Report on "Supply Chain Initiative in APR Limited"

CASE ANALYSIS

CASE NUMBER .4

SUPPLY CHAIN

INITIATIVEAT

“APR LIMITED”

Submitted To:

Mr. N S Uppal

Submitted By:

Atul Jain Kavita Deora Sahil GABA

Supply Chain Initiative at APR Limited Page 1

Sandeep Khowal

T ABLE OF CONTENT S

S.NO. TOPICS PAGE NO.

METHODOLOGY

OBJECTIVE OF THE STUDY 04

CHAPTER. 1. INTRODUCTION

1.1 BACKGROUND1.2 BUSINESSES1.3 REQUIRED WOOD1.4 SUPPLIER1.5 WOOD CONSUMPTION1.6 FUTURE STRATEGIES1.7 APR LIMITED SUPPLY CHAIN

05050505060606

CHAPTER. 2. FINDINGS

PROBLEMS 07

CHAPTER. 3. SIX DRIVERS OF SUPPLY CHAIN

3.1 FACILITIES3.2 INVENTORY3.3 TRANSPORTATION3.4 INFORMATION3.5 SOURCING3.6 PRICING

080910101111

CHAPTER. 4. DISCUSSION QUESTIONS

QUESTION NUMBER .1.QUESTION NUMBER .2.QUESTION NUMBER .3.

13-1819-2627-29


CHAPTER. 5. CONCLUSION

RESULT OF THE STUDY 30-31

BIBLIOGRAPHY 32-33


OBJECTIVE

To understand strategic role of supply chain.

To understand drivers of supply chain performance.

To develop capabilities for analytical analysis of supply chains.


1. INTRODUCTION

1.1Background

APR Limited was a diversified Taper group company engaged in a number of

businesses. Our Unit is one of the best in South East-Asia for manufacturing

dissolving Grade pulp.

Rayon grade pulp accounted for 70 percent of the company turnover. The

pulp manufacturing plant was located in the remote area at Kamalapuram of

Warangal District & is away by 120 km from Warangal in Andhra Pradesh.

1.2Businesses

APR Limited engaged in a number of Businesses like,

- Pulp

- Packaging

- Soya meal and

- Leather footwear

1.3 Required Wood

The company was currently using two types of wood - namely,

1. Eucalyptus

2. Casuarina

1.4 Supplier

The company procured wood from a number of wood contractors who

sourced wood from different places.

Casuarina:

It was sourced from various parts of Andhra Pradesh.


Eucalyptus:

60% of eucalyptus was sourced from Andhra Pradesh, 20% from Karnataka

and the balance 20% from Uttar Pradesh.

1.5 Wood Consumption

The Company was currently using two types of wood in the proportion of

60:40 for procuring one ton of pulp; the plant needed about 4.2 tons of wood.

1.6 Future Strategies

In early 1995, the company decided to make substantial investment so as to

double its capacity by 1997 end from 150 MT of rayon pulp to about 300 MT per day.

The company had further plans to increase the capacity so as to reach to the level of

500 MT per day by 2002.

1.7APR Limited Supply Chain


Customer

Plant(APR Limited, Kamalapuram, A.P.)

Supplier(Andhra Pradesh, Karnataka & U.P.)

Raw Material(Eucalyptus & Casuarina Woods)

MATERIAL FLOW MONEYINFORMATION

2. FINDINGS

1. International pulp prices dropped by about 40 percent because in the

beginning of 1997, the government slashed custom duty on rayon pulp from

25 to 10 percent.

2. Holding Inventory of 6 Months of wood stock at its wood yard, during the first

three months the moisture content would come down at the rate of 4 to 5

percent per month. Subsequently, with every month the moisture content

would come down at the rate of 1 to 2 percent per month.

3. As there was shortage of woods in Andhra Pradesh Region, the company had

no choice but to accept the terms dictated by suppliers.

4. Wood Contractors asked for increase in rates so as to compensate them for

the increase in waiting time at the company, many trucks come during the

night and wait outside the factory gate.

5. Material Handling Cost is very high.

- One point in time the company was paying about Rs. 10 million to the labour

contractor for the material handling of wood.

- If a truck unloaded at the wood yard and material was subsequently brought

to the chipper, it would result in extra material handling costs of Rs. 100/ton.

- The company employed contract labourers who were paid on the piece rate

basis.

