3. PREFACE
This manual is designed to serve as a guide on detailing of various elements that constitute the Spare
Parts infrastructure at dealerships. These elements are in accordance to the requirements posed by the
Service demand and takes care the load requirements.
As the contents and subjects presented in this manual may undergo intermittent changes, BAW will
inform the dealerships of all changes, additions, and/or deletions byletterorthroughe-mail.
Cumulative changes and updates of this manual will be undertaken periodically.
This manual is the property of the Spare Parts Department, BAW and may not be copied in parts or as
whole without permission.
4. CONTENTS
1.0 INTRODUCTION 1.0
1.1 DEFINITIONS 1.1
2.0 DESIGN CRITERIA 2.0
2.1 TOTAL AREA 2.1
2.2 RECEIPT AREA 2.2
2.3 STORAGE AREA 2.3
2.4 PRE PULLED PARTS AREA 2.4
2.5 GANG WAY 2.5
2.6 ISSUE COUNTER 2.6
2.7 OFFICE AREA 2.7
2.8 FLEXIBLE PARTITION & CARTON STORAGE AREA 2.8
2.9 SHAPE & ORIENTATION 2.9
2.10 TYPES OF LAYOUT 2.10
2.11 WAREHOUSE LAYOUT 2.11
2.12 LAYOUT GUIDELINES 2.12
3.0 SPARE PARTS INFRASTRUCTURE 3.0
3.1 RACKS & BINS 3.1
3.2 MATERIAL HANDLING EQUIPMENTS 3.2
3.3 LOGISTICS (FOR MULTIPLE WORKSHOP DEALER) 3.3
3.4 WAREHOUSE LIGHTING 3.4
3.5 COLOUR CODING 3.5
3.6 LOCATION LOGIC
3.7 MANPOWER DEVELOPMENT & REQUIREMENTMENT
4.0 WAREHOUSE PROCESS 4.0
4.1 ORDERING 4.1
4.2 RECEIVING 4.2
4.3 BINNING 4.3
4.4 ORDER PICKING & ISSUE / DISPATCH 4.4
4.5 LOGISTICS 4.5
5.0 PARTS STORAGE METHOD 5.0
5.1 STORAGE PHILOSOPHY 5.1
5.2 STRONG ROOM 5.2
5.3 FIFO 5.3
5.5 PERPETUAL INVENTORY 5.5
5.5 PHYSICAL INVENTORY 5.5
6.0 WAREHOUSE CONTROL 6.0
6.1 WAREHOUSE IMPROVEMENTS & MAINTENANCE 6.1
6.2 QUALITY ASSURANCE 6.2
6.3 ESI 6.3
6.4 SAFETY & HEALTH IN OPERATIONS 6.4
5. A streamlined and seamless Spare Parts operation is critical to the success of a vibrant vehicle service
workshop. Whether or not the parts activities are properly controlled can greatly influence the company's
success.
The parts warehouse control is among other things vitally important to the parts control, requiring
efficient use of available space and effective operation of actual parts distribution within the warehouse.
Taking these things into consideration and on the basis of BAW long practical experiences, we have
prepared here a manual titled 'Warehouse Operations Manual for Dealerships' for the benefit of those
who are starting in the spare parts business, or plan to modify or expand an existing spare parts
warehouse.
Mother Warehouse - Location where material from BAW is received.
- Material is stored at Mother location for own consumption
and for Stock Transfer to other location workshops (Child
Warehouses)
- Sale value for mother include own consumption & stock
transfertochild.
- For Single workshop dealership sale value is own workshop
consumption.
Child Warehouse - Location where material is received from Mother
Warehouse.
- Only Fast Moving items are kept at this location
- Any part which has not been sold in the past 6 months
need to be shifted to Mother location
- Minimum frequency of receipt of material from Mother
Warehouse
Once in a day for Child Warehouse in same city
Days in a week for outstation Child Warehouse
E-outlet - Extension outlet
- Maximum Number of Bays, 3
- Above 3 bays the same is considered as Child Warehouse
for spare parts operations purpose
1.0 INTRODUCTION
1.1 DEFINITIONS
6. Before going into the building blocks of a spare parts warehouse, let us understand what a
warehouse is.
“A warehouse is a temporary storage location for an item from receipt to issue”
The objective of a proper warehouse design is to ensure the following
> Maintain parts quality by ensuring proper storage
> EfficientOperations
> Fastresponse to Workshop
> Safe handling procedure
> Increaseprofitability
The elements of a warehouse design are,
a) ReceiptArea
b) StorageArea
c) Pre-pulled Area
d) Gang Way
e) Issue Counter
f) Office Area
g) Flexible / Semi Flexible Partition Storage Area
(Fig. 1)
2.0 DESIGN CRITERIA
OFFICE
FLEXIBLE
PARTITION A
I
G Y
RECEIPT
K
E
K
E
K
ENTRY E
A
PULLED
7. Total area required for a Dealer Warehouse operation is sum of
Receipt Area
Storage Area
Pre-pulled parts Area
Aisle Area
Issue Counter
Office Area
Flexible / Semi Flexible Partition & Carton Storage Area
Mother Warehouse
Space Required, Total
Sales Value (Rs
Lacs)
Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse
Monthly
Only
Mechanical
Only
Accident
Combined
Only
Mechanical
Only
Accident
Combined
0-10 1900 2500 2200 1900 2600 2300
10-15 2100 2900 2500 2300 3200 2800
15-20 2300 3200 2800 2500 3500 3100
20-25 2600 3700 3300 2900 4100 3600
25-30 3500 4900 4300 3800 5300 4600
30-40 4000 5600 4900 4100 5900 5100
40-50 4400 6300 5400 4600 6500 5700
50-60 4700 6700 5800 5000 7200 6300
Child Warehouse
Sale Value
(Rs Lacs)
Space Required, Total
Same City Outside
CityOnly
Mechanica
l
Only
Accident
Combined Only
Mechanical
Only
Accident
Combined
0-10 800 1000 900 900 1100 1000
10-15 1000 1400 1300 1100 1500 1400
15-20 1300 1700 1600 1600 2100 1900
20-25 1900 2600 2300 2200 3100 2700
25-30 2200 3100 2700 2300 3200 2800
30-40 2300 3200 2800 2400 3400 3000
E-outlet
No of
Bays
Only Mechanical
0 - 3 300
2.1 TOTAL AREA
8. This is the area where Parts are received, checked & segregated for binning at respective location.
This area is critical in the smooth functioning of the warehouse.
