Maharashtra State Board of Technical Education,

Mumbai (Autonomous)(ISO-9)

001-2008) (ISO/IEC 27001:20013)

TITLE

STUDY MATERIAL SUPPLY SYSTEM

Academic Year: 2023-24 Institute Code:

0563 Program: Mechanical Engineering

Semester: Sixth

Course: ENTREPRENEURSHIP DEVELOPMENT Course Code: 22032

Group No: 13
 Maharashtra State Board of Technical Education, Mumbai

CERTIFICATE
This is to certify that,

Roll Student Name Seat No Enroll No

No
GAYAKAR ABHISHEK
43 CHANDRAKANT 2205630598
44 GARATE OMKAR BHAGOJI 2205630600
45 KADAM HARSHAL WAMAN 2205630603
Of Sixth Semester of Diploma in Mechanical Engineering Department of Institute Pravin
Patil College of Diploma Engineering and Technology, Bhayander (E) (Code: 0563) has
completed the Micro Project satisfactorily in subject ENTREPRENEURSHIP
DEVELOPMENT (22032) for the academic year 2023–2024 as prescribed in the
curriculum.

Place: Bhayander (E)

Date: 12/03/2024

Subject Teacher Head Of The Dept. Principal

Mr, Jitendra Ingale Mr.Vishal Kandalgaonkarr Mrs. R. B. Patil
 PART A

Micro Project Proposal

Brief Introduction: Supply chain management involves the coordination of several areas such as production,
warehouse, location and transportation among its members to achieve the best combination of response capacity
and efficiency to the market it supplies. There are five areas over which the company can take defining decisions
regarding its supply chain capacity, such as production, warehouse, location, transportation and information [1].
This paper will focus on warehouse and production, in the specific case of a constant-velocity joints (CVJ)
manufacturing company.
Aim of the Micro-Project:
1. To study about Business Development
2. To understand the concept of entrepreneurship, Self-confidence.
3. To aware use of the various Business plans, types of Marketing.
3.0 Action Plan:

Planned Planned
Sr. Details of Activity Start Date Finish Date Name of Responsible
No Team Members

Discussion and finalization of topic 02/01/2024 08/01/2024 GARATE OMKAR BHAGOJI

1
Collection of Data & Literature Review 09/01/2024 15/01/2024 KADAM HARSHAL WAMAN
2
Discussion on outline of Content & 16/01/2024 29/01/2024 GAYAKAR ABHISHEK
CHANDRAKANT
3 Formulation of the Content

Editing and proof Reading of Content 30/01/2024 05/02/2024 KADAM HARSHAL WAMAN
4
5 Compilation of Report 06/02/2024 17/02/2024 GARATE OMKAR BHAGOJI

6 Preparing Presentation 20/02/2024 26/02/2024 GARATE OMKAR BHAGOJI

7 Viva
27/02/2024 04/03/2024 GAYAKAR ABHISHEK
CHANDRAKANT

Final submission of Micro Project 05/03/2024 12/03/2024 GARATE OMKAR BHAGOJI

8
4.0 Resources Required:

Sr. N o Name of Resource/Material Specifications Qty Remarks

1 MS word MS OFFICE 2010 1 For report purpose

2 Open Learning Sources Websites, magazines 1 For information

 PART B
Micro Project Report

STUDY MATERIAL SUPPLY SYSTEM

1.0 Brief Introduction:

The key strategy of supply chain is to be efficient throughout the chain, and in order to achieve this goal
many worldwide companies are adopting Lean Manufacturing production practices, which lead to a better
competitive position [2]. After the benefits obtained when implementing these practices, an evident problem
arise such as losses due to a lack of material.
Excess of raw material inventories and work in process are a major concern for an efficient supply chain, and
to mitigate their impact flow tools such as pull system, SMED (single-minute exchange of died), balanced
production, groups’ technology, etc, are applied. However, in the extent the model changes and process are
decreased, the continuity of cells is in risk due to lack of materials [3].
2.0 Aim of the Micro-Project:
1. To study about Business Development
2. To understand the concept of entrepreneurship, Self-confidence.
3. To aware use of the various Business plans, types of Marketing.

3.0 Course Outcomes Integrated:

a. Identify your entrepreneurial traits.
b. Identify the business opportunity that suits you.
c. Use the support systems to zero down to your business idea.
d. Develop comprehensive business plans.
e. Prepare plans to manage the enterprise effectively.

