: 465
Table
of Contents
3.4 Sampling Techniques
and Sample Size
3.5 Research Techniques
and Validity and Reliable Testing
3.6 Data Collection
Techniques
3.8 Legal, Ethical and
Social Issues
Data Analysis and
Presentation
4.2 Present status of
JUST IN TIME in Oryx
4.3 Qualitative research
analysis: Interview method:
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.
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.
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.
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.
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
|
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 |
|
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).

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.
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 Semi‐Trailer 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).
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.
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.
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.
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.
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.
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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