Page 26 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 1: 21st Century Supply Chains

quality objectives were laid down by the top management covering all the departmental Notes
functions and were updated every year. These objectives were clearly measurable in
terms of performance, which facilitated an effective and efficient review by management.
The effectiveness of the quality policy and objectives were discussed in every management
review meeting to facilitate continuous improvement, promoting commitment to quality
and achievement of objectives. Simultaneously, DELTA-SIGMA had appointed selling
agents for marketing its products to encash the brand image of DELTA group. They would
interact with customers, finalize orders and obtain the orders in the name of DELTA-
SIGMA. DELTA would provide after-sales and product support. DELTA-SIGMA would
provide spare parts to the customers through DELTA and/or their dealers. The company
mostly focused on the satisfaction and expectations of the present and potential customers.
In order to satisfy the customers, management had taken some initiatives such as
understanding customer requirements, determination of key product characteristics,
identifying and assessing competition in the market. Various documented procedures
were established and implemented in the organization to assess the customer needs and
satisfaction.
Automation
Right from the beginning, the company focused on computerization of various activities
and covered functions like, Engineering, Purchase, Stores, Issue, WIP, Bill Passing,
Attendance, etc. They installed in-house designed FoxPro based software. In 1999, a major
up-gradation in terms of latest Client/Server technology and Satellite communication
with other DELTA works/offices and inter-departmental communication had been done.
They also Installed Enterprise Resource Planning (ERP) system. Initially, the company
had faced lots of resistance from the employees during implementation of ERP. Data
feeding and understanding the new system was quite a difficult task. But, conducting
training programs for the employees of all the departments and at each level, motivating
the employees and explaining the advantages of the new system, organization had
succeeded and most of the departments had been connected through ERP. Since 2001, latest
ERP system – SAP was controlling the company’s day to day operations in Product Planning
(PP), Materials Management (MM), Quality Management (QM), Production Management
(PM), Financial (FI), and Sales and Distribution (SD) modules. IT department activities
were outsourced to DELTA technologies. Computer-based various fabrication-related
activities like, robotic welding; CNC gas and laser cutting machines etc. had been started.
Painting line with conveyors had been installed for shot blasting, priming and painting of
components. The company had its own standard room equipped with latest inspection
measuring and testing equipment and their calibration facilities.
Restructuring

Till 2001, the company was working on the concept of departments and had three separate
departments for purchase, quality control and production. In the year 2001, the company
underwent restructuring and made two separate divisions for Backhoe loaders and
Compactors. These departments were supposed to look after purchasing, quality control
as well as production of their line. Charge of Compactor Division was given to Ramesh
Sharma, who was previously the head of quality control department. Sharma was allotted
a new team of people picked up from various departments. But, he had an edge since he
had good rapport with some of the workmen who had already worked with him in other
departments. Sharma was assigned the responsibility of increasing the production by 45%
with the existing capacity, staff and infrastructure. New responsibilities of Sharma were
purchase of parts, subassemblies, chassis manufacturing, and sub-assembly of outsourced
components, quality testing and delivery of products. To improve productivity, Sharma
formed PSGs (Problem Solving Groups) and involved middle level managers, supervisors
Contd...

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