The space required for this area is 150 sq. ft. (Refer fig .1)
Pre binning rack is kept at this location for temporary storage of inward material before
inspection and binning (sketch of the rack is given in Annexure A)
This is the area where the items after receipt and inspection is stored awaiting requisition
from Workshop.
This area include the Rack area and Aisle area( Refer fig.1)
In this area parts are stored based on their movement, size and type.
The space required for this area is based on the number of SKUs to be stored and in what
quantity.
The storage space required is of two types.
• -Floor space
• -Vertical Height
2.3 STORAGEAREA
2.2 RECEIPT AREA
9. Floor Space
Mother Warehouse
Sale Value
(Rs Lacs)
Space Required, Stocking
Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse
Only
Mechanical
Only
Accident
Combined Only
Mechanical
Only
Accident
Combined
0-10 1400 2000 1700 1400 2100 1800
10-15 1600 2400 2000 1800 2600 2300
15-20 1800 2600 2300 2000 2900 2500
20-25 2100 3100 2700 2400 3500 3000
25-30 2900 4300 3700 3200 4700 4000
30-40 3400 4900 4300 3500 5200 4500
40-50 3800 5600 4800 4000 5800 5000
50-60 4100 6000 5100 4400 6500 5600
Child Warehouse
Sale Value
(Rs Lacs)
Space Required, Stocking
Same City Outside
CityOnly
Mechanical
Only
Accident
Combined Only
Mechanical
Only
Accident
Combined
0-10 500 700 600 600 800 700
10-15 700 1000 900 800 1100 1000
15-20 900 1300 1200 1200 1700 1500
20-25 1500 2200 1900 1800 2600 2300
25-30 1800 2600 2300 1900 2700 2400
30-40 1900 2700 2400 2000 2900 2500
E-Outlet
No of
Bays
Only Mechanical
0 - 3 250
Vertical Height ($)
Type of Part Below beam height
Small & Medium Parts 10.5 ft.
Body parts 14 ft.
$ In case of vertical height available is less than specified height, then floor area required will increase
accordingly.
10. There is a transition period between picking and delivery to workshop/ child warehouse.
Pre-pulling parts bin (Job card/Requisition No Bin) helps to supply the parts on time to
customers coming to dealer workshop.
When parts staff prepare parts in time for repair, it is better to store these parts temporarily in
an exclusive bin for each job card /Requisition No, so that anybody can find the necessary parts
for the corresponding repair vehicle.
The location where parts are kept in their transition period is called ‘Pre-Pulled Area’
A Pre-Pulled Rack is kept at this location (Sketch in Annexure A)
The space required for this area is 25 sq. ft.
Job Card / Requisition No
'0'
Job Card / Requisition No
'1'
Job Card / Requisition No '2'
Job Card / Requisition No
'3'
Job Card / Requisition No
'4'
Job Card / Requisition No '5'
Job Card / Requisition No
'6'
Job Card / Requisition No
'7'
Job Card / Requisition No '8'
Job Card / Requisition No
'9'
Pre Pull Bin based on last digit of Job Card / Requisition Number
2.4 PRE-PULLED AREA
11. There is an area which is between the storage area, Receipt area and Pre-pulled area.(Refer fig. 1)
There is movement area for all (Painted in brown)
Material Handling equipment are also stored in this area at the close of the work.
The space required for this area is depends on the type of warehouse and sale volume.
Mother Warehouse
Sale Value
(Rs Lacs)
Space Required, Gang Way
Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse
Only
Mechanical
Only
Accident
Combined Only
Mechanical
Only
Accident
Combined
0-10 200 200 200 200 200 200
10-15 200 200 200 200 300 200
15-20 200 300 200 200 300 300
20-25 200 300 300 200 300 300
25-30 300 300 300 300 300 300
30-40 300 400 300 300 400 300
40-50 300 400 300 300 400 400
50-60 300 400 400 300 400 400
Child Warehouse
Sale Value
(Rs Lacs)
Space Required, Gang Way
Same City Outside
CityOnly
Mechanical
Only
Accident
Combined Only
Mechanical
Only
Accident
Combined
0-10 100 100 100 100 100 100
10-15 100 200 200 100 200 200
15-20 200 200 200 200 200 200
20-25 200 200 200 200 300 200
25-30 200 300 200 200 300 200
30-40 200 300 200 200 300 300
This is the area where picked items are physically handed over to the workshop.
Criteria:
Open directly to service area of workshop.
Sutter with lock is required to close the counter.
Dimensions:
Width 5ft ~ 7ft/ 150 ~ 210 cm
Ground to Counter height 3.5ft / 100 cm
Height of counter 3.5ft / 100 cm
Width of counter slab 1.5 ft / 45 cm
Counter slab is of black granite stone
2.5 GANG WAY
2.6 ISSUE COUNTER
12. This is the area where the spare parts office is situated.
The inhabitants are
Spare Parts manager
Inventory Control Person
The space required for this is depends on the type of the warehouse.
Type of Warehouse Space Required
Mother warehouse 100 sq ft
Child warehouse 75 sq ft
eoutlet 30 sq ft
Sample sketch of a Spare Parts Office in Mother Warehouse is given below.
2.7 OFFICE AREA
Operator Table
5 ft
2 ft
10 ft
2 ft
5 ft
4 ft 3 ft 3 ft
FilingCabin
SparePartManagerTABLE
13. Empty carton boxes and flexible Partitions needs to be kept safe for future usage.
There are demarcated for this is called ‘flexible Partition & carton storage area’
Space required for this area is
25 sq.ft for Mother Warehouse
15 sq.ft. for child Warehouse
5 sq. ft. E- outlet
The shape and orientation of the warehouse is of equal importance as of space requirement. The shape
and orientation of the warehouse plays a pivotal roles in the seamless functioning of the warehouse and
hence the productivity. The factors critical in the shape and orientation are as follows;
Profile of the site should be in Rectangular / square with minimal pillars.
