Bikiya Industries is developing its supply chain to provide a competitive advantage and increase profitability. The document outlines Bikiya's supply chain model and processes. It discusses planning, sourcing, production, delivery, and quality. Key goals include creating efficient operations, implementing competitive strategies, and monitoring performance metrics to continuously improve the supply chain.

1. BIKIYA INDUSTRIES PRIVATE LTD SUPPLY CHAIN
Anticipating the customer’s requirement on continuous basis.
REVIEW
AUTHOR Farrukh 'Hasnain
DATE 11 November 2016
DOCUMENT CONTROL SCP-01
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2. SUPPLY CHAIN’S ROLE IN BIKIYA INDUSTRIES
Anticipating the customer’s requirement on continuous basis.
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To provide Competitive Advantage in supplying products to
our customers. The advantage will be sustainable and shall
have a significant impact on BIKIYA’s profitability .

3. VISION TO REALITY
Anticipating the customer’s requirement on continuous basis.
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1. Create efficient and effective Supply Chain and its sub
processes and methods .
2. Develop the operating principles that will deliver a
significant competitive advantage.
3. Ensure the operating principles are implemented through
monitoring of the KPI’s.

4. THE SUPPLY CHAIN MODEL
Anticipating the customer’s requirement on continuous basis.
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BIKIYA INDUSTRIES LEADERSHIP AND STRATEGIC MANAGEMENT
PLAN
PLANNING
SOURCE MAKE DELIVER RETURNS
CUSTOMER
DEVELOPMENT
SUPPLIERS
BRAND DEVELOPMENT
CUSTOMERS
INFORMATION
HUMAN RESOURCE
FINANCE

5. NORMS OF DEMAND AND SUPPLY PLANNING
Anticipating the customer’s requirement on continuous basis.
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 Sales Forecast Receiving 25th of every month for next month
 MRP (Material requirement planning) 26th of every month for next month
 MPS (Master production schedule) 26th of every month for next month
 Monthly production plan (tentative) 27th of every month for next month
 Weekly production plan Every Saturday for next week
 Daily Production plan Based on FG region wise stocks review & sales orders
 S&OP weekly meeting Every Monday @ 10:00 AM.
 New printing SPJs lead time. 21 days (For Boxes)
 Rubber stamp making lead time 2 days (For Napkin)

6. PLANNING PROCESS
Anticipating the customer’s requirement on continuous basis.
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Sales Orders/
Sales Forecast MPS ProductionMRP
Procurement
QC
Shipment
Warehouse
RM/PM/AM
Logistics/
DistributionFG’s Warehouse
Supplier (s)
Sales/
Marketing
Inspection Ok-
Not Ok

7. PLANNING
Anticipating the customer’s requirement on continuous basis.
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PURCHASING INBOUND
DELIVERIES
PRODUCTION
PLAN
OUTBOUND
TRANSPORT
DEPOTS DISTRIBUTOR
SUPPLY PLANNING DEMAND PLANNING
STRATEGIC DIRECTION :
 For current year planning is being done on the basis of monthly sales forecast.
 Production is only stopped in following circumstances
 Forecast is achieved or warehouse occupancy hits 100%.
 Production will be as required , strictly on PULL basis.
 FG safety stocks cover to be kept for 10 days.

8. SOURCE (PROCUREMENT)
Anticipating the customer’s requirement on continuous basis.
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Purchasing has been split into 2 distinct areas:
1. Supplier Management (Vendor development & Induction , Negotiation ,Performance
monitoring with approved suppliers list.
2. Contract Management (Documentation and clerical work)
 KPI’s are based on Q C D (Quality , Cost and Delivery )
 We will review KPI’s of top suppliers on monthly basis.
 For all purchases related to RM,PM,AM developing at least 3 suppliers to meet the
committed timely deliveries.
 Aim to reduce supplier rejection with proper tracking on deliveries and strict monitoring
of quality .

9. PROCUREMENT PROCESS
Anticipating the customer’s requirement on continuous basis.
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 Price analysis of suppliers to create healthy competition amongst them giving us a lower
cost in prices.
 Reduced cash purchases and diverting all suppliers to PO, reducing risk of fraud and
improving cash flows.
 Improving inventories of consumable items by maintaining proper ERP system codes and
ordering as per requirement.
.