6. Each Chipper only one truck could be unloaded at a time because truck

unloading required special equipment.

7. There is no systematic pattern of Truck Arrival. Truck Arrival pattern would

change drastically on a day-to-day basis.

8. Production Personnel changed their chipping schedules frequently during the

day and rarely followed the schedule that they would have given to the wood

yard personnel at the beginning of a day.

9. Lack of coordination with various departments personnel because of this

problem they did not follow the schedule.

10. No material accounting at the wood yard.

11. Unloading of a truck required about 1.5 to 2 hours because they unloaded the

trucks manually.


12. There may not enough demand in the RG pulp market.

3. SIX DRIVERS OF SUPPLY CHAIN

Drivers determine supply chain performance. For each driver, managers must

make tradeoffs between efficiency (cost) and responsiveness.

Six Drivers of Supply Chain are as follows

1. Facilities

2. Inventory Logistical Drivers of Supply Chain

3. Transportation

4. Information

5. Sourcing Cross Functional Drivers of Supply Chain

6. Pricing

3.1 FACILITIES

Places within the supply chain where inventory is stored, assembled, or

fabricated. Decisions on location, capacity, and flexibility of facilities have a

significant impact on performance.

APR Limited

Facilities

There are two type of woods were used in APR limited Eucalyptus &

Casuarina in proportion of 60:40

These woods were coming from three states Andhra Pradesh, Karnataka and

U.P

There could be 6 trucks which unloaded at a time in wood yard.

APR limited had a big wood yard having enough space and it had sufficient

tractors.

Problems


Unloading of trucks at wood yard took huge time because they did it manually.

At each chipper only one truck could be unloaded at a time.

3.2 INVENTORY

All of the raw materials work in process (WIP), and finished goods within the

supply chain. Inventory policies can dramatically alter a supply chain’s efficiency

and responsiveness.

APR Limited

Inventory

Raw Material : Holding about 6 months of wood stock.

Work in Progress : It would go according to the wood chipping schedule.

Likely wood chipping schedule

SCHEDULE TYPE OF WOOD MT

CHIPPER 1 8:00AM TO 1:00PM Casuarina 125

CHIPPER 2 7:00AM TO 1:30PM Eucalyptus 230

CHIPPER 1 4:00PM TO 7:30PM Casuarina 150

CHIPPER 2 4:30PM TO 9:30PM Eucalyptus 260

CHIPPER 1 10:30PM TO 1:30AM Casuarina 105

CHIPPER 2 11:30PM TO 5:30AM Eucalyptus 185

Finished Goods : 250 MT per day

Problems

APR limited was holding Inventory of 6 Months of wood stock at its wood

yard, during the first three months the moisture content would come down

at the rate of 4 to 5 percent per month.

More inventory in wood yard increased material handling cost.


3.3 TRANSPORTATION

Modes and routes for moving inventory throughout the supply chain.

APR Limited

Transportation

In APR limited they are using truck for transport purpose.

APR Limited was sourced Eucalyptus from Andhra Pradesh, Karnataka &

Uttar Pradesh & Casuarina was sourced from various parts of Andhra

Pradesh.

Problems

There is no systematic pattern of Truck Arrival. Below there is truck arrival

pattern on a day. Truck arrival pattern would change drastically on a day-

to-day basis.

Expected truck arrival pattern on a typical day

Eucalyptu

s Casuarina

06:00 - 08:00 8 5

08:00 - 10:00 14 7

10:00 - 12:00 18 10

12:00 - 02:00 10 6

02:00 - 04:00 10 6

04:00 - 06:00 6 4

06:00 - 08:00 4 2

3.4 INFORMATION


Data and analysis regarding inventory, transportation, facilities, and

customers throughout the supply chain. It is potentially the biggest driver since it

affects all the other drivers.

APR Limited

Information

Wood procurement data was managed by procurement personnel, the wood

yard was managed by stores personnel and the chipper was managed by production

personnel. Maintenance personnel was managed to replace blunt knives with

sharpened knives at the chipper.

Problems

Lack of coordination between the various departments personnel.

3.5 SOURCING

Sourcing is the set of business processes required to purchase goods &

services. Managers must first decide which tasks will be outsourced & those that will

be performed within the firm.

APR Limited

Sourcing

Truck to purchase the woods from different states.