Easy entry of Truck till the unloading point.
Warehouse in a single level is desirable as multiple levels will create bottlenecks in the
flow.
If workshop is on multiple levels then body parts store should be on body shop level.
At least one floor should have a minimum space of 1000 sq. ft.
2.9 SHAPE & ORIENTATION
2.8 FLEXIBLE / SEMI FLEXIBLE PARTITION & CARTON STORAGEAREA
14. Layout is the process of installation of warehouse infrastructure and finalizing the work flow
There are five types of Layout possible .They are
U’ Shape
L’ Shape
Straight – Through flow
Modular Spine Design
Multi Stored Layout
Each of the above has their own merits & demerits; the same is detailed below
U Layout
L Layout
2.10 TYPES OF LAYOUT
Storage Area Storage Area
15. Straight – Through Flow
Suitable when there is no physical constraints in Site in terms of Space & Orientation
Modular Spine Design
Suitable for large scale operation in which individual process are so large that they merit stand-alone &
uniquely designed buildings. Example - Production
Multi stored Desi
Necessary when land is extremely scarce.
This is the least desirable of all flow alternatives.
In this layout we need to find warehouse in bottlenecks & not the other way round.
Storage Storage
Order Picking Order Picking
Cross Dock
Continuous
Replenishment Flow
Through Regular Turn Product
Low Vol. Slow
Turn Product
16. & 4 item Storage
Very slow Moving & Dead item
packed storage area
Receipt Area Counter Office MC 1, 2, 3 & 4 item Storage
Very Slow Moving &
Dead Item
Packed Area
Receipt Area Office Bulk
Counter
After assessing the merits & demerits of the above layouts we have finalized
on two Layouts.
1
st
Option L Layout
2
nd
Option U
Layout
Sample
Layouts U
Layout:
Sample U1
Bulk item Storage
Bulk item Storage
MC 1, 2,
3
Sample U2
MC 1, 2, 3, 4, F & M item Storage Bulk
Item
Storage
2.11 WAREHOUSE LAYOUT
17. Very slow Moving &
Dead Item Packed
area
Receipt Area
Maximum
L Layout:
Sample L1
Sample L2
Bulk
Storage
MC 1, 2, 3, 4, F & M Item Storage
Bulk Item Storage
Office
Counter
Maximum length of one row = 18 ft. – 21ft
Aisle between two Racks /Shelves = 2.5ft- 3ft
Aisle space from the wall = 3 ft.
Racks to be kept back to back with picking from both ends.
Warehouse to follow an ‘L’ layout or the next optimal layout according to the space available.
Very slow Moving &
Dead Item Packed
storage area
MC 1, 2, 3, 4, F & M Item Storage Counter
Bulk Storage
MC 1, 2, 3, 4, F & M
Item Storage
Office
Receipt Area
2.12 LAYOUT GUIDELINES
18. Having the requisite space in the desired shape and orientation alone will not ensure smooth operation of
a warehouse. Suitable infrastructure is also required. The infrastructure include;
3.1 Racks & Bins
3.2 Material Handling Equipment’s
3.3 Logistics (For Multiple Workshop Dealer)
3.4 WarehouseLighting
3.5 Spare Parts Managers cabin
3.6 Colour coding
3.7 LocationLogic
We shall see one by one.
Racks and Bins are the basic building blocks of a Warehouse to ensure “one part one location”. We
have divided the types of Racks into four, the same is detailed below.
a) Small and Medium Size parts storage
b) Body Parts Storage
c) Special Racks
d) Specific Usage Racks
All dimensions in mm
Rack Vendors:
Vendor Name Contact Address
3.0 SPARE PARTS INFRASTRUCTURE
3.1 RACKS & BINS
19. Small & Medium Size Parts Storage
RackNo
Depth
Width
Ht
Gauge,
Rack
Plate
Gauge,
Side
Cladding
Number
of
Partition
Number
ofLoading
Level
Number
ofBins
Extra
Partition($)
Type 1, Small & Medium Parts - Minimum height from Ground = 150mm (6")
SM1 225 100 100
FrontportionBendupwards
20 24 9 23 207
SM2 300 150 150 20 24 6 15 90 15
SM3 300 225 225 20 24 4 10 40 20
SM4 450 225 225 20 24 4 10 40 20
SM5 1200 150 150 18 24 6 15 90
SM6 600 300 225 18 24 3 10 30 20
SM7 450 300 375 18 24 3 6 18 12
SM8 450 450 375 18 24 2 6 12 12
SM9 450 900 375 18 24 1 6 6 12
SM10 900 900 375 18 24 1 6 6 6
Holes in rack plate at every 3” from SM2 onwards
($) Number of flexible partition can be increased as per
requirement Sketches of the Racks are given in Annexure A
Body Parts Storage
RackNo
Depth
Width
Height
Numberof
Partitions
Numberof
Loadinglevel
Numberof
Bins
Extra
Partition($)
Remarks
B1 1200 300 1200 5 2 10
B2 1200 600 300 2 8 16 16 STEERING RODS
B3 600 500 1000 3 2 6 12
B4 1500 300 1500 5 2 10
B5 1200 200 850 6 3 18 Small glass, Door Trims
B6 1800 600 1650 1 2 2 4 BUMPER, Slow
Moving (Angle structure)
B7 1800 1500 1650 1 2 2 4 BUMPER, Fast
Moving (Angle Structure)
B8 3000 300 1950 5 1 5 SIDE BODY PANEL,
Level 1
3000 300 1500 5 1 5 SIDE BODY PANEL,
Level 2
Holes at every 3 inches
($) Number of flexible partition can be increased as per
requirement Sketches of the Racks are given in Annexure A
20. Special Racks
RackNo
Depth
Width
Ht
Remarks
Type 3, Special Racks
MR 650 1500 2100 Muffler
CR2 650 1500 2650 Odd shaped body parts, Fuel pipes, brake pipes etc...
