A Case Study of Impact of Changes in the Manufacturing Cycle in Supply Chain Management in Bhel-Hpv Plant, Visakhapatnam

  • G. Venkat Rao Andhra University
  • G. Venkateshwar Rao MBA
Keywords: Manufacturing Cycle Chain; Supply Chain Management; Cost Savings; Time Savings; Financial Performance


The manufacturing process cycle is a critical sub-stage in integrated Supply Chain Management. The savings from manufacturing supply chain of Supply Chain Management will improve the revenue and returns. BHPV in Visakhapatnam, a public sector engineering unit is made a subsidiary in 2008 and merged into BHEL in 2010. The study is formulated to examine the savings in manufacturing hours and cost in four manufacturing cycle changes in the Supply Chain Management process in each year from 2008-09 to 2012-13. Therefore, a total of 20 manufacturing cycles in the supply chain management are collected at two intervals, one before and another after the change is implemented. The evaluation is done in terms of manufacturing cost and hours saved and its impact on financial performance parameters Return on Investment, Return on Assets, Return on sales and Value Added. The analysis shows hypothesis H1 and H2 are true as significant relationship exists for the years under consideration with savings in cost and hours. The Impact of manufacturing process cycle changes on the financial performance in each year is positive except for the year 2009-10. However, the value added is positive and increasing for all the years under consideration. The changes in the manufacutring cycles of supply chain management have contributed to the revenue and time improvement in BHEL-HPV Plant at Visakhapatnam.


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