vendor relations
TRANSCRIPT
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A SOFT SKILL INTERNSHIP REPORT ON THE VENDORS MANAGEMENT OF THE
KUMAR SPINNING MILLS
Submitted by
S.RAJESH
(Reg. No: MA10482)
Under the guidance of
Mr.G. SHANMUGA RAMAN M.B.A., M.Phil., (Ph.D)
Submitted in partial fulfilment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION
UNIVERSITY OF MADRAS
DEPARTMENT OF BUSINESS ADMINISTRATION
JULY2012
ST. MARYS SCHOOL OF MANAGEMENT STUDIES
JEPPIAAR EDUCATIONAL TRUST
JEPPIAAR NAGAR,
RAJIV GANDHI ROAD,
CHENNAI600 119.
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St.Marys School of Management Studies
Jeppiaar Educational Trust
Jeppiaar Nagar,
Old Mamallapuram Road,
Chennai600 119.
Department of Business Administration
Bonafide Certificate
This is certifying that the report is Bonafide work ofS.RAJESH(Register No.MA10482) who
c a r r i e d o u t t h e p r o j e c t w o r k u n d e r o u r s u p e r v i s i o n d u r i n g t h e y e a r .
Project Guide Head of Department Principal
Submitted for the viva-voce Examination held on
INTERNAL EXAMINER EXTERNAL EXAMINER
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DECLARATION
I am, a bonafide student of Department of Business Administration, St.Marys School of
Management Studies, Jeppiaar Educational Trust, Jeppiaar Nagar, Old Mamallapuram Road,
Chennai- 600 119, would like to declare that the project entitled A SOFT SKILL
INTERNSHIP REPORT ON THE VENDORS MANAGEMENT OF THE KUMAR
SPINNING MILLS in partial fulfillment of the requirements for the MBA Degree of the
University of Madras is my original work.
Place:
S.RAJESH
Date: (Reg.No.MA10482)
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Acknowledgement
First and foremost, I thank the ALMIGHTY, who makes his presence in all ways of my life, for
giving me the strength and willpower to complete the project work in a successful manner.
My Sincere thanks to our Honorable Founder & Chairman Col. Dr.JEPPIAAR. M.A.,
B.L., Ph.D., his blessings.
I would like to express my deep sense of gratitude to our beloved Secretary &
Correspondent Dr.P.Chinnadurai M.B.A., M.Phil., Ph.D.,
I would like to express my gratitude to our beloved Directors Thiru.Marie JohnsonB.E.
M.B.A.,M.Phil., (Ph.D)., and Thirumathi. Mariazeena Johnson, B.E., M.B.A., M.Phil,
(Ph.D) for their continuous support.
I would like to thank our Principal Dr. A.Christy MCA., Ph.D., and our Head of the
Department Dr. N. Kannan M.B.A, P.G.D.C.A, M.Phil, Ph.D, for giving necessary
support and encouragement during this project.
I would like to extend my sincere thanks to my guide Mr.G.SHANMUGA RAMAN M.B.A.,M.Phil., (Ph.D) for his/her support and guidance in completing my research on time.
I would like to place my graceful thanks to Mr.K.Balan for helping me in doing the
project their organization and providing me with necessary information in completing my
project.
I am also thankful to our librarian Mr.M.Johnson for his support in providing thenecessary books and journals for my Project.
I would also thank my Institution and my faculty members. I also extend my heartfelt
thanks to my family members for their moral support.
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CONTENTS
Chapter no Title Page no
1 Introduction 6
2 Company profile 15
3 Organizational chart 16
4 Product profile 19
5 Objectives 30
6 Methodology 30
7 Vendors management 31
8 Conclusion 50
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A spindle containing a quality of yarn rotates more easily, steadily and continuous longer than
an empty on hence the next improvement was the additions of a weight called a spindles whorl at
the bottom of the spindle. These whorls are dices of wood, stone, clay or metal with a hole in the
center for thee spindle which keep the spindle steadily and promote its rotation.
Kumar spinning mills (P) LTD has been started at the year of 1990. It is located at
Krishnapuram on the way to thiruchendur just 6km from palayamkottai. The total area of this
mills premise is 15 acres, only 30% of the area is utilized for thee machinery, building,
remaining areas are utilized for plantation of trees. Trees like teak, mango, neem, coconut, and
Alma etc. The mill is situated at papakulam village, which is surrounded by many villages viz,
Krishnapuram, seithunganallur, Arokanathapuram, Aachhimadam, V.M.Chatram, where the unit
get labours. The organization is giving most important for the environment protection.
The production process and management of this Kumar spinning mills is properly managed
by popular 5-S principles, a JAPANESE TECHNIQUE used for continuous process
improvement in the production.
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1.2 GROWTH
India is now a fast emerging market inching to reach half a billion middle income population
by 2030. All these factors are good for the Indian textile industry in a long run. Even though the
global economic crisis seems to be worsening day-by-day, as long as economies are emerging
and growing as those in South and South East Asia, textile industry is here to grow provided it
takes competition and innovation seriously. Read below to have an insight of the stand of the
Indian Textile Industry in the economy. The Indian Textiles Industry has an overwhelming
presence in the economic life of the country. Under 11th Five Year Plan (FYP) it was projected
to accelerate to a growth rate of 16 per cent in value and should reach the value of USD 115
billion (exports USD 55 billion and domestic market USD 60 billion) by 2012. Exports are
likely to reach USD 32 billion in 2011-12 and domestic market USD 55 billion.
The domestic textile industry comprises of 1608 spinning mills and 200 composite mills, with
an installed capacity of 43.27 million spindles (of which 33.25 million spindles are in operation),
523,000 Open End Rotors (of which 384612 are operational) and 52,000 looms (of which only
14500 are under operations) in the organized sector along with another 1219 small scale spinning
units with 4.89 million spindles and about 242023 Rotors in the small scale decentralized sector.
Globally, cotton prices have spurred up in the cotton 2010/11, thanks to the upsurge in demand
from the leading consumers and exports. In India prices of leading variety of cotton Shankar
6A shot up 61 per cent from Rs 104 per Kg in September 10 to Rs 168 per kg in March 11. This
sharp increase in the cotton prices has easily passed on by the spinning sector due to lower
inventories and pent up demand till March 11. However since then demands eased both globally
and domestically, as the downstream players were unable to pass on the sudden sharp rise in the
raw material prices. With the dip in demand cotton prices witnessed free fall from the March 11
levels.
In just two months, cotton prices fell sharply 22 per cent to Rs 117 per Kg in May.
Resultantly, spinners have piled up inventory at higher cotton prices and with sudden drop in
demand; they have to undertake huge losses on higher value of inventory. With subdued demand
cotton prices further eased to Rs 100 per kg in August 11. In the current new cotton season
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2011/12 the cotton prices remained lower as the demand sentiments in the domestic market have
not picked up. In the beginning of March 11, DGFT has notified ban on cotton exports with
immediate effect on 5 March 12. The cotton exports registrations stood at around 120 lakh bales
as on 5 March 12 and thus the exportable surplus registered but not yet shipped was to the tune
of 24 lakh bales. As on 4 March 12, cotton arrivals are to the tune of 233.76 lakh bales leading,
nearly 50 per cent of arrivals booked for exports. CAB estimated the cotton crop to be flat at 340
lakh bales and domestic consumption to decline by 8 per cent to 250 lakh bales in CY11/12.