CR3 650 900 2650 Odd shaped body parts, Fuel pipes, brake pipes, cables etc...
CR4 650 600 2650 Torsion Rod
Specific Usage Racks
RackNo
Depth
Width
Height
Gauge,Rack
Plate
Number
oflevel
Remarks
Pre-binning Rack, SU1 750 3000 900 18 3 Receipt items to be kept in
Carton Box in this rack before
binning
Pre Pulled Rack, SU2 750 900 600 18 3 PrePulledrack,Pickeditemsto
be kept before handing over to
workshop
VOR Rack, SU3 450 900 375 18 6 Items received against VOR to be
kept along with the Vehicle details
andRequester
The rack should be kept near
the counter at a visible location
Non Moving Rack, SU4 750 3000 900 18 3 Items to be packed and the list to be
kept with SPM
Sketches of the Racks are given in Annexure A
21. Material Specification for the Racks
Head Detail
s
Specification
SM Series Upright
Shelf panel (SM1 to SM4)
Shelf Panel (SM 5 to SM10)
Side / Back Cladding
Flexible Partition(Chamfered
Corners) Holes at every 3 inch on the
panel
40x40 14G
20G
18G
24G
18G
B Series Upright
Shelf / Deck(section) panel (Except B6,
B7) B6, B7
Side / Back Cladding (B2 &
B3) Holes at every 3 inch
60x40 14G
18G
Angle structure
24G
MR & CR
Series
Upright (Rolled)
Hooks in MR
Rack
Cantilever Arms & Upright
80x80
Stainless Steel
Male - Female joint
SU Series Upright (SU1, SU4),
Rolled80x80 Upright (SU2,
SU3)
Shelf / Deck (Section)
Panel18G Cladding
40x40 14G
No Cladding
Powder
Coating
Thickness 50 micron
Colour code Upright (Except SU3,SU4)
Panels (Shelf & deck panel)
SU3
SU4
FF Deep Orange
9000928 (Nerocoat)($)
Ring Ivory 9001942
(Nerocoat) ($)
Red (Yellow 100%,
Magenta 100%)
Black
($)Brand is for reference purpose only, any brand of same shade may be used
22. Material handling equipment is the life line / nervous system of a warehouse. We require Picking & binning
trolleys. Sample pictures & dimensions are given below,
BINNING TROLLEY
Dimensions:
Length 4ft / 120 cm
Width 2ft / 60 cm
Height 3.5ft / 105 cm
Load Carrying Capacity 100Kg
3.2 MATERIAL HANDLING EXUPMENTS
23. PICKING TROLLEY
Sl No Specification Q
t
y
Remarks
1 MS round pipe, ID=15mm OD=21mm As per
dimen
sion
Mainframe and Ladder legs
2 MS Flat 50x50mm As per
dimen
sion
Cross bars for platforms
3 MS Plate 140x115x6mm 4 For Mounting Wheels
4 MS Sleeve 30x25x60mm
(ODxIDxLength)
4 Ladder guides
5 Compression spring, ID = 24mm,
OD=28mm, 25Kg,L=100mm
2 Ladder return
6 MS Washer
28x23x3mm(ODxIDxThick)
2 Stopper
7 MS Checker plate, 408x100x6mm
(LxWxThick)
3 Ladder Rungs
8 MS Rod 12mm dia, L=300mm 2 Handle
9 Castor wheel, Fixed wheel 150mm dia,
Wheel thick = 38mm
2 Light duty sheet metal pressed forks
and frame rubber cushioned wheel,
10 Castor wheel, Swivel wheel 150mm dia,
Wheel thick = 38mm
2 roller bearing at axle
24.
25. LADDER FOR PICKING ITEMS AT HEIGHT
PLASTIC CONTAINERS FOR PARTS HANDLING
Plastic containers are required for handling of parts both at the time of binning and picking as plastic
containers are light in weight and do not have sharp edges which may harm the picker/binner and damage
the parts. These containers are stackable and hence do not occupy much space (Nilkamal containers of
Blue colour).
LOADING / UNLOADING FACILITIES
Safe loading and unloading facilities to be provided for the material received/dispatched. Wooden / Steel/
Stretch wrapped boxes should not be rolled or dropped. Corrugated cartons and loose parts should be
manually handled from the truck directly on to/from the trolley.
BOX OPENING TOOLS
Tool Application
Claw Head Hammer (2Kg) For opening wooden boxes
Lever with de-nailer (500mm) For opening wooden boxes
Strap cutting plier For cutting hoop iron strap
Cutting knife For cutting plastic film of Stretch wrapped Boxe
PACKING ITEMS (For Mother Warehouse)
The equipment required includes plastic strapping machine, hand metal strapping machine, packing table,
and packing material – Straps, Wood, polythene bags etc. and shelves/racks for temporary storage.
26. A leadership having multiple workshops have the option of having a Hub & Spoke arrangement.
In a Hub & Spoke arrangement the Hub is called Mother Warehouse and spoke is called child
warehouse.
In such an arrangement it is critical to have a robust logistic network.
In this type of dealerships Mother Warehouse works as the supplier for the Child Warehouses.
The child warehouse will stock only the minimum required part numbers in minimum required
quantities. All bulk stock is kept for the child warehouse is kept at the Mother warehouse
Location.
This will ensure;
Lower space required for storage
Less stock
Mother warehouse will supply items to the child warehouse in the following frequency
Minimum once in a day for child warehouse in same city.
Minimum of 3 times a week for Child warehouse in outside city.
To ensure this supply a Permanent Journey Plan (PJP) need to be made.
Adequate number of Mahindra Genuine Parts branded delivery vans based on the route and sale
volume need to be employed.
Adequate illumination is lighting is required for smooth operation of warehouse activities.
