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Analysing Logistics And Supply Chain System In Oryx Metal Industry

Table of Contents

Acknowledgements. 4

Abstract. 4

Chapter 1. 6

Introduction. 6

1.1 Background of the Study. 6

1.2 Statement of Problem... 6

1.3 Objectives of the Study. 7

1.4 Research Questions. 8

1.5 Research Hypothesis. 8

1.6 Scope of the Study. 9

1.7 Limitations of the Study. 9

1.8 Significance of the Study. 10

1.9 Definitions. 10

Chapter 2. 11

LITERATURE REVIEW... 11

2.1 Introduction. 11

2.2 Team communication plan. 16

Chapter 3. 17

Methodology of Research. 17

3.1 Introduction. 17

3.2 Research Design. 18

3.3 Population of the Study. 19

3.4 Sampling Techniques and Sample Size. 19

3.5 Research Techniques and Validity and Reliable Testing. 19

3.6 Data Collection Techniques. 20

3.7 Data Analysis Technique. 20

3.8 Legal, Ethical and Social Issues. 20

Chapter 4. 22

Data Analysis and Presentation. 22

4.1 Introduction. 22

4.2 Present status of JUST IN TIME in Oryx. 28

4.3 Qualitative research analysis: Interview method: 30

4.4 Summary of the interview.. 37

Chapter 5. 39

Conclusion. 39

5.1 Introduction. 39

5.2 Summary of Findings. 39

5.3 Recommendations. 40

5.4 Future Research. 40

References. 42

 

 

 

 


 

 

In the first place, we are deeply indebted to the God for giving me the kind of life what we have this far and making us qualified to participate in this project.

We wish to place our thanks on record to the following gentlemen who had guided us all through this project, towards grand success.

First of all, our sincere thanks go to Dr. Deena for her extraordinary support and guidance in this work. Also, Mr. Ventkatesh and his staff members for the useful tips suggestions throughout the project, we remain

thankful.

Mr. Mansoor& Mr. Faustino, deserve our gratitude for their patience in correcting our errors, and useful recommendations.

Also, we are very thankful to all colleagues for their consistent encouragement throughout this project.

Last but not least, our respective families deserve our deep felt appreciation for constant emotional and physical support.

 

 

 

 

 

 

 

 

Supply chain management occupies a pertinent position in the value chain in any organization in the current market scenario. Oryx metal is a company that has been established in the Sultanate of Oman as a privately held entity. The company mainly is in the business of manufacturing of cargo trailers, car carriers, tankers, flat beds, pressure vessels and storage tanks, etc. The company presently follows traditional supply chain management in many areas with Just in Time being followed in a few. This study purports to understand and reflect the impact of implementation of Just in Time method of Supply Chain Management and study the impact of the same on the functioning and cost perceptions for the Organisation as well as the industry and Omani Economy. Data about two of the bill of materials was collected and analyzed, and an interview with the related staff was also undertaken to strengthen the study. This study was based more on observation and analysis rather than the usage of statistical models, essentially assuming the nature of the qualitative analysis. The main reason for a qualitative analysis that is owing to the company is privately held some data about cost could not be obtained from public forums/opens source data. Finally, the study led to the conclusions that Oryx has just debuted into the implementation of the Just in Time method of Supply Chain Management in certain areas. If planned in a detailed manner and implemented in diligent series the Just in Time method of Supply Chain Management would benefit the company as well as the Omani economy immensely.

1.1 Background of the Study

Supply Chain Management could be termed as the synergizing the efforts across various functions that operate in an integrated manner in an organization to create a smooth process for movement of materials within the business for value addition as well as the distribution of the value added materials onwards for sale to the prospective / existing customers. Supply chain management has grown beyond the frontiers of just being a mere facilitator of movement of items to an activity performed by Planned companies that result in enhancement of customer experience manifolds than it could be delivered. There are two main advantages of strong and apt supply chain management in a company. The first wing operates to minimize operational cost or to be best worded maximize operational ability and the second wing operates to optimize the customer experience that would contribute a long way in building the long term business relations with the company with its potential as well as existing customers. There are several methods that are followed in the supply chain management within an entity based on the internal working style, economic environment and geographical nuisances in the region of operations. These methods are also aligned with the long-term goals, vision and mission of the organization so as to enable achievement of the same. In this present study, in particular, the background of the analysis is based on a company named Oryx Metals that is basically into manufacturing of cargo trailers, car carriers, tankers, flatbeds, pressure vessels and storage tanks, etc., They fabricate metal sheets that are procured from the suppliers around the world, process them into the required / orders materials and then the products are delivered to the customers.

1.2 Statement of Problem

The company presently uses the traditional method of supply chain management that is a simple detailing of the process of obtaining raw materials processing and delivering the output. However, Just in Time could be explained as that principle of supply chain management by application of which the holding period of raw materials, work in progress as well as finished goods is necessarily reduced close to nil. This would enable the organization to save costs like rent and labor that are related to storage of materials at each stage of production thereby creating incremental benefits in the value chain of the company implementing the same. The catch in implementation of Just In Time is the near to accurate prediction of the requirement of raw materials and other items at each stage of production and a very streamlined process with respect to the entire value chain which starts with budgeting for the year ahead and continues even after delivery of the finished goods to the customer. The success of Just in Times extends beyond production planning even through customer relations, supplier relations, financial planning ensuring prompt payment and much more. It permeates through some functions in the organisation. The present dissertation projects the value chain existing in Oryx Metals with an objective analysis of an assumed JUST IN TIME implementation within the organization and the related impact. The main question that this paper purports to address would be the benefits derives if Oryx metals implement a Just In Time supply chain management system.

1.3 Objectives of the Study

The present day economic scenario around the world is in such a state that each dollar saved is considered to be a direct addition to the bottom line of the company. Every organization aims to create savings to the organization by continuous pruning of the value chain of the organization contributing towards the long-time goals of the organization.

1.   This study aims to add a tangible/objective angle to the prospective implementation of Just in Time techniques in Oryx metals limited.

2.   This involves the estimation of costs involved in implementing the JUST IN TIME method of SUPPLY CHAIN MANAGEMENT in Oryx Metals Limited.

3.   The measurability of such benefits would be monitored for them to be higher than the cost. The net benefits need to be justified as compared to the benefits that can be derived from a long-term by the company.

4.   After that similar schematics can be extrapolated to the other companies in Oman thereby acting as a contributor to the GROSS DOMESTIC PRODUCT of the entire economy.

Hence, in summation the objective of this study is to navigate through the Just in Time method of supply chain management and the possible benefits it might offer if implemented in Oryx metals limited in a short run as well as a long run. A secondary objective would be to try and extrapolate these probable benefits to other companies in Oman thereby estimating its impact on the economy.

1.4 Research Questions

The questions about this research have been aligned so as to fall in line with the objectives of the study. The research questions focus on three main aspects of the objectives of this research. The three main questions of this research are as enumerated below.

1-  Are there any specific advantages in the adoption of JUST IN TIME method of SUPPLY CHAIN MANAGEMENT that has been documented in the past?

2-  What are the monetary as well as non-monetary advantages that would be bequeathed to Oryx Metals Limited by the adoption of JUST IN TIME method of SUPPLY CHAIN MANAGEMENT?

