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Procedure Manual Document as per ISO -9001-2008”-- Inventory Management of Spare Parts for Mechanical Department of THDC India Ltd. Tehri (PSU & a joint venture of Govt. of India & Govt. of U.P.)

Rs. 2,500.00



Introduction:
In today’s business environment, the importance of after-sales service is high. Lost revenues due to disservice are enormous. Not only is after-sales service valuable as a competitive advantage for manufacturers, direct revenues in service are also remarkably high. For many of the world’s largest manufacturing companies, Deloitte (2006) investigated revenues in the service business over a period of one year, and it reports combined revenues of more than $ 1.5 trillion. Further, it reports that on average service revenues account for 25% of the total business and that profitability is much higher than in the primary product business. Aberdeen Group (2005) also reports that profitability in service is higher than profitability for initial products, and Bundschuh and Dezvane (2003) mention that service revenues account for 30% or more of total revenues for many manufacturers.

The above indicates that the after-sales service market deserves substantial corporate attention, which is even truer since in parallel, customer requirements have tightened. AberdeenGroup (2005) indicates that 70% of the respondents in its study have seen service response times as required in service level agreements shrinking to 48 hours or less, and Deloitte (2006) states that customers keep raising the bar for service excellence by requesting shorter lead times, higher service levels, lower costs, and better customer service support. At ASML, a company that is active in the semiconductor supplier industry, we observed that customers increasingly require swift replenishment of defective parts to avoid costly down-time. After-sales service basically concerns maintenance. Besides preventive maintenance that is scheduled in advance, we distinguish corrective maintenance that has to be carried out upon failure of a system. Typically, corrective maintenance is done on a repair-by-replacement basis: The defective part is removed from the machine and replaced by a new or as good as new spare part. Possibly, the defective part can be repaired off-line, but in the meantime, the machine can resume its task. For this corrective maintenance, a repairman is needed as well as the proper spare part. Since the demand for spare parts is not known in advance, companies that provide the after-sales service have to have spare parts inventory.

Flint (1995) stated that the world’s spare parts inventory in the aviation industry amounted to $ 45 billion at that time. Any means to downsize this stock, without decreasing customer service, would be more than welcomed by the aviation industry. Also in other industries, large amounts of money are invested in spare parts inventory and this has increased over the years. Because of these large amounts of money involved, there is great interest in cost savings, and even savings of a few percents only constitute large cost savings in absolute terms.

Number of Pages of Project Report: 60
Package Includes: Synopsis/Project Proposal + Project Report
Project Format: Document (.doc)

Table of Contents of Project Report:
CHAPTER 1: INTRODUCTION
CHAPTER 2: LITERATURE REVIEW
2.1 Spare parts inventory control
2.2 Classical ABC Classification
2.3 Multi-Criteria ABC Classification
2.4 Criticality analysis
2.5 Demand pattern
CHAPTER 3: THEORETICAL FRAMEWORK
3.1 Best Practices in Spare Parts Management
3.2 What could be the IT automation approach?
3.3 Business Processes and Functions In Spare parts Management
3.4 Complexities In Spare Parts Management
CHAPTER 4: THE ORGANISATION
CHAPTER 5: RESEARCH METHODOLOGY
5.1 Objectives of research
5.2 Motivation in research
5.3 Types of Research
5.4 Objectives of study
5.5 Statement of the problem
CHAPTER 6: DATA ANALYSIS
CHAPTER 7: FINDINGS
CHAPTER 8: RECOMMENDATIONS
CHAPTER 9: LIMITATIONS
REFERENCES
APPENDIX


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