space and inventory managemet program at panasonic india warehouse
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1
NAVNEET KUMAR DWIVEDI
MM1416516
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Study of warehouse operations and suggest
improvement program for space and inventory
management
Introduction Company Profile Need for Project Objectives and Scope Warehousing Operations Research Methodology Research Design Improvement Program Data Collection and Data Analysis Improvement Program Recommendation and Benefits Conclusion and Future Scope Key learning and Difficulties
Content
3Introduction: Project Overview
Objective of the project is to carefully observe different working areas of warehouse
and identify areas with scope of improvement and suggest improvement plan.
For the purpose of project study floor space management and inventory management
is selected for improvement program. Major problem faced are: lack of floor space
and mismatch in system vs. actual stock and unavailability of material at given
location. To resolve these problems improvement programs are suggested after
studying their current space utilization, sales volume and sales value. Also there ERP
system is studied to find shortcomings in system and suggest improvement program
and compile benefits to be achieved by organization.
4Company Profile
Panasonic India Pvt. Ltd.
Subsidiary unit of Panasonic Corporation, Japan
Worldwide, Panasonic Corporation and its subsidiaries are guided by a
basic business philosophy created by founder Konosuke Matsushita
Panasonic commenced its operations in India in the year 1972.
Panasonic India corporate office is located in Gurgaon, Haryana
Mr. Daizo Ito joined as CEO Panasonic India in 2008
5Company Philosophy & Vision
Mission "Recognizing our responsibilities as industrialists, we will devote
ourselves to the progress and development of society and the well-being of
people through our business activities, thereby enhancing the quality of life
throughout the world."
Vision Panasonic will make a contribution to realizing “A Better Life, A Better
World” for each and every one of our customers.
6Business Segment & Presence in India
Business Segment
Appliances
Eco Solutions
AVC Networks
Automotive & Industrial
Systems
Panasonic group companies in India
Panasonic AVC Network India
(TV)
Panasonic Home Appliances
Panasonic Energy India
Panasonic Carbon India
Anchor Electronics.
7
Panasonic India has 26 warehouses and out of these four are
designated as regional hub. These are:
Delhi
Mumbai (Bhiwandi)
Chennai (Guindy)
Kolkata
8Need for Project
Need of the project arises in order to understand the operations of
warehouse and suggest improvement programs to resolve difficulties
faced by organisation
Mismatch of System vs. Actual Stock; WMS vs. Oracle
Unavailability of Stock at defined location in system (WMS)
Lack of storage space during peak load season
Unavailability of policies for stock count cycle
9Objectives and Scope
Objectives
Study of complete warehouse operations
To suggest improvement program in floor space management
To suggest improvement program in inventory management
Scope
Scope of study and improvement program is restricted to Mumbai (Bhiwandi)
warehouse of Panasonic India which is one of the four regional hubs of the company
Study is done considering both the operations T1 and T2
10Warehousing Operations
T1 Operations is related to upcountry stock transfer or stock movement, this include transfer of stock from Mumbai warehouse to other warehouses or other regional hub.
T2 Operations is related to local sales which includes dispatch of stock to local distributors and wholesalers it also include dispatch to local service centres.
Oracle Business suite is ERP software and 4Se is their front end WMS software
Average monthly sale T2 operations is approx. ₹30 Cr
11Key Performance Indicators
On time shipment confirmation
On time delivery
On time delivery update
On time proof of Delivery (POD)
Logistics RMA
Damaged Material
12Warehousing Process
All activities being handled at warehouse can be classified in following processes:
Receipt of material
Dispatch of material
Management of inventory in warehouse
Handling of return/replaced material
Documentation of activities
13Receipt of material Port (Imported
Material) Factory (manufactured
within country) Stock Transfer
Dispatch of material T1 Operations T2 Operation Service Centre
Accounting of inventory in warehouse Daily stock verification
Handling of
damaged/return/replaced material Damage Return from dealer
In transit damage
Replacement of Material under warranty
Damage Material Received
14Research Methodology
Studying current situation of the organisation and listing all the difficulties faced
Complete project can be studied on the basis of 5S tools i.e. sorting, set-in-
order, shine, standardize, systematize.