3-  Can these act as reasons for the company to shift from the traditional system of SUPPLY CHAIN MANAGEMENT?

4-  Can this benefit be extended to other companies of varied scales existing in the Omani Economy?

5-  What would be the bottlenecks?

1.5 Research Hypothesis

This research is based on the hypothesis that the implementation of JUST IN TIME by the management of the Oryx Metals Limited would result in considerable monetary as well as other forms of value addition for the organisation on a small as well as long run in a synchronised fashion along with the value chain that presently exists in the organisation. The implementation of JUST IN TIME has the potential for improvement of the bottom line of the company as well as introduce sustainable SUPPLY CHIAN MANAGMENT practices in the organization.

 

1.6 Scope of the Study

This study is mainly based on the research data that has been collected about the field of study namely implementation of JUST IN TIME method of SUPPLY CHAIN MANAGEMENT. These research data would be collected from various studies that have been performed till date and used for understanding the benefits that arise from the implementation of this system. Objective data that is collected from the company relating to the cost structure as well as production models that presently exist in the organization for comparison with that of the prospective data after implementation of the JUST IN TIME system of SUPPLY CHAIN MANAGEMENT. This research will benefit many contacts, and most beneficial contact will be the Oryx Metals Limited, if the company implement the method, it will increase their profit and income plus it will make life easier for them in term of processing and demands. On the other hand, the omani economy, government, companies, and suppliers, will be provided with a wide background and an overall idea to start applying and implementing JIT. Lastly, this case study will be a reference and a guide for universities, colleges, students, and researchers.

Through the implementation of the Just in time (JIT) technique of supply chain management, the company is expected to become more efficient and competitive towards handling the supply chain network implemented by the business. Also, it is observed that a highly efficient system helps in lowering the costs associated with the manufacturing process thereby making the products of the entity more affordable to the clients or customers of the business as the benefit of cost reduction can be passed to the customers (Bookbinder and Dilts, 2016, p.121). Through this process, the company is expected to gain greater market share and competitive advantage.

1.7 Limitations of the Study

There are certain limitations regarding the data that can be obtained from the company as this happens to be a private limited company, divulging of detailed data is not a mandatory as per company law of the country. Also, the authenticity of the data obtained from existing research studies is taken to be established based on the credits and assertion by the respective publications of these research data. Data used in the studies are prima facie taken to be correct, and conclusions are drawn based on further analysis and relevant documentation.

1.8 Significance of the Study

The significance of the study is amplified for the need to improvise on the business schematics about supply chain and logistics become a very pertinent area in every business that is concerned with the production of tangible items using various raw materials. In an economic environment wherein every dollar cost reduction contributes directly to the improvement of value chain the implementation of JUST IN TIME method of SUPPLY CHAIN MANAGEMENT by procuring the items only when the actual need for the same arises in the production cycle is being adopted by many companies across the globe as a boon for cost management on a long run perspective. This study is significant as it extends beyond the borders of a single organization called Oryx Metals limited and can be extrapolated to many manufacturing companies across Oman thereby creating a synergised environment thereby leading to an improvised GROSS DOMESTIC PRODUCT for the economy as a whole.

1.9 Definitions

Supply Chain Management (SUPPLY CHAIN MANAGEMENT) could be defined as the flow of goods as well as services within the production environment of an organization extending from the point of origin/geography of procurement and terminating at the point of delivery to the prospective / existing customer of the organization.

1.   Just in Time (JUST IN TIME) denotes a method of supply chain management wherein the materials, as well as services that are an integral part of the production process, are delivered immediately before their respective requirement arises in the process.

2.     Gross Domestic Product (GROSS DOMESTIC PRODUCT) signifies the total culmination of goods and services that had been produced by a country / in an economy during a given calendar / financial year.

3.     Value Chain is the totality of processes that is implemented by any organization to add value to a raw material, article encompassing production, marketing, research and many other intercompany functions.


 

2.1 Introduction 

The main sources of literature about this research has been the direct details obtained from the company, the details about the competitors and relevant companies gathered from various online, magazine and published articles. Other technical details have been main referenced from published journals and peer reviewed articles. A detailed summation of the nature of literature review has been furnished earlier in this paper. The list of literature reviewed is as follows:

 

Refer to (Wisner and Tan, 2000) state that the arena of Supply Chain Management encompasses a wide network of the value chain within a given business environment such as production, procurement, information technology and accounting. However, the literature about related studies interlinking all areas and enumerating the importance of supply chain management and its various methodologies is still considered to be highly fragmented. However, in the recent past, the importance of SCM as an integral function related to other value chain participants has increased greatly. Just in time is especially enumerated as a time-based strategy by (Beamon 1998) who further elaborates that the effectiveness of the method can be best measured by the resources required,

 

Strategic and systematic coordination of the in the Evolution of Supply Chain Management pertaining to traditional business functions and the tactics across these business functions within a particular firm and across businesses within a supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer, 2001)

 

The literature review of areas that are related to supply chain management in the present as well as past decade exhibit a considerable spurt in the research as well as practical/objective studies in this domain. (Croom 2000)

 

According to (Ballou 2007). The project in planning, organizing and control the activities in the project like transportation, maintenance, order processing, purchasing, warehousing, etc. This is also helped us to solve few problems related in today's market. It also contributed and helped us in decision making and ideas utilized for strategic opportunities.

 

By evaluating and analyzing this book brought into focus the literature review of multiple stage supply of modeling chain and also aim a goal for future research in this plan of distribution,  logistics,  production, etc. (Beamon 1998) 

 

In the field of supply chain production informed logistics is among one of the latest technology in recent times like Just In Time which is every company has taken in their productive factor in all types of businesses. (Bookbinder and Dilts 2016)

 

Refer to (Chen and Paulraj 2004)Differents supply chain and factors to establish the key supply chain management builds conducive to advancing domain. It can also be utilized in different contents to improve or expand the conception and measurements to tests different theoretical models, overlay the way for theory constructing in SCM.

 

Effective and management of supply chain network aid the firms cut costs and improve the value of the customer.  It also gives the objects to control the people and process in a firm which facilitates the businesses to achieve and retain the competitive advantage by their SC. (Christopher 2016) 

 

According to (Croom, Romano, and Giannakis 2000)Instead to provide a critical theory dispute for the presentation of a framework for the classification of the review related to SCM. Publishing utilizing profited database from which the review is being categorized into content, and a methodology oriented criteria.

According to (Gao 2017) The character of the JIT inventory system in the growth of cash, property held in the manufacturing companies. Companies can shift from the traditional way to JIT and also switch their sources from inventory to cash to provide the transaction to the suppliers.

 

It introduces and enhances the different overall issues linked to environmental which means green. SCM performance analysis and also contributes the framework of study, design and evaluate the green supply chain management performance objects. ( Hervani, Helms, and Sarkis 2005).

The main sources of literature about this research has been the direct details obtained from the company, the details about competitors and relevant companies gathered from various online, magazine and published articles. Other technical details have been main referenced from published journals and peer reviewed articles. A detailed summation of the nature of literature review has been furnished earlier in this paper. The list of literature reviewed is as follows:

Ballou, R.H., 2007. Business logistics/supply chain management: planning, organizing, and controlling the supply chain. Pearson Education India.

