LEAD TIME ANALYSIS OF IMPORTED RAWMETERIALS FOR BERGER PAINTS
Nov 23, 2014
LEAD TIME ANALYSIS OF IMPORTED RAWMETERIALS FOR BERGER PAINTS
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AcknowledgmentMy summer training with BERGER PAINTS INDIA LTD. is a lifetime experience that I will
cherish throughout my career. This project has provided me a great opportunity to experience
the work culture and work process of Berger Paints Material Division.
This project can never be prepared by the singular efforts but I also demand the help and
guardianship of some conversant persons who under pin actively or passively in the completion
of a successful project.
I wish to express my sincere gratitude to Mr. D.K.Virmani (Head-Materials Dept Berger
Paints) and Mr. Pradip Bandyopadhyay (Manager H.R. Dept Berger Paints) for giving me
the opportunity to do my summer training at his highly esteemed Organization.
I am also grateful to Mr. Arindam Mukhopadhyay (Assistant Manager, Materials)
valuable guidance, advice, suggestion and constant encouragement rendered to me at every
stage.
I am also thankful to respected Prof. Soumendu Ganguly(internal guide), for giving meinformation and guidance during my training period.
I would like to thank to Prof. Sudipto Mitra (campus head) and faculty members
Lopamudra Bhatacharya and Prof. Mahua Banerjee who were always there for my help
whenever needed.
I am also thankful to all others who helped me directly or indirectly towards the completion of
my project work.
AVISHEK KABIRAJ
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Component Page No
Executive Summary 4-5 Objectives 6 Paint 7-12 Indian Paint Industry 13-18 Company Profile- Berger Paints 19-21 Brand details of Berger Paints 22-25 Major Raw Materials Imported 26-35 Time Scheduling 36-37 Research Methodology. 38-47 Findings and Analysis :-
Inbound logistics Lead time analysis- Port to Port. (Sea
transport).
Custom clearance and its lead time analysis.
Warehousing Details and Charges.
Inbound logistics Lead time analysis- Port to Plant.
(Road transport).
Total time analysis.
48-67
68-74
75-79
80-85
86-88 Recommendations. 89-92 Conclusion. 93
References. 94
Annexure 95-96
Table of Contents
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EXECUTIVE SUMMARY
The length of the performance cycle is a major difference between domestic and global operations. Instead of 1 to 5 days transit time and 2 to 10 days total performance cycles, global operation cycles often require weeks or months. The reasons leading to longer order cycle to delivery cycle are communication delays, special packaging requirements, ocean freight scheduling, slow transit time, customs clearance and etc. In this project the various delays caused while importing the raw materials for Berger Paints has been depicted and how the delay time can be reduced to minimum has been proposed.
The main aim of this project is to analyze the total lead time for importing raw materials for Berger Paints from 17 different countries to its 7 different plants. And also to project the delays caused during its transportation and how it can be reduced to minimum.
To meet the research objectives, following activities have been performed.
1. An extensive search of relevant literature from news articles, internet, books. This step
guided the development of the methods and instruments for collecting data.
2. Survey has been carried out by face to face interviews with different agencies.
3. The Survey was included both by quantitative, forced-choice or close ended questions,
qualitative and open-ended questions. Analysis was done on the basis of the information
gathered at the time of interview.
INTRODUCTION
AIM AND OBJECTIVES:
METHODOLOGY:
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In this project the total importation of raw materials for Berger Paints has been depicted into four different sub structures:
Inbound logistics Lead time analysis- Port to Port. (Sea transport).
Custom clearance and its lead time analysis.
Warehousing Details and Charges.
Inbound logistics Lead time analysis- Port to Plant. (Road Transport).
And the lead time has been projected along with the various delays which increases it.
Then a total Time Analysis is done considering all the above four processes and recommendation is given how the total delay can be reduced and the whole process can be more smoothly handled and efficiency can be increased while having cost effectiveness.
FINDING AND RECOMMENDATION:
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OBJECTIVES“Knowing is not enough; we must apply.
Willing is not enough; we must do.”- Johann Wolfgang.
Inbound logistics Lead time analysis (Port to Port):- Here we try to analyze time
taken for importing raw materials of paints for Berger Paints from Source Countries
to 3 different ports (Kolkata Port, Chennai Port, and Mumbai Port) of India.
Inbound logistics Lead time analysis (Port to Plant): - Here we try to analyze time
taken for road transportation of the raw materials from the three different Ports
(Kolkata Port, Chennai Port, Mumbai Port ) to the seven different Plants of Berger
Paints.
Identify the following:-
Custom clearance analysis and its delays.
Warehousing Details and Charges.
PRIMARY OBJECTIVE:-
SECONDARY OBJECTIVE:-
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PAINT
Paint is any liquid, liquefiable, or mastic composition which after application to a substrate in a thin layer is converted to an opaque solid film.
Paint is a pigmented material which when applied to a surface forms a solid opaque coating under normal conditions of atmospheric temperature or elevated temperature. It can be used as a protective coating or decorative coating.
Paints are used mainly for four reasons:
To protect the surface.To decorate the surface.To hide the surface.Aesthetics & Identity
Paint is composed of pigments, solvents, resins, and various additives. The pigments give the paint color; solvents make it easier to apply; binder help it dry and bind the paint; and additives serve as everything from fillers to ant fungicidal agents. Proper paint formulation requires suitable selection of solvents, pigments, binders and some additives.
The important features required for each of these components will be discussed below.
Pigment Binder Solvent Additives
COMPONENTS OF PAINT
DEFINITION:
PURPOSE OF PAINT:
COMPOSITION OF PAINTS:
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The important features required for each of these components will be discussed below.
By pigments we mean the insoluble solid substances, supplied in fine particles sizes which give the dried paint film its desired color and other optical properties and also to confer increased hardness, durability and protective properties. Pigments have also been found to affect the consistency and the application properties of the paints consistency and the application properties of the paints considerably.
Factors influencing the properties of pigments:
Color : Clean, bright and intense, reproducible hues are most important for all pigments. The basic hues of the pigment have been found to be determined by its chemical composition, whereas modification of brightness, cleanliness and intensity are affected by the refractive index differences.
Crystal habit and crystal modification : crystal defects and ,modification of crystal lattice patterns influence pigment characteristics. Where multiple lattice structure exists for a given pigments, controls must be exercised during formation to obtain the proper crystal habit and thereby to prevent incorrect hue and other unwanted pigment properties.
Particles size: hiding power of a pigment depends primarily upon the ability of the dispersed particles to scatter light. Tinting strength is also related to the particle size and approaches a maximum at similar values for some inorganic pigments and at low particle sizes for carbon blacks.
Particle shape: the shape of pigment particles has also been shown to influence paint properties, especially with respect to flow and settling, and in some instances paint film durability. Pigments particles generally exist in three different shapes, namely nodular, acicular and laminar. In the nodular form, particles are more or less spherical. In the acicular shape, the particles are needle like. They have been assumed to have an advantages effect on the mechanical properties of films due to their reinforcing effect. Laminar shaped pigments are also known as flake, leaf or scale pigments.
PIGMENT:
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Surface area : knowledge of surface area of pigments particles is essential, it varies with the type of the pigments and the methods used for their preparation. In order to achieve satisfactory performance properties of the films surface must be wetted properly by a vehicle to achieve complete dispersion.
Oil Absorption : it is defined as the amount of oil in gms. required by 100 in gms. of pigment to form a pasty mass. The rate of oil absorption varies from pigment to pigment depending on their particle size and surface nature. This information is important while formulating paint.
Bulking Value : Bulking value of a pigment is defined as the number of liters occupied by 100 kilogram of pigment. This gives idea about the volume occupied by a given weight of pigment.
Corrosion inhibiting properties : some pigments are used in corrosion inhibiting primers because they produce such conditions, which would prevent or retard corrosion. Some pigments, produce an alkaline condition, which retards the conditions for corrosion. They would also neutralize the acids of the medium and other acids which cause the corrosion. Sometimes soaps have water repellent properties and therefore would decrease the absorption of water by the coating and thereby retarding the condition for corrosion .Certain pigments have a passivating action by providing ions which react with metal and reduce its tendency to corrode.
.
Binder, which is also called Vehicle or medium for paints, is the firm forming material; which binds the pigments and keeps them in suspension in a film. These clear media are of considerable importance, since they control to a great extent many of the fundamental properties of the coating. Te ease and manner of application ; speed of dying under various conditions and properties like protection against corrosion and resistance to different chemicals are all largely dependent on the other type of medium used.
BINDER OR VEHICLE:
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It might be assumed that because the solvents paint is ultimately lost through evaporation, their importance is small relative to that of the other ingredients. In practice, considerable knowledge of the properties of the volatile ingredients of paints is essential in order to formulate the wide variety of finishes.
Besides the three main categories of ingredients, paint can have a wide variety of miscellaneous additives, which are usually added in very small amounts(1 - 4 gm in 100 gm of paint) and yet give a very significant effect on the product. Some examples include additives to modify surface tension, improve flow properties, improve the finished appearance, increase wet edge, improve pigment stability, impart antifreeze properties, control foaming, control skinning, etc. Other types of additives include catalysts, thickeners, stabilizers, emulsifiers, texturizers, adhesion promoters, UV stabilizers, flatteners (de-glossing agents), biocides to fight bacterial growth, and the like.They are available in all stages of paint making -
Processing : Wetting, Dispersing agents
Application : Thixotropic Additives (for making thick structure prevents sagging)
Storage : Anti- skinning agents
Performance : Biocides
SOLVENT:
ADDITIVES: -
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FLOW SHEET SHOWING THE PRINCIPLES OF PAINT MAKING
PIGMENT
MEDIUM OR VARNISH
SOLVENT ADDITIVES
GRINDING
EQUIPMENT
MIXER STAINER
DRYERS
FILLING
DESPATCH
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Painting Surface
Factors of good PaintsFactorsEXTERNALAlgal resistanceRain ProtectionUV\Sun light resistanceDirt pick up resistanceSalinityTemperature variationINTERNALWashabilityStain resistanceFungus resistance
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THE INDIAN PAINT INDUSTRY
The size of the paints market in India is estimated at Rs 110 bn, with the contribution of the organized and unorganized segments in the ratio of 65:35.
