Supply Chain Management in Manufacturing

An Evaluation of Supply Chain Practices: A Case Study of Star Jute Mills Limited

Executive Summary

The topic of this project work is “An Evaluation of Supply Chain Practices: A Case Study of Star Jute Mills Limited”. This project work was done to evaluate the limitation and problems in supply chain practices in Star Jute mills Limited (SJML). and then to analyze plans to overcome the problems by effective supply chain strategies. This report is mainly based on work experience and secondary data from various sources like books, articles, various related websites, previous reports and project works. Descriptive way of methodology was followed to present this report.

There are problems in supply chain management and those problems are discussed in this report. Based on those limitations it has been tried to suggest possible plans to improve the supply chain management in Star Jute Mills Limited. This paper reveals that the evaluation of supply chain practices of Star Jute Mills Limited mainly depends on some aspects such as facility, inventory, transportation, information, sourcing.

The objective of this study is to identify the reasons for such development and to highlight the theoretical frameworks which could improve supply chain performance in terms of production level and entire supply chain management in the future.

It is exhibited the evaluation of supply chain management of Star Jute Mills Limited that in some of the areas are satisfied such as capacity, utilization idea, production cost, running machine in cyclic process, quality losses, purchases, inventory, outbound and inbound transportation cost, transport utilization, sharing information among employees, bureaucratic complexity, following supply lead time, supplier reliability, continuous production process and total quality management reduces production cost etc.

The overall results of the study show that the various factors in this organization are problematic such as: continuous production is going on time, finished goods in terms of market demand, present mode of transportation, upgraded information technology, structure procurement process to satisfy company demand, entire workforce gives efficient output etc. This study concluded that the authority of Star Jute Mills Limited should be careful in maintained in the areas where take some necessary action. Such as: facility, inventory, transportation, information, sourcing.

Since this is not an official activity on behalf of the corporation, information may be lacking because of corporate secrecy. The intentions for improving supply chain management and the experience gained from the workplace are the foundation of this project paper, which draws on secondary data from several sources. Therefore, the organizational position as it actually exists may differ from industry to industry and may not be represented in this study.

Chapter-01: Introduction

1. Organizational Overview

Star Jute Mills Limited is a jute product manufacturing industry in Bangladesh. The Star Jute Mills Ltd. is divided into two units one is Hessian unit (Mill No-1) and another is sacking unit (Mill No-2). In Mill No-1, hessian cloths and bags are produced and sacking products are produced in Mill-2. It was registered in 1956. Commercially Mill no. 01 has been producing jute products since 12 August 1958 and Mill-2 has been doing the same since 1 July 1967.

There are 560 looms in Hessian unit and 210 looms in Sacking unit. Besides these, officers and staffs residential quarter, guest house, officers club, labor club, medical center, mosque, pond along with natural beauties. There is better communication facility from the city of Khulna to Dhaka, Chittagong, and Rajshahi by roadway, river way and railway. There are opportunities for loading and unloading raw material and finished goods.

1.1.1 History of Star Jute Mills Limited

Once upon a time when the demand of raw Jute and Jute goods was increasing gradually then Star Jute Mills started construction in 1955 by M/S Duncan and Company. In 1972 Star Jute Mills Limited was nationalized by the Government of Peoples Republic of Bangladesh under Presidential Order no-27. After nationalization this mill is directly operated by Bangladesh Jute Mills Corporation (BJMC) under the Ministry of Textiles and Jute.

It stands on the east side of the Bhairab River. It is situated at Chandanimahal under Digholia police station in industrial area in Khulna. A big market is also adjacent to mill gate No.2 which is situated at the north Side of the mill as well as Senhati union parishad. Although a police camp along with retail store market is situated on the north side, a power substation on the South side and a Specialized Jute Yarn Manufacturing Co. (twin mill) on the south side of the mill. It stands on the Land Area 56.31 Acres.

1.1.2 Production capacity of SJML

There are two types of jute goods produced in star jute mills limited, they are hessian and sacking goods. The establishment production capacity was 17770 M. Ton per year and current production capacity is 16906 M. ton per year.

1.1.3 Vision and Mission statement of BJMC

Vision

• To make Bangladesh Jute mills Corporation (BJMC) as a self-dependent and profitable organization.

Mission

• To dominate the world market and ensure the maximum facility for the BJMC.
• To produce the best quality jute goods using local raw materials
• To earn foreign exchange adding 100% value.
• To help the farmers in getting fair price of jute.
• To incite the use of ecofriendly natural fiber avoiding synthetic.
• To recommend the government in order to formulate time serving policy for the development of jute and jute industry and assist to implement the policy.

1.1.4 Broader industry description in which the organization operates

Jute manufacturing sector is one of the oldest traditional manufacturing sectors of Bangladesh which emerged in East Pakistan in the early 1950s. During the 1960s and 1970s major share of the manufacturing sector in national income and manufacturing employment was accounted for this sector. Exports of jute and jute goods were the two most important sources of foreign exchange of Pakistan during the 1960s.

