5. Stoarge Systems

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TVSM / PED / MSE / MHSE Slide 1 Storage Systems

description

storage sytem in india

Transcript of 5. Stoarge Systems

  • TVSM / PED / MSE / MHSE Slide 1

    Storage Systems

  • TVSM / PED / MSE / MHSE Slide 2

    Concept of Stores

    Storage of incoming materials

    Dispatch to Customer via

    Dealers

    What happens in an Industry ??

    Value Addition to materials and conversion to Final product

    Storage of Finished Vehicles

    Raw Materials from Suppliers

  • TVSM / PED / MSE / MHSE Slide 3

    Concept of Stores

    What is a Store?

    A storage point of physical resources that a firm holds in stock with the intent of selling it to the customer or transforming it into a more valuable state.

    The physical resources may be

    1.Raw Materials

    2.Works-in-Process

    3.Finished Goods

    4.Maintenance, Repair supporting tools

  • TVSM / PED / MSE / MHSE Slide 4

    Definition of Stores:

    Design of a Store plays a significant role in directly deciding the profit of the firm.

    How ? ? ?

    Concept of Stores

  • TVSM / PED / MSE / MHSE Slide 5

    1.Nearly 60% to 70% of a companys direct investment is in the form of raw materials. Hence, deciding how much quantity of material to be stored is vital.

    If Stores design allows for more stocks, then the amount of money locked up will be more, leading to inconvenient business situations.

    If the Stores design limits the stocks to minimal level, then smooth flow of materials to production line will be affected during critical times leading to Production losses.

    2.Implementation of Lean Production with the help of Kanban and JIT tools is possible only with a properly arranged Store.

    Concept of StoresHow Stores influence the Profit ??

  • TVSM / PED / MSE / MHSE Slide 6

    In First place, Why Storage is needed?

    As already said ,Storage of stocks is not encouraged, as it is practically equivalent to Capital Investment lying idle.

    However, an Inventory is a necessary evil that every organization would have to maintain for various purposes.

    Concept of Stores

  • TVSM / PED / MSE / MHSE Slide 7

    Why Storage is needed?

    1.The primary one is to meet variation in Production Demand.

    The Stored stock gives a buffer between demand and supply.

    Concept of Stores

    Stock giving a

    buffer between

    Supply and

    Demand

  • TVSM / PED / MSE / MHSE Slide 8

    Why Storage is needed?

    The various other reason are

    1.To Take advantage of Quantity Discounts in larger lots.

    2.To Reduce Transit Cost and Transit Times.

    3.To cover up for emergencies.

    4.To protect stock from pilferage, theft, evaporation, deterioration, sublimation .

    Holding inventories help to remain independent and free from vendor dependencies.

    Concept of Stores

  • TVSM / PED / MSE / MHSE Slide 9

    Types of Stores

    Stores are basically classified on the basis of

    1.Purpose to which the Stored material is put to use( Referred as FUNCTIONAL Stores)

    2.Size and the Location of Storage ( Referred as PHYSICAL Stores)

  • TVSM / PED / MSE / MHSE Slide 10

    The following are the types of Functional Stores.

    1.Raw materials store:Obviously , the Store where the raw materials are stored.

    This can be further classified as Castings store, Plastic parts Store, Bought Out parts store depending on the type of raw materials.

    2.Production Store:The point where Consumables needed for production are stored

    Examples for Consumables:Eye-shields, cutting oils, abrasives, gloves, aprons.

    Functional Stores

  • TVSM / PED / MSE / MHSE Slide 11

    Tools Store:Storage area for tools, files, measuring instruments, saws, hammers, pliers.

    Packing material store:Storage area for packing materials used for the packaging (Cartons, Steel

    structures, Wooden Pallets) .

    Functional Stores

  • TVSM / PED / MSE / MHSE Slide 12

    Spare parts store:Storage Area for spares usually required by Maintenance for repair or overhauling

    of equipment and machinery in the factory.

    Receipt Store:The materials arriving from the Vendors are retained here until they are inspected, finally accepted and sent on to the respective places for storage, or directly to where they will be used.

    Functional Stores

  • TVSM / PED / MSE / MHSE Slide 13

    Work-in-progress Store( Super Market Storage):

    -> Practically a particular shop produces an item in batches.