.
The paint market is expected to grow at 8 to 10 % p.a over the next few years. The growth could be higher if industrial activity picks up as the industrial paint segment is gaining more importance .
Paints can be broadly classified as decorative and industrial on the basis of the end use.
The Indian market is dominated by the decorative segment which comprises almost 70% of consumption as compared to developed countries where the industrial segment is more dominant. The ratio is India is also likely to shift more towards industrial segment, especially with growth in the auto and white goods industry.
Over the last five years the excise rates have come down drastically from 40% to 18% resulting in erosion of the unorganized sector’s share.
The paint industry is characterized by low fixed assets intensity but high working capital intensity. The main investments are in brand building and distribution infrastructure.
New trends are emerging in technology and marketing. Introduction of TINTING MACHINE at the dealer / retailer level will bring down working capital costs. Also new technology is being used for increasing the utility and lifespan of paints.
Indian industry will have to keep pace with global technological changes to maintain their competitiveness. Already a few alliances have been entered into and the number is likely to increase in the future.
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The outlook for the industry is positive especially given the good prospect for automotive and white goods industry. Moreover, housing is expected to grow rapidly on the back of rising incomes and government incentives. The supply situation remains a cause for concern and will keep prices under check. The key to success will be innovative marketing.
INDIAN PAINT INDUSTRY
DECORATIVE PAINT IN-DUSTRYINDUSTRIAL PAINT IN-DUSTRY
NOTE: DECORATIVE PAINT INDUSTRY (70%).
INDUSTRIAL PAINT INDUSTRY (30%).
The decorative segment dominates the market in India with a 70 % share with the rest accounted for by industrial paints. This as compared to the developed countries where the share is the reverse with the industrial segment being the major one .With increased industrialization , the ratio in India is also likely to change in the favor of industrials and both segments are likely to be equal partners by the end of five year
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THE PAINT MARKET SEGMENTATION:
Decorative or architectural paints
Decorative or architectural paints cover mainly the housing sector.
Decorative or architectural paints can be differentiated into
Premium segments: - (40%) Premium decorative paints are acrylic emulsions used mostly in the metropolitan cities.
Medium segments: - (40%) The medium range consists of enamels, popular in smaller cities and towns.
Distemper segments :-( 20%) Distempers are economy products demanded in the suburban and rural markets.
Decorative paint segment : ON PRODUCT LINE
Premium segment: Metropolitan citiesMedium segment: Smaller cities & townsDistemper segment: Suburban & Rural market
NOTE: Decorative paints sold in India covers 40% Premium segment, 40% Medium segment and 20% of all are Distempers segment and it is here that the unorganized sector has dominance.
ON PRODUCT LINES:
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Industrial paints
Industrial paints cover mainly the automotive segment.
Industrial paints can be differentiated into:
Automotive Paints - 50%
High Performance Coating - 30%.
Powder Coating - 10% Coil Coating - 5%
Marine Paints - 5%
Industrial paint segment: ON PRODUCT LINE
Automotive Paints High Performance Coating Powder Coating Coil Coating Marine Paints
NOTE: Industrial paints sold in India covers 50% Automotive paints , 30% High performance coating paints ,10%Powder coating paints, 5%Coil coating paints , 5% Marine coating paints.
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Decorative or architectural paints:
Decorative paints can be differentiated into:
Decorative Paints Segment Market Size In Rs (Million)
Enamel 8600
Wall finishes 4730
Primers 2150
Wood finishes 430
Total 15910
Enamel Wall finishes Primers Wood finishes0
1000
2000
3000
4000
5000
6000
7000
8000
9000
8600
4700
2150
430
Market size in Rs (million)
ON MARKET SEGMENTATION:
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Industrial paints:
Industrial paints can be differentiated into:
Industrial Paints Segment Market Size In Rs(Million)
Auto 4386
CRP 1075
Powder 860
Coil 94.6
Others 731
Total 7147
Auto CRP Powder Coil Others0
500
1000
1500
2000
2500
3000
3500
4000
4500
4386
1075860
94.6
731
Market size in Rs (million)
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COMPANY PROFILE
Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger, who through his marvelous shades, had offered people a chance to transform their homes through the power of imagination. At Berger it is believed in taking paints to the level of fine art. Enriched by the imagination of Lewis Berger since 1760.
Berger Paints India has reported a sales turnover of Rs. 491.87 crore and a net profit of Rs. 37.02 crore for the quarter ended Jun 2010.
For the quarter ended Jun 2009 the sales turnover was Rs. 372.63 crore and net profit was Rs. 28.38 crore.
Berger Paints India Limited (the Company) is ranked no. two in terms of volume and no. three
in terms of value in Indian paints industry. The Company has a 19% market share in the
decorative segment which accounts for a bulk of its volumes. Berger paints enjoys good
brand equity in lower priced paints and has market domination in the east. The Company’s
production facilities are situated all across India; enabling it to cater to all the major regions.
The Company is a part of the UK Paints group, India.
1923 - The Company was incorporated on 17th December, in West Bengal. The
Company manufacture and sell paints, varnishes, dry colours,enamels,pastes, distemper,
ships paints, boiler components and various other kinds of paints to meet the
INTRODUCTION:
COMPANY BACKGROUND:
COMPANY HISTORY:
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requirements of trade, commerce and industry. Some of the brands manufactured are
Castle, Parrot, Duroglaze, Luxol, Murisan, Synthetic, Soligum, Apexior, etc.
1975 - The Protection Paints division was launched to specialize in heavy duty paints
required to with standex acting conditions of high chemical and atmospheric corrosion in
chemical process industries and other allied industires and installations.
1986 - The Company concluded a technology agreement with Vaspa Corporation of
U.S.A. for manufacture of highly anti-corrosive coatings.
1995 - The Company proposed to set up a new factory at Pondicherry with an installed
capacity of 18,000 tpa of paints, enamels and varnishes and 6,000 tpa of synthetic resins.
It was also proposed to augment the
existing powder manufacturing capacities at theplant in Howrah.
2001 - Berger Paints India Ltd. has unveiled a new brand promotion strategy which it
claims to be the first of its kind in the industry.
- Despite a slight increase in sales, the net profit of Berge Paints India Ltd has dropped
by around 10 per cent for the half-year ended September 30, 2001.
- Berger Paints Ltd and ICI Ltd, have formed a 50:50 joint venture to manufacture auto
and industrial coatings at Rishra in West Bengal.
2006 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with
Nippon Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for
manufacture and sale of coatings for plastic substrates used in automobiles and parts
thereof in India.
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2007 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with
Nippon Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for
manufacture and sale of coatings for plastic substrates used in automobiles and parts
thereof in India.
2008 - Berger Paints India Ltd has informed that Mr. Gerald Kenneth Adams has been
appointed as a Director of the Company effective January 30, 2008.
2009 - Berger Paints India Ltd has informed that Mr. Pulak Prasad was appointed an
Additional Director (non-whole time) of the Company under Section 260 of the
Companies Act, 1956.
2010-Even as it considers an acquisition proposal, Berger Paints India (BPIL) is rapidly
completing a slew of greenfield and brownfield projects which will double its capacity
by 2015, besides enabling it to set up its biggest capacity within two years. It is also
planning to revive the proposal to set up an automotive paint unit at Jejuri near Pune in
Maharashtra.
PONDA (GOA)
JAMMU(J&K)
VALLAB VIDYA NAGAR ( GUJRAT)
DEVLA (U.P.)
PONDICHERRY
HOWRAH (West Bengal)
RISHRA (WEST BENGAL)
BERGER PAINTS FACTORIES:
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THE MAJOR BRAND DETAIL OF BERGER PAINTSBerger color bank offers an excellent range of products that appeal to the discerning householder as well as the budget conscious individual keen on stretching the rupee. The range of products available are mentioned below. The products are available in 1 liter , 4 liter, 10 liter and 20 liter containers.
SOME OF THE WELL KNOWN BRANDS OF BERGER PAINTS:
NAME DESCRIPTION COVERAGE
LUXOL SILK SPLENDOR Premium silk with excellent richness and high durability. Has a sheen finish.
20-28 m^2/ltr/coat
Rangoli fashion finish Rich acrylic emulsion with a matt finish 24-26m^2/ltr/coat
Luxol gold luster finish Premium quality semi glossy synthetic enamel for kitchens, toilet and hotels.
12-14m^2/ltr/coat
Bison super distemper Premium quality acrylic distemper with matt finish
12-14m^2/ltr/coat
NAME DESCRIPTION COVERAGE
Luxol gold enamel Super premium , durable , glossy synthetic enamel for furniture grills, windows etc.
18-22m^2/ltr/coat
INTERIOR FINISHES FOR WALLS
INTERIOR FINISHES FOR METAL SURFACES
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Luxol gold luster finish Premium quality semi glossy synthetic enamel for windows , grills, etc
12-14m^2/ltr/coat
NAME DESCRIPTION COVERAGE
Wood keeper melamine finish
A unique two pack for cold catalyzed wood coating system .
9.5-15.5 m^2/ltr/coat
Woodkeeper clear finish A polyurethane enriched clear wood finish specially for hard working wooden surfaces.
9.5-15.5m^2/ltr/coat.
NAME DESCRIPTION COVERAGE
Weather coat classic smooth
100% acrylic, tough paint 13-15m^2/ltr/coat
Weather coat classic texture
Tough exterior paint with textured surface
7-9m^2/ltr/coat
Walmasta classic Economy acrylic emulsion 10-11m^2/ltr/coat
NAME DESCRIPTION COVERAGE
Luxol gold enamel Super premium , durable glossy synthetic enamel for windows,grills etc.
18-22m^2/ltr/coat
INTERIOR FINISH FOR WOOD SURFACES
EXTERIOR FINISHES FOR WALLS
EXTERIOR FINISHES FOR METAL SURFACES
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Luxol gold lusture Premium quality , semi glossy synthetic enamel for kitchens ,hotels balcony , staircases ,etc .
