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1) Rationale for the selection of the topic

ABC PLC is leading rubber glove manufacturer in Sri Lanka which has 5% global market share. They have differentiated their market as a supplier of natural and synthetic latex based domestic, Industrial and medical gloves. The company has diversified as two business sectors such as plantation sector and hand protection sector. Company has its 17 manufacturing plant within ten factories which are situated at Kottawa, Waliweriya, Hanwalla and Thailand. In my dissertation I have selected hand protection sector which has 1 billion turnovers within the last financial year. Through the manufacturing experience of three decade of time company has achieved. ABC is producing their own brand as well as contract manufacturing for foreign customers. 3M, Ico, Polyco are major customers who are contributing 30% -40% of annual turnover and rest of contribute by over thousands of customer are in foreign and local market. I am working as the purchasing officer of packing material which has huge impact to the final product.The objective of the division is to provide Packing Materials with right quality, quantity and right time to the manufacturing plant. The companys long term objective is to achieve one billion equalant pairs in 2020. In the present manufacturing capacity is 2 million pairs per year. To reach the above objective

company need to solve its prevailing problems and be ready to achieve the target in 2020.

Considering about 2012 financial year, group achieved RS 19786 million as consolidated turnover.According to companys annual report following financial information can highlighted

2008 Gross Turn over Profit Before Tax Profit after tax Total Assets Total Equity and Liabilities Share capital Earnings per share (RS) Market price per share current ratio





11,152,985,000 11,895,985,000 11,823,707,000 14,869,245,000 19,786,485,000











9,598,223,000 10,426,633,000 10,777,283,000 13,268,275,000 18,015,823,000

1,021,749,000 10,426,633,000 10,777,283,000 13,268,275,000 18,015,823,000





















Considering about hand protection sector the factories facing huge problem on increasing WIP due to various reasons such as packing material non availability, color difference, and excess

production. Within those reasons the major one is the non-availability of packing material can be taken. According to my observation within last month 78% WIP was generated without having packing materials on time. Due that Reason Company is having following issues Delay of shipments. Decrease profit margins because of increasing cost of manufacturing. Supplier quality issues because of shorten the required lead time. Lost customer base. Market share will grabbed by competitor. Increase unit prices due to increase of unit cost.

2) Research Questions
1. What is the current process of sourcing PM? 2. What are the factors affecting to delay of PM 3. How to reduce sourcing lead time?

3) Research Objectives
1. To identify the current process of sourcing PM 2. To identify the factors affecting to delay of PM 3. To identify the methods that can reduce sourcing lead time

4) Proposed Research Mythology

4.1. Conceptual frame work

Administrative Lead time Poor quality Supplier Delays

Packing Material Cost of WIP Sourcing Lead time

4.2.Instrument 4.2.1. Data collection methods Primary data collection will be through observation, case studies and structured and unstructured interviews 4.2.2. Sampling Use systematic sampling method & random sampling method. 4.2.3. Data Analysis 4.3.Scope of the research Through this research, researcher will analyze data relevant to the Packing Material to find the solutions to reduce cost of WIP through delivering PM on time to the manufacturing flow by reducing lead time. The scope of the research will be based on the customer orders of selected month to the three factories which are situated in Sri Lanka. In this research findings will be relevant to Cost of WIP without having Packing material in time.

5) Summary of The Report

5.1. Chapter 01: Introduction In this chapter introduce the subject of the research and presents the background of the problem that is being studied in this part Problem Statement Purpose of the study Objectives Significant of the study Methodology Scope of the study Limitations of the study

5.2. Chapter 02: Literature Survey Describe the existing knowledge and identify the gaps 5.3. Chapter 03: Conceptual Framework and Methodology With the help of literature review develop the conceptual frame work to find the answers for the research questions. Formulate the hypothesis to build the clear frame work. And other part will include selecting sample, and data collection 5.4. Chapter 04: Data Analysis and Findings In this chapter will describe the method of data analysis and testing developed hypothesis through actual findings 5.5 Chapter 05: Discussion of Findings In this section present the findings through data analysis. 5.6. Chapter 06: Conclusion and Recommendation

In this section summarize the major findings and conclude the findings by presenting how far the objectives of the study have been achieved. And present the certain recommendations.

6) Action Plan
Activity February Submition of Research Proposal Getting approval to the proposal Data Collection Data analysis Draft report Presentation Final report Submition and Presentation March Aprial Time Frame May June