Ware House Management Anaysis At Reliance Energy

1. Summer Internship Project
on
“IMPLEMENTATION OF WAREHOUSE
MANAGEMENT SYSTEM”
Name : Vilas Bhagwan Adole.
Roll No.: MMS B-01
Specialization: Operations Management
DR. V. N. BEDEKAR INSTITUTE OF MANAGEMENT
STUDIES, THANE

2. ORGANIZATION STRUCTURE

3.  To reduce the delay caused in material replenishment to divisional
stores.
 To reduce the delay caused in issue of material to users resulting in
job delays.
 To optimize the utilization of resources in terms of time, efforts and
logistics.
 To optimize utilization of storage space.
 To identify material locations with no trouble by other store personnel.
 To ensure availability of space for disaster material in the monsoon
season.
OBJECTIVES

4. 1. Identification of problems
2. Selection of problem
3. Defining problem
4. Analysis of problem
5. Identification of causes
6. Finding the root causes
7. Data analysis
8. Developing the solution
9. Foresee probable resistance
10. Trial implementation & check
performance.
11. Regular implementation
12. Follow up & review
12 Steps Problem Solving

5. Problems Identified.
Sr. No PROBLEMS
1 Difficulty in defining lot size A
2 Non-standard labeling / tagging for all materials in central stores B
3 Material issued from stores to users is delayed in transit A
4 Lack of location management in central stores A
5 Open new yard has no boundary wall, street dogs and their filth/bite issue C
6 Virtual stock out A
7 "One material one location" not followed at Central Stores B
8 Replenishment, Issue of material and perpetual stock taking consumes more time A
9 Size Mismatch in issue of Safety Shoes to Employees as per SAP Record A
10 Non-standard packaging A
11 Space Management C
12 Cable pieces not issued A
13 Piling up of non-moving inventory B
14 Unloading hazard due to tight stacking of Cable Drums on vendor transport A
15 Difficult to take stock for certain items. (Sand, Gravel ) A
16 Distorted consumption pattern due to hoarded stock at Users end. A
17 Material issued by users is not lifted by them. B
18 Command processing slow in desktop PC's. B
19 Infrastructure not available for FIFO maintenance C

6. Sr.
No.
PROBLEMS THEME
1 Difficulty in defining lot size PROCESS
2 Material issued from stores to users is delayed in transit PRODUCTIVITY
3 Lack of location management in central stores PRODUCTIVITY
4 Virtual stock out PROCESS
5 Replenishment, Issue of material and perpetual stock taking consumes more time PRODUCTIVITY
6 ‘Size Mismatch’ in issue of Safety Shoes to Employees as per SAP Record PROCESS
7 Non-standard packaging WASTAGE
8 Cable pieces not issued WASTAGE
9 Unloading hazard due to tight stacking of Cable Drums on vendor transport PRODUCTIVITY
10 Difficult to take stock for certain items. (Sand, Gravel) PRODUCTIVITY
11 Distorted consumption pattern due to hoarded stock at Users end. PRODUCTIVITY
SELECTION OF THE PROBLEM
Tools Used:
 Stratification – ‘ABC’ Classification
 Theme Based Analysis
 Tree Diagram
 Rating Method

7.  RATING METHOD FOR SELECTION OF PROBLEM
Sr.
No Problems
PN VA SB UG JJ TOTAl
1 Material issued from stores to users is delayed in transit 7 7 7 6 7 34
2 Lack of location management in central stores 7 6 7 8 7 35
3
Unloading hazard due to tight stacking of Cable Drums
on vendor transport
6 7 8 7 6 34
4
Replenishment, Issue of material and perpetual
stock taking consumes more time
8 8 9 9 8 42
5
Distorted consumption pattern due to hoarded stock at
Users end.
6 8 7 7 7 35
6 Difficult to take stock for certain items. (Sand, Gravel) 6 7 6 6 7 32

8. REASONS FOR SELECTING THE PROBLEM
•From central stores, materials are distributed to divisional stores as per their
requirements , Replenishment ,Receipt, issue of material and Perpetual stock
taking is cumbersome and time consuming
•Non-availability of updated locations data leads to more time in identifying the
material’s location.
•Non-identification of bin locations leads to under-utilization of space.
_________________________________________________________________________________
_IMPACT OF THE PROBLEM
•Delay in issue of material to users resulting in job delays.
•Excess material retrieval time delay in material delivery.
•Shortage of space for excess material in the monsoon
season.
•Wastage of excess resources in terms of time, efforts and logistics.
•Identification of material locations by other store personnel is difficult.
•PROBLEM STATEMENT
“Replenishment, Issue of material and perpetual stock taking
consumes more time”.
___________________________________________________________________________________________________________________________________________________________________________________________
DEFINING THE PROBLEM

9.  ANALYSIS OF PROBLEM
 4W-1H
4W – 1H QUESTION ANSWER
What? What is the problem?
Replenishment, issue of material and
perpetual stock taking consumes more
time
Where? Where is the problem?
At all central and divisional
Stores of Mumbai distribution
Area.
When? When does it happen?
While replenishment, issue of
material, perpetual stock taking and
receipt of material.
Who? Who is affected? Store personnel, Users
How? How did we get to know?
Daily perpetual taking, Replenishment
process and Issue of material take
more time.
Grievances from users due to delay in
issue.
Unavailability of space for excess
material at divisional stores. Return of
excess material to stores.