Beamon B.M., Supply chain design, and analysis: models and methods, Int. J. Prod. Econs, 55, 281 294, 1998.

Bookbinder, J.H., and Dilts, D., 2016.Logistics information systems in a Just-In-Time environment.

Chen, I.J., and Paulraj, A., 2004. Towards a theory of supply chain management: the constructs and measurements. Journal of operations management, 22(2), pp.119-150.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Croom S., Romano P, and Giannakis M., Supply Chain Management: an Analytical Framework for Critical Literature Review, " European Journal of Purchasing and Supply Management, (6: 1), 2000, pp. 67-83

Fawcett, S.E. and Pearson, J.N., 2015. Requirements and benefits of implementing just-in-time manufacturing for small-firm manufacturers. Journal of Small Business Strategy, 1(2), pp.10-26.

Gao, X., 2017. Corporate cash hoarding: The role of just-in-time adoption.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.

Hervani, A.A., Helms, M.M., and Sarkis, J., 2005. Performance measurement for green supply chain management. Benchmarking: An international journal, 12(4), pp.330-353.

JavadianKootanaee, A., Babu, K.N. and Talari, H.F., 2013. Just-in-time manufacturing system: from the introduction to implementing.

Jitkrittum, W., Gretton, A., Heess, N., Eslami, S.M., Lakshminarayanan, B., Sejdinovic, D. and Szab , Z., 2015.Kernel-based just-in-time learning for passing expectation propagation messages. arXiv preprint arXiv:1503.02551.

Lambert, D.M., Cooper, M.C. and Pagh, J.D., 1998. Supply chain management: implementation issues and research opportunities. The International journal of logistics management, 9(2), pp.1-20.

Lancioni, R.A., Smith, M.F., and Oliva, T.A., 2000. The role of the Internet in supply chain management. Industrial Marketing Management, 29(1), pp.45-56.

Mentzer J. T., DeWitt V, Keebler K. S., Min S., Nix N. W., and Smith. C. D "Defining Supply Chain Management, "Journal of Business Logistics, (22: 2), 2001

Ruiz-de-Arbulo-Lopez, P., Fortuny-Santos, J. and Cuatrecasas-Arb s, L., 2013. Lean manufacturing: costing the value stream. Industrial Management & Data Systems, 113(5), pp.647-668.

Seuring, S. and M ller, M., 2008.From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), pp.1699-1710.

Tan, K.C., 2001. A framework of supply chain management literature. European Journal of Purchasing & Supply Management, 7(1), pp.39-48.

Wisner J. D. And K. C. Tan. Supply Chain Management and Its Impact on Purchasing, The Journal of Supply Chain Management, (36: 4), 2000, pp. 33-42

Yame, A., Ali, A., Jawad, B., Nasser, D.A.W.M. and Abro, S., 2016. Optimization of Lean Methodologies in the Textile Industry Using Design of Experiments. Optimization, 1, p.49871.

It is observed that supply chain management and a related term such as value chain management, network sourcing, and supply pipeline management have become topics of increasing interest across various industries, business management, and consultants. Further, reviewing the literature of previous articles have indicated that supply chain management is viewed as one of the central units that play a major role in seeking a competitive advantage for the companies.

Supply chain management is viewed as an integrative approach' that helps in delivering the products and services of a business to the ultimate customers, or the clients that establish a connection between the flow of raw materials till the final delivery of the goods is undertaken.

Moreover, the aim of supply chain management is considered as the process of building trust and exchanging appropriate information between the parties involved in a transaction. Thus the process of the supply chain management system is assumed to encompass various activities in the form of sourcing of the raw materials, extracting and processing the raw materials, undertaking to manufacture, assembling activities, ensuring distribution and retailing of the finished products to the ultimate customers of the business.

Also, it is observed from the previous articles on the topic of research that supply chain management is not only used regarding identifying the logistic activities associated with a business but also involves planning and controlling of material and information flow within and outside an organization. Some authors have identified supply chain management as a strategic and inter-organizational issue that helps in determining the structure of vertical integration within an organization.

Reviewing the literature associated with the Just In Time' model it is inferred that it is an inventory management model that help companies in increasing the efficiency of the business thereby reducing wastage of materials. Through the implementation of Justin Time (JIT) technique of supply chain management, the manufacturers are required to forecast the demand of the products accurately and reduce the inventory carrying costs.'

Various advantages have ben associated with the Just in time model of supply chain management. It is observed that through the implementation of JIT technique companies can keep the production schedule short which indicates swiftness in the production schedule. Also, through the implementation of Just in time method companies are benefitted by a reduction in the costs associated with the process of warehousing the goods.

Thus, it is concluded that the aim of supply chain management is to bring efficiency to the operations of business thereby ensuring optimum utilization of the assets, information, and funds used in business.

2.2 Team communication plan

First of all as a group we organized ourself in way that it will be easy to communicate for the task given and we distribute the work among our self as follow, we are 4 members in the group and we did selected a leader who organized meeting time to discuss and write interesting points and distribute tasks force to each member of the group and announced for everybody to complete his task in a given time frame and instruct the group to keep in touch in case of any problem or delay in completing given task so that urgent meeting can be organised to help the member to overcome his difficulty and quick resolution of any issue , in addition to above the leader was responsible to liaise with CEO of HR in the company and arranged appointment with her , who facilitated for us to meet a supply chain manager as a group who gave us a close appointment and gave us a good time to interview him and ask him so much direct and indirect question about the supply chain in his company in general and he supplied us with a lot of important document by email.

The distribution of task to each member as follow, one of the member was given a role in communicating with our supervisor through email in case any advice urgently is needed to solve any arising problem. The next two members were given a job to organise the assignment design and outline the structure of the project. The whole group will come to a meeting at alternating week to write the project diary for that week. Overall, we were working as a team most of the time which save us time and effort if working alone.

 

3.1 Introduction

Researchers are proposed to be conducted with the intent to purport necessary action that needs to follow the research. The methodology of research needs to be in tandem with the goals of the research which is intended towards a particular problem. The problem statement could be the identification of a trend, study of the reasons that contribute to the creation of such a trend and methodology to tackle the disadvantages created if any. A very well-planned, sequenced, implemented, recorded and presented research can only contribute to successful research. Research constitutes that wing of the educational institution that holds power to rework on the existing system/strategies in an organization with an aim to optimize the resources that are available to the organization. Research creates an opportunity for the discovery of more points of view that what exists, during the prospective exploration that might contribute to the existing value chain in the organization. There comes into the picture a broader scope of understanding as newer areas are probed when the activity of research is undertaken in an organization. There is a new knowledge gain with the existing schema of processes that exists at various levels in an organization that would finally lead to improvement of the processes and thereby value addition/reduction of cost on various counts. For instance, in the case of Zara one of the largest fashion stores in the world, the timeline followed by bringing the fashion from the fashion shows when they are launched, to when they reach the stores is just three weeks (Ballou, 2007). They also ensure that the number of stocks that are brought to the store counters is not very high as compared to sale value, avoiding overstocking and discount sales. Lean management is an effective business strategy for the present day organizations in a very dynamic business environment. Similarly, in the present case the company under study Oryx, follows the traditional method of inventory management which necessitates considerable stocking. The company has in recent time's implemented JUST IN TIME methodology of stocking for a few of its products. This study aims at the observation of this transformation of the company in progress presently, draw numerical instances if any, perform an industry study to substantiate the effects that are observed during the study of the data that is available from the company.

