LOGISTIC SOLUTIONS FOR ITC

LOGISTIC SOLUTION FOR ITC

MJ LOGISTICS SERVICES LIMITED

PRESENTED BY-

SAURAV MANN14BSP2109

2

AIMS & OBJECTIVES

Efficiently knowing all the operations conducted in the warehouse in both K2 and K3 shipments.

Improving time motion for loading and offloading of goods.

  Improving productivity & efficiency of workforce in the warehouse.

Increasing storage space by modification of current infrastructure.

Conversion of current practices followed by workforce into Morden.

3

MJ LOGISTIC SERVICES LIMITED

M.J. Logistic Services Ltd. offers

complete

storage,

Transportation,

distribution, and

Cold chain enabled solutions

MJ Warehousing began offering quality warehousing and distribution services at Mandoli (Delhi NCR) in 1993.

4

MJ LOGISTIC MANAGE

More than 1 Million sq. Ft. of Warehousing space 300+ Daily Vehicle Turnarounds 40,000+ SKUs 12 Locations 30+ Satisfied Clients

5

MJ’S CLIENTS

MJ has mainly 3 kind of clients

Auto and Light Engineering

Food & FMCG

Cold Chain

6

MJ’S OPERATING LOCATIONS

MJ operates in North India states it covers are Punjab Haryana H.P U.K Delhi

7

WAREHOUSE OF MJ AT HAMIDPUR DELHI

Docks in warehouse = 18 Bays in warehouse = 13 Gates in warehouse = 1 Capacity = 87,000 sq. feet's Parking area = 12,991 sq. feet's Security check post = 1 Number of working stations = 7

8

FMCG PRODUCTS OF ITC AT WAREHOUSE

CHIPS (Bingo) JUICE ( B Natural) CONFACTIONARY (Candy man, Mint O) BISCUITS (Sun feast) PASTA ( Sun feast yippee ) READY TO EAT (Aashirvaad ) SALT (Aashirvaad) PERSONAL CARE (Toilet soap , Bathing soap , Shower gel etc.) DEODRANT (Engage) AGARBATTIS (Mangaldeep) MATCH BOX (SHIP, AIM )

9

THE OPERATIONS IN ITC ARE OF 4 TYPES

K1: Manufacturing plant to warehouse

K2: Inter- transfer to warehouse

K3: It is the process where, the goods are sold to WD’s in the process of sales.

K4: in the K4 shipment process, the WD supplies the required number of goods to the retailers.

10

OPERATIONS OF MJ AT WAREHOUSE

I. TRUCK REPORTING Gate entry SIT Time of reporting TIT

II. OFFLOADING Dock selection Unloading

11

ORGANIZATIONAL STRUCTURE OF TEAM MJ LOGISTICS LIMITED

Kind of Workforce works in MJ Logistic Services Limited

12

WORKFORCE IN WAREHOUSE

Most of the workforce in the warehouse is outsourced. Given below is the list of outsourced companies:

SAP operators and Supervisors : Genius Consultants Ltd. Security Guards : Lambert Securities Ltd. Labour : Local Contractors Shift In charge and floor head : Self recruited by MJ Logistics

13

WORKFORCE IN A DAY

Manager : 2 (1 day) + (1 night)

Shift in charge : 2 (1 day) + (1 night)

SAP operators : 7 (5 day) + (3 night)

Security Guards : 21 (1 head + (8 day) + (12 night))

Labour : 30 (12 day) + (18 night)

________________________________

TOTAL 62

14

Time & Motion Study

The most important thing in Logistics is time. Time taken and motion are affected by many factors.

Loading and offloading mainly depends on the length of the Lorry.

Avg. time taken, Avg. no. of CFC, Avg. no. of labour, Avg. dock covered. These data are collected.

