Track: Production Planning and Management

Abstract

Abstract

This study accentuates the significant reasons for the failure of private businesses to avail the government financing schemes in the developing world productively. By taking the Pakistani industrial sector as the context, this research explores the various impediments that companies encountered, which attenuated their potential to exploit the financial opportunities provided by the government effectively.

A low tariff financing scheme of up to Rs. 5.0 billion laid by Government of Pakistan (GoP), aimed at provision of higher employment coupled with enhanced production to meet foreign & local chucks directing increased FX reserves, was exploited by a large industrial group. The initial plan for the extension of production plant of caustic soda was outsized chaotically adding inhouse power generation plant, to embrace the maximum subsidized funding offered by the GoP. The poor feasibility analysis, evaluation of technical resources, mitigation plans and unprofessional handling ended up losing all advantageous money beside losses. This study also includes the combined effect of delayed realization of SCM tools and COVID19, joined by an incompetent inventory inspection team, resulted losing competitiveness. The study shall be computing time delays, improper financial estimates, COVID-affected shipments, and lack in good Bill of Materials (BOM), eventually distressing SCM. The expansion cost a year besides 70-75% additional cost than estimated. The parameters shall explicate proficiently perceiving the project. The techniques are kept artless to evaluate obtainable data and feasibility to conclude. The study anticipates to provide an insight the lacking capacities and suggestive improvement in SCM from planning to bottom line.

Keywords (12 font)

Supply-chain management, Feasibility Analysis, Delay Analysis, Financial Management and Plant Extension.