3.6 PRICING

Pricing is related with that how much a company will charge for Goods &

services that it makes available in the supply chain. Actually pricing affects the


behaviour of the buyer of the goods or services which can affect supply chain

performance.

APR Limited

Pricing

Company have no choice but to accept the terms dictated by suppliers in

pricing fixed rate ton.

Prices were ruling at about 35000 per MT dropped to a level of about 25000

per MT.

Company is paying about 10 million to the labour contractor for the material

handling of woods and extra material handling cost 100 per ton.

Problems

Very high material handling costs & extra handling cost.

International Price dropped by about 40 percent.


Question No. 1

As Saloni Yashpal, what would you do to address the wood logistics problem?

Where would you focus your attention and solution efforts?

Solution

As Saloni Yashpal various wood logistics problems that would come across our way

are as:

1. BACKROUND

Reduction of custom duty on rayon has led the company decide to make

substantial investment so as to double its capacity from 150 MT to 300 MT per day.

Further increase the production upto 500 MT per day.

2. WOOD LOGISTIC PROBLEM

2.1 PLANNING

The company purchased wood in the form of logs, which were converted into

wood chips before being fed into a digester. The company had two chippers and two

separate silos for eucalyptus and casuarinas. The proportion of the wood instead of

being fixed based on factors like availability of wood.

Therefore as the ratio not being fixed led the company to vary it according to

the availability of wood , as a result of which if the eucalyptus logs are forming a ratio

of more than 60% then the chipper had to wait for a long time as the ratio is changed

. As a result of such decisions trucks had to wait in long queues till early wee hours

and at the same time contractors demanded more money which in turn led to the

cost increment?


Holding six months of inventory was a standard practice followed by the pulp

and paper industry. Wood did get affected with time and the plant yield usually would

be lower if wood was stored for a longer period of time.

Hence there was no proper planning of inventory holding, lead time and the

company didn’t follow a standard practice.

2.2 PROCUREMENT

The company usually had two kinds of contracts with the suppliers who supply

the wood. In one kind the price of wood is based on its moisture content. The

contract price would mention the price for having wood say, 10 percent moisture.

The actual moisture content in the wood would vary from one truck to another.

Based on the sample collected at the time of receipt, the quality control personnel

would estimate the actual moisture content in the incoming wood and the supplier

would be paid accordingly. Another kind of contract involved fixed prices per ton of

wood irrespective of moisture content in the incoming wood. The company would like

to get wood based on the first type of contract, but suppliers insisted on the latter

type. As there was shortage of wood in the Andhra Pradesh region, the company

had no choice but to accept the terms dictated by suppliers.

Hence while not giving heed to the demand of suppliers the Company was

hitting their own shoe as sourcing from far away regions like Karnataka and UP for

almost all the wood logs would lead to cost increment. Moisture content had no

specific quality problem.

2.3 TRANSPORTATION

A steady stream of trucks would arrive at the gates of the company, each

carrying about 10 MT of logs. Each truck was weighed at the weigh bridge and

depending on the schedule and availability of chipping schedule logs would be

unloaded. The company would prefer if the truck was unloaded directly at the

chipper. Because if a truck unloaded directly at the Woodyard then it would lead to

extra material handling costs of about 100 per ton . At each chipper only one truck

could be unloaded at a time

And the balance material was bought from the Woodyard using the tractor

which could carry capacity of two tons of material. Unloading at the chipper can be


done only when the chipper is operational. At the Woodyard they had capacity to

unload a maximum of six trucks at a time. Unloading of a truck required about 1.5-2

hours. For all the material handling costs contract labourers were employed who

were paid on piece rate basis. Labour contractor were paid Rs 10 million for the

material handling of wood.

Hence, handling of trucks carrying heavy logs of wood was one of the major

areas of concern for the Company. This lead to a daily problem of trucks standing in

long queues waiting till morning for their turn to come.

2.4 MAINTENANCE

In the actual pressurized environment of day to day operations it was difficult

to understand how decisions were taken by the various departments, how they

interacted with each other .There was no material accounting at the Woodyard.

Truck arrival pattern would change drastically on a day to day basis. Production

personnel also changed their chipping schedules frequently on a day to day basis.

Production personnel also changed their chipping schedules frequently during the

day and rarely followed the schedule that they would have given to the Woodyard

personnel.