    The other shops might not be able to reach this figure or the actual quantity required might be less than the batch quantity.

    -> Hence the semi-finished units are kept in the WIP Store for future use.

    ->This is neither raw materials nor finished goods.

    Example:

    Painting unit paints 800 units/day

    Vehicle Assembly requirement is only

    700 units /day

    100 Units/day kept as WIP

    Work in Progress Stores

    Functional Stores

  • TVSM / PED / MSE / MHSE Slide 14

    Finished Goods store:Yeah, you guessed it right.

    Finished products of the company meant for despatch to customers or for transfer to another stock point or distribution center are kept here.

    Stationary store:Keeps office stationary items like pens, papers, pencils, notebooks, files

    issued to various departments of the company.

    Transit Sheds:These are normally roofed sheds without any walls and open on four sides

    and are mainly intended to protect goods from sun and rain

    Functional Stores

  • TVSM / PED / MSE / MHSE Slide 15

    Physical Stores

    1.Centralized stores :The Common store from which materials are supplied to all departments.

    2.Unit Stores or Decentralized Stores:In this case, storage is made at each of the respective processing Units.

    Examples:Machining Stores, Painting Stores, Assembly Stores.

    3.Centralized stores with sub-stores:There is one central store which holds the stocks in general with separate sub stores for each department which gets supply from the central stores.

    Based on Physical Location, stores are classified as

  • TVSM / PED / MSE / MHSE Slide 16

    Types of StoresCentralized stores:

    Advantages:

    1. Better control & layout.

    2. Less storage space is needed because stocks should be kept as low as possible.

    3. Stock taking and Audit is easier.

    4. As maintenance of record of same material need not be required in different departments, less clerical work, stationery & other costs is involved.

    Demerits:

    1. Cost of internal transport is higher.

    2. In the flow of materials to production, possibility of bottle-neck is there.

    3. Risk of obsolescence is greater.

    4. All the production departments are affected if any disturbance inside Stores occurs.

  • TVSM / PED / MSE / MHSE Slide 17

    Decentralized stores:

    Advantages:

    1. Cost of internal transport is avoided.

    2. Production is not affected by the disturbance in the central store.

    3. Delay in getting the issues can be avoided.

    4. Chance of obsolescence is lower.

    Demerits:

    1. Cost of organization & space is increased by separate cost for each department.

    2. Departmental members, in addition to their normal work, will have to maintain the store.

    3. Technical skill obtainable is less.

    Types of Stores

  • TVSM / PED / MSE / MHSE Slide 18

    In this case, a central store is located near the receiving department, & each department has a sub store with it. From the central store, the materials are received by the sub-store on imprest system & issues to the department are made.

    When, from the central store, work sites are fairly distant, this system is essential.

    Bottlenecks in the supply of materials for production are avoided by the system.

    However, the system is costlier than the centralized store.

    Types of Stores3.Centralized stores with sub-stores:

  • TVSM / PED / MSE / MHSE Slide 19

    What is an Inventory?

    Inventory refers to any kind of resource having economic value and is maintained to fulfill the present and future needs of the Organization.

    A few of them are Raw Materials, Semi Finished & Finished parts and Spare parts.Simply put, the materials which are being stored in the above mentioned Stores with an intention of Value Adding and Sales are Inventories.

    In addition to that, Human resources employed and financial resources are also a part of the Inventory.

    Example other than Manufacturing Industries:

    For a Hospital,Number of Beds, Stock of Drugs kept, Surgical equipments, Specialized personnel are the type of Inventories held.

    Inventory

  • TVSM / PED / MSE / MHSE Slide 20

    The inventories are classified into various types.

    Types of Inventories :

    Functionally Inventories are classified as

    1.Cycle (or Lot Size) Inventories

    2.Pipeline (or Transit) Inventories

    3.Safety or Buffer Inventories

    4.Seasonal Inventories

    5.Decoupling Inventories

    Inventories and types

  • TVSM / PED / MSE / MHSE Slide 21

    1.Cycle (or Lot Size) Inventories:

    This type of inventory exist when production is done in larger quantities than the actual immediate requirements needed to satisfy the Customer.

