The document discusses logistics and warehouse management. It provides an overview of logistics, lean principles, types of waste, and value stream mapping. It also discusses warehouse selection processes including proposal forms, checklists, negotiations, and automation technologies like conveyor systems, stacker cranes, sorters, and picking systems that can improve warehouse operations. Matrices for measuring transportation and fulfillment performance are also presented.

1. R.Ramachandran Head-National Hubs TVS Logistics Services Limited, Chennai

2. Part 1- Basics of Logistics

7. Lean Profit Model Market Principle Selling Price - Cost** = Profit ** To make a profit you have to keep costs below the price you can sell

8. EFFICIENCY -2% -.5% 1% 3% -.5% -2% -1% Work Processes 10% Reduction In Operating Expenses BUDGET 10% Cut Off The Top APPARENT REAL

10. The Purpose of a Work Process is to Deliver Value to a Customer… QUANTITY In the PROMISED PLANNED BY AN ORGANIZATION QUALITY - at the COST TIME QUANTITY

12. The focus of a Lean Enterprise is to increase EFFECTIVENESS and EFFICIENCY of work method and reduce costs while maintaining delivery of customer value Man Machine Material INPUTS PROCESSES Product/ Service OUTPUTS Work Method

16. A Typical Value Stream Mapping

17. Problem Solving by Level Strategies Business Objectives Financial Performance Goals Ops/Project Plants Budgets Action Plans Production Schedules Targets Assignments Rates/Due Dates Standards Executive Manager Supervisor Team Leader Staff Team “ Good thinking.” “ Good Products.” A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D

18. Local Suppliers Local Vendor Vehicle Imported Parts Out side Container Yard Line Side Storage

19. Receipt Area 6.4 days Blanking 30 sec 0.5 day 50 sec 1 day 60 sec 2 days Forming Grinding Assembly 240 sec 2 hour Inspection Changing from Pallet to Bin 3 hours 15 mts 30 mts Oil spray 2 hours 20 mts loading Activity time Waiting time Value stream Mapping – Inhouse component – Part Number -03021508 / 03021510 1 day 1 day 1 hour Once assembly is over – the parts will be inspected, oil sprayed and directly put in to IMCT delivery bins 41 minutes 2.5 days

20. Any Questions?

21. Part 2- Warehouse Selection

22. New Warehouse Proposal Form Warehouse Particulars 1 Address 2 Details of the owners Represented by: 3 Present contact address 4 Description of Land 5 Original Owners 6 Description of Building a) Age of the building No. of Years: b) Building dimensions Area Length Width Height i) Total Area ii) Warehouse area iii) Office area iv) Open area c) Height from the Ground level d) Fencing 7 Type of roof 8 Type of Flooring Load bearing capacity: 9 Warehouse Layout Enclosed

23. 10 Specific details a) Power:(KVA) i) Capacity ii) No. of phases 11 Lighting points & Fittings Tube Lights Fans LAN a) Lighting points b) Fittings i) Warehouse area ii) Office area 12 Generator facility 13 Water source a) Storage capacity 14 Toilets 15 Drinage ( Open / Closed ) 16 A/C Provision 17 Telephone connections 18 Approach road width 19 Distance from Customer point / hub 20 Waste disposal area ( in sq.ft. ) 21 Kms. From the nearest bus stop Place: Distance: 22 Kms. From the bus station Place: Distance: 23 Kms. From the Railway station Place: Distance: 24 Nearest Airport Place: Distance: 25 Nearest Police Station Place: Distance: 25 Ramp - Loading facility

24. B. Check list Sl. No Documents / Details to be checked Copy obtained Deed dated Enclosure Remarks 1 Original sale deed a) Title of the lessor b) Provision for sub-letting c) Conditional clauses (if any) 2 Previous tenent 3 Payment status Status Upto Date Remarks a) Electricity payments Cleared / Pending b) Water cess Cleared / Pending c) Property tax Cleared / Pending d) Corporation / Panchayat tax Cleared / Pending e) Telephone dues Cleared / Pending 4 ESI -Notified area YES / NO 5 Shop Act Notified Area YES / NO 6 Octroi Limits YES / NO Describe which limit: 7 Catering facility YES / NO Distance from the warehouse :

25. C. Physical Verification: Verification report Checked Remarks 1 Power connection Yes / No 2 Functioning of Fittings Yes / No 3 Telephone Yes / No 4 Water line & Pipes Yes / No 5 Motor Yes / No 6 Toilets Yes / No 7 Floor damages Yes / No 8 Walls damages Yes / No 9 Painting Yes / No 10 Doors & Windows Yes / No 11 12 13 14 15

26. S No D.Financial Deals / Negotiations 1 Rentals Proposed by the owner Date Rate / sq. ft Done by / Remarks a) Warehouse Area b) Office Area c) Open Area d) Amenities e) Fixed Rentals f) Total f) Advance / security deposit No of months Amount Remarks Particulars 2 Final Negotiation a) Warehouse Area Done by / Remarks b) Office Area c) Open Area d) Amenities e) Fixed Rentals f) Total f) Advance / security deposit No of months Amount Remarks Particulars a) Brokerage (if any) Name of the broker 3 Contract period 4 Seperation clause 5 Date of possession 6 Agreement Responsibility Due on Remarks Agreement Processing

28. Various SCM Models

29. Any Questions?

30. Part 3 Modern Warehousing with Automation

33. Products : Overview Intelligent Vehicles (AGV, RGV, LGV) Conveyor System Inventory Computer System Stacker Crane Storage Rack Sorter DPS APS Gantry Robot Palletizer B C D A E F G H I J A B C D E J F I G H