12-14m^2/ltr/coat
NAME DESCRIPTION COVERAGE
Color bank all purpose primer
Available in both water and solvent thin able versions. Surely the best primer available for any surface walls or wood.
8 to 9 m^2/ltr/coat
MAJOR RAW METERIALS IMPORTED
EXTERIOR FINISHES FOR METAL SURFACES
PRIMERS AT A GLANCE
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The paint industry is raw material-intensive, in terms of value and quantity of raw materials used. Raw material costs account for around 70% of total production costs. Imports constitute around 30% of the raw material requirements.
70%
30%
70% of total Production Cost is of Raw Ma-terial Cost
RAW MATERIAL SCENARIO:
IMPORTED RAW METERIALS AND COUNTRIES FROM:
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BELGIUM:
METERIAL COUNTRY FROM
1.MATT HARDNER CHINA(PORT ZHANJIANG)THROUGH MALAYSIA
2.CMC BONDWELL CHINA (PORT XIAMEN)THROUGH MALAYSIA
3.TITANIUM DIOXIDE ANATASE CHINA (PORT SHANGAII)
4. ADDITOL(P964),SYNTHACRYL-700
CHINA(ZHANJIANG)THROUGH MALAYSIA
5.MODIFIED PHENOLIC RESIN CHINA(HONGKONG)
6.IRON OXIDE RED,IRON OXIDE ORANGE
CHINA( PORT ZHANJIANG)THROUGH MALAYSIA
7.CALCINED KAOLIN CHINA(INNER MOGOLIA CLOSET- PORT TIANJIN)
8.C9PETROLEUM RFESIN N100
CHINA(ZHANJIANG)THROUGH MALAYSIA
CHINA:
METERIAL COUNTRY FROM
SYIA195NX795 BELGIUM(PORT ANTWERPEN)
NATROSOL 250HHBR BELGIUM ( PORT ANTWERPEN)
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GERMANY: -
METERIAL COUNTRY FROM
PENTAERYTHRITOL GERMANY (PORT BREMERHAVEN)
ALPASTE SRAPA ,
METALLIC R-274,
STD AL POWDER,
AL PASTE
GERMANY (PORT BREMERHAVEN)
VESTANAT T 1890L, POLYOIL
GERMANY (PORT HAMBURG)
CARBON BLACK ,
PRINTEX,
LAMPBLACK101BEADS.
GERMANY (PORT KIEL)
TITANIUM DIOXIDE RUTILE KRONOS GERMANY (PORT KIEL)
BAYSILONE PAINT ADDITIVE,
SOLIGEN STABILIZER
GERMANY(PORT BREMEN)
TEGO PHOBE 1401,ADHESION RESIN
GERMANY (PORT BREMERHAVEN)
BLANC FIXE SUPER "F" GERMANY (PORT KIEL)
ALUBRIGHT 3900‘GERMANY (PORT BREMERHAVEN)
SILRES BS-1360 GERMANY (PORT BREMERHAVEN)
TYLOSE HS 10000 GERMANY (PORT HAMBURG)
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JAPAN:-
METERIALS COUNTRY FROM
DURANATE 22A75PX,
DURANATE TPA 90SB,
ALUMINIUM PASTE 970519,
ALUMINIUM 7130N,
ALUMINIUM PASTE 7640NS
JAPAN(OSAKA)
TITANIUM DIOXIDE RUTILE CR50 JAPAN(OSAKA)
HEXA HYDRO PHTHALIC ANHYDRIDE JAPAN (TOKYO)
METHYL ETHYL KETOXIME JAPAN(OSAKA)
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JORDAN:-
NITHERLANDS: -
SINGAPORE:-
METERIAL COUNTRY FROM
METERIAL
COUNTRY FROM
CALCIUM CARBONATE JCFS JORDAN(AMMAN)
METERIAL COUNTRY FROM
URALAC P4055,
URALACP5127,
URALACP4140,
URALACP5201
NETHERLANDS (AMSTERDAM)
SETALLUX NETHERLANDS (PORT MOERDIJK)
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TEXANOL SINGAPORE
SICOTRANS REDL-3035,
SICOTRANS YELLOW
1916,REDL- 2817
SINGAPORE
METHYL METHACRYLATE SINGAPORE
SURFYNOL 104 SINGAPORE
ACRYSOL RM 825 SINGAPORE
ROPLEX HG-706SINGAPORE
SOUTH KOREA:-
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TIWAN:-
SPAIN:-
SWEDEN:-
METERIAL COUNTRY FROM
HIQUE332 SOUTH KOREA (YEOSU)
METERIAL
COUNTRY FROM
PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)
METERIAL COUNTRY FROM
METHYL ISO BUTYL KETONE SPAIN (BARCELONA)
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THILAND:-
TIWAN:-
METERIAL COUNTRY FROM
PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)
U.A.E.(SHARJAH):-
METERIAL
COUNTRY FROM
METERIAL COUNTRY FROM
BERMOCOLL EHM-200 SWEDEN(LYSEKIL)
TRIMETHYLOLPROPANE SWEDEN(LYSEKIL)
METERIAL COUNTRY FROM
CRYLCOAT-2441 THILAND (BANGKOK)
EPOXY RESIN EPOTECYD 127,
EPOXY RESIN PROTECYD901X75,
EPOXY RESIN EPOTE YD 903
THILAND (BANGKOK)
CRYLCOAT-1510 THAILAND (BANGKOK)
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EPOXY RESIN UAE(SHARJAH)
ZINC DUST STANDARD-7 UAE(SHARJAH)
UNITED KINGDOM :-
METERIALS COUNTRY FROM
BENTONE-27,
MPA 60,
BENTONE38,
BENTON"EW",
BENTONESD-2,
RHEOLATE-278,
BENTONE SD-3
UK(LONDON)
USA: -
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METERIAL COUNTRY FROM
RUTILE TI PURE USA(PORT WILMINGTON)
TIXOGEL-MP USA( PORT SAN FRANCISCO)
CUMARR-29 USA(PORT PITTSBURGH)
TROYKYD D-666 USA(NEW JERSY) NEAREST PORT NYK
VIETNAM:-
TIME SHEDULING
TOTAL TIME ALLOTED: 8 WEEKS ( 2 MONTHS)
METERIAL COUNTRY FROM
GUM ROSIN "WW" GRADE VIETNAM(HO CHI MINH CITY)
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STAGES ACTIVITIES NUMBER OF DAYS
PLANNED
NUMBER OF
DAYS ACTUAL
WORK
STAGE1 Knowing the Paint industry,
Company profile & selecting the
Project title from Berger Paints .
7 DAYS 5 DAYS
STAGE 2 Gathering information on Raw
materials imported from different
Countries and Plant locations of
Berger Paints.
4 DAYS 5 DAYS
STAGE 3 Visiting Shipping Agents for
information on Inbound Logistics
Lead Time Analysis For Port to Port
Importation.
14 DAYS 16 DAYS
STAGE 4 Visiting Custom Clearance officer
for information on Custom Clearance
of Imported goods.
8 DAYS 5 DAYS
STAGE 5 Visiting Ware Housing Companies
for Warehousing details and
Charges.
10 DAYS 11 DAYS
STAGE 6 Visiting Road Transport Agents for
information on inbound logistics
Lead Time Analysis for Port to Plant
Importation.
10 DAYS 14 DAYS
STAGE 7 Preparing the Project Report 7 DAYS 10 DAYS
TIME SHEDULING GRAPH
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STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 70
2
4
6
8
10
12
14
16
18
7
4
14
8
10 10
7
5 5
16
5
11
14
10
NO. OF DAYS PLANNED NO. OF DAYS ACTUAL WORKED
RESEARCH METHODOLOGY
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“Systematized effort to gain new knowledge”.
-Redman and Mory.
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.
Research is a systematic and organized effort to investigate specific problem or problems encountered by an organization that needs a solution. A research can also be carried out to gather knowledge that can be later used in an organization or some other institutions to solve problems.
Type of Research:-
Applied Research- This type of research is carried out to solve a problem faced by an organization. The intention of applying the findings of the research is to solve specific problems faced by the organization.
Basic Research – This type of research is carried out to generate knowledge by trying to comprehend how certain problems that occur in an organization can be solved. The findings of this research can be later used by organization to solve certain problems. The findings of this type of research contribute to building of knowledge in various functional areas of business.
RESEARCH MODEL:-
DEFINITION:-
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In this research paper we have done a Basic Research to find out the Lead Time
Analysis of Imported Raw Materials from Port to Plant for Berger Paints India Pvt
Ltd. We hope the findings of our research will help the company’s Materials
Department to analyze better, the total time taken for importation of raw materials and
how it can be reduced by avoiding the delay time. And it will also give a clear
projection on the warehouse charges offered by different companies for storing the raw
materials.
A problem is any situation where a gap exists between the actual and the desired ideal states.
Here the objective is to show “How the Lead Time of Importation is calculated and how it can be reduced to minimum”. This study is carried in the backdrop of Berger Paints India Pvt. Ltd. This reveals the overview of the total time taken by the raw materials to reaches the destined plant by avoiding unnecessary delays. Hence finding answers to some of the most interesting questions.
1. How lead time for importation of raw materials can be more accurately
calculated so that the production is not hampered?
2. How delay time can be reduced to minimum?
3. What are the warehouse charges and how they are calculated?
The report has been prepared on the basis of information collected from different
sources. In order to achieve the objective of the project proper research method was applied.
After giving thorough brain storming session, objectives were selected and the set on the base of
these objectives, information was gathered giving major emphasis on new ideas or insight so as
to determine and bind out solution to the problems.
DEFINITION OF THE RESEARCH PROBLEM:-
RESEARCH FRAMEWORK:-
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Purpose of the Study:
Studies may be either:
1. Exploratory study.
2. Descriptive study.
3. Causal study.
These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.
Exploratory study - This type of study is undertaken when much is not known about the situation at hand or very less or no information is available on how similar problems have been solved in the past.