Sorting: Sorting out the need and want or value added and non-value added.
Set-in-order: Systematic arrangements of needs.
Shine: Spic and Span cleanliness Inspection.
Standardize: Standardizing the process to maintain above three S1, S2, and S3
Sustain: Self-discipline and training
15Research Design - Space ManagementSpace Utilization
When an organization finds it has storage space concerns, it can benefit from looking at two different but related elements of space utilization
The storage capacity of the building itself,
that is directly a function of the physical aspects
of the layout, the width of the aisles, the storage
methods, the types of storage aids, etc.; and
How well the storage capacity is being
utilized, that is directly a result of how these
resources are managed.
16Data Collection and Data Analysis
AA12 AB12 AC16 AD16 AE16 AF16 AG16 AH16 AI16 AJ16
AA11 AB11 AC15 AD15 AE15 AF15 AG15 AH15 AI15 AJ15
AA10 AB10 AC14 AD14 AE14 AF14 AG14 AH14 AI14 AJ14
AA09 AB09 AC13 AD13 AE13 AF13 AG13 AH13 AI13 AJ13
AA08 AB08 AC12 AD12 AE12 AF12 AG12 AH12 AI12 AJ12
AA07 AB07 AC11 AD11 AE11 AF11 AG11 AH11 AI11 AJ11
AA06 AB06 AC10 AD10 AE10 AF10 AG10 AH10 AI10 AJ10
AC09 AD09 AE09 AF09 AG09 AH09 AI09 AJ09
AC08 AD08 AE08 AF08 AG08 AH08 AI08 AJ08
AC07 AD07 AE07 AF07 AG07 AH07 AI07 AJ07
AC06 AD06 AE06 AF06 AG06 AH06 AI06 AJ06
AC05 AD05 AE05 AF05 AG05 AH05 AI05 AJ05
Scope for Improvement
Area 1
Scop
e fo
r Im
prov
emen
tA
rea
2
AC04 AD04 AE04 AF04 AG04 AH04 AI04 AJ04
AC03 AD03 AE03 AF03 AG03 AH03 AI03 AJ03
AC02 AD02 AE02 AF02 AG02 AH02 AI02 AJ02
AC01 AD01 AE01 AF01 AG01 AH01 AI01 AJ01
Scop
e fo
r Im
prov
emen
tA
rea
2
Dock 01 Dock 02 Dock 03 Dock 04 Dock 05
17 Sample area marked as A1 is selected for our study,
major reason for selecting this area being poor utilisation of vertical space
Area A1 = 35 ft * 72 ft
~ 2500 sq. ft
Theoretically available space in cube = Length *Width* Height up to which stacking can be done
= (72*37*7) cu.ft
= 18650 cu.ft
Total floor space used = 37’ * 72’
= 2664 sq.ft
~ 2600 sq.ft
Now, actual utilization can be calculated as volume of goods actually stored in the bin.
AA05 AB 05
AA04 AB 04
AA03 AB 03
AA02 AB 02
AA 01 AB 01
37 ft
72 ft
18 Stock of selected bins (AA01, AA02, AA03, AA04, AA05, AB01, AB02,
AB03, AB 04, and AB05) is taken from WMS and then their volume is measured
File Link
19
Actual volume of material stored in bins = 3630 cu.ft
Thus Current cube/space Utilisation
= (Actual volume occupied/Available Cube Space)
= 3630/18650
= 20%
This poor cube utilisation not only results in
wastage of space but it also results in financial
loss in terms of rent paid for unutilised space.
Approx. Monthly Rent = ₹ 9.5/
sq.ft
Area under consideration (A1)= 2600 sq.ft
Monthly Rent = ₹ (2600*9.5)
~ ₹ 25,000
Rent Paid for unutilized space = (80% *
2500)
= ₹ 20,000
20Improvement Program
Implementation of Racking System
Considering racking system this cubic space can be divided in smaller storage units. Dividing
storage area in smaller area will result in better utilization of space as space in vertical direction can
also be utilized.
