A Sectoral Project Synopsis on Performance Measurement in supply chain management of Usha Martin Ltd

DEPARTMENT OF MANAGEMENT

Under the guidance of: by Dr. Supriyo Roy Kumar Sinha

Submitted Rahul MBA/1062/2010

Company Profile
Usha Martin was started in 1961 in Ranchi, Jharkhand as a wire rope manufacturing company, the group has set new standards in the manufacture of wire rods, bright bars, steel wires, speciality wires, wire ropes, strand, conveyor cord, wire drawing and cable machinery. With continuous growth in both the domestic and international markets, Usha Martin, the Groups flagship company has emerged as Indias largest and the worlds second largest steel wire rope manufacturer. For Usha Martin, the path to sustainable growth was long; the management constantly tried out innovative business practices. With initiative to diversify the customer base by venturing into the international markets, moving up the value chain and fully integrating its business process to maximize stakeholder value.

Introduction
Business organizations need to capitalize on Supply Chain management (SCM) capabilities and resources to bring products and services to the market faster, at the lowest possible cost, with the appropriate product and service features and the best overall value. Performance measures are important to the effectiveness of SCM. Companies can no longer focus on optimizing their own operations to the exclusion of their suppliers' and customers' operations. Supply Chain Performance Measures (SCPM) serve as an indicator of how well the SCM system is functioning. Measuring SC performance can facilitate a greater understanding of the SCM and improve its overall performance. There is an emerging requirement to focus on the performance measurement of the SCM in which company is a partner. Interest on performance measurement has notably increased in the last 20 years. Companies have understood that for competing in continuously changing environment, it is necessary to monitor and understand firm performances.

Research Methodology
Title of the Project: Performance Measurement in supply chain management of Usha Martin Ltd Objective of the study: 1) To identify strengths and limitations of existing frameworks of SCM. 2) To identify SCM success factors as well as reasons for failures. 3) To identify the gaps and suggest a new and easy way to implement solution for supply chain.

Scope of the Study The study is aimed at measuring the effectiveness of Supply chain Management from all aspects. The study is confined to the geographical limits of Ranchi

Performance Measurement Matrix Measurement has been recognized as a crucial element to improve business performance. Various performance metrics are in place for measuring effectiveness of Supply Chain Performance which is: The Balance Scorecard 1) Financial perspective a. Sourcing cost b. Manufacturing cost c. Warehousing cost d. Logistics cost e. Accounting processes 2) Business process perspective a. Sourcing b. Planning c. Manufacturing d. Delivering/storing 3) Growth and learning Perspective a. Innovation b. Social Responsibility c. HR 4) Customer Perspective a. Sales/Customer Support b. Logistics Supply chain measures, were divided into two categories internal and external. Internal vision of supply chain enhances cost and management efficiency and externally reliability, responsiveness and flexibility. Internal 1) Supply chain costs a. Total Supply Chain Management Costs 2) Supply Chain Asset Management Efficiency a. Asset Turns b. Cash-to-cash cycle time External 1) Supply Chain Delivery Reliability a. Fill Rates

2) Supply Chain Responsiveness a. Delivery Performance 3) Supply Chain Flexibility a. Supply Chain Response Time

Types of Research In this project we are going to conduct: Descriptive research: A type of conclusive research that has its major objective to describe something, usually business characteristics or functions. Major methods employed in descriptive research are survey and observation of that we have used survey using questionnaires.

Sample A sub group of the elements of the population selected for participation in the study. Sample characteristics called statistics are then used to make inferences about the population parameters. We have chosen sample of people in Ranchi. Sampling technique: Random sampling Sample Unit: Employees of Usha martin Area of survey: Ranchi

References:
Sahay B.S., Supply Chain Management in the 21st Century Chopra Sunil and Pete Meindl, Supply Chain Management, Strategy, Planning and Operation. http://www.ushamartin.com/aboutus/profile.htm http://www2.egi.ua.pt/cursos/files/GCA/EuromaSonia2006Full%20paper.pdf http://scrmblog.com/review/measuring-supply-chain-performance http://www.ijbmss-ng.com/vol2no4_ijbmss/ijbmss-ng-vol2-no4-pp19-34.pdf http://www.blueconsultoria.com.br/wp-content/uploads/2009/07/Performancemetrics-in-supply-chain-management-BSC-Case-Study_Jack-PC-Kleijnen1.pdf http://kisi.deu.edu.tr/mert.topoyan/dosyalar/003.pdf http://ftp.gunadarma.ac.id/idkf/idkf-wireless/aplikasi/e-commerce/lapide.pdf