This research has the goal of formulating problems more precisely, clarifying concepts, and gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.
Descriptive study - This type of study is undertaken in order to ascertain and describe the characteristic of the variables of interest in a situations.
Causal research: - seeks to find cause and affect relationships between variables. It
accomplishes this goal through laboratory and field experiments.
The very purpose of our study of Lead Time Analysis of Imported Raw Materials is to have a Descriptive study on various steps involve in transportation of raw materials from the source port to the destined plant.
RESEARCH DESIGN:
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In this project I had to survey the various location of Kolkata. In my survey primarily I had to find out the shipping agents who performs importation of goods from various countries of the world. And various road transportation agents who transports goods in trucks, trailers, tankers in various parts of the country.
Secondarily I had to survey the custom clearance department to find out the custom clearance details and what are the various formalities and paper work one has to show for getting a clearance from the customs department. And the warehousing agents for the warehousing charges and in what basis they are charged by various agents, for storing the raw materials after they are cleared by the customs department.
For these objectives the research methodology that I followed:
Defining the objective
Scope of the study
Limitation of the study
Develop the research plan
Identify data types and sources
Research approaches
Research Instruments
Determine sample plan and size
Contact methods
Collect the data
Collect the information
Analyzing and interpretation of the data
RESEARCH PROCESS:-
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Objectives of the study:-
Inbound logistics Lead time analysis (Port to Port).
Inbound logistics Lead time analysis (Port to Plant).
Custom clearance analysis
Warehousing Details and Charges.
Scope of the study:-
To know the time taken for importing the raw materials from 17 different countries all around the world through sea route.
To know the custom clearance details and what are the various formalities and paper works required for clearance.
To know the warehousing charges and in what basis they are charged by various warehousing agents in Kolkata.
To know the time taken for transporting the imported raw materials from 3 different ports to 7 production plant of Berger Paints in India.
Limitations of the study:-
Time limit restricts detailed research work for this particular topic.
Warehousing charge details are restricted to warehouses of Kolkata only.
Most of the officials have lack of time so they don’t communicate properly.
Due to steep competition between the shipping agents, between warehousing agents and between transportation agents they aren’t willing to disclose information regarding charges.
The research regarding the warehouse charges are geographically restricted to Kolkata only. Hence the result cannot be extrapolated to other places.
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Research plan:-
Time span – 20.05.2010 to 25.07.2010
Total 8 weeks and 5 days of working.
Actual field working-
1. To identify various shipping agents, warehousing agents and transportation agents.
2. To meet officials of the above mention agents and the custom clearance officials directly in their office as their availability.
3. To meet truck drivers personally for information regarding
normal delay time.
Introduction and gathered product knowledge – 6 days
Data collection time – 5 weeks & 5 days.
Analysis of the data -1 week.
Final Preparation of project – 1 week.
Data types and sources:-
For this project both primary and secondary data were the most valuable source of information.
Primary data:
Primary data are data freshly gathered for a specific purpose. In my project the source of primary data is Interviewing Method.
Secondary Data :
Secondary data are those which are previously may have been collected for other
purposes but that can be used in the immediate study. The secondary data was the
P a g e | 43
most important source for my project to find out the raw materials importation
details. In my project the secondary data are collected from: –
List of raw materials imported from 17 different countries and
their addresses given from the company.
Internet.
Newspaper.
Magazines.
Company web site.
Secondary data has the advantage of saving time and reducing data gathering costs. The
disadvantages are that the data may not fit the problem perfectly and that the accuracy may be
more difficult to verify for secondary data than for primary data.
Research approaches:
From the two data source which I have mentioned above secondary data are the easiest
way to gather and the cost of collecting this data is very low and easily available from
the respective association.
After collecting the secondary data or information from the secondary sources then I
started collecting primary data from the agencies to narrow down my research. There are
basically five ways to collect data:-
Survey Research: - This method was one of the most appropriate way to
collect data. The research approach is a widely used method for data
collection and best suited for descriptive type of research.
This approach I have used while surveying the warehouse charges of
different warehouse agencies.
Observational Research: - This method was widely used by me in my
project, because this survey has provided me the details of time taken in
importing the raw materials from different countries as this could only be
found out by observing the time taken by the ships to travel from the source
countries to the 3 destination ports of India provided to me by the different
shipping agencies. And also through observation research I could judge the
P a g e | 44
time taken by the road transport to reach the destination plant from the
warehouses provided to me by different road transportation agents.
Focus-group Research: - This method was also used by me in my project
because for getting the warehouse charges I had to filter other warehouse
agencies and focus on the groups who can provide me the minimum area
coverage of 5000 sq. feet for storing the raw materials for Berger Paints.
Behavioral data:-This method was also not used by me in my research.
Research instrument: - There is various way of research instrument of collecting
primary data, the various methods are:-
Questionnaires.
Psychological tools.
Mechanical Devices
Qualitative Measures.
Here psychological tool was used as the research instrument.
Sampling Plans:-After deciding the research approach and instruments, now I had to
decide on the sampling plan which was one of the important task, because from the
bunch of people I had to select only those people(agents), whom I can target from now
onward .There are three way of sorting the data.
Sampling Unit: - who is to be surveyed? And now my task was to define the
target population, which will be sampled from the number of people.
In this project my target population was only various types of agents:
1. Shipping agents
2. Warehousing agents
3. Road transportation agents
4. Custom clearance officials.
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Sample Size: -
Unit Numbers
Shipping agents(of Kolkata) 4
Warehousing agents 4
Road transportation agents 4
Custom clearance official 1
Sampling Area:- Sample collected from the different parts of Kolkata and suburb as
follows –
Khidirpur
Alipore for Ware housing agents.
Ballygunge
Hazra
Khidirpur. for Shipping agents.
Burrabazar
Hazra
Rishra for Road transport agents.
Dunlop
Hazra for Custom Clearance agent.
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Contact methods: - After identified the exact location of agents through internet my task was how to contact them, and for me there was only two ways of contacting them.
Primary:
Personal Interview: - this method was the most appropriate way of survey, because by personal interview I came to know the exact time taken and charges of the warehouses of their individual Company.
Secondary:
Telephone: - This method is also used by me because the agents had no time for me and there was no other option to meet them so through telephone I got to fix an appointment to meet them and explain them my requirements or sometimes collected information from them over phone.e-Mail:- This method is also used by me because the shipping agents of MUMBAI and CHENNAI could only be contacted and approached about my requirement through mails for gathering information.
P a g e | 47
FINDING: Inbound logistics Lead time – Port to Port.
Here lead time means total time which is considered approximately for the raw materials to reach from source port to destination port via sea ways .
While calculating the lead time some points are taken into consideration:
1. Availability of proper shipment: This means availability of ships of proper size and proper cargo containers so that the raw materials can reach the destination in the exact form as required.
2. Availability of proper labor :This means availability of properManpower to load (while in source port) and unload (while in destination port) the raw materials.
3. Availability of proper connecting ships: If proper connecting ships between source port and destination port are unavailable then it might cause a delay.
4. Transshipment: is the shipment of goods or container to an intermediate destination, and then from there to the source destination this is done because of transloading.
5. Delay in delivery :Delay in delivery can happen due to many reasons:
Delay due to natural calamities like storms, tsunamis , hurricanes, etc.Perils, dangers and accidents of the sea or navigable water.An act of war or fighting between armed forces.Civil war, riots, subversion and civil commotions.Detention, arrest, restraint or any interference made against the ship by the ruler of any State or territory, or under provisions of law, provided that it is not caused by fault or neglect of the carrier.Quarantine (spread of something considered dangerous )restrictions.Strikes, lockouts, stoppage or intentional slowdown at any port which obstruct the loading and discharge of goods, or berthing or unberthing.Act of piracy.
LEAD TIME:
D1
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Latent defects of the ship not visible or discoverable by inspection with care and skill which can normally and properly be expected of a person engaged in an occupation of inspector of ships.Error in navigation arising from the fault of the pilot in the discharging of his duties or from the pilot's instruction.
Analysis :Inbound logistics Lead time - Port to Port.
Inbound logistics Lead time : To find out the amount of time it takes to stage, ship and transport an order, in order to receive material from the supply base for manufacturing the product from date of release of purchase orders, to receive of materials in Berger Paints India Ltd. (BPIL) considered as lead time. It includes the following:
Execution/Production of material at source.Transporting materials from manufacturing installation to source port.Sea passage time of containers.Clearance at destination port.Transportation at BPIL installation.