After the representations from all the leading cotton producing state governments on the
price, the Government has took off ban on cotton exports and notified that "Exports orders
already registered with DGFT so far but not yet exported will be expeditiously scrutinized to
ensure that their papers are in order and revalidated". Sharp volatility in the commodity prices
has dented the competitiveness of the industry in FY12. While huge cotton price and spike in
interest rates dumped the spinning industry in to losses in H1FY12, spike in the raw material
prices and levy of 10 per cent excise duty on branded garments have dented the consumer
sentiment amidst increasing interest rate cycle for the garment industry. Further, the recent
concession of custom duty free import given to Bangladesh and Nepal, apart from Bhutan and
Maldives is adding pressure to the garment industry in India.
However, RBI has rejected proposal of Textile Ministry to restructure around Rs 1, 00,000 crore
either by extension of moratorium period etc. According to the available statistics, total
outstanding loans to textile industry by banking industry amounts to Rs 1,54,480 crore at end of
January 11.
In this background list of textile related associations namely, Confederation of Indian Textile
Industry, Federation of All India Textile Manufacturers' Association (FAITMA), Southern India
Mills Association (SIMA) and Indian June Mills Association (IJMA) have appealed Government
to consider the following requests ahead of Union Budget
In 1990 the mill has started with 3000 spindles. In the early stage the yarn product was used
for bet sheet & towels. The count of yarn spun were 20s, 30s, 2/20s, NE. The turnover of the
company was around Rs.2, 00, 00,000 per annum. No.of. labours employed were 70.
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In 1995 the mill was expanded the spindles with 3000 and the total spindles was 6000. The
count of yarn spun were 20s, 30s, 40s, 2/20s, NE. the turnover of the company was around Rs.5,
00, 00,000 per annum. The quality of yarn was improved from weft to warp. The no. of labours
employed was 120.
In 2000 the mill was expanded the spindles with 4000 and the total spindles was 10,000. The
count of yarn spun were 20s, 30s, 40s, NE. the turnover of the company was around Rs.10,
00, 00,000 per annum. The quality of yarn was improved from weft to warp to hoister. The no.of.
Labours employed was 200. The management gave most important to quality and the exported
30% of the product to foreign countries.
In 2003 the mill was expanded the Spindles up to 12,000 with latest machineries imported
from foreign countries. The count of yarn spun were 20s, 30s, 40s, 52s, NE. The turnover of the
company was around Rs.12, 00, 00,000 per annum. The quality of yarn was improved from warp
to hoister. No.of. labours employed were 250.
In 2005 the mill has expanded the Spindles up to 15,000 with latest machineries from leading
machineries manufacturers. From,
Reiter draw frame model D35 from M/S Reiter machine works, Germany.
Lakshmi Ring Frame LR 6/s from M/S Lakshmi machine works, Coimbatore.
1.3 PRESENT STATUS AND RECENT DEVEVELOPMENT
A general impression I get talking to the Indian textile industry leaders in the past few days
make me understand that the industry is in a pinch. Why so? These are the reasons:
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Global recession Less export orders due to reductions in inventories by global retail giants like Wal-Mart Price of raw materials like cottons and Infrastructure bottlenecks such as power, particularly in Tamil Nadu.
It has been recently reported that textile exports in 2009-10 period will be equal or could be
even lower than the one achieved in 2008-09. In this global financial meltdown situation, what
should the Indian textile industry do? In the times of adversity, it is an immediate task for all
stake holders to pause for a moment and take stock of the difficulties and chart plans for
sustainability and growth of the Indian textile industry.
Textile Industry has reported faded performance in the nine months ended December 11 mainly
on the back of sharp fall in the cotton cost and heavy inventories at higher rates and dampened
demand. The MMF industry has also faced the wrath thanks to the spike in the raw material
prices. As against global trend of MMF constituting more than 60 per cent of world
consumption; MMF in India accounts for around 40 per cent of the fiber consumption. However,
with the spike in the cotton prices, the industry is slowly shifting towards the MMF yarn or
blended yarn. Excise duty cut on all the fibers to 4 per cent will bring level field for the domestic
textile Industry. Also, the cost of production in India is relatively higher than frontline players
like China, Bangladesh etc., partly due to higher power and labor costs. This can be partly
addressed if excise and customs duty on liquid fuels are removed / reduced. Further, cut in the
customs duty on the textile machinery will also shift the industry to new technology machines
and encourage capes facilitated by TUFS.
The sharp spike in the cotton cost last year has dented the demand across the sectors of textile
industry in FY12. Partial roll back of cotton exports may drag ending stocks down by 68 per cent
can put upward pressure on the prices. However, the domestic prices are not factoring this effect
and continue to ease. Thus, despite conducive cotton prices in the current market, what the
industry is missing at this juncture is "demand". Revival in domestic demand is need of the hour
which can help the textile industry when the global countries are witnessing a slowdown.
Recently the mill has installed fully automatic winding No.21c process corner manufactured
by muratu machinery, Japan. The cost of this machine is around Rs.1, 50, 00,000. 50% of the
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production of yarn exported to foreign countries. The turnover of the company was around
Rs.15, 00, 00,000. No of workers employed were 300.
1.4 EXPECTATIONS
As the saying goes in the financial sector, it is not advisable to put all eggs in one basket. This
is what happened somewhat in the case of the Indian textile industry. With the opening of world
markets and the abolition of textile quotas since 2005, there came a negative situation as well.
But, hindsight is always 20-20. Indian textile industry should have focused on all major sectors
right from fiber to fashion and planned for an organized growth across the supply chain so as to
compete with China and even countries such as Pakistan, Vietnam and Thailand. Instead, theindustry had put majority of its stock in the spinning sector. This is clearly evident in the
utilization of Technology Up gradation Fund Scheme effectively by the spinning sector.
Although it is a positive outcome, in my opinion, the industry turned a blind eye on value-adding
sectors such as weaving and finishing. Indian power loom sector, which enables value-addition is
a highly unorganized industry and needs major up gradation. Not only India does not have world
quality indigenous shuttle less looms, but also investments are not adequate to cope with the
quality and quantity to cater to the export market. Technical textiles sector is still in its infancy
and a tangible growth will be highly visible by 2035 when the growth in this sector will be
exponential. Is there a panacea to the complexities surrounding the India Textile Industry?
The weak links in the Indian conventional industry such as weaving and finishing have to be
strengthened. A major thrust here is to have consolidated efforts by Indian Textile Machinery
Manufacturers Association, end-users and the Government to undertake a moon shot and come-
up with alternatives to European Machinery, which the weaving sector can afford. This should be
doable within the next five years, if dedicated efforts are undertaken with the financial support
for R & D by the Government through its various schemes;
Forward in the non-commodity textile sector, i.e. technical textiles sector from a non-
crawling phase to at least a crawling industry in the next three years. General awareness on
nonwoven and technical sectors has been created with the recent marathon training workshops
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market and work more effectively this new structure may help a lot.
Almost all the associations have requested for the extension of TUFS scheme for the 12th five
year plan (starting FY13-17). TUFS was introduced in 1999 to catalyze investments in all the
sub-sectors of textiles and jute industry by way of 5 per cent interest reimbursement. Since its
inception, Rs.11196 crore of subsidy has been released till FY11 of which Rs. 8883 crore.
Thus, TUFS has catalyzed investments of Rs 2.08 lakh crore during its operational life span of
over 11 years. However in April 11, the Government has launched restructured TUFS with an
overall subsidy of Rs 1972 crore till end of FY12. This subsidy is expected to leverage an
investment of Rs.46900 crore, with sectarian investment shares of 26 per cent for spinning, 13
per cent for weaving, 21 per cent for processing, 8 per cent for garmenting and 32 per cent for
others. According to the National Fiber Policy report, India requires around Rs 188000 crore of
capes in Textile industry to keep up the demand during 2011-2020. Thus, encouraging capacity
addition of weaving and garmenting sector will help to strengthen the loose links of the domestic
textile industry and also improve cash flows.