Location Light Level
Warehouse, Working / Packing / Dispatch 300 Lux
Small Item Storage 300 Lux
Office 500 Lux
Counter Area 500 Lux
Location Light Level
Warehouse, Working / Packing / Dispatch 300 Lux
Industrial fluorescent channel with wide, narrow and asymmetric beam reflector suitable for 2x28W
FTL (T5) / 2x36 W FTL (T8) (#)
(#) (Brand (Wipro) is for indicative purpose only, you may use any suitable brand)
3.3 LOGISTICS (FOR MULTIPLE WORKSHOP DEALERSHIPS)
3.4 WAREHOUSE LIGHTING
27. In this section we deal with the colour code for
• Racks & Bins
• Wall Painting
• Floor Painting
Bins and Racks
Location Colour
Rack Upright FF Deep Orange 9000928 (Nerocoat)($)
Rack Panel Ring Ivory 9001942 (Nerocoat) ($)
VOR Rack Mahindra Red (Magenta 100% & Yellow 100%)
Non Moving Rack Black
($)Brand is for reference purpose only; any brand of same shade may be used
Powder Coating is to be done for the
racks. Matt finish for uprights.
Glossy finish for panels.
Wall Painting
Zone Paint Type Paint Colour
Interior Walls
Up to 8' height from
ground Walls above 8'
Apcolite Synthetic Enamel
Apcolite Super Acrylic
Enamel
White
Interior Ceilings Apcolite Super Acrylic Enamel White
Office Apcolite Super Acrylic Enamel White
3.5 COLOUR CODING
28. Floor Painting
Work Area Mint Green, Nerolac($)
Gangway Golden Brown, Nerolac ($)
Border Marking White line 30 mm wide after 50 mm from the rack
edgeArrow Marking
(To mark entry and exit to an aisle) White line 30 mm
Aisle No Marking on the Rack
Upright (Tomark entry and exit to
an aisle)
Aisle No = 12 cm depth x 25 cm
width(#) Height of Font = 10 cm
Zone No / Aisle No / Column No
marking On the floor (outside the
border marking) (Tomark entry and exit
to an aisle)
Base Colour White
Writing Matter
Black
Aisle No = 15 cm depth x 30 cm
width(#) Height of Font = 12 cm
Column No = 10 cm depth x 20 cm
width(#) Height of Font = 8 cm
($)Brand is for reference purpose only, any brand of same shade may be used
(#)
The thickness of the painting / epoxy coating is 1000 microns
Mahindra & Mahindra Warehouse
Width
t Height
Depth
29. Everypart
Every parts should have a location and it should be in its place.
The location code should be self-explanatory in locating the part.
The location is marked from left to right.
Location is marked using an seven digit code .The location number flow is given below.
Floor - > Aisle No - > Rack column - > Rack Level - > Bin
All locations should be updated in the system.
Example is given below:
S A 05 D 03
S– Floor
A– Aisle
No
05– Rack
Column D– Rack
Level 03– Rack
Section
Whether Ground (G)/First floor (F) etc.
Location
G
3.6 LOCATION LOGIC
F
G
30. Rack Level
G B - - D - -
Rack Column
G B 05 D - -
Whether Ground (G)/First floor (F) etc.
Rack Level Column and Rack Section
01 02 03 04 05 06 07
H 0
1
0
2
0
3
0
4
0
5
0
6G
F
E
D
C
B
A
Rack Column
G B 05 D 03
A B
Location Number
G B
Aisleno-
Aisleno-
Aisleno-
aisle
aisle
aisle
32. Location Marking:
Location is printed and bar-coded (Optional)
Location is marked on the Bins by pasting the same on bins
Location Labeling on the Bins:
Label
10 cm
3 cm
Dimension 10cm x 3 cm
Background Colour White
Font Colour Black
Font Type Verdana
Font Size 32
Alignment Centre( Horizontal & Vertical)
Rack Type Location
Small & Medium Parts Storage On the Rack Side
Body Part Storage On the Rack Side
Muffler Rack Above the Hook
Cantilever On the Rack front side, inner most at Top & outer most at
Bottom
33. Manpower is the building block of an organization. Sustainability of an organization depends on having:
Right manpower with the right skill for the role.
Optimum number of Manpower
Happy & motivated manpower
Regular training to your staff, topics to be covered
1. System
2. Sales promotion
3. Operations
Business Processes in Dealer Spare Parts Operations:
Transactional
Operational
Managerial
Regular training to your channel partners, topics to be covered
1. Selling techniques
2. Skill up-gradation
3. Awareness about genuine parts
Mother Location: CombinedWorkshop (Mechanical + Accidental)
Sale Range
(in Rs.
Lacs)
For Combined
Head Spare
Parts,
Workshop
Level
Internal
Process
Controller
Business
Planner
Receipt &
Warehouse
Issuer
Order /
Co-
Branches
Picker Total
0-5 1 1 2 4
5-10 1 1 2 4
10-20 1 1 1 1 2 6
20-30 1 1 1 1 1 2 7
30-40 1 1 1 1 1 3 8
40-50 1 1 1 1 1 1 4 10
50-60 1 1 1 1 2 1 4 11
60-90 1 1 1 1 2 1 6 13
90 - 120 1 1 1 1 3 1 7 15
3.7 Manpower Development & Required
34. The process in a warehouse affects productivity
Hence the processes need to be standardized.
The various processes in a warehouse are
4.1 Ordering
4.2 Receiving
4.3 Binnig
4.4 Order Picking& Issue /Dispatch
4.5 Logistics
4.0 WAREHOUSEPROCESS
35. Types of Orders
The various types of orders are;
a) RegularOrder
Regular order is placed for stock replenishment. The regular order is to be placed on the ordering
days specified by BAW and the same will be dispatched as per schedule communicated.
b) VOR Order
Such orders are to be placed only when a vehicle is off the road i.e. parts without which the vehicle
cannot be functional & be back On-Road. One VOR order for one vehicle. These are required
urgently to provide service to the customer.
c) KeyOrder
Key order is used to get duplicate Keys for the customer.
