LOGISTIC SOLUTIONS FOR ITC

Logistic needs for big company like ITC

1. LOGISTIC SOLUTION FOR ITC MJ LOGISTICS SERVICES LIMITED PRESENTED BY- SAURAV MANN 14BSP2109

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. 2

3. MJ LOGISTIC SERVICES LIMITED M.J. Logistic Services Ltd. offers complete storage, Transportation, distribution, and C old chain enabled solutions MJ Warehousing began offering quality warehousing and distribution services at Mandoli (Delhi NCR) in 1993. 3

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 4

5. MJ’S CLIENTS MJ has mainly 3 kind of clients Auto and Light Engineering Food & FMCG Cold Chain 5

6. MJ’S OPERATING LOCATIONS MJ operates in North India states it covers are Punjab Haryana H.P U.K Delhi 6

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 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 ) 8

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. 9

10. OPERATIONS OF MJ AT WAREHOUSE I. TRUCK REPORTING Gate entry SIT Time of reporting TIT II. OFFLOADING Dock selection Unloading 10

11. ORGANIZATIONAL STRUCTURE OF TEAM MJ LOGISTICS LIMITED Kind of Workforce works in MJ Logistic Services Limited 11

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 12

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 13

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. 14

15. 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. 16

17. 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.

18. 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 = 4886.25 FIG.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

19. 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

20. 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

21. 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

22. 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

23. 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.

24. 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 . 25

26. PRODUCTIVITY OF WORKFORCE FOR MARCH 2015 26

27. EFFICIENCY OF WORKFORCE FOR MARCH 2015 27

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 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 . 29

30. 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:- 31 A-Class Items :- Bingo Teda Meda Biscuits Glucose Noodles Masala Juice Mixed Match Box Ship Agarbattis Mangaldeep Mogra PCP Vivel Alovera Confectionary Toffee choostrawberry RTE Dal Bukhara Pasta Masala   B-Class Items :- Bingo Tangles Masala Biscuits Sunfeast Marie Light Noodles Chinese Masala Juice Pineapple Match Box Home light Agarbattis Mangledeep Rose PCP Vivel Green tea Confectionary Mint O gol orange RTE Muglai Panner Pasta Tricol Pasta Masala   C-Class Items :- Bingo Tangle Salted Biscuits SF salted Chilli Noodles Classic Masala Juice Jamun Match Box Homelight Jar Agarbattis Mangaldeep Sandal PCP Vivel CR RF rose Moisturiser Confectionary Natkhat Mango RTE 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. 32 Fast Moving Bingo Noodles Slow Moving Pasta Confectionary Personal Care Products (PCP) Juice Agarbattis Ready 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. 33 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. 34

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