Also "Neutral Fiber Policy" will help to give a level playing ground for MMF sector in a cotton
dominated textile industry. Further, cut in the excise duty on branded apparels will also help in
decreasing MRP of apparel and boost the demand.
The textile industry in INDIA (including the garments industries) is vital to the economy of
the country. It contributes to 6% of the GDP of the INDIA and earns 18% of the total Foreign
exchange earnings of the Country. The Indian consumption requires 39million spindles. Whereas
at present there are only 33 to 34million spindles running. The recent reports state that the fabric
requirement will be more in the year to come.
In sectors such as spinning where control was dismantled first, Indian companies have
become amount the most competitive in the world export of cotton yarn. The restrictive
industrial policy followed by successive government changes over the decades has created an
industry that is largely fragmented and dominated by SSES. However in the last 12 to 15 years,
Government has steadily removed the restrictions.
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2.4COMPANY PROFILE
Kumar spinning mills (P) LTD has been started at the year of 1990. It is located at
Krishnapuram on the way to thiruchendur just 6km from palayamkottai. The total area of this
mills premise is 15 acres, only 30% of the area is utilized for thee machinery, building,
remaining areas are utilized for plantation of trees. Trees like teak, mango, neem, coconut, and
Alma etc. The mill is situated at papakulam village, which is surrounded by many villages viz,
Krishnapuram, seithunganallur, Arokanathapuram, Aachhimadam, V.M.Chatram, where the unit
get labours. The organization is giving most important for the environment protection.
The production process and management of this Kumar spinning mills is properly managed
by popular 5-S principles, a JAPANESE TECHNIQUE used for continuous process
improvement in the production.
Year of commencement : 1990
Managing Director : Mr.K.Balan.
Directors : Mr.B.Jayakumar Gopi.
Mr.B.Arul selvaraj.
Mr.B.Dhana sighs.
Mrs.B.Dhanaganamani.
Mr.S.Ramachandran.
Area : 15 acres.
Production manager : Mr.Govindraj.
Products : Reeling yarn & Cone yarn.
Share capital : 174 Lakhs.
Registered Office : 19, Pandia Vellalar Street,
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Palayamkottai,
Nellai District627002.
Company Office : Thiruchendur Road,
Krishnapuram, Nellai627011.
VISION
Satisfies the customers needs and demands by the ways of promoting a high quality of
cottons are available in the markets.
MISSION
To increase the volume of profits by reducing the wastages in the production process as
much as possible.
MANAGING DIRECTOR
JOINED MANAGING
DIRECTOR
MANAGER
STORES MAINTENANCE SUPERVISORS QUALITY CONTROL
MECHANICS
MESTHRIS
MACHINE OPERATOR
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Spin Plan veer PC-program is for use on IBM-compatible PCs to compute important fiber
parameters, index of irregularity at each stage of processing, curves for short fiber content
percentage, mean fiber length for leading and trailing hooks and drawing actual and optimum.
DRAFT CURVE through" Knowledge Based Problem Analyses and Problem Solving
Techniques" developed by ITRU GROUP LTD to assist to Spin Plan R&D Project.
Purpose of the program and R&D Project
Spin Plan by Intro Group Ltd. Program has been developed through many years of research
and experience carried out in spinning mills. This program makes use of the fibro gram &
evenness tester instruments to be more valuable to the spinning mills by determining short fibercontent by fiber number, mean fiber length, index of irregularity, draft curve.
PRODUCT PROFILE
Kumar spinning mills private limited, company main product is yarn only. This yarn will be
used for weaving clothes. And so it is not a customer product, it is an industrial product.
Hank Yarn Cone Yarn
HANK YARN
Hank Yarn is used for handlooms production of silk sarees, cotton sarees, etc.
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CARDING
This department is the Heart of the mills. This department function is converting the
cylinder type cotton into silver form. The carding department main function is clearing the
cotton. The machines are having brushes, which brushes are clean the cotton and clear the dust
and cotton seeds completely. The cotton will be getting a polish at this department. The silver
form of cotton lap is store into the plastic cans, and it send to the next departments have enough
number of machines but the power consumption of government policy the 60% of machines are
only used. Others are stopped after the power cut crisis.
COMBING
In this department 20, 24 carding silver will be converted into one silver lap. The main
function is to making a strong and clarity of yarn at this department. The combing department
helps to increasing the evenness. The combing department combed the cotton at this stage.
DRAWING
The drawing departments converts the hanks of 6 carding silver or 8 into create single silver.
The hank of unevenness is decreased. Parallelization and quality drawing silver was created.
The drawing department machines having a digital board, that display the current hank count
bale meter, estimated time and automatically changed next drum when the current one is
complete. The machine capacity is producing 200 meter to 500 meter yarn per minute.
SIMPLEX
The drawing department the hank will be received by the simplex department. Simplex
departments are used to increase the yarn quality and strength. In this department is otherwise
called as pre-spinning department. Here the cotton is converted into bobbins at this department.
The bobbin colors are red, yellow and ash. The hank with bobbins weight is 1kg to 1.5kg each.
SPINNING
Spinning is the final process of converting cotton fibers into yarn. In this spinning
department the roving yarn will be more thinned at this section. Before the simplex department
we called the cotton name as HANK, but at the stage of entering the hank into the spinning
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department is called as YARN. The spinning department is having 15000 spindles, which
helps to making yarn production. The spinning department concerts the big bobbins hank into
small bobbin is 50 to 55 grams only. The spinning department is converting the 1000 meter hank
in to 2600 meter yarn.
CONE WINDING
Cone winding department it is a department of this spinning mill. In this department is doing
to winding the yarn into cone form. The department having the following types of machines
which helps to create different types of customer wanted yarn production.
Ordinary winder with mechanical slab catcher. Cone winding with electronic yarn cleaner and splicer. Auto cone winding machines.
REELING
Reeling department helps to create a reeling yarn using for handloom production that is silk
saris, cotton saris, and the handloom production. It is the raw material of that production. The
reeling department having 15 machines but they using 12 machines only.
The following types of reeling are available that is,
Single hank Plain Reel (SHPR) Double hank Plain Reel (DHPR) Double hank cross Reel (DHCR
Importance of Processing Organization for Optimum Quality of Yarn
The optimum processing Organization would depend upon mainly two factors:
Fiber Data
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Spinning DataType of yarn manufacturing process
Yarn Count Turns per cmFiber Data should be selected in accordance with Spinning Data for achieving optimum yarn
quality with minimum manufacturing costs for this purpose we have . Therefore, processing Organization should be
compatible with Fiber Data and Spinning Data. Second point is to have optimum process.
According to organization the existing raw material mix in the mill is a good one for the
improvement of the firm. According our experience carried out in different spinning mills having
similar fiber data and spinning data would lead to have different quality of yarn parameters due
to different processing Organization. Processing Organization consists of mainly draft
Organization, which includes number of doubling, count fed, ratch setting distances etc. The
usual procedure is to make a trial tests at each stage of processing and follow it up to yarn.
However, this is rather tiresome and could also be influenced by the changes in raw material
mix. Therefore, one has to decide required yarn quality parameters mainly evenness of mass and
strength. For example if one needs 12 CV% in yarn evenness then this program determines the
required CV% values in prior processes in order to achieve target CV% value in yarn.
The CV% values in carding, drawing and roving should not be high and too low but in
accordance with the draft curve. This assumptions made by us prove experimental works carried
out in draw frames in many mills that low CV% values would lead high CV% values in yarn.