10. MAKE (PRODUCTION/MANUFACTURING)
Anticipating the customer’s requirement on continuous basis.
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Key Action Points :
 System first checks inventory on hand for sufficiency.
 Calculates labor needs and determines whether overtime or temporary help will be
needed.
 Based on BOM, determines what components need to be ordered.
 The MPS is adjusted to include the new order.
 Manufacturing resources . 4Ms (Man-Machine-Material-Method )

11. Anticipating the customer’s requirement on continuous basis.
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MAKE (M/C CAPACITIES & NORMS)
M/C # Art : # SKU CTNS Ton/ Day/ Shift
M1
114 Royale Silver 446
2
115 Royal Gold 223
120 Perfumed Memories 446
121 Shades (PY) 320
122 Shades (GB) 320
123 Pop Up 396
124 Shades Pop Up 396
125 Tux Square 446
126 Ease 186
M2
111 Gear 438
1.2
112 Grande 100 347
113 Grande 150 233
116 Theme Blue 377
117 Theme Pink 377
118 Theme yellow 377
119 Theme Green 377
M3
211 Single Roll 200
1.1
212 Twin Roll 150
213 4 Roll 150
214 10 R Wrapped 200
216 Single Roll (B) 200
217 Twin Roll (B) 150
218 4 Roll (B) 150
219 10 R Wrapped (B) 200
311 Kitchen Roll 1R 120
0.9
312 Kitchen Roll 2R 90
M4
411 Quix Brown 50
0.2
412 Quix White 50
M5
613 Rush Dozen 40 0.2
M6
513 Coffee Napkin 15 0.2
M7
511 Table Napkin 25 0.3
M9
711 Dawat Pack White (36 PCs) 70 0.6
712 Dawat Pack White (48 PCs) 52 0.5
7.2
MOQs :(Minimum Order Quantity)s
 MOQ for SPJ : Boxes (2000)
 For Coffee Napkin : (60,000) Napkins
 For Table Napkin : (60,000) Napkins
Strategic Choices Of Operating Environment :
Bikiya Industries currently operating in following environment.
 Make to stock
 Make to order

12. VARIOUS CAPACITIES :
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Design Capacity :
 Maximum obtainable output .
Effective Capacity :
 Maximum capacity subject to planned and expected variations such as maintenance , lunch
breaks , scheduling conflicts.
Actual Output :
 Rate of output actually achieved . It is subject to random disruptions: machine break down ,
absenteeism , material shortages and most importantly the Demand.

13. EFFICIENCY AND UTILIZATION:
Anticipating the customer’s requirement on continuous basis.
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Efficiency And Utilization Calculation :
EFFICIENCY : Actual Output / Effective Capacity
UTILIZATION : Actual Output / Design Capacity
Both measures expressed as percentage %.

14. THE BULLWHIP EFFECT RESULTS :
Anticipating the customer’s requirement on continuous basis.
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15. SAFETY STOCK :
Anticipating the customer’s requirement on continuous basis.
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Safety stock is the stock held by a company in excess of its requirement for the lead time.
Company hold safety stock to guard against stock-out.
Safety stock is calculated using the following formula :
SS = (Max daily usage – average daily usage ) x lead time
Lead time is the time which includes production lead time , transit time or in case if PM/RM
not available then supplier lead time will be added.

16. DELIVER (DISTRIBUTION RESOURCE PLANNING)
Anticipating the customer’s requirement on continuous basis.
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Distribution Resource Planning (DRP) :
DRP develops a projection for each SKU and requires :
 Forecast of demand of each SKU
 Current inventory level for each SKU.
 Safety stock.
 Recommended replenishment quantity .
 Lead time for replenishment.

17. DISTRIBUTION NETWORK ACROSS PAKISTAN
Anticipating the customer’s requirement on continuous basis.
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Handler
(warehouse)
DISTANCES – KM
BMWH – Multan : 935 KM
BMWH – LHR : 1296 KM
BMWH – FSD : 1164 KM
BMWH – RWP : 1479 KM
WAREHOUSE CAPACITY :
WH : CAPACITY / MAX (CARTONS)
Multan : 810 Cartons
LHR : 3600 Cartons
FSD: 1130 Cartons
RWP: 1800 Cartons
BMWH : 4000 Cartons

18. TRANSPORTATION SYSTEM : RECOMMENDATION FOR FUTURE
Anticipating the customer’s requirement on continuous basis.
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The new transport system design works around improving efficiency/OTIF (On time-In Full)
Recognizes that transport cost is a factor of following :
 Fixed cost : (cost of vehicle incurred per day )
 Variable cost (cost incurred in motion per KM)
 Vehicle loading/unloading times ( Reduce Idle time )
 The only way to achieve savings in transportation is by weeding out the inefficiencies.