    This inventory quantity is based on

    1.Production Lot Size

    2.Economical Shipment Quantities

    3.Storage Space limitation

    4.Replenishment lead times

    5.Price Quantity Discount Schedules

    6.Inventory Carrying Cost

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 22

    2.Pipeline (or Transit ) Inventories:

    The inventories created during the transportation from the distribution centres to the Customers are called as Pipeline or Transit Inventories.

    Since movement cannot be Instantaneous, the quantity of Pipeline Inventory depends on

    1.Time required for Transportation

    2.Nature of Demand

    These are also referred to as process inventories ,as the materials are actually being worked on or moved between work centres.

    .

    Types of Inventories

    I am on the Way !

  • TVSM / PED / MSE / MHSE Slide 23

    Safety or Buffer Inventories:

    The inventories created as a protection against uncertainties of demand quantity and changes in delivery timings are called as Safety or buffer Inventories.

    The level of extra inventory is determined by trade off between protection against demand and supply uncertainties and the level of investment in safety stock.

    This will manage any unpredictable shortage with a high penalty cost.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 24

    Seasonal Inventories:

    The seasonal inventories is needed for products whose market exhibit seasonal patterns of demand and production varies with demand.

    The manufacturers face peak demand where the production facility is unable to meet the demand on a period by period basis.

    Thus, the seasonal inventories are built up in advance or procured during the period of low demand(on regular basis) to be used in the peak demand period.

    Types of Inventories

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  • TVSM / PED / MSE / MHSE Slide 25

    Seasonal Inventories:

    However, the amount of inventories to be produced to meet the unexpected demand should be determined by balancing the holding and shortage cost of seasonal inventories.

    Example:The sale of TVS Pep and TVS Apache will be more during the College opening seasons( April to July), than the regular days. Hence, seasonal inventories are built up in prior to the same.

    Other examples are agricultural products , calendars, and fashion items.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 26

    Decoupling Inventories:

    If various manufacturing processes operate successively, then in the case of breakdown of one or any disturbance at some stage can affect the entire system. This kind of Interdependence is minimized by stocking inventory between adjacent units.

    This kind of Inventories are called as Decoupling Inventories.

    They are further classified on the basis of

    1.Raw materials and component parts

    2. Work in Process Inventory

    3.Finished Goods Inventory

    4.Spare parts Inventory

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 27

    Decoupling Inventories:

    1.Raw Materials and Component Parts:

    This refers to the Inventory kept in the Raw materials store.The raw material inventory kept is used to decouple between the Supplier and the producer (Customer) against seasonal variations in demand and delay of supplier parts.

    2.Work in Process Inventory:Do you remember this Picture??

    This kind of Inventory stocked between production units are called as WIP Inventories.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 28

    Decoupling Inventories:

    3.Finished Goods Inventory:

    It is the inventory of the final products which could be released for the sale to the customers.The size of Inventory depends on Demand, Ability of the firm to sell the products, Shelf life of the product and storage capacity

    4.Spare Parts Inventory:

    These are the parts which are used in the production process, but do not become part of the product.The size of the inventory depends on average life of the components.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 29

    Inventory Control Analysis:

    Why Inventory Control Analysis is needed?

    ->In an organization where many no of items ( Say 15,000) are in its inventory listing, it is not possible to control all items closely.

    ->Usually only a few (about 10% by number) contribute to 70 to 80% oflocked up whose availability is vital for sustenance of the process.

    ->These vital few items can be segregated for the closer control to ensure productivity.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 30

    Distribution of Inventories in an Organization:

    Total contribution percentage

    Total no of parts

    The Vital

    few

  • TVSM / PED / MSE / MHSE Slide 31

    Inventory control Analysis:

    The inventory analysis models are classified on the

    1.Basis of Annual consumption as ABC Analysis

    2.Basis of Criticality of Production as VED Analysis

    3.Basis of Availability as SDE Analysis

    4.Basis of Weight/Cost permit as HML Analysis

    5. Basis of Consumption rate as FSN Analysis.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 32

    Inventory control Analysis:

    1. ABC Analysis :

    The Analysis consists of separating the inventory into 3 groups based on their annual cost volume consumption( Unit Cost * Annual consumption).

