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CONTENT 1.0 INTRODUCTION 1.1 INTRODUCTION OF BCCL 2.0 EXISTING OPERATION AND SUPPLY CHAIN STRATEGY OF BCCL 2.1 COMPETITIVE POSITIONING OF BCCL 2.2 LOCATION 2.3 PRODUCTION 2.4 MATERIAL MANAGEMENT 2.5 INVENTORY 2.6 DISTRIBUTION 2.7 MODES OF TRANSPORT 2.8 QUALITY 3.0 STRATEGIES FOR IMPROVEMENT AT BCCL 3.1 IMPLEMENTATION OF I.T. IN A WIDER SCOPE (a) I.T. AT PRIMARY PROCESSING IN MINING (I) PRODUCTION SCHEDULING (II) RUN OF MINE (III) INTERPLANT BULK TRANSPORTATION (IV) STOCKPILE BLENDING (b) I.T. AT SECONDARY PROCESSING IN MINING (c) ADVANTAGES OF IT 3.2 TOTAL QUALITY MANAGEMENT 3.3 PRODUCTION MANAGEMENT 3.4 MATERIAL MANAGEMENT (a) JIT/LEAN SUPPLY CHAIN IN BCCL 3.5 SUPPLIER-CUSTOMER RELATIONSHIP 3.6 OTHERS 3.7 INTERRELATED STRATEGY 4.0 CONCLUSION 4.1 REFERENCES AND BIBLIOGRAPHY 4.2 APPENDIX-1 1.0 INTRODUCTION World’s ever largest logistic operation held by US army in Iraq war has proved again that supply chain is the key factor which is crucial for any army or business to succeed at any activity. From suppliers to shelf space, managing an effective supply chain drives the true value of any business. Complex trading communities are being created, and one must come prepared in order to be a key player, customers rule, and customers demand speed. How quickly companies answer the phones, promise delivery, or handle a service call? How quickly do employees discern and react to important events? The renewed focus on core competencies and outsourcing has made supply chain easier to manage from complex one. Traditionally supply chain was outcome of vertical integration where companies like Ford tried to keep control of supply chain by owning or controlling virtually every aspect of business, from the mines to rubber plants. By 1970’s limitation of this approach was seen. And outsourcing was introduced by Japanese to improve the supply chain aspects of company. “Supply chain management is the management of the interconnection of organisations which relates to each other through up stream and downstream linkage between different processes that produce value in the form of products and services to the ultimate customer”. Slack, chambers and Johnston 2001 “Supply chain management” is an important part of operation management to support producing goods and services in terms of efficient flow of material and information within the organisation and network connected with suppliers and final customer. The main objectives of supply chain can be described, as customer satisfaction is key factor for constant demand, which generates revenues for the companies to live Supply chain ensures smooth material flow, quality of product, inventory, purchasing and supplier relationships, which aims to ultimate satisfaction of customers. Supply chain goes with two objectives. It ensures the supply chain of material and information flow. To managing flow of material and information with in the supply chain and Improvements which should be based on supply chain strategies based on corporate strategy of the company. 1.1 INTRODUCTION OF BHARAT COKING COAL LIMITED One would have to only take a look at the length of coal trains around Dhanbad region to realize bulk materials handling is literally big business. The mining supply chain from pit to customer is complex and lengthy. Bharat Coking Coal Limited is widely known as BCCL in coal trade circle, BCCL is a public sector undertaking company that is subsidiary of Coal India Limited, which is wholly owned by government of India. BCCL headquarter is located at Dhanbad, in state of Jharkhand, India. BCCL plays important role in steel industry in India as its produces 50% total prime coking coal as required by integrated steel factories in India. It also supplies substantial quantity of coal to pig iron sector and bulk of the coal requirement of the power stations of North India. It produces approx. 27.5 million tonnes with a gross sale of £3.2 Billion per annum; company’s share capital is £2.8 Billion. BCCL’s profit before tax and dividend was approximately - £ 1 Billion for the year 2001-02. Manpower employed at the company is 110,677 as on 1.12.2001. Company’s prime objective is to supply coking coal to steel sector because it holds 50% production of India. Approx. 32% of the total production of BCCL consists of coking coal. Company owns 87 coalmines, and 10 washeries. Diagram beneath shows organization pattern of BCCL 2.0 EXISTING OPERATION AND SUPPLY CHAIN STRATEGY OF BCCL The flow chart shows the detailed existing supply chain of BCCL consists of all stages of supply flow between company and customers. Every pit keeps coal stocks just near to their production area. And tenders are given to Independent companies to carry this coal to washeries. In washeries coals are washed and turned to low emission coal. SUPPLY CHAIN OF BCCL SUPPLY CHAIN Figure No.2 2.1 BCCL COMPETITIVE POSITIONING Company’s competitive advantages and positioning could be analysed by Porter’s Five Forces (1985). As coal sector has almost none private investment, although this is open for Foreign disinvestments. Its shows there are less rivalry in market between subsidiaries and other private companies. Company produces 55% of coke of India, which provides them a dominant position in this product. The bargaining powers of buyers are less as company and a committee decides how much coal products has to be sold to customers. There is little information of stocks and supply information possessed by customers. BCCL customers like to buy products on time and quality products with low emission that is possible by importing coal from Australia but still they are buying from company because of large volumes. Buyers of coal products are in acceptance end but there are factors, which affect company’s cost ex- if buyers don’t unload coal at their stock BCCL pays for maintenance for waiting time. Since most of the customers are Public sector undertaking companies switching is unlikely but few of them are likely to be disinvested in coming years and they may switch to imports from Australia which guarantees quality and delivery standards. After permission of 100 % foreign investment US major nine coal companies might enter into this market as Australian companies have already started doing exports to India. As US companies have invested few million US $ into new methane coalbedgas projects at Dhanbad. Company still faces threat of substitutes as other subsidiaries have clichéd few deals for coal supply and import of coal has started capturing their market and their market share is increasing. 2.2 LOCATION BCCL is operational activity is widely spread over 200 sq kilometre. BCCL active mining happens at 87 mines. Companies’ main coalmines are located in Jharia coalfield area, which is an industrial city with a population of 286,000. BCCL’s location decisions are strategic and taken by Headquarter Dhandbad, which is barely at distance of 15 km.
Approximate Word count = 4329
Approximate Pages = 17.3
(250 words per page double spaced)
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