Details analysis of shipment of raw material of Berger Paints from different countries and time taken to reach the THREE destination ports (KOLKATA, MUMBAI AND CHENNAI PORTS.) are given below:
Figure 1: TIME TAKEN FROM BELGIUM
KOLKATA MUMBAI CHENNAI0
5
10
15
20
25
23
1921
BELGIUM- ANTIW-ERPAN
METERIAL COUNTRY FROM TO KOLKATA TO CHENNAI TO MUMBAI
SYIA195NX795 BELGIUM(ANTWERPEN)
22DAYS 21HRS(7688NMILES)
20DAYS 17HRS
(6963NMILES)
18DAYS 17HRS(6289NMILES)
NATROSOL 250HHBR
BELGIUM(ANTWERPEN)
22DAYS 21HRS(7688 NMILES)
20DAYS 17HRS
(6963NMILES)
18DAYS 17HRS(6289NMILES)
NO. OF DAYS
(Y AXIS)
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Figure 2: TIME TAKEN FROM CHINA
KOLKATA MUMBAI CHENNAI0
2
4
6
8
10
12
14
16
11.5
14
11.510
12
9.5
1213.5
11
9
11.5
9
13
15.5
13
CHINA-ZHANJIANG CHINA-XIAMEN CHINA-SHANGAIICHINA HONGKONG CHINA TIANJIN
METERIAL
COUNTRY FROM TO KOLKATA TO CHENNAI TO MUMBAI
MATT HARDNER
CHINA
(ZHANJIANG)
THROUGH
MALAYSIA
11DAYS 16HRS
(3921NMILES)
11DAYS
12 HRS
(3863NMILES)
14DAYS
(4710 NMILES)
CMC BONDWELL
CHINA
(XIAMEN)
THROUGH
MALAYSIA
9DAYS 18 HRS
(3272NMILES)
9DAYS
14 HRS
(3215NMILES)
12DAYS 2HRS
(4062NMILES)
TITANIUM DIOXIDE ANATASE CHINA
(SHANGAII)
11DAYS 6HRS
(3779NMILES)
11DAYS 2HRS
(3722NMILES)
13DAYS 14HRS
(4569NMILES)
CHINA 11DAYS 16HRS 11DAYS 12 HRS 14DAYS
NO. OF DAYS
(Y AXIS)
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ADDITOL(P964),
SYNTHACRYL-700
(ZHANJIANG)
THROUGH
MALAYSIA
(3921NMILES) (3863NMILES) (4710 NMILES)
MODIFIED PHENOLIC RESIN CHINA
(HONGKONG)
9DAYS 2HRS
(3054NMILES)
8DAYS 22HRS
(2997NMILES)
11DAYS 11HRS
(3844NMILES)
CALCINED KAOLIN
CHINA (INNER
MOGOLIA
CLOSET-PORT
TIANJIN)
13DAYS 1HR
(4376NMILES)
12DAYS 21HRS
(4320 NMILES)
15DAYS 9HRS
(5166NMILES)
C9PETROLEUM
RFESIN N100
CHINA(ZHANJIAN
G) THROUGH
MALAYSIA
11DAYS 16HRS
(3921NMILES)
11DAYS 12 HRS
(3863NMILES)
14DAYS
(4710 NMILES)
IRON OXIDE ORANGE,
IRON OXIDE YELLOW 920,
RUTILE TITANIUM DIOXIDE
CHINA(ZHANJIAN
G) THROUGH
MALAYSIA
11DAYS 16HRS
(3921NMILES)
11DAYS 12 HRS
(3863NMILES)
14DAYS
(4710 NMILES)
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FIGURE 5: TIME TAKEN FROM GERMANY
KOL MUM CHEN0
5
10
15
20
25
23
192123
1921
23
19.521.523.5
19.421.4
GERMANY-BREMERHAVEN GERMANY -HAMBURGGERMANY-KIEL GERMANY-BREMEN
METERIAL COUNTRY FROM
TO KOLKATA TO MUMBAI TO CHENNAI
PENTAERYTHRITOL GERMANY (BREMERHAVEN)
23DAYS 12HRS(7889NMILES)
19DAYS 8HRS(6491NMILES)
21DAYS 8HRS(7164NMILES)
ALPASTE SRAPA ,
METALLIC R-274,
STD AL POWDER,
AL PASTE
GERMANY (BREMERHAVEN)
23DAYS 12HRS(7889NMILES)
19DAYS 8HRS(6491NMILES)
21DAYS 8HRS(7164NMILES)
VESTANAT T 1890L,
POLYOIL
GERMANY (HAMBURG)
23DAYS 15HRS(7943NMILES)
19DAYS 11HRS(6545NMILES)
21DAYS 12HRS(7218NMILES)
CARBON BLACK ,
PRINTEX,
LAMPBLACK101BEADS.
GERMANY (KIEL)
23DAYS 17HRS(7962NMILES)
19DAYS 12HRS(6564NMILES)
21DAYS 13HRS(7237NMILES)
NO. OF DAYS
(Y AXIS)
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TITANIUM DIOXIDE RUTILE KRONOS
GERMANY (KIEL)
23DAYS 17HRS(7962NMILES)
19DAYS 12HRS(6564NMILES)
21DAYS 13HRS(7237NMILES)
BAYSILONE PAINT ADDITIVE,
SOLIGEN STABILIZER
GERMANY(BREMEN)
23DAYS 14HRS(7924NMILES)
19DAYS 10HRS(6525NMILES)
21DAYS 10HRS(7199NMILES)
TEGO PHOBE 1401,
ADHESION RESIN
GERMANY (BREMERHAVEN)
23DAYS 12HRS(7889NMILES)
19DAYS 8HRS(6491NMILES)
21DAYS 8HRS(7164NMILES)
BLANC FIXE SUPER "F"GERMANY (KIEL)
23DAYS 17HRS(7962NMILES)
19DAYS 12HRS(6564NMILES)
21DAYS 13HRS(7237NMILES)
ALUBRIGHT 3900 GERMANY (BREMERHAVEN)
23DAYS 12HRS(7889NMILES)
19DAYS 8HRS(6491NMILES)
21DAYS 8HRS(7164NMILES)
SILRES BS-1360 GERMANY (BREMERHAVEN)
23DAYS 12HRS(7889NMILES)
19DAYS 8HRS(6491NMILES)
21DAYS 8HRS(7164NMILES)
TYLOSE HS 10000 GERMANY (HAMBURG)
23DAYS 15HRS(7943NMILES)
19DAYS 11HRS(6545NMILES)
21DAYS 12HRS(7218NMILES)
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FIGURE 4: TIME TAKEN FROM JORDAN:
KOL MUM CHEN0
2
4
6
8
10
12
14
13
8.5
10.5
JORDAN-AMMAN
METERIAL COUNTRY FROM
TO KOLKATA
TO MUMBAI TO CHENNAI
CALCIUM CARBONATE JCFS
JORDAN(AMMAN)
12DAYS 18HRS
(4281NMILES)
8DAYS 14 HRS(2882NMILES)
10DAYS 14HRS(3555NMILES)
Figure5: TIME TAKEN FROM JAPAN
NO. OF DAYS
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KOL MUM CHEN0
2
4
6
8
10
12
14
16 1315
12.513.5
16
13.3
JAPAN OSAKA JAPAN TOKYO
NO. OF DAYS
(Y AXIS)
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Figure 6: TIME TAKEN FROM MALAYSIA
RAW MATERIAL
FROM COUNTRY
TO KOLKATA TO MUMBAI TO CHENNAI
DURANATE 22A75PX,
DURANATE TPA 90SB,
ALUMINIUM PASTE 970519,
ALUMINIUM 7130N,
ALUMINIUM PASTE 7640NS
JAPAN(OSAKA) 12DAYS 21HRS(4331NMILES)
15DAYS 6HRS(5121NMILES)
12DAYS 17HRS(427NMILES)
TITANIUM DIOXIDE RUTILE CR50
JAPAN(OSAKA)
12DAYS 21HRS(4331NMILES)
15DAYS 6HRS(5121NMILES)
12DAYS 17HRS(427NMILES)
HEXA HYDRO PHTHALIC ANHYDRIDE
JAPAN (TOKYO)
13DAYS 13HRS(4550NMILES)
15DAYS 21HRS(5340NMILES)
13DAYS 9HRS(4494NMILES)
METHYL ETHYL KETOXIME
JAPAN(OSAKA)
12DAYS 21HRS(4331NMILES)
15DAYS 6HRS(5121NMILES)
12DAYS 17HRS(427NMILES)
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KOLKATA CHENNAI MUMBAI0
1
2
3
4
5
6
7
3.8 3.8
6.3
4.5 4
6.5
PORT PENANG(NO.OF DAYS) PORT KELANG(NO. OF DAYS)
MATERIAL COUNTRY FROM
KOLKATA CHENNAI MUMBAI
ADDITOL P-964 MALAYSIA (PENANG)
3 DAYS 20HRS ( 1293NMILES)
3DAYS 19HRS(1279NMILES)
6DAYS 9HRS (2142NMILES)
CAFCO SPRAY MALAYSIA (PENANG)
3 DAYS 20HRS ( 1293NMILES)
3DAYS 19HRS(1279NMILES)
6DAYS 9HRS (2142NMILES)
DISTILLED COCONUT FATTY ACID
MALAYSIA (PORT KELANG)
4DAYS 15HRS (1556NMILES)
4DAYS 4HRS(1396 NMILES)
6DAYS 16HRS(2242NMILES)
TITANIUM DIOXIDE RUTILE
MALAYSIA (PORT KELANG)
4DAYS 15HRS (1556NMILES)
4DAYS 4HRS(1396 NMILES)
6DAYS 16HRS(2242NMILES)
FIGURE 7: TIME TAKEN FROM NITHERLANDS.