Order Methodology
Order Type Mode of Order Ordering Frequency Order dispatch Day
Regular Order Extranet / DMS Twice in Month N + 1
VOR Extranet / DMS Daily (N) Same day for order up to
10-15
KEY Extranet / DMS Daily(N) --
Order Preparation:
SOQ = Suggested Order Quantity
SS = SafetyStock
LT = Lead time (Time between ordering and receipt)
OC = Ordering Frequency (2 for Daily, 3 for Triweekly, 4 for Bi weekly and 7 for Weekly)
DBAR = Last 3 months average sale
OHQ = On Hand Quantity (Current Stock)
OOQ = On Order Quantity (Parts orders & not received)
CBO = Customer Back Order (Pending Requisitions)
Include all items which are in Movement Code 1, 2 & 3 in the Ordering Plan
Please refer BAW Parts Operation Manual for further details
Branch / Child location
A branch/child location should give order to the mother location on a daily basis.
Orders to be transmitted to Mother Warehouse in 1900hrs.
4.1 ORDERING
SOQ = [SS for LT + SS for OC + (OC +LT) x DBAR] – OHQ – OOQ + CBO
36. MatchtheTakeopen
Parts dispatched from BAW will arrive at the dealer location as per the lead time defined.
Regular’s orders are dispatched through road transport and VOR orders through Air / Road
mode.
Dealers should carry out the following checking before receiving the consignment.
Receipt area should be specified.
It should also have the Pre-binning rack. Binning trolleys to be kept ready at the location before
receiving the consignment from BAW.
Check Points
Check whether the consignment is actually for the dealer.
Match the consignment with the ship list summary from extranet.
Check for external damage, if any. In case of external damage, shortage /excess mention the
same on the POD and get the delivery person signature.
Take open delivery for glass items and external damage cases.
Always mention the receiving person name along with delivery date and time on POD copy.
Update the same in DMS.
Ensure to hand over the Proof of Delivery copy immediately to the truck drive
Follow the Material receipt process as detailed in BAW Parts Operation Manual
Take out the list of parts received and append the location codes on each part.
Segregate according to the bin location.
Parts to be kept in binning trolley, with part in the last bin first (LIFO method), Sketch appended
below.
Follow the same process if items in next adjacent aisle is also kept in the same trolley.
Match the bin number and the bin location card on the part and keep the item in the bin.
4.3 BINNING
4.2 RECEIVING
1
3
4 2
37. For Workshop Issues
Take print out of workshop Issue Note.
Start picking from the nearest bin location from the counter
For Stock Transfer Issues
Release the pick ticket
While printing the pick ticket use the option of sort by “Bin Location”
Start picking from the nearest bin location from the counter.
This is applicable to Multiple Workshop Dealership
Mother Location
Delivery to all the branch location as per the Permanent Journey Plan (PJP).
Pick and pack all the items from 0900 hrs. to 1000 hrs.
Dispatch the items to the branches by 1000 hrs.
Child / Branch location
Do binning immediately on receipt.
4.4 ORDER PICKING & ISSUE/DISPATCH
4.5 LOGISTICS
38. In this section we shall see the parts storing process.
This is divided in to the following section.
5.1 StoragePhilosophy
5.2 StrongRoom
5.3 FIFO
5.4 PerpetualInventory
5.5 PhysicalInventory
5.6 Types of Layout
5.7 WarehouseLayout
5.8 Layout Guidelines
There are two methods of storage
a) Fixed Location
b) Dynamic Location
In fixed location each item location is fixed.
If the item for which a location is attached is not available that space will stay un-utilized.
Retrieval of item is easy as there is less system dependency.
This is suited for individual part picking.
In Dynamic Location method location are fixed
SKU are allocated by system based on the location freeness.
Best utilization of space.
But order picking is not possible without system support.
Suitable for large Operations.
In our case we are suggesting a Hybrid method.
For MC1, 2, 3,&4 Items fixed location method.
For MC 5 items dynamic location method (for items in this location has to be done as
per policy).
In an Optimum warehouse layout we need to ensure
Minimal movement of Man & Material
Easy retrieval of parts
Proper preservation & minimal damage.
Parts have to be segregated based on the Movement Code and FMSN.
Movement Code is the number of months the part got transacted in the given period
Movement Code If 12 month Data is Available If only 6 month Data is Available
MC1 12 6
MC2 9 - 11 5
MC3 6 - 8 3 - 4
MC4 1 - 5 1 - 2
MC5 NONE NONE
5.0 PARTS STORAGE METHOD
5.0 PARTS STORAGE METHOD
39. FMSN Analysis
FMSN analysis is done on the basis of sales volume (Quantity) of each part.
FMSN analysis process.
Take out the entire consumption report.
Append gross sales quantity (numbers) of each root part number over the period of one year.
Make a list of parts that ranks the parts in descending order of their sales quantity.
All the parts should be included in this list irrespective of their sales quantity
Category Classification
F Parts that contribute to top 75% of quantity sold
M Parts that contribute to next 20% of quantity sold
S Parts that contribute to next 5% of quantity sold
N Parts not sold that period
FMS(N) (Fast Moving, Medium Moving, Slow Moving, Non Moving)
924.00
100.00%
Row Labels Sales Qty
(FMS)
Contribution
%
Cumulative FMS
AC00444 574 62.12% 62.12% F
AC00467 69 7.47% 69.59% F
AK00039NM 52 5.63% 75.00% F
- - - -
ATU0043M 20 2.16% 77.38% M
AC00460 18 1.95% 79.33% M
AK00024 18 1.95% 81.28% M
AC00447 10 1.08% 90.37% M
ATU0042 8 0.87% 93.07% M
AC00431 6 0.65% 93.72% M
AC00457 6 0.65% 94.37% M
AK00038 5 0.54% 94.91% M
AC00427 4 0.43% 95.35% S
AK00026 4 0.43% 97.08% S
- - - -
- - - -
AC00426 3 0.32% 98.16% S
ATU0048 2 0.22% 99.57% S
AK00047 2 0.22% 99.78% S
AK00049 2 0.22% 100.00% S
40. Stocking Process
Base Data Available / Required
Bin Master
Movement Code Details
Item in MC 5 will be further subdivided into;
- Not moved for 1 year
- Not moved for 2 years
- moved for 3 years & more
Stock Quantity
Stocking Norms is broadly divided in to two
a) For items in MC 1 to MC 4 & New Items
b) For MC 5 Items
a) For MC1 to MC4 & New
Items Stocking is divided in to 3
stages;
Phase –I; Preparing the Part List
- Do FMSN analysis on the parts
- Append Movement code, FMSN category, & Bin Master Data to the Stock list
- Zero in on the Bin & Rack required
- Sort the stock list in 3 Levels; Bin Required – Part Number [Stocking List]
Phase – II; Rack / Bin Preparation
MC 1 MC 2 MC 3 MC 4 MC 5
F 294 79 15 27 0
M 213 582 660 711 0
S 0 0 110 2701 0
N 0 0 0 0 1531
At eye level in the racks, to be kept near counter
In top and bottom rows
Racks at the rear end of Warehouse
To be done as per BAW Parts Policy
- Topof the Rack is demarcated as Over flow Location (Green Flag with magnet)
- Over flow items need to be kept on the top of the rack against that bin. The Green Flag should