But manufacturing of a yarn with accordance with the draft curve one could see the required
CV% value at each stage of processing.
Importance of Draft Curve and Draft Angle
It is clear from our research work in many spinning mills that ratch setting distances and draft
geometry are determined by two conceptions:
If the fibers move in tufts than sliver extension theory
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If the fibers are parallel then fibers-extension theory.
Combination of both case A and case B.
We have also found that setting of ratch distances according to our MASS SPECTROGRAM
PC-PROGRAM is very effective. MASS SPECTROGRAM PC-PROGRAM draws the actual
spectrogram curve according to given fiber properties and CV% of sliver. By comparison of
these two curves we could determine the drafting waves, fiber breakage and optimum ratch
setting distances and break draft ratios.
On the other hand Draft curve is a sign of complete spinning process any deviations from this
curve shows a faulty running process. We have also observed that draft curve is also related to
the strength variation in the yarn. There are many quality/process control procedures, which have
been practiced in spinning mills, and they are filed in files and signed by several mill staff. Draft
Zone setting Pc-program is useful to identify the faulty running process and for quality
improvement better mill running performance. But there are also other tests should be carried out
in the mill. Process/Quality control and assurance procedures could be divided into two sections
Knowledge Based eliminates problems before they occur such as our Fiber Mix Selection Pc-
program, which predicts the yarn strength before yarn manufacturing.
Statistical Process Control corrects the problem on line or of line. For zero defects both systems
are necessary.
But the main point in any spinning mill is to have continuous improvement in minimum
manufacturing costs and optimum quality of products with zero defects. Within this in mind we
have examined all the existing quality/process control procedures and developed step-by-step
problem analyses/problem solving systems through tests carried out in spinning mills. All the
tests carried out in spinning mill analyzed in systematic manner and problems are solved in
correct manner. With this system the complete process is improved.
TYPES OF FIBERS
Artificial fibers are made by extruding a polymer through a spinneret into a medium where it
hardens. Wet spinning (rayon) uses a coagulating medium. In dry spinning (acetate and
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triacetate), the polymer is contained in a solvent that evaporates in the heated exit chamber. In
melt spinning (nylons and polyesters) the extruded polymer is cooled in gas or air and sets... All
these fibers will be of great length, often kilometers long.
Natural fibers are either from animals (sheep, goat, rabbit, silk-worm), mineral (asbestos), or
from plants (cotton, flax, sisal). These vegetable fibers can come from the seed (cotton), the stem
(known as best fibers: flax, hemp, jute) or the leaf (sisal). Without exception, many processes are
needed before a clean even staple is obtained- each with a specific name. With the exception of
silk, each of these fibers is short, being only centimeters in length, and each has a rough surface
that enables it to bond with similar staples.
Artificial fibers can be processed as long fibers or batched and cut so they can be processed
like a natural fiber.
Sewing thread was made of several threads twisted together, or doubled. The pre-industrial
techniques of hand spinning with spindle or spinning wheel continue to be practiced as a
handicraft or hobby, and enable wool or unusual vegetable and animal staples to be creatively
used. This is the process where each of the bobbins is rewound to give a tighter bobbin. Plying
is done by pulling yarn from two or more bobbins and twisting it together, in the opposite
direction from that in which it was spun. Depending on the weight desired, the yarn may or may
not be plied, and the number of strands twisted together varies.
QUALITY CONTROL
Here the software used is for estimating the lines density i.e.) strength of yarn samples. The
length of sample yarn is 120 yards. The sample is wound in wrap reel removed and placed on
the electronics scale. The software automatically accounts the weights. The sample is placed on
the strength tester. Here the threads are broken and the strength at the time of break is cabby the
software with this weight card, strength count and CSP (Count, Strength, and Product) of the
yarn is estimated.
http://en.wikipedia.org/wiki/Woolhttp://en.wikipedia.org/wiki/Goathttp://en.wikipedia.org/wiki/Angorahttp://en.wikipedia.org/wiki/Silkhttp://en.wikipedia.org/wiki/Asbestoshttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Flaxhttp://en.wikipedia.org/wiki/Sisalhttp://en.wikipedia.org/wiki/Flaxhttp://en.wikipedia.org/wiki/Hemphttp://en.wikipedia.org/wiki/Jutehttp://en.wikipedia.org/wiki/Hand_spinninghttp://en.wikipedia.org/wiki/Spinning_wheelhttp://en.wikipedia.org/wiki/Spinning_wheelhttp://en.wikipedia.org/wiki/Hand_spinninghttp://en.wikipedia.org/wiki/Jutehttp://en.wikipedia.org/wiki/Hemphttp://en.wikipedia.org/wiki/Flaxhttp://en.wikipedia.org/wiki/Sisalhttp://en.wikipedia.org/wiki/Flaxhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Asbestoshttp://en.wikipedia.org/wiki/Silkhttp://en.wikipedia.org/wiki/Angorahttp://en.wikipedia.org/wiki/Goathttp://en.wikipedia.org/wiki/Wool -
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Both hank & yarn product is difficult on their count value. The Company has producing
which types of count, wanted by their customers. Based on their customer demands they are
producing the count.
Step by step quality improvement findings
Fibers cannot be used to make clothes in their raw form. For this purpose, they must be
converted into yarns. The process used for yarn formation is spinning. Spinning by hand was a
slow and laborious process. Thus, many implements and methods were invented for making it
faster and simple. Eventually, the techniques were refined and industrial spinning started
manufacturing yarn in various ways. The methods selected depend upon the factors such as the
manufacturer's preference of equipment, the economic implications, the fibers to be used and the
desired properties of yarn to be produced. Ring method is the oldest and the most used technique.
Open- end spinning is another important method. The basic manufacturing process of spinning
includes carding, combing, drafting, twisting and winding. As the fibers pass through these
processes, they are successively formed into lap, sliver, roving and finally yarn. A brief
description of the journey from fibers to yarns will help in understanding industrial spinning in a
better way.
Raw Fiber The raw fiber arrives at a spinning mill as compressed mass which goes through the
processes of blending, opening and cleaning. Blending is done to obtain uniformity of fiber
quality. Opening is done to loosen the hard lumps of fiber and disentangle them. Cleaning is
required to remove the trash such as dirt, leaves, burrs and any remaining seeds. Carding is the
initial straightening process which puts the fiber into a parallel lengthwise alignment. This makes
the tangled mass of fiber ready to produce yarn. Now the fiber is called Lap. The lap is treated
for removing the remaining trash, disentangling and molding it into a round rope like mass called
'Sliver'. The sliver is then straightened again which is called Combing. In it, fine-toothed combs
continue straightening the fibers until they are arranged in such a parallel manner that the short
fibers are completely separated from the longer fibers. This procedure is not required for
manmade staple fiber because they are cut into predetermined uniform lengths. This process
forms a 'comb sliver' made of the longest fibers. The combing process is identified with better
quality because long staple yarn produces stronger, smoother and more serviceable fabrics.
Drawing pulls the staple lengthwise over each other. As a result longer and thinner slivers are
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produced. After several stages of drawing out, the sliver is passed to the spindles where it is
given its first twist and is then wound on bobbins. 'Roving' is the final product of the several
drawing-out operations. It is the preparatory stage for the final insertion of twist. Till now,
enough twist is given for holding the fibers together but it has no tensile strength. It can break
apart easily with a slight pull. The roving, on bobbins, is placed in the spinning frame, where it
passes through several sets of rollers running at high speed and finally the 'Yarn' is produced of
the sizes desired.