10.  IDENTIFYING CAUSES & ANALYSIS OF ROOT CAUSES
Tools Used:
Brainstorming
Cause & Effect Diagram
Sr. No. Causes
Validation
(Y/N)
Remark
1 No real time location’s data updating in the system Y
Process can be developed to
update the data in the system.
Can be addressed and resolved
2
Updating location’s data in excel sheet by diff. persons is not
done on real time basis.
Y Can be addressed and resolved
3 Data is not accessible to other store personnel’s. Y Can be addressed and resolved
4 Mistake in replenishment report N
Cause of Human Error- Need of
training
In the scope of HR Dept.
5 Manual generation of report with the help of excel sheet Y
Process can be re-defined
Can be resolved
6 Material put on wrong location N
Illiteracy of labours- beyond our
scope
7 Casual Attitude of labours N
Attitude of the labours can’t be
attack at single time
In the scope of HR Dept.
8 No labels on material packing N
Some materials are found without
labels
In the scope of vendor
9 Shortage of space N
To be addressed by Top
Management- Beyond our scope
10 Excess of material N Beyond our scope
11 Temporary arrangement of material N Beyond our scope
12 Change in packaging size of material N
Cause of change in vendor- in the
scope of vendor

11. Sr.
No.
Causes
Validation
(Y/N) Remark
1
No real time location’s data
updating in the system Y
Process can be
developed to
update the data in
the system.
Can be addressed
and resolved
2
Updating location’s data in excel
sheet by diff. persons is not done
on real time basis
Y
Can be addressed
and resolved
3
Data is accessible to authorised
persons only
Y
Can be addressed
and resolved
4
Manual generation of report with
the help of excel sheet
Y
Can be resolved
Root Causes

12. Data Analysis
•Data of time taken for material Retrieval at MIDC store
Material Retrieval Processes Time (min.)
Receipt verification in system 2
Location Identification 10
Material Identification 1
Update report into system 2
Total time 15
0
20
40
60
80
100
0
2
4
6
8
10
12
14
Time(min.)
Processes in retrieval of material
Time (min.)
Percentage

13. •Data of time taken for daily perpetual stock taking
Perpetual stock taking on 15/06/2015(Materials 65 nos.)
Time (min.)
Report Generation 4
Location Identification 30
Material Identification 7
Counting Of material 7
Update report into system 3
Total time 51
0
20
40
60
80
100
0
10
20
30
40
50
Time(min.)
Process of perpetual stock taking
Pareto Chart
Time
Percentage

14. “Material issue and
perpetual inventory
requires more time”
Irregular data
updating in the excel
sheet
Action Required
A system needs to be defined which restrict the user to update the data of
material without entering the locations.
Store personnel
having difficulty to
identify the
locations
No Updated data of
location is available
in system
Why-Why Analysis- For The Vital Cause

15. DEVELOPING SOLUTIONS
Solution – 1
Radio-Frequency IDentification Device
Solution - 2
Linkage of Barcode with SAP for immediate material retrieval
Solution - 3
Implementation of Warehouse Management System

16. FORESEEING PROBABLE RESISTANCE
Probable Resistance
From
Reason Remedy
Employee
Unseen fears about adapting the new
module in system.
We will convince them of
the advantages of the new
system.
SAP IT Team
SAP IT Team is flooded with lot of IT
works and also engaged with other
company.
We will convince them
that WMS will be an
integrated part of SAP
system, no need to re-
design the whole system.
Finance Department
Finance dept. may perceive that
additional cost is involved in
implementing Warehouse
Management System.
We will convince them
that no additional cost is
required for implementing
WMS module in the
system.
Top Management
Substantial financial resources
required for implementing Warehouse
Management System.
We will convince them
about the cost benefits of
automation.

17. TRIAL IMPLEMENTATION
Tools Used:
PDCA Cycle
Trial implementation of WMS at MIDC store on 3rd June 2015
PDCA Activity Responsibility Date
Plan
Get the data of no. of materials, locations;
identify storage type and time required for
the processes.
Vilas Adole
03/06/2015
Do
Collected the data from store department of
actual bin locations and counted the time
required for perpetual stock taking and
replenishment process
10/06/2015
Check
Verify the physical stock with system stock
and monitoring the post implementation
activities.
18/06/2015
Act Proceed to the regular implementation
Store
department
25/06/2015

18. REGULAR IMPLEMENTATION
PDCA Activity Responsibility
Plan
Get the data of no. of materials, locations;
identify storage type and time required for the
processes.
HOD and Store
In charge of
Respective Store
Do
Collected the data from store department of
actual bin locations and counted the time
required for perpetual stock taking and issue of
material process
Check
Verify the physical stock with system stock and
monitoring the post implementation activities.
Act
Proceed to the WMS implementation at another
store

19. Follow-Up & Review
No. Activity Review Responsibility
1
Cross checking the bin
location physically in the
system
Monthly Store in-charge
2
Checking the bin status
report reconciliation of
stock if any (e.g. 902)
Daily Store in-charge
3
Monthly monitor the time
for monthly audit
Monthly Store in-charge

20. CONCLUSION:
It provides a friendly graphical user interface which proves to
be better when compared to the existing system.
Automation of the entire system improves the efficiency.
Updating of information becomes so easier.
It gives appropriate access to the authorized users depending
on their permissions.
It effectively overcomes the delay in communications.
The System has adequate scope for modification in future if it
is necessary.
System security, data security and reliability are the striking
features.