samiksha case study
TRANSCRIPT
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National Institute of Industrial Engineering (NITIE), Mumbai
SamikshaIn association with
SPEAR Logistics Private Limited
Presents
Case Study CompetitionRules
Each Team can have maximum of two members Both members have to be from the same institution. One individual cannot be a part of more than one team. Once a team has been formed, no change in the team composition will be permitted. There is no restriction on the number of teams that can participate from an institute.
Important DatesLaunch of case study 8th August, 2010, 00:00 Hrs
Submission of case analysis: 13th August, 2010, 23:59:59 Hrs
Results of Case Study: 18th August, 2010.
ContactsFor any queries, please send mail to [email protected] SamikshaBadal Shah: +91 9819 279 609
Deepak Bartwal: +91 7666 236 135
Rahul Patil: +91 9890 889 501
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National Institute of Industrial Engineering (NITIE), Mumbai
Case Study
SPEAR Logistics started operations in 2004 with an in plant management service for their clients
warehouses. In 2008, they set up a new facility. This facility was a 60000 square feet warehouse
catering to 12 business divisions of their client. Today they are in the process of expanding it to a
140,000 square foot facility.
The following activities are performed at the facility:
Receipt Inspection Put Away Kitting Picking Packing Dispatch Bar-coding and labeling FIFO Expedited orders Reverse logistics Cycle Counts & PI
Service Level expectation
There are 24 workers engaged in Put away, Pick and Pack activities out of a worker strength of 65.
The remaining workers are engaged in receiving, deconsolidation, MRP and Barcode labeling, unit
packing, loading, carton strapping, weighing, cycle counts, and housekeeping
In order to manage a doubling of business in throughput volumes within the next few months, Spear
will need to improve upon productivity and efficiency without increasing manpower by the same ratios.
Though it is suggested to visit the facility to better understand layouts and processes, Spear would
like to have your suggestions on ways to improve productivityand retain the ability to scale up as the
volumes keep growing. SPEAR Logistics is also planning to increase the horizon of its business
portfolio and reach in coming year but rapidly increasing competition and infrastructure constraints
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National Institute of Industrial Engineering (NITIE), Mumbai
are major roadblocks. Illustration below shows the business and information flow at the facility. You
can also consider use technology as a facilitator along with process improvements.
Deliverables:
1.
Suggest the ways to improve upon productivity and efficiency without increasing manpower by thesame ratios.
2. With the help of given information,design the value chain to minimize the Inventory.Also proposethe effective Layoutto improve the operational performance. Refer the layouts of existing
warehouses in attached excel sheet.
3. Prepare the framework of Future roadmap for SPEAR Logistics to increase its business prospects incoming year, including new dimensions to be explored.
Distribution Centre, Aftermarket Hub, Factory Feed Operations
SpearLogi
stics
Systemsand
Information
KeyBenefits
ClientorThirdParty
Load Planning andShipment Documents
Sales Deptt.Production
Pick and Pack as per
Orders and FIFOPut away to Storage
Suppliers
Receive inventoryat
warehouse
100% capture inSpear WMS for
tracking and FIFOpicking
Segregation of ordersbased on priorityhelps meet customerservice levels,supports increase in
market share
Customization of SpearWMS allows FIFO pickingand faster turnaround,
leads to high accuracy,low claims, better stockrotation
Smart load building
leads to lowertransport andpacking costs
Transport statusupdates givedelivery visibility,
leads to highercustomer servicelevels
Receipt ProcessBreak shipment and allot toDivisionsUpdate ERPUpdate Spear WMSPre Packing and Labeling
Issue Salesorders
Picking ProcessReceive Sales OrdersUpload to Spear WMSGenerate Pick List as per FIFOPickingKittingPack and LabelExpedited orders prioritised
Customer
ShippingTo Factory as sub assemblyFinished Goods to market, bothchannel and project salesAftermarket sales within warrantyand outside warranty
