movement.
Several models have been proposed for understanding the activities required to manage
material movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Council. Another model is the SCM
Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be
grouped into strategic, tactical, and operational levels. The CSCMP has adopted The
American Productivity & Quality Center (APQC) Process Classification Framework a high-
level, industry-neutral enterprise process model that allows organizations to see their business
processes from a cross-industry viewpoint.
Strategic level
 Strategic network optimization, including the number, location, and size of
warehousing, distribution centers, and facilities.
 Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational improvements such
as cross docking, direct shipping, and third party logistics.
 Product life cycle management so that new and existing products can be optimally
integrated into the supply chain and capacity management activities.
 Information technology chain operations.
 Where-to-make and make-buy decisions.
 Aligning overall organizational strategy with supply strategy.
 It is for long term and needs resource commitment.
Tactical level

27
  Sourcing contracts and other purchasing decisions.
 Production decisions, including contracting, scheduling, and planning process
definition.
 Inventory decisions, including quantity, location, and quality of inventory.
 Transportation strategy, including frequency, routes, and contracting.
 Benchmarking of all operations against competitors and implementation of best
practices throughout the enterprise.
 Milestone payments.
 Focus on customer demand and Habits.
Operational level
 Daily production and distribution planning, including all nodes in the supply chain.
 Production scheduling for each manufacturing facility in the supply chain (minute by
minute).
 Demand planning and forecasting, coordinating the demand forecast of all customers
and sharing the forecast with all suppliers.
 Sourcing planning, including current inventory and forecast demand, in collaboration
with all suppliers.
 Inbound operations, including transportation from suppliers and receiving inventory.
 Production operations, including the consumption of materials and flow of finished
goods.
 Outbound operations, including all fulfillment activities, warehousing and
transportation to customers.
 Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.
 From production level to supply level accounting all transit damage cases & arrange
to settlement at customer level by maintaining company loss through insurance
company.

28
  Managing non-moving, short-dated inventory and avoiding more products to go short-
dated.
The key supply chain processes stated by Lambert (2004) are:
 Customer relationship management
 Customer service management
 Demand management style
 Order fulfillment
 Manufacturing flow management
 Supplier relationship management
 Product development and commercialization
 Returns management
Much has been written about demand management. Best-in-Class companies have similar
characteristics, which include the following: a) Internal and external collaboration b) Lead
time reduction initiatives c) Tighter feedback from customer and market demand d) Customer
level forecasting
One could suggest other key critical supply business processes which combine these
processes stated by Lambert such as:
a. Customer service management
b. Procurement
c. Product development and commercialization
d. Manufacturing flow management/support
e. Physical distribution
f. Outsourcing/partnerships
g. Performance measurement
h. Warehousing management

a) Customer service management process

Customer Relationship Management concerns the relationship between the organization and
its customers. Customer service is the source of customer information. It also provides the
customer with real-time information on scheduling and product availability through interfaces

29
with the company's production and distribution operations. Successful organizations use the
following steps to build customer relationships:
 Determine mutually satisfying goals for organization and customers
 Establish and maintain customer rapport
 Produce positive feelings in the organization and the customers
b) Procurement process
Strategic plans are drawn up with suppliers to support the manufacturing flow management
process and the development of new products. In firms where operations extend globally,
sourcing should be managed on a global basis. The desired outcome is a win-win relationship
where both parties benefit, and a reduction in time required for the design cycle and product
development. Also, the purchasing function develops rapid communication systems, such
as electronic data interchange (EDI) and Internet linkage to convey possible requirements
more rapidly. Activities related to obtaining products and materials from outside suppliers
involve resource planning, supply sourcing, negotiation, order placement, inbound
transportation, storage, handling and quality assurance, many of which include the
responsibility to coordinate with suppliers on matters of scheduling, supply continuity,
hedging, and research into new sources or programs.
c) Product development and commercialization
Here, customers and suppliers must be integrated into the product development process in
order to reduce time to market. As product life cycles shorten, the appropriate products must
be developed and successfully launched with ever shorter time-schedules to remain
competitive. According to Lambert and Cooper (2000), managers of the product development
and commercialization process must:
 Coordinate with customer relationship management to identify customer-articulated
needs;
 Select materials and suppliers in conjunction with procurement, and
 Develop production technology in manufacturing flow to manufacture and integrate
into the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process produces and supplies products to the distribution channels based
on past forecasts. Manufacturing processes must be flexible to respond to market changes and