Computation of short fiber content by fiber number
This program computes short fiber content by fiber number from the 2.5 and 50% span length
values measured on fibro gram of comber lap, combed sliver and combing noel. Computation of
short fiber content by fiber number would give information to check the combing efficiency of
top comb, combing cylinder and nippers. By comparison of back and front clamps one could
determine the hooked fiber content and fiber parallelism. It should be stated that 2.5 span length
values would not only be taken into account to determine the cleaning efficiency of short fiber
content. The reasons are as follows: An increase in 2.5 span length values could be due to
removing fiber crimp or permanent extension of fibers. Therefore having greater 2.5 % span
length values in combed sliver could lead to fiber breakage in draft zone of ring spinning.
Therefore, we advise you to just check the span length values of combed sliver and ringpnomophil waste values, which make the actual yarn. According to our experience carried out in
different mills that setting the draft zones according to the 2.5% span length or minimum
evenness values would not lead to good quality of yarn and does not represent the real facts.
Therefore, after combing the processes should be checked in accordance with the short fiber
content by fiber number rather than 2.5 % span length values. However, we must state that the
short fiber content by fiber number is more important at combing than the processes after
combing. In order to achieve optimum yarn quality draft zone settings and draft Organization
should be taken into a consideration.
Computation of mean fiber length by fiber weight
This program also computes mean fiber length by fiber weight from 2.5 and 50 % span length
values. Mean fiber length by fiber weight is important especially in combing because it is not
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possible to determine the percentage of short fiber removal from fiber-number distribution
diagram. Therefore, by comparison of mean fiber length of combed sliver, comber lap and
combing noel it is possible to evaluate the combing quality.
Pc-Program Mill Trials for Processing Organization
Retch setting distances and break draft ratios, draft organizations have large influence on the
yarn quality parameters. It is clear that from mill experience that CV% of linear irregularity in
carding, combing, drawing roving could vary and low CV% values would not always lead to
better quality of yarn and it is always tedious to follow up the experiments up to spinning to see
the effects of changes made in previous processes. SPIN PLAN ITRU GROUP LTD has been
developed through extensive research work carried out on many spinning mills as well as many
research works by the other institutions for the last 40 years.
Short fiber content curve for leading and trailing hooks to determine over-stretched fibers and
unsuitable drafting conditions such as field of friction of drafting forces, retch settings.
The complete actual draft curve in accordance with the actual fiber length growth and linear
irregularity at each stage of processing so that optimum spectrogram curves could be obtained at
each stage. We call these parameters as DRAFT CV and draft lengths for each process. Optimum
linear irregularity value at each stage of processing achieves optimum quality of yarn accordingto the requirements of yarn quality as well as identifying faulty running section in spinning
process.
Spinning Machines Traditional v/s Modern Techniques
Hand spinning was replaced by powered spinning machines which was very fast. Initially it
was done by water or steam power and then by electricity. The spinning jenny, a multi-spool
spinning wheel significantly reduced the amount of work required to produce yarn. A single
worker was now able to work eight or more spools at a time.
Spinning Machines then coming spinning frame which produced a stronger thread than the
spinning jenny. As it was too large to be operated by hand, a spinning frame powered by a
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waterwheel was invented. It was then called the water frame. The elements of the spinning jenny
and water frame were combined to create the spinning mule.
Then the spinning frame produced a stronger thread than the spinning jenny. As it was too
large to be operated by hand, a spinning frame powered by a waterwheel was invented. It was
then called the water frame. The elements of the spinning jenny and water frame were combined
to create the spinning mule.
Fibers leaving the carding cylinder contain hooked fibers and if these hooks are not properly
straightened in subsequent processes then yarn quality is deteriorated. The other important point
is that the fiber breakage in carding. If the fibers mean length after 1st passage of drawing does
not increase then it is evident that fibers are broken in carding. Faulty transfer between carding
cylinder and doffer and fiber breakage cause high linear irregularity of CV% in carding sliver
and represent a similar pattern of drafting waves in drafting. Therefore the card settings, relative
speeds of taker-in, cylinder and doffer and selection of proper card wire determine the carding
performance. The processes after carding straighten these trailing and leading hooks. But over
stretching of fibers in drafting zones could weaken the fibers.
Fiber Hook Theory
It has been very well known that fibers leaving the carding machine are not straight andparallel. Fibers have some hooks at leading and trailing sides. And if these hooks are not gently
straightened could be broken and weak places occur in yarn. Trailing and leading hooks could be
determined by fibro gram instrument by measuring the slivers at trailing and leading sides.
Trailing hooks are mainly due to the transfer between carding cylinder and doffer. Therefore, by
checking the card web, card sliver and hooks one could achieve optimum card sliver. SPINNING
MILL DATA BANK + TEXTILE TECHNOLOGY & SPECTROGRAM ANALYSES PC-
PROGRAMS is very effective to minimize trailing and leading hooks in carding. These hooks
could be minimized but could not be eliminated. For this purpose we have also developed
TRANSFER FUNCTION AND DRAFTING WAVES IN CARDING PC-PROGRAM.
ITRU GROUP LTD based upon the actual mill experience and practical results claim that
leading and trailing hooks play an important role in determining the yarn quality and spinning
performance as well percentage of combing noel.
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HISTORY AND ECONOMICS
Hand-spinning was a cottage industry in medieval Europe, where the wool spinners (often
women and children) would provide enough yarn to service the needs of the men who operated
the loom. This would occur in districts favorable to sheep husbandry. The introduction of the
flying shuttle upset this balance. The subsequent invention of the spinning jenny water frame
redressed the balance but required water power to operate the machinery, and the industry
relocated to West Yorkshire where this was available. The nascent cotton industry was located
on wetter side of the same hills. The British government was very protective of this technology,
restricting its export. By the aftermath of World War the colonies where the cotton was grown
started to purchase and manufacture significant quantities of cotton spinning machinery. The
next breakthrough was with the move over to break or open-end spinning, and then the adoptionofartificial fibers. By then most production had moved to India and China.
The mule was an intermittent process, as the frame advanced and returned a distance of 5ft.It
was the descendant of a 1779 Crompton device. It produces a softer, less twisted thread that was
favored for fines and for weft.
The ring was a descendant of the Arkwright water frame of 1769. It was a continuous process;
the yarn was coarser, had a greater twist and was stronger so was suited to be warp. Ring
spinning is slow due to the distance the thread must pass around the ring, and similar methods
have improved on this; such as flyer and bobbin and cap spinning.
http://en.wikipedia.org/wiki/Spinning_jennyhttp://en.wikipedia.org/wiki/Water_framehttp://en.wikipedia.org/wiki/West_Yorkshirehttp://en.wikipedia.org/wiki/Cotton_millhttp://en.wikipedia.org/wiki/Open_end_spinninghttp://en.wikipedia.org/wiki/Synthetic_fiberhttp://en.wikipedia.org/wiki/Synthetic_fiberhttp://en.wikipedia.org/wiki/Open_end_spinninghttp://en.wikipedia.org/wiki/Cotton_millhttp://en.wikipedia.org/wiki/West_Yorkshirehttp://en.wikipedia.org/wiki/Water_framehttp://en.wikipedia.org/wiki/Spinning_jenny -
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OBJECTIVES
Objective of this internship is to get know the vendors management practices of the Kumar
spinning mills pvt limited company.
METHODOLOGY
The data/information required for understanding the concept of vendors management
practice of the Kumar spinning Mills Company was collected by interviewing the production
manager of the company and observed from the presence of the company. The manager gives
much information about their trading, vendors selection and the information regarding to the
survey they taken for the searching of the vendors. And some information is gathered by reading
through reports, manuals, and websites.
