Material Disposal Management and Logistics

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MATERIAL DISPOSAL - LOGISTICS

Presented by-NIMIT KAUL

Deptt. of Management Studies

IIT Roorkee

Under the guidance of

Mr. Soarabh Pathak



Flow of the presentation

Introduction

Agenda of project

Process of material disposal (Steel)

Bottlenecks/Observations

Focus Areas

Truck Turn Around Time (Graphs and analysis)

Major Trader Performance (APR 08 MAR 11)

SWOT Analysis

Points to focus Suggestions

Trader performance and miscellaneous suggestions



INTRODUCTION

Trim and Flat contributes 80% of the revenue

from total Scrap sale

Both Steel Scraps are produced at Press Shop Trim is loaded at the two press chutes

Flat is loaded at Knock Down Area by Forklifts



Agenda of Project

Understanding and streamlining the process

of steel trim material disposal

Improving Truck Productivity (reduction of TurnAround Time)

Performance review of steel trim traders

Finding out and suggesting ways to improve

bottlenecks in the process



Process of steel material disposal

systemWait at JV

Gate

Vehicle

checking

Gate passgeneration

Travel toparking

Parking areawaiting

Generation of load slip

Issue of waiting no.

Wait for turn

Travel to press

chute

Wait at presschute

Loading of trim

To fro

movement

Secondloading

Travel toweight bridge

Wait inparking area

Invoicegeneration

Invoicesigning

Wait for exit

Exit from JV

Gate



ACTIVITIES Observed time(mins) Minimum standard time(mins)

JV Gate Waiting time 16 10Vehicle checking 5 5

Gate pass gen time 4 4

travel to parking 3 3

parking area waiting 68 30

gen of load slip 3 3

issue of waiting no 4 4

wait for turn 126 30travel to load point 5 5

wait at load point 54 15

loading of scrap 55 45

movement to and fro 3 3

2nd loading 5 5

to weight bridge 6 6

wait in parking 497 30

invoice gen 3 3

invoice sign 11 5

wait for exit 11 10

exit to jv gate 4 4

TOTAL 884 22015 hrs 4 hrs

Steel material disposal activities(Standard Vs Actual Time)



Bottlenecks/Observations

Funds availability is in Traders control

Truck driver availability is key factor for TAT in MSIL

Older than 2008 model trucks :- 35 no's (Fleet Quality)

2008-11 model trucks:- 08 no.s

Report generation( fund,etc) system is slow

En-route congestion on roads in side MSIL

Scrap Lifting system in control of Traders

No entry traffic restrictions in NCR region affects the TAT of trucks inside MSIL

Signing authority availability affects TAT in MSIL



Concerns at Different Locations

JV GATE Truck entry not started

Queue of trucks present

SCR AP YARD PARKIN G

Queue at weight bridge

Waiting for turn

Previous days trucks present

P RE SS CHU TE Truck already being loaded

Low production in press shop

Small scrap pieces being filled



Concerns SCR AP YARD PARKIN G ( loaded truck)

Wait for invoice generation

Truck comes after 6:00 PM

Presence of ACDO (G-4)

FUND AVAILABILITY Wait for exit

Invoice signing authority not present

Driver availability

JV GATE

Queue of trucks present

No entry timing on roads



Areas of Target

Trucks spend a long time inside the premises of

MSIL ( Truck Turn Around Time)

Trader Payment Defaults (Trader Performance)



Truck Turn Around Time



TRUCK TURN AROUND TIME

(JV Gate Entry to Exit)

26.24

36.40

19.28 19.57 19.0417.46

18.60

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

T i m e ( h r s )

Weekdays

APR 11 MAY 11

The abnormal time on Monday is due to presence of few points with very high TAT. When

those points were excluded, the TAT became 25 hrs. thus we have an a lmost stable TAT

although it is high.



1

9

6 6

3 3 33

4

8

7

2

0

1

2

3

4

5

6

7

8

9

10

8:00-9:00 9:00-10:00 10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00+

N o . o f t

r u c k s

Timeline

Hourly truck exit APR 11 MAY 11

We can see that the truck exit majorly during 9-12 or in the evening 4-6. this is

because of the traffic no entry restrictions.



0.12

2

9

9

3

2

2

4 4

4 4 4

4

2

0.380.17

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

00:00-5:00

5:00-6:00

6:00-7:00

7:00-8:00

8:00-9:00

9:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00+

N o . o f t r u c k s

Timeline

Hourly

truck

en

try APR 11 MAY 11

Trucks mostly enter during the early hours as most trucks travel back to maruti at night

when the traffic no entry restrictions are not applicable.