NO.OF DAYS
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KOL MUM CHEN0
5
10
15
20
25
23.5
1921
23
18.7 20.75
AMSTERDAM MOERDIJK
METERIALS COUNTRY FROM
KOLKATA MUMBAI CHENNAI
URALAC P4055,
URALACP5127,
URALACP4140,
URALACP5201
NETHERLANDS(AMSTERDAM)
23DAYS 4HRS(7789NMILES)
19DAYS (6390NMILES)
21DAYS 1HRS(7064NMILES)
SETALLUX NETHERLANDS(MOERDIJK)
22DAYS 22HRS(7695NMILES)
18DAYS 18HRS(6296NMILES)
20DAYS 18HRS(6969NMILES)
Figure 8: TIME TAKEN FROM SINGAPORE
NO. OF DAYS
P a g e | 58
KOL MUM CHEN0
1
2
3
4
5
6
7 5
7
4.7
SINGAPORE
METERIAL COUNTRY FROM
TO KOLKATA TO MUMBAI TO CHENNAI
TEXANOL SINGAPORE 4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
SICOTRANS REDL-3035,
SICOTRANS YELLOW
1916,REDL- 2817
SINGAPORE
4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
METHYL METHACRYLATE
SINGAPORE 4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
SURFYNOL 104 SINGAPORE 4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
ACRYSOL RM 825 SINGAPORE 4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
ROPLEX HG-706SINGAPORE
4DAYS 21HRS(1634NMILES)
7DAYS 5HRS(2424NMILES)
4DAYS 17HRS(1578NMILES)
FIGURE 9: TIME TAKEN FROM SOUTH KOREA (YEOSU)
NO. OF DAYS (Y AXIS)
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KOL MUM CHEN0
2
4
6
8
10
12
14
16 12.5
14.5
12
SOUTH KOREA YEOSU
MATERIALS COUNTRY FROM TO KOLKATA
TO MUMBAI
TO CHENNAI
HIQUE332 SOUTH KOREA (YEOSU)
12DAYS 4HRS (4092NMILES)
14DAYS 13HRS(4882 NMILES)
12DAYS (403NMILES)
FIGURE10: TIME TAKEN FROM SPAIN
KOL MUM CHEN02468
1012141618
17.86
13.7515.75
SPAIN- BARCELONA
MATERIALS COUNTRY FROM TO KOLKATA TO MUMBAI
TO CHENNAI
METHYL ISO BUTYL KETONE
SPAIN (BARCELONA) 17DAYS 22HRS(6020NMILES)
13DAYS 18HRS(4621NMILES)
15DAYS 18HRS(5295NMILES)
FIGURE 11: TIME TAKEN FROM SWEDEN
METERIAL COUNTRY FROM
KOLKATA MUMBAI CHENNAI
BERMOCOLL EHM-200
SWEDEN(LYSEKIL)
25DAYS 1 HR(8416NMIL
19DAYS 24HRS(6719NMILES)
22DAYS (7392NMILES)
NO. OF DAYS
(Y AXIS)
NO. OF DAYS
(Y AXIS)
P a g e | 60
ES)
TRIMETHYLOLPROPANE
SWEDEN(LYSEKIL)
25DAYS 1 HR(8416NMILES)
19DAYS 24HRS(6719NMILES)
22DAYS (7392NMILES)
KOL MUM CHEN19
20
21
22
23
24
25
25
21
22SWEDEN-LYSENKIL
FIGURE 12: TIME TAKEN FROM TIWAN (TAICHUNG):
KOL MUM CHEN0
2
4
6
8
10
12
14 10
12.3
9.75 TIWAN -TAICHUNG
METERIALS COUNTRY FROM KOLKATA CHENNAI MUMBAI
PARAFORMALDEHYDE92 PCT
TIWAN (TAICHUNG) 9DAYS 22HRS(3334NMILES)
12DAYS 7 HRS (4124NMILES)
9DAYS 18HRS(3278NMILES)
FIGURE 9: TIME TAKEN FROM THILAND
NO. OF DAYS
NO. OF DAYS
(Y AXIS)
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KOL MUM CHEN0123456789
10 7.2
9.5
7
THILAND -BANGKOK
METERIAL COUNTRY FROM KOLKATA MUMBAI CHENNAI
CRYLCOAT-2441
THILAND (BANGKOK)
7DAYS 7HRS(2451NMILES)
9DAYS 15HRS(3241NMILES)
7DAYS 3HRS(2394NMILES)
EPOXY RESIN EPOTECYD 127,
EPOXY RESIN PROTECYD901X75,
EPOXY RESIN EPOTE YD 903
THILAND (BANGKOK)
7DAYS 7HRS(2451NMILES)
9DAYS 15HRS(3241NMILES)
7DAYS 3HRS(2394NMILES)
CRYLCOAT-1510
THILAND (BANGKOK)
7DAYS 7HRS(2451NMILES)
9DAYS 15HRS(3241NMILES)
7DAYS 3HRS(2394NMILES)
FIGURE 11: TIME TAKEN FROM U.A.E:
NO. OF DAYS
(Y AXIS)
P a g e | 62
KOL MUM CHEN0
1
2
3
4
5
6
7
8
9
8.4
3.2
6.2UAE- SHARJAH
MATERIAL COUNTRY FROM
KOLKATA MUMBAI CHENNAI
EPOXY RESIN UAE(SHARJAH) 8DAYS 10HRS
(2832NMILES)3DAYS 7HRS(1105NMILES)
6DAYS 6HRS(2107NMILES)
ZINC DUST STANDARD-7 UAE(SHARJAH) 8DAYS 10HRS(2832NMILES)
3DAYS 7HRS(1105NMILES)
6DAYS 6HRS(2107NMILES)
FIGURE 15: TIME TAKEN FROM UK.
NO. OF DAYS
(Y AXIS)
P a g e | 63
KOL MUM CHEN0
5
10
15
20
25
22.7
18.520.5
UK-LONDON
MATERIALS FROMCOUNTRY
KOLKATA MUMBAI CHENNAI
BENTONE-27,
MPA 60,
BENTONE38,
BENTON"EW",
BENTONESD-2,
RHEOLATE-278,
BENTONE SD-3
UK(LONDON) 22DAYS 18HRS(7644NMILES)
18DAYS 14HRS(6245NMILES)
20DAYS 14HRS(6918NMILES)
FIGURE 6: TIME TAKEN FROM USA:
NO. OF DAYS
(Y
P a g e | 64
KOL MUM CHEN0
5
10
15
20
25
30
3528.7
24.526.526.7
2926.5
32
27.829.8
28.5
2426
WILMINGTON SAN FRANSISCO PITTSBURGH NUYORK
METERIAL COUNTRY FROM
KOLKATA MUMBAI CHENNAI
RUTILE TI PURE
USA(WILMINGTON)
28DAYS 17HRS(9650NMILES)
24DAYS 13HRS(8251NMILES)
26DAYS 13HRS(8924NMILES)
TIXOGEL-MP USA(SAN FRANCISCO)
26DAYS 18HRS(8990NMILES)
29DAYS 3HRS(9780NMILES)
26DAYS14HRS(8933 NMILES)
CUMARR-29USA(PITTSBURGH)
31DAYS 23HRS(10747NMILES)
27DAYS 20HRS(9348NMILES)
29DAYS 20HRS(10022NMILES)
TROYKYD D-666USA(NEW JERSY) NEAREST PORT NYK
28DAYS 8HRS(9525 NMILES)
24DAYS 4HRS(8127NMILES)
26DAYS 5HRS(8800NMILES)
FIGURE 17: TIME TAKEN FROM VIETNAM
NO. OF DAYS
(Y AXIS)
P a g e | 65
KOL MUM CHEN0123456789 6.75
9
6.5
HO CHI MING CITY
RAW METERIAL
COUNTRY FROM
TO KOLKATA TO MUMBAI TO CHENNAI
GUM ROSIN "WW" GRADE VIETNAM(HO CHI MINH CITY)
6DAYS 18HRS(2267NMILES)
9DAYS 2HRS(3056NMILES)
6DAYS 14HRS(2210NMILES)
WORLD SEA ROUTES
NO. OF DAYS
P a g e | 66
P a g e | 67
SEA TRADE ROUTES IN INDIAN OCEAN
Custom Clearance Findings
Need for custom clearance:
P a g e | 68
All goods imported in India have to pass through the procedure of customs clearance after they enter Indian Borders. The goods are examined, appraised, assessed, evaluated and allowed to be taken out after payment of custom duty. Since the entire process is complex the importers usually take the help of clearing agents.
Custom clearance of sea consignments involves the following major steps:
1. Preparation of bill of entry :
on receipt of advice of arrival of the vessel, the importer or their agents are required to
present a bill of entry in the prescribed form. Bill of entry is of three types:
bill of entry for home consumptions(white bill)
bill of entry for warehousing (yellow bill)
ex- bond bill of entry(green bill).
2. Noting of bill of entry :
The noting of bill of entry is filed with the import department of the customs house. The
noting clerk examines the paper and if found in order signs the bill of entry.
Note: the date of noting is important because the rate of duty applicable to the goods
would be the rate as in force on the date of noting except in case of warehouse goods
where the rate applicable would be that in force on the date of physical clearance.
“the bill of entry after noting is returned back to the importer.”
3. Submission of bill of entry for appraising of goods:
After noting the bill of entry is submitted to the receipt counter in the appraising
department along with the following necessary documents for Chemical composition
(in case of import of chemicals and allied products) products:
General procedure:
P a g e | 69
1. Import license.
2. Exporters invoice
3. Original copy of bill of lading and its non negotiable copy .
4. Two copies of packing list
5. Manufactures test certificate.
6. Weight specification.
7. Certificate of origin.
8. Delivery order issued by shipping company or its agent.
9. Freight certificate (in case of F.O.B. consignment)
10. Insurance certificate (in case of F.O.B and C&F consignment).
11. Declaration from the importer of having paid no commission to agents of India.
12. Customs declaration.
13. Catalogue /drawing of the machinery/ equipment/ material or etc.
4. Passing of bill of entry:
The information /documents submitted by the importer along with bill of entry are
verified by the appraiser concerned who after necessary verifications and examination decides
the product classification and passes the assessment. The underlying objectives are to assess the
correct value of the custom duty.
Either of the following situations can arise:
a) If the information/ documents submitted by the importer is found to be adequate by the
appraiser for the acceptance of declared value and determination of the classification, he
may allow clearance of goods (i.e. clearing of licensing formalities, assessment and
payment of custom duty) prior to examination of the goods.
This procedure where assessment is completed and duty is recovered prior to
examination of goods is known as “second check procedure”.
b) If there is a doubt relating to classification (this being possible if the
information/documents is adequate to accept declared value and determine classification,
P a g e | 70
the appraiser may raise a “query-memo” which is normal course is required to be
replied within 2 days.
The group appraiser may also issue examination order to the shed appraiser and decide
the product classification after receipt of examination report.
This procedure where assessment is completed and duty is recovered after examination
of goods is called “first check procedure”.
5. Licensing formalities:
Bill of entry (original and duplicate) is received in the license section for necessary debit
entry and for pre audit. Thereafter, duty is computed by computist and then returned to
importer for payment of duty in the accounts/ cash department.
6. Payment of custom duty:
All copies of bill of entry along with pay slip are submitted to the accounts section for
payment of duty. The following types of custom duties are levied on goods imported in
India.
A) Basic duty:
Basic duty is levied on all goods imported into India as prescribed in the First Schedule
of Customs Tariff Act, 1975. This schedule is amended from time to time to modify,
alter or vary the nature of duty. This duty can be levied either as a percentage of value of
goods or at a specified rate.
B) Auxiliary duty:
Auxiliary duty is levied in addition to the basic duty and is prescribed under the finance act
every year. However with effect 28.02.1993 the duty has been withdrawn after
restructuring and rationalizing the basic duty.