However, both share and importance of jute and jute goods in manufacturing, export and overall foreign exchange earnings and the Gross Domestic Product (GDP) have gradually declined over time. The sector currently accounts for a more 3 percent of the country’s total export (according to BIDA), which is of extremely low significance when compared to its contribution in the overall export observed during the1970s (89.9 percent in 1973). According to the Export Promotion Bureau (EPB), entrepreneurs of this country exported jute products worth $910 million last financial year. In the current fiscal year 2023-24, a target of $1.02 billion jute exports has been set. (epb website)

However this was also the result of successive policies pursued by Bangladesh alongside decline in the demand for jute goods in both domestic and international markets over time. However, Bangladesh Jute Mills Corporation (BJMC) was one of the largest organizations for jute goods manufacturing in the world. At present, Bangladesh is the second largest jute goods manufacturer in the world.

Star jute mills limited is a jute goods producing company. It is a part of jute industry. Bangladesh is the second largest producer of jute in the world with an estimated annual production of 1.6 million tons in 2019 (FAO). So, the availability of raw jute helps to establish lots of jute mills in Bangladesh. There are about 220-245 private jute mills currently operating in Bangladesh. In addition, there are about 700 diversified jute producers who employ between 50,000 to 100,000 people in the country.

Average domestic consumption of raw jute amounts to 1.16 million tons per year (BJSA). In addition, Bangladesh is also the top exporter of jute and jute-based products in the world with average exports of around USD 1 billion per annum. (bida)

1. Organizational and departmental function

Bangladesh jute mills corporation (BJMC) is the governing body of star jute mills limited. The BJMC is managed by a Board of Directors headed by the Chairman. Now the organization is operating 26 mills (including 3 non jute industries). There are 7 mills in Dhaka zone, 10 mills in Chittagong and 9 mills in Khulna zone. BJMC has two Zonal Offices for supervising and coordinating the activities of regional mills.

The performance of every enterprise is supervised and controlled at the plant level by the concerned Enterprise Board headed by the Chairman or any Director of the Corporation and other members are nominated from the Textile & Jute Ministry, Ministry of Finance, BJMC and Banks. The Board of Directors reviews the performance of its enterprises from time to time and issues guidelines and decisions for their smooth and efficient operation.

1.2.1 Structure of the Board of Directors of BJMC

1.2.2 Management Hierarchy of BJMC

1.2.3 Management Hierarchy of Star Jute Mills Limited

1.2.4 Departmental Activities

Star jute mills limited is a jute product production and jute goods export based industry under the control of BJMC. This industry has 14 departments to conduct the daily work smoothly. The functions of all departments are specific. Among all departments, Management Information System department collects all the data from all departments and analyze the performance of the activities. This department focuses on the budget of daily production and calculates cost per ton by calculating all expenses related to production.

SJML is a production based organization, therefore, all other department have to assist the production department to smooth the daily operations. Finance and accounts department needs to provide required amount of budget to purchase required raw jutes and other parts required for production, mechanical and electrical department. Sometimes, it shows that, the lack of single spare parts can trouble the continuous production process. The purchase department’s say, jute purchase or store purchase department needs to purchase quality jute and spare parts required for the entire process. All departments can play significant role in the supply chain management.

1.2.4.1 Departmentalization

Figure 1.4: Departmentalization of SJML

1.2.5 Products of SJML

Star jute mills limited produced different types of jute goods such as hessian and sacking cloth, bags, rolls etc. Basically, it exports jute goods in different foreign countries and fulfill the local demand of jute products. In hessian unit, different sizes jute bags are produced as per the requirement of buyer. In sacking unit, some standard bags like: Std. B. Twill, B.nola, Sugar bag, potato bag are produced. However, there are not enough machines for making diversified jute goods in this mill.

Hessian Bag

Sacking Bag

1.2.6 Description of production process

Jute is a natural fiber used universally, is the bark of a slender shrub of tropical and subtropical origin. It belongs to the family of Tiliaceae. Fibers of two species of this family viz Corchorus Capsularies and Cochorus Olitorius are used to produce jute goods. These two fibers yielding agricultural plants need alluvial land and heavy rainfall alternate with high temperature and windy air to grow well to give lustrous and strong fiber. Bangladesh is unique in providing for centuries all the physiological elements for rich and luxuriant.

Star Jute Mills Limited’s supply chain management is a cross functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods and the movement of finished goods out of the organization and toward the end consumer.

Production flow process: The supply chain practices from raw jute purchase to finished product delivery.