0:19

0:51

1:001:02

0:59

0:51

1:03

0:46

0:400:45 0:45

0:50

0:00

0:07

0:14

0:21

0:28

0:36

0:43

0:50

0:57

1:04

1:12

8:00-9:00 9:00-10:00 10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00+

T i m

e

Timeline

Avg time f r om invoice gen. to exitAPR 11 MAY 11

The time taken by trucks to exit after invoice signing is pretty high. This should be 10-

15 mins at max.

Documentation and Exit Time



Trader Performance Chart

28

24

26

2525

21

22

23

24

25

26

27

28

29

bansal iron andsteel

Colossus tradelink ltd

Isha enterprises Jindal nickeland alloys

SwastikEnterprises

Turn Ar ound Time (hours) 2nd week June 2011

Amongst the recent traders bansal iron and steel has the highest TAT



Steel Trim Dealers

Steel Trim Trading Performance

FY- (2008-2011)

M/s Bansal Iron & Sheet

M/s Bansal Iron & Steel

M/s Isha Enterprises

M/s Jindal Nickel & Alloys

M/s V D Malik & Sons



Trader PerformanceBANS AL IRON AND SHEET

actual tendered deviation

21 33 -12

20 33 -13

8 10 -2

7 10 -3

11 22.2 -11

9 22.2 -13

8 15 -7

6 15 -914 15 -1

15 15 0

25 25 0

21 25 -4

10 10 0

Average dev -6

BANS AL IRON AND STEEL


18 29 -11

18 29 -11

12 32.5 -20

7 32.5 -25

10 30 -20

12 30 -18

15 15 0

15 15 0

20 25 -5

24 25 -1

26 25 1

29 30 -1

18 17.5 0

24 25 -1

22 25 -3

20 200

Average dev -7

ISH A ENTERPRISES


26 38 -12

27 38 -11

13 20 -7

15 20 -5

9 22.2 -13

12 22.2 -10

12 10 2

2 10 -8

40 40 0

20 20 0

21 25 -4

10 10 0

25 25 0

12 12.5 0

24 25 -1

10 10 0

16 15 1

10 10 0

24 25 -1

48 50 -2

Average dev -4

JINDAL NICKEL & ALLOYS


19 30 -11

16 30 -14

11 22.2 -11

11 22.2 -11

12 30 -18

15 30 -15

26 25 1

25 25 020 25 -5

20 20 0

25 25 0

25 25 0

30 30 0

33 25 8

25 25 0

19 17.5 2

29 25 4

22 20 2

17 15 2

21 20 1

27 25 2

22 20 2

21 25 -4

26 25 1

Average dev -3

VD M ALIK AND SONS


25 40 -15

27 40 -13

15 33.3 -18

13 33.3 -20

21 40 -19

17 40 -23

7 10 -3

6 10 -4

35 35 0

35 35 0

19 20 -1

26 25 1

40 40 0

30 30 0

26 25 1

29 30 -1

28 25 3

27 35 -8

25 25 0

21 22.5 -1

26 25 1

22 20 2

25 25 0

21 20 1

35 35 0

29 30 -1

20 20 0

52 50 2

23 25 -2

Average dev -4APR 08 MAR 11



21 20

8 7

11

9 8 6

1421

10

33 33

10 10

22.2 22.2

15 15 15 15

25 25

10

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8 9 10 11 12 13

P e r c e n t a g e

Bansal Iron & Sheet actual tendered

18 1812

710 12

15 15

20

24 2629

18

24 2220

29 2932.5 32.5

30 30

15 15

25 25 25

30

17.5

25 25

20

0

10

20

30

40

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

P e r c e n

t a g e

Bansal Iron & Steel actual tendered

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

P e r c e n t a g e

Isha Enterprises actual tendered



19

16

11 11 12

15

2625

20 20

25 25

30

33

25

19

29

22

17

21

27

22 21

26

30 30

22.2 22.2

30 30

25 25 25 25

17.5

25

20

15

20

25

20

25 25

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

P e r c e n t a g e

Jindal Nickel & Alloys actual tendered

25 27

1513

21

17

7 6

35 35

19

26

40

3026

2928 27

25

21

26

22

25

21

35

29

52

23

40 40

33.3 33.3

40 40

10 10

20

25 25

30

25

35

22.525

20 20

30

20

50

25

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

P e r c e n t a

g e

V D Malik & Sonsactual tendered



Trader Performance Variance

-26

-24

-22

-20

-18

-16

-14

-12

-10

-8

-6

-4

-2

02

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

P e r c e n t a g e

BANSAL IRON AND SHEET BANSAL IRON AND STEEL

ISHA ENTERPRISES JINDAL NICKEL & ALLOYS

VD MALIK AND SONS



W e o b s

e r v e a l a r g e f l u c t u a

t i o n i n s t e e l p r i c e i n

O C T 0 8 . A f t e r t h a t

t h e s t e e l

a l m o s t

c o n s t a n t a n d i s e x p

e c t e d t o i n c r e a s e i n

t h e c o m i n g m o n t h

s .

