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PROJECT PROPOSAL

ON(MS 100)

ROLE OF SUPPLY CHAIN MANAGEMENT & INTEGRATION FOR NEXT GENERATION CONSTRUCTION INDUSTRY AT ESSAR, GUJARAT

By

 NAME:                       ………………………

ENROLLMENT NO.: ……………………

                                                                                                            

UNDER GUIDANCE OF

……………………………..

Submitted in partial fulfillment of the requirements for qualifying

Master of Business Administration

In (OPERATION)

JULY, 2014

Indira Gandhi National Open University

Maidan Garhi,

New Delhi – 110068

 

 

TABLE OF CONTENTS

S. No. Heading
1. Title of the Project
2. Introduction to the Study

v Company Profile

3. Rationale  for the  study
4. Objectives  of the Study
5. Research Methodology
6. Expected Contribution from study
7. Limitation of the Study
8. Chapterisation
9. References

 

TITLE OF THE PROJECT:

ROLE OF SUPPLY CHAIN MANAGEMENT & INTEGRATION FOR NEXT GENERATION CONSTRUCTION INDUSTRY AT ESSAR, GUJARAT

  1. INTRODUCTION TO THE STUDY

Supply chain management is extremely current due to its success in other industries and therefore considered to be the future in construction industry.  Supply chain management has been in use before the recent hype in the construction industry. Supply chain management (SCM) is a concept that has flourished in manufacturing, originating from Just-In-Time (JIT) production and logistics. Today, SCM represents an autonomous managerial concept, although still largely dominated by logistics. SCM endeavors to observe the entire scope of the supply chain. All issues are viewed and resolved in a supply chain perspective, taking into account the interdependency in the supply chain. SCM offers a methodology to relieve the myopic control in the supply chain that has been reinforcing waste and problems.

Why Supply Chain Management in Construction?

Although engineers, construction managers and contractors do not typically consider the supply chain or SCM, they deal with the supply chain and make SCM decisions on a daily basis. In construction, supply chain refers to the end-to-end “chain” of stakeholders and partners that come together both on individual projects and during a firm’s business life. In a project, a supply chain includes the owner, planner, designer, architect, engineer, construction manager, general contractor, subcontractors, suppliers, distributors, and manufacturers. Throughout a firm’s business life, components of a supply chain may also include accounting, human resources, equipment fleet operations, etc. Within the construction project, the supply chain can be simply conceived with the owner at the top followed by designer, contractor, specialist contractors/subcontractors/suppliers etc., forming various levels of supply chain. Demand can be seen as flowing down the chain in terms of information, e.g. project briefs, drawings, schedules, works orders etc, with a flow of goods and materials flowing in the opposite.

The construction sector is renowned for being traditional and lagging behind in areas such as IT and discrimination; supply chain management is no exception. The construction industries reaction to the idea of supply chain management was slow and perhaps even reluctant. This is understandable, during the 80’s and early 90’s construction industries were concentrating on surviving a recession, creating happy relations with already ‘adversarial contractual relationships’ was the least of construction professionals concerns.

 

Key Components of Supply Chain Strategy-

Strategy supply chain can be considered as comprising the following key components.

  1. Sourcing strategy
  2. Distribution strategy
  3. Inventory strategy
  4. Customer service strategy
  5. Integration strategy

 

COMPANY PROFILE:

 

  1. RATIONALE FOR THE STUDY

Supply chain management can play major roles in construction industry. The principle roles of SCM are covered by the generic SCM methodology. The SCM offers general guidelines that can be used to analyze, reengineer, properly coordinate, and constantly improve virtually the complete construction supply chain, resolving basic problems and the myopic control that have been plaguing the supply chain. This would be practically impossible to realize in the short term. Therefore, initially, the SCM methodology is properly deployed on a lower scale, addressing partial supply chain problems, involving a limited number of supply chain actors. Due to its recurring character, the SCM methodology implies a continuous improvement process of which the scope can be enlarged over time, involving an increasing number of areas of application.

 

 

4. OBJECTIVES OF THE STUDY

  1. RESEARCH METHODOLOGY

RESEARCH DESIGN:

The first step in developing any sample design is to clearly define the set of objects, as my study is exploratory, the sampling design includes three decisions i.e. sampling unit, Sample size & Sampling procedure.

METHOD WILL USE TO CLASSIFY DATA:

The data will be collected using both by primary data collection methods as well as secondary sources.

DATA COLLECTION APPROACH

The base on which a study rests is the information that is embedded in it. The data for this study will be obtained as a blend of both Secondary and Primary sources.

PRIMARY DATA: Most of the information will be gathered through primary source.  The methods that will be collected primary data are:

 

 

SECONDARY DATA: The secondary data will be collected through:

  • Internet sites
  • Books and article on Supply Chain Management.

SAMPLE SIZE: 100 m

Universe:

Various Divisions/ Departments under

ESSAR Company, Gujarat

CONVENIENT SAMPLING: it is that type of sampling where the researcher selects the sample according to his or her convenience.