INTERVIEW METHOD
Interview method is a method of obtaining information from the respondents by asking
questions personally with direct or in direct questions, this method is very useful to the
researcher to obtain lot of information by the frequent conversation to the respondents.
This method is used in this study for obtaining information from the Managers, Supervisors
and others about the labours, production process, and technologies used in the management of
vendors.
OBSERVATION METHOD
This is the method of observing what is happening in the area we present, we can observe
lively what is happening in the organization, by this method we can obtain truthful information.
This method is very useful for me to see the management techniques lively and observe the
reaction of the workers, it is very essential for me to get good information the vendors by seeing
the environment and the working area of the spinning mills.
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VENDORS MANAGEMENT
Vendors management is the management technique which deals with the searching,selection, maintenance and retaining of vendors. These vendors are come closer to the
organization by the survey taken about them and by the local agents. In other words the vendors
management is one which deals with the management of third parties in the organization whose
involvement in the organization is very essential for the companys development.
Vendors are the heart beats of the production process of the organization whose production
function is carried out by the purchased goods. Thus, vendors management is the important one
in the management to look over it and maintain in the correct and effective way to have a goodand improved production process
At the starting stage of this spinning mill, the vendors are selected by the managing director
and his team. These team members directly investigate the vendors by the help of agents in the
local region.
The Raw materials are consumed from various places, they are
Kovilpatti, TamilNadu. Andhra Pradesh. Punjab. Gujarat.
And other foreign countries like Australia, South & North African Countries, and Vendors
from these regions are selected trough the survey.
SURVEY
This survey is properly decided and preceded by the team members; they usually gathered
information about the cotton consumption in India and other countries by this gathered
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information they used to hold one or two local agent for the better communication to the sellers.
After that they decided to buy.
SELECTION OF VENDORS THROUGH INTERNET
There are some websites that is very useful for the selection of vendors by the companies.
From these websites the vendors get closer to the companies, by certain deals. The company
stores their details in these websites and conveys their wants. From the information they given
to the sites, many offers get closer by the selling of cotton to get consumption of the finished
products yarn. Many of the vendors supplies cotton for get yarn.
TIME DURATION FOR THE COMMUNICATION BEFORE PURCHASING
The time duration is very essential for any type of business contract, this time duration will
result in the positive or negative result according to the estimation of the planned decision. Thus
this time duration plays a vital role in the searching and selection of the vendors for the
management to provide good deliverance when it is needed.
LOCAL ORDERS
For the local orders the company can order before one week before the consumption of the
quality cotton
INTERNATIONAL ORDER
International order should be communicated before 3 months, before the communication the
order should be placed after the value of cotton after the date of consumption, there should be
some risks take part in this area.
Cost fluctuation Time of delivery Risk of accidents.
COST FLUCTUATION
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This problem arises because the order is paced before 3 months, if the cotton price is 100 this
month, it may go down or up during the month of consumption this should be properly
investigate for the international order.
Government helps these order by the mutual agreement on this price fluctuation, this concept
promote the import decision in these problems.
TIME OF DELIVERY
The delivery time may be get late because the goods are come through the ships this lapse of
time get affect the production process and it result in loss.
RISK OF ACCIDENTS
Accidents happens in the sea way transport may collapse the total plan, these problem caused
by some natural disaster and other problem, it should be taken into the knowledge before
choosing this alternative idea.
MANAGING THE PROBLEM RELATED TO INTERNATIONAL ORDER
Government concept of mutual agreement in the problem of price fluctuation, make the
import duties easy for trading cotton from various nations.
Insurance scheme and other scheme secure the companies, which cause loss in case of
accidents and other late in delivery time.
Thus, the managers can get all support to import the quality cotton for the better production
process.
NO. OF. VENDORS
This spinning mill has more than 50 vendors through the websites, local and international
orders. The managers decision from the vast of vendors according to their convenience they get
easy consumption of cotton.
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Strategies to Strengthen Vendor Relations
Vendor management allows you to build a relationship with your suppliers and service
providers that will strengthen both businesses. Vendor management is not negotiating the lowest
price possible. Vendor management is constantly working with your vendors to come toagreements that will mutually benefit both companies.
1. Share Information and Priorities
The most important success factor of vendor management is to share information and
priorities with your vendors. That does not mean that you throw open the accounting books and
give them user IDs and passwords to your systems. Appropriate vendor management practices
provide only the necessary information at the right time that will allow a vendor to better service
your needs. This may include limited forecast information, new product launches, changes in
design and expansion or relocation changes, just to name a few.
2. Balance Commitment and Competition
One of the goals in vendor management is to gain the commitment of your vendors to assist
and support the operations of your business. On-the-other-hand, the vendor is expecting a certain
level of commitment from you. This does not mean that you should blindly accept the prices they
provide. Always get competitive bids.
3. Allow Key Vendors to Help You Strategize
If a vendor supplies a key part or service to your operation, invite that vendor to strategic
meetings that involve the product they work with. Remember, you brought in the vendor because
they could make the product or service better and/or cheaper than you could. They are the
experts in that area and you can tap into that expertise in order to give you a competitive
advantage.
4. Build Partnerships for the Long Term
. Vendor management seeks long term relationships over short term gains and marginal cost
savings. Constantly changing vendors in order to save a penny here or there will cost more
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money in the long run and will impact quality. Other benefits of a long term relationship include
trust, preferential treatment and access to insider or expert knowledge.
5. Seek to Understand Your Vendor's Business Too
Remember, your vendor is in business to make money too. If you are constantly leaning on
them to cut costs, either quality will suffer or they will go out of business. Part of vendor
management is to contribute knowledge or resources that may help the vendor better serve you.
Asking questions of your vendors will help you understand their side of the business and build a
better relationship between the two of you.
6. Negotiate to a Win-Win Agreement
Good vendor management dictates that negotiations are completed in good faith. Look fornegotiation points that can help both sides accomplish their goals. A strong-arm negotiation
tactic will only work for so long before one party walks away from the deal.
7. Come Together on Value
Vendor management is more than getting the lowest price. Most often the lowest price also
brings the lowest quality. Vendor management will focus quality for the money that is paid. If
the vendor is serious about the quality they deliver, they won't have a problem specifying the
quality details in the contract.
8. Vendor management practices
whether you're a multimillion dollar company or a small business with a few employees, here are
some Vendor Management Best Practices that any size business can use.
http://operationstech.about.com/od/vendormanagement/tp/Vendor-Management-Best-Practic.htmhttp://operationstech.about.com/od/vendormanagement/tp/Vendor-Management-Best-Practic.htm -
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THE SUCCESSFUL VENDOR SELECTION PROCESS
THE FIVE STEP VENDOR SELECTION PROCESS
The vendor selection process can be a very complicated and emotional undertaking if you
don't know how to approach it from the very start. Here are five steps to help you select the right
vendor for your business. This guide will show you how to analyze your business requirements,
search for prospective vendors, lead the team in selecting the winning vendor and provide you
with insight on contract negotiations and avoiding negotiation mistakes.
ANALYSE THE BUSINESS REQUIREMENT
Before you begin to gather data or perform interviews, assemble a team of people who have a
vested interest in this particular vendor selection process. The first task that the vendor selection
team needs accomplish is to define, in writing, the product, material or service that you are
searching for a vendor. Next define the technical and business requirements. Also, define the
vendor requirements. Have the team analyze the comments and create a final document. In
summary:
Assemble an Evaluation Team Define the Product, Material or Service
Define the Technical and Business Requirements Define the Vendor Requirements Publish a Requirements Document for Approval
VENDORS SEARCH
Now that you have agreement on the business and vendor requirements, the team now must
start to search for possible vendors that will be able to deliver the material, product or service.
