Samiksha Case Study

8/8/2019 Samiksha Case Study

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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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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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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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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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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

[email protected]

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

Samiksha Case Study

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