4.0 Actual Procedure Followed:

5.0 Actual Resources Used:

Sr. No Name of Resource/Material
Specifications Qty Remarks
1 MS word MS OFFICE 2010 1 For report purpose

2 Open Learning Sources Websites, magazines 1 For information

 6.0 Outputs of the Micro-Project
Due to the nature of the company it is not possible to modify actual facilities, since the company is classified as tier
one within the automotive industry, i.e., it delivers the products directly to several car manufacturers’ plants such
as VW, Ford, Nissan, Honda, GM, etc. To increase the rate for success in a Lean Manufacturing project,
Standridge stands that a convenient alternative is to apply simulation

7.0 Skill Developed/Learning out of this Micro-Project:

The manufacturing plant where this project was developed produces constant-velocity joints (CVJ),
fundamental means of transmitting power from the differential to the wheels. The production system has 20
cells but only 17 are considered because of the demand of work; each one produces a family of products for
different car manufacturers such as Ford, Renault, Hyundai, VW, GM, etc. The production quantities, the
model and sequence in which they will be produced are recorded in the heijunka box. This can be translated
as production leveling or smoothing and within Lean Manufacturing practices, it suggests to process small
product lots on a frequent basis

8.0 Conclusion: Three different scenarios were studied, current supply system, supply system using
clusters defined by HCA method and random supply method. According to the results listed in Table 6 from
the previous section, it is recommended to use the random supply method, taking into account that the goal is
to reduce losses by lack of material.

The random supply system is very complex, since any router (the first that is available) can take materials
from any warehouse (plastics or machined) and deliver them to the production cell that is making its request.
To decrease complexity, it is recommended to combine the system with an Andon system, which has visual
and audio elements helping to inform about downtimes under certain circumstances. In this case, a blue color
is suggested to point out that materials are required since most authors suggest the blue color for the lack of
material.

9.0 Reference:

1) Chakraborty Subhayan. (2020). India seeks stronger rules of origin as it urges ASEAN for FTA
review. Business Standard.
2) ]-M. H. Hugos. “Essentials of Supply Chain management”, third edition. United States of America.
John Willey, 2011. pp. 21-26.
3) C. R. Standridge and J. H. Marvel. “Why lean needs simulation”. Proceedings of the 2006 Winter
Simulation Conference. p.1907-1913. ISBN: 1-4244-0501-7
 Micro Project Evaluation Sheet Annexure–IV

Name of Student : Enrollment No Roll No

Name of Program : Mechanical Engineering Semester:
sixth Course Title : Entrepreneurship Development Code: 22032
Title of Micro Project :

Course Outcome Achieved:

a. Identify your entrepreneurial traits.
b. Identify the business opportunity that suits you.
c. Use the support systems to zero down to your business idea.
d. Develop comprehensive business plans.
e. Prepare plans to manage the enterprise effectively.

Sr. Poor (1-3) Average Good Excellent Sub

No Characteristics to be assessed (4-5) (6-8) (9-10) Total
(A) Process and Product Assessment (Convert above total marks out of 6 Marks)

1 Relevance to the course

Literature Review / Information

2 Collection
Completion of the Target as per
3 project proposal
Analysis of Data and representation
4
5 Quality of Prototype / Model

6 Report Presentation

(B) Individual Presentation / Viva (Convert above total marks out of 4 Marks)

7 Presentation

8 Viva

(A) Process and Product Assessment (B) Individual Presentation / Viva Total Marks
(6 Marks) (4 Marks) (10)

Comments / Suggestions about team work / leadership / inter-personal communication (if any)

Name and Designation of Teacher: Mr. Jitendra Ingale Signature:

 Micro Project Evaluation Sheet Annexure–IV

Name of Student : Enrollment No Roll No

Name of Program : Mechanical Engineering Semester:
sixth Course Title : Entrepreneurship Development Code: 22032
Title of Micro Project :

Course Outcome Achieved:

a. Identify your entrepreneurial traits.
b. Identify the business opportunity that suits you.
c. Use the support systems to zero down to your business idea.
d. Develop comprehensive business plans.
e. Prepare plans to manage the enterprise effectively.

Sr. Poor (1-3) Average Good Excellent Sub

No Characteristics to be assessed (4-5) (6-8) (9-10) Total
(A) Process and Product Assessment (Convert above total marks out of 6 Marks)

1 Relevance to the course

Literature Review / Information

2 Collection
Completion of the Target as per
3 project proposal
Analysis of Data and representation
4
5 Quality of Prototype / Model

6 Report Presentation

(B) Individual Presentation / Viva (Convert above total marks out of 4 Marks)

7 Presentation

8 Viva

(A) Process and Product Assessment (B) Individual Presentation / Viva Total Marks
(6 Marks) (4 Marks) (10)

Comments / Suggestions about team work / leadership / inter-personal communication (if any)

Name and Designation of Teacher: Mr. Jitendra Ingale Signature:

 Micro Project Evaluation Sheet Annexure–IV

Name of Student : Enrollment No Roll No

Name of Program : Mechanical Engineering Semester:
sixth Course Title : Entrepreneurship Development Code: 22032
Title of Micro Project :

Course Outcome Achieved:

a. Identify your entrepreneurial traits.
b. Identify the business opportunity that suits you.
c. Use the support systems to zero down to your business idea.
d. Develop comprehensive business plans.
e. Prepare plans to manage the enterprise effectively.