30
must accommodate mass customization. Orders are processes operating on a just-in-time
(JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to
shorter cycle times, meaning improved responsiveness and efficiency in meeting customer
demand. Activities related to planning, scheduling and supporting manufacturing operations,
such as work-in-process storage, handling, transportation, and time phasing of components,
inventory at manufacturing sites and maximum flexibility in the coordination of geographic
and final assemblies postponement of physical distribution operations.
e) Physical distribution
This concerns movement of a finished product/service to customers. In physical distribution,
the customer is the final destination of a marketing channel, and the availability of the
product/service is a vital part of each channel participant's marketing effort. It is also through
the physical distribution process that the time and space of customer service become an
integral part of marketing, thus it links a marketing channel with its customers (e.g., links
manufacturers, wholesalers, retailers).
f) Outsourcing/partnerships
This is not just outsourcing the procurement of materials and components, but also
outsourcing of services that traditionally have been provided in-house. The logic of this trend
is that the company will increasingly focus on those activities in the value chain where it has
a distinctive advantage, and outsource everything else. This movement has been particularly
evident in logistics where the provision of transport, warehousing and inventory control is
increasingly subcontracted to specialists or logistics partners. Also, managing and controlling
this network of partners and suppliers requires a blend of both central and local involvement.
Hence, strategic decisions need to be taken centrally, with the monitoring and control of
supplier performance and day-to-day liaison with logistics partners being best managed at a
local level.

g) Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration
to market share and profitability. Taking advantage of supplier capabilities and emphasizing a
long-term supply chain perspective in customer relationships can both be correlated with firm
performance. As logistics competency becomes a more critical factor in creating and

31
maintaining competitive advantage, logistics measurement becomes increasingly important
because the difference between profitable and unprofitable operations becomes more narrow.
A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance
measurement realized improvements in overall productivity. According to experts, internal
measures are generally collected and analyzed by the firm including
1. Cost
2. Customer Service
3. Productivity measures
4. Asset measurement, and
5. Quality.
External performance measurement is examined through customer perception measures and
"best practice" benchmarking, and includes 1) customer perception measurement, and 2) best
practice benchmarking.
h) Warehousing management
As a case of reducing company cost & expenses, warehousing management is carrying the
valuable role against operations. In case of perfect storing & office with all convenient
facilities in company level, reducing manpower cost, dispatching authority with on time
delivery, loading & unloading facilities with proper area, area for service station, stock
management system etc.
Components of supply chain management are as follows: 1. Standardization 2. Postponement
3. Customization

Management components of SCM

The SCM components are the third element of the four-square circulation framework. The
level of integration and management of a business process link is a function of the number
and level, ranging from low to high, of components added to the link (Ellram and Cooper,
1990; Houlihan, 1985). Consequently, adding more management components or increasing
the level of each component can increase the level of integration of the business process link.
The literature on business process re-engineering, buyer-supplier relationships, and
SCM suggests various possible components that must receive managerial attention when

32
managing supply relationships. Lambert and Cooper (2000) identified the following
components:
 Planning and control
 Work structure
 Organization structure
 Product flow facility structure
 Information flow facility structure
 Management methods
 Power and leadership structure
 Risk and reward structure
 Culture and attitude
However, a more careful examination of the existing literature leads to a more comprehensive
understanding of what should be the key critical supply chain components, the "branches" of
the previous identified supply chain business processes, that is, what kind of relationship the
components may have that are related to suppliers and customers. Bowersox and Closs states
that the emphasis on cooperation represents the synergism leading to the highest level of joint
achievement (Bowersox and Closs, 1996). A primary level channel participant is a business
that is willing to participate in the inventory ownership responsibility or assume other aspects
of financial risk, thus including primary level components (Bowersox and Closs, 1996). A
secondary level participant (specialized) is a business that participates in channel
relationships by performing essential services for primary participants, including secondary
level components, which support primary participants. Third level channel participants and
components that support the primary level channel participants and are the fundamental
branches of the secondary level components may also be included.