0 5 1 0

1 5

2 0

2 5

3 0

3 5

p r i c e

0 2 4 6 8 1 0

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

N o . o f t r a d e r s v s p r i c e

0 2 4 6 8 1 0

Apr/08

May/08

Jun/08

Jul/08

Aug/08Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

N o . o f t r

a d e r s



Quantity of Steel Trim Handled

Frequency of Participation

Amount of Steel trim lifted



Q u a n t i t y o f S t e

e l T r i m

h a n d

4 2 6

3 1 6 1

4 3

1 3 3

2 2 4

6 6

1 8 6

1 8 7

3 9 7

3 5 5

7 4 7

6 8 7

0 1 2

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

S /10

B A N S A L I R O N & S

HE E T T R A DE R S




e l T r i m

h a n d

3 4 1 3 8 4

3 1 0

2 6 8

1 2 5

3 0 8

3 6 3

4 2 4

3 5 0

5 0 5

7

0 2 7 2 1

9 3 7

7 6 3

5 6

6 7 0 3

0 1 2

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

B A N S A L I R O N & S

T E E L T R A DE R S




e l T r i m

h a n d

5 2 6

4 1 1

2 5 1

2 0 6

2 1 3 1 9 9

3 3 6

4 8

1 0 7 8 5

6 0

6 4 0

2 9 5

7 4 0

3 5

1

8 5 1

0 1 2

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

I S H A E N T E R P R I S E S




e l T r i m

h a n d

5 2 9

3 7 1

2 9 7

2 2 8

9 1

3 0 3

3 9 6

7 7 0

6 2 0

5 2 4 5 3 6

7

0 4 7 3 4

9 0 6

1 1 6 9

7 7 6

7 4 0

6 2

2

8

3 4

8 2 7

6 0 8

0 1 2

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

M / S J I ND A L N I C K E L & A L L O Y S




e l T r i m

h a n d

5 0 9

4 0 5

3 4 4

1 6 5

4 8 9

4 4 8

1

8 1 1 4 3 1

0 0 4

8 1 4

5 2 4

6 8 3

1 0 6 9 8

3 4 7 4 8 8 5 7

9 0 6

8 0 9

7 6 1 7 4 5

6 8 7

6

7 3 8 1 8

9 4 4

0 1 2

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09Dec/09

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

V D M A L I K

& S O N S

V D M A L I K &



Conclusions

V D Malik & Sons has lifted the highest

Quantity of Trim from MSIL.

Jindal Nickel & Alloys has been lifting moreamount of trim than the tendered amount in

the recent months

Both Jindal Nickel & alloys and V D Malik &

Sons have been consistent dealers over the

last 3 years



SWOT AnalysisSTRENGHTS WEAKNESSES OPPORTUNITIES THREATS

Large area of the scrap

shop

All load on one weight

bridge

By increasing the volume

of Trim we can gather

higher sale price per

tonne of trim

Cartel formation of

traders

Knowledgeable human

resources

Old Press Chute is very

slow

Bring back traders who

have not participatedmuch

Many traders not

participated more thanonce. They could be

lifting from other places

Strong system to monitor

funds

Power in the hands of

traders

New traders should be

brought in to increase

competition

Presence of old trucks

Bumps at press chutes Does not guaranteeavailability of trucks

Strong tendering process Fund generation system

very slow

Movement of trucks

outside Maruti not being

monitored



Focus Areas

Wait at JVGate

Vehiclechecking

Gate passgeneration

Travel toparking

Parking areawaiting

Generation of load slip

Issue of waiting no.

Wait for turn

Travel to presschute

Wait at presschute

Loading of trim

To fromovement

Secondloading

Travel toweight bridge

Wait inparking area

Invoicegeneration

Invoicesigning

Wait for exit

Exit from JVGate



Suggestions



Change in Size of Truck

Increasing the capacity of trucks (double capacity)

± This implies reduction in no. of trucks by half

± Less stationery expenses

± More availability of space

± Increase in overall efficiency as the idle time of the trucks in the

process decreases.

1668

126

555

497

11834

63110

10

497

50

100

200

300

400

500

600

JV Gate Waiting

time

parking area waiting wait for turn loading of scrap 2nd loading wait in parking wait for exit

T i m e ( m i n

s )

Changes in activity time when truck size is doubledbefore after



ACTIVITY Observed time(mins)Assumed changes when truck size is

doubled(mins)

JV Gate Waiting time16 8

Vehicle checking 5 5

Gate pass gen time 4 4





wait for turn 126 63

travel to load point 5 5




2nd loading 5 10



invoice gen 3 3

invoice sign 11 11

wait for exit 11 5

exit to jv gate 4 4

TOTAL 884 83215 hrs 14 hrs

Impact of Size of truck



1

9

6 6

33

3 3

4

8

7

2

0

5

3 3

12

1 1

2

4

3

1

0

1

2

3

4

5

6

7

8

9

10

6:00-7:00 7:00-8:00 8:00-9:00 9:00-10:00 10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

N o . o f t

r u c k s

Timeline

Hourly Trucks Exit before after

We see that by increasing the carrying capacity of each truck the exit pattern

becomes f latter and more manageable.

