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  1. 1. A Case Study on ChangingA Case Study on ChangingBusiness Environment at Cochin Port TrustBusiness Environment at Cochin Port Trust06/19/13 1M.Tech. Mechanical Engineering (Production and Industrial Engineering)Department of Mechanical Engineering.Mar Athanasius College of Engineering.Kothamangalam.Presented ByMuhammed Salih.K
  2. 2. Table of contents1. IntroductionInfrastructure2. Organizational StudyLay out & History of Cochin Port Trust4. Changing business environmentSupply chain management & Role of transportation in SCManagement and Ownership PatternOrganizational Structure and Department of CPTReport on Functional Areas of CPT & Summery06/19/13 2Taguchi PhilosophyCause and Effect diagram3. Proposed material handling equipmentAnalysing the causesDiscussion and SolutionConclusionPublication detailsReferences
  3. 3. Supply Chain Management SCM• The strong chain of such competent players to supply goodsand service to the customers.• Effectively, Efficiently and Economically.• Transportation has an important impact on retail price of acommodity. It has a large impact on SC responsiveness andefficiency.06/19/13 3
  4. 4. Lay out of Cochin Port TrustLay out of Cochin Port Trust06/19/13 4
  5. 5. One of the Major Ports in IndiaModern port built by Sir Robert Bristowbetween 1920-1940.Declared as a major port on 29thFebruary 1964under the MPT Act 1963One of the Major Ports in IndiaModern port built by Sir Robert Bristowbetween 1920-1940.Declared as a major port on 29thFebruary 1964under the MPT Act 1963History of CPT06/19/13 5
  7. 7. ChennaiColomboTHE COCHIN OPPORTUNITYCPT advantage06/19/13 7
  8. 8. Ownership Pattern06/19/13Cochin port is an autonomous body under the Government ofIndia and it is managed by a Board of Trustees with membersappointed by Govt. of India. The chairman of the Board act asChief executive Officer. The Board of Trustees consists of 18members.8
  9. 9. Departments of CPT06/19/13 9• Administration Department• Finance Department• Traffic Department--Berth allocation, Cargo handling• Marine Department--Pilotage, Water side operation, Dredging• Mechanical Department
  10. 10. Functional Areas of CPT06/19/13• Mattanchery Wharf [Berths Q 1 to Q 4]• Ernakulam Wharf [Berths Q 5 to Q 10]• Cochin Oil Terminal (COT)• North Tanker Berth (NTB)• South Tanker Berth (STB)• Single Point Mooring (SPM)• Dry dock workshop 10
  11. 11. SUMMARY OF STUDYFinancial performance06/19/13 11
  12. 12. Capacity UtilizationNO Type of Equipment Availability Capacity in Tones1Heavy Duty ReachStacker1 452 Mobile Crane 1 103 Forklift Trucks 20 306/19/13 12Source: National Conference on Ports and Shipping2011 Background paperPoor efficiency andResponsiveness of SC
  13. 13. Port performance06/19/13 13Source: Administrative Report CPT 2010-2011Distribution of Cargo handled 2010-2011Dry bulk 10.27 lakh tons(1 MT)Break bulk 1.1 lakh tonsType Avg TRT Avg PBDDry bulk 5.98 3.99Break bulk 3.74 0.99
  14. 14. Shipping Statistics at CPT06/19/13 14The average turnaround time of ships having cargo workincreased to 2.20 days during the year from 2.08 days in thepreceding year.Need to achieve strategic fit in SC
  15. 15. Market Condition06/19/13 15Long run Only nominal profitReduced TRT improves theresponsiveness of SC
  16. 16. Proposed Material handling equipmentDescription of crane06/19/13 16Details 120 HMCMaximum reach required 34 mGrab weight 20 TLoad/ move at 11 to 19 m 75 TLoad/ move at 34 m 39 TAverage load/move(Excluding the grab weight) 37 T/grabHandling rate/hour 37 * 20 = 740 T/ hr.Equipment efficiency 85%Handling capacity / hour 740* 0.85 = 629 T/hourHandling capacity / day 629 * 21= 13209 T/dayAnnual handling capacity 13209 * 300 = 3,989,118 i.e. 3.98 MT
  17. 17.  AssumptionsOn stream days considered in a year 302 daysEquipment availability per day 21 hoursMaterial handling equipment efficiency 85%No cycles per crane 20 Tariff for mobile crane06/19/13 17Sl. No Type of Cargo Rate per Ton @ Rs.1 Dry Bulk50.02 Break Bulk (steel)40.03 Break Bulk (Others)120.0
  18. 18.  Operating Cost06/19/13 18Si No Particulars Working 120 T HMC withGrab1 Capital Cost 2352.5 lakhs2Operating and MaintenanceCost2. a Fuel4000 hours(70ltrs/hour@Rs.63) 176.4 lakhs2. b Repair and Maintenance Cost 5% of Capital Cost 117.625 lakhs2. c Insurance 1% of Capital cost 23.52 lakhs2. d Depreciation10.34% on capital cost(As per normsPrescribed inCompanies Act)243.24 lakhs3 Other expenses 5% of Capital Cost 117.625 lakhs4 Total Cost 678.41 lakhs