Considering six racks of dimension (5’ * 35’ * 7’) to be installed
Assumptions
Small shelves of 2 ft. is utilized up to 60%
Large shelves of 3 ft. is utilized up to 70%
Space without rack is utilized more than 40% as small materials are removed and stored in racks.
21
Now we have 50% of area under racking system and 50% without racking system
22 Total volume occupied in new system= Volume 1 +Volume 2
Volume 1: Area without space
Volume2: Area with racking system
Volume occupied = Length * Breadth* Height* Utilization
Volume1 = (18’ * 72’ * 7’) * 40%
~ 3630 cu.ft
Volume = (5’ * 35’ * 1’) * 60% * 6 *2 +
(5’ * 35’ * 2.5’) * 70% * 6 *2
= 1470 + 4200
~ 9300 cu.ft
Thus new cube/space Utilization
= (Actual volume occupied/Available Cube Space)
= (9300/18650)
~ 50%
23 Monetary Benefit => Money Spent (as rent) on unused space under new
system
= 50% of ₹ 25000
= ₹ 12500
Monthly saving = ₹ 20000 – ₹ 12500
~ ₹ 7000/-
With reference to quotation received for construction of racks we can
calculate approximate payback period.
Approx. Quote Received ~ ₹ 200000/-
Average Monthly Saving ~ ₹ 7000/-
Payback period ~ (200000/7000) = 28 months i.e. 2.3 years
24Research Design - Inventory Management
Pareto analysis is used to identify vital few items and trivial many, similarly ABC is
used to classify items in different categorise depending upon their sales value
Pareto Analysis to conduct this analysis sales record of past one financial year
(Apr’14 to Mar’15) is collected. It is observed that sales of different item group don’t
remain same throughout the year; it varies as per season and time period of year
In order to have uniformity in sales yearly sales record is divided in quarterly sales
record. Then on these quarterly sales record Pareto analysis is done to identify vital
few of every quarter.
25
Weightage is given to different items depending on contribution of that
particular item towards sales in that particular quarter. Final score is
calculated by multiplying ranking with weightage
This list with ranking is used to design layout of warehouse
ABC Analysis again for this analysis also sales record is used. ABC
analysis is done on the basis of sales value of different value. Once items
are classified in different categories then it can be used to define policies
related to frequency of stock count of different item group.
26Data Collection and Data Analysis
For analysing stock movement we need to collect record of stock movement, this
can be retrieved from their sales record. For the purpose of project sales record of
one year (Apr 2014 to Mar 2015) is analysed
Invoice Number
Invoice date
Party Name Sales Channel Item BP GroupProduct
CategoryQty Gross Price Total So No. Branch Order Type
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CS-S18PKYP Room Aircon Indoor 1 22246.7 21715 62595729 Mumbai PSIN PAN Non Consol Trade
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CS-YS18PKYP Room Aircon Indoor 1 18281.94 17845.01 62595729 Mumbai PSIN PAN Non Consol Trade
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CU-YS18PKYP Room Aircon Outdoor 1 27744.49 27081.39 62595729 Mumbai PSIN PAN Non Consol Trade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CU-KC12QKY Room Aircon Outdoor 3 20475.77 59262 62595631 Mumbai PSIN PAN Non Consol Trade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CS-KC12QKY Room Aircon Indoor 3 13436.12 38887.49 62595631 Mumbai PSIN PAN Non Consol Trade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CU-XC12QKY Room Aircon Outdoor 2 23559.47 45457.99 62595631 Mumbai PSIN PAN Non Consol Trade
30551 07-Apr-14 VIJAY SALES-CPD MASS NR-BW465XSX4 Fridge 400 Litre 1 56555.07 51352.01 62596556 Mumbai PSIN PAN Non Consol Trade
30536 07-Apr-14 RELIANCE RETAIL LIMITED MASS TY-STLCDL - 19" Others Accy 6 1 6.75 62595543 Hyderabad PSIN PAN Non Consol Trade
30536 07-Apr-14 RELIANCE RETAIL LIMITED MASS TH-23A400DX LCD 18" to 24" 6 12246.7 70056.02 62595543 Hyderabad PSIN PAN Non Consol Trade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CS-UC18QKY3 Room Aircon Indoor 8 13436.12 97600.05 62595646 Hyderabad PSIN PAN Non Consol Trade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CU-UC18QKY3 Room Aircon Outdoor 8 20255.51 147136.06 62595646 Hyderabad PSIN PAN Non Consol Trade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CS-KC12QKY Room Aircon Indoor 4 13436.12 48800.03 62595646 Hyderabad PSIN PAN Non Consol Trade
.. .. .. .. .. .. .. .. .. .. . .. ..
