Space and Inventory Managemet Program at Panasonic India Warehouse

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







AC09 AD09 AE09 AF09 AG09 AH09 AI09 AJ09





Scope for Improvement

Area 1

Scop

e fo

r Im

prov

emen

tA

rea

2





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


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


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


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


AJ04

AC03 LCD 5 AC ID 3

AD03

AE03 AC ID 5 AC ID 7

AF03

AG03 AC ID 9 AC ID 11

AH03


AJ03

AC02

AC OD 1

AD02


AF02


AH02

AI02 AC OD 10

AJ02

AC01

Reserve Space for Stacking AD

01


AF01


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

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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Transcript of Space and Inventory Managemet Program at Panasonic India Warehouse