    They areA - group items constitutes to 70% of the Annual consumption Cost.B - group items constitutes to 20% of the Annual consumption Cost .C - group items constitutes to 10% of the Annual consumption Cost .

    After classification, the inventory control policies are made based on this division.

    A category Items require special managerial attention. Hence, fixed interval inventory control system is used.

    B category Items are not so costly as to require special attention, but these are not cheap that to ignore over stocking.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 33

    Inventory control Analysis:

    1. ABC Analysis :

    C items can be managed in a casual way.For these items, a fixed order Quantity system is used.

    The Order quantities can be relatively large without incurring excessive costs.

    This is also referred as Always Better Control Analysis.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 34

    Inventory control Analysis:

    2.VED Analysis :

    This analysis separates inventories based on Criticality as

    1. Vital (V) -Stands for vital items when out of stock or when not readilyavailable, completely brings the production to a halt.

    2.Essential (E) - for Essential items without which temporary losses ofproduction or dislocation of production work occurs.

    3.Desirable (D) -denotes Desirable items all other items which are necessary but do not cause any immediate effect on production.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 35

    Inventory control Analysis:

    3.Availabily ( SDE Analysis )

    This analysis separates inventories based on Criticality as

    S - refers to Scarce Items, especially imported and those which arevery much in short supply.

    D - are Difficult items which are procurable in market but not easilyavailable.

    Example: Items which have to come from far off cities or where there is not much competition in market or where good quality supplies are difficult to get or to be procured.

    E - refers to Easy items ,Items are those which are easily available;mostly local items.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 36

    Inventory control Analysis:

    4.Weight/Cost permit ( HML Analysis )The cost per item (per piece) is considered for this analysis.

    High cost items (H),Medium Cost items (M) Low Cost item (L)

    This helps in bringing controls over consumption at the departmental level.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 37

    Inventory control Analysis:

    5.Consumption rate ( FSN Analysis ):

    Based on the consumption rate of the items used , they are classified as

    F Fast Moving Inventory

    S - Slow Moving Inventory

    N Non Moving Inventory

    This classification is based on the consumption pattern and therefore helps in controlling obsolescence of the inventory by determining the distribution and handling patterns.

    Types of Inventories

  • TVSM / PED / MSE / MHSE Slide 38

    How are the materials getting stored in Stores?

    There are various modes for Storing Inventories.

    1.Crates

    2.Pallets

    3.Totes and Bins

    4.Heavy Duty Storage Racks

    5.Vertical Narrow Aisle Storage systems

    Storage Facilities

  • TVSM / PED / MSE / MHSE Slide 39

    6.Multi tier mezzanine systems

    7.Lean Lifts

    8.Over Head Conveyors

    9.Drive in Rack Systems

    10. ASRS Systems

    11.Vertical Carousel Systems

    We will see them in detail later..

    Storage Facilities

  • TVSM / PED / MSE / MHSE Slide 40

    How do we select the Appropriate Storage Facility ?

    This depends on

    1.Quantity of inventory handled at a time ( Unit Load ).

    2.Type of Material handled and their Specific Requirements

    3.Requirements at the User Area.

    Storage Facilities

  • TVSM / PED / MSE / MHSE Slide 41

    Why Should I SELECT a storage facility ?

    1. To ensure the that the Products stored serves its purpose at the User Area without affecting its value ( Quality).

    Example:If sensitive parts like Headlamp, Rear View Mirror ,painted parts of a vehicle are stored without attention, it causes Dent, Scratch and Scoring marks in the part , making it not usable for the Vehicle Assembly.These cant be easily reworked( or Cost of rework is very high ) and is directly loss of money to the company.

    2.Safety of the storage environment.

    The products such as CNG, LPG cylinders are locked in its location to ensure the elimination of chances for an accident leading to Heavy losses

    Storage Facilities

  • TVSM / PED / MSE / MHSE Slide 42

    Implementing a carefully structured, cost-effective Store, will inevitably see an organisation through to its long term business objectives and provide tangible financial pay backs.