Jute Technology:

Jute manufacturing in jute mills, raw jute in the form of bales are processed in Jute mills to produce hessian, sacking jute yarn bags and other useful products. Raw jute bales from jute fields or suppliers, carried out by trucks and waterway are unloaded stacked in the jute mills godown. The production of jute goods from raw jute processing involves the following steps:

Selection of agency/Jute purchase in mill ghat

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Softening

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Piling and pile breaking

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Carding

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Jute drawing and doubling Drawing

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Spinning

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Winding

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Beaming

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Weaving

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Finishing

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Bale store in godown

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Deliver to buyer

Selection of agency:

Most of the raw jute purchased by the organization’s selected agency. These agencies are conducted by the Govt. rules and regulations as well as BJMC formulated policy. This raw jute is packed as a bale shaped which is provided to this organization. In the selection process, raw jute bales are opened to find out assorting and measuring quality according to the grade by experienced workers. After assorting, raw jute is supplied to production department as per the requirement.

Softening:

In softening process jute morals are made soft and pileable. Two methods are used for softening; use of softening machine and use of jute good spreader. Generally, an emulsion plant with jute softer machine in used to lubricate and gummy raw jute. The emulsion plant consists of gear pump, motor, vat, jet sprayer, nozzles, emulsion tank and the jacket.

Piling and pile breaking:

The main function of pile breaker is to break the pile and serve it to the carding machines. The softener machine output material carried by pile man through a pile to the pile place for pilling, during piling superficial moisture penetrates inside fiber and “Thermo fillies” action take place which softener the hard portion of the root. After piling for nearly 24-72 hours the pile breakers carry out the material to the carding machine.

Carding:

Carding is a combining operation where jute reads are splitted and extraneous matters are removed. Jute fibers are formed into ribbon called Sliver.

Breaker carding:

In different mills the carding operations has been carried out in two ways:

1. Hand feed breaker carding
2. Roll feed breaker carding

The material after piling more than 24 hours is used in hand feed breaker where the material after piling for 12 hours used in the feed carding. In the breaker carding machine soften jute after piling is feed by hand in suitable weight.

Finisher carding:

Finisher carding machine make the sliver more uniform and regular in length and weight obtained from the breaker carding machine. Finisher carding machine is identical to the breaker carding machine, having more pair of rollers, staves, pin arrangement and speed.

Jute drawing and doubling Drawing

Drawing is a process for reducing sliver width and thickness by simultaneously mixing 4 to 6 sliver together. There are three types of drawing frame machine.

First drawing:

The silvers obtained from finisher carding machine is fed with four slivers on to the first drawing frame machine. The first drawing frame machine makes blending, equalizing the sliver and doubling two or more sliver, level and provide quantity and color.

Second drawing:

In second drawing, the second drawing frame machine obtain the silver from the first drawing machine and use four sliver from the First drawing machine The second drawing machine makes more uniform sliver and reduce the jute into a suitable size for third drawing.

Third drawing:

In the third drawing, the third drawing frame machine uses the sliver from second drawing. The third drawing is of high speed makes the sliver more crimpled and suitable for spinning.

Spinning:

Spinning in the process for producing yarn from sliver obtained from third drawing or finisher drawing. In the spinning process slivers are elongated and fibers are twisted into yarn to impart strength. Spun yearns in the spinning process are wound on to bobbins.

Winding:

Winding is a process which provides yarn as spools and cops for the requirement of beaming and weaving operations. There are two types of winding:

1. Spool winding (Roll winding)
2. Cope winding

Spool winding:

In Spool winding yarn is produces for warp (the longitudinal yam) spool winding machine consists of a number of spindles. There is wide variation in the number of spindles per machines from one make to another.

Spool winding machine uses the bobbins contain smaller length of yarn. This machine wound the yarn into bigger packages known as „Spool‟. The spools are used in making sheets of yarn to from warp portion used during interlacement of weaving.

Cop winding:

Cop winding machine obtain yarns from the spinning machines. The spinning bobbins are placed on a suitable pin on top of the cop machine and yarn tension is maintained by means of a small leaver. The yarns on the bobbins are converted into hollow cylindrical package said to be cop.

Beaming:

Beaming process is follows after spool winding. In Beaming operation yarn form spoil is wounded over a beam of proper width and connect number of ends to weave jute cloth.

Weaving:

Weaving is a process of interlacement of two series of threads called “Warp” and “Weft” yarns to produce the fabric of desired quality. There are separate looms for Hessian and Sacking in weaving section. The Hessian looms, shuttle which contacts cops (weft yarn) is manually changed. The sacking looms are equipped with co- loader to load a cop automatically into the shuttle.

Dumping:

Dumping is the process in which the rolled woven cloth is unrolled ad water is sprinkled on it continuously to provide desired moisture. Each roll is generally 104 yards or 95976 meters. Damping is done by damping machine.

Calendaring:

Calendaring is a process similar to ironing of fabric. After damping the damped fabric passes through pairs of heavy rollers rendering threads in fabric flattened and improve the quality and appearance.

Lapping:

Lapping is the process in which Hessian fabrics are folded into the required size used in “Bale Press” operation on the lapping machine.

Cutting:

Cutting is the process where the sacking cloth is cut to the required the length for making bags for different size. Such as B-Twill bags of required demand capacity. It is also used in same as hessian cloth.