.. cont.. .. .. .. .. .. .. .. .. . .. ..
.. .. .. .. .. .. .. .. .. .. . .. ..
27
Row Labels Sum of Quantity Sum of Total ( ₹ ) AIO Printer 1652 7701135.99
AV Accy 5422 3201195.97
Broadcast 1664 224780154.6
CCVE 3547 46839303.03
Digital Still 1173 51429495.39
DLP Projector 2061 102095987
DVD 602 1176985.33
Fax 805 4686836.97
Fridge 3966 116257514
HD Com 198 10950880.42
Hifi 796 3312708.67
IP Camera 6 85387.5
LCD 42252 1083543962
LCD Projector 1479 88724221.1
Movie 2118 108308324.6
MWO 9094 89610519.86
Solar Product 150 154461.94
TEL 85730 106912530.1
Toughbook 178 13103175.69
UA 13123 281503.08
VRF 293 6042198.84
Washer 15971 233971538.2
Water Purifier 89 871660.92
Grand Total 340479 ₹ 357,58,38,906
File Link
28
Sr No. Row Labels Sum of Quantity Sold Cumulative
Quantity
Cumulative
Percentage
1 TEL 33643 33643 34.22%
2 Room Aircon 25776 59419 60.43%
3 Pana Beauty 14251 73670 74.93%
4 LCD 6834 80504 81.88%
5 PBX 3972 84476 85.92%
6 Washer 3279 87755 89.26%
7 UA 1839 89594 91.13%
8 MWO 1505 91099 92.66%
9 Fridge 1086 92185 93.76%
10 DLP Projector 923 93108 94.70%
11 LCD Projector 901 94009 95.62%
12 Small HA 888 94897 96.52%
22 Panaboard 27 98248 99.93%
23 Plasma Accy 26 98274 99.95%
24 Water Purifier 26 98300 99.98%
25 Hifi 17 98317 100.00%
26 Plasma 2 98319 100.00%
Total 98319
Sr No. Row Labels Sum of Quantity Sold Cumulative
Quantity
Cumulative
Percentage
1 TEL 43111 43111 40.26%
2 LCD 15808 58919 55.02%
3 Pana Beauty 15762 74681 69.74%
4 Room Aircon 8626 83307 77.80%
5 PBX 5693 89000 83.12%
6 UA 5091 94091 87.87%
7 Washer 4731 98822 92.29%
8 MWO 2740 101562 94.85%
9 Fridge 1302 102864 96.06%
10 CCVE 718 103582 96.73%
11 DLP Projector 494 104076 97.20%
12 Broadcast 467 104543 97.63%
13 AIO Printer 428 104971 98.03%
25 Toughbook 23 107059 99.98%
26 Plasma Accy 7 107066 99.99%
27 IP Camera 6 107072 99.99%
28 Hifi 5 107077 100.00%
29 Plasma 2 107079 100.00%
Total 107079
First and Second Quarter Sales Record-Pareto Analysis
29 Third and Fourth Quarter Sales Record-Pareto Analysis
Sr No. Row Labels Sum of Quantity Sold Cumulative
Quantity Cumulative Percentage
1 Pana Beauty 23055 23055 31.49%
2 LCD 11775 34830 47.58%
3 Room Aircon 9930 44760 61.14%
4 TEL 6231 50991 69.65%
5 Washer 4582 55573 75.91%
6 PBX 4458 60031 82.00%
7 UA 3953 63984 87.40%
8 MWO 2611 66595 90.97%
9 Fridge 962 67557 92.28%