    The key metrics involved in the designing of a store and their importance are as follows:

    Stock Keeping Unit (SKU):An SKU is a unique combination of all the attributes of the components that are assembled into the purchasable item. Therefore, any change in the packaging or product is a new SKU. This level of detailed specification assists in managing inventory.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 43

    The other important terms are

    1.Reorder level,

    2.Buffer Stock,

    3.Reorder Quantity,

    4.Reorder level for a stock,

    5. Lead time

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 44

    Inventory = Reorder level Average demand during lead time + order lot size

    Reorder level = Average demand during lead time + Reserve stock + Safety stock

    Average demand during lead time = Average sales / day x lead time (in days)

    Reserve stock = Dispatch std. deviation x lead time x service level (n=1)

    Safety stock = Avg. demand during max. delay period x Prob. of delay occurrences (25%)

    Order lot size = (Avg. demand/day + 1 std. dev.) x freq. of order in-terms of days

    Delay time = Receipt delay + In-house delay

    Inventory Analysis (Fixed Qty. Order Approach)

  • TVSM / PED / MSE / MHSE Slide 45

    Order Cycle:An ordering cycle is the time between two successive placement of Orders for

    the Inventory.

    Consideration for creation of Stores

    Order CyclePoint where

    Order is made

  • TVSM / PED / MSE / MHSE Slide 46

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    A171050 CABLE ASSY THROTTLE FC BO CABLE ASSY Normal part Bangalore South

    TVSM Revised Maximum Inventory -2543

    TVSM Inventory -3296

    Average Sales/day - 259

    TVSM Revised Inventory -97

    With reduction in inventory by 753 units, only 4 days of under stocked condition exists

    Inventory Validation

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  • TVSM / PED / MSE / MHSE Slide 47

    Order Cycle:An ordering cycle is the time between two successive placement of Orders for

    the Inventory.They are determined in 2 ways

    1. Continuous review:In this case the level of inventory is updated continuously as current level is reached at reorder point ,a new order is placed.This is also referred to as the Two Bin System or Fixed Order size systemor Q system.

    2. Periodic Review :Here orders are placed at equal interval of time,but the size of the order may vary

    with variations in demand.This is also referred to as Fixed order Interval System or P" System.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 48

    Buffer Stock:The amount of inventory kept as a safety stock to avoid any stockout due to

    situation changes is called Buffer or Safety Stock.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 49

    Lead Time:

    When an order is placed, it may require some time before the delivery is reached. The time between the placement of an Order and its receipt is called lead time or delivery time.

    Consideration for creation of Stores

    Point where

    Order is made

  • TVSM / PED / MSE / MHSE Slide 50

    Economic Order Quantity:

    The determination of order quantities needs the identification of what lot size provides the most economical tradeoff between relevant inventory costs ordering, carrying and shortage costs.

    The EOQ is the size of the order that yields the optimum total incremental inventory cost during the given period of time under the assumption that the demand rate is constant and known.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 51

    Inventory Turn Ratio:

    Value of the Stock consumption ( Stocks sold to Customer)Inventory Turn

    ratio of a Store =Value of the Stock Stored ( Average Inventory)

    It is an activity ratio measuring the number of times per period, a stores sells and replaces its entire batch of inventory again.

    In general, a higher value of inventory turnover indicates better performance and lower value means inefficiency in controlling inventory levels.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 52

    Inventory Turn Ratio:

    A lower inventory turnover ratio may be an indication of over-stocking which may pose risk of obsolescence and increased inventory holding costs.

    However, a very high value of this ratio may be accompanied by loss of sales due to inventory shortage.

    Inventory turn over is different for different industries. Hence, a comparison has to be made between similar units.

    Consideration for creation of Stores

  • TVSM / PED / MSE / MHSE Slide 53

    Truck Turnaround Time:

    This is the average time elapsed between a truck's arrival at a facility and its departure from the facility.This is an indicator of the efficiency of lot and dock door space, receiving processes, and shipping processes.

    Truck turnaround time comprisesthe loading time at the source, transit time, the unloading time at the destination the time taken for the return trip.

    A reduced turnaround time results in more number of trips per truck and hence higher truck utilization and lower transportation cost.

    Truck Turnaround time & Estimation of Docks

  • TVSM / PED / MSE / MHSE Slide 54

    Why is it needed to measure the Truck Turnaround Time?

    In a growing business atmosphere, it is financially beneficial to keep the inventory of the store as low as possible to increase the cash flow.

    This results in less lot size from supplier at a time.