3.2 Research Design

Oryx is an international organization that manufactures semi trailers and rigid bodies and is one of the major providers for some companies in the Sultanate of Oman as well as rest of the globe. The company specializes in the conception, design, development, assembly, and construction of semi trailers, rigid bodies as well as equipment that are mobile and heavy in nature (Beamon, 1998). The company is not listed on the stock exchange and hence is exempted from mandatory disclosure of all financial and prescribed non financial data to the public as well as all of its stakeholders. This creates a slight bottleneck on the quantum as well as nature of detailed data on the logistics cost and management information we could collect from the said organization due to restrictions placed by confidentiality that they may prefer to maintain. Hence, to compensate the limitations caused by the paucity of data for analysis, industry data that are available and comparable has been used as an illustration to complete the study. On observation of the details regarding logistics and procurement as well as operational hierarchy furnished by the organization, we could observe that the company adopts traditional methods of operations as far as procurement, construction, as well as delivery of the equipment, is concerned. However, the organization has started adopting a JUST IN TIME approach on certain items in the inventory (Bookbinder and Dilts, 2016). The company has detailed documentation of more than three thousand parts that are required; certain products have been tested and brought under the umbrella of JUST IN TIME method of logistics.

An example of Toyota being in the Industry of manufacturing moving vehicles, though not heavy is taken for a deep dive analysis to put into perspective the usefulness of JUST IN TIME inventory system in a highly complicated, innumerable part based manufacturing environment. Just in time does not only mean sourcing the raw materials as and when they are required for production only but also encompasses a whole volley of processes that are involved in various stages of work in process to arrive at the finished products. However there are many factors that needs to considered while using the JUST IN TIME method of inventory management, the nature of the finished goods that is sold by the organisation, the availability of raw materials on demand as well as the logistics of obtaining those shipped raw materials in the production shop floor in the right time as required by the producer, seriousness of the order completion deadline, cost of recourse of a missed order completion in monetary as well as customer long term relation terms and the like.

3.3 Population of the Study

We are taking for illustrative study purposes two bills of materials for two of the heavy vehicle construction as given by the company (Chen and Paulraj, 2004). It is assumed that the details provided in these two illustrations are reflective of the state of affairs in general of the organization. Also, comparable samples from the industry and the economy have been used for comparison purposes.In the case of this research, the company being privately managed, data for any form of research both regarding financial numbers and otherwise could not be obtained from public sources.

3.4 Sampling Techniques and Sample Size

We can state that this research is based on extrapolation as well as interpretation of the numbers presented to us on logistics by the organization, Oryx limited. The company is privately based our research techniques was a study of the processes, questionnaires to the employees and detailed analysis of the two bill of materials presented to us. The sample size is limited to the two bill of materials and cannot be compared to the total as the costing data was not presented to us. All conclusions are drawn based on internal as well as external / published data research and study as well as observation of other ancillary economic trends (Christopher, 2016).

3.5 Research Techniques and Validity and Reliable Testing

Since the company under research presently namely Oryx is involved with the design and construction of heavy duty trucks and movers the time involved in completing a product may span many days. This essentially warrants the processes that succeed a particular process to consider the predecessor process as the sourcing point and perform a JUST IN TIME at that point also. This would particularly allow a seamless adoption of the JUST IN TIME inventory management process at almost all the point of manufacturing in the organization. The main objective of this study is lean manufacturing with low costs of inventory holding, high efficiency in operations and thereby optimal production cost for the company as a whole. The main assumption that JUST IN TIME tends to make is an even, very limited fluctuation prone production line which may not be a reality in case of Oryx limited as the company is into customised heavy vehicle building and seldom does the production line is uniform throughout a given period of time (Croom et al. 2000). This tends to have a bearing on the study as the order book/manufacturing update for the past financial year has not be provided by the organization, and hence a reasonable estimate of the possible trend of manufacturing whether seasonal or otherwise dominated by the presence of a bulk order contract could not be estimated. However reasonable estimates from the industry have been used to mitigate the ambiguity if any that may arise due to the unavailability of any such data.

3.6 Data Collection Techniques

The data analysis and presentation is the most crucial part of any research as the same constitutes the base for any interpretation that may be made by the researchers and the understanding that would be cultivated among the target audience by observation and reading of the presentation of analyzed data (Fawcett and Pearson, 2015). Legal, Ethical and Social Issues.

3.7 Data Analysis Technique

The data analysis method is focused on considering the statistical applications such as mean, regression, and correlation to the data furnished by the organization for study. However owing to shortage of any detailed data collection due to the private nature of the company, the same could not be executed with clarity. Hence, simple data comparison technique by analysis of bill of materials have been used.

3.8 Legal, Ethical and Social Issues

All data for research have been collected from the representatives of the organization and hence would exempt any legal consequences that may fall upon the researchers upon utilization of such data (Gao, 2017). Also, the researches confirm that any unauthorized divulging of data obtained from Oryx for this research has not occurred during the course or after the completion of this research and all means of protection has been adopted by the research team to maintain the confidentiality of the data obtained from the company for this research. As for the ethical considerations, the data has been collected by fair means from the organization representative by the researchers and the permission for analysis and representation of the facts has been obtained in such adequacy as required for this research. This essentially implies that the sanctity of the data has been maintained through the research and the same has been used for research only. Socially the impact that is caused by this research would be the understanding of the usefulness of the JUST IN TIME method by the display of required proof, and no negative impact is anticipated to occur or to be derived from this research. The society at large has not been taken as a part of this research, and no interaction has been maintained for with other than the employees of Oryx limited (Goetsch and Davis, 2014). We assure that no experiments whether mental or physical have been conducted or propose to be undertaken for this study on any animal or human being which might result in harm being caused to them. This research is primarily based on the corroboration and collective interpretation of data collected from Oryx limited by the team of researchers with the assent of the management and the industry as well as other related data that can be obtained from published sources such as the journals, magazines, internet, business research papers and the like that would be studied and presented in an inferable fashion to the audience.

 

 


4.1 Introduction

There are two main categories of data analysis and presentation that are normally adapted in any research project by the researchers (Hervani et al. 2005). The organization of data starts with a collection of data in the form of spreadsheets, answers to questioners, production run outputs and the like. Then these data have been laid out in a cogent and correlated manner for reaching meaningful conclusions that would support the maxim that is theorized by this study. The quantitative approach of analysis of data is based on the application of various mathematical formulae and statistical tools to the raw data that is obtained for research to study the results of the calculation in such a manner that the reaction by these variables to the various statistical applications can be studied for a pattern. The particular characteristics if any exhibited in a tuned manner by these variables are then collectively represented to form the basis of the conclusion that the researches form on the research question on hand.