The larger the scope of the vendor selection process the more vendors you should put on the
table. Of course, not all vendors will meet your minimum requirements and the team will have to
decide which vendors you will seek more information from. Next write a Request for
Information (RFI) and send it to the selected vendors. Finally, evaluate their responses and select
a small number of vendors that will make the "Short List" and move on to the next round.
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In summary:
Compile a List of Possible Vendors Select Vendors to Request More Information From Write a Request for Information (RFI) Evaluate Responses and Create a "Short List" of Vendors
1. Compile a List of Possible Vendors
Use a spreadsheet or database program to start entering the contact information for your list
of possible vendors. Depending on the service or product that you are completing the vendor
selection process for, you will want to define the scope of your vendor search in terms of local,
regional, national or international. Some searches will be limited to the local area; for example,
searching for a janitorial service would not be practical on the international level. On the other
hand, a simple mass produced part (in sufficient quantities) would yield itself very well to an
international search.
2. Select Vendors to Request More Information From
Depending upon the effort that you put into searching for vendors, the list you created may be
too long. Assess the number of vendors that you found, taking into account that you will have to
send each one a Request for Information (RFI) and evaluate it upon its return. A targeted "rifle"
approach will serve you better than a widespread "shotgun" approach. Depending upon the size
and scope of the project, anywhere from three to twelve vendors would be an appropriate number
to send an RFI to.
3. Write a Request for Information (RFI)
Write a document that will be delivered to each vendor that you have decided to investigate.
Remember, for smaller parts and basic services this should be short and simple. For more
complex parts and complicated services, a more detail and longer request should be developed.
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This document should include the following sections:
Cover letter introducing yourself and your company A contact person(s) for the vendor to contact with questions and clarifications Short description of the part or service Request for product/service and company brochures Vendor screening criteria questions (see below)
Deadline for the vendor to respond for each of the vendor requirements defined in the analyze
business requirement section; write a question for the vendor to respond to. Here are some
examples that match the examples requirements previously given:
Do you have a local delivery service for same-day orders? What is your market capitalization? Are your employees bonded and insured? Please provide at least five references that we can talk to directly. Do you have electronic ordering processing? What percent of your raw material originates from within the United States?
4. Evaluate Responses and Create a "Short List" of Vendors
When the Request for Information (RFI) packages are retuned, review the responses. If thereare any ambiguities, contact the vendor for clarification. Gather the Vendor Evaluation Team and
decide which vendors will be on the short list. If there are any criteria that you would consider
pass/fail (e.g. "need 24 hour support") and the vendor did not meet this requirement, eliminate
that vendor and move on to the next one. The "short list" should be between two and seven
vendors (depending upon the size and scope of the project).
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3. REQUEST FOR PROPOSAL AND REQUEST FOR QUOTATION
The business requirements are defined and you have a short list of vendors that you want to
evaluate. It is now time to write a Request for Proposal or Request for Quotation. Whichever
format you decide, youre RFP or RFQ should contain the following sections:
Submission Details Introduction and Executive Summary Business Overview & Background Detailed Specifications Assumptions & Constraints Terms and Conditions Select ion CriteriaNow that you have analyzed your business requirements and completed your vendor search,
you are ready to start the meat-and-potatoes of the vendor selection process. A well written
Request for Proposal (RFP) or Request for Quotation (RFQ) is the key for selecting the best
vendor at the best value for your company. Writing a RFP or RFQ is not difficult if you
understand the objectives and function of the document.
Decide: Request for Proposal or Request for Quotation
Request for Proposal (RFP)
An RFP is used for services or complex products where quality, service or the engineered
final product will be different from each vendor that is responding.
Request for Quotation (RFQ)
An RFQ is used for commodities, simple services or straightforward/uncomplicated parts
with little or no room for product or service differentiation between responding vendors.
Negotiation points could include: delivery schedules, packaging options, etc.
http://operationstech.about.com/od/vendorselection/a/VendorSelectBusinessReq.htmhttp://operationstech.about.com/od/vendorselection/a/VendorSelectVendSearch.htmhttp://operationstech.about.com/od/vendorselection/a/VendorSelectVendSearch.htmhttp://operationstech.about.com/od/vendorselection/a/VendorSelectBusinessReq.htm -
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Objectives of a RFP or RFQ
Obtain detailed proposals in order to evaluate each vendors response so that the bestinterests of your company are met on all fronts.
Leverage the competitive nature of the vendor selection process to negotiate the bestpossible deal.
Insure that the interests of all stakeholders within your company will be met and aconsensus reached.
Puts your company in control of the entire vendor selection process and sets the selectionrules up front.
Starts building the partnership between you and the vendor right from the start...Sections of the Request for Proposal or Request for Quotation
The RFP or RFQ should contain the following sections. Keep in mind, that each
Document will be different depending upon the type of company and product you are
Searching for. Tailor each section for your individual needs.
1. Submission Details
Deadlines, mailing address of your company, contact person for questions and clarification
2. Introduction and Executive Summary
Write this section last after the entire document is finished. This is used to provide
Prospective vendors with a brief overview of your company and the requirements for your
product or service.
3. Business Overview & Background
Give a brief overview of your business, products and market sector that you cater to.
This will help your prospective vendors understand what business needs you are
Trying to fill with the vendor selection process. Also provide important background
Information that will benefit the vendor when responding.
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4. Detailed Specifications
This should be the longest section of the document. For an RFP, it will contain the
Qualitative measures and requirements that will drive the vendor selection decision.
For an RFQ this section should provide the quantitative measures that you will be
Looking for in the vendor's response. Example criterion includes:
5. Assumptions & Constraints
Any assumptions and/or constraints that the prospective vendors need to be made aware of
must be listed here. Failure to be forthright and upfront with the vendor will open the door to
renegotiation of the agreement at a later date and runs the possibility of straining the relationship
you have with your vendor. Possible topics include: travel expenses, upgrade/modification costs,
licensing rights, etc.
6. Terms and Conditions
Any terms and conditions of the contract must be listed in order for the vendor to make a fair
and honest response. These may include: financing options, contract length, renewal options,
warrantees, delivery penalties, service levels, etc.
7. Selection Criteria
The final section should be an overview of the selection criteria that you will be using to
make your decision. Some companies prefer to keep this information totally confidential; while
other companies believe this will help prospective vendors focus on what is important to your
company.
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If a requirement is dichotomous to the point where you would want to eliminate the vendor
immediately if they cannot meet the requirement, then mark that requirement as "Pass/Fail". For
example, if youre insurance carrier requires all external contractors that perform work in
secured areas to be "bonded and insured," then any vendor that does not meet this requirement
will be immediately eliminated from further consideration.
4. Assign a Performance Value for Each Requirement
This step may be the longest and most drawn out process of the entire vendor selection
process. The team will need to assign a "Performance Value" that they believe that each vendor
performs on each of the requirements. For larger projects you may have to give each team
member time to evaluate each proposal in order to arrive at a performance score for each
objective.
Once again, if the team cannot agree upon a performance value, then accumulate everyone's
individual value and calculate an "average" across all members. If a team member feels they are
not qualified to render an opinion on a certain requirement, they may abstain from submitting a
value. Use the average score of all submitted values from the team as the Performance Value for
that requirement for that individual vendor. If a requirement is indicated to be "Pass/Fail" and the
team agrees that the individual vendor has not met the requirement, that vendor can be
immediately removed from further consideration
5. Calculate a Total Performance Score
Now that you have an "Importance Value" for each requirement and a "Performance Score"
for each vendor on each requirement, you can calculate a Total Performance Score for each
vendor. Calculate the Total Performance score by multiplying the individual Importance Value
by the vendor's Performance Value. Total the sum of all an individual vendor's Performance
Score to arrive at a Total Performance Score for the vendor.
