Last Updated: 2/27/2016 SUPPLY CHAIN INITIATIVES IN INCREASING GROSS CONTRIBUTION Prepared By: UDAYKUMAR PATEL Date of Publication: 05/01/2006 Project Charter TABLE OF CONTENTS PROJECT OVERVIEW:...................................................................................................................................................1 PROJECT SPONSORS/TEAMS:....................................................................................................................................1 PROJECT SCOPE:.............................................................................................................................................................2 IN SCOPE:................................................................................................................................................................ 2 DELIVERABLES PRODUCED:..................................................................................................................................... 2 HIGH LEVEL MILESTONES:...................................................................................................................................... 2 PROJECT APPROVALS:.................................................................................................................................................4 Project Charter Project Overview: The primary objective of the study is to increase the gross contribution margin in the flexible printing and packaging line. The proposed study includes understanding of the gross contribution, elements of variable costs, basic printing technology and packaging technology, Flexible printing and packaging, Blown film plant which produces the raw material for lamination, slitting functions, supply chain which includes logistics - inbound and outbound, production, planning, wastage reduction, Types of Lamination and the procurement of raw materials which includes supplier development program and scout for alternate vendors who has a better lead time, reduced cost without compromising on the quality aspects of the product. The study reveals the areas reeling with the high variable costs in the plant and also the ways to reduce the variable costs which increases the Gross contribution. Project Goals/Objectives: Reduce variable costs in supply chain. increase production rate. reducing costs by using vendor relationship system. Alternate vendor identification and development. Project Sponsors/Teams: Role Name Project Manager: Supervisor Gilbert Rajan Binny Incharge Internee 1 internee 2 Asvini Murali Patrick Project Scope: The scope of this project includes and excludes the following items: In scope: Project Charter 1 02/27/16 Project Charter This internship project increases the Gross contribution in supply chain of the flexible line in the printing and packaging division of ITC ltd - Haridwar plant. This project includes the study of the machine, process flow and product flow and the study of the elements of supply chain and the elements of Gross contribution. Divisions like production planning, production which includes production rate and wastage reduction, logistics includes inbound logistics and outbound logistics and procurement like raw materials procurement, consumable procurement, lead time analysis and cost analysis of the procurement are studied and the opportunities are analyzed in every section and the feasible opportunities are implemented. Every opportunity is viewed in two sides which are cost side and technical side. Deliverables Produced: 1. The increase of gross contribution in supply chain of the flexible line by understanding the various factors affecting the variable costs in the supply chain. 2. Increased production rate by the increase of speed of the present machines. 3. Decreased procurement costs in raw materials. High Level Milestones: High Level Milestones Start of project Estimated Completion Date September 2004 understanding supply chain of the factory understanding costing methods adopted in the factory planning techniques learning and scooper for improvements October 2004 November 2004 November 2004 Production techniques learning scope for improvement in production Procurement process learning vendor identification scope for improvement in procurement logistics study in the factory and outside and scope and final draft report preparation and submission December 2004 December 2004 May 2005 June 2005 June 2005 September 2005 End of project December 2005 Project Charter 2 02/27/16 Project Charter Project Approvals: ITC LTD.______________________________10/20/2013_________________ Project Sponsor Date ______________________________________ ___________________ Date ______________________________________ ___________________ Date Project Charter 3 02/27/16