In the case of Qualitative analysis, the focus is on the getting a view of the whole picture which includes correlative analysis of numerical and non numerical factors to form a meaningful picture about the research question in view. The qualitative analytical techniques throw more focus on the meaning that can be derived from the joint study of all the variables presented rather than limiting the focus to numerical dissection and study (Javadian Kootanaee et al. 2013). This includes consideration of factors such as management composition, organization high-level goals, geographical as well as economic factors, current market fluctuations, peer organizations strategy in consonance with the numerical analysis. This study is structured to be in a qualitative manner as JUST IN TIME is not a singular numerical study based on the number presented. The factors enumerated above on qualitative study impact the logistics management in Oryx along with economic and inter-organizational challenges. This study has considered the data presented by Oryx namely the details about raw materials required for production/construction, the plan for implementation of JUST IN TIME within the organization and other ancillary numerical data presented. However, since there is an inherent inadequacy in the form of unavailability of cost-related data, comparable external resources have been used based on free availability.

Illustrative Bill of Materials: (Collected from the company)

Bill of Material -1

Job no.

MRS No

MRS Date

Item code

Description

Specs

uom

Qty

po

po date

Received on

total wt /mt

16/2017

1569

1-Mar

1869

IPE 300 x 12 mtr

S355JR/GR50

NOS

8

116

1-Mar

19-Mar

4.051

16/2017

1569

2-Mar

1524

UPN 80 X 6 MTR

S275JR/ST44

NOS

20

144

12-Mar

18-Mar

1.037

16/2017

1569

2-Mar

1363

PLATE 12 mm x 2000 x 6000

S275JR/ST44

NOS

1

142

12-Mar

18-Mar

1.130

16/2017

1569

19-Feb

1363

PLATE 12 mm x 2000 x 6000

S275JR/ST44

NOS

1

90

19-Feb

16-Mar

1.130

16/2017

1569

2-Mar

1066

PLATE 10 mm x 2000 x 6000

S275JR/ST44

NOS

2

142

12-Mar

18-Mar

1.884

16/2017

1569

19-Feb

1400

PLATE 8 mm x 2000 x 6000

S275JR/ST44

NOS

1

90

19-Feb

16-Mar

0.754

16/2017

1569

19-Feb

1802

PLATE 8 mm x 2500 x 12000

S275JR/ST44

NOS

2

90

19-Feb

16-Mar

3.768

16/2017

1570

1-Mar

1583

PLATE 6 mm x 2000 x 6000

S275JR/ST44

NOS

8

117

1-Mar

8-Mar

4.522

16/2017

1570

1-Mar

1068

PLATE 5 mm x 2000 x 6000

S275JR/ST44

NOS

87

117

1-Mar

18-Mar

40.977

16/2017

1570

2-Mar

1070

PLATE 5 mm x 1500 x 6000

S275JR/ST44

NOS

8

143

12-Mar

25-Mar

2.826

16/2017

1570

2-Mar

1391

PLATE 4mm 2 x 6 mtr

S275JR/ST44

NOS

13

162

14-Mar

18-Mar

4.898

16/2017

1570

2-Mar

1065

PLATE 3mm 1.5 x 6 mtr

S275JR/ST44

NOS

10

119

2-Mar

16-Mar

2.115

16/2017

1570

2-Mar

1065

PLATE 3mm 1.5 x 6 mtr 5

S275JR/ST44

NOS

10

201

10-Apr

18-Mar

2.115

16/2017

1570

2-Mar

751

CHEQ. PLATE 3mm 4' x 8'

S275JR/ST44

NOS

16

143

12-Mar

25-Mar

1.247

16/2017

1570

2-Mar

1472

PLATE 2 MM X 4' X 8'

S275JR/ST44

NOS

40

145

12-Mar

23-Mar

1.869

16/2017

1570

2-Mar

2520

PIPE 4" SCH 40X6 MTR SEAMLESS

S275JR/ST44

NOS

10

143

12-Mar

25-Mar

0.964

16/2017

1571

2-Mar

791

PIPE 1" SCH 40 X 6 MTR ERW

S275JR/ST44

NOS

50

119

2-Mar

18-Mar

0.750

16/2017

1567

28-Feb

1364

GRATINGS GI B100/40 25X4.5X0.915X6000

S275JR/ST44

NOS

24

198

10-Apr

16-Apr

3.480

16/2017

1570

2-Mar

3313

Clamp for grating

S275JR/ST44

NOS

500

199

10-Apr

18-Mar

0.250

 

 

 

Bill of Material - 2

Job Ref.

MRS DATE

MRS No.

Item code

Description

Uom

Qty

lpo no

lpo date

VENDOR

Recd. Date

Status

22/17

8-Mar

1578

2170

VACCUM PUMP INCL ACCESSORIES MODEL MEC6500P MAKE BATTIONI PAGANI

Nos

1

135

8-Mar

Gargash

14-Mar

ordered & delivered

22/17

13-Mar

1579

4060

3" Suction Hose - Green

Mtrs

6

157

14-Mar

galaxy national

19-Mar

ordered & delivered

22/17

13-Mar

1579

2931

Rubber Hose 3" Inside Single Wire 300PSI

Mtrs

15

157

14-Mar

galaxy national

19-Mar

ordered & delivered

22/17

13-Mar

1579

NI

CALIBRATION OF PRV, VRV AND COMP GUAGE

SET

1

NI-43

20-Mar

mustafa sultan

20-Mar

ordered & delivered

22/17

13-Mar

1579

1202

Pillow Block Bearing UCP-209 (ID-45mm)

Nos

3

156

14-Mar

Advance Oilfield

22-Mar

ordered & delivered

22/17

13-Mar

1579

719

EPOXY PRIMER WITH ZINC PHOSPATE

Ltrs

60

150

13-Mar

BERGER

22-Mar

ordered & delivered

22/17

13-Mar

1579

693

THINNER 7-45

Ltrs

40

150

13-Mar

BERGER

22-Mar

ordered & delivered

22/17

13-Mar

1579

1357

Hempadur Black 151310-19990-00020 COAL TAR FOR BARKISH WATER TANKER INSIDE PAINT

Ltrs

40

151

13-Mar

HEMPEL

22-Mar

ordered & delivered

22/17

13-Mar

1579

1359

THINNER HEMPEL 08450-00000

Ltrs

20

151

13-Mar

HEMPEL

22-Mar

ordered & delivered

22/17

13-Mar

1579

2286

Brass Y Strainer 3"

Nos

2

154

14-Mar

Sarsan General

21-Mar

ordered & delivered

22/17

13-Mar

1579

118

BERGER RAL 1021 AS PER REF NO FOR VACUUM TANKER REF-116/35

Ltrs

60

150

13-Mar

BERGER

26-Mar

ordered & delivered

22/17

7-Mar

1574

562

LOCK NUT M14 GALVANISED

Nos

500

130

8-Mar

BOLTMASTER

26-Mar

ordered & delivered

22/17

7-Mar

1574

556

Bolt M10x30 Gr 8.8 FT GI

Nos

500

139

9-Mar

BOLTMASTER

26-Mar

ordered & delivered

22/17

29-Mar

1583

2796

V BELT B-53

Nos

3

156

29-Mar

Advance Oilfield

29-Mar

ordered & delivered

22/17

7-Mar

1575

528

M6 x 30 Hex Bolt Grade 8.8 G.I.