33
 CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

34
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

STUDY AND ANALYSIS

SUPPLY CHAIN MANAGEMENT (SCM) AT RAYMOND LIMITED

CHHINDWARA
At Raymond ltd. Chhindwara , SCM department is also known as Production Planning and
Control department. The production operations are coordinate by this department. Its role is
to collect information of all stages and communicate with the different departments, so that
activities bi- annually in unison with the market, and their JALGAON and THANE units.
ORGANISATION CHART

G. M. (PLANT
INCHARGE)

G. M. (WORKS)

MANAGER
(HOD)

35
 DYR SCM
DEPARTMENT

ASSISTANT
MANAGER(01)

S.O. (01)

STAFF- S3 (04)

STAFF- S2 (04)

STAFF- S (02)
)

SUB STAFF-
(01)

SCM OPERATION FLOW CHART

ORDER RECEIPT FROM

THANE SCM

ORDER ACCEPTANCE BASED ON

CONSTRAINTS

PROCESSING OF SC/SIM AND GENERATION OF

DYEING PLAN, CIRCULAR, WARPING, DOUBLE
YARN, STATEMENT & PIECE TICKETS

MAKING
ISSUING NECESSARY MANUFACTURING ORDERS NECESSARY
TO THE CONCERNED DEPARTMENTS INCLUDING CHANGES IN
JALGAON MANUFACTURING
PRIORITY AS PER
INSTRUCTION FROM
KEEPING NECESSARY FOLLOW UP WITH THANE
CONCERNED DEPARTMENTS & JALGAON TO
ENSURE TIMELY DELIVERY

36
RESPONSIBILITY AND AUTHORITY

Manager (HOD)
 Receiving program from THANE, issuing Mfg. Programs as per different blends &
counts to dyeing in co-ordination with all subsequent department to ensure timely
delivery of fabric to warehouse.
 Execution and follow up
 Yarn room execution
 Overall responsibility of yarn room & SCM

Authority – All decisions related to planning and execution.

Assistant Manager
 Execution and sale note follow up
 Civil fabric follow up.
 Yarn room execution & system development.
 Various system developments.
 Export, exclusive follow up.

Authority- self decision in minor changes, major through HOD.

S.O.- SCM
 plush planning, loading and follow up.

37
  Warping issue in absence of regular person.

Authority – decision in this area through HOD.

S3- SCM
 PD loading and follow up
 Fabric follow up
 Institutional follow up
 RAL, RML follow up

Authority – decision in this area through HOD.

S3 – SCM
 Warping order issue and follow up for NP Weaving.
Authority – Decision in this area through HOD.

S3 SCM
 DP preparation and PW yarn follow up for thane/jalgaon/chhindwara.
 Designing shade planning follow up.
Authority - decision in this area through HOD.

S3 SCM
 Warping order issue and follow up for GP weaving.
Authority- decision in this area through HOD.

S2- SCM
 Piece ticket preparation and follow up.
Authority - Decision in this area through HOD.

S2 – SCM
 DP preparation for jalgaon.

38
  CD yarn planning & follow up.
S2- SCM
 Monthly report thane, placing PV yarn order from outside & follow up.

S2 SCM
 DP & circular preparation of PW chhindwara & daily Top dyeing loading
Authority - decision in this area through HOD.

S1-SCM
 All daily & fortnightly report preparation & keeping account of grey fabric receipt
from jalgaon & outside
Authority- decision in this area through HOD.

S1-SCM
 DP and circular preparation for PV chhindwada
Authority - decision in this area through HOD.

Sub staff

 Distribution of necessary documents to the concerned department.

 Filling the necessary records as per the filling system maintained.
Authority – Maintaining of all records.

STANDARD OPERATING PROCEDURE

Purpose - planning & follow up of PV/ PW fabric + inventory control

 Receipt of Program Memo & Sales SIM from Thane, giving details about Quality &
Meters of fabric to be manufactured .
 Check Dyeing Capacity , spinning & weaving Loading for Program received
according to delivery asked .