Hemming Sewing:

In Hemming process, the raw edges of sacking cloth pieces are shown by folding it with sewing machine.

Herackle Sewing:

In Herackle sewing the sides of sacking cloth cut pieces are shown to make a complete bag.

Overhead Sewing:

This sewing machine is used to sew the sacking bags side and bottom side.

Baling:

Bags or Bale processing cloths are pressed compactly according to buyers need.

After producing the finished goods, the bales are stored in the godown for shipment. The marketing department is usually doing the exporting task by consulting with the marketing department of BJMC.

In sum, from the above description, I can take some functions to identify whether the supply chain activities are problematic in the production process. To evaluate the supply chain management, I listed some points and tried to give some suggestions for improving the current situation of the supply chain management.

1.3 Functions taken for the study

Supply Chain Management (SCM) is to integrate both information and material flows seamlessly across the supply chain as an effective competitive weapon (Childerhouse, 2000). The name is somewhat misleading as a supply chain is not a formal chain of businesses but a network of businesses and relationships. In reviewing the prevailing literature available it is clear that one common definition of SCM does not exist. Company represent all possible locations across a supply chain, original suppliers, manufacturers of industrial products (business to business), manufacturers of consumer products the views presented by the Global Supply Chain Forum represents combined knowledge and experiences from leading firms in the corresponding industry (Goldsby, et al, 2003).

Star Jute Mills Limited is producing different types of jute goods. The jute products are environmental friendly. So, it has huge demand in the market but unfortunately this mill is not capable to produce desired production. There are lots of problem which is an obstacle for the smooth production. The supply chain activities are not properly co-operate production process. Most of the time supply of raw materials and spare parts are hampered. For the lack of raw materials it is not possible to deliver the end products to the customer in time.

So, we have taken the function of evaluation of supply chain practices in star jute mills limited for the study. This study is based on supply chain activities which are involved with raw material sourcing, production process and distribution. In this report, we have tried to find out the problems in current supply chain activities and after find out the problems we have tried to propose some possible suggestions to overcome those problems of supply chain practice. I hope, if we can implement the proposed suggestion it will give us possible solution of current supply chain practice in star jute mills limited.

Chapter-2.0: Literature Review and Conceptual Framework

2.1 Supply chain management:

The term “supply chain management” entered the public domain when Keith Oliver a consultant at Booz Allen Hamilton used it in an interview for the Financial Times in 1982. The term was slow to take hold. It gained currency in the mid-1990s, when a flurry of articles and books came out on the subject. In the late 1990s it rose to prominence as a management buzzword and operation manager began to use it in their titles with increasing regularly.

Definition:

Commonly accepted definitions of supply chain management:

• The management of upstream and downstream value added flows of materials, final goods and related information among suppliers, company, resellers and final consumers.
• The systematic strategic coordination of traditional business functions and tactics across all business functions within a particular company and across businesses within the supply chain for the purposes of improving the long term performance of the individual companies and the supply chain as a whole.
• Supply chain management is a set of organizations directly linked by one or more upstream and downstream flows of products, services, finances or information from a source to a customer. Supply chain strategy for a business is highly influenced by the nature of the product or services offered. Supply chain of innovative product needs to be responsive one whereas commodity products need efficient supply chain.

Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships and control associated business processes.

Supply chain management (SCM) is implemented by integrating corporate functions using business processes within and across companies. Supply chain management encompasses more than the activities of any individual corporate function. Many regard the “supply chain” as being composed of inbound materials, raw material inventories, manufacturing, finished goods inventories, distribution and view these activities within the purview of a single firm. On the other hand the supply chain as the activities from point of origin to point of consumption. Another perspective of supply chain management is based on the management of relationships both between corporate functions and across companies (Ellram et. al, 1993).

Supply chain is the network of companies or independent business units from original supplier to end-customers. Management of this network is a broad and challenging task. One goal of managers is to implement cross-functional business processes and integrate them with other key members of the supply chain. A business process is a structured set of activities with specified business outcomes for customers (Davenport et.al, 1995). Initially business processes were viewed as a means to integrate corporate functions within the firm. Now business processes are used to structure the activities between members of a supply chain (Hammer, 2001).Firms that seek to be market driven need to implement cross functional business processes (Day, 1997).

2.2 Supply chain strategy:

The GSCF (Global Supply Chain Forum) defines supply chain management as the integration of key business processes from end user through original suppliers that provides products, services and information that add value for customers and other stakeholders (Lambert et.al, 1998). Implementation is carried out through three primary elements: the supply chain network structure, the supply chain business processes and the management components. The supply chain network structure is comprised of the member firms with which key processes will be linked. The following eight supply chain management processes are included in the GSCF framework:

• Customer relationship management provides the structure for how relationships with customers are developed and maintained. Cross functional customer teams tailor product and service agreements to meet the needs of key accounts and segments of other customers (Croxton et. al, 2001).
• Customer service management provides the firm’s face to the customer a single source of customer information and the key point of contact for administering the product service agreements (Bolumole et. al, 2003).
• Demand Management provides the structure for balancing the customer requirements with supply chain capabilities, including reducing demand variability and increasing supply chain flexibility (Croxton et. al, 2002).
• Order Fulfillment includes all activities necessary to define customer requirements, design a network and enable the firm to meet customer requests while minimizing the total delivered cost (Croxton, 2003).
• Manufacturing Flow Management, it includes all activities necessary to obtain, implement and manage manufacturing flexibility and move products through the plants in the supply chain (Goldsby et. al, 2003).
• Supplier Relationship Management provides the structure for how relationships with suppliers are developed and maintained. Cross-functional teams tailor product and service agreements with key suppliers (Croxton et. al, 2001).
• Product Development and Commercialization provides the structure for developing and bringing to market new products jointly with customers and suppliers (Rogers et. al, 2004).
• Returns Management includes all activities related to returns, reverse logistics, gatekeeping and avoidance (Rogers et. al, 2002).

Customer relationship management and supplier relationship management form the critical links in the supply chain and the other five processes are coordinated through them. Each of the eight processes is cross functional and cross firm. Each is broken down into a sequence of strategic sub processes where the blueprint for managing the process is defined and a sequence of operational sub processes where the process is actualized. Every sub process is described by a set of activities. Cross functional teams are used to define the structure for managing the process at the strategic level and implementation at the operational level.

The following management components that support the processes (Cooper et. al, 1997): planning and control, work structure, organization structure, product flow facility structure, information flow, management methods, power and leadership structure, risk and reward structure and culture and attitude. The second framework identified in the literature was developed by the Supply Chain Council (SCC). The SCC originally had 69 member companies and developed the Supply-Chain Operations References (SCOR) framework. Initially SCOR included five business processes: plan, source, make, deliver and return (Supply-Chain Council, 1996) which are to be implemented within the firm and eventually connected across firms in the supply chain. Return the fifth process was added in 2001 (Supply Chain Council, 2001).

The objectives of the five SCOR processes are (Supply Chain Council, 2003):

1. Plan: balances aggregate demand and supply to develop a course of action which best meets sourcing, production and delivery requirements.
2. Source: includes activities related to procuring goods and services to meet planned and actual demand.
3. Make: includes activities related to transforming products into a finished state to meet planned or actual demand.
4. Deliver: provides finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
5. Return: deals with returning or receiving returned products for any reason and extends into post-delivery customer support.

Inventory

An organization strives to focus on core competencies and becoming more flexible. They reduce their ownership of raw materials sources. Some of these functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand while reducing managerial control of daily logistics operations. Less control and more supply chain partners lead to the creation of the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement.

TQM (Total Quality Management)

Total Quality Management (TQM) is an approach that organizations use to improve their internal processes and increase customer satisfaction. When it is properly implemented, this style of management can lead to decrease costs related corrective or preventive maintenance, better overall performance and an increased number of happy and loyal customers

The key concepts in the TQM effort are:

1. Quality is defined by customer requirements.
2. Top management has direct responsibility for quality improvement.
3. Increased quality comes from systematic analysis and improvement of work processes.
4. Quality improvement is a continuous effort and conducted throughout the organization.

Concern about TQM in Star Jute Mills Ltd.

• At first assign the product feature from the buyer instruction.
• Design all the production flow process in this company.

TQM is following in the area of Star Jute Mills Ltd.

1. Selection of jute
2. Piling
3. Batching
4. Preparing
5. Spinning
6. Beaming
7. Weaving
8. Finishing

The above processing fields are always going to concern about quality. This is done by the quality department in Star Jute Mills Ltd. The work completion is a continuous process in every stage in the above processes. Every stages quality ensures the production department guided by the quality department. Mechanical department as well as others department helps to implement this program.

JIT (Just In Time)

The nature of just in time meaning (JIT) manufacturing/production or JIT in any other setting may be reduced to differently stated views:

• Many have said that JIT revolves around wastes at its core JIT is a waste elimination philosophy.
• JIT’s main aim is elimination of excess inventories. JIT is defined as not an inventory control system but a way of thinking, working and management to eliminate wastes in the production process.
• JIT is mainly about quick response relating to the “T” for “time” in JIT. As Blackburn put it quick response is one of the major benefits of JIT. Time or speed is the linchpin of this manufacturing philosophy. Quick response refers alternatively to reduction of cycle time, flow time and all the way to the customer lead times.

The three JIT views referring to wastes, inventory and quick response/lead-time reduction do not suggest opposing views but rather appear to be complementary points of emphasis collectively serving to describe the essence of JIT.