Nos

1000

130

8-Mar

BOLTMASTER

2-Apr

ordered & delivered

22/17

7-Mar

1575

2966

Nut Plain M6 GI

Nos

1000

130

8-Mar

BOLTMASTER

2-Apr

ordered & delivered

22/17

7-Mar

1575

576

SPRING WASHER M 6 GALVANISED

Nos

1000

130

8-Mar

BOLTMASTER

2-Apr

ordered & delivered

22/17

30-Mar

1583

1039

BISON KIT 650ML

Nos

1

180

2-Apr

SAMI NATIONAL

30-Mar

ordered & delivered

22/17

13-Mar

1579

2797

THINNER 7-73 BERGER

Ltrs

40

150

13-Mar

BERGER

27-Mar

ordered & delivered

From observation and study of the above bill of material, it can be seen that the lead time between the ordering and obtaining is between two to three weeks. Since the ideal construction time required for heavy utility vehicles from the date of receipt of raw materials until the date of supply of materials until the delivery date is close to four to six weeks on an industry average, we can assume the same for study. We can observe from the above data that the company is already ordering items on different dates signifying the items are ordered in a pattern that they would would fit into the manufacturing design (Jitkrittum et al. 2015).

4.2 Present status of JUST IN TIME in Oryx

 

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The earlier orders correspond to materials required during the earlier weeks of construction and for the later items, likewise. The company, however, have informed to follow the ABC method of inventory presently and not completely in tandem with the JUST IN TIME method of inventory in the totality of all operations take together.

 

 

 

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From the above areas wherein JUST IN TIME has a possibility of being implemented in a company, Oryx has implemented the JUST IN TIME system in many of it's a class inventory which cost the highest hence causing very high inventory holding cost (Lambert et al. 1998). Though the JUST IN TIME / Kanban of ordering exactly a while before production has not yet permeated in the B and C class of raw materials involving the numerous as well as less costly items at this point

Logistics Chain of Single Work Order for Semi‐Trailer Bottom Loading Fuel Tanker 36,400L:

 

sno

Type of Event

DATE OF EVENT

REMARKS

1

Order from customer obtained on with delivery commitment of 30th April 2017 for supply of 10 nos SemiTrailer Bottom Loading Fuel Tanker 36,400L

20th Feb 2017

 

2

Procurement of Steel Plates

25th Feb 2017

 

3

Fabrication of Steel Tank

28th Feb 2017

 

4

Order finalization of Axle

20th Mar 2017

 

5

Delivery of Axle

3rd April 2017

 

6

Completion of fabrication and assembly

23rd April 2017

 

7

Completion of Blasting and painting

26th April 2017

 

8

Delivery committed

30th April 2017

 

 

An analysis of the above-presented table could prove the claim that is made by the research. On observation, we can find that items such as steel plates which are the starting point for construction of the heavy vehicles are purchased 75 days before the delivery of the vehicle, as the work starts at this stage. Items such as Axle are procured at the stage when they are required to be used in the construction of the vehicle and the lead time between ordering and receipt is about two weeks and is carried as inventory for about three weeks before being used in the construction and delivered (Lancioni et al. 2000). However, the company does not provide costs for the same, so we cannot ascertain the percentage of the raw material of the total the company has brought under the JUST IN TIME umbrella till date. However, the company vides their communication has informed that the most expensive of all the items, the Axle has been procured only three days before the date it is required in the construction process (Mentzer, DeWitt V, Keebler K, Min, Nix N and Smith 2001).

In summation we could observe from the data furnished by the company that the implementation of JUST IN TIME has bequeathed a number of benefits to the company, however there are other restrictions like penalty for late procurement and lead times as well as commitment to delivery and the like (Ruiz-de-Arbulo-Lopez, Fortuny-Santos, and Cuatrecasas-Arb s 2013).

4.3 Qualitative research analysis:
Interview method:

Through the interview method of qualitative analysis, the researcher undertook the exercise of interviewing the supply chain manager at Oryx Metal Industries named Mr. Venkatesh. The manager was interviewed by the following 16 questions. The response of the manager gained on the 16 questions is presented hereafter.

1. What is supply chain system used in Oryx? And could you explain it?

According to Mr. Venkatesh, the company Oryx Metal Industries have been following the traditional method of supply chain management within the framework of the business. As per the inherent characteristics of the traditional supply chain management system the company used the push strategy' through which the manufacturer pushes the goods produced through the supply chain. However, the manager identified that due to the implementation of a traditional model of supply chain certain gaps existed between the demand and supply mechanism followed by the company. As a result, it led to two outcomes such as shortage and wastage of products.

According to the Mr. Venkatesh, it is inferred that the company Oryx Metal Industries have taken a recent initiative of implementing the Just in Time technique of managing the supply chain of the company. Through the implementation of the Just in Time (JIT) technique the company has planned to increase the efficiency of the supply chain network of the business and decrease the wastage of resources and cost associated with inventory.

2. What are the departments inside the company which deals directly with the supply chain system?

According to the supply manager of the company, Mr. Venkatesh, the production, and manufacturing department, the logistics department, the information technology department and the quality control department operating within the Oryx metal industries have a direct relationship with the supply chain network operating within, the organization. Further, it is stated by the manager of the company that it maintains a strong connection with the distributors to ensure effective management of the supply chain system. In addition to the mission of the company is to maintain high standards with respect to quality of the products, the company procures best quality raw materials to serve its policy of total quality.' The departments mentioned above are required to maintain a well-coordinated and specifically structured connection with the supply chain system of Oryx to ensure smooth functioning of the supply chain network of the company.

3. What is the source of raw materials which used in the production process?

According to Mr. Venkatesh of Oryx, it is observed that the company produces multiple products in the form of Steel Structure, Pressure Vessel, Oil and Gas, Storage Tank, Silo, and Truck Mounted. Thus the most important raw material required by the company is steel. Thus the source of raw materials for the company is the eminent steel manufacturers in the country.

4. From where you have supplied the raw materials?

From the response provided by manager Mr. Venkatesh, it is inferred that the company Oryx has been maintaining superior quality standards through the products manufactured by the entity. The slogan of the company is Quality in Motion.' Also, the company has established a policy on quality management named total quality policy.' The raw materials which are used in the production process of the products of Oryx are received from suppliers that ensure superior quality products. Also, the company has a certain number of European, African and Middle East suppliers that provide raw materials which are used in the production process.

5. Did you deal with the local supplier?

According to Mr. Venkatesh of Oryx, it is inferred that the company has both local and international suppliers. However, as the company is focussed on maintaining high-quality standards of the products manufactured by the entity, therefore, the business have chosen it suppliers that provide superior quality of raw materials. National Trading Company and Al-salami group are considered to be the suppliers of Oryx metal industries. From the response provided by the supply chain manager, it is inferred that the National Trading Company is one of the pioneer companies functioning in Oman which provides increased amount of expertise in multiple areas such as information technology, oil and gas, insurance and power projects. On the other hand, the Al sulami group offers Oryx increased amount of industrial and engineering related solutions on welding and cutting, metal fabrication and industrial equipment. The manager also provided that the company has been maintaining the just in time' technique to deal with the local suppliers. Also, the company has been planning to implement a quality management program specifically designed for the suppliers of the business.