Thus there was no maintenance regarding the chipper schedule, truck arrival

pattern, Woodyard material accounting problems and if the Company targeted

increased production this would lead to the problems like mismanagement of all the

activities as already when the production is 250 MT long queues of trucks keep

waiting for their turn and in return they are demanding for more price of their wood.

In addition there is no maintenance for High Inventory which in turn would lead to

loss of production due to reduction in cellulose content .Hence maintenance of the

logistics problem would keep a check on the various issues arising and would keep a

quality control check on all the variations occurring due to deviations occurring.

3. ADDRESSING THE PROBLEM

3.1 UNDERSTANDING THE SITUATION


Understanding the ongoing situation would be the first priority as it would help

make a complete view of the system and it would help as

- Understanding the complete situation.

- Overview of actually what is happening.

- Making note of all the areas of problems concern.

- Having actual facts and figures collected.

All the above would help in making a note of real situation going around in the

Company.

3.2 MEETING VARIOUS DEPARTMENTS PERSONNEL

Managing effective logistics involved coordinating with various departments.

Unless we got involve all of them, we would not be able to make any headway.

Woodyard personnel were managed by procurement personnel, the

Woodyard was managed by stores personnel and the chip was managed by

production personnel. We should involve maintenance personnel to replace blunt

knives with sharpened knives at the chipper, which affected the daily chipper

schedule.

3.3 SUPPLY CHAIN MANAGEMENT INITIATIVE

Apart from the above two perspectives, the company also has to face

pressures on the price front. With the opening of the economy the RG pulp market is

quite vulnerable to changes and as the custom duty on rayon pulp has reduced, this

has affected the price realization at the market place. So in future if the capacity

would increase up to 500 MT it would pose focus on below points.

3.3.1 Managing logistics of incoming material

With the increased capacity, the company has to procure more material and

manage traffic of about, on average 150 trucks on a daily basis.

3.3.2 Managing multiple products and multiple grades


Demand in the RG pulp market may decrease further so the Company will

have to look at alternative markets like paper industries, pharmaceutical industry and

textile industry.

3.3.3 Managing logistics so as to reduce inventory and handling related

costs and simultaneously improve customer service

Since currently company is holding high amounts of inventory of 6 months so

it is also incurring high handling costs above 10 million.

3.4 CONDUCTING WORKSHOPS FOR SENIOR & JUNIOR MANAGERS

As there is no coordination among the various departments’ personnel

therefore conducting workshops might be helpful for binding them in one group and

shifting their focus towards the company’s problems and its targets.

It would make them understand supply chain management, procurement,

manufacturing, marketing, and corporate planning.

3.5FOCUS ON THE PRIMARY ACTIVITIES OF VALUE CHAIN

Making all the departments understand the importance of various activities

involved in value chain will give them insight as

- Planning for inbound logistics of wood

- Raw material Mix

- Inventory Planning

- Coordinating inward movement of wood with chipping schedule

- Planning for outbound logistics of finished goods

- Supplying of pulp to various other industries like textile, paper

and pharmaceutical.

- Managing manufacturing and marketing interface

This would involve examining various ranges of issues involved in managing multiple

products and grades from manufacturing and marketing angles.

3.6 SIMULATION EXERCISE


It would manually simulate a day’s activity and would require participants

which again will help them bind so that they coordinate among themselves.

Simulation would help in calculating the various drawback areas like waiting of truck

at all resources and calculating the costs of all the materials bought from Woodyard

by tractors.

3.7 FOCUS AREAS

While focusing on above aspects we would also like to focus on the some

major aspects. As on validation of this data, expansion would be a much easier

phenomenon

- Invest in one more weigh bridge

- Invest in two more chipper

- Increase silos capacity for chips

- Invest in two more special equipments

- Reduce the time required to replace blunt knives

- Invest in integrated information system


Question No. 2

What options exist? What would you recommend? Why?

Solution

In the beginning of the fiscal year 1997, the government slashed custom duty

on rayon pulp from 25 to 10 per cent. Subsequently the international pulp prices

dropped by about 40% putting the company under tremendous pressure. So the

company not only had to gear up for doubling the production level, it also had to cut

its costs substantially.

To increase the Rayon production the first focus would be on the wood

consumption i.e. Wood Logistics problem as the company was holding about 6

months of wood stock at its Woodyard.