C) Countervailing duty or additional duty:
P a g e | 71
This duty is levied equal to excise duty leviable on like articles produced or
manufactured in India. This duty is levied on total cost of imported goods
D) Specific duty: The duty is levied in order to counter balance the excise duty leviable on
the imports going into the production of such goods produced in the country.
All copies of bill of entry along with pay slip are submitted to the accounts section for payment
of duty. A stamp is affixed on all copies of bill of entry as proof of having paid the duty.
7. Examination of goods and delivery from port:
After recovery of duty, all copies of bill of entry except the original (original is retained in the
accounts section) are returned to the importer for getting the goods examined in the docks (in
case of second check examination). In the docks shed appraiser/ examiner shall examine goods
and if in order shall give the out of charge for taking the delivery from port trust (custodian of
goods) after payment of port trust charges.
LEAD TIME:
P a g e | 72
Here lead time means total time which is considered approximately for the raw materials to get clearance from customs.
Here while calculating lead time one thing is kept in mind that if any delay occurs while submitting the following documents then delay time gets added with the lead time causing a high lead time which eventually effects the production.
So, delay occurs if the following papers are not submitted on time:
1. Import license.
2. Exporters invoice
3. Copy of letter of credit
4. Original copy of bill of lading and its non negotiable copy .
5. Two copies of packing list
6. Manufactures test certificate.
7. Weight specification.
8. Certificate of origin.
9. Delivery order issued by shipping company or its agent.
10. Freight certificate (in case of F.O.B. consignment)
11. Insurance certificate (in case of F.O.B and C&F consignment).
12. Declaration from the importer of having paid no commission to agents of India.
13. Customs declaration.
14. Catalogue /drawing of the machinery/ equipment/ material or etc.
Custom clearance analysis
D2
P a g e | 73
In the above page the details of information of custom clearance which were found while visiting the custom clearance office and meeting the officers are given and from that an analysis was done through a flowchart which gives a step by step clear picture, how the paper work is done and the parameters through which a scrutiny is done on the imported goods. And after clearing the formalities the goods are submitted to the clearing agents who deliver the goods to the warehouses.
FLOWCHART EXPLANATION:
Preparation of Bill- of-Entry
Noting of bill of entry
Verification of bill of entry by the appraiser
Appraiser accepted
value/description etc??
N
YES
START
1.2.
P a g e | 74
Inspection of goods (first check)
Passing of
bill-of-entry
Licensing formalities
2.1.
Computation of duty
Typing of duty on Bill-of-Entry on perforated typewriter
Audit of Bill-of-Entry by internal audit
Scrutiny by licensing department
Assistant Collector’s signature
Payment of duty
Goods examined
earlier (first check)?
3.
3.
N
Examination of goods by appraiser (2nd check)
YES
Payment of port trust charges
Delivery from Port Trust
STOP
P a g e | 75
Findings: on WAREHOUSE
A Warehouse is a commercial building for storage of goods. Warehouses are used by manufactures, importers, exporters, wholesalers, transport businesses, customs, etc. they are usually large lain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and unload goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.
After visiting certain ware housing agencies, following details were found,
Wear housing rates are calculated according to certain parameters:
1. Storage charges.
2. Cargo unloading charges. . (Each packet/piece weighing within 3 MT)
3. Cargo loading charges. (Each packet/piece weighing within 3 MT)
4. Insurance recovery.
Payment parameters :
Bills are raised on fortnight basis and to be settled within 5days of submission thereof. In case payments are released beyond 15days of submission, interest @11% shall be recovered.
WARE HOUSE:
WARE HOUSING CHARGES:
P a g e | 76
Here lead time means total time which is considered approximately for the raw materials to
reach the warehouse for storing of materials and time taken to upload the raw materials in trucks
for further transport to the plant.
Here while calculating lead time one thing is kept in mind that if any delay occurs while
unloading the raw materials in the warehouses and/or loading the raw materials back to the truck
for further transportation to the plant then delay time gets added with the lead time causing a
high lead time which eventually effects the production.
So, Possibilities for delay :
1. No availability of proper transport (trucks, tankers or/and tailors) from port to the
warehouses.
2. No availability of manual labours who will unload the materials into the warehouse.
3. No availability of proper instruments like forklift, shaft cranes to place the materials at a
safe place.
4. Non submission of papers and payments before uploading the materials back to the truck
for further transportation to the plant.
5. No availability of labours for uploading the materials to the truck for further
transportation to the plant.
6. No availability of proper road transport which will transport the material to the plant.
D3 & D4
LEAD TIME OF WAREHOUSE:
P a g e | 77
COST ANALYSIS OF WAREHOUSES
From the above parameters of ware housing charges the cost analysis of the following ware houses were done :
1. Tiwari Warehousing Company.2. Syndot Packers & Movers. 3. Balmer Lawrie & Co. ( Used by Berger Paints for storing Raw materials)4. A S Syndicate Pvt. Ltd.
Storage charges : Storage charges are considered as amount in Rupees per square feet per month:
Tiwari Warehous-ing Company
Syndot Packers & Movers
Balmer lawrie and co. ltd
A S Syndicate Pvt Ltd
0
5
10
15
20
25
30
28
2220
23.5
STORAGE CHARGES in Rs. ( PER SQ.FEET/MONTH)
P a g e | 78
Cargo loading and unloading charges : Cargo loading and unloading charges are considered as amount in Rupees per Metric- ton:
Tewari Warehous-ing company
Syndot Packers & Movers
Balmer lawrie and co. ltd
A S Syndicate Pvt Ltd
899091929394959697 95
97
95
92Cargo load-ing & un-loading charges(Rs.)
Insurance recovery charges: The insurance charges are given by the ware housing company over the goods kept in their custody and is charged as Rupees per kg per day of cargo value:
Tewari Warehousindg company
Syndot Packers & Movers
Balmer lawrie and co. ltd
A S Syndicate Pvt Ltd
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.5 1.5 1.5 1.5
Insurance recovery charges(Rs. 1.5/kg/day of cargo value)
NOTE : Insurance recovery is Rs.1.5 per kg per day of cargo value for all the companies.
P a g e | 79
Cost analysis of different warehouses:
SERIAL NO. COMPANY NAME ADDRESS STORAGE CHARGES
CARGO LOADING CHARGES
CARGO UNLOADING CHARGES
INSURANCE RECOVERY
1. Tewari Warehousing company
Jani Kunj Hode Shed Dump Road , Brace Bridge Road , Kolkata -88.
28/- PER sq. feet/ month
Rs.95 per MT
Rs.95 per MT
Rs.1.5 per kg per day of cargo value
2. Syndot Packers & Movers
Syndot Packers & Movers 3657 , Jyothi Roy Road New Alipore, Kolkata
20-23/- PER Sq.feet /month( AS PER THE GOODS)
Rs.97 per MT
Rs.97 per MT
Rs.1.5 per kg per day of cargo value
3. Balmer lawrie and co. ltd
P-3/1 Transport Depo Road Kolkata - 88
20/- PER sq.feet/ month
Rs.95 per MT
Rs.95 per MT
Rs.1.5 per kg per day of cargo value
4. A S Syndicate (Ware Housing) Pvt Ltd
23C, Ahiripukur 1st Lane, Ballygunge, Kolkata, 700019
23.5/- PER sq.feet/ month
Rs.92 per MT (Negotiable)
Rs.92 per MT (Negotiable )
Rs.1.5 per kg per day of cargo value
P a g e | 80
FINDING: Inbound logistics Lead time – Port to Plant.
Here lead time means total time which is considered approximately for the raw materials
to reach from supplier works to plant via road ways.
While calculating the lead time some points are taken into consideration:
1. Availability of proper transport: This means availability of trucks of proper size and in
proper condition so that the raw materials can reach the destination in the exact form as
required.
2. Availability of proper labor: This means availability of proper manpower to upload
(while in port) and unload (while in plant) the raw materials.
3. Delay in delivery: Delay in delivery can happen due to many reasons:
Unavailability of proper transport.
Unavailability of proper labor to upload the goods in the vehicles.
Natural calamities.( flood, storm, earthquake, landslide and etc.).
Man made calamities.( strike, rallies , road blockage, accident of other vehicles and etc.).
Vehicle mishap: accident, break down , tire puncher and etc.).
Road jam.
Delay after reaching the plant while unloading the materials from the truck and storing
the materials in the plant. Which is mainly caused due to un availability of labours for
unloading .
LEAD TIME:
D5&D6
P a g e | 81
4.Normal delay: this delay is considered as the time taken by the driver and his helper for
their rest and food. According to the truck drivers of various road transportation agencies:
In a whole day (24 hours):
Time allotted for food (4 times a day) and refreshing: 4hrs (approx).
Time allotted for sleep and rest: 6 hrs.(approx).
Total hours of driving each day: 24-(4+6) = 14 hrs a day.
Transit time : Here transit time is calculated as the exact time it takes for the raw
materials to reach the plant , by considering the exact total distance between the port and
the plant and then dividing it by the approximate speed of the vehicle (which is taken as
30kmph in this analysis.).
P a g e | 82
Analysis: Inbound logistics Lead time - Port to Plant.
FROM MUMBAI PORT:
PONDA(G
OA)
JAM
MU(J&
K)
Vid
ya V
alla
bh N
agar
(GUJ)
DEV
LA (U
.P.)
PONDIC
HER
RY
HOW
RAH( W
.B.)
RIS
HRA (W
.B)
012345678
4
8
3
6
2
8 8
1.5
4.5
2.5 2.5
0.2
2.1 2.1
LEAD TIME (DAYS) TRANSIT TIME (DAYS)
FROM PORT TO PLANT (FACTORY)
DISTANCE IN Km.