    In other words, the number of trips that a truck has to make increases for a given stock.

    Ultimately, the traffic of trucks to deliver the stocks increases inside the industry, leading to congestion.

    Truck Turnaround time

  • TVSM / PED / MSE / MHSE Slide 55

    How to control the traffic ?1.Either increase the Number of Docks

    2.Reduce the Truck Turn Around time of the vehicle.

    Increasing the Number of Docks is not economical beyond a point, as it leads to higher operating costs. Hence, it leaves us with no choice other than Working on the Turnaround time.

    Truck Turnaround time

    So What happens, if you neglect the Truck Turn Around Time?

  • TVSM / PED / MSE / MHSE Slide 56

    The Truck Turn Around time of a Factory and the No .of Docks needed for the Loading and Unloading are inversely proportional to each other, for the given fixed amount of Traffic.

    Deciding How Many Docks ( Doors for Loading and Unloading) for an Operation depends on various factors.

    1.Truck Loading and Unloading time.

    2.No of Pallets or units handled at a time.

    3.Types of Materials handled ( Size, property of the material )

    4.Of course, Demand rate of the part in the Factory.

    Truck Turnaround time & Estimation of Docks

  • TVSM / PED / MSE / MHSE Slide 57

    The following are the steps involved in the estimation of number of docks for a factory.

    The first step is to document the current condition. The Activities to be captured are1. Date2. Time at which truck arrived (note if the truck was delayed due to unavailability of dock

    door or staging space)3. Shipment or receipt time4. Load type (LTL, TL, palletized vs. floor load, parcel)

    5. Time when truck loading/unloading began

    6. Time when loading/unloading was complete

    7. Number of pallets/cases that were handled

    8. Time truck left

    Estimation of Docks

  • TVSM / PED / MSE / MHSE Slide 58

    Along with this the No. of truck per day needs to be recorded.

    Hence , the No.of Docks required is equal to

    (Peak trucks per day) X (Average dock time per truck) Available Time X Efficiency

    Trucks per Day This represents the Peak or near peak Activity.

    Average Dock Time Loading + Unloading + Receipt time(Consider Online alone).

    Efficiency 90% ( depending on the variability of truck arrivals.)

    Estimation of Docks

  • TVSM / PED / MSE / MHSE Slide 59

    However, in daily Industrial practices, the No. of trucks that can be serviced per Dock is calculated as a measure, as the Incoming No. of trucks will vary as per the Demand.

    = (Available time per shift* Efficiency)( Avg Dock time per truck+Avg.Waiting time)

    Waiting time Time elapsed between the moments at which one truck leaves and the next truck arrives.

    Estimation of Docks

    No. of Trucks that can be serviced per dock per shift

  • TVSM / PED / MSE / MHSE Slide 60

    Case Study:To under stand the overall picture, lets consider a simple case studyAn analysis is made for increasing the No. of trucks serviced per dock at TVSM

    Plant 2 for Unloading of pallets from Trucks.

    The Available Time per Shift is - 466 Mins.

    Efficiency Considered 90%

    The study is conducted for trucks carrying pallets.

    Assumptions:The Size (type) of the trucks arriving is considered the same, as more than 90% them

    are EICHER Trucks only.The No. of pallets carried by a truck is 8 . Taken as the average for all the trucks. (The range is from 6 to 9 per truck)

    Estimation of Docks

  • TVSM / PED / MSE / MHSE Slide 61

    Case Study:The various activities carried out were recorded.

    Estimation of Docks

    Slno Element DescriptionObsered

    time Secs)

    Normal time

    Secs)

    In line Off line Who

    1 Park truck to position 72 72 72 Transporter2 Put wheel stopper 8 21 21 Transporter3 Hand over document & drvr to scissor lift 7 7 7 Transporter4 Open rear gate 15 12 12 Transporter5 Stacker lift position 11 11 11 Transporter6 Raise scissor lift & put leveller 17 21 21 Transporter7 Remove tied ropes in the truck 21 22 22 Transporter8 Unload parts from truck to scissor lift

    Pallet (8 nos) 309 309 309 Transporter9 Lower scissor lift 23 23 23 Transporter10 Walk to other side of scissor lift 5 6 6 Transporter