6. What is your strategy to select the suppliers?

According to Mr. Venkatesh of Oryx, the suppliers of the company are selected considering the quality of raw material supplied by the entity. As the motto of Oryx is to provide superior quality products to the customers or the clients of the business, therefore, the company ensures that the supplier selection process is well coordinated and appropriate. Also, the management of the company undertakes an analysis of the past performance records of the suppliers before selecting the suppliers. Also, the manager provided that the company has developed a particular process in selecting the suppliers of the company. The strategies involved: Identification of the suppliers, measuring or evaluating the performance of the suppliers, gaining appropriate feedback from the suppliers, achieving certification from the suppliers, development of partnership with the suppliers and ensuring that the quality standards are maintained through the supply of materials, therefore, delivering highest quality to the clients of the business. Through the process of identifying the suppliers of Oryx, the company takes into consideration the following factors such as delivery commitment of the supplier, responsiveness, and reliability of the supplier. In the second step, the company continuously performs an audit of the compliance requirements about the supplier. Through this process, the company segregates the suppliers in various categories namely, high-risk suppliers, medium and low-risk suppliers. In addition to the audit program, the company continuously monitors and undertakes an assessment of the performance of the suppliers to the business.

The supply chain manager at Oryx stated that the management had developed a supplier management strategy by gaining appropriate feedback on the suppliers through the identification of performance gaps. Also, the company has undertaken the process of certifying the suppliers to ensure quality standards are maintained. Further, the manager specified that with the aim of developing a manufacturer and supplier relationship in the organization the company has formed strategic partnerships with the suppliers such as National Trading Company and Al sulami group. Due to the formation of strategic partnerships the company expects the supplier to anticipate the needs of the manufacturers appropriately and provide timely notifications. Also, the supplier is expected to communicate the delays associated with production process involving downtime and maintenance requirements.

7. When you supply raw material from abroad, who is responsible for the shipping cost (Shipping, Insurance, Customs)?

According to the response provided by Mr. Venkatesh, it is inferred that the company Oryx is responsible for the shipping cost associated with the supply of raw materials from abroad. Further, the company implements the use of Cost, Insurance and Freight' (CIF) method for paying the duty to the department of customs in the country. The manager explained that the Cost, Insurance and Freight' (CIF) method is a term used by the sellers that undertake the process of arranging carriage of the goods imported by sea to the destination port of the importer and provide necessary documents to the buyer on the completion of the transaction.

8. How much time do you spend to finish all customs procedure?

From the response given by the supply chain manager, it is inferred that the company requires 48 hours to complete the documentation and the compliance procedures required to be undertaken by the customs department. According to the manager, Mr. Venkatesh of Oryx metal industries the company is committed to reducing breakdown time and unnecessary delay in the process of acquiring the raw materials for the production process.

9. After arriving your shipment to Oman ports; how do you transport them to your warehouse?

According to Mr. Venkatesh, it is inferred that once the raw materials arrive at the Oman port, the company Oryx undertakes the process of transporting the raw material to the warehouse of the company. Also, the company Oryx Metal Industries has developed a partnership with Xport Solutions LLC to undertake timely dispatch and management of the raw materials required for the production process. Also, the manager stated that the company employs prominent logistic companies for the purpose of transporting the raw materials of the business to the designated warehouse of the company. However, as the company has been implementing Just in time' technique, therefore management of the raw materials used in the business have been enhanced.

10. Do you have a special warehouse to store the raw materials?

In response to the above question, it is inferred from the response of Mr. Venkatesh that the company Oryx Metal Industries has been maintaining warehouses at different locations for the purpose of storing the raw materials of the business. The company has been maintaining large warehouses at different site locations such as Muscat and Sohar.

According to the supply chain manager, a warehouse is identified as a commercial building which is constructed for the purpose of storing industrial goods required in the production process. The manager specified that the company functioning within the metal industry is required to maintain well designed and strategically located warehouses in Oman to ensure timely delivery of the goods. According to the manager industrial and manufacturing plants are required to maintain warehouses in order to deal with the process of storage effectively. Further, the manager highlighted that the company Oryx has been maintaining a well-organized warehouse with the aim of enabling appropriate management of the inventory used in the process of production.

11. Normally what is the lead time to take the order from raising it until receiving the shipment?

From the response provided by the supply chain manager, it is inferred that lead time is considered to be the amount of time which elapses between the commencement of the ordering process and the completion of the shipment. It is also inferred that the company aims at minimizing the lead time as Oryx Metal Industries believes in maintaining zero downtime' in its business processes. The approximate lead time considered by Oryx Metal Industries is considered to be 2-3 months depending on the availability of inventory required for the production process. As the company aims at zeroing on the downtime thereby minimizing the lead time, therefore it is inferred that the company ensures appropriate supplier management.

12. After you receipt, the materials do you start the main manufacturing process, or you make some element for it?

According to the response of Mr Venkatesh, it is inferred that the company Oryx Metal Industries undertake the process of commencing the manufacturing process on receiving the materials. It is inferred that the company involves a swift and efficient production process that enables the entity in reducing the lead times and the down times simultaneously. However, before starting the manufacturing process, the raw materials are brought to the manufacturing plant of Oryx which is located at Sohar. The manager stressed on the adoption of Just in time technique of production through which the company assembles the partly finished goods' into finished goods. As JIT technique stresses on the production process in which the production cycle commences on receiving the product specifications or order from the customers, therefore, the manufacturing process begins immediately on the receipt of the materials.

On the other hand, the Mr Venkatesh the supply chain manager also provided that the company in case of larger production schedules does not start the production process immediately after receiving the raw materials since the company undertakes to check of the manufacturing systems before the commencement of the production processes.

13. What are the problems do you face from your purchase raw material until you receipt it in the stores?

According to the response provided by Mr Venkatesh, it is observed that the company faces certain problems while procuring the raw materials such as:

        Quality issues

        Delivery of raw material within the stated time

        Pricing issues

        Administration of the supplier contracts

The manager identified that often the company has to face certain issues about product warranty and guarantee from the suppliers. Due to political instabilities, the supply mechanism is hindered which also creates pricing issues in the procurement of the raw materials.

14. Do you trust Omanis products if you find it?

According to Mr Venkatesh, it is observed that the company associated increased amount of trust on the products of Oman. As the company procured raw materials from the local suppliers, it is observed that the company associated increased amount of trust with the Omani products.

15. If the Omanis suppliers can offer the raw materials; are you going to be dealing with them?

According to the response of Mr Venkatesh, it is inferred that the company has shown eagerness and willingness towards using the raw materials offered by the suppliers in Oman for manufacturing the products of Oryx. Further, it is observed that due to the implementation of the JIT technique the procurement of raw materials from the Omani suppliers is considered to be in increased demand for the management of the company.

16. Do you know about JIT?

According to the response received from Mr Venkatesh, it is stated that both the individuals are acquainted with the concept of Just In time (JIT) technique of supply chain management system.

(If yes, did you try to apply it in your company?)