10 Small HA 916 68473 93.53%
11 Movie 846 69319 94.69%
12 CCVE 559 69878 95.45%
27 Toughbook 5 73201 99.99%
28 Plasma 2 73203 100.00%
29 VRF 2 73205 100.00%
30 Small KA 1 73206 100.00%
Total 73206
Sr No. Row Labels Sum of Quantity Sold Cumulative
Quantity
Cumulative
Percentage
1 Room Aircon 14414 14414 23.29%
2 Pana Beauty 13852 28266 45.68%
3 LCD 7835 36101 58.34%
4 AV Accy 5422 41523 67.10%
5 PBX 3970 45493 73.52%
6 Washer 3379 48872 78.98%
7 TEL 2745 51617 83.41%
8 UA 2240 53857 87.03%
9 MWO 2238 56095 90.65%
10 CCVE 1496 57591 93.07%
11 Fridge 616 58207 94.06%
12 AIO Printer 445 58652 94.78%
13 Plasma Panel 375 59027 95.39%
29 PPC 6 61874 99.99%
30 Water Purifier 3 61877 99.99%
31 Plasma Accy 2 61879 100.00%
32 Plasma 1 61880 100.00%
33 Small KA 1 61881 100.00%
Total 61881
30 Summary of Pareto analysis done
34%
26%
14%
7%
4%3%
2%
2% 1%6%
Ist Qtr SalesTEL
Room Aircon
Pana Beauty
LCD
PBX
Washer
UA
MWO
Fridge
Others
40%
15%
15%
8%
5%
5%
4%3%1%
4%
II nd Qtr Sales
TEL
LCD
Pana Beauty
Room Aircon
PBX
UA
Washer
MWO
Fridge
Others
31%
16%
14%
9%
6%
6%
5%
4%1%
8%
III rd Qtr Sales
Pana Beauty
LCD
Room Aircon
TEL
Washer
PBX
UA
MWO
Fridge
Others
23%
22%
13%
9%
6%
5%
4%
4%4%
2% 1%6%
IV th Qtr SalesRoom Aircon
Pana Beauty
LCD
AV Accy
PBX
Washer
TEL
UA
MWO
CCVE
Fridge
Others
31Improvement Program
After doing Pareto Analysis of quarterly sales
record, it is being observed that only few
items are responsible for major sales (80-20
relation). This observation of vital few and
trivial many can be used to design the layout
of warehouse, vital few to be stored near to
the docks and remaining trivial items in
farther part of warehouse
Item WtgTEL 34.22%Room Aircon 26.22%Pana Beauty 14.50%LCD 6.95%PBX 4.04%TEL 40.26%LCD 14.76%Pana Beauty 14.72%Room Aircon 8.06%PBX 5.32%Pana Beauty 31.49%LCD 16.08%Room Aircon 13.56%TEL 8.51%Washer 6.26%PBX 6.09%Room Aircon 23.29%Pana Beauty 22.38%LCD 12.66%AV Accy 8.76%PBX 6.42%Washer 5.46%TEL 4.44%
Row Labels Sum of Wtg RankTEL 87.43% 1Pana Beauty 83.09% 2Room Aircon 71.13% 3LCD 50.46% 4PBX 21.86% 5Washer 11.72% 6AV Accy 8.76% 7
Vital Few Items
Row Labels Sum of WtgTEL 87.43%Pana Beauty 83.09%Room Aircon 71.13%LCD 50.46%PBX 21.86%Washer 11.72%AV Accy 8.76%
Vital Few Items
32Layout Design
It is clear from above analysis that only 20% of material are
responsible for 80% of quantity dispatched, thus we need to take