  19. 19. Operational Feasibilityreak bulk handled last year= 10.27 lakh ton=1. 027 MT=1027000 tonevenue from Cargo handling= 1027000 X 120=12.32 Crore per annumperating Cost of Crane= 6.78 Crores per annumalance on hand=5. 54 Crore per annumapital cost= 23.52 croreshe expected payback period= 4.3 years06/19/13 19
  20. 20.  Reduction in average turnaround timePresent average turnaround time= 5.98 daysPresent average turnaround time= 5.98 daysCapacity of crane= 13209 T/hourNo of ships entered with dry bulk 2010-2011= 59Total ton of cargo handles in 2010-2011= 1027000 tonNo of days required for unloading cargo=1027000/13209=77.75 DaysImproved average turnaround time=77. 75/59=1.32 DaysImproved average turnaround time=77. 75/59=1.32 DaysCapital cost required = 23.52 CroresCapital cost required = 23.52 Crores06/19/13 20
  21. 21. Outlay of 11thPlan ( Projected GBS in Cores)SCHEMES Current PriceDG (Shipping) 58.35 66Indian Maritime University 262.25 300DG (Light house and light ships) 132.62 150IWT Sector 543.75 615Ship Building and Repairs 150.13 170Major Ports 1818.68 2056.98ALHW 235.51 266.37Others* 1269.49 1425.66GRAND TOTAL 4464.96 505010thPlanSource:11thFive year plan planning commission of India06/19/13 21
  22. 22. Changing Business Environment06/19/13 22Companies has to adopt the following strategiesExpansion of BusinessAcquisition on new CompaniesMerging with other CompaniesFormation of Strategic AllianceCompanies has to adopt the following strategiesExpansion of BusinessAcquisition on new CompaniesMerging with other CompaniesFormation of Strategic Alliance
  23. 23. partment Hierarchies Dry dock and Workshop06/19/13 23
  24. 24. Departments06/19/13 24
  25. 25. Defining the problem The Taguchi Philosophy06/19/13 25
  26. 26. Cause and Effect Diagram06/19/13 26
  27. 27. Poor Utilization of Natural Resources06/19/13 27
  28. 28. Dry dock Statistics 2010-11.06/19/13 28NAME OF VESSELNO OF DAYSDOCKEDOWNEREDBY1 Jewel of Muscat 52 Coramandel Supporter VII 493 M.V.Vrindha 104 M.V.Balavan 231 PortTotal Dock Utilizations in Days 295Absence of SOP
  29. 29. Poor Employee Engagement06/19/13 29None of the welders are certified. So underwater welding of vesselsshould be done by third party.Absence ofQIP& Motivation
  30. 30. Poor Employee Engagement06/19/13 30Absence of Motivation Absence of QIP
  31. 31. Little Mechanization & ManagementMechanization•Dry dock still uses the oldmanual method for dockingwhich require minimum of75 labours.•More chances for accidentwhile docking the vessels.Engineers are not confidenton this method .Management06/19/13 31
  32. 32. Creating Unemployment06/19/13 32
  33. 33. Refined Cause and Effect Diagram06/19/13 33
  34. 34. Discussion and Solution06/19/13 34 Insufficient material handling equipment in port operationis the major factor for current port performance. Cochin port Trust could not collect single money from the11thfive year plan by submitting a valid project report. The management of Cochin port trust could not identify thecrises in financial situation that they are going to face.
  35. 35. Discussion and Solution06/19/13 35 The Port Trust could not be able to create employmentopportunity for the last 15 years. For any organization want to sustain in this type of businessenvironment should possess a strong quality team inside theorganization. No organization can be profitable with unsatisfied employeesand bad working culture.
  36. 36. Modified Organisational Chart06/19/13 36Present Structure on 1964Present Structure on 1964
  37. 37. Conclusion06/19/13Future of Cochin Port Trust is depended on the business strategyto be adopted by Port authorities . At the present situation theissues identified in this study should be addressed before makinga step on it .37
  38. 38. Publication of Work06/19/131. The work is published in International Journal of Engineering Scienceand Innovative Technology . Paper ID: IJESIT1909201201_4452. The work is published in IOSR Journals International Organization ofScientific Research. Paper ID: H3109238
  39. 39. ReferencesCPT Administrative Reports 2005-11Eleventh Five Year Plan Volume III Planning Commission Government of IndiaWeb site Cochin Port trustText Book : Total Quality Management by S.M Sundara Raju,Text Book : Research Methodology by Paneer Selvam06/19/13