39
  If Capacity is available, check for Raw Material for program received from Thane .
 If Raw material is not available, it is communicated to Thane SCM for procurement
of Raw Material along with postponement in delivery.
 If 2,3 and 4 are Ok, ask for Master card for Yarn order from Designing dept (This
applies only for New Qualities). Repeat qualities are manufactured as per previous
standards .
 After receipt of Master card from designing Dept all entries of Master card like
shade, job entry &preparation of circular Dyeing plan is done .
 Based on job entry, shade wise quantity is given to dye and subsequently delivered to
Recombing/Spinning. single & Double Year statement are given to spinning .
 After receiving the programs , our own spinning capacity is loaded first. Excess
requirement of PV yarn is compensated by placing outside order. (Lead period for
receipt of outside yarn is 45 days.) This depends upon program received against
delivery period asked and existing capacity to fulfill this requirement.
 Follow up with Dyeing, Recombing, and Spinning dept for maintaining Cut off Dates.
 Follow up with Commercial dept for Outside PV Yarn.
 After receipt of yarn form Spinning ( Own + Outside ), issue Warping & Weft Orders
to Weaving dept. Warping Statement is given to Weaving.
 Follow up with Mending Department for On time delivery of fabric.
 Follow up with Finishing Dept for on time delivery of fabric to Folding Department /
Warehouse.
 All daily report, weekly report, fortnightly, monthly report are send to Thane.
 RT follow up with Warehouse , Finishing , Dyeing , Folding & QC.
 Non Standard shade / New Quality Allotment as when required.
 Co – Ordinate with Designing dept for New Development of Export & Institutional
Orders.
 Co – Ordinate with sales department for sale note attendance.
 Plush planning and placing order for procuring yarn from outside party.

WORK INSTRUCTIONS

40
A) Dyeing Plan Preparation :

 E-mails are sent to thane SCM for requirement of manufacturing programs of next
month fabric delivery.
 Manufacturing programs comes from thane in following forms:
o E-mail (only program memo),
o Fax (master card of thane development and SC/SIM),
o Courier (original master cards & SC/SIM)
 Blend wise as well as SC/SIM/PRG memo wise program entry is done in register.
 Received program is checked for availability of Raw material. If raw material is
available, dyeing plan preparation is done. Non availability is informed to Thane
SCM vide weekly raw material requirement paper.
 Chhindwara designing master cards are separated from manufacturing memo and the
requirement of master cards is given to Chhindwara designing for yarn order.
 After getting master cards from designing, dyeing plan preparation start.
 Master card, shade and Job entry is done as per Master card and SC/SIM.
 In Shade entry, type of shade is entered fro separation in Dyeing and Spinning
 Shade wise priority report is generated and given to dyeing for lot splitting. This is not
applicable for P/V.
 After getting lots splitting memo from dyeing department, dyeing loading report is
prepared. Loading report not applicable for P/V.
 Grouping of shade is done based on all components of a quality, to move at same time
from dyeing to Recombing.
 Warping and double yarn statements are created. Single yarn memo is prepared after
checking the above statement
 For CD Shades, memo is given to Dyeing, Spinning, and Weaving & Yarn room for
necessary issue of white yarn, winding – rewinding & dyeing of CDShade.
 For dye-lines and shade cuttings of new shades, communication is done with Thane
SCM.
 Finally loading report, dyeing plan memo, warping and double yarn statements are
issued to concerned departments. Cuts off dates are decided depending upon size of

41
 program, program already running in production dept, availability of same count &
other constraints mention in Planning Parameters. Cuts off dates are taken in co-
ordination with concerned departments.
 In PV Spinning, Outside Spinning (job work) is done in case Own Spinning is unable
to complete required Spinning.
 Transfer of Plan for Dyeing of Tops / CD at Thane in case own capacity does not
fulfils the requirement.
 Fabric circular is issued to all concern department &Thane SCM, sales as a
confirmation of delivery.
 Non-availability of weaving sheet, healding sheet, and reed is communicated to Thane
SCM for the availability of the same.
 After issue of Dyeing Plan, flow material is monitored against Cut off dates &
necessary changes are made in planning in order to change priority if required or if
material is not moving as per planned lead-time.

B) Warping & Weaving Follow up.