Sepheri – provides a list of methodologies of JIT manufacturing that are important but not exhaustive

• Housekeeping – physical organization and discipline.
• Make it right the first time – elimination of defects.
• Setup reduction – flexible changeover approaches.
• Lot sizes of one – the ultimate lot size and flexibility.
• Uniform plant load – leveling as a control mechanism
• Balanced flow – organizing flow scheduling throughput.
• Skill diversification – multi-functional workers.
• Control by visibility – communication media for activity.
• Preventive maintenance – flawless running, no defects.
• Fitness for use – produce ability, design for process.
• Streamlining movements – smoothing materials handling.
• Supplier networks – extensions of the factory.
• Worker involvement – small group improvement activities.
• Cellular manufacturing – production methods for flow.
• Pull system – signal replenishment/resupply systems.

The following list includes citations from other sources.

1. Flow/layout.
2. Smoothed line build rate.
3. Mixed modeling to allow the concurrent assembly of different models on the same line.
4. Pull system that triggers the movement of materials from one operation through to the next.
5. Quality a prerequisite of successful JIT.
6. Product simplification e.g. using fewer and common parts.
7. Standardized containers.
8. Preventive maintenance removal of the uncertainty of breakdown.
9. Flexible workforce, via (e.g.) cross training.
10. Organization in modules or cells.
11. Continuous improvement.
12. JIT purchasing.

One notable element of JIT purchasing that could be separately listed is single- sourcing: Single sourcing means using just one supplier of a given item or items thus to reduce complexities and difficulties in developing JIT relationships with the supplier base. Hall states that if the single source fails to perform an alternative source is available.

In contrasting terminology a sole source means there is no other source with suitable capability possible for technological or quality reasons. Hall goes on to say that in case of a fire at the supplier plant or other emergency. Some reserve capacity in supplier operations dedicated to other networks can be called to cover it. One localized calamity does not destroy everything and if the supplier has good people involvement where strikes are a minimal risk.

Chapter-03: Problems Resulting From Current Supply Chain Practices

3.1 Validating the Problems in Supply Chain Practices    

Bangladesh is a developing country. Jute is its prime crop which still earns huge amount of foreign currency. The scope of a supply chain management framework refers to the extent to which it supports the achievement of the corporate strategy of supply chain management which determines the company’s direction.

There are various fields of study to evaluate supply chain practices of Star Jute Mills Ltd. Such as planning, capital budget, agency selection, jute purchase, procurement rules and regulation guided by Govt. of the people’s republic of Bangladesh and BJMC, total quality management, flow process, production process, labor law, exports, wages, logistics, other necessary spare parts procurement and policy making, buildup of national and foreign market, transportation, delivery in time of finished goods, just in time (JIT), retirement policy, finance and accounts and finally administrative decision making capacity.

Above mentioned factors are all related to the supply chain activities. I have to evaluate the supply chain practices in star jute mills limited.

Objectives:

This study has some objectives. They are-

• The primary function is to evaluate the supply chain activities in Star Jute Mills Limited.
• It needs to find out the factors that influence facility that influence the production process.
• Inventory plays vital role for the smooth production process. So, it is required to identify whether effective inventory is maintained properly.
• Distribution of product to the customer is important. Here, I will try to analyze transportation system.
• It needs to know about information system.
• To determine whether the sourcing is effective or not.

In sum, we will find out the existing problems then analyze the problems or losses occurring due to supply chain activities. Finally, suggest some recommendation for possible solution of the supply chain practices.

3.2 Problems or losses resulting from supply chain practices

After analyzing different challenges of supply chain practices of Star Jute Mills Ltd., few problems have been identified. Those are mentioned below:

Facility:

Facility related decisions impact both financial performance of the organization and the supply chain responsiveness to customers. This decision impacts the cost of goods sold and the assets in property, plant and equipment. However,

• Due to lack of raw materials and spare parts, average production level is not going continuous and completed on time. If any middle of the flow process is interrupted, the entire flow process will be hampered.
• Another problem is that, utilization is limited by demand and not setup. That means some running machine is always idle in a cyclic process.
• Quality is another problem, quality losses hampered both financial performance and responsiveness.

Inventory:

Inventory has a significant impact on the material flow in supply chain management. It plays a vital role to reduce cost by exploiting economies of scale that may exist during production and distribution.

• Safety inventory of raw jute is not maintained to maintain continuous production process.
• Due to lack of safety stock of spare parts and production material the production process are hampered.

Transportation:

Transportation allows an organization to adjust the location of its facilities and inventories to find the right balance between responsiveness and efficiency. Rapid transportation to be responsive while centralizing its facilities and inventory to lower cost.

• It is seen that, the present mode of transportation is not convenient. This mill is located in a area which is not directly connected by road connection. It depends on water way transportation system for carrying raw materials and finished goods. After passing the water way the goods transported to the customer by road way. It has no distribution centre, it deliver the finished goods to the buyer from the mill wearhouse.

Information:

The information of an organization analyzes to increase efficiency and improve responsiveness within its supply chain management. Lake of information supply can hamper the functional activities.

• The company is not using any upgrade Information Technology such as ERP (Enterprise Resource Planning) software, CRM to enhance the functional activities as well as reduces production cost. We know that, modern business information system make it easy to make the process smoothly.