Sr. Poor (1-3) Average Good Excellent Sub

No Characteristics to be assessed (4-5) (6-8) (9-10) Total
(A) Process and Product Assessment (Convert above total marks out of 6 Marks)

1 Relevance to the course

Literature Review / Information

2 Collection
Completion of the Target as per
3 project proposal
Analysis of Data and representation
4
5 Quality of Prototype / Model

6 Report Presentation

(B) Individual Presentation / Viva (Convert above total marks out of 4 Marks)

7 Presentation

8 Viva

(A) Process and Product Assessment (B) Individual Presentation / Viva Total Marks
(6 Marks) (4 Marks) (10)

Comments / Suggestions about team work / leadership / inter-personal communication (if any)

Name and Designation of Teacher: Mr. Jitendra Ingale Signature:

 INDEX

SR TITLE PAGE
NO: NO
1 INTRODUCTION

2 MATERIALS AND METHODS

3 PRODUCTION SYSTEM
DESCRIPTION
4 IMPORTANCE OF MATERIAL SUPPLY
SYSTEM
5 RANDOM SUPPLY

6 FUNCTIONS OF MATERIAL
MANAGEMEN
7 CONCULSION

8 REFERENCES
 INTRIDUCTION

Supply chain management involves the coordination of several areas such as production, warehouse, location
and transportation among its members to achieve the best combination of response capacity and efficiency to the
market it supplies. There are five areas over which the company can take defining decisions regarding its supply
chain capacity, such as production, warehouse, location, transportation and information [1]. This paper will focus
on warehouse and production, in the specific case of a constant-velocity joints (CVJ) manufacturing company.
The key strategy of supply chain is to be efficient throughout the chain, and in order to achieve this goal many
worldwide companies are adopting Lean Manufacturing production practices, which lead to a better competitive
position [2]. After the benefits obtained when implementing these practices, an evident problem arise such as
losses due to a lack of material.
Excess of raw material inventories and work in process are a major concern for an efficient supply chain, and to
mitigate their impact flow tools such as pull system, SMED (single-minute exchange of died), balanced production,
groups’ technology, etc, are applied. However, in the extent the model changes and process are decreased, the
continuity of cells is in risk due to lack of materials
 MATERIALS AND METHODS

2.1. Description of the current production system

It is very important to understand the current production system to define correctly the problem.

2.2. Description of the supply system

In the production system, there is a supply chain system, that provides materials to the cells production.

2.3. Simulation model

It is a platform that let us analyze the supply system in different scenarios. Seven steps were followed and will be
described in section 6.

2.4. Recommendations
After running the simulation model, it is possible to give recommendations based on the results.
 PRODUCTION SYSTEM DESCRIPTION

The manufacturing plant where this project was developed produces constant-velocity joints (CVJ), fundamental
means of transmitting power from the differential to the wheels. The production system has 20 cells but only 17 are
considered because of the demand of work; each one produces a family of products for different car manufacturers
such as Ford, Renault, Hyundai, VW, GM, etc. The production quantities, the model and sequence in which they
will be produced are recorded in the heijunka box. This can be translated as production leveling or smoothing and
within Lean Manufacturing practices, it suggests to process small product lots on a frequent basis [8].

Figure 1 shows the cell 3; every cell has the same configuration. Each cell counts with 4 operators who are
responsible for the assembly of each one of the components up to final product. They take all parts that compose
the product from a location called usage point. A resource called supplier boy, who puts each component in the
usage point, avoids the operators from moving in search of components.
 IMPORTANCE OF MATERIAL SUPPLY SYSTEM

The need for materials management was first felt in manufacturing undertakings. The servicing organizations also
started feeling the need for this control. And now even non-trading organizations like hospitals, universities etc.
have realized the importance of materials management. Every organization uses a number of materials. It is
necessary that these materials are properly purchased, stored and used.

Any avoidable amount spent on materials or any loss due to wastage of materials increases the cost of production.
The object of materials management is to attack materials cost on all fronts and to optimize the overall end results.
Materials management connotes controlling the kind, amount , location and turning of the various commodities
used in and produced by the industrial enterprises. It is the control of materials in such a manner that it ensures
maximum return on working capital.

1. The material cost content of total cost is kept at a reasonable level. Scientific purchasing helps in acquiring
materials at reasonable prices. Proper storing of materials also helps in reducing their wastages. These factors help
in controlling cost content of products.

2. The cost of indirect materials is kept under check. Sometimes cost of indirect materials also increases total cost
of production because there is no proper control over such materials.