Objective: - To issue Warping Order & maintain the Weft supply as per requirement.
 Report Daily Warping Status in terms of Beam Position to HOD.
 Collect Piece Tickets & Warping yarn statement from SCM for Warping issue &
Spinning follow up.
 Communicate with Weaving Planning Personal for Warping requirement as per
Qualities running on Loom.
 Check Spinning Production & prepare Warping Order as per Yarn issued by Spinning
Department.
 Inform Spinning Department regarding Steaming lot as per Warp requirement.
 Check warping order from designing Department before issuing to Weaving.
 Instruct warp boys to take out warping issue.
 Issue Weft yarn as per Warping issued to Weaving Department.
 Check for Weft replacement in case of shortage of planned weft yarn in co-ordination
with Designing Department.

42
  Follow up with spinning department for Warp & requirement as per delivery
schedule. Instruct concerned person in Spinning for urgent Weaving requirement.
 In case of urgent manufacturing, adjust Warping Order from current dyeing plan to
achieve set delivery.
 Entry of Run out DP according to Warping / Weaving Position & supply Run out yarn
list for consumption of yarn in stock lot quality by Designing dept.
 Plan for Outside Weaving, in case Own Weaving is unable to complete required
Weaving.
 Check that lead period is follow in Weaving Dept & old delivery material is given on
priority compared with new delivery material.
C) Mending, Finishing &Folding Follow up .

Objective : To follow the daily status of the fabric in the above department.

 Ensure that no piece in mending takes more than 3 days in Mending. Check date wish
pending report of Mending Department.
 Ensure that pieces having quality problem are taken on priority to avoid any further
delay &Menders are feed according to date wish receipt of fabric from Weaving dept.
 Ensure that Export , RAL ,RMG & institutional pieces are delivered well in time With
required quality from Mending department .
 Ensure that finishing get daily input of 40,000mtrs to give required output.
 Check product mix fed to Finishing Department & try to control any haven deviation
from standard product mix.
 Provide necessary dyeing assortment to Finishing Department so that material can be
taken out of scouring & Heat setting for Dyeing Department.
 Ensure that decision regarding pieces having quality problem are taken on priority by
Quality Control &are being implemented to maintain on time delivery.
 Check that finish mending is maintaining priority by taking Pieces according to their
receipt date.
 In finishing department, check that all Folding Rejection material is taken for
processing on priority &delivered back to Folding in 48 hours.

43
  In Folding department, check that all RT material from Warehouse is delivered back
in scheduled time.
 Give blend wish priority to Finishing/ Folding Dept ,in case any blend has poor
performance in sale note attendance.
 Provide list of Stain Resistance Qualities to Finishing Dept so those necessary
chemical can be indented in advance.
 Check Follow up of lead period in above three department against standard lead
period.

D) Piece Dyeing & Dyeing Laboratory follows up.

Objective: - Ensure Dyeing with minimum shade variation

 Issue Dyeing assortments to Dyeing department after availability of Grey pieces in

Finishing Grey room
 Provide Shade hangers of New Seasons to Dyeing Department
 Provide Shade cutting for Export, RAL, RMG and Institutional for exact shade
matching.
 Arrange for pot-matching of Exclusive Quality from Dyeing lab. Get it approved from
Product Department.
 Arrange for Sampling of Summer /Winter season booklets.
E) Warehouse

Objective : To expedite the goods

 Issued RT memo for goods to be take back for any correction / inspection.
 Daily sale note balance report is taken from system or by sales department or
warehouse for the balance goods required.
 Follow-up with chhindwara & jalgaon production department is done to expedite the
goods required as per sale note.

44
  Also sales note Analysis is done monthly with sales department.

F)Yarn room

Objective : Optimum inventory control, Housekeeping system, cost Control

 Yarn room receives the yarn from our own spinning, from outside party as per the
requirement.
 Yarn room also receives the material, which it has issued for cheese dyeing.
 These received yarns are stored & issued to respective department for warping as per
planning.
 Remnant yarn, damaged packages or yarn, which is not as per requirement, is sold
out.
 The yarn that is received in trolley from the spinning is stored in Bins.

G) Plush Fabric

Objective : To supply fault free plush fabric with the required design.

 E-mail are send to Thane Plush marketing, for requirement of manufacturing

programs.
 Manufacturing program is received e-mail.
 Program entry is done in the register.
 Yarn order is placed according to the program requirement. Some shade may also be
cheese dyed for which white yarn is procured from outside.
 Piece tickets are issued after receipt of master card from plush designing.
 Then the warping order is given as per the priority.
 Fabric follow-up is done to ensure priority. Pending status is given to sales Then on
weekly basis.
 Outside yarn follow-up is also to done.
 The issued of required material for weaving from the plush yarn room.