Various options which exist are:

- Maintaining fixed proportion of wood (60:40)

- Fixing the contract with the Suppliers

- Removing the Quality Check Personnel

- Maintaining good relations with suppliers

- Invest in one more weigh bridge

- Invest in two more chippers

- Invest in two more special equipments

- Increase silos capacity for chips


- Use better quality of knives

- Reducing the time required to replace blunt knives

- Invest in integrated information system

- Accounting of the material at the Woodyard

- Source Casuarina wood from villages of Karnataka

- Less variation in truck arrival pattern

- Less variation in chipping schedule

- Proper Interaction with the various departments’ personnel

- Maintaining low inventory

- Avoiding maintaining high inventory

- Maintain proper lead time and Reorder cycle with the Suppliers

- Reduce the material handling costs with the contract labourers

- Reduce the truck waiting time at all the resources (Weigh Bridge,

chipper and Woodyard)

- Reducing the extra loading and unloading costs by tractors.

- Conducting workshops for managers

- Form in charge of various different departments and give them

incentives

- Planning for inbound logistics of wood

- Planning for outbound logistics of wood

- Managing manufacturing and marketing interface

Above all are the various options which exist for the increase in the production

level.

RECOMMENDATIONS

Various Recommendations that exist are:

Maintaining fixed proportion of wood (60:40)

The proportion varied from month to month on the basis of factors like

availability of wood. In the last four years the proportion of Eucalyptus had never

gone below 50% but at the same time there was a month when the company

operated with a high proportion of eucalyptus as 70%.

Fixing the contract with the Suppliers


As the suppliers want to be paid on the basis of fixed prices per ton of wood

irrespective of the moisture content in the incoming wood. This would help as

follows:

- Reducing the cost by removing the Quality Check Personnel

- Help maintain good relations with suppliers

- Avoiding the cost of getting wood from far off places

Managing multiple grades and products

As the company would like to expand its RG pulp manufacturing, the demand of the

product may get reduced hence the company should look at other alternatives like

paper pharmaceutical and textile industries.

Holding low inventory (not more than 3 months)

As the cellulose content in the wood did get affected with time and the plant yield

usually would be lower if the wood was stored for a longer period of time. Hence high

holding inventory will lead to

- High carrying costs

- High order costs

As in the first 3 months the moisture content would reduce at rate of 4-5%.So

inventory must not be kept for more than three months.

Conduct Workshops

Since there is no coordination among the various departments’ personnel so

conducting workshops would be helpful to understand the concept of

- Supply chain management

- Procurement

- Manufacturing

- Marketing

- Corporate Planning


Moreover it will bind all the members together and help them focus on

company goals and targets.

Invest in Integrated Information System

Such a system would ensure that each and every entity in the system would

have knowledge on real-time basis about the status of the system. This will help all

departments to make optimal decisions on a real-time basis.

