Implementation of Supply Chain i2 Solution AT Escorts INDIA

LTD.

YMCA UNIVERSITY OF SCIENCE AND TECHNOLOGY,

FARIDABAD

Submitted By:-

XYZ

MBA-399-2K9

UNDER THE GUIDANCE

OF
 II

ACKNOWLEDGMENT

Words are only vehicles which would carry my emotions and

thoughts, when we step in the door of completion of my project
work for summer training of two months.

I’m grateful to Escorts Ltd, AMG, Faridabad for giving us the

permission for the project work, and availing me their facilities.
I’m indebted to Mr. JPS Sabharwal (Module Head-Materials,
Escorts Ltd, AMG, Faridabad.) and Mr. Satish Kumar Sharma
(Manager, Human Resource) for their prompt assistance and
guidance during the course of my project work.

I also take this opportunity to express our sincere thanks toward

all the staff members from Assembly Shop of Escorts Ltd, AMG,
Faridabad for sparing their valuable time especially while giving
information and other theoretical inputs which act as guidelines
during our project work.

I’m extending my thanks to all those persons who have helped

me, directly or indirectly, in completing the project work.

I hope that i have been successful in my endeavor. Discrepancies,

mistakes, if any, are solely mine.

TARUN GARG
 III

[YMCA UNIVERSITY OF
SCIENCE AND TECHNOLOGY]
 IV

CERTIFICATE

This is to certify that “IQBAL SINGH” student of MBA (OPERATIONS

MANAGEMENT) has undertaken and completed successfully the project on

“INVENTORY CONTROL AT JCB INDIA LTD.” under my supervision and

guidance. This report, which is submitted to YMCA UNIVERSITY OF

SCIENCE AND TECHNOLOGY, FARIDABAD for the partial fulfillment of

award of Degree of M.B.A with specialization in Operations Management, is a

record of his original work carried out during execution of this project.

MR. RAJEEV SAHA

LECTURER

MECH. ENGG. DEPTT.

YMCA UNIVERSITY OF

SCIENCE AND TECHNOLOGY

 V

DECLARATION

I hereby certify that the project which is presented in this report entitled
“Implementation of Supply Chain i2 Solution at Escorts
India Ltd.”and submitted to YMCA UNIVERSITY OF SCIENCE AND
TECHNOLOGY, FARIDABAD for the partial fulfillment of the requirement
for the award of degree of M.B.A in Operations Management. I have not
submitted this Project elsewhere for the award of any other degree.

TARUN GARG

(MBA-337-2K9)
 VI

TABLE OF CONTENTS

• ACKNOWLEDGEMENT II
• CERTIFICATE III
• DECLARATION IV
• INDEX V-IX

INDEX

CHAPTER CONTENTS PAGE

NO. NO.

1. Tractor Industry 1

1.1 Global Tractor Industry 1

1.2 Indian Tractor Industry 2

2. Company Profile 4

2.1 Agri Machinery Business 6

2.2 Escorts AGM Supply Chain 6

2.3 Products 7

2.4 Sales and Marketing 7

2.4.1 Domestic Business 7

2.4.2 Export Business 8

2.4.3 New Business Lines 8

3. Manufacturing Facilities 9

3.1 Farmtrac 9
 VII

3.1.1 Engine PU 10

3.1.2 Rear Axle PU 11

3.1.3 Transmission PU 12

3.1.4 Tractor PU 13

3.2 Powertrac 14

3.2.1 Plant3 – Engine Assembly 15

3.2.2 Plant3 – Backend Assembly 15

3.2.3 Plant3 – Tractor Assembly 15

3.2.4 Plant1 – Casting PU 16

3.2.5 Plant1 – Transmission Components PU 16

3.2.6 CHD – Crankshafts 17

4. Planning And Scheduling 17

5. Supply Chain Management 19

5.1 Supply Chain 19

5.2 What is SCM? 19

5.2.1 Supply Chain Management(SCM) 20

5.2.2 Elements of Supply Chain 20

5.2.3 Interrelationship of the elements 20

5.3 Manufacturing Resource Planning (MRP II) 20

 VIII

5.3.1 Objectives 20

5.3.2 Principles and Characteristics 23

6. Project Scope 24

6.1 Factory Planner Terminologies 24

6.1.1 Planning Horizon 24

6.1.2 Demand and Order Categorization 24

6.1.3 Demand Prioritization 26

6.1.4 Forecast Netting 27

6.1.5 Factory Model 24

6.1.5.1 Items 28

6.1.5.2 Bill of Materials (BOM) 28

6.1.5.3 Routings and Operations 31

6.1.5.4 Cycle Times 32

6.1.5.5 Resources 34

6.1.5.5.1 Simultaneous Resources 34

6.1.5.6 Resource Calendars 35

6.1.5.7 Manufacturing Lot Sizes And

35
Consolidation Horizon

6.1.5.8 Vendor and Vendor Lead Times 36

6.1.5.9 Procurement MOQ and FLM 36

 IX

6.1.5.10 Vendor Share of Business 37

6.1.5.11 Procurement Consolidation

38
Horizon

6.1.5.12 Just-In-Time Procurements 38

6.1.5.13 Safety Stock Profiles 39

6.1.6 Supply Picture 40

6.1.6.1 On-Hand Inventory 40

6.1.6.2 Work In Process (WIP) 40

6.1.6.3 Pending Schedules 40

6.1.6.4 In-Transit Plant Material 41

6.1.6.5 In-Transit Vendor Material 41

6.1.7 Critical Business Requirements 42

6.1.7.1 Sub-Contracted Parts (OSP) 42

5.1.7.2 Same Part as OSP and BOP 42

5.1.7.3 Same Part as FMP and BOP 43

6.1.7.4 Same Part as FMP and OSP 43

6.1.7.5 Phantom Parts 44

6.2 Detailed Solution Design – Planning Process 45

6.2.1 Prioritize Demands 45

6.2.2 Net off Depot Transportation Time 46

 X

6.2.3 Inventory Assignment 47

6.2.4 Capacity Balancing 47

6.2.5 Schedule Release 48

6.2.6 Buffer Quantities for ‘C’ Class Items 50

7. Findings 51

8 Bibliography 52