6. Select a the Winning Vendor
The Total Performance Score is not meant to be an absolute value of determination of a
vendor's proposal. It is to be used as a guide to highlight differences between vendors and spark
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meaningful discussion between team members. Proposals that fell orders-of-magnitude below
the front runners can be eliminated if the team agrees.
The proposal evaluation for the vendor selection process for smaller projects and
commodities will be relatively straight forward. For bigger projects, complex parts or
multifaceted services, evaluating proposals and coming to a consensus will be more involved.
The main objective of this phase is to minimize human emotion and political positioning in order
to arrive at a decision that is in the best interest of the company. Be thorough in your
investigation, seek input from all stakeholders and use the following methodology to lead the
team to a unified vendor selection decision.
5. Contract Negotiation Strategies
The final stage in the vendor selection process is developing a contract negotiation strategy.
Remember, you want to "partner" with your vendor and not "take them to the cleaners." Review
your objectives for your contract negotiation and plan for the negotiations are covering the
following items:
6. Contract Negotiation Mistakes
List Rank Your Priorities Along With Alternatives Know the Difference between What You Need and What You Want Know Your Bottom Line So You Know When to Walk Away Define Any Time Constraints and Benchmarks Assess Potential Liabilities and Risks Confidentiality, non-compete, dispute resolution, changes in requirements Do the Same for Your Vendor (i.e. walk a Mile in Their Shoes?)The smallest mistake can kill an otherwise productive contract negotiation process. Avoid
these ten contract negotiation mistakes and avoid jeopardizing an otherwise productive contract
negotiation process.
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Define Any Time Constraints and Benchmarks in any substantial project you will want to set
performance measurement standards that you will expect from your vendor. If these are essential
to your business, For example: project completion dates, delivery date for first batch of parts,
start date for the service, lead times, etc.
Assess Potential Liabilities and Risks
what is the potential for something to go wrong? What if unforeseen costs are encountered? Who
will be responsible if government regulations are violated? Whose insurance will cover contract
workers? These are just a few of the more common questions that must be addressed in any
contract.
Confidentiality, non-compete, dispute resolution, changes in requirements
these are other items that could be a potential negotiation stumbling block or deal closer. For
example, if the vendor (or an employee) has the possibility of being exposed to confidential
information, you will want to be sure a confidentiality clause is put into the contract with the
liability assumed by the vendor.
Do the Same for Your Vendor (i.e. walk a Mile in Their Shoes?)
Now that you have completed the contract negotiations planning process for your business,
repeat the same process as if you were the vendor. What area do you think is most important for
them? What risks or liabilities will they want you to assume? Your list won't be perfect, but it
will succeed in putting you into a frame of mind to look at things from their prospect.
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Preparation
Before the actual contract negotiations begin, make sure the following items are reviewed and
confirmed:
Determine If You Will Need Legal Counsel
Negotiating a contract for one year of janitorial services in a small office is vastly different than
negotiating a contract to outsource a fairly large call center. If you feel the least bit
uncomfortable reviewing contract "legalese", do not hesitate to retain a lawyer specializing in
contract negotiations.
On-Site or Teleconference
Agree upon where the negotiation session(s) will take place. If you think you have the upper-
hand by negotiating at the vendor's site, then propose up front that you will travel to them. If the
distance is too far to travel cost effectively, set up a teleconference to accomplish the negotiation
session. Make sure it is a video conference because body language speaks louder than words.
Make Sure the Person Representing the Vendor Has Authority to Negotiate
Before your people travel to the vendor's site or the vendor travels to your site, make sure the
person/people representing the vendor have the authority to negotiate on behalf of the vendor'scompany. It would be a huge waste of time to hear at the end of a long negation session "Well,
let me get back to you after I hear what my boss has to say about this."
Contract Negotiation Mistakes
Ten Mistakes to Avoid In the Contract Negotiation Process
The smallest mistake can kill an otherwise productive contract negotiation process. Avoid these
contract negotiation mistakes so that you and your vendor will come to an agreement that will
benefit both parties.
1. Thinking the Yard is fenced in
Don't assume that only a certain subset of resources or conditions can be negotiated. The sky is
the limit and finding creative and original alternatives that can benefit both parties will result in a
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better negotiated contract. Do not propose ridiculous or insulting alternatives that will destroy
your sincerity and integrity.
2. Failure to Study Your Opponent
Too many people approach contract negotiation process with the "It's all about me!" mentality.
They fail to research the vendor that they will be negotiating with. They dont understand the
vendor's market and what other influences control their environment. The larger the contract, the
more time you should spend on this.
3. Too Aggressive
You need to be certain that your company's interests are at the forefront of your priorities but at
the same time you need to be mindful and sensitive regarding the person representing the vendor.
Going "on the attack" will only succeed in raising his/her defensive mechanisms and
negotiations will turn out to be fruitless.
4. It's All About Price
Of course nobody wants to pay too much for their goods and services, but there is a lot more on
the table than just money. Look for alternatives that are high on your priority list and low on the
vendors. Then you both win.
5. Jumping Too Quick
No matter how low the opening price is, offer lower or ask for something more. If you jump too
quickly at the first offer, the vendor will feel like they made a stupid mistake. You want the
vendor to leave the negotiation table feeling good.
6. Don't Gloat
When you do end up striking a fantastic deal in your favor, don't embarrass the vendor by saying
something that will give you an ego-trip at his/her expense. Not only is this unprofessional, but
the vendor may then look for loop-holes in the contract to regain some money and pride.
7. Terminology Not Defined or Understood
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Don't assume that everyone who will read the contract will understand every technical term or
complicated provision. Insist that every area of the contract that has the possibility of being
misunderstood is clearly defined.
8. Inconsistencies within the Contract
Look for inconsistencies within the contract that can come back to haunt you in some form of
arbitration. If necessary, have a third party review the contract in order to uncover any
inconsistencies.
9. Concern in One Area will be overridden by Another Area
Do not assume that a perceived weakness or apprehension in one area of the contract can be
compensated by strength in another area. Be specific and direct in all areas. Once the contract is
contested in a court of law, all control is removed from your hands.
10. Avoid Redundancies
Stating the same thing twice in different section of the contract will not reinforce their value. In
most instances lawyers and the courts will come up with a reason to differentiate and justify both
areas; usually with an interpretation that neither party anticipated.
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CONCLUSION
The Kumar spinning mills private limited company is the company performs the business
activity of converting cotton into the two type yarn they are cone winding and reeling yarn.
In modern fashion technology, the demand for perfection begins right at the birth of raw
material, permeates trough every single process, till the highly discertaining customer done the
finished garments. It is this demand for perfection that as spurred the growth of an Organization
and its corporate philosophy.
These who can furnish clients with the best quality, competitive price, and excellent customer
services and prompt delivery can only survive in the market. Kumar spinning mills private
limited takes immense pride in perceiving its role as the comprehensive architect of every single
yarn that its produces.
Each company in the group specializes in a specific area, thus enabling us to better meet the
diverse needs of the industry. Our companies are focused on meeting our customers individual
needs. We exist to provide superior customer satisfaction, developing solid, long-term
relationship with our customers.
Though prices of all textile products have been increasing in both the domestic and global
markets, there is normally a time lag between the price increases in raw materials and in finished
goods. CITI would request Commerce Ministry to provide sufficient export incentives to the
value added segments until the overseas markets are able to absorb the increase in their raw
material cost in full. Consolidation of production facilities in these segments for bringing their
efficiency levels at par with the global competitors also needs active support of the Government.