A presentation on

Madura Accessories Limited (MAL)

Presented by : Farhan AliMayank ShuklaAshutosh AwasthiSanjay GuptaPresented to : Ms. Neha TikkoAsst. professor

About MALHived off from CIVIL in 1992.Approx sales turnover Rs. 45 cr.Main products were interlining , zips and needles.Main competitors Tata and Bombay dying. ProductsInterlinings : 50% turnover & 30% profit.Zips : 30% turnover & 40% profit.Needles : 20% turnover & 30% profit.Overall MarketOrganized ,Tata (35% market)Bombay dying (35% market)MAL (30% market)Market cntd.Unorganized market ,Tata (25% market)BD (20% market)MAL (10% market)Local merchants (45% market)Supply ChainMAL produced 85 lakh meters of 200-meter rolls, using 22 lakh kilos of yarn annually.Interlinings- material used as an extra lining between the ordinary lining and the fabric of a garment(for shaping the garments, also called skeleton of dress)Bleaching/dyeing are contracted and powder coating is done in-houseYarnFabricProcessed FabricInterliningsweavingBleach or dyePowder coatingActivitiesYarn bought from 4 merchants in MaduraiYarn quality checked in Madurai warehouseIssued to contract weavers for conversion to grey fabric (7 converters in Erode, Coimbatore, Madurai and Ambasamudram)Grey fabric brought to Madurai warehouse for and quality checkedGrey fabrics issued to bleaching houses for conversion to white/coloured fabric (3 converters in Erode, Bhavani and Ambasamudram)Continued6. White/colored fabric brought to Madurai warehouse and quality checked.7. Fabrics issued to own mfg house (Ambassamudram) for final processing and coating to produce interlinings. Then quality checked, packed and sent to Bangalore central warehouse (CW)8. Interlinings stocked at Bangalore CW and sent to the 11 depots as per dispatch advice.9. Interlining dispatched to customers (garment factories and distributors/ dealers) as per requirementLocation involved in Supply Chain

Average Lead TimeProcessLead time ( in weeks)Yarn (madurai)4weaving1Grey fabric (madurai)2bleaching1Bleaching fabric (madurai)2process1/2Coated interlining (bangalore)2depot4Average lead time

Total= 18 weeksSupply ChainMaterial/ProcessCost (Rs/mtr)Yarn17.75Weaving2.25Bleaching3.50Final processing7.00Transportation0.25Excise duty10.00Selling price48.00Total cost= Rs. 45/mtr (based on average Rs. 7000/truckload of 6 tonns/movement.Supply Chain

Total cost= 45 per metreBased on an average of Rs 7000 per truckload of 6 tonnes per movementDilemmaWhether we are in business of converting yarn or in the business of supplying interlinings to their customers ??Major Problems IdentifiedInconsistency of input.Inspection costs.Losses.Financing the pipeline.Inconsistency in inputS1S4S3S2MALP2P1P3YarnQualityuniformity.BleachingWhiteness uniformity.WeavingFabric weight & the grey fabric.Inspection costsMaterialCosts(p/mtr)Yarn3.1 p/kgFabric14.0 pBleached fabric20.0 pFinal product24.0 pLossesRejects were not always attributable to specific convertor.Repeated transport and handling.'Salvage' product ie fents, rags and chindies.100 units yarn => 90 unit woven fabric => 85 unit sold at depot.Out of 5, 3 contained fents and rags (sold at Rs. 120/kg) and rest 2 chindies (at Rs. 10/kg).Financing the pipelineWastage convertors,Reconciliation efforts between purchase orders and subsequent receipts.Efforts taken to assign responsibility for rejects and reconditioning.Proposed Supply ChainSourcing of fabricsWhite fabric (30 percent)Grey fabric (70 percent)Grey fabric dispatched directly to bleaching houses at two locationsAmbasamudram (70 percent)Bhavani (30 percent)For final processing and coating to produce interlinings white and bleached gray fabric sent directly to their own manufacturing houses(ambasamudram)To be continuedQuality of the fabric would be checked, packed and sent to Madurai.Interlinings of the fabric would be stocked at Madurai and sent large volume depots, smaller volume requirements would be sourced from the nearest large depot as per requirements.Arguments In favor of supply chain Less problems due to variations across suppliers.Reducing customer complaints due to better customer satisfaction and motivation.After pre delivery inspection they delivered the required materials per specification.Supplier paid extra charges for the inspection.There would be significant savings for materials:-Reduced inspection cost.Reduced wastage due to fewer handling.Lower financial commitment due to shorter supply chain and longer credit from suppliers up to 60 days. Implementing issues on supply chainSuppliers would be selected on the quality basis, past records and on inspection reports.Negotiations would have to be held with them for appropriate quality guarantees.

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