Impact of Increased

Size of Trucks(exit)



Approval Timings

Presence of invoice signing authority in Shifts B+C

Trucks can be moved out earlier

The earlier they move out the faster they return back

The labour at the vendors godown will not be idle

497

60

0

100

200

300

400

500

600

wait in parking

T i m e ( m i n s )

Changes in activity time when iinvoice signing authority is present since 6

AM before after



ACTIVITY Observed time(mins)Assumed changes if invoice signing person is

present(mins)

JV Gate Waiting time 16 16

Vehicle checking 5 5Gate pass gen time 4 4










2nd loading 5 5



invoice gen 3 3

invoice sign 11 11

wait for exit 11 11

exit to jv gate 4 4

TOTAL 884 446

15 hrs 7.5 hrs

Impact of Invoice Signing



1

9

6 6

33

3 3

4

8

7

2

4 4

3 3 3 3 3 3

4 4

5 5 5

4

0

1

2

3

4

5

6

7

8

9

10

6:00-7:00 7:00-8:00 8:00-9:00 9:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00+

N o . o f t r u c k s

Timeline

Hourly Trucks Exit before after

The graph becomes f latter as the peak hours of exit are now spread throughout the day

Impact of Increased

Approval Timings (exit)



0.12

2

99

3

2

2

4 4

4 4 4

4

20.38

0.17

5 5 5 5 5

2

4 4

4 4 4

4

2

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

00:00-5:00

5:00-6:00

6:00-7:00

7:00-8:00

8:00-9:00

9:00-10:00

10:00-11:00

11:00-12:00

12:00-13:00

13:00-14:00

14:00-15:00

15:00-16:00

16:00-17:00

17:00-18:00

18:00-19:00

19:00+

N o . o f t r

u c k s

Timeline

Hourly Truck Entry before after

If we can start the truck entry since 5:00 AM the load on the scrap shop per hour would reduce

Impact of Increased

Approval Timings (entry)



Impact of Size of truck and Invoice Signing

ACTIVITY Observed(mins) Both options together

JV Gate Waiting time 16 8

Vehicle checking 5 5Gate pass gen time 4 4










2nd loading 5 10


wait in parking 497 60invoice gen 3 3

invoice sign 11 11

wait for exit 11 5

exit to jv gate 4 4

TOTAL 884 395

15 hrs 6.5 hrs



Trader Performance Suggestions

Monitor traders based on their previous performances.

Keep a check on traders who have a low performance

Motivate good performers by recognizing them and providing

them certain benefits like priority at weight bridge, display of photographs of such traders

Increase security amount and if the balance falls short deduct

from the security. Do not wait for the payment. This would

result in traders getting serious about payment

Focus more on rewards than penalties

Generation of Trader Rating Sheet based on certain criteria



Miscellaneous Suggestions

De-linking of logistics from Scrap costing (Handling) ± Tendering of transporters

Weight bridge at press chute to reduce duplicate activities

Generation of invoices at press chute to avoid multiplemovement of trucks at weigh bridge

GPS scanning of trucks

Auto Un-loading mechanism for Scrap handling

Fleet and Size of trucks to be reviewed

Priority to loaded truck at Weigh bridge

Increase area for truck movement ± Diversion of trucks when congestion at intersections

Faster system to show the available balance of each trader

Construction of conveyer from both press chutes to transferscrap directly to scrap yard



Conveyor at press chutes keeps on running even when the pressshop doesnt produce any scrap (energy wastage)

Continuous monitoring of funds and informing the trader as soonas funds reach below a pre designated comfort level

Source Segregation of scrap to increase its sale value

Improving the old press chute

Trucks no older than 3 years should be allowed Bumps should be changed to increase effectiveness

The 15 min restriction from invoice signing to exit should bereduced to 10 mins

JV gate entry and exit efficiency should improve. Reduction of queue at JV gate

Metal Balers can be used to increase the amount of material beingcarried by a single truck

Conveyer system to load scrap faster at scrap yard

Direct Loadable Containers to store scrap in case of emergency

Miscellaneous Suggestions



Faster Unloading



Changing Truck Fleet and Increasing Size



Condition of Trucks at Scrap Yard



Congestion on roads due to parking



Steel trim Loading



Steel Baling Machine



Conveyers for faster loading of

trucks



Combining the two Press Chutes

TO SCRAP YARD

PRESS CHUTE 1PRESS CHUTE 2



Container for Storage



Segregation of Trim

Material Disposal Management and Logistics

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