Invest in one more weigh bridge, two chippers and special equipments

As a result of the Data Sheets for Simulation Exercise following problems

occurred

o Truck waiting at Weigh Bridge, chipper and wood yard

o Extra loading and unloading costs

o Increase in production would be an impossible task

Hence investing in two chippers will help as

o No more waiting queues for trucks

o Will reduce extra material costs of contract labourers

o Will reduce the cost of 100 per ton

o More quantity of wood can be cut easier

Following is the Scheduling of two chippers of Eucalyptus and Casuarina

SCHEDULE

EUCALYPTUS SCHEDULE

Chipper No. 1

7:00 AM to 1:30 PM

1:30 PM to 4:30 PM

4:30 PM to 9:30 PM

9:30 PM to 11:30 PM

11:30 PM to 5:30 AM

5:30 AM to 7:00 AM

Chipper 1 Eucalyptus

Operation Close Operation Close Operation Close

6.5 Hour 3 Hour 5 Hour 2 Hour 6 Hour 1.5 Hour


EUCALYPTUS SCHEDULE

Chipper No. 2

5:00 AM to 11:30 AM

11:30 AM to 2:30 PM

2:30 PM to 7:30 PM

7:30 PM to 9:30 PM

9:30 PM to 3:30 AM

3:30 AM to 5:00 AM

Chipper 2 Eucalyptus Operation Close Operation Close Operation Close

6.5 Hour 3 Hour 5 Hour 2 Hour 6 Hour 1.5 Hour

CASUARINA SCHEDULE

Chipper No. 1

8:00 AM to 1:00 PM

1:00 PM to 4:00 PM

4:00 PM to 7:30 PM

7:30 PM to 10:30 PM

10:30 PM to 1:30 AM

1:30 AM to 8:00 AM

Chipper 1 Casuarina Operation Close Operation Close Operation Close

5 Hour 3 Hour 3.5 Hour 3 Hour 3 Hour 6.5 Hour

CASUARINA SCHEDULE

Chipper No. 2

11:00 AM to 4:00 PM

4:00 PM to 7:00 PM

7:00 PM to 10:30 PM

10:30 PM to 1:30 AM

1:30 AM to 4:30 AM

4:30 AM TO 11:00 AM

Chipper 2 Casuarina

Operation Close Operation Close Operation Close

5 Hour 3 Hour 3.5 Hour 3 Hour 3 Hour 6.5 Hour

Investing in one Weigh Bridge will help as

- Constant arrival pattern of trucks and outgoing can be maintained


Investing in special equipments will help as

- More chippers require more special equipment to unload the truck at

the chipper.

- Trucks can be sent directly to the chipper if the other chipper is on rest.

REVISED SIMULATION EXERCISE

Truck Monitoring Sheet


Eucalyptus

Casuarina

Truckedart time dept time trucked

art time

dept time

E1 06:00 06:34 E2 06:15 06:49 E3 06:30 07:04 E4 06:45 07:19 E5 07:00 07:34 E6 07:15 07:49 E7 07:30 08:04 E8 07:45 08:19 C1 08:00 08:34 C2 08:15 08:49

Weighbridge Monitoring Sheet

weighbridge monitoring sheetweighbridge operations-1 weighbridge operations-2


trucked

truck status

Start of operatio

ns

End of operatio

nstrucke

dtruck status

Start of operatio

ns

End of operatio

nsE1 L 06:00 06:10 E1 UL 06:30 06:34E2 L 06:15 06:25 E2 UL 06:45 06:49E3 L 06:30 06:40 E3 UL 07:00 07:04E4 L 06:45 06:55 E4 UL 07:15 07:19E5 L 07:00 07:10 E5 UL 07:30 07:34E6 L 07:15 07:25 E6 UL 07:45 07:49E7 L 07:30 07:40 E7 UL 08:00 08:04E8 L 07:45 07:55 E8 UL 08:15 08:19C1 L 08:00 08:10 C1 UL 08:30 08:34C2 L 08:15 08:25 C2 UL 08:45 08:49

Chipper Operation Sheet

For Eucalyptus

chipper operations sheet Eucalyptus EucalyptusChipper Queue Chipper 1 Operation Chipper 2 Operation

trucked

time of

joining

time of

leaving truckedStart of

operationsEnd of

operationstrucke

d

Start of operation

s

End of operation

s E1 06:10 06:30 E2 06:25 06:45 E3 06:40 07:00 E4 06:55 07:15 E5 07:10 07:30 E6 07:25 07:45 E7 07:40 08:00 E8 07:55 08:15

For Casuarina

Casuarina Casuarina Chipper 1 Operation

Chipper 2 Operation


TruckedStart of operations

End of operations trucked

Start of operations

End of operations

C1 08:10 08:30 C2 08:25 08:45

Chipper Wood Management Sheet

chipper wood management sheetChipper 1

Chipper 2

Time Slot

Wood received Directly

Wood received from Woodyard

Time Slot

Wood received Directly

Wood received from Woodyard

Wood yard Management Sheet – I

Woodyard queue

Unload-1 Operations

Unload-2 Operations

Truck id

Start of Op.

End of Op. Truck id

Start of Op.

End of Op.

E1 06:10

Wood yard Management Sheet – II


Unload-3 Operate

Unload-4 Operate

Unload-5 Operate

Unload-6 Operate

Truck idStart of Op.

End of Op. Truck id

Start of Op.

End of Op. Truck id

Start of Op.

End of Op. Truck id

Start of Op.

End of Op.

Question No. 3

In what way the simulation exercise suggested by Saloni Yashpal would help APR in

attacking the wood logistics problem?