TOOL OF ANALYSIS:

Data collection will be done through questionnaire. The Ms-word & Ms-Excel software will be used to analyze the data. Different types of graphs & Charts use to interpretation the findings diagrammatically. They are:

  • Pie Charts
  • Bar Graphs
  • Likert scale Method 
  1. EXPECTED CONTRIBUTION FROM STUDY

The study discloses the objective, concept, significance, and role of supply chain Mangement & integration for next generation construction industry.  Supply chain management (SCM) is a great opportunity for the construction industry primarily to reduce cost and time, and thus improve profitability. SCM principles seem to have much strength to smoothen and integrate the construction processes. The supply chains in construction could be divided into two major groups as materials chain and the construction chain, which would help to separate the procurement and management operations. However, both chains are linked through a SCM database, which is further linked with the central project database. This would ensure the smooth flow of information within the different chains and results in increased collaboration within the supply chain partners. Obstacles for supply chain management are found to be poor level of logistical competence, lack of guidance for creating strategic alliances, inability to integrate the company’s internal procedures, strong project focus as well as the attitudes and traditions in the construction industry.

 

  1. LIMITATIONS OF THE STUDY
  • There may be lack of time on the part of respondents.
  • There may be some bias information provided by company professionals.
  • As only single area will be surveyed or covered, it does not represent the overall view of each field.
  • It is very much possible that some of the respondents may give the incorrect information.
  1. CHAPTERISATION

Detailed/final project report will include the following chapters;

  1. Introduction of the study
  2. Company overview
  3. Objective and scope of study
  4. Review of Literature
  5. Research Methodology
  6. Data analysis and interpretation
  7. Findings and suggestion
  8. Conclusion
  9. Limitation of the study
  10. References
  11. Appendix (Questionnaire prepared for conducting study will be attached and other papers which have not been mentioned above will be included, if required)
  1. REFRENCES

 

  1. ANON., 2004. Supply Chain Management. Constructing excellence. pp.1-4
  2. ANON., 2005. Nec3 engineering and construction contract. 9th ed. London: Thomas Telford
  3. BRISCOE, G. and DAINTY, A., 2005. Construction Supply Chain Integration: an Elusive Goal?. Supply Chain Management: An International Journal, 10(4), pp. 319-325.
  4. COX, A., 1999. Power, Value and Supply Chain Management. Supply Chain Management: An International journey, 4(4), pp.167-175.
  5. DAVIS, P. and LOVE, P. 2010. Alliance contracting: adding value through relationship development. Engineering, Construction and Architectural Management. 18(5), pp.444-461
  6. HILLBRANDT, P., CANNON, J. and LANSLEY, P., 1995. The Construction Industry – In and Out of Recession. Basingstoke: Macmillan.
  7. KELLY, J., MORLEDGE, R., and WILKINSON, S., 2002. Best Value in Construction. 1st ed. Oxford: Blackwell Publishing.
  8. KHALFAN, M. and MCDERMOTT, P., 2007. Integrated Supply Chain – An Example from the UK Construction Industry. The construction and building research conference of the Royal Institute of Chartered Surveyor, 1(1), pp.1-13.
  9. PRYKE, S., 2009. Construction Supply Chain Management. 1st ed. Chichester: Blackwell Publishing.
  10. www.essar.com.

 

  1. QUESTIONNAIRE

Q1. How successful do you think is your company in managing its supply chain in general?

  • Not successful at all
  • Not successful
  • Somewhat successful
  • Successful
  • Very successful

Q2. Does your company have a separate logistics or Inventory department?

  • Yes
  • NO

Q3. Does your company have a clear SCM and operation strategic plan?

  • Yes
  • NO

Q4. How satisfied are you with the current inventory policy regarding SCM?

  • Not at all
  • Somewhat
  • Satisfied
  • Quite satisfied
  • Very satisfied

Q5. Is supply chain management having all the address of the developer branches of the company?

  • Yes
  • NO

Q6. Rate the working strategies of supply chain management department on the basis of the current programs?

  • Outstanding
  • Excellent
  • Good
  • Average

Q7. Is the supply chain management department is having sufficient transportation and capacity?

  • Yes
  • Not sufficient

Q8. Choose the right option, where the supply chain department is facing problem in taking care of the raw material?

  • During storage
  • Packaging
  • Testing of packaging
  • Evaluation of defective raw material

Q9. How do you rate the delivery activity and Inventory management of the department?

  • Excellent
  • Very effective
  • Good
  • Average

Q10. Is there any case recorded by the supply chain department in which the production department complained late delivery of raw materials?

  • Yes
  • No

Q11. Choose the right option, where the supply chain department is facing problem in taking care of the raw material in Essar?

  • During storage
  • Packaging
  • Testing of packaging
  • Evaluation of defective raw material

Q12. Is there any case recorded by the supply chain department of Essar in which the production department complained late delivery of raw materials?

  • Yes
  • NO

Q13. According to the current growth process of the Essar, which of the following needs much attention and progress to boost the production?

  • Operational activities
  • Tactical activities
  • Current programming strategies

Q14. Are you happy with the SCM of Essar?

  • Yes
  • No