be affixed on the bin whose part is kept on the top
41. High value parts like, Bearings, ECU etc...
These items need to be kept secure by creating a strong room with lock & key.
The operational access of this location will only with the spare parts manager.
FIFO = First In First Out
This will ensure that older parts gets used first, thus ensuring less chances / quality deterioration
over time.
The storage and picking in warehouse to follow FIFO.
The process of ensuring FIFO is given below
Store items from left to right in a bin.
Picking to be done from the right.
Replenishing to be done from the left by shifting the stock to right.
Always fresh parts to be kept on the left of the bin only.
Initial Stocking Picked from Right
Old Stock Shifted to Right
New Stock Added to Left
5.2 STRONG ROOM (OPTIONAL)
5.3 FIFO
42. Perpetual inventory helps in ensuring Physical Stock and System Stock is matched.
Perpetual inventory to be done on the Fast, Medium and Slow moving items.
The number of times a particular part will be counted is based on the Movement Category.
Perpetual inventory process is detailed below
Frequency of Perpetual Inventory =Daily
Do FMSN analysis based on last 1 year movement
Find number of items to be counted.
Example
- F Category 500 Nos
- M Category 1000 Nos
- S Category 1500 Nos
- N Category 2000 Nos
- Total Number of items = 3xF + 2xM + 1xS + 0xN
- = 1500 + 2000 + 1500
- = 5000
Number of Days, = 300 days per
year Number of Items to be counted per day
= Total Items / Number of Days
= 5000/300
= 17 Parts
This 17 parts to be divided in the same ratio
of 3F:2M:1S
Append the counting day for all the parts
Take the list of items with opening stock of
the day.
Do physical counting of parts before start of
operations or after close of operations.
Find the items where there is discrepancy.
Do a root cause analysis for the same using
fish Bone diagram.
Eliminate the root cause.
Take management approval and update in the
system.
Part Category of times
F 3
M 2
S 1
N 0
5.4 PERPETUAL INVENTORY
43. Sample Fish Bone Diagram for nailing the root cause
System Stock
44. This is the process of counting all items in the stock and matching with the system stock.
In this all the part numbers irrespective of the movement is counted.
The manpower required for doing the physical stock taking need to be identified.
The process is given below.
Make team of two members each.
Decide the number of teams based on the following
- Total number of parts to be counted
- Average Time taken to counted one part Number.
- No. of Parts counted / hr
- Decide number of teams counting during working hours / after working hours.
- Ideally the counting should be over in 2 days
The stock taking process is detailed below
Make adequate teams, a team is of two persons
Area of the warehouse is divided AISLE wise and is allotted to each team
Area wise location wise list of parts is taken out & is given to respective teams
All boxes should be emptied and counted
Boxes that have the original sealing in place need not be opened and the quantity displayed on
the box should be accepted.
Parts that need to be relocated due to space constraints / damaged should be moved to the
desired location and the new location recorded in the data sheet.
One person should do the counting and the other should record the numbers counted.
The person counting removes all the quantity of that part from the self and places them on the
floor
While counting care should be taken to identify, segregate and record parts that are damaged or
have been used
- Put back in the location
The person counting should identify a part, call out the part number, and this will be written
down by this team mate.
General dusting of the shelf is done before placing the parts back on the shelf
All completed data sheet should be signed by both the team members and handed over to the
supervisor.
The same to be punched in the system to take the variance report
Reconciliation of the variance report to be done
Some of the points need to be considered for reconciliation
Parts may be on display in the customer lounger / showroom
Branch transfer is not updated into the system
Part is kept in more than one location
While issuing the part there may be a double entry in the system
While receiving the part there may be a double entry in the system
Check claims received and if properly updated in system and stock
Check quarantine items if physically removed from the stock
After reconciliation root cause analysis using fish bone diagram need to be done and root cause
need to be eliminated.
Take management approval and update in the system.
5.5 PHYSICAL INVENTORY
45. In this section we discuss about the various control procedures in the dealer warehouse
The various warehouse control parameters are
6.1 WarehouseImprovements&maintenance
6.2 Quality Assurance
6.3 EmployeeSatisfaction Index (ESI)
6.4 Safety & Health in Operations
6.4.1 Climate Control inWarehouse
6.4.2 Dust Control
KAIZENS , Continuous Improvements
There is no such thing as a perfect process or system
Every system and process need to undergo continuous improvement
Special Kaizen cell need to be formed and KAIZENs need to be done and
documented
5s need to be maintained in the warehouse
No parts to be kept on the floor
If some item need to be kept on the floor for Temporary storage purpose, a board should
be kept at that location detailing the item, reason and person responsible.
MIS for management
In order we ensure spare parts operations are streamlined a dealership need to track the
operations on a periodical basis.