Sourcing:

Sourcing is a set of business processes required to purchase goods and services. Sourcing decisions are crucial because they affect the level of efficiency and responsiveness in supply chain management. Procurement process can make it smooth to maintain continuous production process

• It seems that, raw jute, mechanical, electrical and other accessories supply quality is not always satisfy to required demand.
• Another problem is that, bureaucratic complexity hampered the entire flow process.

Overall, above all are the problems of supply chain management in Star Jute Mills Limited.

Chapter-04: Plans To Improve The Existing Process

The followings are plans to improve the existing supply chain management to reduce the problems regarding supply chain activities. They are-

• Components need to be altered or eliminated
• Activities to replace current components of the process
• Plans to overcome the problems of supply chain practices.

4.1 Components need to be altered or eliminated

The Star Jute Mills Limited authorities must appoint an inquiry team to look at the mill’s present supply chain procedures. In this instance, a new element will be included to the investigation of jute product supply chain operations. This group will advise the appropriate authorities on the need for changes to the mill’s supply chain efforts, such as conducting a study of buyers, suppliers, and staff.

This kind of study will enable the business to comprehend the necessity of suitable supply chain tactics from the perspectives of buyers and suppliers, with the mill area being the most crucial. There is another fast survey alternative, even though it will take a lot of time to implement this kind of survey. The survey on the mill area must be conducted by the company. Employees will address the need for suitable supply chain strategies for jute goods in this survey, based on their respective areas of expertise. This survey helps the higher authorities of the organization know which parts of the mill require adequate supply chain strategies.

Afterwards, the business must monitor the entire scenario in order to arrange the addition or deletion of any supply chain process functions as a test run, such as a test run for the procurement process. Due to the fact that this will be an experiment, the business must maintain its attention on the present components and refrain from adding or removing any teams throughout the test run. Because such an experiment might be expensive for any organization, it should only involve two to five locations at a time during this test run.

4.2 Activities to replace current components of the process

An analysis of the test work performed as an experiment should be started as soon as the test run is finished. The facts regarding the performance from the test program will be clarified by this analysis. It will find out which type of suppliers are the Strengths, which areas are Weaknesses, which type of buyers are new Opportunities and which are the Threats for the supply chain activities.

Now, based on the analysis the company will need to form a team that will plan the strategy and execute the supply chain activities in various platforms. This team will measure everything about this project and try to make plans regarding any addition or removal of any components in the supply chain process. This team will measure costs, time, labor, supporting and every other related thing. This team will analyze most needed raw materials and spare parts required in the mill.

This team will measure every aspect of the project and attempt to plan for any changes to the supply chain process, such as adding or removing components. This group will track expenses, time, labor, supplies, and all other relevant variables. This group will examine the most important raw materials and replacement parts that the mill needs.

4.3 Plans to overcome the problems of supply chain practices

The followings are some plans to overcome the problems in supply chain. They are-

• It is important to ensure that, the facilities for production process are available. After ensuring the required raw materials and spare parts needed for the production process, it can be ensure that the average production level will going continuous and completed on time. Surely, if any middle of the flow process is not interrupted then the budget production will be achieved.
• It needs to ensure that, the utilization is not limited by demand and well setup. As a result, any running machine will not be idle in a cyclic process. This initiative will help to achive the target production.
• It is reqired to ensure that, the quality of all raw materials and spare parts used in the production process. Low quality materials are not helpful for the continuous process. High quality raw materials and spare parts of mechanical, electrical functions can ensure the quality production. The quality of finished products also needs to lookup for the better satisfaction of end user.  If we can ensure the use of quality raw materials and spare parts in the process it will increase both financial performance and responsiveness.
• Safety inventory of raw jute is required to maintain for a continuous production process. Jute is cultivated once a year, so raw jute inventory needs to maintain in seasonal basis by the top management. It needs to ensure that the raw jute being purchased in a seasonal basis then the entire flow of production process will going continuously and successfully.
• It is also important to ensure that the safety stock of mechanical and electrical spare parts required for the production process. Moreover, safety stock of all materials required for the continuous production needs to ensure.
• The cost of road transportation is not effective in Star Jute Mills Ltd because direct road transport is not available there to carry out raw jute or finished products. It can be shifted from roadway to waterway. Outbound cost is always carried out by the buyer. This is not always following up by the top management which increasing the total production cost. Waterway can be an alternative way of transportation which helps to reduce the cost per ton. Proper distribution channel needs to ensure to make it easy to reach the product to the buyer at the estimated time. However, forward integration strategy can be implemented for the transportation and distribution purpose.
• Information system plays vital role in the business progress. The success of the business is mostly depends on the successful integration of information through technology. If upgrade IT (Information Technology) is utilized this organization, it enhances the functional activities as well as reduces production cost. The management can buy ERP (Enterprise Resource Planning) software, CRM software for improving the information flow.
• Generally, outsourcing reduces risk. Bureaucratic complexity hampered the entire flow process and top management did not follow structural procurement process for the short time emergency. It needs to ensure that the raw jute, mechanical, electrical and other accessories supply quality will always satisfy required demand. Moreover, backward integration strategy can be implemented for better supply of required materials.
• Pricing plays vital role in the supply of finished goods. Most of the time, it has found that total workforce did not provide efficient output. All the workforce of SJM Ltd. should be engaged in their respected area in an efficient way which will decrease their idle time. If the production cost decrease the company will be befitted from there. The pricing of the goods should competitive.