35. Warehouse Handling

45. Car Engine (Warehousing) Beer (Warehousing) DPS(Digital Picking System)

46. Tyre (Warehousing) AGV (Automated Guided Vehicle Paper reel handling

47. (note) TD : stands for Traslo Device. Traslo is Italian which means 'transfer‘ Cage with trolley Car Parking Solution Robot Parking TD

48. Part 4 - M atrices

50. Matrices – Transportation Performance Measure Formula Unit On-Time Delivery On-Time Delivery Total Delivery Days Damage Shipment Damage Total Shipment Value Demurrage Demurrage cost Total transportation cost Value Freight Bill Accuracy Bill Error Total transportation cost % Value Freight cost per unit shipped Total Freight Cost No. of units shipped Outbound freight costs as % of net sales Outbound freight cost Net sales Inbound freight costs as % of Purchases Inbound freight cost Purchase cost

51. Matrices – Transportation Performance-(Contd) Measure Formula Unit Transit Time accuracy Actual transit time Standard transit time agreed % of truckload capacity utilized Total volume/weight shipped Maximum Load capacity Truck Turnaround Time Measure between arrival of the truck & its departure No. of carriers per mode Total number of carriers used in a given period, by mode Shipment visibility/traceability % Total No. of shipments via carriers with order tracking system Total No. of shipments sent during a period On-Time pickups No. of Pickups on time Total No.of shipments

52. Matrices – Full Fillment Performance Measure Formula Unit On Time Delivery Orders on Time Total Orders shipped Order Fill Rate Orders filled complete Total Orders shipped Order Accuracy Error Free Orders Total Orders Shipped Line Accuracy Error Free Lines Total Lines Shipped Order Cycle Time Actual ship date-Customer order date Line Count Fill Rate No. of order lines shipped Total No. of lines ordered SKU Fill rate No. of SKUs shipped in the initial shipment Total No. of SKUs ordered

53. Matrices – Inventory Performance Measure Formula Unit Inventory Accuracy Actual Qty. per SKU System reported Qty Damaged Inventory Total damaged value Total inventory value Inventory Turns (Inventory Turnover) Annual cost of Sales Average Inventory Level Inventory Months of Supply Inventory on hand Average monthly usage

54. Matrices – Warehouse Performance Measure Formula Unit Orders per hour Orders picked/packed per hour Total WH labour hours Lines per hour Lines picked/packed per hour Total WH labour hours Order Accuracy Error Free Orders Total Orders shipped Line Accuracy Error Free Lines Total Lines Shipped Order Cycle Time Actual ship date-Customer order date Perfect Order Completion Perfect Deliveries Total Orders Shipped

56. KANBAN SYSTEM - INTRODUCTION Kanban Benefits: Pull System Reduces Inventory Improves Material Flow Simplifies Operations Allows Visibility into the schedule Reduces or eliminates unexpected Visual tracking and Control Schedule changes

57. Card Card Card Card Card Card Card Card Card Card Card Card Card Card Card SUPPLIERS RECEIVING STORES ASSEMBLY CARD DROP BOX & TRIGGER Card Card Card Transport

58. Step 1 : Place the “Kanban Card” on the Side Face of the Carton Step 2 : Fix “Kanban Card” on the Carton using Transparent adhesive tape Step 3 : “Kanban Card” on the Carton fixed properly Fix “KANBAN CARD” On Carton Box

59. G8D Guidelines & Process Objectives

62. Objectives " What is wrong with what" Describe the problem in quantifiable terms Use only one G8D per problem D2 Describe the problem Small group Product/process knowledge Team leader Team synergy D1 Team As per symptom, provide Emergency Response Action to protect the customer Initiate the G8D process D0 Symptom

63. Objectives cntd... Implement ICA to isolate the effects of problem until PCA Formal temporary Fix Validate effectiveness Optional step "Buy Time" to solve the root cause of the problem Contain the problem from a cost, quality, timing perspective Works against the problem, not the root cause Increases costs while the ICA is used. D3 Interim Containment Action (ICA)

64. Identify the root cause Cause and effect diagram Potential root cause list The single verified reason that accounts for the problem Escape point The earliest location in the process, where the problem should have been detected, but was not Problem solving step D4 Root cause/escape point Objectives cntd...

65. Making the best decision, based on benefits and risks Verify that the choice will work Not rushing into implementation More than one PCA may be required to resolve 100% of the problem D5 Chosen Permanent Corrective Action Remove ICA Implement decision made at D5 Cross functional participation Update all the documents, procedures etc Train the workforce Seek feedback from the customer D6 Implement Permanent Corrective Action (PCA) Objectives cntd...

66. Modify necessary systems (Practices/Procedures) to prevent recurrence of this problem or a similar problem The goal is to change the system that allowed the problem to occur in the first place Enables lessons learned can be shared Conserves resources by saving rework on other problems D7 Prevent recurrence Complete the team experience Sincerely recognize both team and individual contributions Encourage a repeat of the behavior D8 Recognize Team Objectives

67. G8D Report-Illustration

68. 5S CONCEPT OF HOUSE KEEPING

88. General Warehouse Practices & Visual Display

89. Proper Stacking

90. Empty Clearance

92. Dust Bins Hazardous/Non Hazardous Safety Corner

96. FIFO – Not maintained Stage –1 Stage -2 Stage -3 FIFO sticker FIFO sticker kept On wrong side FIFO sticker not Visible.

97. Stacking & Retrieving Retrieve and Replenish always from Left to Right

98. Wrong Way of Stacking Box kept wrong way Safety issue