proper care in arranging these material in warehouse so as to have
ease of access of material and assist in fast loading unloading activity
These materials need to be stored near to dock (loading and unloading
area). Also materials need to be stored in different product bay so as
to have ease of access and prevent mismatch of quantity in different
bin location
33AA12 Misc Misc
AB12
AC16 FR 1 FR 6
AD16
AE16 FR11
AF16
AG16
AH16
AI16
AJ16
AA11 Misc Misc
AB11
AC15 FR 2 FR 7
AD15
AE15 FR12
AF15
AG15
AH15
AI15
AJ15
AA10 Misc Misc
AB10
AC14 FR 3 FR 8
AD14
AE14 FR13
AF14
AG14
AH14
AI14
AJ14
AA09 DVD 1 DVD 3
AB09
AC13 FR 4 FR 9
AD13
AE13 FR14
AF13
AG13
AH13
AI13
AJ13
AA08 DVD 2 DVD 4
AB08
AC12 FR 5 FR 10
AD12
AE12 FR15
AF12
AG12
AH12
AI12
AJ12
AA07 Purifier Puridfier
AB07
AC11 MWO 1 MWO 3
AD11
AE11 FR16
AF11
AG11
AH11
AI11 Pkg AC 1 Pkg AC 2
AJ11
AA06 Purifier Purifier
AB06
AC10 MWO 2 MWO 4
AD10
AE10 WM 1 WM 4
AF10
AG10 WM 7 WM 9
AH10
AI10 WM 11 Pkg AC 3
AJ10
AA05
AB05 AC
09 Hifi 1 Hifi 3
AD09
AE09 WM 2 WM 5
AF09
AG09 WM 8 WM 10
AH09
AI09 WM 12 Pkg AC 4
AJ09
AA04
AB04 AC
08 Hifi 2 Hifi 4AD
08
AE08 WM 3 WM 6
AF08
AG08 Plasma 1 Plasma 2
AH08
AI08 LCD 16 LCD 18
AJ08
AA03
AB03 AC
07 LCD 1 LCD 6AD
07
AE07 LCD 8 LCD 10
AF07
AG07 LCD 12 LCD 14
AH07
AI07 LCD 17 LCD 19
AJ07
AA02
AB02 AC
06 LCD 2 LCD 7
AD06
AE06 LCD 9 LCD 11
AF06
AG06 LCD 13 LCD 15
AH06
AI06 LCD 18 LCD 20
AJ06
AA01
AB03 AC
05 LCD 3 AC ID 1
AD05
AE05 AC ID 4 AC ID 6
AF05
AG05 AC ID 8 AC ID 10
AH05
AI05 AC ID 12 AC ID 15
AJ05
Misc
Are
a for
Stan
d, Tr
avel
Bag,
Pack
agin
g Mat
erial
, AC
Units
etc.
Prop
osed
Rac
k
Space for Telephone,
Pana beauty, PBX AV Accy,
Movie, Projector
other misc SSD items
Misc: Space for other miscellaneous material, Aging products, reserve
storage for Type A material during peek
demand period
MiscMisc
AC04 LCD 4 AC ID 2
AD04
AE04 AC OD 12 AC OD 13
AF04
AG04 AC OD 14 AC OD 15
AH04
AI04 AC ID 13 AC ID 16
AJ04
AC03 LCD 5 AC ID 3
AD03
AE03 AC ID 5 AC ID 7
AF03
AG03 AC ID 9 AC ID 11
AH03
AI03 AC ID 14 AC ID 17
AJ03
AC02
AC OD 1
AD02
AE02 AC OD 2 AC OD 4
AF02
AG02 AC OD 6 AC OD 8
AH02
AI02 AC OD 10
AJ02
AC01
Reserve Space for Stacking AD
01
AE01 AC OD 3 AC OD 5
AF01
AG01 AC OD 7 AC OD 9
AH01
AI01 AC OD 11 Reserve Space for
Stacking AJ01
Dock 05 T1
Misc
Are
a for
Stan
d, Tr
avel
Bag,
Pack
agin
g Mat
erial
, AC
Units
etc.