Overall, the above are the plans for improving the existing supply chain management. It needs to ensure that all the facility required for a smooth production process needs to ensure. The inventory management must be as per standard schedule. To ensure a smart distribution, it needs to select an appropriate transportation system. Information needs to flow towards the proper channel. Every respondents needs to aware about the latest information about the process.

Lastly, pricing of the product needs to be set for getting profit. To maximize the profit, it needs to utilize the full efficiency of the workforce to reduce the cost per ton production. So, it needs to conscious about the appropriate application of supply chain activities in all the stages of production process.

Chapter-05: How To Implement the Plans

The previous chapter discussed plans to improve supply chain practices, and this chapter discusses how these changes should be implemented. To achieve business growth, Star Jute Mills Limited. need to implement the newly formed plans to address issues in supply chain management.

5.1 Requirement of organizational restructuring

Star Jute Mills Limited needs to form a new supply chain management department to address the lack of one within the company. This new department will identify issues, develop strategies to improve existing processes, and measure and calculate costs, times, and labor required for the completion of these processes.

5.2 Support from administration

Star Jute Mills Limited, a manufacturing company, relies on administrative support for planning and executing its supply chain management projects. To improve the process, the company needs to inform higher authorities about its limitations and convince them to approve the project. The approval of this project is prioritized by the company’s higher authority, as it is a significant investment for the company.

The discussion suggests that the company’s higher authority will primarily need administrative support to implement plans for improving its supply chain management. If the administration body recognizes the need to overcome existing limitations, the project will be executed.

5.3 Required project cost

Star Jute Mills Limited. must implement effective strategies to improve its supply chain management, despite potential expenses in various processes. To address limitations, the company must maintain its activities, which will vary depending on the activities, production process, and distribution channels. To overcome these limitations, the company must act quickly and adopt effective strategies to maintain its current supply chain activities.

The company needs to appoint a new strategic team to enhance supply chain management, which will require significant financial investment. The company will also invest in IT services for developing computer software, including salaries for IT experts and technological equipment. Additionally, the company will need to arrange training programs for supply chain management teams, including hiring expert trainers, food, equipment, and training tools, which will also require significant financial investment.

5.4 Time requirement for the project finishing

The company should establish a supply chain department as soon as possible to improve supply chain practices, as the completion time depends on the targeted segments.

5.5 Expected Benefits from the Plans

Implementing prescribed plans to improve the sales process can bring significant benefits to the company. They are-

1. This plan will help to form a new department which will coordinate the supply chain activities.
2. All the facility related to production process should be available which will facilitate the continuous production.
3. Sufficient stock of raw jute and other mechanical and electrical parts will help to continue uninterrupted production process which will maximize profit.
4. Use of IT (Information Technology) will make easy the flow of information and maintain a record of the performance.
5. The structural way of procurement process will help to get supply in time.

Chapter-6.0 Conclusion

6.1 Conclusion

The objective of the study was to evaluate of supply chain practices in Star Jute Mills Limited. This is one of the nationalized jute mills under Bangladesh Jute Mills Corporation. Star Jute Mills Limited played a vital role in the development process of the country through manufacturing jute products. The performance of the organization mostly depends upon the level of improvement of entire supply chain management.

This is an export oriented organization. It will lose confidence of the foreign customers or buyers if it fails to produce expected products. So the SJM Ltd. authority should concentrate to build up of effective supply chain management. Special care should be taken to facility, inventory, transportation, information, sourcing and pricing. This report indicates that higher levels of supply chain management practice can lead to enhance competitive advantage and improve organizational performance. These results have value to both the academic and effective evaluation of supply chain management of Star Jute Mills Limited. Thus it can play a vital role to reach a profitable organization as well as the economic development of the country.

6.2 Recommendation for further improvement

Supply chain management plays vital role to make the organization profitable. The followings are the key recommendation to solve the problems related to supply chain management and practices required to improve the supply chain practices. They are-

• Production process should be maintained in an uninterrupted way.
• Inventory of raw jute should be followed in seasonal basis.
• Top management of Star Jute Mills Limited should follow the structural way of supply chain management.
• Star Jute Mills Limited should use upgrade information technology in all sector in i.e. ERP software.
• Procurement Process should be followed in a structural way.
• Standard quality should be maintained in every process.
• Star Jute Mills Limited should be engaged in entire workforce through efficient way
• Total production cost should be reduced.

In sum, the managers can implement this recommendation to improve the supply chain management. Further, the managers can give deep concern to the input of the production process such as raw jute and spare parts besides this the delivery of finished goods to the buyer.

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