3. The equipment is properly utilized because there are no break downs due to late supply of materials.

4. The loss of direct labour is avoided.

5. The wastages of materials at the stage of storage as well as their movement is kept under controL

6. The supply of materials is prompt and late delivery instances are only few.

7. The investments on materials are kept under control as under and over stocking is avoided.

8. Congestion in the stores and at different stages of manufacturing is avoided.

 RANDOM SUPPLY

Figure 2 shows the architecture proposed for random supply. It can be detected that routers are able to load
materials from plastics and machined warehouse and deliver them to the production cell as may be required.

This means that any router can take materials from the plastics or machined warehouse and deliver them to the
production cell that requires it, and are not restricted to supply only to any given production cell. The performance
is assessed in the simulation model.
 FUNCTIONS OF MATERIAL MANAGEMEN
Material management covers all aspects of material costs, supply and utilization. The functional areas involved in
material management usually include purchasing, production control, shipping, receiving and stores.
1. Production and Material Control:
Production manager prepares schedules of production to be carried in future. The requirements of parts and
materials are determined as per production schedules. Production schedules are prepared on the basis of orders
received or anticipated demand for goods. It is ensured that every type or part of material is made available so that
production is carried on smoothly.

2. Purchasing:
Purchasing department is authorized to make buying arrangements on the basis of requisitions issued by other
departments. This department keeps contracts with suppliers and collects quotations etc. at regular intervals. The
effort by this department is to purchase proper quality goods at reasonable prices. Purchasing is a managerial
activity that goes beyond the simple act of buying and includes the planning and policy activities covering a wide
range of related and complementary activities.

3. Non-Production Stores:
Non-production materials like office supplies, perishable tools and maintenance, repair and operating supplies are
maintained as per the needs of the business. These stores may not be required daily but their availability in stores
is essential. The non-availability of such stores may lead to stoppage of work.

4. Transportation:
The transporting of materials from suppliers is an important function of materials management. The traffic
department is responsible for arranging transportation service. The vehicles may be purchased for the business or
these may be chartered from outside. It all depends upon the quantity and frequency of buying materials. The
purpose is to arrange cheap and quick transport facilities for incoming materials.

5. Materials Handling:
It is concerned with the movement of materials within a manufacturing establishment and the cost of handling
materials is kept under control. It is also seen that there are no wastages or losses of materials during their
movement. Special equipment’s may be acquired for material handling.

6. Receiving:
The receiving department is responsible for the unloading of materials, counting the units, determining their
quality and sending them to stores etc. The purchasing department is also informed about the receipt of various
materials.
 CONCLUSION

Three different scenarios were studied, current supply system, supply system using clusters defined by HCA
method and random supply method. According to the results listed in Table 6 from the previous section, it is
recommended to use the random supply method, taking into account that the goal is to reduce losses by lack of
material.

The random supply system is very complex, since any router (the first that is available) can take materials from
any warehouse (plastics or machined) and deliver them to the production cell that is making its request. To
decrease complexity, it is recommended to combine the system with an Andon system, which has visual and
audio elements helping to inform about downtimes under certain circumstances. In this case, a blue color is
suggested to point out that materials are required since most authors suggest the blue color for the lack of
material.

The Andon system should be synchronized to bond the cell needs with the first available router since it was able
to implement it in the simulation process. However, to apply it in the actual system would be hard to accomplish,
but not impossible.

To make the final decision, several criteria must be considered. For example, if clustering supply method is used,
the materials supply management is made easier, in great extent due to the fact that every router knows in
advance the cells that will be supplied, but it faces losses by lack of materials.

On the other hand, if random supply is selected, the milestone will be that different routers deliver at the exact
moment to the production cells, i.e, when they need it.

Using this proposal, it makes it easier to apply flow tools related to Lean Manufacturing, like small production
lots, to make frequent model changes, balanced production, WIP reduction, etc., since materials will be delivered
at the moment they are required.

An important restriction for applying this solution is that company’s production must be performed under Lean
Manufacturing practices. Besides, it is required that staff is capable to make simulations, in order to first analyze
the supply of materials in the simulation model.
 REFERENCES

 Materials Supply System Analysis Under Simulation Scenarios in a Lean Manufacturing Environment
Materials Supply System Analysis Under Simulation Scenarios in a Lean Manufacturing Environment
- ScienceDirect (sciencedirectassets.com)

 M. H. Hugos. “Essentials of Supply Chain management”, third edition. United States of America.
John Willey, 2011. pp. 21-26.

 D. Rajenthirakumar, and R. Ghowtam Shankar, “Analyzing of the benefits: a consumer durables

manufacturing company case study,” International Journal of engineering. Annals of Faculty Engineering
Hunedoara. London, Tome IX, Fascicule 3. pp. 335–339, 2011.

 C. R. Standridge and J. H. Marvel. “Why lean needs simulation”. Proceedings of the 2006
Winter Simulation Conference. p.1907-1913. ISBN: 1-4244-0501-7.

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