Further, as the manager had a clear idea of JIT technique it is inferred from his response that the company Oryx Metals Industries has taken a recent initiative of implementing the JIT technique within the framework of the business. In addition according to the response provided by the individual, it is observed that the company has been significantly benefitted due to the implementation of the JIT technique. It is observed that the company has been benefitted through the JIT technique as the business has been successful in reducing the cost associated with the inventory.


 

4.4 Summary of the interview

From the qualitative analysis and the interview conducted on the supply chain manager of Oryx metal industries named Mr Venkatesh it is inferred that the company initially have adopted the traditional method of supply chain management. Through the traditional method of supply chain management Oryx had continued its business over a long period of time. However, due to varied amount of disadvantages and limitations being assoviated with the traditional system of supply chain management the company is observed to have implemented a modern technique of supply chain management system named Just In Time (JIT) technique o supply chain management. Due to the implementation of the JIT technique of supply chain management system the company has benn successful in reducing the inventory costs associated in managing the raw materials and the warehousing costs. Significant amount of reduction in terms of inventory costs have been inferred from the response provided by the supply chain manager as a result of the implementation of JIT technique in the supply chain network of the company.

Through the response provided by the supply chain manager at Oryx it is inferred that the main reason behind implementing JIT technique in the supply chain system of the company is to reduce the wastage associated with the resources of the company and also to decrease the inventory carrying costs incurred by the business.

As the production, and manufacturing division, the logistics section, the information technology division and the quality control department functioning within the Oryx metal industries have a direct association with the supply chain network operating within the business therefore it is significantly important to maintain efficieny in the supply chain network of the company.

The most important raw materials required for the business of Oryx metal industries are identified as steel and aluminium. For the purpose of procuring raw materials from the suppliers, the company has established suitable and appropriate strategies in terms of selecting the suppliers of the company. The supplier selection strategies determined by the company Oryx as elaborated by the supply chain manager of the company are enumeration hereafter. It involves recognition of the suppliers, measuring the performance of the suppliers, getting hold of appropriate response or feedback from the suppliers, achieving certification or documentation from the suppliers, expansion or development of partnerships with the suppliers of the company. Through this process the company ensures that the quality standards are maintained through the supply of materials, therefore, conveying highest quality to the clients or the customers of the business.

From the response provided by Mr Venkatesh during the interview it is observed that the company has both local and overseas suppliers such as National Trading Company and Al sulami group and the Xport Solutions LLC. Due to oversea transactions the company is required to obtain import export license and ensure compliance of the custom duties on timely basis. For the purpose of paying the customs duty the company has adopted the Cost Insurance and Freight (CIF) method . As the company is committed towards making timely delivery of best quality products to the clients therefore it is inferred that the compliance procedures are undertaken within 48 hours of the arrival of the goods at the port.

As the company is having a motto of Quality in Motion therefore the business ensures minimization of breaktime down times and lead times through the production process. From the response of the supply chain manager it is inferred that the approximate lead time considered by the company is observedd to be 2-3 months which is dependent on the availability of inventory that is required for the production process. Further, it is stated that as the business aims to bring the downtime or breakdown time at zero through minimization of the lead time, therefore the company is found to implement effective strategies for management of the supply chain.

However, Oryx metal industries is found to have confronted various issues in the management of the supply chain which are required to be resolved on timely basis in order to ensure optimimum utilization of the resources of the company. The issues faced by the company are identified as follows, quality and pricing related issues, issues related to delivery of the raw material within the stipulated time and administering of the contracts made with the suppliers.

Thus, it is concluded from the interview analysis that the company Oryx hasw been functioning efficiently in the Omani market and of late the company has taken the initiative of implementing JIT technique for the management of the supply chain network of the business. Through this process the company aims at providing superior quality products and services to the clients of the business.

 

5.1 Introduction

The main idea behind this study has been the goal to answer the questions with respect to JUST IN TIME methodology of inventory management being superior in terms of cost management as well as operations management in case of manufacturing entities. The company called Oryx LLP was taken for analysis. Maximum possible data has been collected from the company and used for this analysis in a diligent manner that complies with ethical, professional and other standards that is expected to be kept up with respect to this research. A diligent research and interpretation of the data presented to us by the organisation as well as extrapolation to relevant external data had to be performed as the researchers were faced with the bottleneck of unavailability of any public data with respect to the organisation, required parallels were drawn from comparable counterparts to suffice the requirements of the research study.JUST IN TIME is a very efficient method of management of inventory in manufacturing organisation, also called Kanban. In a world where the markets are highly dynamic and customers are extremely aware as well s matured, maximum value for least cost is what fetches more and more market share & stability to any organisation globally.

5.2 Summary of Findings

On analysis of the data presented by Oryx as well as other observations during site visit and discussion with the employees a few crystallised thoughts could be projected. The organisation is a manufacturer of heavy body commercial road vehicles and hence the entire business is built to order and particular deadlines are laid down for every project. The lead time for the raw materials were typically between two to three weeks and the construction time spanned around three months from start of order till delivery of the merchandise. This typical process had limitations such as the sourcing geography related issues in case of certain raw materials as well as number of raw materials required being on a very high side of three thousand though this might not apply for every single project / vehicle the company would undertake to construct.The company had presently classified the raw materials based on cost and size of the respective materials in ABC method. The highest costing items such as the Axle were sourced just before their installation time into the trucks whereas the steel plates were seen to be sourced way ahead of the time of use in production. It can be observed that in businesses like Toyota and Zara there are clients and services created with the organisation and each of the departments manage JUST IN TIME within the company itself. This sort of creates a nested sequencing of JUST IN TIME encrusting a multi-layer system wherein the JUST IN TIME would be applied multiple times for maximising the impact. Oryx is recommended to explore as to if the other items of inventory could also be subjected to JUST IN TIME type of inventory management, as it would result in a very high cost saving for the organisation. Also, presently the organisation management chart suggests that presently the operations of sourcing is done by a central team for the entire bill of materials. This could be replaced with the application of a nested system by reorganisation of the company s management structure and creation of individual cost as well as profit centres with respect to each of the individual / grouped activities of the entire construction pattern. This would enable extremely efficient management of the costs with respect to each of the activity that is involved in construction of the heavy vehicle in its entirety. This would greatly benefit not only Oryx LLP but also all the companies that could implement JUST IN TIME as in today s highly elastic market, companies are expected to find a way to keep themselves competitive. Also in this juncture it is essential to mention that implementation of JUST IN TIME causes changes in the management accounting and cost recording as well as monitoring at each stage to keep the same under supervision as well as control.

5.3 Recommendations

The implementation of JUST IN TIME on a long run would reduce direct cost accounting pertaining to direct labour and direct inventory accounts management. However, Oryx while implementing of JUST IN TIME to the maximum possible items of inventory should retain in mind that the stress on measurement of efficiency based on production and sales needs to be replaced / complimented as the case may be with the importance being allocated to the reduction in lead time, production set up time reduction and thereby achieving efficiency and better quality of production.

5.4 Future Research

In summary we can state that Oryx is in the starting point pertaining to implementation of JUST IN TIME and presently have many areas that could be further explored. If properly planned and diligent implement JUST IN TIME could result in cost reduction and quality improvement in not only Oryx but also to the entire Omani economy as well.

 

 

 

 

 

 

 

 

 

 

 


 

 

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