    Remove safety chains & bars 19 16 1611 Move parts from scissor lift to floor (location)

    Pallet (8 nos) 320 320 320 Transporter12 Check qty - visual 32 32 32 both

    Activities which could be

    done without the need of

    the dockActivities which could be

    done only at the dock

  • TVSM / PED / MSE / MHSE Slide 62

    Case Study:

    Estimation of Docks

    13 Move parts to location **14 Move empty containers near to scissor lift **

    Pallet (8 nos) 288 288 288 TVSLSLRemove waste cover from pallet 160 160 160 both

    16 Load to scissor lift ** 0 TVSLSL17 Check qty - visual 7 7 7 both16 Put safety chain & bar 21 21 21 TVSLSL18 Walk to front 8 8 Transporter19 Raise scissor lift 21 21 21 Transporter20 Move empty containers inside the truck

    Pallet (8 nos) 260 260 260 Transporter21 Tie ropes as required 0 Transporter22 Lower scissor lift 31 31 31 Transporter23 Close tail gate 13 12 12 Transporter24 Driver wlk to driver seat 5 5 5 Transporter25 Remove wheel stopper 8 21 21 Transporter26 Start vehicle & move out from dock 4 26 26 Transporter

    Total - time (sec) 1649 1732 1223 487Total - time (mins) 27 29 20.4 8.1

    Currently carried out as

    Online. Can be done

    offline

    Improvement Idea to Increase Serviceability

  • TVSM / PED / MSE / MHSE Slide 63

    What is a Model Store?

    Any type of Stores facility , which provides scope for the most utilization of the Resources (Man, Machine , Method, Material) through applications of advancement in the Material Storage and handling Systems and methods.

    The considerations for a model store involves the factors already discussed in the considerations for the creation of Stores.

    In addition to it , the other objectives are

    1. Ease of Handling

    2. Ease of Storage

    3. Ease of traceability and inspection

    4. Ease of Recording and retrieval.

    Model Stores Creation

  • TVSM / PED / MSE / MHSE Slide 64

    1. Ease of Handling:This begins with the inward material storage condition received from the Supplier.

    The Incoming mode shall ensure the count free design ( No.of parts per container)

    The storage shall have the flexibilty to be stacked and to be Cleaned and to be folded to ensure return transportation.

    The receipt of Material into the store shall be done without the manual intervention through barcode Scanning& Mobile robots for the handling of Parts.

    2. Ease of Storage:The storage system shall have the flexibility to utilise the vertical space of the storage

    area.

    And ensure easy retrieval through AS/ RS Systems in a FIFO Sequence.Without the search and find,Once the Order is created and fed into the system, the

    AS/RS unit will pick the SKU and Supply it at the customer end.

    Model Stores Creation

  • TVSM / PED / MSE / MHSE Slide 65

    Without the search and select, Once the Order is created and fed into the system, the AS/RS unit will pick the SKU and Supply it at the customer end.

    Ease of Traceability and Inspection:The Storage units shall have provisions to operate with RFID systems to ensure

    traceability

    Ease of Recording and Retrieval:The data of the material stored and stock taking shall be automated, which will trigger

    autonomous JIT quantity calls to the Supplier end, to ensure losses due to delay of information.

    Similarly , the facilities at the usage areas of the stored parts shall have facilities to signal the stores when stock is low, to avoid the delays.

    The above mentioned are one of the few major Objectives of a Model Store.With the Improvements happening more and more in Material Handling and Storage

    Systems, this will allow for further improvements in Model Stores.

    Model Stores Creation

  • TVSM / PED / MSE / MHSE Slide 66

    1. Operations Research, theory and Applications by J K Sharma, Macmillan Publications,2001.

    2.Website of Gross Associates, for Estimation of Docks.

    3.CLASSIFICATION OF INVENTORY IN THE NEW BUSINESS ENVIRONMENT Amir M. Hormozi, Ph.D., CPIM, College of Business, Texas A&M University.

    4. Integrated Dynamic Assignment and Queuing Model for Truck Appointment System by Xuesong Zhou, University of Utah.

    5. Wikipedia,

    6. The IEEE International Conference on Industrial Informatics, A Generic Model for Crossdock Truck Scheduling and Truck-to-Door Assignment Problems.

    References