Dealer should update and monitor the following reports
- Daily Frequency
Receipt Report
Dead Stock Sale Report
Perpetual Inventory Report
Non Availability Report
Service Ratio Report
VOR Report
- Monthly Frequency
M&M Order Status Report
Profitability Report
Dead Stock Sale / Purchase, Part level Report
Perpetual Inventory Report
6.0 WAREHOUSECONTROL
6.1 WAREHOUSE IMPROVEMENTS & MAINTENANCE
46. Daily Reports
Service Ratio
Report
Date
No of Lines requested No of Lines supplied Service Ratio
Free
Service
Paid
Service
Body
Shop
Free
Servi
ce
Paid
Servi
ce
Body
Shop
Free
Servi
ce
Paid
Servic
e
Bo
dy
Sho
p
VOR Report
Order No
Order
Date
JC No No of
Lines
Requested
by
Received
(Y/N)
Issued to
Workshop Value
Receipt Report
Date
Mahindra Genuine Parts
BAW Co dealer Co Distributor
Dead Stock Sale
Date Part No
Mahindra Genuine Parts
BAW Co dealer Co Distributor
Perpetual Inventory Report
DAY
Number of parts
Category Wise
No of Parts with
Discrepancy
Corrective Action
F M S F M S F M S
1
2
3
..
..
47. Non Availability Report
Sl
NO
JDP
Y/N
C/
F
Sin
ce
Date Vehicle
No.
Model Custo
mer
Nam
e
Conta
ct No.
Part
No.
Descriptio
n
Qt
y.
W/s
Conta
ct
Person
Job
card
Dat
e
C
o
n
t
d
.
.
.
1
2
3
4
5
6
7
Con
td ..
.
Job
Car
d
Tim
e
Req.
Date
Req.
Time
Order
To
Orde
r
Date
Promise
d Date
Received
Date
Rec
Tim
e
Infor
med
to &
Date
Status Categ
ory
of
Part
Last 6
mth
Consum
ption
48. BAW for Display
Apart from the reports which are for analysis thereare certain report which are for display purpose.
These reports are for sensitizing the importance of the processes
Daily Frequency
Report Name Type
Service Ratio Display Board
VOR Display Board
Monthly Frequency
Report Name Type
Spare Parts Sale Status Display Board
Service Ratio Display Board
VOR Display Board
Dead Stock Sale / Purchase, Summary Display Board
Inventory Display Board
Warehouse Process control boards
These the display boards which are required to be kept in the warehouse for the process control.
The boards should be kept either in English or the Regional Language. The different types of
boards are
Following need to be done to ensure that there is no drop in quality of job and there is continuous
improvement in the work process.
Training need identification & Training of spare parts personnel.
Suggestion Scheme
Display of Best practice
“Happy Employees makes Happy Customers and Happy Customers brings in Business Growth &
Sustainability”
Following activities need to be done to ensure low employee turnover
Empowering employees with higher responsibility
Defined career path
Market linked remuneration
Employee feedback while maintaining the anonymity of the person who gives feedback
Employee recognition schemes
Family get together
6.2 QUALITY ASSURANCE
6.3 EMPLOYEE SATISFACTION INDEX (ESI)
49. Follow safety processasperthelocalstatutoryrequirements.
BAW believes that employee is an asset to the company.
Employee safety is an essential and integral part of each and every activity.
Hence it should be the first consideration in the operation of the business.
Accidents are preventable through continual improvement in working environment.
15th
of every month to be celebrated as safety day
A responsible and experienced employee should be appointed as safety in charge.
Following need to be displayed in the prominent location.
In Notice Board
- Safety Pledge (in English & in Regional Language).
- Steps for usage of Fire Fighting Equipment (with pictorial representation).
- Display of Names & Phone numbers of employees responsible for First Aid Kit & its usage
- Important phone numbers like: of nearby hospitals, police station, fire station, person to
contact in case of emergency from the organization.
- Display of Contact details of CEO/ Owner, SafetyIn charge.
Sign Board
- Various sign boards like no smoking, etc can be put up at various places.
- Display of Emergency Exit markings in warehouse at easily visible locations
Personal Protective Equipment (PPE)
- The wearing of Personal Protective Clothing is mandatory for anyone who is entering the
area where the risk of harm is involved like
- Under construction site
- Proper posters with instructions must be put in such areas.
- A Personal Protective Clothing Register will be maintained by the Safety In charge and
PPE will be issued to every employee. Few examples of PPE are:
-
-
Gloves: should be worn by workers w h i l e unloading/ handling parts Safety
Shoes are mandatory for those working in warehouse
First Aid Kit
- First aid kit to be kept with Safety In charge.
- Record of all the persons who may use the kit in case of requirement
will be maintained with reason of using it.
Hazard Identification
- All activities, processes, substances and work places must be risk assessed
under the guidelines from SafetyIn charge. For example
- Electrical Wiring - load per socket- which can trigger a Short circuit and
fire.
- Loose / Hanging electrical wiring
- Proper safety latches whileretrieving items from different location
(elevated & in Pits)
- Not to store inflammable items near the exit.
Proper lighting of the Work area
6.4 SAFETY & HEALTH IN OPERATIONS
50. 6.4.1 CLIMATE CONTROL IN WAREHOUSE
Climate control in the warehouse is required for smooth operations and for sustained productivity
of employees.
Adequate cooling in line with the seasons to be installed.
Proper rain / wind guards to be in place
Sky light / Northern lights for sample sunlight
6.4.2 DUST CONTROL
Proper dust control is required in warehouse for preservation of parts in a warehouse.
This will prevent the quality deterioration of the stored parts.
Air / Plastic curtains need to be installed at proper locations.
Critical storage items like brake pipe, fuel pipes etc. need to be covered by plastic curtains.
Warehouse Standardization
Objective of Warehouse Standardization
Effective utilization of Space
Maintain parts quality
Efficient Operations
Faster response to Workshop
Safe handling procedure
Increase profitability
52. BEFORE AFTER
Essence of Warehouse
Standardization
1. Product specific racks
For odd shape parts such as Muffler, brake
lines, fuel pipes, cables etc.
2. Special Racks
Rack for temporary storage of Receipt items.
Rack for Storage of pre pulled items.
Rack for Packed storage of Non Moving item.
3. Easy to maintain FIFO
4. Maintain one – part one location