Solution

The Simulation Exercise suggested by Salnoi Yashpal is:


Encalyptus Truck Data Casuarina Truck DataTruck ID

Arrival Time Departure Time

Truck ID

Arrival Time Departure Time

ID E1 06:00 07:48 ID E2 06:10 07:51 ID C1 06:25 08:40 ID C2 06:40 07:45ID E3 07:00 07:45 ID E4 07:20 09:37 ID E5 07:30 08:02 ID E6 07:40 08:19 ID C3 07:55 08:36 ID C4 08:10 10:05

Weighbridge Monitoring Sheet


Weigh Bridge Queue Weigh Bridge Operation

Truck IDTruck Status

Time of Joining

Time of Leaving Truck ID Truck Status

Start of Operations

End of Operations

ID E1 LOADED 06:00 06:08

ID E1UNLOADED 07:38 07:45 ID E1 UNLOADED 07:45 07:48

ID E2 LOADED 06:10 06:18 ID E2 UNLOADED 07:48 07:51 ID C1 LOADED 00:00 06:35 ID C1 UNLOADED 08:20 08:24 ID C2 LOADED 00:00 06:50

ID C2UNLOADED 08:35 08:36 ID C2 UNLOADED 08:36 08:40

ID E3 LOADED 07:00 07:12


ID E4 LOADED 07:20 07:32 ID E4 UNLOADED 09:32 09:37ID E5 LOADED 07:30 07:32 ID E5 LOADED 07:32 07:40


ID E6 LOADED 07:40 07:51 ID E6 LOADED 07:51 07:59


ID C3 LOADED 07:55 08:02 ID C3 LOADED 08:02 08:12 ID C3 UNLOADED 08:32 08:36ID C4 LOADED 08:10 08:12 ID C4 LOADED 08:12 08:16 ID C4 UNLOADED 10:01 10:05

Chipper Operation Sheet

Chipper Queue Chipper 1 Operation Chipper 2 Operation

Truck ID

Time of Joining

Time of Leaving

Truck ID

Start of Operation

End of Operation

Truck ID

Start of Operation

End of Operation

ID E3 07:12 07:37 ID E5 07:40 07:55 ID E6 07:59 08:14 ID C3 08:12 08:32

Chipper Wood Management Sheet

Chipper 1 Chipper 2

Time SlotWood Received Directly

Wood Received from Woodyard Time Slot

Wood Received Directly

Wood Received from Woodyard

08:00-09:00 10 07:00-08:00 30


Wood yard Management Sheet – I

Woodyard Queue Unload 1 Operation Unload 2 Operation

Truck ID

Start of Op.

End of Op.

Truck ID

Start of Op.

End of Op.

ID E1 06:08 07:38 ID E2 06:18 07:48

Wood yard Management Sheet – II

Unload 3 Operation Unload 4 Operation Unload 5 Operation Unload 6 OperationTruck ID

Start of Op.

End of Op.

Truck ID

Start of Op.

End of Op.

Truck ID

Start of Op.

End of Op.

Truck ID

Start of Op.

End of Op.

ID C1 06:35 08:20 ID C2 06:50 08:35 ID E4 07:32 09:32 ID C4 08:16 10:01

EXPLANATION OF SIMULATION EXERCISE

After filling all the sheets of the simulation exercise we come up with certain points

which are as follows:

As per the table -2 (truck arrival pattern on a typical day) 13 trucks should be

there in between 6:00 AM to 8:00 AM, but this simulation exercise tells us that

only 9 trucks can go inside the premises which show that work is not going

according to the standard.

Because we are not able to match the actual arrival pattern with standard

arrival pattern, which creates a problem of waiting (queue) the truck outside

the factory which also increases our Handling & Extra Material Handling Cost.


In Weigh Bridge Monitoring Sheet we can see that most of the trucks stand in

queue. And because trucks have to wait in queue the supplier is asking, to

increase the cost.

In Chipper Wood Management Sheet we can see that there is only one truck

of casuarina on slot of 8:00 AM to 9:00 AM. So, it will incur the Extra Material

Handling Cost because we have to supply the material by the help of tractor

and a single tractor carries only 2 Tons of wood and the extra material

handling cost will be 200 Rupees.

This simulation exercise helps APR in attacking the wood logistic problem by

describing the loop holes in the company.

5. RESULT OF THE STUDY


By following the above value chain the company will be able to focus at each

and every perspective from the incoming of raw materials to marketing and services.

