Supply chain management: The case on cement factory
Introduction and Literature
There is a need to investigate the process of supply chain management among cement industry. Cement industry is considered as one energy exhaustive manufacturing industries around the globe as it is the basic component of making concrete, making this industry with a priority of having an apparent understanding, and careful planning and control of its manufacturing and managerial activities and operations (Hokoma et al., 2008). There has to be committed to develop enhanced abilities to produce goods that meet the quality requirements of present markets with all the possible products and services, which could be achieved by providing proper and highest technology available. However, Global World Report, (2004) assumed that the current status of cement industry within Libya is running only with 50 percent from its capacity utilisation (Mobs, 2004; Hokoma et al., 2010).
The management of supply chain is gaining increased attention due to the expansion and complexity of the supplying networks. Managing the economic order quantity system into certain supply chain is one of the important factors to reduce the inventory costs thereby increasing the companies’ profits. Management systems could be used to resemble inventories throughout the supply chain. In fact, there are many reasons which delay the production processes, making negative effect on the productivity of the production system as well as increasing the related costs. The role of inventory in a the supply chain can be considered as important factor that affecting the effectiveness of the supply chain as inventory is kept to avoid uncertainties throughout the supply chain (Handfield et al., 1999; Hokoma et al., 2007b; Hokoma et al., 2008b).
The supply chain consists of many stages including fulfilling of some of the customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses and all other related operations and processes. The supply chain within any organization includes all functions involved in filling the customer request, such functions include, but are not limited to, new product development, marketing, operations, distribution, and finance and customer service. The primary purpose for the existence of any supply chain is to satisfy customer needs. Supply chain activities begin with the customer orders and ended after delivering the required items to the right customer in the right place with satisfactory level (Sunil and Meindl, 2001; Hokoma et al., 2006).
Methodology
The data to be used are to gather through semi-structured interviews and secondary data files. The interviews will be at factory site with top and middle management levels. The questions for interviews are to be prepared according to what is needed to fulfil the requirements for the study. The secondary data will be obtained from the documented files in the Finance, Maintenance, Production and Storage Departments. SCM often span large number of inter business departments and across several businesses to deliver the product that the customer requires.
Thus, emphasis is given to the design of supply chain management by simulation processing industry (cement industry). It addresses the importance to implement computer simulation through a system example. A manufacturing system can be changed, analysed and reported without disturbing the ongoing production process. Variant disturbances of duration affect the production schedules can be configured with the use of simulation. A change in the production can be investigated for plausibility before being implemented. Production times can be recorded from the simulation software and a comparison made to other operations.
References
Handfield R; Ernest L; Nichols, Jr. (1999); "Introduction to Supply Chain Management". Michigan State University, Memphis University, pp. 1-24.
Hokoma R., Khan M. & Hussain K., (2010), The Present Status of Quality and Manufacturing Management Techniques and Philosophies Within The Libyan Iron & Steel Industry, The TQM Journal, V. 22, No.2.
Hokoma R., Khan M. & Hussain K. (2008a), An Investigation of Total Quality Management Implementation Status for the Oil & Gas Industry within Libya, MEQA, 2nd Annual Congress, Dubai, UAE
Hokoma R., Khan M. & Hussain K. (2008b), Investigation into the Various Implementation Stages of Manufacturing and Quality Techniques/Philosophies Within the Libyan Cement Industry, Journal of Manufacturing Technology Management, Volume 19, No. 7. pp. 893-906
Hokoma Hokoma R.; Tughar M.; Abdussalam R.; Ramadan E. & Bindra S., (2007b), Strategic Impact of JIT Technique for Construction Industry, Proceeding of the Second International Engineering Conference on Construction and Development, Gaza, Palestine.
Hokoma R., Khan M., & Hussain K., (2006), The Current Status of MRPII Implementation in Some Key Manufacturing Industries within Libya: A Survey Investigation. Proceedings of the 22nd International Conference, Narosa Publishing House, New Delhi, pp .483-490.
Mobbs M., (2001), The mineral industry of Libya, U.S. Geological Survey, available at: <http://minerals.usgs.gov/minerals/pubs/country> [Accessed 17th November 2009].
Sunil Chopra & Peter Meindl. (2001); Supply Chain Management Strategy, Planning, and Operation". Prentice Hall, Inc., Upper Saddle River, New Jersey, pp. 3-60, 169-171.
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