45
  Finishing follow-up is done to ensure timely delivery to the Plush ware house.

PLANNING PARAMETERS
Following parameters / Constraints are considered while planning for various Department.
 Raw Materials department
o Monthly requirement of polyester &Viscose Staple fiber is given to Commercial
department, depending upon the program received.
o Monthly requirement of polyester Tow and Wool is given to Thane as Per the
requirement and program received.

 Dyeing Department
o Top Dyeing
 Max loading 80 Lots per day. 12 more lots may be added from February
2004 end.
 There should not be 3 black shades of different at a time in dyeing.
o Fibre Dyeing
 Max loading 9 lots per day.
 Pastel / Light shade having chances of contamination are taken in CD
route.
o Cheese Dyeing
 Max loading 3 lots per day i.e. about 350 kg per day on three machines
allocated for it.
 Most of the shade are light which would otherwise cause contamination
through fiber or top dyed route.
 Line (755 blend) is taken Cheese dyed round irrespective of light/dark shades.
 In Case Cheese dyeing loading exceeds the given lot capacity the surplus
requirement is supplied from Then division.
o Piece Dyeing
Maximum Production per day of PW is 62 Pieces and of PV is 28 Pieces per
day.
 If the program exceeds the target then excess program is shifted to Next

46
 Delivery period.
 The production of PV pieces can be increased up to 40 at the cost of PW
pieces.
 Re-combing Department
 Max Production per day 10,500 kg.
 Delivery from dyeing is accepted In-group wish only.
 The weight of tge sliver is kept constant 20 gms. /mtrs.
 Spinning Department
o PW and Worsted spinning
 Count balancing is done at the monthly level. Our target count is 50 Nm (+/- 5
Nm is acceptable).
 If the program exceeds spinning capacity then the excess program is
postponed to next delivery period.
 Worsted department has three modules out of which one module is exclusively
for white. The white yarn requirement of Thane is satisfied through this
module. PW section has no such modules. In one module, six ring frames are
reserved for Pastel shades. This figure is subjected to very as per the order
received.
 Maximum machine that can run on fine count depends on PLY and TFO
machine availability.
 Maximum 2 Ring frames are allotted at a time for coarse counts per module.
 Medium and Dark shades are taken separately to avoid contamination.
 Different counts of same shade cannot be run at a time because of the mixing
problems.

o PV Spinning
 Count balancing is done at the monthly level. Our target count is 52 NM (+/-
Nmis acceptable).
 If the program exceeds spinning capacity then the excess yarn requirement is
covered by placing outside order or postponed to next delivery period.
 No. of Ring frame should not exceed 2 for coarse count.
 Maximum machine that can run on fine count depends on PLY and TFO

47
 machine availability.
 Medium and Dark shades are taken separately to avoid contamination.
 Different counts of same shade cannot be run at a time because of the mixing
problems.

o Outside yarn Order

 45 dots is lead period required for outside yarn order.

 Minimum lot size for outside yarn is 750 Kg per shade. usually up to 2/48 Nm
count is placed for outside loader.
 Minimum lot size Textures yarn is 200 Kg.
 Quality parameters for outside yarn order are given by Quality Control & yarn
is accepted only after being passed by Quality Control.
 Viscose yarn for selvedge requirement is placed according to each shade
consumption pattern of last six month.

 Weaving Department
o Pick balancing is done at the monthly level. average RPM is taken into
consideration for loading.
o If the program exceed more than target the excess program is shifted to next
delivery period.
o Minimum pieces that can be warped are three pieces per beam.

 Finishing Department
o Poly-wool loading should not exceed 50-55 lots per day(avg.lot size is 4-5 Pieces)
due to Rope scouring machine constraints.
o Target Gray receipt per day for finishing is around 40,000 meters.

Jalgaon Spining and Weaving

o Only PW program is given for Jalgaon spining.
o Tops for these requirement are supplied from Chhindwara as well as from Thane.