Inbound Logistics can be maintained by sourcing the material from AP, UP,

Karnataka. Operations maintenance can be done by good coordination among

various departments’ personnel so that any delay or early arrival can be handling

accordingly. Outbound logistics can be maintained by supplying the material to

textile industries, paper and pharmaceutical industries. Marketing interface would

help managing multiple products and grades and accordingly they can be selling to

different customers. Service can be maintained by supplying Rayon Grade Pulp with

short lead time as it would help in incurring fewer costs. On time delivery will help

making customers satisfied and will out step the competitors.

Procurement will help if suppliers are contracted at fixed prices per ton of

wood and maintain good relations with them as there is shortage of wood in AP. By

developing our technology like chipper, weigh bridge, special equipment will help in


fastening the chipping schedule which in turn would help in quick manufacturing and

meeting the demands of customers investing in Integrated Information System will

give complete real time basis which would help make optimal decisions. H R

Management will be helpful if all the heads of departments are motivated

continuously and there is good coordination among them.

BIBLOGRAPHY


“AAI paper recycling unit takes off”, The Times of India, New Delhi (3 October

2009) toireporter @ timesgroup . com

“The Drivers of Supply Chain Management Competitive Advantage” Puff file

Presented by ‘Dr. John (Tom) Meltzer, presented at the CHA 2006 (30 January

2006)

David Fogarty and Sunland Creech. “Paper Giant Promises Green Curbs On

Expansion”, Planet Ark, Australia (11 September 2009)

Handan Kumar Das. “Drivers of Supply Chain Management” Puff file, (07

November 2008.

“Big mills turn to waste paper” Business Line, New Delhi (03 July 2009).

A. K. Sharma & Et Al, M. E. Khan, Sunita Chatham.”Cost-effective production of

handmade paper through recycling of shredded currency waste of Reserve Bank

of India” IPPTA Vole: 21 Issue: 3 pp: 111-117 (July 2009).

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business in India”, IPPTA Vole: 21 Issue: 3 pp: 101-105 (July 2009).

“Ballarpur Industries”, Puff file (29 March 2008).

“Audited consolidated financial results”, Acanthi Group Company, Puff file, (21

September 2009).

Master Thesis. “Cutting logistic costs with a centralized distribution Model” puff

file, (December 2005).

Case Study of Unisom Business Solution (http://www.unisoma.com.br/en/casos-

celulose-1.php)

Supply Chain Management Overview & objective from Janet Shah.

Wood Biodegradation Division

(http://www.icfre.org/UserFiles/File/iwst/divisions/wbd/ wad .him)

Eucalyptus Tree Book from Google Book.

Karnataka Forest Division from Google Book.

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Article related to Logistic Problems from Hindu Times.

Casuarina Tree Book from Google Book.

S.G,deshmukh,” supply chain management


http://www.icfre.org/UserFiles/File/iwst/

http://www.unisoma.com.br/en/casos-celulose-1.php

http://www.unisoma.com.br/en/casos-celulose-1.php

http://www.indiaenvironmentportal.org.in/category/name-journal/ippta

http://www.indiaenvironmentportal.org.in/category/author/p-marimuthu


http://www.indiaenvironmentportal.org.in/content/cost-effective-production-handmade-paper-through-recycling-shredded-currency-waste-reserve-b



B. P. Thapliyal, K Singh, R. M. Mathur. “Challenges confronting Indian paper

industry in changing scenario” IPPTA Vole: 21 Issue: 3 pp: 95-99. (July 2009).

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(July 2009).

Adam and JR. Ebert. “Production and Operations Management” Unit IV.

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Qiu Rongzu. “College of Material Engineering” Fujian Agriculture and Forestry

University”, P.R. China. (05 July 2007).

Esko Mikkonen. “Dept of Forest Resources Management, University of Helsenki,

Fin-00014, Finland. (24 August 2004).

John T Mentez,”supply chain management”pdf file

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S.G, deshmukh. ”Supply Chain Management”.

Chem...J,”Theory of supply chain management”pdf

A.teung,managing quality, “Effective in supply chain,”pdf




Report on "Supply Chain Initiative in APR Limited"

Documents

supply chain initiativeat

strategic role of supply

limited page

required wood

types of wood

tons of wood

number of wood contractors

material handling of