Dock 01 T1/T2 Dock 02 T1/T2 Dock 03 T1 Dock 04 T1/T2
AC Indoor
AC Outdoor
LCD?Plasma
Washer
Hifi
MWO
FRZ
Pkg AC
Purifier
DVD
Misc
Reserve Space for Stacking
File Link
34 Stock Count Policy
Sr No Item Sum of Total Cumulative
Quantity Cumulative Percentage
ABC Classification
1 LCD 1083543962 1083543962 30.30% A
2 Room Aircon 920387668 2003931630 56.04% A
3 Washer 233971538 2237903168 62.58% A
4 Broadcast 224780155 2462683323 68.87% A
5 PBX 148313269 2610996592 73.02% A
6 Fridge 116257514 2727254106 76.27% B
7 Movie 108308325 2835562430 79.30% B
8 TEL 106912530 2942474960 82.29% B
9 DLP Projector 102095987 3044570947 85.14% B
10 Plasma Panel 99688294 3144259241 87.93% B
11 MWO 89610520 3233869761 90.44% B
12 LCD Projector 88724221 3322593982 92.92% B
22 Fax 4686837 3562313329 99.62% C
23 Panaboard 4201441 3566514771 99.74% C
24 Hifi 3312709 3569827479 99.83% C
25 AV Accy 3201196 3573028675 99.92% C
26 DVD 1176985 3574205661 99.95% C
27 Water Purifier 871661 3575077322 99.98% C
28 UA 281503 3575358825 99.99% C
29 Plasma Accy 183886 3575542710 99.99% C
30 Solar Product 154462 3575697172 100.00% C
31 IP Camera 85388 3575782560 100.00% C
32 Plasma 42893 3575825453 100.00% C
33 PPC 13202 3575838655 100.00% C
34 Small KA 251 3575838906 100.00% C
Total 3575838906
Item Class No of ItemA-Class 5B-Class 8C- Class 21
35
36
Thus after classification count cycle can be defined for different
category of items:
A Class Item: Daily Stock Count
B Class Item: Weekly Stock Count
C Class Item: Fortnightly Stock Count
37Recommendation and Benefits to the organisation
Based on Project Study
Use of Racking system: this will increase space utilisation from current 20% to
50% and storage volume will increase by 5670 cu.ft
Storing items in warehouse as per priority basis (Pareto analysis-
quantity sold): Will result in easy location of item and will also reduce loading
and unloading time
Defining Stock count policy based on ABC analysis (value of item sold):
This will reduce time consumed in daily stock count
Use of bin card system: This will hepl in improving the analysis of stock
movement in terms of Fast Slow Non-Moving Items
38
Based on World-class warehousing practices
Use of barcode system for online updating of stock
Implementation of light guidance system to assist picking
operation
Updating volume data in ERP for real time calculation of
space utilisation
39Conclusion and Future Scope
This project was a great learning experience for me. This was a great
opportunity as I was exposed to working in a dynamic and challenging
workplace and was fortunate to have a project here.
By implementing these programs on space utilisation and inventory
management organisation will be able to overcome its problem of
shortage of space and will be able to increase its performance efficiency.
These programs will not only help in increasing efficiency but will also
give monetary benefits in terms of savings on rent paid.
40Future Scope
On the similar line of space utilisation, racking system can
be implemented in other bin location and other warehouses
Different layouts can be designed for all different quarters
based on Pareto analysis as further improvement along with
FSN analysis
41Key learning and Difficulties faced
Key Learning Knowledge of Warehouse operation
Implementation of Operations Management tools like Pareto analysis, ABC Analysis
Logistics Planning
Difficulties Faced Sales of not being constant, it was difficult to analyse data and infer conclusion
No data for FSN analysis was available
Unavailability of automated material handling equipment
42
Thank you
43
Questions?
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