48
 o Daily 13,632 meters of grey fabric is expected from Jalgaon.
o Zinser machines are used only for spinning white yarn.
o Average count for dyed is 47 Nm and for white line is Nm(+/- 5Nm Is
acceptable).
Plush Fabric
o Minimum 60 days are required for the outside order.full consumption of yarn for
plush is through outside order.
o Minimum 300 maters of fabric length is desired for dobby and 150 meters for
Jacquard
.

In Short Job of Supply Chain Management Department Chhindwara

 Raw material preparedness and overall preparedness

 The main work under this is to get ready with all the material needed for the
Production process right from raw material to the finishing department which
Include- Raw material (wool, polyester & viscose) folding tag dyes &
chemicals, Special chemical packing material etc. Prior to release plans in
vector flow in production.
 Once checking is done for availability of all the items and everything is “OK”
then the plans get released.

 Dyeing loading

 Keep a watch on every aspect of dyeing department making them available

with all the resources raw material, vessel locks, lids, dyes & chemicals.
 Loading for effective capacity utilization based on vessel capacity.

 Spinning loading
 It is based on the number of counts and TPI means Coarseness and fineness
fabric.

49
  Average count is 56 for PW & 65 for PV, we have to keep a check that
Spinning department should make all the production according to the standard
set for this we have to see the maximum amount of output which can be
generated by the spinning department and the program follow up should be
done accordingly.
 As per TOC spinning department is capacity constraint resource (deciding
factor for output of the plant)

 Weaving loading
 It is based on the number of PICKS.
 We have to keep check that weaving department should make all the
Production according to the standard set
 We have to see the maximum amount of output which can be generated by the
weaving department and the program follow ups should be done accordingly.

 Buffer management in TOC

 The main work of buffer management is to check out the total number of day
consumed for each production order.
 TO check out the abnormalities which are happening in between the
Production flow.
 For this a meeting of Dyeing, Spinning, Recombing & SCM is done everyday
at 4 pm.
 Warp and Weft has to be maintained.
 Explore to handle crises with the help of TOC management.

 NPD follow up

 We have to maintain a close relation with designing department of the

New Product Development
 As per Cutting
 As per Order

50
  Sample loom productivity is maintained.
 Yarn buffer status for standard yarn pallet.

 MTA monitoring
 We have to have a look whether the required quantity of order should be
always ready with the warehouse. So that whenever necessary there should
not be any delay and order cancellation.
 Order are received from Company Owned & Company Operated stores
COCO shops and from whole sellers.
 We have always been ready with 1.5 times of finished products in the
warehouse.

 Warping order follow up

 Daily we have to release plan for 25000mts of warping to be done or 30-35

looms.

 Yarn loom management

 Yarn are required for Outside Weaving, Stock Lot, Designing, & own
Weaving.
 We have to check the production of the yarns and also maintain a smooth
movement of the yarns.
 Most important function here is to have Inventory Control that is to maintain
proper inventories at all time so that there should not be too excess or too
low inventories because it ultimately built up the cost.
 Replenishment of yarn to make MTA material.

 Cheese dyeing management

 The main function here is to get the desired output from the cheese dyeing.
 We have to have the 30-35 tones of decorative yarns for the fabrics.
 Yarn has been sent to Jalgaon/Vapi.
 White Yarn Planning has to be done for Cheese Dyeing.

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  MIS report preparation
 After all the preparation then comes the work of report preparation for the
management on monthly and yearly basis.
 Daily Production Report
 Monthly Production Report
 Yearly Production Report
 Board meeting preparation
 .Market wise status.

 Inventory control
 Last function is to be check out all the inventories for all the department.

DATA ANALYSIS

The data has been analyzed under certain conditions, which have been mentioned in the later
part of this research. The data analysis part constitutes of analyzing the collected data and
interpreting it for the convenience of the researcher and for better understanding of the data
analyzed.
Data Analysis comprises on following point:
1. Analysis of the Supply Chain Management System used at RAYMOND Ltd.

1. Has any previous research carried out on this topic by the company?

a) YES b) NO

52
 YES
20%

NO
80%

INTERPRETATION: I had asked above question to 10 people out of that 80% people said
NO, the company had not carried out on this topic. And remaining 20% people said YES, the
company had carried out on this topic.