LEAD TIME TRANSIT TIME AVG SPEED
MUMBAI PORT PONDA (GOA) 344Kms 4 DAYS 15HRS 30KMPH
MUMBAI PORT JAMMU(J&K) 1582KMS 8 DAYS 60 HRS(2.5 DAYS APPROX)
30KMPH
MUMBAI PORT VIDYA VALLABH NAGAR
( GUJRAT)
447Kms. 2DAYS 20HRS( 1 DAY APPROX)
30KMPH
MUMBAI PORT DEVLA (U.P.) 1220Kms 6 DAYS 48HRS( 2DAYS APPROX)
30KMPH
MUMBAI PORT PONDICHERRY 1073Kms 5 DAYS 36HRS ( 1.5 DAYS APPROX)
30KMPH
MUMBAI PORT HOWRAH( WEST BENGAL)
1691Kms 8DAYS 57HRS( 2.5DAYS APPROX)
30KMPH
MUMBAI PORT RISHRA (WEST BENGAL)
1695Kms 8 DAYS 57HRS( 2.5DAYS APPROX)
30KMPH
P a g e | 83
FROM KOLKATA PORT:
PONDA (GOA)
JAM
MU(J&
K)
Vidya
Val
labh
Nagar
(GUJ)
DEVLA (U
.P.)
PONDIC
HERRY
HOWRAH( W
.B)
RISHRA(W
.B)0
1234567
7 76
56
2 23
3.53
22.5
0.041 0.041
LEAD TIME (DAYS) TRANSIT TIME (DAYS)
FROM PORT TO PLANT (FACTORY)
DISTANCE IN Km.
LEAD TIME TRANSIT TIME
AVG SPEED
KOLKATA PORT PONDA (GOA) 1756kms 8 DAYS 58HRS (3 DAYS APPROX)
30KMPH
KOLKATA PORT JAMMU(J&K) 1775kms 8 DAYS 60HRS( 3.5DAYS APPROX)
30KMPH
KOLKATA PORT VALLABH VIDYA NAGAR ( GUJRAT)
1574kms 7 DAYS 53HRS (3DAYS APPROX)
30KMPH
KOLKATA PORT DEVLA (U.P.) 1226kms 6 DAYS 41HRS (2DAYS APPROX)
30KMPH
KOLKATA PORT PONDICHERRY 1465kms 7 DAYS 49HRS ( 2.5DAYS APPROX)
30KMPH
KOLKATA PORT HOWRAH( West Bengal)
22Kms 2 DAYS 1 HR 30KMPH
KOLKATA PORT RISHRA (WEST BENGAL)
19Kms 2 DAYS 1 HR 30KMPH
P a g e | 84
FROM CHENNAI PORT:
PONDICHERRY0
0.20.40.60.8
11.21.41.61.8
2
2
0.2
LEAD TIME (DAYS) TRANSIT TIME (DAYS)
FROM PORT TO PLANT (FACTORY)
DISTANCE IN Km.
LEAD TIME TRANSIT TIME
AVG SPEED
CHENNAI PORT
PONDICHERRY 134KMS 2 DAYS 5 HRS 30KMPH
NOTE: FROM CHENNAI PORT GOODS ARE ONLY SUPPLIED TO PONDICHARY PLANT.
ROAD MAP FROM PORT TO PLANT
P a g e | 85
TOTAL TIME ANALYSISCURRENT SENARIO :
FROM BOMBAY
FROM CHENNAI
FROM KOLKATA
PORT
PLANT
P a g e | 86
Here the above chart is an O &M Chart where:
SOURCE PORT
DESTINATION PORT
D1
CUSTOMS INSPECTION
D3
WARE HOUSE
D4
D5
UNDER SHIPPING AGENT
D2 UNDER CUSTOMS CLEARANCE
AGENT
UNDER WAREHOUSING
AGENT
UNDER ROAD TRANSPOTATION
AGENT
D DELAY TIME Agents involved
PLANTD6
P a g e | 87
= + + + + +
From the above scenario we can see that there are 6 different kinds of delay which slows
down the process of reaching the material from source to destination.
D1 Delay caused during shipping of the raw materials
D2 Delay caused during custom clearance of raw material
D3
D4
Delay caused during unloading raw materials in warehouse.
Delay caused during uploading raw materials from warehouse into trucks for transporting it to plant.
D5 Delay caused during transporting the raw materials through road transport from warehouse to plant.
UNDER SHIPPING AGENT
UNDER CUSTOMS CLEARANCE AGENT
UNDER WAREHOUSING
AGENT
UNDER WAREHOUSING
AGENT
UNDER ROAD TRANSPOTATION
AGENT
D1 D2 D3 D4 D5TOTAL DELAY (D)
D6Delay caused while unloading the raw materials from truck into the stores of BPIL plant.
UNDER ROAD TRANSPOTATION
AGENT
D6
P a g e | 88
Here there is an involvement of 4 different agents under whose guidance the material
reaches from the source to destination.
If one the four agents fails to run the process smoothly then the delay time increases by a
huge margin gradually effecting the production of paint.
The major cause of these delay is due to lack of synchronization between all the four
agents , i.e. if one fails to deliver on time then all the other 3 gets effected.
Now on the costing point of view, each of the four agencies has to be paid a certain
amount as their carrying cost or storing cost which comes to 20-25% on total cost of the
material for the whole process.
Hence a total of 20-25% of total cost of material is spent on its transportation but still
efficiency is not up to the par.
= + + + +
=
RECOMMENDATION
COST OF IMPORT
CHARGE OF SHIPPING AGENT
CHARGES UNDER CUSTOMS
CLEARANCE AGENT
CHARGES UNDER
WAREHOUSING AGENT
CHARGES UNDER ROAD
TRANSPOTATION AGENT
20-25% OF TOTAL COST OF MATERIALS.
P a g e | 89
SUGGESTIVE SENARIO: CURRENT SENARIO:
Here the above chart is a recommended Operation &Management Chart where:
SOURCE PORT
d1
DESTINATION PORT
CUSTOMS INSPECTION
WARE HOUSE
d5UNDER ONE
INTERNATIONAL AGENT
d REDUCED DELAY TIME Agents involved
SOURCE PORT
D1
DESTINATION PORT
CUSTOMS INSPECTION
WARE HOUSE
D2
D3
D4
D5
UNDER SHIPPING AGENT
UNDER CUSTOMS CLEARANCE
AGENT
UNDER WAREHOUSING
AGENT
UNDER ROAD TRANSPOTATION
AGENT
D6
P a g e | 90
= + + + + +
SO UNDER AN INTERNATIONAL AGENT:
d1 Reduced Delay during shipping of the raw materials
- Delay during custom clearance of raw material can be nullified
-
-
Delay during unloading raw materials in warehouse can be nullified.
Reduced Delay during loading raw materials from warehouse into trucks for transporting it to plant which can be nullified.
d5 Reduced Delay during transporting the raw materials through road transport from warehouse to plant.
d1 - - - d5TOTAL DELAY(d)
UNDER ONE INTERNATIONAL
AGENT
-
- Reduced Delay during unloading the raw materials from truck into the stores of BPIL plant which can be nullified.
THE ACCOUNTABILITY ON SINGLE AGENT OFFER BETTER CONTROL
P a g e | 91
Delay during custom clearance of raw material can be nullified as it will be under
one agency hence all the paper submission and submission of bill of entry will be
on time hence there will be no delay during custom clearance.
Delay during unloading raw materials in warehouse can be nullified as here the
transporter of the materials from port to warehouse and the warehouse personal
are under the same agency hence synchronization and efficiency of time will be
maximum without any delay.
And same during loading goods from warehouse as under one organization hence
arrangement of transportation and labour for uploading will be done by one unit
without any hindrance.
Unloading of goods from trucks to the plant will be done by labours arranged by
the International agent so the delay can be nullified.
= + + + + +
= + + + + +
Fig: Showing reduced delay
D1 D2 D3 D4 D5TOTAL DELAYTIME (D)
d1 - - - d5TOTAL REDUCED DELAY TIME (d)
Recommendation to reduce delay
Recommendation to reduce cost
D6
-
WILL BE REDUCED TO
P a g e | 92
Now on the costing point of view, with one International agent the carrying cost and
storing cost will come to 10-15% (max) of total cost of the material for the whole
process.
Hence a total cost can be reduced from 20-25% to 10-15% with efficiency up to the
par.
=
=
=
Fig: Showing reduced cost.
Conclusion
COST OF IMPORTATION
20-25% OF TOTAL COST OF MATERIALS.
REDUCED COST OF
IMPORTATION
10-15% OF TOTAL COST OF MATERIALS.
WILL BE REDUCED TO
SAVINGS OF TOTAL
10% OF TOTAL COST OF MATERIALS.
P a g e | 93
In these 2 months project collecting data from different types of agencies and finding out total
lead time was my work and obviously I had to face some resistance in the way. But I have
managed to counter the resistance and this project was a great experience for me. It has given
me the opportunity to get exposure in the world of Supply chain and Logistics. There were many
tough moments that I had to face regarding communication. But, at the end of the project I have
to admit that these difficulties have made me much more efficient. The whole system of the
company has helped me a great deal and this was the best part of the project.
All in all, it was a real great exposure for me. For a fresher like me, it has given me a
huge opportunity to showcase my endowment and ability to work as a professional which has
always been an ambition for me. Working for one of the leading paint company of India, Berger
Paints India Ltd, has given me the apprehension of how to go about in an organization and also
it has given me ability to over view problems as opportunities to find out innovative and
profitable solutions.
REFERENCESREFERENCES
P a g e | 94
Bibliography: Bibliography:
Supply Chain and Logistic Management – Donald.J Bowersox , David J. Closs.Supply Chain and Logistic Management – Donald.J Bowersox , David J. Closs.
Purchase Management- Prof. L.C. Jhamb.Purchase Management- Prof. L.C. Jhamb.
Production and Operations management – Prof. S.N Chari.Production and Operations management – Prof. S.N Chari.
Web Help:-Web Help:-
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www.bergerpaints.comwww.bergerpaints.com ..
www.globalsupplychain.comwww.globalsupplychain.com ..
www.wikepedia.comwww.wikepedia.com ..
ANNEXURE
INTERIOR WALL COATING
P a g e | 95
ENAMEL FINISH
EXTERIOR WALL COATINGS
WOOD FINISH
P a g e | 96