AVG. TIME TAKEN IN LOADING & UNLOADING OF DIFFERENT LENGTH LORRIES

UNLOADIND

32 FEET’S LORRY Average time taken for 32 feet's lorries = 2 hrs. 11 min.

Average CFC unloaded in this time period = 909

Average of labours for this task = 3.25

24 FEET’S LORRY Average time taken for 24 feet's lorries = 1 hrs. 22 min.

Average CFC unloaded in this time period = 732

Average of labours for this task = 3.4

18 FEET’S Average time taken for 18 feet's lorries = 1 hrs. 27 min.

Average CFC unloaded in this time period = 965

Average of labours for this task = 2.6

UPLOADING

14 FEET’S Average time taken for 14 feet's lorries = 1 hrs. 34 min.

Average CFC loaded in this time period = 309

Average of labours for this task = 2.4

17 FEET’S Average time taken for 24 feet's lorries = 1 hrs. 31 min.

Average CFC loaded in this time period = 533

Average of labours for this task = 3

24 FEET’S Average time taken for 24 feet's lorries = 2 hrs. 22 min.

Average CFC loaded in this time period = 599

Average of labours for this task = 2.5

16

CONT.

It was observed in a particular loading on an average 15 mints. are spend by supervisors to search the batch to be filled from different ware houses/ docks.

A process can be designed in which a supervisor will be allotted a particular part of the ware house like juice to a supervisor.

So supervisors should be knowing all the batches effectively and they don’t have to move to every ware house.

INCREASING THE STORAGE AREA BY 5000 sq. feet's.

Area for the storage can be increased by 5000 sq. feet's. by construction on a selected place in the ware house.

The area shown between 2 ware houses can be used for storage after modification by a shade and a platform for keeping goods.

DIMENSIONS OF THE AREA (3D VIEW)

FIG.1 - Length of the ware house = 157’.1’’, Breath of the ware house = 77’.5’’FIG.2 - Total surface area of the proposed storage space = 4886.25FIG.3 - Length of the proposed storage space = 130’ , Breath of the proposed storage space = 37’.5’’FIG.4 - Height of RCC between the two warehouses in the proposed storage space = 3 foot’s

CONT.

Modification of the area needs a shading of 5000 sq. feet’s and Reinforced cement concrete (RCC )of 15000 sq.feets (5000 sq. feet’s * 3 foot’s).

BEFORE AFTER

In picture on the left is the current view and on right side is the shaded roof between two warehouses which can be made for storage area

CONT.

As per the new modification old docks will be closed as the area will be used for the storage. Four new docks will be created in the front . At the new docks it will be easy to load and unload the lorries

Four new docks can be created

2 each on the front sides of the two warehouses

FUNDS REQUIRED FOR THE MODIFICATION

MATERIAL Price per Sq. feets (in Rs.) Total cost (in Rs.)

1. Filling 150’ X Rs. 1300 (160 dumpers ) 2,08,000

JCB, Roller etc. ……… 58,000

2. Flooring 50 per sq. feet’s ( Trimex flooring ) 2,44,300

3. Iron ……… 5,60,000

4. Sheets Rs. 50 per sq. feet’s (Metro ) 3,20,000

5. Labour ……… 2,50,000

6. Miscellaneous expenditure ……… 3,00,000

TOTAL 19,40,300

CONVERSION OF CURRENT PRACTICES FOLLOWED BY WORKFORCE INTO MORDEN

Platform Hand Trolley can be used for loading and unloading .

Featuring a folding handle for easy transportation and storage

Steel frame, PVC sheet, rubber castor with zinc finish rim

Surface finish for steel: powder coated

DOCK LEVELLER & LOADIG DOCK

Dock Leveller & LOADIG DOCK can be use between the lorry and dock to make a bridge between them .

Dock Leveller

It is an adjustable ramp which finds its application in transporting vehicle and dispatch area of ware house or factory for an efficient material transport application.

It fills the gap between the dispatch area and the transport vehicle and provides a substitute for variations in the truck bed height.

The dock leveller’s maximum capacity is up to 10,000 kg.

LOADING DOCK

This heavy-duty lift table is best for requirements.

Used in material handling for various purposes.

It has a capacity up to 6000 kg.

25

BENCHMARK THE PRODUCTIVITY

LOADING Number of loading vehicles handled in the month is 969. Average number of cases handled per day is 31.25. Considering the man minutes per case is 70, total man minutes per day are 2184.

UNLOADING Number of unloading vehicles handled in the month is 312. Average number of cases to be handled per day is 10. Considering the man minutes per case to be 80, the total man minutes per day

are 800.