19. FREIGHT CHARGING :
Anticipating the customer’s requirement on continuous basis.
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Freight Charging :
 Journey times for every route will be fixed and agreed upon. This would constitute the fixed
charge. The variable charge will be based on actual distance.
Vehicle reporting time
Vehicle loading time
Vehicle departure time
Vehicle reporting time
Vehicle unloading time
Vehicle departure time
 Time and Date stamping at every station with receiving signature.

20. WAREHOUSE :
Anticipating the customer’s requirement on continuous basis.
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Design Criteria :
 Warehouse design criteria address physical facility characteristics and product movement.
 Three factors to be considered in the design process are :
 The number of stories in the facility
 Height utilization .
 Product flow

21. WAREHOUSE : ( PRODUCT FLOW)
Anticipating the customer’s requirement on continuous basis.
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Product Flow :
 Warehouse design should also allow for straight
product flow through the facility whether items are
stored or not.
 In general , this means that product should be
received at one end of the building , stored in the
middle ,and then shipped from the other end.
 Straight-line product flow minimizes congestion and
confusion.
 The elevator is also often a bottleneck in product flow
, as use of elevators to move product from one floor
to the next requires Time & Energy.

22. THE WAREHOUSE IN THE LOGISTICS SYSTEM :
Anticipating the customer’s requirement on continuous basis.
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Function of warehousing include
 Transportation consolidation
 Docking
 Service
 Protection against contingency
 Inbound
 Outbound
 Inventory tracking
 Labor management
 Dispatch/shipping
 Reporting

23. WAREHOUSE :
Anticipating the customer’s requirement on continuous basis.
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Objectives of efficient warehouse operations :
 provide timely customer service and maintain OTIF (on time-in full).
 Keep track of items and maintain records so they can be found readily & correctly .
 Minimize the total physical effort and thus the cost of moving goods into & out of storage.
 Proper stacking and palletizing with Bincards .(visual and visible)
recommendation for future

24. QUALITY (QCD)
Anticipating the customer’s requirement on continuous basis.
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25. QCD (AIMS & OBJECTIVES OF QC):
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1. Improvement of quality.
2. Reduction of scrap and rework.
3. Efficient use of 4M’s.
4. Removing production bottle-necks.
5. Decreased inspection cost.
6. Reduction in cost per unit.
7. Quality caution at all levels.
8. Reduction in customers complaints.
9. To check the variation during manufacturing.
10. To prevent the poor quality product reaching to customer.

26. QCD : (EXPECTED OUTCOME)
Anticipating the customer’s requirement on continuous basis.
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1. Improving the quality of products.
2. Increasing the productivity of manufacturing processes.
3. Reducing manufacturing and corporate costs.
4. Determining and improving the marketability of products.
5. Improving and / or assuring on-time deliveries and availability .

27. QCD : CORRECTIVE ACTION
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 Must address nonconformity.
 Must address root cause (s).
 Should prevent re-occurrence.
 Must be timely corrected.
 Time scale must be realistic,
 Action may be in three stages.
1. Initial corrective action
2. Longer term preventive action
3. Continuous improvement plans.
The process of submission , evaluation and verification is known as “Follow-Up “.

28. SUPPLY CHAIN DAILY ACTIVITIES & FOLLOW-UP
Anticipating the customer’s requirement on continuous basis.
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Procurement :
• Daily update SPJ status and follow-up to meet the delivery timeline.
• Co-ordinate with planning to cater any upcoming shortage.
• New design’s artwork updating.
• Follow-up with suppliers to ensure on time deliveries of items.
Production Planning :
• Daily production plan.
• Daily shortfall production report .( variance report)
• Daily machine loading sku wise , capacity wise monitoring .
• Material issuance (should be informed and issue MIN one day before for next day plan.
• Daily PM/RM/AM inventory review.
• Production plan should be make on the basis of nationwide FGs requirement.

29. SUPPLY CHAIN DAILY ACTIVITIES & FOLLOW-UP
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Warehouse : (Materials Management)
• Daily update inventory reports (RM,PM,AM) @ 09:30 AM.
• Monitor and ensure daily material issuance and receiving from suppliers .
• Daily submission of GRN to finance department.
• Proper house keeping and compliance as per quality standards.
• Bincards updating of every item .
• Proper stacking of any item on pallets with labeling.
Distribution / Dispatch :
• Three days (3) dispatch plan should be in hand on the basis of NW WH requirement
/demand.
• Daily monitoring of FG’s inventory levels and fulfill the demand within 5 days.
• Timely communicate to planner for any special demand from regional WHs.

30. Anticipating the customer’s requirement on continuous basis.
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