Logistic needs for big company like ITC

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
 Cold 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.
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26. PRODUCTIVITY OF WORKFORCE FOR MARCH 2015
26
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
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
0
10
20
30
40
50
60
70
80
90
100
PRODUCTIVICTY
MONTH OF MARCH 2015
PRODUCTIVITY FOR THE MONTH OF MARCH 2015

27. EFFICIENCY OF WORKFORCE FOR MARCH 2015
27
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 0.8 1.6 0.7 0.8 0.8 1.5 1 0.5 1 0.6 0.6 0.6 0.6 0.6 0.8 1.3 0.6 0.5 0.7 0.6 0.8 0.5 1.1 0.6 0.5 0.6 0.5 0.7 0.7 1.2 0.7
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
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
EFFICENCY
MONTH OF MARCH 2015
EFFICIENCY FOR THE MONTH OF MARCH 2015

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.
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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:-
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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.
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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.
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