Transport ManagementLoad Building by customer anddestinationLoad building for dedicatedvehiclesFollow-up with transporterStatus uploaded to Spear TM
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National Institute of Industrial Engineering (NITIE), Mumbai
Appendix
Some key statistics of present operations are given below:
Present Planned (Including present)
SKUs in stock 8,000 10,000
Receipt Lines per month 8,500 13,000
Receipt Hash quantities 700,000 1,500,000
Order Lines per month 22,000 47,000
Order Hash quantities 700,000 1,550,000
Orders received per
month
9,500 19,500
Service Level expectation:
Present Planned
Normal Orders 24 Hrs/3 Shifts 16 Hrs/2 Shifts
Expedited/Rush Orders 8 Hrs/Same Day 8 Hrs/Same Day
Receipts/Inbound 24 Hrs/3 Shifts 16 Hrs/2 Shifts
ManpowerWorkers 65
Manpower
Supervisors/DEOs
18
Assistant Managers 2
Program Manager 1
Average productivity per person/day in SKUs:
Put away Pick Pack
47 95 105
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National Institute of Industrial Engineering (NITIE), Mumbai
Storage and Handling Equipments:
Present Planned (Including present)
Forklift & Stackers 2 3
Hand Pallet Trucks 8 16
Carton Staplers & Nailing
Guns
6 12
Compressor 1 1
Pallet & slotted angle racks Each SKU will have a
storage location
Each SKU will have a
storage location
Dock Levelers 1 4
Barcode scanners 8 16
Packing Conveyor line &
work stations
1
Overhead Crane 1 1
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Submission Guidelines:
a. The solution has to be provided in .pdf / .doc format, only. The word limit for the case is 2000words maximum. The document should be in Times New Roman font, Size 12, and 1.5 Line Spacing.
b. The cover Page should have the Team Details, Institute Name and Contact Details.c. The document Name format should be SAMIKSHA_College Name_Team Name. It should be mailed
[email protected] 13th
August, 2010 23:59:59 Hrs. the subject of mail should be
SAMIKSHA_Institute Name_Team Name.
d. Late Entries will not be considered.e. Second Round details will be announced further.f. The decision of the organizers and Jury members will be final
Submission Deadlines: 23:59:59 hrs, 13th
August, 2010
Prizes worth Rs. 15000 to be won!!!
For any query, please contact:
Badal Shah, +91-9819279609
Deepak Bartwal, +91-7666236135
All the Best!!!
mailto:[email protected]:[email protected]:[email protected]:[email protected] -
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About us
Services
Expertise
Why Spear?
We are a contract logistics company founded by logistics professionals
in 2001 with a vision to be recognized as the most dependable and
responsive logistics service provider. We are an INR 350 Millioncompany, spread across India with 15 branch offices and controlling
over 50 warehouses with 1,500,000 sqft of warehousing space.
We cover Inbound, Inplant and Outbound logistics services. We offer
customized solutions through a range of premier contract logistics
services ranging from Warehousing and Distribution Management,
Carrier management, Installation Support Logistics, Intra-City
deliveries and Value added services.
Our core team of Uday Palsule, Gautam Dembla, Anosh Aga and
Rajneesh Disawal, has a combined experience of over 60 years in
Global and Domestic Logistics. Assisting our core team is an
experienced team of 200 Managerial and Supervisory staff with
workforce strength exceeding 900 professionals.
We are technology driven with a proprietary Information System for
Warehouse Management and Transportation. We invest in Capital,
Systems, Structure and Manpower to handle the size and complexity
of our customer's business.
We are unique because of our Centralised functions like Process and
Work Flows Team, Cycle Count Audit Team, Process Review and
upgradation, Packaging Design & Redesign and MIS Design to maintainfocus and add definite value.
For more information please contact us at
Quick Facts
Focused Segments
Satisfied Clientele
?1.5 million sqft of Warehousing
?Over 50 Locations Pan India
?
More than 30 customers?INR 7 billion-Inventory Managed
?1.8 millions lines processed
?900+ Employees and Associates
?Apparel
?Automobile
?Chemical
?Engineering
?Pharmaceutical?Retail
?Telecom
?Armacell
?Aircel
?Airtel
?Ashok Leyland
?Asian Paints
?Atlas Copco
?BASF
?Cummins India
?Essar Retail
?Hyundai Heavy Equipments India
?Hyundai Mobis
?India Pistons Limited
?KOEL
?Reliance Retail
?Shell
?Siemens
?Spencer Retail
?ZF India
and many more..12/2010-INT1/1-07/2010