2. How do you manage your supply chain?

a) JIT supply f) e-procurement

b) Subcontracting g) plan strategies
c) Benchmarking h) many suppliers
d) Use external consultants

53
 USE EXTERNAL CON-
SULTANTS
10%
BENCH MANY
MARK- SUP-
ING PLIERS
10% 9%
JIT
50%

PLAN
STRAT
EGY SUB-
9% CON-
TRACT- E-PROCUREMENT
ING 7%
5%

Interpretation: I had asked above question to 10 people out of them 50% people said we
manage our supply chain system using JIT. 7% people said we manage our supply chain
system using e-procurement. 5% people said we manage our supply chain system using
subcontracting. 9% people said we manage our supply chain system using plan strategies.
10% people said we manage our supply chain system using benchmarking.

3. How successful do you think is your company in managing its supply chain in general?
a) Not successful at all c) somewhat successful
b) Not successful d) very successful

54
 NOT
SUC-
NOT SUCCESSFUL AT ALL
CESS
FUL 9%
9%

SUCCESSFUL
18%
VERY SUCCESSFUL
64%

Interpretation: I had asked above question to 10 people out of them 70% people said
our supply chain system is very successful. 20% people said somewhat successful,
remaining people said not successful & not successful at all respectively.

4. According to you, who is playing an important role in your supply chain?

a) Manufacturer c) distributors
b) Suppliers d) others

55
 OTHERS
10%

DISTRIBUTOR MANUFACTURER
20% 40%

SUPPLIERS
30%

Interpretation: I had asked above question to 10 people out of them 40% people said
manufacture plays important role in our supply chain. 30% people said suppliers plays
important role in our supply chain. 20% people said distributor plays important role in our
supply chain. 10% people said other plays important role in our supply chain.

56
CHAPTER 6
FINDINGS

CHAPTER 6
FINDINGS

57
 Supply chain management has certainly contributed to various sectors of the
organization i.e. inventory, production, marketing and others.

 Supply chain management lead to increase in overall efficiency of the business.

 Supply chain management has reducing wastages of raw material.

 Supply chain management has reducing production cost.

 Supply chain management had maintained the proper balance between each
department.

58
 CHAPTER 7
RECOMMENDATION

CHAPTER 7
RECOMMENDATION

59
The following recommendations emerge from the study:
 From the above project study we can say that presently Raymond is using various
methods of SCM and also their implementation in Raymond is good but still there is
lot of scope to make the above methods effective and result oriented.

 SCM like JIT, MRP, ERP, and CMS will best suite the company environment.

 Raymond needs to make its supply chain management more effective by selecting a
good logistic company.

 There should be a feedback system after some period to check the result of SCM
improvement.

60
CHAPTER 8
CONCLUSION

CHAPTER 8
CONCLUSION

61
 By analyzing various data collected as above, it can be concluded that SCM has been
playing a major role in Textile industries for their better performance.

 Supply chain management has certainly contributed to various sectors of the

organization.

 Proper SCM are being processed in the organization which increase the overall
efficiency of the business.

 SCM is also beneficial for the society as it increase the employment.

 Proper SCM reducing production cost.

62
 BIBLIOGRAPHY

BIBLIOGRAPHY

Names of Books Authors

Supply chain management strategy, planning & operation Chopra, S and P.

63
Logistics and supply chain management Raghuram, G & N. Rang raj
Analysis of Manufacturing Enterprises N. Vishwanandam

Journals:
Raymond journal
Company manual

WebSites
www.google.com
www.raymond.com

ANNEXTURE
QUESTIONNAIRE

1. Has any previous research carried out on this topic by the company?

64
 b) YES b) NO

2. How do you manage your supply chain?

e) JIT supply f) e-procurement

f) Subcontracting g) plan strategies
g) Benchmarking h) many suppliers
h) Use external consultants
i) Other (specify) ______________________________________

3. How successful do you think is your company in managing its supply chain in general?
c) Not successful at all c) somewhat successful
d) Not successful d) very successful

4. According to you, who is playing an important role in your supply chain?

c) Manufacturer c) distributors
d) Suppliers d) others
5. Any comment for your supply chain management system?
_____________________________________________________________________
_____________________________________________________________________
______
6. Any suggestion to improve supply chain management?
___________________________________________________________________________
_________________________________________________

65