26

PRODUCTIVITY OF WORKFORCE FOR MARCH 2015

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Series 1 56 47 72 90 64 22 57 76 60 84 80 86 89 72 79 39 92 84 71 87 91 73 50 81 79 84 82 83 76 43 53

5

15

25

35

45

55

65

75

85

95

56

47

72

90

64

22

57

76

60

8480

86 89

7279

39

92

84

71

8791

73

50

81 7984 82 83

76

43

53

PRODUCTIVITY FOR THE MONTH OF MARCH 2015

MONTH OF MARCH 2015

PRO

DU

CTIV

ICTY

27

EFFICIENCY OF WORKFORCE FOR MARCH 2015

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Column3

0.83

1.62

0.68

0.81

0.83

1.5 1 0.53

1.04

0.57

0.56

0.57

0.62

0.6 0.8 1.27

0.56

0.52

0.65

0.57

0.76

0.52

1.14

0.61

0.52

0.57

0.54

0.65

0.72

1.15

0.72

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

1.7

0.83

1.62

0.680.81 0.83

1.5

1

0.53

1.04

0.57 0.56 0.57 0.62 0.6

0.8

1.27

0.56 0.520.65

0.57

0.76

0.52

1.14

0.610.52 0.57 0.54

0.650.72

1.15

0.72

EFFICIENCY FOR THE MONTH OF MARCH 2015

MONTH OF MARCH 2015

EFFI

CEN

CY

28

RESULTS OBTAINED IN MARCH 2015

TASK Average work done Should be

Average number of truck loaded per day

29.2 33

Average number of truck unloaded per day

9.387 12

Average supervisor present per day 12.32 14

Average labours present per day 23.774 42

Average CFC carried per day 20551.5 35000

Average Labour per supervisor per day 1.929 3.28

29

REASONS FOR LOW PRODUCTIVITY & EFFICIENCY

Lack of Mechanization

Number of productive workers are very less

Non-availability of adequate manpower.

High quantity of goods doesn’t motivate the workers to handle.

Bad utilization of warehouse space due to which motions are large.

CONCLUSION

Making new docks and using platform hand trolley will reduce man power.

Investment to be made is around 21 lakhs for new docks, storage area and buying

platform hand trolley

So we will require 7 less labours and 2 less supervisors after these modification.

In around 3 yrs. the money we invested will be nullify and from there on we will

save Rs. 60,000 per month after on.

31

ABC Analysis

For conducting the ABC analysis, the data for April is studied and hence, the result obtained volume wise are:-

A-Class Items :-

Bingo Teda Meda Biscuits GlucoseNoodles MasalaJuice MixedMatch Box ShipAgarbattis Mangaldeep MograPCP Vivel AloveraConfectionary Toffee choostrawberryRTE Dal BukharaPasta Masala

B-Class Items :-

Bingo Tangles MasalaBiscuits Sunfeast Marie LightNoodles Chinese MasalaJuice PineappleMatch Box Home lightAgarbattis Mangledeep RosePCP Vivel Green teaConfectionary Mint O gol orangeRTE Muglai Panner Pasta Tricol Pasta Masala

C-Class Items :-

Bingo Tangle Salted Biscuits SF salted ChilliNoodles Classic MasalaJuice JamunMatch Box Homelight JarAgarbattis Mangaldeep SandalPCP Vivel CR RF rose Moisturiser Confectionary Natkhat MangoRTE Mango garlic Chatni Pasta Tricol Pasta Cream Corn

32

FSN Analysis

The goods in the warehouse are mainly classified according to this category of inventory control. The FSN (Fast, Slow, and Normal) categories are distinguished by the way the goods move in and out of the warehouse for a particular period of time. Fast Moving Bingo

NoodlesSlow Moving Pasta

ConfectionaryPersonal Care Products (PCP)JuiceAgarbattisReady to Eat (RTE)

Normal Moving Biscuits

33

SWOT analysis of MJLSL

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a business venture.

STRENGTHS

Experienced Workforce Industrial Exposure Skilled Workers Acts as WSP , Transporter and operations

WEAKNESSES Effectiveness in people management is

less( Supervisors & Labours) Low response time

OPPORTUNITIES

Can upgrade to 4PL Can works in more shifts Can expand business Pan India

THREATS Competition from other players in the

industries

Cost efficiency

34

PORTER FIVE FORCES ANALYSIS OF LOGISTIC INDUSTRY IN INDIA

Porter five forces analysis is a framework to analyse level of competition within an industry and business strategy development.

35